summary slides: "mapping fishmeal supply chain in songkhla"

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Summary of Research “Mapping Shrimp Feed Supply Chain in Songkhla

Province to Facilitate Feed Dialogue” Submitted to Oxfam Thailand

30 July 2014 Lead Researcher: Sarinee Achavanuntakul

Research Team: James True, Srisakul Piromwarakorn

Prince of Songkhla University

Pattraporn Yamla-Or, Koranis Tanangsnakool, Sasiwimon Klongakkara

Sal Forest Ltd. : www.salforest.com

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Overview of fishmeal industry: Thailand

Catch Per Unit Effort from 1961 – 2010 (kilograms per hour)

Source: Boonwanich & Boonpakdee, 2009

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Overview of fishmeal industry: Thailand

Thailand’s fishmeal production and producers, 1987 - 2011

Source: Fishery Statistics Analysis and Research Group (DoF), 2013

Fishmeal production (tons) Number of fishmeal producers

Number of fishmeal producers Fishmeal production (tons)

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Overview of fishmeal industry: Songkhla

Fishmeal production trend has been fairly steady Songkhla is the second largest fishmeal producer

in 2011 (Dept. of Fisheries) and the fourth largest in 2013 (Thai Food Processors Association)

Currently there are 9 fishmeal producers in operation in Songkhla

Fishmeal price at Songkhla is among the cheapest compare to other provinces

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Average prices of fishmeal by province in 2011 (Baht per kilogram)

Source: Fishery Statistics Analysis and Research Group (FSARG), DoF, 2013

In 2011, Songkhla produced 39,402 tons of fishmeal or 12.03% of fishmeal produced in Thailand

Estimated Songkhla’s total fishmeal production in 2013 was 29,300 tons (from interviews with 8 of 9 fishmeal producers in Songkhla)

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Source: Fishery Statistics Analysis and Research Group (FSARG), DoF, 2013

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Impact of trash fish industry on ecosystem

Thailand has a strong market for trash fish, including non-target catch, under-sized and juvenile fish

Economic incentive has contributed to overfishing, especially juvenile fish, and the use of destructive gear, trawl and push nets, near shore areas

The declining CPUE has resulted in longer towing hours Prolonged trawling operation has increased a proportion of

trash fish since marine species trapped at mesh bottom obstruct juvenile fish from escaping.

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- Changes to community composition - Alterations of habitat structure and function - Ecological extinction; overfished populations no longer interact significantly with other species in the community - Affects the recruitment and biomass of marine species

Overfishing in the Gulf of Thailand has been reported since 1980

Inappropriate fishing gears; Small mesh size -> a large amount

of juvenile fish were trapped Destructive fishing gears -> CPUE

has rapidly declined

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Source: Department of Fisheries, 1986-2011

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Estimates of biomass from the pier at Songkhla

62% landed is trash fish, approximately 6.5 tons/vessel Estimated 25,000 tons/year of trash fish landed at Songkhla in 2013

ทีม่า: Field observation by research team, 2013

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Map of fishmeal supply chain in Songkhla

Source: Interviews and analysis by research team

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Fishmeal supply chain in Songkhla

Company % of

Traceability

Amount

(tons) Note

Betagro 100% 3,270 Buys 100% from a single fishmeal

producer that is 100% traceable

Krungthai 100% 600 Buys 100% from a single fishmeal

producer that is 100% traceable

CPF 81% 6,839

TFM 47% 972

Lee Pattana 36% 600

Animal feed mills based on fishmeal traceability

Source: Field interviews by research team, 2014

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Sources and the amount of raw materials used in Songkhla fishmeal production


Red items = trash fish usage

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Fishmeal supply chain in Songkhla (cont.)

