foreign agricultural service...millions in 2018) has led to greater demand for imported food and...
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United States
Department of
Agriculture
Foreign
Agricultural
Service
Foreign Agricultural ServiceLinking U.S. Agriculture to the World
Russ Nicely
Agricultural Counselor
Bangkok, Thailand
United States
Department of
Agriculture
Foreign
Agricultural
Service
➢ Connect U.S. agriculture to the world to enhance export
opportunities & global food security
➢ Represent the diverse interests of U.S. farmers, ranchers, and
processors around the world
➢ 93 offices worldwide, covering 171 countries
➢ FAS staff identify problems, provide practical solutions, and
work to advance opportunities for U.S. agriculture and support
U.S. foreign policy around the globe.
➢ Crucial role in promoting U.S. food and agricultural exports
About FAS
United States
Department of
Agriculture
Foreign
Agricultural
Service
1. Trade Policy
2. Market Development & Export Assistance
3. Market Intelligence & Analysis
4. International Development
Areas of Focus
United States
Department of
Agriculture
Foreign
Agricultural
Service
➢ U.S. Government Funded under
Market Access Program (MAP)
➢ Industry Collaborative Efforts
➢ Common strategic
opportunities/challenges cutting across
product lines and/or markets
➢ Multiple participants led by one
organization
➢ Single or multi-year projects
Global Broad-Based
Initiatives (GBIs)
United States
Department of
Agriculture
Foreign
Agricultural
Service
“Southeast Asia Market Development for U.S.A. Seafood”
Global Broad-Based
Initiatives (GBIs) Sample
Lead By: FOOD EXPORT USA (started year 2017)
Objective: to expand export sales for the U.S. seafood industry by:
1) Increasing business efficiencies through identifying new processing opportunities as U.S. companies shift away from high
labor costs in China;
2) Developing markets for high volume, low value fish species that lack sufficient markets; and
3) Expanding market diversification and market penetration for high-end seafood products.
Highlighted products: A wide range of U.S. seafood products
Participating U.S. cooperators or state regional groups: American Indian Foods (AIF), Alaska Seafood Marketing Institute
(ASMI), Food Export USA-Northeast, Food Export Association of the Midwest USA, Southern United States Trade Association
(SUSTA), and Western United States Trade Association (WUSATA)
“As a result of this trade mission, US suppliers reported actual onsite sales. . .for a
wide range of USA seafood products including American lobster, black cod, salmon,
Alaska pollock, Pacific hake, oysters, Dungeness crab, and rockfish,” Coyne said.
“Additionally, suppliers report making 306 new buyer contacts and project additional
sales of over USD 5.5 million will result from these new market connections.”
(Source: SeafoodSource interviewed Colleen Coyne, seafood program coordinator at Food Export USA-Northeast, 2017)
United States
Department of
Agriculture
Foreign
Agricultural
Service
Global Broad-Based
Initiatives (GBIs) Sample
United States
Department of
Agriculture
Foreign
Agricultural
Service
Source: The research study on “Understanding Consumers’ Perception and Behavior towards Sustainable Consumption and Production” by CSN Research Ltd. dated March 27th, 2018
United States
Department of
Agriculture
Foreign
Agricultural
Service
Source: The research study on “Understanding Consumers’ Perception and Behavior towards Sustainable Consumption and Production” by CSN Research Ltd. dated March 27th, 2018
United States
Department of
Agriculture
Foreign
Agricultural
Service
Source: The research study on “Understanding Consumers’ Perception and Behavior towards Sustainable Consumption and Production” by CSN Research Ltd. dated March 27th, 2018
United States
Department of
Agriculture
Foreign
Agricultural
Service
Source: The research study on “Understanding Consumers’ Perception and Behavior towards Sustainable Consumption and Production” by CSN Research Ltd. dated March 27th, 2018
United States
Department of
Agriculture
Foreign
Agricultural
Service
GOOD MARKET
FUNDAMENTALS
Thailand
A Range of
Opportunities
3.6 PERCENT ECONOMIC GROWTH IN
2018
About 38.3 MILLION
TOURIST ARRIVALS in
2018(+9.4% from 2017)
$5 BILLION IN CONSUMER
FOOD IMPORTS
HIGH DEMAND FOR IMPORTED
PRODUCTS
HIGHLY COMPETITIVE
RETAIL SECTOR
SOUTHEAST ASIA’S
SECOND LARGEST
ECONOMY
United States
Department of
Agriculture
Foreign
Agricultural
Service
About $418 million U.S. Consumer- Oriented Food
Exports to Thailand in 2018
United States
Department of
Agriculture
Foreign
Agricultural
Service
Why U.S. Seafood in Thailand
Thailand imported seafood from the world valued at $3.8 billion in 2018
USA
(2018)
$246
million
United States
Department of
Agriculture
Foreign
Agricultural
Service
Market Opportunities in Thailand
➢ Highly competitive retail sector.
