CFC/INFOFISH/FAO “ORGANIC” AQUACULTURE PROJECT

INFOFISH/FAO/CFC

2

World fish supply SUPPLYssuproduction

Million t 2008 2009 2010e 2010/

2009

Capture 90 90 90 (0.1%)

Farmed 53 54 56 3.1%

Total 142 144 145 1.1%

3

Per caput food supply

Kg/year 2008 2009 2010 2010/09

Food fish

17.1 17.1 17.1 0.2%

Capture 9.3 9.2 9.1 -1.3%

Farmed 7.8 7.9 8.1 1.9%

4

Norway6%

Canada4 %

Viet Nam4%

Chile4%

USA5%

Thailand6%

China10%

Russia2%

Indonesia2%

EU (25)26%

Main fish exporters 2008 (value)

• WORLD TRADE IN AQUACULTURE PRODUCTS

– DATA ?– STATISTICS DO NOT DISTINGUISH BY

ORIGIN

• FAO PROJECT 2011– ESTIMATES– BY SPECIES AND BY COUNTRIES

ORGANIC PROJECT

• Aim: Pilot production and marketing of organic seafood

• Species: tilapia, black tiger shrimp

• Malaysia, Myanmar, Thailand

• Total project USD 1.4 Million

• CFC grant USD 835,000

• INFOFISH: project executing agency

• FAO: supervisory body

• www.organicfishery.net

Market survey Market survey

• The project conducted market surveys in The project conducted market surveys in AsiaAsia, , North America North America and Europe and Europe

• Market potential for certified organic better in East Asia Market potential for certified organic better in East Asia compared to western markets during 2008-2009compared to western markets during 2008-2009

• Consumer demand in Asia good for chemical-free fishConsumer demand in Asia good for chemical-free fish

• With this feed-back , trial production and marketing of With this feed-back , trial production and marketing of chemical-free tilapia began in Malaysia chemical-free tilapia began in Malaysia

TRENDS IN GLOBAL ORGANIC FOOD MARKET

• GLOBAL ORGANIC PRODUCTION AREA : GLOBAL ORGANIC PRODUCTION AREA : 35 million hectares in 2008 35 million hectares in 2008

(0.70% of world agriculture land) (0.70% of world agriculture land)

• GLOBAL AQUACULTURE (food fish) PRODUCTIONGLOBAL AQUACULTURE (food fish) PRODUCTION : 50 331 239 : 50 331 239 tons (2007) tons (2007)

• ORGANIC FISHERIESORGANIC FISHERIES PRODUCTION : PRODUCTION : 53 000 - 55 000 tons 53 000 - 55 000 tons (0.10 % of world aquaculture production ) (0.10 % of world aquaculture production )

ESTIMATES ON GLOBAL ORGANIC FOOD PRODUCTION ESTIMATES ON GLOBAL ORGANIC FOOD PRODUCTION

ORGANIC SEAFOOD MARKET ORGANIC SEAFOOD MARKET

• US$ 300 - 400 million at distributor level US$ 300 - 400 million at distributor level

• US$ 800 - 900 million at retail levelUS$ 800 - 900 million at retail level

ESTIMATES …… ESTIMATES …… GLOBAL ORGANIC FOOD MARKETGLOBAL ORGANIC FOOD MARKET..

Organic Food and Beverage: US$ 50 billion in 2008Organic Food and Beverage: US$ 50 billion in 2008

USA : US$ 20 billionUSA : US$ 20 billionEU : > EU : > US$ 20 billion US$ 20 billion Japan: < US$ 1 billion Japan: < US$ 1 billion China : China : US$ 4 billion US$ 4 billion

Malaysia: Malaysia: US$ 25 millionUS$ 25 millionSingapore: Singapore: US$ 25 million US$ 25 million

ASIA-PACIFIC ORGANIC FOOD MARKET :

• Organic food and beverage consumption in Asia/Pacific is higher than the global average (AC Nielson, )

• The leading markets identified: China, Taiwan, South Korea, Singapore, Thailand, Malaysia

• Salmon and cod only organic seafood one could find in SE Asian markets ------- except in China

• Marketers and consumers say-----”organic fishery products are unavailable to them”.

