CFCINFOFISHFAO ORGANIC AQUACULTURE PROJECT INFOFISHFAOCFC World fish supply

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

World fish supply SUPPLYssuproduction Million t 2008 2009 2010 e Capture 90 90 90 2010/ 2009 (0. 1%) Farmed 53 54 56 3. 1% Total 142 144 145 1. 1% 2

Per caput food supply Kg/year 2008 2009 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% 3

Main fish exporters 2008 (value) 4

• 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

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 )

ESTIMATES …… GLOBAL ORGANIC FOOD MARKET. Organic Food and Beverage: US$ 50 billion in 2008 USA : EU : Japan: China : US$ 20 billion > US$ 20 billion < US$ 1 billion 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

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 n Salmon : 30% (16 000 tons ) n Trout : 36% n Sea bream / Sea bass : 7% n Carp : 10% n Shrimp: 18% (8 800 n Tilapia : 2% n Pangasius: 2% tons )

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. 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 ?