food safety standards and fishery livelihoods in east africa

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FOOD SAFETY STANDARDS AND FISHERY LIVELIHOODS IN EAST AFRICA

R.M.J. Kadigi

N.Y.S. Mdoe

E. Senkondo

Z. Mpenda

Book chapter 8 (162 – 183pp)

Project Conference & Book Launching – SAFE, May 31st – June 2nd 2010, Oceanic Paradise Hotel, Zanzibar

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Introduction• The export fishery industry in

East Africa has experienced a number of important challenges over the past two decades

• Most dramatically - those associated with the new generation of food safety standards imposed by Northern countries

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Pessimistic views ….

• … that the new generation of food safety standards are a barrier to high-value agro-food exports from this & other low income regions (e.g., Rahman, 2001; Otsuki et al., 2001; Wilson and Otsuki, 2003; Zaramba, 2002)

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• … that where exports do continue - are associated with highly skewed benefits, such that around the Lake deterioration occurs in living standards, the environment and even in food security (Jansen, 1997; Abila, 2000; Bokea & Ikiara, 2000)

• Most comprehensively incarnated in the award-winning documentary - Darwin’s Nightmare - directed by Hubert Sauper

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• … is more in line with that of Buzby (2003), Unnevehr (2003) and Jaffee & Henson (2004), who argue that emerging food safety standards work as a catalyst for modernisation and contribute to the creation of competitive advantages, resulting in increases of exports as well as improvements in the livelihoods of local communities

Our position …

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• Where standards are complied with and implemented in ways that preserve the inclusion of small-scale producers in export chains

• We demonstrate this argument using evidence from a survey conducted in 2006 on the Tanzanian shores of Lake Victoria, with a total sample size of 522 – complemented with previous findings in Kenya & Uganda

• We use a ‘Livelihoods Analysis and Change in Net Income (CNI) ’ approach

Livelihoods improves much more …

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Research findings

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•Household of those categories of operator most closely integrated into the Nile Perch global export chain have the greatest assets

Livelihoods assets…

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Value of asset

Type of asset Nile Perch export

Other fisheries Mean difference Mean value

for pooled sample

N Value N Value Fishing assets (Tshs): Fishers and crews 134 25,005 29 12,753 12,252*** 21,612

Boat owners 17 2,703,298 74 1,033,500 1,669,798*** 2,240,892

Land owned (ha):

Fishers and crew 134 2.4 29 1.7 0.7** 1.88

Boat owners 17 3.5 74 2.8 0.68** 2.88

Land cultivated (ha):

Fishers and crew 134 1.9 29 1.4 0.5013** 1.65

Boat owners 17 3.8 74 1.8 2.0011** 2.8

Livestock holdings (TLUs):

Fishers and crew 134 1.3 29 1.2 0.0998** 1.3

Boat owners 17 3.7 74 3.8 -0.1006 3.7

Human capital (average years of schooling)

Fishers and crew 134 4.3 29 4.2 0.0656 4.2

Boat owners 17 6.8 74 6.1 0.6879** 6.6

Human capital (% adult labour equivalents)

Fishers and crew 134 51.1 29 51 0.1028 51.1

Boat owners 17 68.4 74 62.3 6.1002*** 66.7

Other assets (TShs):

Fishers and crew 134 398,800.00 29 345,677.00 53,122 384,089.00

Boat owners 17 1,172,460.00 74 776,347.00 253,013 1,077,568.00

Test of significance: Independent samples t-test. Key: **Significant at P < 0.05 level. ***Significant at P < 0.01 level

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Mean household land holdings

0 1 2 3 4 5 6

Punki sellers

Mabondo collectors

Service providers

Traders – interregional markets

Traders – local markets

Assistants of Factory agents (NP)

Factory agents (NP)

Artisanal processors (other species)

Artisanal processor (NP)

NP Small scale shore bound collectors

NP Collectors with motorized canoe

NP Collectors with fish van

Boat owners (without compliance scenario)

Boat owners (with compliance scenario)

Fishers and crews (without compliance scenario)

Fishers and crews (with compliance scenario)

Ha

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• BUT, this pattern is not repeated with the same consistency in relation to household livestock ownership and not repeated at all in relation to mean household human capital endowments, where there is only slight variance between categories

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Mean household livestock holdings

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Punki sellers

Mabondo collectors

Service providers




Factory agents (NP)










Tropical Livestock Units (TLUs)

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Mean household adult labour equivalent level

0 10 20 30 40 50 60 70 80

Punki sellers

Mabondo collectors

Service providers




Factory agents (NP)










Adult Labour Equivalent % household size

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Mean value of households’ other assets

0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000

Punki sellers

Mabondo collectors

Service providers




Factory agents (NP)








Tshs

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Livelihood activities and net income portfolios

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• Specialisation in fishing activity is considerably greater for households involved in Nile Perch, irrespective of whether they are fishers or boat owners

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Net income portfolios for fishers & crews

