The ASEAN Seafood Magazine - Aug 2014 by Bakohynt

Vol 01 Issue 01 {1} Jul/Aug 2014

Published by the Viet Nam Association of Seafood Exporters and Producers (Vasep)

Website: http//aseanseafood.org Editorial Board Editor – in – Chief Dr. Nguyen Huu Dzung Deputy Editor – in – Chief Nguyen Hong Viet Editor Thai Thanh Phuong Marketing/Advertising Assistant Nguyen Thi Tuoi E-mail: nguyentuoi@vasep.com.vn Tel: +84 0975040983 Editor Assistants Hang Van, Le Quyen Phuong Thao, Ngoc Tu Art Direction Nguyen Minh Tuan Collaborator Le Bao Ngoc

Head Office 10 Nguyen Cong Hoan, Ba Dinh, Hanoi, Vietnam Tel: +84-4 37716175/22174188 Fax: +84-4 37710738 E.mail: aseanseafood@vasep.com.vn Rep. in Ho Chi Minh City Doan Tran Duy 218 Lot A, Nguyen Quy Canh Street, An Phu An Khanh New, Uban Area, District 2, Ho Chi Minh City Tel: +84 08.62810430/28 +84 905 803179 Email: tranduy@vasep.com.vn Cover photo: Viet Anh Manh Fishing in Inle Lake, Myanmar

Publication licence No 47/GP-XBDS granted on April 11, 2014 by the Ministry of Information and Communication of the Socialist Republic of Viet Nam. No part of this magazine may be reproduced without the written permission of the Viet Nam Association of Seafood Exporters and Producers. All right reserved copyright 2014 VASEP

2 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

Events: 04 - The Malaysia International Seafood Exposition 2014 and Aquaculture & Trade Conference 10 - The fisheries in the Southeast Asia 14 - Vietfish 2014: The rendezvous of Vietnamese seafood producers with global partners and customers 17 - Public Private Cooperation for Fisheries Improvement in the Philippines 18- The 2nd Sunset Review for pangasius 21 - US signs Sustainable Fisheries Accord with Southeast Asian Nations 22 - Ten Asia-Pacific countries protest US Catfish Program

Markets and Exports: 30 - Shrimp exports to Australia rapidly grow 33 - Impacts of diseases and antidumping duties on large shrimp suppliers to the US 36 - Export target tough task for tuna industry

Your Partners: 42 - Hoang Long Seafood: Aquaculture feed for high-quality raw fish 44 - CPF to post strong gains in 2014 47 - Ba Hai Co., Ltd asserts the aquatic brand of the central coastal region 50 - Australis barramundi ranked a “Best Choice” for sustainability 53 - Bidifisco: Augmenting the value of Vietnamese tuna

Business Feature: 58 - Challenges and opportunities in utilization of fisheries by-products

Fishing: 63 - Vietnamese tuna industry boosting value chain collaboration

66 - FAO supports to develop hybrid boat for Typhoon Haiyan-affected fisherfolk 68 - Brunei wants more joint ventures in fishing

Aquaculture: 73- Thailand: Shrimp farmers divided on 2014 production outlook 74 - AquaFIS â&#x20AC;&#x201C; Mobile extension services to improve aquaculture farming in ASEAN 76- Using cameras, 3G, and smartphones to grow fish 78- The Philippines pushes sweet potato as protein-rich aquaculture feed

Regional Cooperation: 82 - Philippines, Indonesia to sign agreement on seaweeds

Sustainable Development: 84 - Sustainable fisheries development in the central coastal region of Viet Nam

ASEAN Fisheries: 86 - Indonesia: The world leading shrimp and tuna producer and exporter 89 - The export market potential for Myanmarâ&#x20AC;&#x2122;s seafood bounty 92 - The Philippines: A large seafood producer in the globe

A day in The Life: 96 - South East Asia grilled mixed seafood with herbs

ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 3

Events

Participants attending the Malaysia International Seafood Exposition 2014 opening ceremony

The Malaysia International Seafood Exposition 2014 and Aquaculture & Trade Conference The 3rd Malaysia International Seafood Exposition (MISE 2014), the unique of its kind in the country, was held again at the Putra World Trade Centre in Kuala Lumpur from June 19-21, 2014. With more than 70 local and foreign exhibitors and 150 booths, the exposition is an opportunity to learn how extensive the industry is and what products are available for consumers. By Thanh Phuong

4 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

sia contributed 67 percent of the global food fish production with leading producers being China, India, Viet Nam, Indonesia, Bangladesh and Thailand. Malaysia is one of the countries that consume large quantity of fish. The country fish consumption hits 50 kilograms per person per year and is expected to rise to 58 kilograms per person in 2014. According to Agriculture and Agro-based Industry Minister Datuk Seri Ismail Sabri Yaakob, the country produced 1.74 million MT of fish valued at RM10.6 billion (US$3.3 billion) last year. The total value of fish and fish products traded was RM5.9 billion (US$1.84 billion). Fish production

contributed 1.3 percent to the national gross domestic product (GDP) and 12.5 percent to the agriculture GDP. To sustain the people’s fishbased food demand, Malaysia is expected to expand its fish production to two million MT by the year 2020 and the focus will be on aquaculture activities, which are accounting for only 20 percent of the total fish production “So far, we have achieved 20 per cent. So, the remaining 30 per cent can be achieved if all quarters cooperate in efforts to empower the aquaculture industry in the country,” the minister said.

The exposition MISE 2014, a continuation of the MISE 2011, was held by the

Malaysian Fisheries Development Authority (LKIM) and INFOFISH with the support of the Ministry of Agriculture and Agro-based Industry (MOA). According to LKIM Chairman Irmohizam Ibrahim, the exposition aims to promote Malaysian fisheries products to the international market, promote investment opportunities in the fisheries sector to investors from within and outside the country, and expand the relationships among producers, researchers and international investors. It also seeks to present Malaysia as a country that encourages the development of the fisheries industry, especially aquaculture, and as the destination of the conference and exposition exhibitions. Irmohizam Ibrahim said this third edition of MISE featured a fishery products exhibition, cooking demonstrations, product sampling, and a conference entitled â&#x20AC;&#x153;Ensuring the future through sustainabilityâ&#x20AC;?. The trade fair was attended by many local industry players, including QLFood Sdn. Bhd, Golden Fresh Sdn. Bhd, Blue Archipelago Bhd, and Trapia Sdn. Bhd. Relevant authorities, universities, banks, associations (Nekmat, MFFAM), and certification bodies (Jakim, SIRIM Berhard) also participated in the expo. The presence of international exhibitors was small but diversified with 18 companies/associations/ trade promotion authorities from 12 countries, mostly Asian ones (China, Thailand, Indonesia, Pakistan, Maldives, etc.) The exhibition space was just large enough to accommodate 50 standard booths (3mx3m) and 20

MISE 2014 was held at Putra World Trade Centre in Kuala Lumpur, Malaysia

Agriculture and Agro-based Industry Minister Datuk Seri Ismail Sabri Yaakob was visiting a booth at the fair

pavilions. However, it is well-lit and set out. The displayed seafood items varied from fish, shrimp, lobster, seaweed, cucumber to caviar, fish meal, and feed. Most of them were value-added and

processed products, i.e. breaded, dried, canned, smoked, crackers, paste, etc. Some cosmetic and pharmaceutical products from fish and cucumber also appeared at the exhibition. ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 5

Events Some equipment providers also brought to the exposition frying/skinning machines, freezers, seaweed growing devices, cage construction materials, insulated containers, and so forth. Still, a majority of the seafood products showcased at the exhibition are intended for local markets. They come in small and bright-coloured package and some are labeled in Malay only.

Aquaculture and Trade Conference The two-day conference themed “Ensuring the Future through Sustainability” was held concurrently with the trade fair. A total of 27 presentations touching on various aspects of aquaculture and seafood trade were delivered. In his speech, Dr Derun Yuan, Programme Manager of

Education and Training, Network of Aquaculture Centre in Asia – Pacific (NACA), noted that the world population is projected to increase to 9.5 billion people by 2050. Satisfying the expected food and feed demand will require a substantial increase of global food production of 70 percent by 2050, including 35-40 million MT of fish. Asia-Pacific is the most important region of aquaculture production with total output of 73 million MT, valued at US$ 110 billion in 2009. Technology is vital to sustain the growth of aquaculture and choice of farming systems includes enhanced capture fisheries, multiple use of resources – polyculture, rice-fish culture, closed recirculation system, closed system with minimal or zero water exchange, biofloc, cage in pond, and aquaponics.

