Francis Murray

Institute of Aquaculture, University of Stirling

fjm3@stir.ac.uk

Content

1. Background

2. Aquaculture standards & certification in S & SE Asia

3. Case-Study: Shrimp in Thailand & Bangladesh

4. Case-study: Bangladesh Organic Shrimp Project (OSP)

5. Harmonization & equivalence initiatives

Background Net trade farmed seafoods: developing to developed nations

Long subject to mandatory food-safety standards

Increasingly market-based standards covering:

Food safety, social & environmental, animal welfare criteria

Certification as driver of industry consolidation – burden on small farmers less able to afford compliance costs - options?

Group certification schemes (GlobalGAP, BAP, ASC)

Producer premiums in niche markets (Fair trade, organic)

Export sector withdrawal/ redeployment?

Harmonisation & equivalence of standards

International & National Standards

In Asia

Global GAP, GAA & ASC = 80% of

export aquaculture certification

globally

Source: Wilkings 2012

GlobalGAP certified facilities Aug2013

Atlantic salmon [Salmo Salar] Barramundi [Lates calcarifer] Coho salmon [Oncorhynchus kisutch] European seabass [Dicentrarchus labrax] Gilthead seabream [Sparus aurata] Meagre [Argyrosomus regius] Nile Tilapia [Oreochromis niloticus]

Pangasius Basa [Pangasius bocourti] Pangasius Tra [P. hypophthalmus] Rainbow trout [Oncorhynchus mykiss] Red Porgy [Pagrus pagrus] Salmon trout [Salmo trutta trutta] Sharpsnout Seabream [Diplodus puntazzo] Turbot [Scophthalmus maximus] Whiteleg shrimp [Litopenaeus vannamei]

• 29 Countries • 13 Species

GAA-BAP certified Facilities May2015

• 25 Countries • 23 Species groups • 108 shrimp farms (309 total)

IndoGAP

VietGAP

ThaiGAP

IndiaGAP

ChinaGAP

Aquaculture Stewardship Council (ASC)May2015

8 standards for 12 seafood species groups

Salmon, shrimp, tilapia, FW trout, pangasius, seriola, cobia, abalone, bivalves (mussels, clams, oysters, scallops)

Late mover & currently farms only:

Shrimp 8 (25 inc. Vietnam - 11 & Indonesia - 2)

Pangasius 43 (All in Vietnam)

Tilapia 28 (6 in Asia)

Enterprise Scale!

0

0.01-3000

3001-15000

15001-30000

300001+

Saraburi

Lopburi

Surat Thani

Nakhon Sri

Thamarat

Chonburi

Chanthaburi

Ubon

Yasotho

Nakhon

Ratchasima

Kampangphaet

Chiangrai

Chiangmai

Lampang

Udon Thani

Yala

Nan

PayaoMahongson

Phrae

Uttaradit

Phitsanulok

Loei

TakSukhothai

Lamphum

Nongkhai

Sakhon Nakon

Nakhon

Phanom

Pichit

Nakhon Sawan

Petchabun

Chiyaphum

Khon KeanKalasin

Ubon Ratchathani

Maha

Sarakham Roiet Yasothon

SisaketSurin

Buriram

Srakaew

Rayong

Trat

Uthai Thani

Kanchanaburi

Suphanburi

Chainat

Singburi

Angthong

Ayutthaya

Ratchaburi

Nakhom

Pathom

PathumthaniNonthaburi

Bangkok

Nakhon

Nayok

ChachoengsaoSamut

Prakan

Samut

Sakhon

Samut Songkham

Petchburi

Prachuab Kirikhan

Chumphon

Ranong

Phang

Nga

Krabi

Trang

Satun

Pattalung

SongKhlaPattani

Narathiwat

Intensive monoculture

‘closed systems’

Processing: Largest companies vertically

integrated (e.g. CP >15% production)

Thailand L. vannamei

Source: A. Nietes Satapornvanit - Unpublished

Thailand – Intensive shrimp Thailand – Corporate

Charoen Pokaphand

Semi-intensive prawn, fish, rice, dyke crops

Shrimp, Prawn, fish, rice, dyke crops

Rural Auction

Informal transport

Extensive & semi-intensive shrimp, fish in ponds

Depots

Processing:

(No vertical integration) Bangladesh

Thailand & Bangladesh Shrimp/ Prawn 2012

Thailand Bangladesh

Global Rank No. 1 (30% share) No. 10

Markets USA 46%, Japan 25%, EU 18% EU 75%, USA 19%

Total production LWE 624,000t 137,000t

Main species L. vannamei (93%) L. monodon (55%) M. rosenbergii (33%)

