Reports on contractor progress 1/79-8/82 in a project to improve fish production, storage, and marketing in Djibouti. First year progress was so encouraging that an 18-month project extension and expansion was authorized in 9/81 and boat-building/repair and oyster culture activities were added. Fish production increased from 251 MT in 1979 to 385 MT in 1981 and may reach 450 MT in 1982. The 3/81 transfer of the management of the Boulaos fish market, Djibouti's largest, from private vendors to the fishing co-op has been very beneficial. Fish storage has been improved by the co-op's insistence on buying only properly cleaned and iced fish and by its new flake-ice plant, installed by the Fish Service. The co-op is now procuring and selling fish through the revolving credit fund (gross sales from which totaled over DJF 9 million during 10/80-12/81) and is reinvesting the profits in material purchases and loans to fishermen, a situation which may lead to the co-op's eventual purchase of the market. A wide variety of management training for co-op personnel is planned. Other activities included the demonstration of improved fish production and harvesting techniques devised by the project team, the team's promotion of the nutritional value of fish, a 10% increase in the working fleet under the boat repair/building component, and the experimental culture of two oyster species. It is expected that the team will play a greater role in developing rural markets than, as originally planned, in outfitting new retail outlets in Djibouti City.