Breaded shrimp and squid products under Pacific West brand of the Malaysia-based Golden Fresh Sdn. Bhd

6 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

Ms Shirlene MariaAnthonysamy with Trade Promotion Division of INFOFISH, highlighted that global fish production increased to 167 million MT in 2012; aquaculture supplied 47 percent of food fish to the world population compared to 45 percent in 2008. The top seven producers, i.e. China, India, Viet Nam Indonesia, Thailand, Norway and Bangladesh accounting for nearly 82 percent of the total global farmed fishery production. She added that freshwater fishery comprised nearly 61 percent of the world aquaculture, dominated by carps, pangasius, catfish, and tilapia. However, production of marine and brackish water species such as salmon, grouper, barramundi, snapper, shrimp and crab is also increasing. As for crustaceans, INFOFISH Chief Trade Promotion Division Fatima Ferdouse pointed out that global shrimp production has increased significantly over the past decade reaching close to 7.5 million MT in 2012. Nearly 60 percent of the supply came from the aquaculture sector at 4.5 million MT, with increasing dominance of P. vannamei in Asian shrimp production. Asia contributed 80 percent towards global shrimp production at 3.5 million MT with China, Thailand, Viet Nam, Indonesia and India being the top five producers. Latin America’s share was 12.5 percent at 572,000 MT with Ecuador, Mexico and Brazil as the leading producers. However, shrimp production declined sharply in 2013 following the Early Mortality Syndrome (EMS) outbreak in Asia and Latin America. Increased production in Indonesia, Viet Nam and India could not offset the large short fall

in Thailand, China, and Malaysia. Consequently, shrimp prices remained record high worldwide till early this year and affected consumption in the traditional developed markets - Japan, the US and the EU. Meanwhile, supply decrease in East and Southeast Asia prompted strong inter-regional and intra-regional imports for domestic consumption and export processing. “Beginning of the year, there was a positive forecast on new season’s supply. However, till June, supplies have not improved much in Thailand and China. Production in India is not too high either!” she said. Shrimp prices in the international trade weakened since late March after staying firm for more than a year. Unlike last year, the main market the US moved away from India to Ecuador and Indonesia for shell-on shrimp and raw peeled shrimp, which pushed market prices down to two-year low. US retail price was 12 percent higher in May this year, affecting retail and catering trade. Darden group was forced to sell the famous Red Lobster Restaurant. Meanwhile, the yen continues to restrict Japanese imports where import price increased by 30 percent since 2013. There has been no real growth in demand in the EU market. Nevertheless, higher imports persisted in Southeast Asia and in China. Addressing particularly the killer disease of EMS, Dr Daniel Gruenberg, CEO of Acquestra (Thailand) Co. Ltd brought up some misconceptions and shed light on the very root cause of the disease outbreak. He proposed genetics in general and inbreeding specifically

Fresh marine fishes showcased at Malaysian GST Group’s standard booth at the fair

as a key cofounding factor early on in the EMS outbreak. Despite much resistance from the shrimp farming community, this hypothesis is gaining a strong scientific support in field situations. Post-larvae from well designed and managed breeding programs are found to be immune to EMS while inbred ones, despite their cost-saving potentials, actually cause huge loses and create a long-term risk for further devastation from future outbreaks. The common methods of ‘disinfecting’ ponds prior to stocking by liming or chlorinating are proving to create conditions favourable to the growth of V parahaemolyticus – EMS causative agent. PH manipulation is helpless, too. Molasses/probiotics worked

for a while but not now. Tilapia, bioflocs, and vibrio-free Artemia seem to have an effect but the first is not practical while the second is difficult to manage. Apart from the overall reports, the conference also included individual presentations on aquaculture in Bangladesh, India, Indonesia, Malaysia, Philippines, Thailand, and Viet Nam. Some trade-related issues such as food safety requirements of the US and EU and certification benchmarking progresses were also addressed in a separate session. Hundreds of participants attended the conference, which ran from June 19-20, 2014. T.P

ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 7

Events

The Malaysia International Seafood Exposition 2014 Fresh marine fishes showcased at Malaysian GST Groupâ&#x20AC;&#x2122;s standard booth at the fair

Breaded shrimp and squid products under Pacific West brand of the Malaysia-based Golden Fresh Sdn. Bhd

8 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

A cooking demonstration for visitors

A Malaysian exhibitor was advertising shrimp paste products

Various local products out for display at the Malaysian Ministry of Agriculture and Agro-Based Industryâ&#x20AC;&#x2122;s pavilion

Caviar from Italy

Product sampling at Malaysian QL Foods Sdn Bhd

Indonesian ready-to-eat products

ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 9

Events

A soft-shell crab farm in Myanmar

The fisheries in the Southeast Asia With an exception of Laos, almost members of the Association of Southeast Asian Nations (ASEAN) - i.e. Brunei Darussalam, Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Viet Nam - are coastal countries. The ASEAN countries all enjoy preferable conditions for development of both fishery and aquaculture. Fish, fishing, and fisheries - the various products, the trade, and the industry - all benefit the people and economies of the ASEAN nations in a variety of ways. And it is likely that the role of fisheries in providing livelihoods, trade, and food security in the Southeast Asian region will far continue to grow. By Hoang Thanh of global production (126 mil. MT). Their contribution increased to 20.4 million MT (14.9 percent of global 136.8 mil. MT) in 2005, and 26.6 million MT in 2011, representing 17.07 percent of global 155.8 million MT. The total world fish production in 2012 was 158 million MT, of which 119 million MT came from Asia. The total fish production of the ASEAN countries was 27.8 million MT in that year, representing 17.6 percent of

Global major producers of fish and fish products

Combined, the 10 ASEAN countries account for one-fifth of the annual global fisheries production. In the recent years, the total fishing and aquaculture production of the region has continuously increased both in the quantity and the global fisheries production share. In 2000, ASEAN members together produced 16.05 million MT of fish, occupying 12.7 percent

Table 1. World fisheries production, million MT

global production. Some of these countries are among the worldâ&#x20AC;&#x2122;s major fish producers. Indonesia was the third-largest fish producer in the world in 2012 (8,881,460 MT), followed by Viet Nam (5,707,700 MT), and Myanmar (4,464,419 MT). The Philippines and Thailand each produce more than 3 million MT annually. China and India are number one and two in the world, respectively.

Giant seafood exporters of the world

(Production of aquatic plants and mammals are excluded; All data presented are subject to rounding)

2000 World ASEAN (%)

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

126.0 125.4 127.8 127.2 134.7 136.8 137.6 140.8 143.1 145.9 148.2 155.8 158.0 16.0 16.7 17.5 18.5 19.6 20.4 21.4 22.5 23.2 24.2 25.7 26.6 27.8 12.74 13.33 13.66 14.51 14.52 14.90 15.59 15.98 16.21 16.61 17.33 17.07 17.60

10 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

(Production of aquatic plants and mammals are excluded; All data presented are subject to rounding)

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

World

126.0 125.4 127.8 127.2 134.7 136.8 137.6 140.8 143.1 145.9 148.2 155.8 158.0 21.4 22.5 23.2 24.2 25.7 26.6 27.8 (Production of aquatic plants and mammals are excluded; All data presented are subject to rounding) (%) 12.74 13.66 14.51 2004 14.52 2005 14.90 2006 15.59 2007 15.98 2008 16.21 2009 16.61 2010 17.33 2011 17.07 2012 17.60 2000 13.33 2001 2002 2003 Table 1. World ASEAN 16.0 fisheries 16.7 production, 17.5 18.5million 19.6 MT20.4 World ASEAN (%)

126.0 16.0 12.74

125.4 16.7 13.33

127.8 17.5 13.66

127.2 18.5 14.51

134.7 19.6 14.52

136.8 20.4 14.90

137.6 21.4 15.59

140.8 22.5 15.98

143.1 23.2 16.21

145.9 148.2 155.8 158.0 Nam 26.6 are two 24.2Viet25.7 27.8of the world’s 16.61 17.33 17.07 of17.60 major exporters seafood, which are

Fig1. World World fisheries fisheries production, production, 2000-2012 2000-2012 Fig1.

Figure 2. Fisheries production of ASEAN countries, 2000-2012, MT

Figure 2. Fisheries production of ASEAN countries, 2000-2012, MT (cont’)

Fish and marine products are particular. In 2012, about 37 percent of among the most traded goods globally, with demand and supply global fish production entered both growing substantially since international marketing channels, the last decades. Fisheries products creating US$129.2 billion of export Figure 2. Fisheries production of ASEAN countries, 2000-2012, MT (cont’) account for 22 percent of global value. Developing countries play a trade in agricultural commodities major role in such exports, with the compared to 17 percent for meat top ten exporters accounting for 77 and this share is rising. Trade in percent of the developing country fish represents a significant source total by value. Being big fish and fisheries of foreign currency earnings in Table 2. Marine capture product producers, Thailand and Asia in general, and in ASEAN in

ranked respectively at the third and fourth place in the list of global top ten largest fish exporters, after China and Norway. Many developing countries have now become net exporters of fish, rather than net importers, a trend most evident in the Southeast Asian region. Viet Nam in particular earned a trade surplus of US$5.46 billion in 2012, Thailand - US$4.97 billion, and Indonesia - US$3.24 billion. The region’s seafood export growth was driven by increased demand from Europe, the United States, Japan, and most of developed countries. Viet Nam’s seafood is in demand as exports dramatically grew by 422 percent, from US$1.48 billion in 2000 to US$6.28 billion in 2012. The United States is fast rising as a major importer of Viet Nam’s seafood. A worthy of note, however, is that between 2000 and 2012 the fisheries export value of ASEAN’s countries increased only 231 percent from US$8.7 to US$20.6 billion, which was the same rank of growing speed of world’s export value (235 percent), and lower the growth of Asia’s export (263 percent). The failure to grasp a proper internal management policy and non-tariff barriers (food safety regulations, quality standards, and leveling requirements) in the international markets are believed to be major factors affecting regional trade. Of these exports, the ASEAN’s members dominate the world market with main commodities (by value), such as shrimps and prawns, tuna, frozen fish and pangasius fillets (Viet Nam). Shrimp and prawns are the most important seafood items by value,

- 20 major producer countries Country China Indonesia United States of America Peru

2012(MT) 13869604 5420247 5107559 4807923

Share (%) 17.40 6.80 6.41 6.03

ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 11

Thailand Malaysia Mexico Iceland Morocco Spain Taiwan World Total

Events

Country

2012(MT)

China Indonesia United States of America Peru Russian Federation Japan India Chile Viet Nam Myanmar Norway Philippines Korea, Republic of Thailand Malaysia Mexico Iceland Morocco Spain Taiwan World Total

13869604 5420247 5107559 4807923 4068850 3611384 3402405 2572881 2418700 2332790 2149802 2127046 1660165 1612073 1472239 1467790 1449452 1158474 924018 907573 79705910

Share (%) 17.40 6.80 6.41 6.03 5.10 4.53 4.27 3.23 3.03 2.93 2.70 2.67 2.08 2.02 1.85 1.84 1.82 1.45 1.16 1.14 100

China India Myanmar Bangladesh Cambodia Uganda Indonesia Tanzania, United Rep. of Nigeria Brazil Russian Federation Egypt Thailand Congo, Dem. Rep. of the Viet Nam Philippines Kenya Malawi Pakistan Mexico World Total

