FINAL SYNTHESIS REPORT WITH PRO-POOR TRADE RESEARCH
FINDINGS AND POLICY RECOMMENDATIONS
SEPTEMBER 2005
The International Seafood Trade: Supporting Sustainable Livelihoods Among Poor
Aquatic Resource Users in Asia (EC Prep Project EP/RO3/R14)
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This report is Output 3, and a synthesis report, of the project “International
Seafood Trade: Supporting Sustainable Livelihoods Among Poor Aquatic Resource Users in Asia (EP/R03/014)”. The project was implemented by
Poseidon Aquatic Resource Management Ltd (UK), the Network of
Aquaculture Centres in Asia-Pacific (NACA) and the STREAM Initiative,
in partnership with stakeholders in the seafood and marine ornamental fish trade in Asia and Europe. The project ran from October 2003 to September 2005.
This research project is one of 23 projects funded by EC-PREP, a
programme of research sponsored by the UK Department for International Development. All EC-PREP research studies relate to one or more of the six focal areas of EC‟s development policy in the context of their link to poverty eradication. EC-PREP produces findings and policy
recommendations which aim to contribute to improving the effectiveness of the EC‟s development assistance. For more information about EC-PREP
and any of the other research studies produced under the programme, please visit the website www.ec-prep.org.
The report should be referenced as: Macfadyen, G., Phillips, M, Haylor,
G., 2005. International Seafood Trade: Supporting Sustainable Livelihoods Among Poor Aquatic Resource Users in Asia (EP/R03/014). Output 3 Synthesis Report with Pro-Poor Trade Research Findings and Policy
recommendations. Poseidon Aquatic Resource Management Ltd, Network
of Aquaculture Centres in Asia-Pacific (NACA), and the STREAM
Initiative.
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TABLE OF CONTENTS
1 Introduction and Background ............................................................................. 6 2 Methods............................................................................................................. 8 2.1 Introduction ............................................................................................... 8
2.2 Methodology for Output 1 Background/Overview Report .......................... 8
2.3 Methodology for Output 2 Field-Based Investigations................................ 8 2.3.1 Team building and planning workshop ............................................... 8 2.3.2 Framework for understanding market chains and influences ............. 10
2.3.3 Tools for understanding market chains and influences ...................... 12
2.3.4 Case study locations ......................................................................... 12 2.3.5 Consultation and communication...................................................... 12 2.3.6 Anthropological inputs ..................................................................... 12 3 Synthesis of Output 1 report ............................................................................ 13 3.1 Overview of the importance of the fisheries sector, and trade in fisheries
products, for the poor........................................................................................... 13 3.2 Trade in shrimp ........................................................................................ 14 3.2.1 Global Trade .................................................................................... 14 3.2.2 EU Trade.......................................................................................... 14 3.2.3 UK Trade ......................................................................................... 15 3.2.4 BeNeLux Trade ................................................................................ 17 3.3 Trade in ornamentals ................................................................................ 19 3.3.1 Global Trade .................................................................................... 19 3.3.2 EU Trade.......................................................................................... 19 3.3.3 UK Trade ......................................................................................... 20 3.3.4 French Trade .................................................................................... 22 3.4 Policy context .......................................................................................... 23
3.4.1 Policies and commitments aimed at alleviating poverty .................... 23
3.4.2 Trade frameworks and policy ........................................................... 25 3.5 Certification and related trade activities aimed at poverty reduction ......... 28
3.5.1 Different initiatives and their potential impacts................................. 28 3.5.2 The potential for social certification ................................................. 31 4 Market chains, poor stakeholders, and the influence of trade, in Asia ............... 37 4.1 Introduction ............................................................................................. 37 4.2 Vietnam ................................................................................................... 37 4.2.1 Market chain and stakeholders.......................................................... 37 4.2.2 Poor stakeholders and their livelihoods ............................................. 39 4.2.3 Influence of trade on livelihoods of poor stakeholders ...................... 40