➢ Thailand’s food service sector is made of around 150,000
outlets, including 100,000 restaurants and more than 5,000
hotel and resorts.
➢ High growth in the number of international tourists (38.3
millions in 2018) has led to greater demand for imported food
and beverage items for food service operators.
➢ Thai seafood processors are looking for new U.S. seafood
raw materials to serve an increasing demand for processed
foods and ready to eat meals.
➢ Competitive Import tariff of U.S. seafood imports to Thailand.
➢ Healthy food and beverages are becoming increasingly
popular due to growing health awareness of the urban
population
➢ Increase in on-line purchase and food delivery.
United States
Department of
Agriculture
Foreign
Agricultural
Service
Thank you
Project History
• First GBI - 4 USA organizations together promoted wild
& farmed fishery products throughout China from 2013-
2016
• Project goals - grow awareness and demand through
activities targeting importers, retail channels, the
restaurant trade and consumers in five of China’s
largest markets
• USA brand reputation is reliability of:
Food Safety Systems
plus Good Product Quality
plus Sustainable Supplies
equals Good Value
What the trade and consumers want
Project History
SE Asia GBI (2017-Present)
• 6 organizations – all new-to-market
• Working together makes for stronger voice &
more impactful messaging
• Trade missions, reverse trade missions,
education & product promotions are
producing growth markets
U.S.A. Exclusive Economic Zones for Fishery Management
• The U.S. Exclusive Economic Zone (EEZ) is the largest
in the world - equal to 1.7 times the area of the U.S. and
territorial landmass
• Fishery management is governed under an umbrella of
national, regional, and state laws that rely on science to
formulate fishery management & conservation plans
• Long before “sustainability” was a trend it was the norm
in the USA
• Every region & partner organization can point to
examples of the seafood industry working hand-in-hand
with scientists to manage fisheries for sustainability
Broad Continental Shelf Provides the Northeast U.S.A. with
Extensive & Productive Fishing Areas
• The continental shelf here is wider than many
other countries
• A continental shelf provides the greatest
productivity for nurturing populations of fish &
shellfish
• Warm Gulf Stream current from the south
supplies additional nutrients to the cold
waters of the Northwest Atlantic Ocean
making the waters highly productive
• Our harvesters are on the front line of
climate change – waters in the Gulf of
Maine are warming faster than any other
place on the planet
Productive Fishing Ports
• The oldest fishing port in America (Gloucester,
Massachusetts) and the most valuable fishing port
in America (New Bedford, Massachusetts)
• Small to medium-sized companies in a highly
fragmented and disaggregated industry
• Before 1977 and the EEZ, uncontrolled foreign
fishing had decimated most offshore fishery stocks,
particularly groundfish and pelagics
• Stock rebuilding relied on cooperative efforts
between scientists and harvesters
Region’s Signature Seafood
American Lobster
• The first size laws and the prohibition against the taking of females bearing eggs date back to the 1870s – at the start of the fishery
• Responsible fishing has always been the highest priority of the U.S. American lobster industry. A long history of responsible fishing and good, science-based, conservation management practices have produced a sustainable and profitable resource
Region’s Signature Seafood
Atlantic Sea Scallops
• The U.S. Atlantic sea scallop fishery is
one of the world’s best examples of
how managing a fishery for
sustainability has produced a healthy
resource, increased landings and
greater profitability
• Through careful and successful
management of the resource, the U.S.