Table 3. Inland waters capture

(MT) 41108306 4209415 3085500 3067660 1726066 1321119 1233877 1071421 1017738 885169 790894 707461 633047 484404 420024 321853 296575 283780 264160 212805 66633253

2012 (MT) 2297839 1460456 1246460 957095 449000 407638 393553 314945 312009 266042 262548 240039 222500 214000 203500 195804 148216 120328 120240 107619 11630320

Country

Share (%) 19.76 12.56 10.72 8.23 3.86 3.50 3.38 2.71 2.68 2.29 2.26 2.06 1.91 1.84 1.75 1.68 1.27 1.03 1.03 0.93 100

Country China India Viet Nam Indonesia Bangladesh Norway Thailand Chile Egypt Myanmar Philippines Brazil Japan Korea, RO USA Ecuador Iran Malaysia Spain Turkey World Total

Table 4. Aquaculture

1.84 1.75 1.68 1.27 1.03 1.03 0.93 100

2012 (MT) 41108306 4209415 3085500 3067660 1726066 1321119 1233877 1071421 1017738 885169 790894 707461 633047 484404 420024 321853 296575 283780 264160 212805 66633253

Share 61.69 6.32 4.63 4.60 2.59 1.98 1.85 1.61 1.53 1.33 1.19 1.06 0.95 0.73 0.63 0.48 0.45 0.43 0.40 0.32 100.00

of many species, destructive Table 5. Seafood exports (ex. Aquatic plants and mammals fishing practices, and habitat 2000 2001 2002 2003 2004 2005 losses, which 55.22 are the main causes World 56.03 57.92 63.60 71.31 78.39 ofASIAdeclining levels of biodiversity 18.82 18.71 19.28 20.35 23.74 25.99 inASEANmarine environments. 8.71 8.63 8.63 Both 9.05 9.97 10.94 marine inland fisheries Asean/world and (%) 15.78 15.41 14.90should 14.23 13.98 13.95 Thailand 1233877 1.85 Asean/Asia (%) 46.29 harmful 46.14 44.75 be negatively due 44.47 to 41.99 42.07 Chile 1071421 1.61 Thailand 4.38 40.70 3.71 3.04 4.07 4.50 Development challenges unreasonable human activities, Egypt 1017738 1.53 Myanmar 885169 1.33 Viet Nam 1.48 1.81 2.04 2.20 2.45 2.76 such as agriculture and rural and solution Philippines 790894 1.19 Indonesia 1.57 1.52 1.48 1.54 1.69 1.79 Brazil 1.06 The importance 707461 of fisheries’ development; coastal industries, Japan 633047 0.95 future contributions to484404 livelihoods energy, shipping, and tourism Korea, RO 0.73 USA 420024 0.63 ,food security and regional development, all of which compete Ecuador 321853 0.48 Iran 296575 0.45 relationships in Southeast Asia for land and water use. Malaysia 283780 0.43 cannot be underestimated. Additionally, the open access Spain 264160 0.40 Turkey 212805 0.32 However, the global demand for the approach to natural resources 100.00 World Total 66633253 region’s fish produce continues to and small scale and householdrise and production increases will based character of the fishery obviously leadexports to overexploitation have made the industry defected, Table 5. Seafood (ex. Aquatic plants and mammals), billion US$ 2000 2001 2002 2003 2004 2005 2006 destructive 2007 2008 2009 2010 2011 2012 as using of fishing World 55.22 56.03 57.92 63.60 71.31 85.74 93.19 101.81 96.12 110.67 129.95 129.30 gears 78.39 or spreading IUU fishing. ASIA 18.82 18.71 19.28 20.35 23.74 25.99 28.72 30.89 34.24 Climate change has 34.52 become a41.43 50.15 51.33 ASEAN 8.71 8.63 8.63 9.05 9.97 10.94 12.37 13.55 15.92 14.83 17.18 20.13 20.61 new peril to the sustainability of Asean/world (%) 15.78 15.41 14.90 14.23 13.98 13.95 14.43 14.54 15.64 15.43 15.52 15.49 15.94 the fisheries. Fisheries, including Asean/Asia (%) 46.29 46.14 44.75 44.47 41.99 42.07 43.08 43.86 46.13 43.31 41.46 40.14 40.15 aquaculture, are threatened Thailand 4.38 40.70 3.71 3.04 4.07 4.50 5.26 5.71 6.53 6.24 by7.15 8.14 8.08 irregular fluctuations, Viet Nam 1.48 1.81 2.04 2.20 2.45 2.76 temperature 3.37 3.79 4.55 4.30 5.11 6.24 6.28 Indonesia 1.57 1.52 1.48 1.54 1.69 1.95 2.08 2.45 2.24 and2.56 3.18 3.59 and in1.79freshwater ecosystems, extreme disasters. Figure 3. Shrimp and prawn exports, billion US$ The sharp drop in capture production for Thailand after 10 years (–39 percent in the period 2003-2012) should be a noticeable example. Thailand’s catches have

61.69 6.32 4.63 4.60 2.59 1.98 1.85 1.61 1.53 1.33 1.19 1.06 0.95 0.73 0.63 0.48 0.45 0.43 0.40 0.32 100.00

Tuna fishing in General Santos City, Philippines

12 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

Table 5. Seafood exports (ex. Aquatic plants and mammals), billion US$ World

214000 203500 195804 148216 120328 120240 107619 11630320

Table 4. Aquaculture - 20 major producer countries

annual production, - 20 major producer countries however, 2012 for Viet pangasius fillets typically Country Share (MT) Nam of the most China have become one 41108306 61.69 India 4209415 6.32 popular seafood items, penetrating Viet Nam 3085500 4.63 Indonesia successfully more 3067660 on less 4.60 150 Bangladesh 1726066 2.59 markets worldwide. Norway 1321119 1.98

accounting in average 15-20 percent – 20 major producer countries 2012 Thailand, Share of global food fish exports. Country (MT) (%) ChinaNam, and Indonesia 2297839 19.76 Viet are always India 1460456 12.56 ranking in the list of world’s top Myanmar 1246460 10.72 Bangladesh 957095 8.23 shrimp and prawns suppliers, Cambodia 449000 3.86 after ASEAN’s UgandaChina. Combined, 407638 3.50 Indonesia 393553 3.38 suppliers satisfy around 40 percent Tanzania, United Rep. of 314945 2.71 2.68 ofNigeria consumer demand312009 every year, Brazil 266042 2.29 equal contribution of262548 China. 2.26 Russianto Federation Egypt 2.06 Indonesia and the240039 Philippines Thailand 222500 1.91 Congo, Rep. of themajor 214000 are theDem. country’s sources1.84 for Viet Nam 203500 1.75 tuna, after Taiwan and Korea, while Philippines 195804 1.68 Kenya 148216 1.27 Thailand is the leading producer of Malawi 120328 1.03 Pakistan tuna of the world. 120240 1.03 canned Viet Nam Mexico 107619 0.93 isWorld also Total more and more becoming100 an 11630320 important tuna supplier. Table 4. Aquaculture Although pangasius is not a - 20 major producer countries freshwater fish species2012 with highest Country

Congo, Dem. Rep. of the Viet Nam Philippines Kenya Malawi Pakistan Mexico World Total

2.02 1.85 1.84 1.82 1.45 1.16 1.14 100

Table 3. Inland waters capture – 20 major producer countries

Table 2. Marine capture - 20 major producer countries

China India Viet Nam Indonesia Bangladesh Norway Thailand Chile Egypt Myanmar Philippines Brazil Japan Korea, RO USA Ecuador Iran Malaysia Spain Turkey World Total

1612073 1472239 1467790 1449452 1158474 924018 907573 79705910

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

55.22

56.03

57.92

63.60

71.31

78.39

85.74

93.19

101.81

96.12

110.67

129.95

129.30

Malaysia

283780

0.43

0.32 2003 100.00 63.60

2004

2005

2006

2007

2008

2009

2010

2011

2012

71.31

78.39

85.74

93.19

101.81

96.12

110.67

129.95

129.30

Table Aquatic plants Spain 5. Seafood exports (ex. 264160 0.40 and mammals), billion US$ Turkey World Total World

55.22

212805 2002 66633253 56.03 57.92

ASIA

18.82

18.71

19.28

20.35

23.74

25.99

28.72

30.89

34.52

34.24

41.43

50.15

51.33

8.71

8.63

9.05

9.97

10.94

12.37

13.55

15.92

14.83

17.18

20.13

20.61

Table 5.(%) Seafood exports Aquatic mammals), billion US$ Asean/world 15.78 15.41 (ex. 14.90 14.23plants 13.98and13.95 14.43 14.54 15.64

15.43

15.52

15.49

15.94

2001 44.752002 44.472003 41.992004 42.07 200543.08 200643.86 2007 46.14 46.13 2008 43.31

2009 41.46

2010 40.14

2011 40.15

2012 129.30

ASEAN

Asean/Asia (%)

2000

2000 46.29

2001

World Thailand

55.22 4.38

56.03 40.70

57.92 3.71

63.60 4.0771.31 4.5078.39 5.26 85.74 5.71 93.196.53 101.81 3.04 6.24 96.127.15 110.67 8.14 129.95 8.08

Viet Nam ASIA

1.48 18.82

1.81 18.71

2.04 19.28

2.20 4.30 34.245.11 20.35 2.4523.74 2.7625.99 3.37 28.72 3.79 30.894.55 34.52

6.24 41.43

6.28 50.15

Indonesia ASEAN

1.57 8.71

1.528.63

1.488.63

1.549.05 1.69 9.97 1.7910.94 1.95 12.37 2.08 13.552.45 15.92 2.24 14.832.56

3.18 17.18

3.59 20.13

20.61

Asean/world (%)

15.78

15.41

14.90

14.23

13.98

13.95

14.43

14.54

15.64

15.43

15.52

15.49

15.94

Asean/Asia (%)

