Mud crab aquaculture The mud crab farming project will be implemented by a joint venture encompassing four partners:• Réunion Pélagique from Reunion Island, France, as the applicant.• Copefrito, from Toliara, Madagascar as the local partner.• Sogediproma from Mahajanga, Madagascar as the third partner.• Sephal from Antananarivo, Madagascar as the fourth partner.Globally, around 205,000 tons of mud crab had been produced in 2012, among them, 160,000 came from aquaculture. The high demand for this product has led to overexploitation in many countries, which now suffer from resource depletion.In Madagascar, there are three main production zones of mud crab: the Boina region (around Mahajanga), the Menabe region (around Morondava) and the Sofia region (around Maromandia). As mud crabs live in mangrove, where industrial boats cant navigate, fishery is exclusively traditional.Since aquaculture doesnt exist yet in Madagascar, collecting is therefore the only way to produce mud crabs in the country which is already resulting in overexploitation. At the same time, area of the natural habitat of the mud crab, the mangrove forests, are rapidly reducing.To meet the large demand for mud crab in Asia, and to protect the countrys resources, aquaculture, including reproduction of crabs is the natural and unique long-term viable solution. The project will implement two distinct production chains: soft shell crabs*, implying a reproduction process, and alive crabs, based on catch. About 25% of the projects fattened mud crab output will be generated through outreach activities with the surrounding villages where fishermen will be supported to set up their own mud crab fattening farms. There will be two main farms, in Mahajanga and in Toliara, and an exportation site in Antananarivo where the live crabs are being prepared for transport to mainly Asia.* Soft shell crabs are small crabs which can be eaten whole. They are mostly used for crab cakes conception. The principle is to pick up and freeze young crabs just after mottling, before their new shell has hardened.Corporate Social Responsibility (CSR)The project partners propose to valorise their responsible practices through an organic certification. EcoCert (a certifying body) was contacted and they indicate that only for the soft shell production an eco-certification can be gained. The joint venture will, therefore, build on the experiences and practices of the local partner and the third and fourth partner, which have been in the seafood sector for several years, complying with international standards, to ensure crabs’ welfare as well as workplace health and safety. The export facilities in Antananarivo will be EU approved with a HACCP plan. The project will rely as much as possible on local human resources, and make its best to encourage women employment. The HRM policy will specify that employees will receive living wages and fringe benefits. The company will organize training and courses for all its workers. The company will not employ children. It will encourage its workers to organize themselves for worker representation to influence the management’s decisions.To fight corruption, courses will be delivered to employees and a severe repression politic will be adopted.During the first phase of the project, an environmental impact assessment will be conducted, providing a detailed analysis of the environmental consequences of the proposed mud crab farming activity (including transportation). The project partners ensure that the joint venture undertakes every measure possible to abide by the recommendations of the study. Also, the cooperation with the marine conservation NGO BlueVenture will secure an appropriate environmental implementation In addition, animal welfare will be included in the training course, and fishermen will be encouraged to pay attention to the animals, as only high quality products will be bought.Impact•	Employment and working conditionsAll full-time employees at the joint venture will earn at least 30% more than normally paid in this sector. The joint venture will ensure that the employees work under safe and healthy conditions, by complying with international standards.The following fringe benefits will be offered to the employees:- Transport from the city to the farm (for the city-living staff);- Daily lunch and meals for night and weekend staff;- Scholarship for the most successful students;- Common fund for employees to be used in case of family or health problems (contribution 35% by the employees 65% by the company).The training programme will allow a skill improvement for all the employees of the joint venture, including the basic level employees.•	Innovation / Transfer of knowledgeThe shift from low cost production to high value added products sold on the Asian growing market is the result of two innovative infrastructures, which will be the firsts in the country:- Reproduction & hatchery process: this doesn’t exist at all in the country, because of technical and financial barriers. This allows (i) the management of the resource, which is to say the durability of the sector, and (ii) the production of soft shell crabs.- Fattening process on a large scale, partly through outreach activities with the surrounding villages, where fishermen will be supported to set up their own small fattening farms.•	Chain effectsImpact on local suppliersThe main positive impact of the project on the chain level is through the development of partnerships with 40 families from surrounding villages. One family (or “group”) of farmers is composed of 4 to 6 adult people. Consequently, the project aims to coach up to 240 people in the mud crab farming activity. If a family produces 15 kg per week (60 kg per month), which seems realistic considering the amount of crab they currently fish, at a buying price of 4 euro per kg, it will earn an additional revenue of 180 euro per month.Impact on local customers or consumersIn principle, all products are meant for export, but without doubt some crabs will enter the local market.•	Impact on the sectorThe project already involves 3 local companies in the seafood sector. To expand, the project is likely to share its knowledge on mud crab fattening and encourage other companies to set up their own fattening farms and benefit from economies of scale. The project will contribute to manage the resource, which will prevent all the traditional fishers from seeing their source of income disappear. Then, it will bring knowledge on mud crab aquaculture to the sector.The project will host trainees and trainers from the Institute of Fisheries Research and Marine Science, based in Toliara. It will collaborate with two NGOs, Blue Venture and Transmad, for community based farming. A cooperation agreement will be signed between the new joint venture and the institute.The joint venture will share its experience with any other institutes.•	EnvironmentCrab aquaculture helps to prevent overexploitation which is a serious threat to Madagascar.In addition to that, the area of the natural habitat of the mud crab, the mangrove forests, will be protected. The NGO Blue Venture will use the concept of this project to generate “Blue” carbon credits under the UNFCCC REDD-plus programme*.Last but not least, the project plans a responsible aquaculture, with no use of antibiotics or toxic inputs.* Reducing emissions from deforestation and forest degradation (REDD) and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries.•	Position of womenThe joint venture intends to employ at least 50 women. The NGO partners will set specific objectives about gender promotion degradation.•	Impact on food safetyAs the project is aimed at export of crab, the contribution to local food security is considered low.•	Impact on waterThe project activities are not geared towards the issue of water availability. To establish two farms at the coast and an transfer-site near the airport for live crab (annual production of about 180,000 live crab from own farms and the community based farms) and a farm with an annual production of 36,000 soft shell crab.