4.3 General description of ornamental supply chain ....................................... 434.4 Indonesia ................................................................................................. 46 4.4.1 Market chain and stakeholders.......................................................... 46 4.4.2 Poor stakeholders and their livelihoods ............................................. 46 4.4.3 Influence of trade on livelihoods of poor stakeholders ...................... 48 4.5 Philippines ............................................................................................... 51 4.5.1 Market chain and stakeholders.......................................................... 51 4.5.2 Poor stakeholders and their livelihoods ............................................. 55 4.5.3 Influence of trade on the livelihoods of poor stakeholders ................ 57
5 Key research findings ...................................................................................... 58 5.1 Key general research findings on fisheries trade and poverty .................... 58 5.2 Key findings relating to pro-poor trade options ........................................ 59 6 Key Policy Recommendations ......................................................................... 63
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TABLE OF TABLES
Table 1: Case study teams ......................................................................................... 9 Table 2: Case study locations .................................................................................. 12
Table 3: Imports of Warm Water Shrimps into EU countries, 2001.......................... 14
Table 4: Imports of Penaeus into the UK, 2001 ........................................................ 15 Table 5: Imports of shrimp (Penaeus) into BeNeLux, 2001 ..................................... 18
Table 6: Stakeholders in shrimp sector in Vietnam .................................................. 37 Table 7: Example of price structure through ornamental supply chain ..................... 45
Table 8: Income from Ornamental Fish Collection and related activities in Indonesia
........................................................................................................................ 48 Table 9: Philippines ornamental commodity chain price analysis ............................. 53
TABLE OF FIGURES
Figure 1: Value of „Penaeus‟ imports from principal supplying countries into the UK
........................................................................................................................ 16 Figure 2: Value of „Penaeus‟ imports from principal supplying countries into the UK
........................................................................................................................ 18 Figure 3: Exports of marine ornamental fish from The Philippines and Indonesia,
1992-2001 ....................................................................................................... 20 Figure 4: Market chain for shrimp in Thua Thien Hue, Vietnam .............................. 38 Figure 5: Schematic of flow of ornamental fish trade in Philippines, from collectors to
exporters .......................................................................................................... 52
Figure 6: „Freighting Nemo’ - from Mindanao to Manchester .................................. 54
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ACRONYMS
AKKII Indonesian coral shell and Ornamental Fish Association APEC Asia-Pacific Economic Cooperation ASEAN Association of Southeast Asian Nations ASEM Asia-Europe Meeting
BIP Border Inspection Posts
CCRF Code of Conduct for Responsible Fisheries CIF Carriage, Insurance and Freight
CITES Convention on International Trade in Endangered Species of Wild Fauna and
Flora
CSR Corporate Social Responsibility
DFID UK Government, Department for International Development EC European Commission
EC-PREP European Community's Poverty Reduction Effectiveness Programme
EJF Environmental Justice Foundation
ESAF Enhanced Structural Adjustment Facility EU European Union
FAO Food and Agriculture Organisation of the United Nations FOB Free on board
GATT General Agreement on Tariffs and Trade GDP Gross Domestic Product
GE General Exception List
GSP Generalised System of Preference
Ha Hectares
HACCP Hazard Analysis Critical Control Point IL Inclusion List
ILP Import Licensing Procedures
IMF International Monetary Fund
(I)PRSP (Interim) Poverty Reduction Strategy Paper ISO International Organisation for Standardisation MEA Multilateral Environmental Agreements MFN Most Favoured Nation
NACA Network of Aquaculture Centres in Asia-Pacific NTM Non-tariff Measure
OATA Ornamental Aquatic Trade Association PTFEA Philippines Troplical Fish Exporters Association RTA Regional Trade Agreement
SCM Subsidies and Countervailing Measures SCM Subsidies and Countervailing Measures SL Sensitive List
SPS Sanitary and Phytosanitary Measures STREAM Support to Regional Aquatic Resources Management TBT Technical Barriers to Trade
TEL Temporary Exclusion List
UK United Kingdom
UNEP United Nations Environment Programme WSSD World Summit on Sustainable Development WTO World Trade Organisation
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1 Introduction and Background
The global export value of fisheries products has grown significantly in recent years in response to consumption trends, and is currently around ? 60 billion a year.
Developing countries are increasingly important suppliers of fisheries products, with the EU a major importer, consuming 63% of internationally traded seafood from developing countries. This trade has significant implications for the livelihoods of poor people in Asia, where fisheries and fisheries products provide food and income for some of the poorest and most marginalized people in the region.
The European Community's Poverty Reduction Effectiveness Programme (EC-PREP) is a programme of research to enhance collaboration between the European Commission and the UK Department for International Development (DFID). Its main objective is to enhance the poverty impact of the European Community‟s development assistance and contribute to achieving the International Development Target of halving the number of people living in extreme poverty by 2015.