46.29

46.14

44.75

44.47

41.99

42.07

43.08

43.86

46.13

43.31

41.46

40.14

40.15

Thailand

4.38

40.70

3.71

3.04

4.07

4.50

5.26

5.71

6.53

6.24

7.15

8.14

8.08

Viet Nam

1.48

1.81

2.04

2.20

2.45

2.76

3.37

3.79

4.55

4.30

5.11

6.24

6.28

Indonesia

1.57

1.52

1.48

1.54

1.69

1.79

1.95

2.08

2.45

2.24

2.56

3.18

3.59

Figure 3. Shrimp and prawn exports, billion US$

fallen markedly owing to depletion of some marine resources by overfishing and environmental degradation in the Gulf of Thailand, and cessation of fishing operations Figure 3. Shrimp and prawn exports, billion US$ by Thai vessels in Indonesian waters since 2008. The risks and environmental impacts of some aquaculture practices have made headlines in recent years. The disease outbreaks in shrimp aquaculture in China, Thailand, and Viet Nam illustrate some of the industry’s challenges. Besides, the unfair competitions in the international market with trade technical barriers, i.e.

food safety regulations, quality standards, and anti-dumping and anti-subsidy petition, etc., have become harder obstacles by the way of sustainable development of ASEAN’s fisheries. One of the reasons leading to such shortcomings is the governance failure in the ASEAN’s fisheries. Generally, the institutional structures and mechanisms for fisheries management are either inadequate, inappropriately set up, or not in place at all. Fisheries administration is often shared by national government agencies, local government units, and local

References 1. FAO; FishStatJ 2. FAO; The State of World Fisheries and Aquaculture, 2014. 3. The Henry L. Stimson Center; Transnational Trends ; Middle Eastern and Asian Views - Fisheries in Southeast Asia: Challenges and Opportunities, 2008. 4. Fisheries in ASEAN; http://investasean.asean.org/index.php/page/view/fisheries

51.33

communities. In many cases, however, the central management policies are not well translated into proper interventions, practically applicable at the community level. Within the agricultural sector, comprising crops, fisheries, and livestock, the lowest priority is accorded to the fisheries, despite their growing share of output. Many efforts are required to overcome shortcomings and obstacles of the regional fisheries industry. Every government has their own duty of finding resolutions. However, the international and regional initiatives are of essential necessary to negotiate solutions to these challenges. In this context the regional economic integration offers a key opportunity. The leaders of ASEAN are committed to deepening and broadening its regional economic integration, with the participation of the private sector, in order to realize an ASEAN Economic Community by 2015. Fisheries were among the 12 priority sectors identified. A “roadmap” was developed to ensure the various measures to be implemented in a timely manner to create an integrated market and production base, paving the way to develop regional sustainable fisheries. H.T ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 13

Events

A panorama of Vietfish 2013

Vietfish 2014: The rendezvous of Vietnamese seafood producers with global partners and customers Experiencing 15 years of development, the Viet Nam Fisheries International Exhibition(Vietfish)hasbecome increasingly professional and internationally recognized, meeting the growing need of trade promotion of local and foreign businesses. The annual event is the largest convergence of Vietnamese leading seafood producers and processors with international partners and customers.

By Quoc Thanh & Tran Duy

14 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

Changing date for the first time As the Southeast Asiaâ&#x20AC;&#x2122;s largest seafood exhibition, the Viet Nam Fisheries International Exhibition (Vietfish) annually attracts about 200 local and global exhibiting companies with nearly 30,000 visitors. Its sixteenth edition (Vietfish 2014) marks the first time the exhibition is rescheduled from June to August. From 2014 onwards, August will be the new date of the exhibition. According to the Viet Nam Association of Seafood Exporters and Producers (VASEP) - the exhibition organizer, June is very close to the recurring date of the

worldâ&#x20AC;&#x2122;s major seafood shows such as the Seafood Expo North America (the US), Seafood Expo Global (Belgium), International Food and Beverage Exhibition (Foodex Japan), etc. Therefore, quite a few enterprises found it hard to attend Vietfish and insisted that the schedule is adjusted so they can have the opportunity to meet and discuss with partners and customers in the exhibition. As a result, Vietfish 2014 will officially open at 9 am on August 6, 2014, taking place during three days from August 6-8, 2014 at the Saigon Exhibition and Convention Center (SECC) - 799 Nguyen Van

Vietfish being known as a prestigious seafood exhibition with the world-class quality

Linh Avenue, District 7, Ho Chi Minh City.

A separate pavilion for the local market In addition to aiming at the international seafood market as ever, Vietfish 2014 innovates itself by setting up a nearly-100square-meter common pavilion for businesses to introduce and promote seafood products to domestic consumers. The establishment of the pavilion is proposed by the VASEPâ&#x20AC;&#x2122;s Domestic Product Club, which was founded in 2011 and now has 26 members working together to enhance the value and quality of products for local consumers. VASEP will offer the pavilion for free of charge, and businesses will incur related expenses such as the pavilion setup and product display. To attract visitors, the pavilion

A brochure of Vietfish 2014

ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 15

Events design will be striking and eyecatching with banners, posters, trees, decorative lights, etc. while products will be arranged for both display and retail. Besides, the pavilion will have an area exclusively for consumers to get product samples. There will be also promotion programs for bulk buying. With this way, businesses can promote products to the home market directly and effectively, whereas consumers can buy good products and know prestigious enterprises with quality products in the supermarket system. The retail sales from the pavilion are expected to covering part of participation expenses and thereby providing the means for small businesses to attend the exhibition.

A promising fisheries exhibition Vietfish is considered an annual momentous event of the Vietnamese seafood industry, being home to local and global seafood companies aspiring to find new customers, strengthen the relationship with current partners, evaluate market trends and consumer tastes, introduce the latest strategic products and build up their image. Until the present, 127 enterprises have registered with 207 stands at Vietfish 2014. The seafood sector has 137 enterprises with 98 stands and 13 sponsoring enterprises (2 platinum and 11 gold), and the service sector has 71 enterprises with 109 stands and 6 sponsoring enterprises (4 gold and 2 silver). To promote Vietfish 2014 and raise the number of exhibition visitors, the organizer has invited international seafood organizations 16 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

Visitors seeing seafood products at Vietfish 2013

and magazines such as Thaifex, Food Industry Magazine (Singapore), Asian Aquaculture Network, Feed & Fish, etc. to partake in the exhibition for free. Information about the exhibition can be found in foreign newspapers such as Seafood International and Infofish International while invitation tickets have been given out during various international seafood expositions in Dubai, Japan, the US, Belgium, China, Korea, etc. and sent online to about 65,000 customers worldwide. One of the highlights of the exhibition is the number of seminars and workshops organized. This year, Vietfish participants will have the opportunity to attend excellent conjunctures such as “Putting food safety and sustainability on the map” by GLOBAL G.A.P, “Pangasius forum - The sustainable growth for pangasius at European market” by

VASEP and SUPA, “Business impact on increasing food safety concerns and how high techs can help aquaculture industry overcome such concerns” by TUV SUD, “Launching shrimp ASC standard in Viet Nam” by WWF, “Sustainability in fishmeal – In the aspect of efficiency, energy and environment” by HAARSLEV, “Update the diseases in pangasius, status and mechanism of multiple antimicrobial resistance in pathogenic bacteria on stripe catfish farmed in the Mekong Delta” by PHARMAQ, etc. Vietfish 2014 is expected to be a perfect destination for seafood producers, relating service suppliers, customers and specialists to meet up for further cooperation opportunities. Compiled by Phuong Thao

Public Private Cooperation for Fisheries Improvement in the Philippines Fish and fishery products provide livelihood opportunities and income for 48 million people in Asia, providing a crucial contribution to the region’s food supply and economic output. However, current fishing levels are not sustainable and continue to stress the world’s oceans. Without the use of sustainable practices, the current volume of ocean harvest will lead to serious negative consequences for both the environment and the future economic output of the countries in this region. By USAID Maximizing Agriculture Revenue through Knowledge, Enterprise Development and Trade Project

Filipino fisherman brings his catch to the market Mark Walter (2012), USAID Maximizing Agricultural Revenue through Knowledge, Enterprise Development, and Trade Project

o tackle these issues, the United States Agency for International Development (USAID) supported the Association of SoutheastAsian Nations (ASEAN) to establish the ASEAN PublicPrivate Taskforce on Sustainable Fisheries and Aquaculture last year. The Taskforce set a priority to develop a market-based tool to help the fisheries industry improve production sustainability and receive recognition that would open new markets. The Taskforce then formed a working group that is developing a Fishery Improvement Project (FIP) Protocol for the ASEAN region. With support from the USAID Maximizing Agricultural Revenue from Knowledge, Enterprise Development, and Trade project, the working group is developing the Protocol through a public-private consultative process. To safeguard the future of marine resources and the livelihoods

of fishers and ensure that the Protocol responds to the realities of Filipino fisheries, the Philippine Government organized a national consultation on the FIP Protocol for ASEAN on June 10-11, 2014. Over 100 industry, government and small fisher representatives from across the country gathered in Manila to review and provide input on the first draft of the Protocol. The USAID Ecosystems Improved for Sustainable Fisheries project provided technical support to the Philippine Government to implement the consultation. “The time has come for ASEAN stakeholders to introduce a mechanism through which local fisheries can improve upon environmental, social and sustainability performance. An industry-wide accepted FIP tool will ensure the livelihoods of millions of participants across the sector,” said Rosanna Contreras, Executive Director, Socsksargen Federation of Fishing & Allied Industries. The Protocol represents a first step for fishers in the region to improve environmental and social performance across fisheries. A

formalized protocol will align with internationally recognized fisheries standards and national fisheries management plans. It will also be in line with global buyers’ preference that are increasingly looking to purchase seafood from suppliers that can certify that their products come from better managed, sustainable and responsible fisheries. Several Filipino organizations Frabelle Fishing Corporation, Irma Fishing and Trading, Conservation International-Philippines, Fisherfolk Representative Buenafe Olarte, and Regional Agriculture and Fisheries Council Davao - committed to join the FIP Protocol Steering Committee. This regional technical committee will ultimately be responsible for seeking government buy-in and implementing improvements through the Protocol. Similar national public-private consultations have been held in Viet Nam and Thailand, and one is planned in Indonesia in September 2014.

ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 17

Events

Viet Nam’s pangasius fillet

The 2nd Sunset Review for Pangasius More than 10 years have passed since the first US antidumping order against pangasius fillets from Viet Nam. Under US law, they have to revoke this order after 5 years unless they determine that doing so would likely lead to continuation or recurrence of dumping (and) of material injury within a reasonably foreseeable time. Recently, the 2nd Sunset Review has been initiated but do the Vietnamese pangasius enterprises still care?

18 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

What are “Sunset Reviews”? In July 2002, the US Department of Commerce (DOC) initiated an antidumping (AD) investigation of imports of Vietnamese pangasius. Only then did many Vietnamese know about what so-called “AD cases” in a foreign market. In principle, AD orders are imposed only within 5 years. However, because the purpose of the AD duties is to protect domestic firms from international competitors who can produce goods inexpensively, this duty will be imposed until the prevention and removal of damage is no longer needed. The World Trade Organization (WTO) also has regulations on the conditions and procedures for reviewing of AD orders. The review is also

specified to conduct after 5 years of the imposition. In the USA, this review also aims to determine the AD duty rates of each related company. The five-year review is called “Sunset Review”. The US law requires DOC and ITC (US International Trade Commission) to initiate the review automatically no later than 5 years after an AD order is issued. In the Sunset Review, if DOC determines that dumping subsidy would likely recur and ITC determines that material injury would be likely to continue or recur, these agencies may decide to continue imposing the AD duties. Then a new period of 5 years to impose AD duties is calculated starting from the date

of this decision. Conversely, if either agency makes a negative determination, the AD order will be completely revoked.

Back to the first Sunset Review of pangasius On July 1, 2008, under the provisions of section 751 (c) of Tariff Act as amended in 1930, DOC initiated to conduct the “Sunset Review” for AD order after 5 years being imposed to pangasius from Viet Nam. Accordingly, DOC is responsible for calculating dumping margins and ITC is responsible for proving that the dumping of fish can cause significant damage (or threatening to cause significant damage) to the US domestic manufacturers. At the time when the “Sunset Review” was initiated, there were quite a lot of expectations. It’s simply because if Viet Nam wins in this review, pangasius will escape completely from AD order from the US, which opens up great opportunities to boost exports into this huge and potential market.

Unexpectedly in this review, DOC decided to use Philippines, a country where pangasius was grown at a low level with very high cost, as a surrogate nation to calculate the value and dumping margin rather than Bangladesh, where aquaculture conditions, labor, business management or exported volumes are economically comparable to Viet Nam. From the arbitrary selection of the surrogate country, DOC determined that pangasius from Viet Nam was sold with a dumping margin exceeding the minimum level in the first AD investigation (in 2002) as well as in every period of administrative review (POR). Therefore, all six members of the ITC agreed that revoking the AD order may lead to recurrence of dumping and damage to the US catfish industry. As a result, on June 16, 2009, ITC announced its decision to maintain AD order on Vietnamese pangasius for 5 more years. From above, we can realize that, with the purpose of absolute protection for domestic industry,

Mr Butch Wilson, former president of CFA (left) and Dr Terry Hanson discussed about the US catfish industry

there is no hope for the “forgiveness” in the Sunset Review after 5 years of being imposed of AD order. And the true is that within the past 20 years (from the establishment of the WTO), there was only one case that DOC revoked the AD order as related to some special situations.

As on schedule – Scared is the US catfish More than 10 years have passed since the first US AD order against pangasius fillets from Viet Nam. As on schedule, on June 2, 2014, both DOC and ITC gave their notices on the Federal Register of the United States to initiate the second “Sunset Review” for pangasius from Viet Nam. Accordingly, the review will formally begin on July 1, 2014 and the final decision about the removal or continued imposition of AD orders will be announced in early July 2015. Perhaps, the Association of Catfish Farmers of America (CFA) is the one that concerns and watches this review most closely. This is inevitable, because the final decision of the review will have a critical impact on the entire US catfish industry. In fact, for the past 10 years, CFA has spent a lot of money for the lobbying and heavily communications on what they called the “damage” caused by imported pangasius. On June 18, 2014, immediately after the second Sunset Review was initiated, an online newspaper named “Southeast Farm Press” has published an article which related to a report published in April 2014 titled “2013 US Catfish Database”. Especially, in this article Mr. Butch Wilson, former president of CFA and Dr. Terry Hanson, writer of the report, tried to emphasize the ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 19

Events loss of US catfish industry since the emergence of imported pangasius product. Specifically, since peaking in 2003, the US catfish industry has been shrinking. American consumer preference for the fish declined from sixth among the top 10 fish and seafood products in 2009 to ninth in 2012. The acreage devoted to catfish farming in the US continued its steady decline in 2013 and is now down 62 percent, or 121,135 acres, from its peak in 2002. Meanwhile, imports of frozen pangasius fillets increased by 44 million pounds in 2013, to 281 million pounds, accounting for 78 percent of all sales of frozen pangasius fillets in the US. Imports in 2013 were nearly 10 times what they were just eight years ago, while the number of pounds of US catfish processed is down nearly 50 percent from that same year. Looking to the future, Hanson says some trends will likely continue, while others may see a sharp change. While the market share of imported fish and seafood will continue to rise, overall consumption of seafood products will keep to its downward trend unless efforts are made to educate Americans about the nutritional benefit of eating more fish. The increase in feed prices over the past few years has led to a lower in-pond catfish inventory in the US, which will result in a supply shortage in 2014. As of February, processors were paying much higher prices per pound for US-raised catfish than just a year earlier, a positive trend Hanson hopes will continue at the production, processing and retail levels. “If producers are able to invest these profits to improve infrastructure, 20 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

The report on the loss of US catfish industry since the emergence of imported pangasius

adopt new technologies and reduce production costs, then US farmraised catfish will compete favorably with inexpensive imported products,” Hanson said.

Impassively waiting for the Sunset Review Completely contrary to the CFA, from the experience of the first Review and the dismal result of Sunset review for shrimp in 2010, Viet Nam pangasius enterprises are quite calm and almost indifferent to the Review, leaving the vain hope of being able to completely get out of the AD order. In fact, for over 10 years living with AD cases, pangasius can be said to be already quite courageous and almost ready to face the final decision of the Review. According to the proposal from some law firms, the total cost for all phases in this Sunset Review of pangasius is approximately US$200,000. Apparently, Viet Nam business-minded companies will certainly not invest such a large sum of money on something that they know for sure will result in 0. Meanwhile, the real concern for Vietnamese pangasius today is

not the AD case but the emerging issues that have just happened recently. Specifically, it is the Agricultural Act of 2014 (Farm Bill) that was recently signed by the US President. On the whole, once they are trying to protect domestic production intentionally, any effort to dismantle that protection is extremely difficult, especially when the right to review and judge is in the hands of the importer country like the US. Therefore, in every Sunset Review, there is always a question “What will happen to the US industry if the AD order is revoked?” Clearly, this is a relatively old AD order. Thus, it is time for this order to go away. The US industry has had 10 years of protection and it is time for the US industry to operate without protectionist measures. Indeed, if the US industry cannot operate without protectionist measures, it is time for them to get out of this business. Tran Duy

US signs Sustainable Fisheries Accord with Southeast Asian Nations The U.S. Agency for International Development (USAID) and the Southeast Asian Fisheries Development Center (SEAFDEC) on June 16, 2014 agreed to work together to design and implement activities to enhance food security and biodiversity conservation in Asia and the Pacific. US Ambassador Kristie Kenney visits research vessel at the Southeast Asian Fisheries Development Center following the memorandum of understanding signing ceremony. Photo: Richard Nyberg/USAID

he memorandum of understanding signed by SEAFDEC Secretary General Chumnarn Pongsri and USAID Regional Development Mission for Asia Director Michael Yates, reflects SEAFDEC’s and USAID’s intention to collaborate in the design, implementation and evaluation of USAID-funded sustainable fisheries activities. In addition, USAID and SEAFDEC plan to engage with other U.S. Government agencies, including the National Oceanic and Atmospheric Administration and the Department of Interior, to identify technical experts to assist in the facilitation of the envisioned activities. “The United States and the countries of Southeast Asia share a common vision of our oceans as global treasures, a source of food and energy, and a foundation for our way of life,” US Ambassador Kristie A. Kenney said at the signing ceremony, which coincided with US Secretary of State John Kerry’s June 16-17 “Our Ocean” Conference in Washington,

DC. “Our oceans provide jobs and attract tourism. They provide a habitat for countless species. They are vital to our nations’ transportation, economy, and trade, linking us with countries across the globe.” SEAFDEC comprises Japan and the 10 member countries of the Association of Southeast Asian Nations (ASEAN): Brunei Darussalam, Cambodia, Indonesia, Japan, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam. In partnership with USAID, the intergovernmental body will also conduct periodic joint planning exercises and look for ways to leverage resources for effective regional programming and implementation. “Collaboration with USAID would build upon the existing cooperation between SEAFDEC and the ASEAN Member States by generating technical grounds to support development of science and market-based policy and encourage fishing practices and related activities

By Richard Nyberg/USAID

that would be undertaken in a responsible and sustainable manner, including traceability of fishery products,” said Secretary General Pongsri. They also intend to convene an ad hoc consultative committee to advance a unified regional, sustainable and responsible fisheries agenda with participation from relevant regional organizations such as ASEAN, the Coral Triangle Initiative for Coral Reefs, Fisheries and Food Security and the Regional Plan of Action to Promote Responsible Fishing Practices including Combating Illegal, Unreported and Unregulated Fishing in the Region. According to SEAFDEC, in 2011, Asia’s fishery production accounted for about 70 percent of total global production. Meanwhile, the contribution of the 10 Southeast Asian countries to the world’s total fishery production in 2011 was about 18.8 percent, an increase of 6.7 percent over 2010.

ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 21

Events

Workers filleting pangasius at a processing facility in Can Tho City, Viet Nam.

Ten Asia-Pacific countries protest US Catfish Program Ten Asian and Pacific nations have told the Office of the United StatesTrade Representative that the Agriculture Department’s catfish inspection program violates international law, and their objections could hamper Obama administration efforts to reach a major Pacific trade agreement by the end of next year.

22 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

hey say that the inspection program is a trade barrier erected under the guise of a food safety measure and that it violates the United States’ obligations under World Trade Organization agreements. Among the countries protesting are Viet Nam and Malaysia, which are taking part in talks for the trade agreement — known as the TransPacific Partnership — and have the ability to derail or hold up those negotiations. The complaints are outlined in a May 28 letter signed by diplomats from the 10 countries. The letter does not threaten retaliation, but it emphasizes that the American

catfish program stood in the way of the trade talks. Viet Nam, a major producer of pangasius – used to be called catfish before the US bans it from being called “catfish” to protect local fish from competition has long complained about the program, but it has never before won international support for its fight. Several of the countries whose representatives signed the letter — including the Philippines, Myanmar, Thailand and Indonesia — do not have catfish industries to protect and are not involved in the trans-Pacific trade talks. But the letter expresses the concern that the inspection

program could lead the Agriculture Department to expand its ability to regulate seafood exports to the United States, catfish or not. “Many of these countries are looking to see what happens to Viet Nam on the catfish issues, and what precedents it might set for other trade deals in the region,” said Jeffrey J. Schott, a senior fellow at the Peterson Institute for International Economics in Washington and the co-author of a book on the TransPacific Partnership. The United States and 11 countries on both sides of the Pacific — as well as Australia, New Zealand and Brunei — are still negotiating the trade pact, which has been repeatedly delayed over various disputes. The Viet Nam Association of Seafood Exporters and Producers recently hired James Bacchus, a former chairman of the World Trade Organization’s appeals panel, to prepare a possible legal challenge to the catfish inspection program. Mr. Bacchus said in an interview

that only governments have standing to bring a case before the trade organization, but that the export group was working closely with Vietnamese officials to monitor the catfish inspection program. “I’m confident that Viet Nam would have a case before the W.T.O. if they decided to bring one,” said Mr. Bacchus, a former United States House member from Florida who is now a lawyer with Greenberg Traurig in Washington. The program, spelled out in a set of regulations that govern food production in the United States known as the Farm Bill, mandates that all catfish imports must be inspected by the United States Department of Agriculture (USDA). The mandate, first introduced to the bill in 2008, is a break from the traditional arrangement that requires all imported seafood to be inspected by the Food and Drug Administration (FDA).

Converting to the new mandate has been expensive and burdensome because its requires nations that export to the United States to set up inspections that are equivalent to the Agriculture Department’s program. Critics estimate it has already cost American taxpayers US$20 million, prompting protests from financial watchdog groups, the Obama Administration, the Government Accountability Office and high-profile politicians including US Sen. John McCain, R-Ariz, especially when a Government Accountability Office report in May 2012 called imported catfish a low-risk food and said an Agriculture Department inspection program would “not enhance the safety of catfish.” Despite the protests, the US catfish industry and Sen. Thad Cochrane, R-Miss., managed to keep the new mandate alive, even weathering an effort last year to quash the USDA inspection program. Now, Gavin Gibbons, spokesman for the National Fisheries Institute, said the program is putting even non-seafood industries at risk. “This latest development shows how serious this issue is,” Gibbons said. “A special interest handout to a few southern states has grown into one of the most reviled programs on Capitol Hill. And now, it’s jeopardizing a major American trade initiative. It’s not catfish producers who are going to be burned by this; it’s pork, beef, corn and soy exporters. As predicted, US agriculture is the collateral damage from this boondoggle.” Source: The New York Times. Edited by the ASEAN Seafood Magazine Photo: Dung Minh

Harvesting pangasius in Dong Thap Province, Viet Nam

ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 23

Market & Exports SEAFOOD EXPORTS IN JAN- JUN, 2014 Source: Vasep (Based on Viet Nam Customs data)

Viet Nam’s seafood exports in June 2014 amounted to US$572 million, up 6.9% compared to the same month of last year. Seafood exports in the first six months of 2014 were valued at over US$3.6 billion, up 24.7% year on year. Market and main product structures are as follows:

May 2014 (US$ million)

Markets

June 2014 (US$ million) 115.123 112.395 20.421 22.455 12.543 14.298 8.737 79.613 40.243 10.060 55.517 33.089 15.701 18.641 9.521 3.159 89.038 572.040

139.043 123.141 21.322 22.130 15.771 11.823 14.087 98.096 70.555 14.543 50.024 39.399 18.369 14.748 7.273 4.604 96.610 661.862

The US EU Germany The Netherlands Italy Spain France Japan China & Hong Kong Hong Kong South Korea ASEAN Australia Canada Brazil Russia Others Total

Compared with June 2013 (%)

May 2014 (US$ million)

Products

Jan – Jun 2014 (US$ million)

+1.7 +20.6 +32.2 +116.9 -6.6 +43.6 -15.3 -15.8 -23.9 -10.2 +71.8 +17.8 +6.5 +22.5 +9.2 -43.0 +15.7 +6.9

Compared with the same period of 2013 (%)

832.160 656.094 115.053 105.717 74.822 71.000 69.075 520.728 304.261 74.470 287.914 210.109 108.364 92.035 62.238 31.966 509.454 3,615.323

+36.6 +28.1 +28.0 +79.2 +8.8 +16.1 +30.8 +3.0 +31.8 +26.4 +51.0 +19.9 +34.5 +32.9 +20.0 +12.5 +14.4 +24.7

June 2014 (US$ million)

Compared with June 2013 (%)

Jan – Jun 2014 (US$ million)

Compared with the same period of 2013 (%) +62.4 +133.3 +7.9

Shrimp (HS 03 and 16) Whiteleg shrimp Black tiger shrimp

345.127 203.658 120.318

276.933 168.047 87.371

+15.7 +35.9 -12.7

1,790.892 1,063.611 604.792

Pangasius (HS 03 and 16)

135.873

132.986

-5.4

824.438

-3.0

Tuna (HS 03 and 16) Tuna HS 16 Tuna HS 03

40.705 19.848 20.857

40.558 18.467 22.091

-0.2 -7.1 +6.4

244.318 107.567 136.751

-16.8 -8.3 -22.5

Other fish (HS 0301 to 0305 and 1604,

82.268

72.702

+11.4

453.569

+17.8

50.269 42.386 7.793

41.409 34.276 6.966

+1.0 -1.4 +14.9

258.234 219.320 38.455

+11.2 +13.7 +0.1

7.619

7.452

-11.6

43.873

+21.5

661.862

661.524

+6.9

3,615.323

+24.7

except tuna and Pangasius) Mollusk (HS 0307 and 16) Cephalopods Bivavle Other crustacean (HS 03 and 16 except Shrimp) Total SEAFOOD EXPORT MARKETS IN

Top 10 Viet Nam seafood exporters in Jan - Jun, 2014

JAN - JUN, 2014 (Value) Others 19.2%

ASEAN 5.8% China& Hong Kong 8.4% Australia 3.0%

Japan 14.4%

South Korea 8.0%

The U.S 23.0%

EU 18.1%

SEAFOOD EXPORT PRODUCT CATEGORIES IN JAN - JUN, 2014 (Value)

Value (US$ Mil.)

Enterprises

MINH PHU SEAFOOD CORP 212.648 STAPIMEX 117.981 QUOC VIET CO.. LTD 100.967 MINH PHU – HAU GIANG SEAFOOD CORP 100.266 CASES 91.347 VINH HOAN CORP 88.363 HUNG VUONG CORP 61.599 FIMEX VN 59.387 TRANG KHANH SEAFOOD CO., LTD 58.044 AUVUNG SEAFOOD 54.551 Total 945.155

Other seafood 12.5 %

Tuna 6.8%

Mollusk 7.1%

Other crustacean 1.2% Frozen shrimp 49.5%

Pangasius 22.8%

VIETNAM SEAFOOD EXPORTS 2012 - 2014

Value (US$ million) 800 600 400 200 0

Jan

Feb

Mar

Apr

May 2012 Value

24 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

Jun

Jul 2013 Value

Aug

Sep

2014 Value

Oct

Nov

Dec

SHRIMP EXPORTS IN JAN - JUN, 2014 Source: VASEP (Based on Viet Nam Customs data)

Viet Nam’s shrimp exports in June 2014 soared by 33.5% year on year to US$320 million, driving the six-month figure to US$1.8 billion, up 62.4%. The Netherlands enjoyed the highest growth of nearly 300% in the first six months, while the US still remained the biggest importer with the total import value to reach US$528 million, accounting for nearly 30% of the total market share.