Shrimp yield (t/ha/yr) 6-10 [<48,880ha] 0.1-0.7 [275,232ha]

No farms [& modal ha] 19,150 [1.6ha] >250,000? [0.5-1.1ha]

National standards (2015)

Code of conduct (CoC) Good Aqua Practice (GAP) GAP 7401 (‘GAP+’ ThaiGAP)

NA

Third-party standards (2015)

(6 Standards) GAA (25 farms, 29 proc, 8 hat)

GlobalGAP, ASC

(5 Standards) GAA (2 farms, 5 proc)

Naturland (+3,ooo farms)

Traceability GAP component (meets 3rd party standards)

UNIDO registration (!?) ‘Value chain shortening’

Thailand Quality Shrimp Standards

Focus on high-end exports i.e. mainly shrimp

Based on: FAO codes, Codex Alimentarius, ISO 14001

1998 CoC: Code of Conduct – 3yr cert.

2000 GAP: Good Aquacult Practice , inc. FMD - export must

2009 GAP 7401 (aka GAP+ or ThaiGAP) - voluntary

Standard setting & accreditation –National Bureau of Agric. Commodity & Food standards - DoF (ACFS: ISO/IEC 17011)

Certification – Aquaculture Development and Certification Centre - Min Agric & Cooperatives (ADCC: ISO/IEC 65)

Thai Farm Certification Process & Third-Country Recognition

Thailand Third-countries

ACFS

ADCC (DSFS)

Thai National & Third-party Shrimp Certification 2015

Standard Feeds Hatchery Farm Group Processor

CoC 2007 2015

0 125 149 68?

0 0

GAP 2007 2015

0 1061 20,437 9,539?

0 ?

GAP 4401 (ThaiGAP)

0 0 28 2 0

GLOBALGAP 1 Y Y ND Y

GAA-BAP 0 8 31 0 29

ASC 0 0 0 0 0

Thai Shrimp Traceability Fry (FMD) & Fish Movement Documents (MD)

Paper-based traceability system: CoC, GAP, GAP7401

External: whole supply chain: hatchery, nursery, farm, distributors, processing, export/importers, feed mills

Internal: to pond level

‘Traceshrimp’ 2005 - online tracking system, created by Min Agric and cooperative, managed by DoF Multi-lingual, no software requirement

By invoice No., delivery bill , product lot No. event date

Supply chain management and standardisation

Main users: importers, certification bodies… open access

GlobalGAP compliance lessons NACA gap analysis & adaptation study 2009

18 shrimp farms – small medium and large – audited against GLOBALGAP compliance criteria

Complied with approx. 50% criteria (ThaiGAP primer!)

No sig. scale diffs (farm groups better social results)

Modules: base 47-52%, shrimp Sp. 44-46%,

social, 43-45%, all farms 22-27%

Non-compliance critier: Environment

Health hygiene and food safety

RASFF notifications – Imports to EU from Thailand 1997 - 2010

Shrimp: no notifications since 2008!

DoF FMD intervention

Bangladesh Recurrent Export Bans (RASFF 2000 – 2010)

Recurrent EU/ GoB ‘bans’

Prawns now main culprit!

Value of shrimp & prawn exports (USD) by export market 1990-2010

Bangladesh Traceability Challenges Bad image! most EU imports to low-end food service

Traceability system addressing needs & capacities of small-scale producers required to compete in higher-value markets – costly!!

Persistent problems post harvest & pre-processing

Small farm size & low yields (<10kg/ transaction)

‘Micro-harvesting’ on natural lunar cycles (‘goans’)

Weights & measures/ adulteration

(‘pushing & soaking’)

Traceability Efforts Many failed/ delayed development & private sector

shrimp certification initiatives inc:

FairTrade (2010-12) ASC shad (2011)

2010: DoF/ UNIDO farm registration scheme

175,000 farms registered (90% of total)?

Lack of personnel and data management capacity

NGO collaboration 0r best guess…

Updating - dynamic leasing & insecure property rights

WAB Organic Shrimp Project 2005-2007 Swiss Import Promotion Programme (SIPO)

2008-2014 WAB Trading Int. Asia Ltd (German importer)

Naturland (group) organic certification, IMO 3yr audit

> 100 staff laid-off 24th Mar 2014

2014-present ‘Seafood Connections’ (Dutch Importer)

Moving towards GLOBALGAP Certification ?

Organic Shrimp Value Chain

FG FG FG

Collection Center

Collection Center

Organic Processor

25 CC

>3,400 farmers

Retail multiples

Boutique retail

Village

District

EU (Germany/ Austria)

1 OP

2013: 555t

Organic Hatchery?