This report has been prepared by Poseidon Aquatic Resource Management Ltd / Network of Aquaculture Centres in Asia-Pacific (NACA) / Support to Regional 1Aquatic Resources Management (STREAM) Initiative, and represents Output 3 of an
EC-PREP Project (EP/R03/014) funded by DFID and entitled “The International
Seafood Trade: supporting sustainable livelihoods among poor aquatic resource users in Asia”. The project focused specifically on exports to the EU of shrimp from Vietnam (especially to the UK, and BeNeLux countries), and of marine ornamental species from Philippines and Indonesia (especially to the UK and France), and
possible pro-poor trade mechanisms related to this trade.
The purpose of the project was to investigate international trade in fisheries products and its relationship to poverty alleviation and livelihoods of poor aquatic resource users in developing countries in Asia, and to identify options to improve the effectiveness of poverty reduction through international seafood trade. The project directly addressed the EC-PREP priority area of trade and development, and indirectly provided valuable insight to two other priority areas: food security and sustainable rural development; and institutional capacity building.
This report (Output 3) follows other reports previously produced by the project.
Output 1 (December 2003) took the form of a background overview report based on a literature review and interviews with supply chains in the EU. The overview included: (i) a description of seafood market supply chains and trade volumes; (ii) the policy and institutional contexts relating to trade and poverty reduction, at global, regional and national levels, and their implications for poverty reduction; (iii) ongoing trade initiatives aimed at poverty reduction; and (iv) some initial ideas about pro-poor trade initiatives to be explored by the project.
Output 2 (August 2005) reported the findings of field-based case studies in Vietnam, Indonesia and the Philippines conducted over the course of 2004 which (i) mapped the market chain and identified stakeholders; (ii) identified poor stakeholders and
1 www.consult-poseidon.com / www.enaca.org / www.streaminitiative.org
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analyzed their livelihoods; (iii) provided understanding of the influence of trade on the livelihoods of poor people in the market chain; and (iv) identified pro-poor options for trade in aquatic animals and plants.
Output 3 provides a synthesis report and combines the key findings of the overview report and the field-based investigations, to draw together key research findings and policy recommendations.
Project Outputs can be obtained in CD version from either Poseidon or NACA (see websites for contact details), and are also available on the organizations‟ respective websites. The CDs also contain a) planning workshop reports, b) information on selected participatory tools used for the livelihood analyses, and c) trade media monitoring reports that have been collected during the course of the project.
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2 Methods
2.1 Introduction
Given that the contents of this synthesis report are based on Outputs 1 and 2 of the project, a short description of the methodology used to generate these two previous Outputs is pertinent.
2.2 Methodology for Output 1 Background/Overview Report
The project began in September 2003, with Output 1 produced in December 2003 and based on work done primarily in Europe. A literature review and web-search was conducted, and data sources consulted, to obtain background information on: seafood market supply chains and trade volumes; policy and institutional contexts relating to trade and poverty reduction, at global, regional and national levels, and their implications for poverty reduction; and ongoing trade initiatives aimed at poverty reduction.
This literature review was further supported by telephone and face-to-face interviews, and in some cases the use of written postal questionnaires, in the UK, France and 2BeNeLux countries with key operators in the supply chain i.e. importers, and fish buyers for retailers and food service companies. These interviews and questionnaires provided additional information on market supply chains, key issues of concern for those involved relating to regulatory frameworks for trade, and their initial ideas about the feasibility of ongoing and potential pro-poor trade initiatives.
The research team contacted institutions and organisations involved with ongoing trade initiatives aimed at poverty reduction described in the Output 1 report. Initial contact was also made during work on Output 1 with key exporting associations in Indonesia, Philippines and Vietnam, as well as with representative trade organizations in Europe.
2.3 Methodology for Output 2 Field-Based Investigations
Case studies were conducted in three countries over the course of 2004:
; Indonesia
; Philippines, and
; Vietnam
The detailed methodology is provided in the individual country case study reports (Output 2), and the following provides an overview of the main aspects of the methodology. The following process was followed for each case study. 2.3.1 Team building and planning workshop
National teams were formed for each case study, coordinated by the STREAM Communications Hub Manager in each country. The teams were drawn from government, NGOs and national research agencies with experience in aquatic resources, trade and livelihoods, and included both men and women (Table 2).