Atlantic sea scallop fishery now
supports the largest amount of
landings in its history, making it the
largest and most valuable wild scallop
fishery in the world
• Fishery transformed by scientists
and harvesters working together in
20-year partnership.
• Industry donates 15 vessels, the
crews, fuel, and food to scientists for
a week of sampling every summer.
Natural environment is untouched.
Atlantic Sea Scallops
Fishery Management Measures
Conservation measures include limiting fishing effort, controlling
gear, and rotational area closures
Results:
• Rotational closures of fishing areas produce larger scallops.
More meat per shell means a more profitable product
• Fishing vessels reach per trip catch quotas faster
• Gear changes have improved yields and decreased discards
The U.S. Atlantic sea scallop fishery now supports the largest amount of landings in
its history — is the largest and most valuable wild scallop fishery worldwide
Who & What is Defining Sustainability?
Are sustainability certifications/ecolabels helping, hurting, or having no positive
impact on sustainably managing fishery resources?
• When certification costs must be added to the cost of a product do
markets suffer?
• When climate change necessitates expanding scientific research and
supporting industry adaptation in a rapidly changing environment, is
investing in eco certifications a wise or even realistic investment?
• When markets erode despite fishery sustainability certifications –
how important or effective are they (eg. dogfish)?
Alaska Seafood and Sustainability in Singapore
Kevin Gantner, The Alaska Guys
The Alaska Guys
▪ The Alaska Guys (TAG) is an Alaska Seafood Specialist Company based in Singapore since 2014.
▪ TAG, through a unique, Alaskan-based effort is making Wild Caught Alaska Seafood available to the South East Asian Market.
▪ TAG recently branched out to Ho Chi Minh Vietnam and Jakarta, Indonesia.
▪ TAG provides premium quality wholesale fresh and frozen seafood products. TAG caters to a network of E-commerce consumers, restaurants, and retailors.
▪ Our customers value our consistent quality of service and fish products that are harvested utilizing sustainable fishing practices.
55%
-21%
84%
20%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
2006 2009 2012 2015 2018
Alaska Seafood Export Volume to Asia, 2006-2018
Other Asia
China
South Korea
Japan
Background on Kevin
▪ Kevin Gantner had been a long time resident of Alaska: living in Adak, Bethel, Sitka and Dutch Harbor until he moved abroad 27+ years ago to Singapore.
▪ In Singapore he has been marketing and selling Alaskan seafood for the past several years.
▪ Having been involved in the education business as well as the fishing industry, Kevin has extensive knowledge of the Alaskan based seafood industry.
▪ Kevin pioneered The Alaska Guys (TAG)
▪ Passionate about providing the healthiest, wild-caught quality retail and wholesale seafood products available to the Southeast Asian markets.
Quality and sustainability starts with the care taken at the point of harvest, continuing on through to the processing experience and all the way to the consumer.
TAG and ASMI and the GBI
▪ ASMI EMP project to Thailand, Indonesia and Vietnam in 2016
▪ Joined USA Seafood GBI in 2017 (Thailand and Singapore)
▪ Joined USA Seafood GBI in 2018 (Vietnam)
The Singapore Scene
▪ Population of 5.6 million
▪ A wealthy, developed, and highly urbanized country almost entirely dependent upon imports for all of its food requirements.
▪ Singapore’s food laws, policies and enforcement practices are focused on ensuring consistent foreign supply of safe food and agricultural products.
▪ Singapore has a highly developed and competitive hotel, restaurant and institutional (HRI) sector. Singaporeans are some of Asia’s top spenders on dining out.
▪ In 2017, the country’s tourist receipts topped $20 billion USD, of which $2 billion was derived from food and beverage sales.
Trends
▪ Origin Alaska is recognized and revered
▪ Wild caught is a big selling point
▪ Certain customers call out “sustainable” without asking for certification
▪ Others have begun to request certification (global hotel chains)
▪ Underwent MSC-COC in March 2018
▪ Healthy and organic products are becoming very popular.
▪ Diners like to celebrate and “chillax.”
▪ Parents want the best for their children.
