CFC/INFOFISH/FAO “ORGANIC” AQUACULTURE PROJECT

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

2. Worldfish supply SUPPLYssuproduction

3. Per caput food supply

4. Main fish exporters 2008 (value)

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

6. 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

7. 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

8. TRENDS IN GLOBAL ORGANIC FOOD MARKET

9. 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 ON GLOBAL ORGANIC FOOD PRODUCTION

10. 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

11. 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”.

12. 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

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

14. 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%

15. Trial Production of Organic Tilapia Malaysia : Cage culture in TasikKenyir, Terengganu Myanmar: Pond culture

16. Cage culture in TasikKenyir,Malaysia • Initial culture was focused on chemical-free fish

17. 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

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

19. 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

20. 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

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

22. Organic poly-culture Organic barb Organically grown pangasius OPPORTUNITIES

23. Malaysia : Price Premium for Chemical – free at Farm Gate (INFOFISH , 2009)

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

25. 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

26. 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 ?