CFC/INFOFISH/FAO “ORGANIC” AQUACULTURE PROJECT INFOFISH/FAO/CFC

World fish supply SUPPLYssuproduction Million t 2008 2009 2010e 2010/ Capture 90 (0.1%) Farmed 53 54 56 3.1% Total 142 144 145 1.1% One sees how the world fish production is still growing, but only thanks to aquaculture. Growth rate is falling, but this is natural since the base is increasing

Per caput food supply Kg/year 2008 2009 2010 2010/09 Food fish 17.1 0.2% Capture 9.3 9.2 9.1 -1.3% Farmed 7.8 7.9 8.1 1.9% One sees how the contribution of aquaculture towards food fish consumption is increasing. Aquaculture is heading towards parity with capture fisheries in the contribution towards food fish consumption (= feed fisheries excluded), although the growth rate is decreasing.

Main fish exporters 2008 (value) The main single exporter is now China, having overtaken Norway and Thailand a few years back. Norway is also a large exporter as are the US and Canada. The rising role of Viet Nam as a producer and exporter is noteworthy. Taiwan is declining. If the EU is considered one group, its exports are also large even though much of what is exported from one EU country is imported by another EU neighbour. Role of aq exports: China, Norway, Thailand, Viet Nam but many other products as well

WORLD TRADE IN AQUACULTURE PRODUCTS DATA ? STATISTICS DO NOT DISTINGUISH BY ORIGIN FAO PROJECT 2011 ESTIMATES BY SPECIES AND BY COUNTRIES

ORGANIC PROJECT Aim: Pilot production and marketing of organic seafood Species: tilapia, black tiger shrimp Malaysia, Myanmar, Thailand Total project USD 1.4 Million CFC grant USD 835,000 INFOFISH: project executing agency FAO: supervisory body www.organicfishery.net

Market survey The project conducted market surveys in Asia, North America and Europe Market potential for certified organic better in East Asia compared to western markets during 2008-2009 Consumer demand in Asia good for chemical-free fish With this feed-back , trial production and marketing of chemical-free tilapia began in Malaysia

TRENDS IN GLOBAL ORGANIC FOOD MARKET 8

ESTIMATES ON GLOBAL ORGANIC FOOD PRODUCTION GLOBAL ORGANIC PRODUCTION AREA : 35 million hectares in 2008 (0.70% of world agriculture land) GLOBAL AQUACULTURE (food fish) PRODUCTION : 50 331 239 tons (2007) ORGANIC FISHERIES PRODUCTION : 53 000 - 55 000 tons (0.10 % of world aquaculture production ) 9

ORGANIC SEAFOOD MARKET ESTIMATES …… GLOBAL ORGANIC FOOD MARKET. Organic Food and Beverage: US$ 50 billion in 2008 USA : US$ 20 billion EU : > US$ 20 billion Japan: < US$ 1 billion China : US$ 4 billion Malaysia: US$ 25 million Singapore: US$ 25 million ORGANIC SEAFOOD MARKET US$ 300 - 400 million at distributor level US$ 800 - 900 million at retail level 10

ASIA-PACIFIC ORGANIC FOOD MARKET : Organic food and beverage consumption in Asia/Pacific is higher than the global average (AC Nielson, ) The leading markets identified: China, Taiwan, South Korea, Singapore, Thailand, Malaysia Salmon and cod only organic seafood one could find in SE Asian markets ------- except in China Marketers and consumers say-----”organic fishery products are unavailable to them”.

ORGANIC MARKET IN CHINA -2009 Organic food market was worth US$ 3-5 billion Certified organic fishery production totalled over 16 000 MT in 2007 This was equivalent to only 0.1% of the total aquaculture production in 2007 Nearly all organic fishery products entered the domestic market

Organic Seafood Survey in SE Asia Medium & High-end supermarkets Five star Hotels Fine dinning & restaurants

Global Production of Organic Fishery Products Europe : 24 500 tons Asia : 19 000 tons Americas: 7 000 tons Africa: 2 000 tons Australia & NZ: < 1 000 tons Salmon : 30% (16 000 tons ) Trout : 36% Sea bream / Sea bass :7% Carp :10% Shrimp: 18% (8 800 tons ) Tilapia : 2% Pangasius: 2%

Trial Production of Organic Tilapia Malaysia : Cage culture in Tasik Kenyir, Terengganu Myanmar: Pond culture

Cage culture in Tasik Kenyir, Malaysia Initial culture was focused on chemical-free fish

Test Marketing ‘-Organically’ farmed tilapia enters the ‘live fish ’ retail trade (supermarket) in Kuala Lumpur for the first time -Local organic shops start marketing whole dressed fish and fillet through selected outlets -Consumer feed back was good, but regular supply has been a constraint ; demand increased after the trial marketing -, Tilapia price at farm gate and retail level increased for such fish over the last two years

MYANMAR Initial farming was targeted for the organic freshwater machrobrachium or freshwater prawn The poly-culture system later offered opportunities for organic tilapia

MYANMAR A potential Asian buyer visited the farming site Taste test was done And she liked the “organic prawn and tilapia ‘ And the ‘organically grown ‘ pangasius

MYANMAR Poly-culture (freshwater prawn and tilapia Farm-made certified feed was used to produce organic tilapia and prawn The farm followed organic aquaculture procedures The ‘Organic Tilapia ‘ received OAPC certification from Thailand

Finally ORGANIC TILAPIA and F/W Prawn were exported for Malaysia and Singapore markets

OPPORTUNITIES Organic poly-culture Organic barb Organically grown pangasius

Malaysia : Price Premium for Chemical – free at Farm Gate Pangasius catfish : 35% Tilapia : 36% B/tiger Shrimp : 30-40% (INFOFISH , 2009)

Higher value of fresh/chilled fish will continue to associated with the quality certification labels

Economic recession has slowed down growth in western organic markets Economic recession has slowed down growth in western organic markets . Naturland reported that only 36% of shrimp was marketed (in Europe/USA) as organic---due to supply-demand imbalance and too much market dependence on these markets In comparison , organic finfish ( salmon , bream , pangasius, sea bass and sea bream) market was less effected . Organic salmon and cod imported into East Asian markets In Asia , wild caught fish currently fill the place of organic fish due to lack of supply / inadequate supplies from local sources . Once available --- organic and chemical –free fishery products , particularly fin-fish species - will benefit significantly from the ‘ready’ domestic and regional markets . Environmental issues and aquaculture : Organic aquaculture able to weather issues such as ‘carbon labeling’ in the production cycle

CONCLUSIONS Organic seafood: small but growing sector Demand hurt by limited supply range Organic feed a constraint Over-dependence on Europe Strong regional demand in Asia Small-scale potential: clusters Synergies with fair-trade/social labels Potential:1% of food fish=1,100,000 tons ?