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Organic Aquaculture Organic Aquaculture --Opportunities Opportunities for Emerging Marketsfor Emerging Markets

The environmental challenge forThe environmental challenge forexporting to Europeexporting to Europe

OECD Workshop on OECD Workshop on OpportunitiesOpportunities and and ChallengesChallenges of of FisheriesFisheries GlobalisationGlobalisation

Markus SternMarkus SternSIPPO SIPPO –– Swiss Import Promotion ProgrammeSwiss Import Promotion Programme

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Ecology

Trends in EuropeTrends in Europe

Consumermarket trends

SocialAspects

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NeglectingNeglecting marketmarket trendstrendsmeansmeans out of out of thethe marketmarket

environmental factors

poor socialresponsibility

price wars

Service Center

negative pressantibiotics

chemicalspoor

quality

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• Import duties, levies (anti-dumping), taxes, VAT, import licensing, quota, phytosanitarycertificates, bans

• Standardisation- technical specifications- performance of goods and services⇒ CE Marking

• Quality management⇒ ISO 9000 series, ISO 22000 (food industry)

• Health and safety (no risk for the safety and health of persons)⇒ HACCP, Good Agricultural Practice (GAP), Good Manufacturing

Practice (GMP) EurepGap, IFS, BRC, organic certificate

• Environment, waste management⇒ Green dot (some countries), ISO 14001, Ecolabeling, FSC, MSC

• Social accountability⇒ SA 8000, Fair trade (IFAT, IFOAM, Max Havelaar)

Regulations and Regulations and market requirementsmarket requirements

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Market Market PerspectivesPerspectives forforOrganic FoodOrganic Food

International Market 2006: > $ 30 International Market 2006: > $ 30 billionbillionUSA: > $ 15 USA: > $ 15 billionbillionEurope: > $ 15 Europe: > $ 15 billionbillionAsiaAsia: > $ 900 : > $ 900 millionmillionOceaniaOceania: > $ 400 : > $ 400 millionmillionOthersOthers: ?: ?

International Market 2007: International Market 2007: estest. $ 40 . $ 40 billionbillionGrowth per Growth per yearyear: 10 : 10 –– 15%15%

⇒⇒ Growth potential of the global organic marketsGrowth potential of the global organic markets⇒⇒ Global change in consumer behaviourGlobal change in consumer behaviour

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ConsumerConsumer BehaviourBehaviour

Reasons, why some consumersReasons, why some consumersprefer organic products:prefer organic products:75% health75% health--consciousnessconsciousness60% environmental reasons60% environmental reasons25% better taste25% better taste

How many consumers buy organicHow many consumers buy organicproducts?products?20% of the consumers buy regularly organic 20% of the consumers buy regularly organic productsproducts50% of the consumers buy organic products once 50% of the consumers buy organic products once in a whilein a while30% of the consumers never buy organic 30% of the consumers never buy organic products products

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The Organic Approach The Organic Approach

origin/source of material

• fishmeal/-oil• plant material• pigments etc.

feed factory

farm• environment

harvesting• documentation• book-keeping • storage

c h a i n o f c u s t o d ystorage

processing

export

Pilot farm /hatchery

System of System of inspection inspection

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OOrganic aquaculturerganic aquaculture projectsprojects

plannedplannedNot Not yetyetdefineddefined

Indonesia Indonesia MozambiqueMozambique

just just startedstarted1‘500 1‘500 –– 3‘000 3‘000 farmersfarmers

Black Tiger Black Tiger shrimpshrimp & FW & FW PrawnsPrawns

IndiaIndia

in in processprocess300300--500 500 certifiedcertified 20072007

1‘000 1‘000 farmersfarmersBlack Tiger Black Tiger shrimpshrimp

BangladeshBangladesh

CertifiedCertifiedCertifiedCertifiedin in processprocess

44--5 5 FarmsFarms1 Farm1 Farm

White White shrimpshrimpTroutTroutScallopsScallops

Ecuador &Ecuador &PeruPeru

certifiedcertified1‘198 1‘198 farmersfarmers(1 (1 farmfarm))