SHRIMP EXPORT MARKETS IN JAN - JUN, 2014 (Value) Others 13.7%

China & Hong Kong 11.9%

SHRIMP EXPORT VALUE IN JAN - JUN, 2010 - 2014 US$ million 2000

Japan 17.4%

1500 1000

South Korea 7.7% Australia 3.9%

Markets

500 The US 29.5%

EU 16.1%

0 2010

May 2014 (US$ million)

June 2014 (US$ million)

Value (%)

Compared with June 2013 (%)

The US

89.556

82.737

25.9

+43.6

Japan

59.131

57.107

17.9

-5.8

59.117

64.083

20.1

2011

2012

Jan – Jun 2014 (US$ million)

2013

2014

Value (%)

Compared with the same period of 2013 (%)

527.707

29.5

+109.2

311.173

17.4

+5.9

+115.6

287.470

16.1

+108.3

Germany

11.225

11.476

3.6

+85.4

62.419

3.5

+91.3

The Netherlands

14.659

19.839

6.2

+598.4

55.172

3.1

+299.0

8.893

8.322

2.6

+78.1

42.632

2.4

+86.0

50.896

32.676

10.2

-15.1

212.926

11.9

+44.9

Hong Kong

8.630

7.448

2.3

+31.2

44.296

2.5

+55.8

South Korea

23.571

29.037

9.1

+155.2

138.128

7.7

+120.4

Australia

11.448

9.954

3.1

+4.6

68.956

3.9

+54.6

Canada

9.248

13.654

4.3

+45.4

61.886

3.5

+55.1

Taiwan

8.983

12.091

3.8

+62.2

42.594

2.4

+25.5

Switzerland

8.974

3.769

1.2

-9.5

39.153

2.2

+98.6

ASEAN

6.620

4.146

1.3

+33.7

27.768

1.6

+42.0

Singapore

3.883

2.629

0.8

+24.9

15.951

0.9

+23.7

The Philippines

1.963

0.460

0.1

-16.2

6.410

0.4

+70.2

17.583

10.338

3.2

+30.8

73.133

4.1

+42.3

345.127

319.593

100

+33.5

1,790.892

100

+62.4

France China & Hong Kong

Others Total

Shrimps (live/ fresh/frozen/ dried (HS 03)) No

Markets

1 2

Processed shrimp (HS 1605) No

Markets

Proportion %

Value (US$ million)

Proportion %

The US

301.545

25.41

The US

226.163

37.43

China & Hong Kong

203.688

17.17

Japan

124.124

20.54

Japan

187.049

15.76

Australia

47.406

7.84

South Korea

101.567

8.56

South Korea

36.561

6.05

Germany

39.553

3.33

The Netherlands

28.145

4.66

Taiwan

38.425

3.24

Canada

24.256

4.01

Canada

37.629

3.17

Germany

22.866

3.78

Switzerland

32.240

2.72

France

14.153

2.34

France

28.478

2.40

Belgium

13.979

2.31

Belgium

28.031

2.36

The UK

11.946

1.98

Subtotal

998.206

84.12

Subtotal

549.599

90.95

188.394

15.88

Others

1.186.600

100.00

Others Total

Total

Value (US$ million)

54.693

9.05

604.292

100.00

ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 25

Market & Exports

PANGASIUS EXPORTS IN JAN - JUN, 2014 Source: VASEP (Based on Viet Nam Customs data)

PANGASIUS EXPORT MARKETS IN JAN - JUN, 2014 (Value) Others 34.3%

Columbia 3.8%

Viet Nam’s pangasius exports continued to decline by 3.0% year on year to US$828.4 million in the first six months of 2014 due to the slump in EU and the US – two largest markets – by 9.5% and 25.2% respectively. Meanwhile, other markets, including ASEAN and Brazil, witnessed positive growth in their six-month imports of pangasius.

PANGASIUS EXPORT VALUE IN IN JAN - JUN, 2010 - 2014 US$ million

EU 21.0%

1000 750 500

Brazil 7.4%

250 Mexico 6.3%

ASEAN 8.8%

The US 18.4%

0 2010

May 2014 (US$ million)

June 2014 (US$ million)

Value (%)

2011

Compared with June 2013 (%)

Jan – Jun 2014 (US$ million)

Value (%)

2013

2014

Compared with the same period of 2013 (%)

27.578

32.099

22.6

-0.7

173.121

21.0

-9.5

Spain

5.951

7.533

5.3

+25.0

42.992

5.2

+8.0

The Netherlands

4.686

6.482

4.6

+22.8

30.270

3.7

-3.3

Germany

3.774

3.279

2.3

+14.9

20.306

2.5

-11.3

The UK

2.943

3.404

2.4

-24.6

17.653

2.1

-9.1

The US

23.255

25.175

17.7

-22.7

151.767

18.4

-25.2

ASEAN

14.091

12.731

8.9

+25.7

72.204

8.8

+15.1

Thailand

5.288

4.074

2.9

+33.7

24.785

3.0

+38.4

Singapore

3.938

3.407

2.4

+26.1

18.939

2.3

+7.7

The Philippines

2.534

2.409

1.7

+14.9

14.605

1.8

+2.0

Brazil

7.268

9.016

6.3

+3.4

61.111

7.4

+18.2

Mexico

9.065

5.642

4.0

-37.0

52.325

6.3

+1.7

China&Hong Kong

8.732

8.055

5.7

+0.5

46.569

5.6

+15.8

Hong Kong

3.500

3.519

2.5

+1.6

19.146

2.3

+7.7

Columbia

5.152

5.015

3.5

+23.5

31.159

3.8

+27.0

Saudi Arabia Others Total

6.126

5.206

3.7

+17.1

30.533

3.7

+10.2

34.606

39.396

27.7

+25.4

205.649

24.9

+4.3

135.873

142.337

100

+1.2

824.438

100

-3.0

Pangasius (live/ fresh/frozen/ dried (HS 03))

Processed Pangasius (HS 1604) No

Markets

18.55

Netherlands

2.766

34.63

7.49

Thailand

1.298

16.25

52.274

6.40

China & Hong Kong

0.565

7.07

China & Hong Kong

46.004

5.63

Switzerland

0.519

6.50

Spain

42.604

5.22

Germany

0.431

5.40

Columbia

31.159

3.82

Spain

0.387

4.85

Saudi Arabia

30.224

3.70

Singapore

0.331

4.14

The Netherlands

27.504

3.37

Saudi Arabia

0.309

3.87

Thailand

23.487

2.88

The US

0.282

3.53

Egypt

20.132

2.47

Australia

0.157

1.96

Subtotal

485.984

59.52

Subtotal

7.046

88.21

Others

330.466

40.48

Others

0.942

11.79

816.450

100.00

Total

7.988

100.00

Markets

The US

151.485

Brazil

61.111

Mexico

Total

Value (US$ million)

26 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

Proportion %

Value (US$ million)

Proportion %

IN JAN - JUN, 2014 Source: VASEP (Based on Viet Nam Customs data)

Tuna exports from Viet Nam dropped sharply by 16.8% year on year to over US$244 million in the first six months of 2014 due to the decline in many big markets including the US, ASEAN and Japan, which together constitute nearly one half of the total market share. The growth of exports to the EU market slowed down to 1.1%, reaching US$69.4 million in the period.

TUNA EXPORT MARKETS IN JAN - JUN, 2014 (Value) Canada 2.7%

Others 17.3

Israel 5.6%

ASEAN 5.7%

TUNA EXPORT VALUE IN JAN - JUN, 2010 - 2014 US$ million 300

The US 34.8%

250 200 150 100 50

Japan 5.6%

0 EU 28.4%

May 2014 (US$ million)

2010

2011

2012

2013

2014

June 2014 (US$ million)

Value (%)

Compared with June 2013 (%)

Jan â&#x20AC;&#x201C; Jun, 2014 (US$ million)

Value (%)

Compared with the same period of 2013 (%)

15.586

38.6

+9.5

85.009

34.8

-21.7

11.958

11.089

27.4

+3.7

69.394

28.4

+1.1

Germany

4.077

3.297

8.2

-27.5

20.399

8.3

-8.9

Italy

2.847

0.863

2.1

+116.4

12.777

5.2

+10.3

The Netherlands

1.360

1.687

4.2

+90.5

11.925

4.9

+108.7

ASEAN

2.214

2.329

5.8

+51.6

13.856

5.7

-22.6

Thailand

1.772

1.703

4.2

+60.7

10.712

4.4

-20.5

Japan

2.352

1.820

4.5

-2.2

13.626

5.6

-56.9

Israel

0.975

3.123

7.7

+224.4

13.615

5.6

+44.2

Canada

0.699

0.677

1.7

-48.2

6.633

2.7

-5.7

Tunisia

2.299

0.576

1.4

-54.5

5.517

2.3

-26.2

Lebanon

0.864

0.406

1.0

+13.8

3.177

1.3

+29.6

6.311

4.822

11.9

-42.8

33.491

13.7

-17.4

40.705

40.427

100

-0.5

244.318

100

-16.8

13.032

The US EU

Others Total

Tuna (live/ fresh/frozen/ dried (HS 03))

Processed Tuna (HS 1604) No

Markets

Value (US$ million)

Proportion %

38.62

The US

32.200

29.93

9.09

Germany

18.548

17.24

10.774

7.88

Thailand

8.698

8.09

The Netherlands

8.485

6.20

Israel

7.162

6.66

Israel

6.453

4.72

Tunisia

5.248

4.88

China & Hong Kong

6.253

4.57

The Netherlands

3.440

3.20

Spain

5.724

4.19

Lebanon

3.177

2.95

Canada

5.481

4.01

Japan

2.851

2.65

The U.K

3.363

2.46

Taiwan

2.010

1.87

Belgium

3.174

2.32

Switzerland

1.945

1.81

Subtotal

114.943

84.05

Subtotal

85.281

79.28

21.807

15.95

Others

136.751

100.00

Markets

Value (US$ million)

The US

52.810

Italy

12.426

Japan

Others Total

Proportion %

Total

22.287

20.72

107.567

100.00

ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 27

Market & Exports

IN JAN - JUN, 2014

In the first six months of 2014, Viet Nam shipped over US$219 million worth of cephalopod, up 13.7% year on year. Imports into South Korea – the largest market for this item – significantly increased by 33.2% to nearly US$77.8 million while to Japan – the second largest market – still dropped by 3.2% year on year to US$53.6 million. Source: VASEP (Based on Viet Nam Customs data)