Fishing income82%

Transfers3%

Crop income11%

Livestock/NR income3%

Other income1%

Fishing income70%

Transfers7%

Crop income17%


Other income1%

Other fisheries Nile perch fishery

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Net income portfolios for boat owners

Other fisheries Nile perch fishery

Fishing income87%

Transfers2%

Crop income7%


Other income1%

Fishing income68%

Transfers9%

Crop income14%


Other income2%

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•Both the households of Nile Perch fishers and boat owners have fishery-related net incomes more than double those of households of fishers and boat owners of tilapia, dagaa and so on

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Mean annual household net income for different groups of actors

Other

Actor category N Fishery Transfers Crops Livestock Activities

Total Net

Income

Fishery income %

Total income

Fishers & crews (with compliance scenario) 134 1,533,708 65,000 210,569 65,000 25,900 1,900,177 81 Fishers & crews (without compliance scenario) 29 800,949 75,010 199,560 60,000 12,500 1,148,019 70 Boat owner (with compliance scenario) 17 5,372,163 120,500 450,005 185,000 56,500 6,184,168 87 Boat owner (without compliance scenario) 74 1,832,820 234,090 363,060 190,000 43,015 2,662,985 69 Collectors with fish van (with compliance scenario) 5 12,402,108 0 650,950 205,000 237,890 13,495,948 92 Collectors with collector boat (with compliance scenario) 10 9,047,360 0 490,250 210,000 598,500 10,346,110 87 Small-scale shore bound collectors (with compliance scenario) 16 180,459 240,000 250,680 25,000 14,050 710,189 25 Processors - (Kayabo, vibambara vya sangara) 23 294,284 155,050 350,770 60,000 33,700 893,804 33 Processors - Other species 5 121,552 104,015 211,809 70,000 40,124 547,500 22 Factory agents (with compliance scenario) 7 16,374,982 0 750,505 250,901 143,570 17,519,958 93 Assistants of factory agents (with compliance scenario) 24 570,122 124,012 211,560 115,000 65,809 1,086,503 52 Traders – local markets (without compliance scenario) 34 379,016 120,450 390,501 170,000 96,890 1,156,857 33 Traders – interregional markets (without compliance scenario) 12 890,980 0 560,560 200,500 114,098 1,766,138 50 Service providers (e.g. cooks, accommodation, foods) 59 183,456 240,125 178,150 120,450 68,908 791,089 23 Mabondo collectors 13 78,684 110,234 120,505 51,981 30,768 392,172 20

Punki sellers 22 411,776 112,005 254,043 14,852 8,791 801,467 51

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•There is uneven distribution of mean household net income from fishery activities within the Nile Perch global export chain

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• Net incomes of households with boat owners are three times greater than those of households of ordinary fishers

• Net incomes of households with collectors using fish vans are four times greater

• Those of households with factory agents are ten times greater

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•Higher net incomes in the Nile Perch global export chain reflect the superior prices paid by the factories for fresh Nile Perch

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Comparative findings

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• … the study by Odongkara (2002) conducted in 2001/02 reports similar results with mean monthly earnings for Nile Perch fishers (at Ush. 279,473) more than double those of Tilapia (at Ush. 129,278) - (those of dagaa fishers averaged at Ush. 207,742)

• The mean earnings for fishers concealed a large difference between those working on motorised boats (Ush. 436,530) and those on non-motorised boats (Ush. 187,223)

• Similar findings are reported in the later surveys (e.g., by Namisi, 2002a;b; & Odongkara, 2002; 2005).

In Uganda …

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• Henson et al. (2005) in a study of two landing sites - a major export site & a site less integrated into the Nile Perch export chain, concluded that both fishers and artisanal processors/ traders in the major export site had significantly higher household incomes than the same groups on the site less integrated into the export chain for Nile Perch

In Kenya …

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• These studies show that the processing factories have provided better prices and guaranteed cash payment on delivery

• They again also indicate that the export industry directly and indirectly supports the livelihoods of many groups including owners of and workers in kiosks, bars, eating places, tailoring businesses and video halls, etc

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Conclusion• There are major impacts in terms of

income and welfare, despite the challenge of compliance with the new generation of standards

• This has been demonstrated relative to the outcomes associated with chains not linked to global markets

• There are important differences in the asset stocks of those participating in these two different types of chain

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• Given the fact that exports have been taking place for well over a decade it seems probably that differences in asset levels also reflect the benefits of participation

• All this suggests that it is worth supporting the maintenance of compliance to EU food safety standards in the Nile Perch value chain, in order to avoid loss of markets and to thus forestall any reversal of the positive impacts on the livelihoods that have been witnessed so far

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• We suggest a need for more effective and coherent planning in order to safeguard the future of the fishery sector in East Africa

• This will involve adopting an appropriate regulatory framework and strengthening the capacity of the stakeholders to manage the resource sustainably, while at the same time maintaining a broadly based fishery

31Ahsanteni sana!

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