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)
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)
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
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!
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
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
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