Seafood Sustainability

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• Seafood Sustainability
• Trends, Market Drivers,
• and Opportunities

John Connelly President
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Seafood Sustainability Topics

• Who is NFI
• What are the status of stocks
• What are the perceived status of stocks
• Why the difference between reality and perception
  matters
• Industry responses Wal-Mart case study
• Future challenges

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National Fisheries InstituteWho We Are

• Voice for seafood community in Washington, with
  the media, and in the marketplace
• Represent industry from water to table
• Represent most domestic industry and importers
• Committed to sustainable use of resources
• Work closely with Petur Bjarnson through ICFA

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Relationships Among Key IssuesWhere We Spend our
Resources(by discipline)
Legislative Regulatory Communications
Health benefits Low
High High Aquaculture Low
Medium High Trade issues High
Low High Access to resources
High Low High Economic integrity
Low High Medium
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Data and Trends in the U.S. Market Status of
Stocks, Consumption TrendsandThe Good News
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Seafood SustainabilityStatus of Global Stocks
Stable supply of 80 M MT wild capture fisheries
since 1986
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Seafood SustainabilityStatus of U.S. Stocks
Overexploited stocks stabilizing since early 1990s
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Seafood SustainabilityVariability in Regions
Stocks
Variability in management regimes leads to
variability in successful stock management
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Fish ConsumptionWhat Others are Saying

• American Heart Association We recommend eating
  fish (particularly fatty fish) at least two times
  a week.  Fish is a good source of protein and
  doesnt have the high saturated fat that fatty
  meat products do.  Fatty fish like mackerel, lake
  trout, herring, sardines, albacore tuna and
  salmon are high in two kinds of omega-3 fatty
  acids, eicosapentaenoic acid (EPA) and
  docosahexaenoic acid (DHA).
• American Dietetic Association Fish provides a
  good source of the fatty acid omega-3, which can
  help reduce the risk of heart attacks. Fish is
  also a great source of protein, zinc and iron and
  has less saturated fat, which can increase blood
  cholesterol. The current FDA recommendation is to
  eat up to 12 ounces a week.

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Fish ConmsumptionWhat Others Are Saying
U.S. government policy Americans should eat
fish twice per week
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What Fish Americans EatTop Ten Seafoods
2004 Shrimp 4.2 Canned Tuna 3.3 Salmon
2.2 Pollock 1.27 Catfish 1.09 Tilapia
0.69 Crab 0.62 Cod 0.60 Clams 0.47 Flatfish
0.39
2003 Shrimp 4.0 Canned Tuna 3.4 Salmon
2.2 Pollock 1.71 Catfish 1.14 Cod 0.64 Crab
0.61 Tilapia 0.54 Clams 0.53 Scallops 0/33
2002 Shrimp 3.7 Canned Tuna 3.1 Salmon
2.0 Pollock 1.13 Catfish 1.10 Cod 0.66 Crab
0.57 Clams 0.53 Tilapia 0.40 Flatfish 0.32
2001 Shrimp 3.4 Canned Tuna 2.9 Salmon
2.0 Pollock 1.21 Catfish 1.15 Cod
0.47 Clams 0.47 Crabs 0.44 Flatfish
0.39 Tilapia 0.35

   
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• Data and Trends in the U.S. Market
  Consumption TrendsandThe Bad News

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Seafood SustainabilityCreation of Perceptions
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Total Negative Seafood CoverageNumber of Clips
by Year
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• So what ---
• I dont need to be loved
• I just need people to eat
  seafood.

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• Data and Trends in the U.S. Market Consumer
  Attitudes

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Familiarity Overview
100
Positive seafood messages generally have solid
levels of awareness. Negative seafood messages
generally have much lower levels of awareness.
0
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Believability Overview
100
Positive seafood messages have high levels of
believability. Negative seafood messages have
levels of believability just as high as the
positive messages.
0
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Impact Overview
100
Negative seafood messages have levels of
potential impact on seafood consumption just as
high as the positive messages.
0
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Corporate Image Challenges Seafood as Part
of Broader Campaign
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Where is Weakness in This Chain?Where Would You
Attack?
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Seafood SustainabilityWal-Marts Challenge An
Example
Wal-Marts goals is to site 1,500 new stores in
the United States.
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Seafood SustainabilityWal-Mart Actions