Black Tiger Black Tiger shrimpshrimp

VietnamVietnam

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Production Processing Export marketing Match-making

Activities of partners Activities of SIPPOpartner organisations

Interfaces Interfaces areasareas of of coco--operationoperation

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Organic black tiger shrimp in Organic black tiger shrimp in VietnamVietnam

Protection and re-forestation of mangroves

No use of pesticides, herbicides and antibiotics

Training/Vietnam

1‘198 Aquafarmsin Ca Mau

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Domestication of Domestication of PenaeusPenaeus monodonmonodon in in indoor system and production of indoor system and production of specificspecific--pathogenpathogen--free shrimpsfree shrimps

Shrimp Hatchery Improvement Project Shrimp Hatchery Improvement Project RIA2 / MOFIRIA2 / MOFI SIPPO SIPPO

Nguyen Van Hao, Nguyen Duy Hoa, Nguyen Nguyen Van Hao, Nguyen Duy Hoa, Nguyen QuocQuoc Hung, Vu Hung, Vu ThanhThanh,,Greg Greg ComanComan, Olivier Muller, , Olivier Muller, UweUwe Waller, Patrick Waller, Patrick SorgeloosSorgeloos, , RoelandRoeland WoutersWouters, ,

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Organic Aquaculture in Myanmar, Thailand and Organic Aquaculture in Myanmar, Thailand and MalaysiaMalaysia

DurationDurationLocationLocationEstimated total costsEstimated total costsFinancing from the Common Financing from the Common

FundFundCounterpart contributions inCounterpart contributions in

cash and in kindcash and in kindCoCo--financing (FAO/SIPPO)financing (FAO/SIPPO)Project Executing Agency (PEA)Project Executing Agency (PEA)Supervising BodySupervising Body

:: 36 months36 months

:: Union of Myanmar, Thailand and MalaysiaUnion of Myanmar, Thailand and Malaysia

:: US$ 1,401,875US$ 1,401,875

:: US$ 835,217US$ 835,217

:: US$ 432,783US$ 432,783

:: US$ 133,875US$ 133,875

:: INFOFISHINFOFISH

:: SubSub--Committee on Fish Trade of the FAO Committee on Fish Trade of the FAO Committee of Fisheries, as the designated Committee of Fisheries, as the designated International Commodity Body (ICB) for International Commodity Body (ICB) for Fishery ProductsFishery Products

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Organic Organic aquaculturalaquacultural productionproduction

AdvantagesAdvantagesMarket opener / competitive Market opener / competitive product product / price premium/ price premiumSteady buyer, coSteady buyer, co--operationoperationNatural production sitesNatural production sitesPositive imagePositive imageMarket trends in Europe Market trends in Europe

OpportunitiesOpportunitiesopportunities for smaller producers in rural areasopportunities for smaller producers in rural areasfavoursfavours “natural” production methods“natural” production methodscan often be applied in developing countries on can often be applied in developing countries on current production, but needs certificationcurrent production, but needs certification

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Coop 2005 Purchases of Organic ShrimpsCoop 2005 Purchases of Organic Shrimpsfrom State Owned Enterprise 184 and Camimexfrom State Owned Enterprise 184 and Camimex

Summary of Purchases 2002-2006

$271'500$460'570

$2'055'992

$2'793'829

$3'800'000

$0

$500'000

$1'000'000

$1'500'000

$2'000'000

$2'500'000

$3'000'000

$3'500'000

$4'000'000

2002 2003 2004 2005 2006

Eurogroup Far East Ltd – Gerhard Zurlutter – 06.01.2006

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© Osec Business Network Switzerland 2006

Ecological production

Social responsibility

Market Success

Sustainability Marketing

Customerneeds & wants

Market trends

MarketingMix

PPPP MarketingCustomer

CCCC

If you take the market seriously …If you take the market seriously …

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Population 496 Mio

Europe Facts & Europe Facts & FiguresFigures

Member states: 27

Population: 496 Mio.

Area total: 4‘325‘675

Official languages: 23

GDP 2006- Total: $13.3 trillion- Per capita: $28,100

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