AQUACULTURE AND TRADE

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(No Transcript)
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Aquaculture - world trends, opportunities for
developing countries, technical and financial
constraints

• UNCTAD, Geneva, October 25, 2005
• Dr. Audun Lem, FAO

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Outline

• World trends in
• fish supply
• fish trade
• Aquaculture development in developing countries
• technical constraints
• financial constraints
• market constraints

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World Fish Supply (Production)
FISHSTAT 2005
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World fish supply 2003 (2002)

• Catches 90 (93) million tons
• Aquaculture 42 (40) million tons
• Total 133 (133) million tons

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World fish supply growing role of China
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Per capita food fish supply (kg)
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Fisheries production (1998 - 2003)
Million tonnes
110
100
Total capture
90
(World)
80
Total capture
70
(World without China)
60
Total aquaculture
50
(World)
40
30
Total aquaculture
(World without China)
20
10
0
98
99
00
01
02
03
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World capture fisheries productionnow stabilised
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Marine and inland fisheries top 10 producers
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Marine species- top 10 -
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World aquaculture production growing
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Aquaculture production, inland and marine
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Aquaculture by species
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Aquaculture production by environment
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Aquaculture production by country(excl. plants)

• China 29.0 million tonnes (68 )
• India 2.2 ( 5 )
• Indonesia 1.0 ( 2 )
• Viet Nam 0.9 ( 2 )
• Japan 0.9 ( 2 )
• Bangladesh 0.9 ( 2 )
• Thailand 0.8
• Norway 0.6
• Chile 0.6
• Egypt 0.4
• Total world 42.3 million tonnes

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Aquaculture production by country(excl. plants)
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Aquaculture production by region(excl.plants)

• Africa 0.5 mill. t. (1) US 1 bill. (2)
• N.Amer. 1 (2) 2 (3)
• S.Amer. 1 (2) 4 (6)
• Asia 38 (90) 49 (80)
• Europe 2.2 (4 ) 5 (8)
• TOTAL 42.3 mill.t US 61 bill.

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Aquaculture production by region(excl.plants)
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Trends in world fish trade
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WORLD FISH EXPORTS US 63 BILLION (2003)

• TRADE IS GROWING
• 2003 8.5
• 2004 6.3 (prelim.)
• DEVELOPING COUNTRIES 50 OF WORLD FISH EXPORTS
• NET FISH EXPORT REVENUES CRUCIAL FOR MANY
  DEVELOPING COUNTRIES (US 18 bill. )

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Net exports from commodities
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World fish exports - in 1000 US -
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Imports and exports of fish and fishery products
China
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Main exporters 2003 (value)
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Main species exported in 2003 (value)
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Share of fishery products destined for exports
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Fish Importers (2003)

• Japan US 12.4 bill. (18.4)
• US US 11.6 bill. (17.3)
• EU US 26.2 bill (39.0)
• Total big 3 US 50.2 bill (74.7 )

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Fish trade deficit/surplus by region
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Fish trade deficit/surplus by region
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Fish and the WTO

• 148 members
• All major fishery countries are members
• except
• Russian Federation (2006?)
• Viet Nam (2006?)
• WTO Agreements regulate all trade between members
• Fish not covered by AofA

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Fish and trade

• Tariffs 4.5 for fish to developed countries,
  but problems of tariff peaks and escalation
• Non-tariff barriers
• quality-safety related
• importance of SPS/TBT agreements
• Doha negotiations
• Fishery subsidies
• Tariffs (trade liberalization)
• Sectoral proposal for fish

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Aquaculture

• Aquaculture has an important role in food fish
  supplies important growth
• But growth not homogeneous
• Stagnation in Europe and Oceania
• Rapid growth in Latin America
• Slow growth in Sub - Saharan Africa

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Aquaculture issues and challenges

• How to create an enabling environment for
  aquaculture development?