• Third party certified farmed shrimp
• Third party certified wild capture products
• Logo on certified products
• Suppliers work with fisheries on long term
  fisheries
• Suppliers work with WWF and CI on challenged
  fisheries
• Work long term on selling only certified fish

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Seafood SustainabilityCertification Schemes
Some More Credible than Others
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Seafood SustainabilityCertification Schemes

• Report of the Expert Consultation on the
  Development of International Guidelines for
  Ecolabelling of Fish and Fishery Products from
  Marine Capture Fisheries
• Requirements, criteria and procedures for
  ecolabelling of fish and fishery products from
  marine capture fisheries
• Three principal procedural and institutional
  matters
• setting of certification standards
• accreditation of independent certifying bodies
• certification that a fishery and the product
  chain of custody

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Seafood SustainabilityWal-Mart Commitments
Can Wal-Mart Sustain a Softer Edge?February 8,
2006 Page A2 You have to wonder what the late
Sam Walton would have thought if he had seen this
Wal-Mart vows to sell only sustainable fish
recent headline ". Sustainable fish? Get real.
Whole Foods, the upscale retailer, sells
"sustainable fish." Wal-Mart, the cost-chopping
company Sam Walton created a half-century ago,
sells cheap fish. How else can they offer salmon
for less than 5 a pound? But after spending
some time with Wal-Mart Chief Executive Lee Scott
on Monday, I came away convinced there's more
going on here than just public relations. Mr.
Scott drives a Lexus hybrid, he touts products
that reduce greenhouse gases, and he really
believes in sustainable fish. The company has
decided that the fresh fish it sells in North
America -- excluding farmed fish -- will carry
certification labels from the nonprofit Marine
Stewardship Council, a conservation group that
works to prevent the seas from being overfished.
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Seafood SustainabilityWal-Mart Actions Helping
Accelerate Market Action
5 billion sales 1,271 restaurants
67 billion sales 250,000 employees Industrial
restaurants/cafeterias
24 billion sales 400,000 employees Industrial
restaurants/cafeterias
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• Data and Trends in the U.S. Market Challenges
  in Capacity

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Status of Fisheries CertificationTop Ten
Seafoods Stages of Certification
2004 Shrimp Canned Tuna Salmon Pollock
Catfish Tilapia Crab Cod Clams
Flatfish
Wild Capture ______________________________ ____
__________________________
MSC (Alaska) MSC (Alaska) __________________
____ (Russia) n/a n/a ________________________
____ WWF and Conservation International
____________________________ ___________________
_________
Aquaculture ACC n/a FMI SQL (Chilean
salmon) ___________(Norwegian salmon) n/a _____
______________________ __________________________
_ n/a n/a n/a n/a

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Seafood SustainabilityMSC Certified Fisheries
Certified Alaska salmon (214,000,000
salmon) Alaska pollock (1,200,000 mt) New
Zealand hoki (200,000 mt)
South African hake (166,000 mt) Pacific
longline cod W. Australia rock lobster (12,000
mt) Burry Inlet cockles (7,000 mt) Patagonia
toothfish (4,000 mt) South Mackerel handline
(2,000 mt) Baja red rocklobster (1,000 mt)
Loch Torridon Nephrops creel (150 mt) Thames
River herring (120 mt)
Undergoing or May Consider Certification Lobster
(North America) Pollock (Russian) Flounder
(Pacific) Whiting (Pacific) Ocean perch
(Canada) Snow crab (Alaska) Dungeness
crab Halibut (Alaska) King crab
(Alaska) Tuna Pink shrimp (Oregon)
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Seafood SustainabilityConclusions

• The seafood community has a unique and healthy
  product that the public feels good about.
• Industry and government have failed to adequately
  communicate the state of stocks, leading others
  to fill the void.
• Retailers and restaurants must protect their
  reputation . and brand.
• Seafood certification systems will grow in
  importance.
• Seafood suppliers must decide commitment to those
  customers demanding certifications.
• Seafood suppliers must decide which certification
  system is best for them.

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• Takk fyrir
• John Connelly
• jconnelly_at_nfi.org
• 1-703-752-8881