ORGANIC MARKET IN CHINA -2009• Organic food market was worth US$ 3-5 billion

• Certified organic fishery production totalled over 16 000 MT in 2007

• This was equivalent to only 0.1% of the total aquaculture production in 2007

• Nearly all organic fishery products entered the domestic market

Organic Seafood Survey in SE Asia

• Medium & High-end supermarkets

• Five star Hotels

• Fine dinning & restaurants

Global Production of Organic Fishery Products Global Production of Organic Fishery Products

• Europe : Europe : 24 500 tons24 500 tons• Asia : Asia : 19 000 tons19 000 tons• Americas:Americas: 7 000 tons 7 000 tons

• Africa: Africa: 2 000 tons 2 000 tons• Australia & NZ: < 1 000 Australia & NZ: < 1 000

tonstons

Salmon : 30% (Salmon : 30% (16 000 16 000 tons ) tons )

Trout : 36%Trout : 36%

Sea bream / Sea Sea bream / Sea bass :7%bass :7%

Carp :10% Carp :10%

Shrimp: 18% Shrimp: 18% ((8 800 tons )8 800 tons )

Tilapia : 2%Tilapia : 2%

PangasiusPangasius: 2%: 2%

Trial Production of Organic Tilapia Trial Production of Organic Tilapia

• MalaysiaMalaysia : Cage culture : Cage culture in in Tasik Kenyir,Tasik Kenyir, Terengganu Terengganu

• MyanmarMyanmar: Pond culture : Pond culture

Cage culture in Cage culture in Tasik Kenyir,Tasik Kenyir,MalaysiaMalaysia

• Initial culture was focused on chemical-free fish

‘-Organically’ farmed tilapia enters the ‘live fish ’ retail trade (supermarket) in Kuala Lumpur for the first time

-Local organic shops start marketing whole dressed fish and fillet through selected outlets -Consumer feed back was good, but regular supply has been a constraint ; demand increased after the trial marketing -, Tilapia price at farm gate and retail level increased for such fish over the last two years

Test Marketing

MYANMAR

• Initial farming was targeted for the organic Initial farming was targeted for the organic freshwater freshwater machrobrachiummachrobrachium or freshwater prawn or freshwater prawn

• The poly-culture system later offered opportunities The poly-culture system later offered opportunities for organic tilapiafor organic tilapia

MYANMARMYANMAR

• A potential Asian buyer visited A potential Asian buyer visited the farming site the farming site

• Taste test was done Taste test was done

• And she liked the “organic prawn And she liked the “organic prawn and tilapia ‘and tilapia ‘

• And the ‘organically grown ‘ And the ‘organically grown ‘ pangasiuspangasius

MYANMARMYANMAR

• Poly-culture (freshwater prawn Poly-culture (freshwater prawn and tilapiaand tilapia

• Farm-made certified feed was Farm-made certified feed was used to produce organic tilapia used to produce organic tilapia and prawn and prawn

• The farm followed organic The farm followed organic aquaculture procedures aquaculture procedures

• The ‘Organic Tilapia ‘ received The ‘Organic Tilapia ‘ received OAPC certification from Thailand OAPC certification from Thailand

Finally ORGANIC TILAPIA and F/W Prawn were exported for Malaysia and Singapore markets

OPPORTUNITIES

• Organic poly-culture

• Organic barb

• Organically grown pangasius

Malaysia : Price Premium for Chemical – free Malaysia : Price Premium for Chemical – free at Farm Gate at Farm Gate

(INFOFISH , 2009)

•PangasiusPangasius catfish : 35% catfish : 35%

•Tilapia : 36%Tilapia : 36%

•B/tiger Shrimp : 30-40%B/tiger Shrimp : 30-40%

Higher value of fresh/chilled fish will continue Higher value of fresh/chilled fish will continue to associated with the to associated with the quality certification quality certification

labelslabels

• Economic recession has slowed down growth in western organic markets . Naturland reported that only 36% of shrimp was marketed (in Europe/USA) as organic---due to supply-demand imbalance and too much market dependence on these markets

• In comparison , organic finfish ( salmon , bream , pangasius, sea bass and sea bream) market was less effected . Organic salmon and cod imported into East Asian markets

• In Asia , wild caught fish currently fill the place of organic fish due to lack of supply / inadequate supplies from local sources .

• Once available --- organic and chemical –free fishery products , particularly fin-fish species - will benefit significantly from the ‘ready’ domestic and regional markets .

• Environmental issues and aquaculture : Organic aquaculture able to weather issues such as ‘carbon labeling’ in the production cycle

CONCLUSIONS

• Organic seafood: small but growing sector

• Demand hurt by limited supply range

• Organic feed a constraint

• Over-dependence on Europe

• Strong regional demand in Asia

• Small-scale potential: clusters

• Synergies with fair-trade/social labels

• Potential:1% of food fish=1,100,000 tons ?