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Creating the enabling environment

• Policy, institutional and legal environment
• Technology
• Product quality, safety and trade
• Information
• Finance

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Policy, institutional and legal environment

• historically rural production with limited
  investment, limited environmental impact
• increased focus on environmental/social impact
• experience negative impact linked to weak
  regulatory frameworks

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Policy, institutional and legal environment

• Polices/practices that ensure environmental,
  social and economic sustainability
• FAO CCRF, Art. 9. on Aquaculture development
• FAO Technical Guidelines
• FAO COFI-AQ
• Aquaculture in 3rd Millennium (2000 conf.)
• institutional capacity building
• national aquaculture policy
• national lead agency for co-ordination
• specific aquaculture legislation, ideally in one
  law, encouraging investment, including user
  rights for farmers to sites, water etc
• involve all stakeholders public sector,
  education, RD, private sector, NGOs, consumers,
  etc
• mechanisms for collection and reporting of data

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Technology

• Traditional
• integrated production
• pond fertilization to increase feed availability
• Modern
• better feed conversion factors
• juveniles - hatcheries
• growth rates/selection of breeders/disease
  resistance
• disease management medicine/antibiotics/vaccines
• holding systems equipment, cage design

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Product quality, safety and trade

• quality/safety
• more stringent import requirements
• increasing domestic requirements also in
  developing countries
• urban population growth, rural production need
  for better domestic distribution systems
• adding value through quality and safety

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labeling/certification mainly consumer/retail
driven

• some producer operated schemes GAA
• eco-labels on marine products (FAO guidelines)
  future aquaculture
• organic aquaculture by definition
• lack of international standards
• standards being developed in US and EU
• certified production worldwide 50-100,000 t.
  (plus traditional production)
• strong growth
• keen interest among retailers, esp. shrimp (Asia,
  S.America)
• FAO-INFOFISH organic conference 2004
• INFOFISH projects in Asia (CFC)

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Information problems

• lack of data on trade no distinction wild/farmed
• lack of data rural/small-scale aquaculture
• lack of data on social/environmental impact in
  rural areas
• need good data for informed decision making at
  policy level
• markets
• technology
• finance allocation

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Financial constraints

• private sector finance commercial banks
• rural development finance agricultural/sectoral
  banks
• depends on regulatory and institutional framework
• not particular to aquaculture or fisheries
• overall business-friendly environment is
  important
• co-ordinated institutional support
• inclusion in national plans and priorities
• constraint credit to small-scale/rural farmers
• role of NGOs, micro-credit

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Experience

• to yield max. results
• effective co-ordination/cooperation to address
  needs at local levels
• strengthen institutions and access to funding
• improve information exchange and communication
  capacity
• private sector funding is key
• public sector
• niche funding
• role in capacity building and institutional
  development

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Finally, the market

• Market access for aquaculture products
• import tariffs are low
• Uruguay Round, EBA, ACP-EU etc.
• quality/safety based requirements
• legitimate but real obstacle
• some problems in aquaculture with residues

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Conclusions

• Aquaculture
• strong historic growth
• growing share of fish supply
• but growth is slowing down
• production concentrated in Asia
• limited albeit growing aquaculture development in
  SSA, South America

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Recommendations

• institutional capacity building at natl. level
• formulation of national aquaculture policy
• national lead agency for co-ordination
• specific legislation encouraging investment,
  trade, including user rights for farmers to
  sites, water etc
• involve all stakeholders public sector,
  education, RD, private sector, NGOs, consumers,
  etc

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Future

• capture fisheries stable but with limited
  potential
• crucial role of aquaculture to achieve food
  security
• Some encouraging signs
• growing awareness of sectors role, e.g. NEPAD
  (Fish for all Hidden harvests- Unlocking
  Aquaculture Potential in Africa)
• increased national focus on aquaculture
  development, incl. SSA
• technological improvements

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THANK YOU FOR YOUR ATTENTION