Songkhla fishmeal production and fishmeal purchasers


Red items = trash fish usage

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Share of fishmeal produced

from whole fish (%) Share of fishmeal produced from

non-traceable whole fish (%)

CPF 24 16 Lee Pattana 19 29

Thaiunion Feedmill 19 29 Krungthai 1 0 Betagro 0 0

Other feed mills 7 0 brokers 19 18 farms 11 8 Total 100 100

Fishmeal produced from whole fish and fishmeal produced from non-traceable whole fish by purchasers

Source: calculated from interviews with 8 fishmeal producers in Songkhla

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Regulations and Standards: International level

6 most popular international standards and certified Thai companies (as of February, 2014)

IFFO RS CPF and T.C.

Union Agrotech are member

ASC

No Thai company certified under these standards

MSC

Thai companies that have plants certified

Global G.A.P. As of Feb 2014, only CPF is

certified. (Thaiunion and Krungthai certifications have

expired in 2013.)

Friend of the Sea Thai Spring Fish

BAP 29 processing plants

34 farms 8 hatcheries 6 feed mills

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Regulations and Standards: Thai fisheries law

Shortcomings of Thai Fisheries Act, 1947

Fishing area is not clearly identified

Inappropriate fishing gears and practices (e.g. small mesh size) are not illegal

Violators must be “caught in the act”

Draft of the new fisheries act

To effectively and efficiently respond to present fishing activities

Clearer demarcation of fishing grounds and defined authority to mandate type, number, size, and components of fishing gears should help make damaging practices illegal

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Regulations and Standards: IUU and Catch Certificate Scheme

Source: Prompoj, 2011

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Regulations and Standards: Fishmeal certificate scheme

Source: Department of Fisheries, 2013

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Fishmeal certificate scheme: Record

CPF was the only feed mill that submitted documents to Department of Fisheries for verification

There were 1,752 fishmeal certificates from 26 fishmeal producers during a period from 10 June – 31 December 2013

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Fishmeal certificate scheme: Record

Number of fishmeal certificate (submitted for verification), amount of materials, and amount of fishmeal by source of materials from 10 June – 31 December 2013

Source of materials Fishmeal

certificate

Amount of materials

(kg.)

Amount of

fishmeal (kg.) Wild-Caught 1,119 75,183,563 19,302,989

By-products from domestic

Surimi production 167 9,664,123 2,860,026

Imported by-products from

tuna production 292 17,005,650 4,974,515

Other by-products 171 9,289,366 2,542,671

Unidentified 3 - 44,640

Total 1,752 111,142,702 29,724,841 Source: Department of Fisheries, 2014

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Research Summary

Fishmeal industry creates impacts on ecosystem and local artisanal fishing community

It is the main market of trash fish, including under-sized and juvenile fish; therefore, supports the continued existence of destructive fishing conducts

In 2011, Songkhla was Thailand’s second largest fishmeal producer, the largest of the South, and accounted for 12.03% of country’s total fishmeal production.

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Research Summary

In 2013, 8 of 9 fishmeal producers in Songkhla produced 28,509 tons of fishmeal in total

100,215 tons of raw materials >> trimmings 79,965 tons (80%), whole fish 20,250 tons (20%), of which 5,760 tons were trash fish landed in Songkhla

66% (18,814 tons) of fishmeal were sold to large feed mills, namely CPF 45%, Betagro 17%, Thaiunion Feedmill 11%

1,527 tons of fishmeal produced from trash fish were sold to CPF 575 tons or 37.6% (300 tons of which were traceable) Farms 300 tons or 19.7% (all were traceable) Brokers 652 tons or 42.7% (all were traceable)

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Research Summary Fishmeal certificate scheme

CPF is the only feed mill participating in the scheme Nothing can assure full traceability, not possible to check the correctness of the document content or actual fishing conducts There is still a market for fishmeal produced from trash fish

Case study: Sustainable fishing in Peru The need for standards that encompass all players as well as a combination of laws and industry involvement and self-regulation The need to utilize science-based data and technology to ensure sustainability and effective enforcement The clearer the business case for sustainability, the more incentives players have to comply with sustainability laws/standards/schemes

Thank you!

Summary report can be downloaded from

www.salforest.com

page “Knowledge”

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summary slides: "mapping fishmeal supply chain in songkhla"

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