2 Belgium, the Netherlands, and Luxembourg
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Table 1: Case study teams
Case study country National team members
Indonesia Two local NGOs: - Yayasan Palu Hijau (YPH) for the Sulawesi Case Study; and Yayasan Bahtera Nusantara (YBN) for the Bali/Java Case Study
Key project implementing personnel:
- Ir Samliok Ndobe M.Si as Team Leader for the YPH Sulawesi Study, assisted by Abigail Moore MSc and Drs Akhdary Dj Supu
- Arsonetri as Team Leader for the YBN Bali/Java Study, assisted by Indrawati
- Aniza Suspita S.Pi from STREAM Indonesia as
Indonesia Co-ordinator responsible for communication with the regional STREAM-NACA office on the
progress and implementation of the study
Philippines Monica Picquero, MAC - Region 7 Community
Organizing, Reuben C. Ranay BFAR 7- Director's Office
Training Coordinator, Josephine Savaris Program Officer for CRM, Local Gov., Agrarian Reform PhilDHRRA (Visayas region), Elizabeth M Gonzales Communications Hub Manager STREAM PHIL, Meddy dela Torre Training Coordinator Guian Foundation Region 8, Isabelle Cruz Philippine Program Assistant MAC – Manila
Vietnam Four provincial teams conducted the studies, involving participants from government and mass organizations such as the Women‟s Union:
- Ca Mau team (Mr Nguyễn Thông Nhận (team leader),
DOFI, Mr Phan Văn Út, DOFI, Ms Hồng Thị Kiều Nga,
FEC and Ms Cao Thị Như, FEC)
- Quang Tri team (Mr Nguyễn Thanh Tùng, FEC
Director, team leader, Mr Trần Quốc Tuấn, FEC, Ms
Trương Thị Quyết, FEC and Ms Nguyễn Thị Hạnh, Trieu
An Commune Women‟s Union, Trieu Phong District)
- Nghe An (Mr Cao Bá Hiền, Fisheries Extension Centre, Mr Trần Đăng Tuấn, DOFI, Mr Nguyễn Đại Điện,
Quỳnh Lộc commune.
- Thua Thien Hue (Ms Võ Thị Tuyết Hồng, Team leader,
DOFI, Ms Văn Thị Thu Vinh, FEC, Mr Hồ Giáp,
Chairman of Phu Da Commune Farmers‟ Association,
Mr Huỳnh Công Trai, Viễn Trình village headman, Phú Đa commune
The case study was coordinated by a team from Research Institute for Aquaculture in Hanoi (Mr Trần Văn
Nhuờng, Mr Trần Long Phượng, Ms Trần Thị Ánh
Nguyệt and Ms Bùi Thị Thu Hà) and STREAM
communications hub in Vietnam (Mr Nguyễn Song Hà
and Ms Nguyễn Thị Minh)
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A planning and orientation workshop was held at the start of each case study, including the national study team and resource persons from NACA and STREAM, to:
; Understand socio-economic, trade/market and livelihoods issues of interest to
poor people whose livelihoods include aquatic resources management.
; Review and develop the survey methods, including statistical and qualitative
research methods.
; Become familiar with resources and tools to support market chain and
livelihoods analysis (e.g., semi-structured approaches using questionnaires and
interviews)
; Experience the use of participatory tools for market chain and livelihoods
analysis, and
; Develop detailed workplans for the case studies.
The participants in each workshop built shared understandings of “livelihoods” and associated terms, by considering questions such as:
; What do you mean by “livelihoods”?
; What are “livelihoods approaches”?
; What is “livelihoods analysis”?
The workshops also clarified the roles of different team members, and considered how they would work together.
2.3.2 Framework for understanding market chains and influences
The cases studies followed a similar process and framework for market chain and livelihoods analysis that was further developed and modified for each country during the planning workshops. A six-step process for market chain and livelihoods analysis evolved, and during each workshop, there was a day of fieldwork to try out the six-step process and tools.
Step 1: Stakeholder Identification
In each case study area, the study team selected villages or communes as starting points for the study. With support of local participants, the study team identified and diagramed stakeholders involved in the market chain and people in the villages or communes related with, or positively and negatively affected by, the market chain (e.g., fishermen, rice farmers).
Step 2: Preparation for Stakeholder Investigation and Understanding
For each of the stakeholder groups, the study team collected as much secondary information as possible on status and characteristics and identified what further information needed to be collected to understand each ones place in the chain. A second line of questioning ask about how poor people link in the chain and how are they involved? By what criteria are they poor? How do we do the wealth ranking of those groups?
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