Fish in the global food supply chain

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Fish in the global food supply chain

• Grímur Valdimarsson, Director
• Fish Products and Industry Division
• Food and Agriculture Organization
• of the United Nations,Rome

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• Production and consumption
• The business side of fisheries and aquaculture
• Globalization and some side effects
• The classics of ineffective fisheries management
• The new wholesomeness paradigm of food

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Utilization supply World (19512005)
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Contribution to food
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World fish consumptioncompared with meat
FAO Stat and Fish Stat 2005
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The business side of fisheries and aquaculture
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BIG GROWING gt Attractive to Investors
The Seafood Industry Value Chain
Estimated Total Value 400 billion
Source Davidsson, K. 2007 (Glitnir Bank and FAO)

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Value Chain revenue distribution
FAO study
Glitnir
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Retail prices on selected food products and
retail price index in UK
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How are developing countries doing in value
addition?

• FAO survey 6000 branded seafood products in
  Italy and France
• Only 10 originated in developing countries
  mostly canned fish
• Very low share of prepared seafood meals

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FAO/OECD workshop...

• Clear commitment to environmental certification
• Governments moving too slowly
• Free trade arrangements under threat by the rise
  of private standards

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Government vs the private sector?
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Objectives of government sector
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Objectives of private sector
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Corporate Social Responsibility
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At the FAO/OECD workshop Peter Redmond from
Wal-Mart said...

• Sustainable sourcing matters for Wal-Mart
  because
• It entails a continued license to for the company
  to grow
• - It is the right thing to do

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Quentin Clark, Waitrose Sustainability too
important to be left to the market
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More classical fishery problems ineffective
management of capture fisheries
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• Catch limits not set
• Open /semi open access still prevails
• Ineffective regulatory approach

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• Addressing the real problem
• Assign legally secure fishing rights to the
  people in the fisheries sector

May 2005
May 2005
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Facing our Alternatives

• The FAO Secretariat has moved, beyond a doubt,
  on the matter of whether fishing rights are good
  or not. They are absolutely necessary and
  fundamental to the sustainability of the worlds
  fisheries resources.
• Nomura, 2006

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Aquaculture Processing Marketing
Capture

• Sophisticated quality and logistics
  management

• Ineffective regulatory regimes
• Uncontrolled

- Just-in-time supplies - ISO standards - HACCP -
GHP/GMP - Traceability
Data poor
Data rich
Consumer
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Safety of fishery products wholesomeness
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Fish safety regimes

• Preventive HACCP has been a sucess
• Risk assessment separated from risk management
• Primary responsibility rest with food business
• Competent authorities of states function well
• Still too much end product sampling
• More harmonization of standards needed
• Still too many standards that are not science
  based

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Wholesomeness Codex request for risk-benefits
analysis for fish consumption. Terms of reference

• Assessment of the health risks associated with
  the consumption of seafood and other seafood
• Assessment of the health benefits of fish and
  other seafood consumption
• Comparison of the health risks and health
  benefits of fish and other seafood consumption.
• to develop a methodology and identify the data
  necessary for carrying out quantitative
  assessments of risks and benefits related to fish
  and other seafood consumption.

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2006
..the study results confirm the validity of the
recommendations formulated by various national
scientific bodies that the general population
should consume fish at least twice a week,
including some oily fish, and that pregnant or
breast feeding women should consume predator fish
not more than once a week
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Healthy diet and healthy food in the Netherlands
2006

• Inadequate diet 13.000 deaths
• Food-borne infections 20-200 deaths

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Conclusions

• The business side of fisheries underestimated
• Environmental concerns are real and will be
  pursued
• Poor / inefficient fisheries management could
  mean lost business
• Globalization calls for more harmonization of
  standards
• The wholesomeness paradigm very important for
  the seafood sector

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Thank you