Ice & plastic boxes

ICS IMO

shrimp

Fu

lly Traceab

le Ch

ain o

f Cu

stod

y

FG = Farmer Group

Nothing new!

Innovations (1): Internal Control System (ICS)

47 staff – farm to factory – regular rotation

Farm inspection & training

Farmer registration (GPS boundary mapping)

No organic feed; composting only (productivity limit)

No wild sourced seed

Failed farmers excluded for 1 year

Innovations (2): De-centralised cluster approach

Reduced externalities e.g. chemical use

Social reinforcement of rule adherence

Short distance to collection centers (<3km)

Short journey time (max 3hrs) to local proc. plant

Eliminates high spoilage/ adulteration risk between farm gate & conventional depots

No requirement for middlemen assemblers (‘farias’)

Creation of service provision jobs in local communities

Depots also act as village meeting places

Innovations (3): Business model Group certification

WAB (& processing partner) responsible for standard implementation – farmers responsible to WAB

Organic price premium (>10%) retained by WAB to cover certification & traceable supply chain costs

Offer prices fixed on goans to reflect EU retail demand/ forward contracts

Certified farmers are free to sell elsewhere

Est only 20-50% of certified production is sold to WAB at any time.

OSP farmer incentives? Near farm-gate uplift

Rapid payment; cash within 2 days of harvest

Transparent process – accurate weights etc.

Support to increase farm productivity (within extensive limits)

Extension services e.g. fertilization techniques

Quality PL provision (hatchery development)

Eventual economic failure? High costs - group certification & chain of custody

Processing & distribution over-capacity

2010: 113t 2013: 555t

Processing capacity

Block frozen 7,300t/yr (20t/day) i.e. 10%

IQF (cooked) 16mt/ day

Insufficient demand for premium product?

Differential between WAB and ‘none-organic’ price

On-going value-chain initiatives All have traceability enhancement components inc:

Supply chain shortening

Increasing farm productivity

Formation of producer groups

Processors/ depots as lead organizations!

Currently no other 3rd party certification initiatives?

Seafood connections?

Benchmarking, Equivalence, Harmonisation,

Goal: To reduce compliance cost of multiple standards e.g. single audit? improve process & technical consistency & efficiency, reduce consumer confusion

Benchmarking: Comparing standards by measuring performance against specific indicators

Equivalence: Different criteria – comparable impact!

Harmonisation: Prevent or eliminate differences

Harmonisation- still largely internal

Equivalence – GLOBALGAP example Two levels of recognition:

Equivalent – 2 types: Own GAP & scheme management systems recognised fully

conforming to GLOBALGAP control points & compliance criteria

Approved modified checklist (AMC): Use GLOBALGAP general regs. for scheme mgt. & own GAP reqs. recognised v CP & CC’s

Resembling Conforming in most respects with add-on modules re.

exceptions e.g. Friends of the Sea (sediment & social impacts modules)

Other participating schemes: GAA, ASC, SQF 1000 Often mutual recognition

Benchmarking [1] Global Food Security Safety Initiative GFSI

Industry initiative (Consumer Goods Forum) to promote ‘harmonised’ approach to food safety & continuous improvement – pioneering BM initiative

To credibly determine equivalency between schemes whilst leaving flexibility and choice in market place

UK - Food Safety Standard (FSS – 1998)

Germany France - Int. Food Safety Standard (IFS)

USA Food Marketing Inst. – Safe Quality Food (SQF)

Benchmarking [2] Global Seafood Sustainability Initiative GSSI

2013 Global partnership of seafood companies, NGOs, governmental inter-govt. agencies & experts

An internationally agreed set of requirements & indicators to measure & compare environmental performance of seafood certification schemes

Based on FAO principles for responsible aquaculture (& fisheries) – 4 Sections:

A. Scheme governance B. Operational management

C. Aquaculture D. Fisheries

GSSI Scope GSSI Does

Drive change towards sustainability through a multi –stakeholder process.

Deliver recognition of seafood certification schemes aligned with the FAO Guidelines.

Increase comparability and transparency in seafood certification.

Enable informed choice for procurement of certified seafood

GSSI Does not

X Undertake any accreditation or

certification.

X Develop or own any standards.

X Rank certification schemes

X Define sustainable or responsible

seafood

X Permit any consumer facing labelling

about its recognition.

X Make policy for any business or scheme

Where does it sit?

GSSI Partners

Thank You

fjm3@stir.ac.uk

www.SEATglobal.eu