CEPHALOPOD EXPORT MARKETS IN JAN - JUN, 2014 (Value) Russia 0.9%

ASEAN 13.1%

Others 4. 8%

CEPHALOPOD EXPORT VALUE IN JAN - JUN, 2010 - 2014 US$ million 250

Japan 24.4%

200

China & Hong Kong 4.7%

150 100 50 EU 16.6%

South Korea Japan EU Italy Spain Germany ASEAN Thailand China&Hong Kong Hong Kong Taiwan The US Russia Australia Others Total

South Korea 35.5%

2010

May 2014 (US$ million)

June 2014 (US$ million)

Value (%)

15.289 9.823 7.687 5.342 5.641 0.493 5.140 4.078 2.057 0.480 0.617 0.414 0.181 0.212 0.967 42.386

14.674 9.931 7.118 4.506 0.726 0.281 5.102 3.989 1.116 0.404 0.396 0.441 0.466 0.258 0.884 40.385

36.3 24.6 17.6 11.2 1.8 0.7 12.6 9.9 2.8 1.0 1.0 1.1 1.2 0.6 2.2 100

Compared with June 2013 (%)

2011

2012

2013

2014

Jan – Jun 2014 (US$ million)

Value (%)

Compared with the same period of 2013 (%)

77.772 53.622 36.476 24.223 2.098 2.021 28.631 23.113 10.347 2.749 2.101 2.062 1.948 1.627 4.734 219.320

35.5 24.4 16.6 11.0 1.0 0.9 13.1 10.5 4.7 1.3 1.0 0.9 0.9 0.7 2.2 100

+33.2 -3.2 +12.0 +5.9 +119.2 +20.2 +26.7 +34.3 +1.7 -12.2 -0.3 +9.3 -25.7 -8.5 -13.6 +13.7

+58.1 -3.7 +6.3 -3.7 +238.1 -4.2 +23.9 +17.9 -22.9 -46.6 -22.6 +49.1 -20.8 -30.9 -22.9 +16.1

BIVALVE EXPORT MARKETS IN JAN - JUN, 2014 (Value) ASEAN 3.7%

IN JAN - JUN, 2014

Australia 1.7%

Viet Nam’s bivalve exports showed a sign of recovery when touching nearly US$38.5 million in the first six months of 2014, equaling the same period last year. EU – the largest importer, accounting for 70% of the total – witnessed a 2.2% drop in the period

EU Portugal Spain Italy Japan The US ASEAN Malaysia South Korea Australia China & Hong Kong Taiwan Mexico Others Total

June 2014 (US$ million)

Value (%)

5.783 2.353 1.065 1.147 0.646 0.546 0.314 0.190 0.145 0.181 0.022 0.033

5.104 2.248 0.853 1.213 0.775 0.498 0.358 0.266 0.196 0.041 0.026 0.012 0.005 0.157 7.171

71.2 31.3 11.9 16.9 10.8 6.9 5.0 3.7 2.7 0.6 0.4 0.2 0.1 2.2 100

0.123 7.793

28 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

Japan 10.7%

South Korea 2.6%

The US 7.9%

Source: VASEP (Based on Viet Nam Customs data)

May 2014 (US$ million)

Others 3.4%

Compared with June 2013 +16.5 +38.7 -29.4 +31.1 -1.4 +187.2 +107.9 +357.3 +215.4 -69.0 -78.5 -84.3 -74.7 +10.9 +18.3

EU 70.0%

Jan – Jun 2014 (US$ million)

Value (%)

26.921 9.107 6.282 5.482 4.106 3.046 1.438 0.903 0.983 0.641 0.226 0.159 0.091 0.844 38.455

70.0 23.7 16.3 14.3 10.7 7.9 3.7 2.3 2.6 1.7 0.6 0.4 0.2 2.2 100

Compared with the same period of 2013 (%) -2.2 +25.8 -4.3 -9.0 +1.6 +10.8 +62.9 +114.2 +21.5 -8.4 -51.0 -56.1 +113.0 +4.0 +0.1

FISH PASTE AND SURIMI EXPORTS IN JAN - JUN, 2014

Viet Nam’s fish paste and surimi exports in the first six months of 2014 bounced back nearly 30% after a 23.2% decrease in the same period last year. Imports into South Korea – the largest market – recovered to US$38.3 million in Jan - Jun 2014, up 0.4% year on year. Imports into other markets also soared significantly, including ASEAN – up 57%, China & Hong Kong 35.5%, Japan 57% and EU 48.2%. Source: VASEP (Based on Viet Nam Customs data)

FISH PASTE AND SURIMI EXPORT MARKETS IN JAN - JUN, 2014 (Value) ASEAN 25.4%

Others 6.0%

FISH PASTE AND SURIMI EXPORT VALUE IN JAN - JUN, 2010 - 2014

US$ million 150

Japan 12.0%

120

Taiwan 4.0%

90 60

China & Hong Kong 13.1%

South Korea ASEAN Thailand Singapore Malaysia China & Hong Kong Hong Kong Japan EU France Lithuania Spain Taiwan Russia The U.S. Others Total

30 EU 8.5%

South Korea 31.0%

May 2014 (US$ million)

June 2014 (US$ million)

Value (%)

6.225 4.793 3.025 1.028 0.696 4.670 0.127 2.923 1.581 0.751 0.351 0.369 0.594 0.741 0.080 0.282 21.888

7.139 4.284 2.701 1.050 0.534 2.347 0.127 2.310 1.288 0.659 0.201 0.180 0.815 0.650 0.016 0.268 19.116

37.3 22.4 14.1 5.5 2.8 12.3 0.7 12.1 6.7 3.4 1.1 0.9 4.3 3.4 0.1 1.4 100

Compared with June 2013 (%)

2011

Jan – Jun 2014 (US$ million)

+31.7 +53.0 +40.9 +54.7 +227.2 +53.5 +333.5 +60.7 -28.1 -31.3 -66.0 +76.6 +84.2 +26.7 -82.0 +127.3 +35.2

CRAB AND OTHER CRUSTACEAN EXPORTS IN JAN - JUN 2014

38.338 31.444 20.955 6.608 3.837 16.168 0.711 14.806 10.489 4.984 2.152 1.988 4.980 4.544 0.547 2.387 123.701

2012

2013

Value (%)

2014

Compared with the same period of 2013 (%)

31.0 25.4 16.9 5.3 3.1 13.1 0.6 12.0 8.5 4.0 1.7 1.6 4.0 3.7 0.4 1.9 100

+0.4 +56.9 +50.8 +40.4 +194.6 +35.5 -14.7 +57.1 +48.2 +14.4 +183.8 +152.6 +22.6 +87.3 -23.0 +14.2 +28.9

CRAB AND OTHER CRUSTACEAN EXPORT MARKETS IN JAN - JUN 2014 (Value) China & Hong Kong 4.6%

Viet Nam shipped nearly US$43.9 million worth of crab and other crustacean in Jan - Jun 2014, significantly up 21.5% year on year, witnessing the growth in all three largest markets, i.e. the US, EU and Japan. Imports into the US generated US$21.2 million in the period, up 62.8% year on year.

The US EU France The U.K. The Netherlands Belgium Japan China & Hong Kong Hong Kong ASEAN Indonesia Singapore Canada Taiwan Australia Others Total

2010

ASEAN 3.1%

Taiwan 1.3 %

Others 5.7%

EU 22.3%

Japan 14.8%

May 2014 (US$ million)

June 2014 (US$ million)

Value (%)

Compared with June 2013 (%)

Jan – Jun 2014 (US$ million)

Value (%)

4.219 1.456 0.851 0.348 0.227 0.030 0.925 0.287 0.033 0.272 0.115 0.078 0.236 0.070 0.069 0.085 7.619

5.692 1.780 0.809 0.788 0.019 0.135 2.135 0.254 0.029 0.092

55.9 17.5 7.9 7.7 0.2 1.3 21.0 2.5 0.3 0.9

+41.4 +5.5 -20.8 -93.3 +422.0 +86.1 -57.0 -73.1 -77.2

0.092 0.005 0.001 0.082 0.141 10.181

0.9 0.05

-52.7 -94.1

0.8 1.4 100

+95.2 -68.9 +20.8

21.216 9.793 4.299 2.850 1.704 0.558 6.473 2.015 0.463 1.339 0.546 0.512 1.041 0.552 0.394 1.049 43.873

48.4 22.3 9.8 6.5 3.9 1.3 14.8 4.6 1.1 3.1 1.2 1.2 2.4 1.3 0.9 2.4 100

The US 48.4%

Compared with the same period of 2013 (%) +62.8 +6.4 +0.4 +17.4 +19.2 +3.9 +1.1 -44.7 -30.6 -16.9 +280.9 -50.4 +112.7 +439.7 -14.2 -9.5 +21.5

ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 29

Market & Exports

Shrimp is sold at Charis Seafood’s Kiosk and Seafood Market in Australia – Photo: Urban Food Porn

Shrimp exports to Australia rapidly grows Viet Nam’s shrimp exports to Australia hit nearly US$69 million in the first half of 2014, up nearly 55 percent year on year, fueling hopes for further growth. By Ngoc Tu

30 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

Australia’s demand for imported shrimp Australia ranks twelfth among the world largest economies and fourth in the Asia-Pacific region following China, Japan and India. There has been an increased interest in fish as a source of healthy nutrition in Australia; however, the volume of fish caught domestically has been declining and Australia is currently importing around 72 percent of its seafood, mainly from New Zealand and nearby Asian countries. Australian domestic production is estimated to satisfy less than 25 percent of its domestic demand by 2020.

The protection of fisheries resources has now grown in importance; therefore, Australia can hardly maintain the current seafood consumption level without a considerable increase in imported seafood. According to Mr Norm Grant, Executive Chairman of the Seafood Importers Association of Australia, given estimated population growth and increases in per-capita consumption, the country will need an additional 1 million MT of seafood per year within ten years. Seafood imported into Australia predominantly comes from Thailand, Viet Nam and China.

market in the long run. Australians can pay and are willing to pay for high-quality products.

Imports of frozen raw shrimp into Australia, 2009-2013 US$ million 100

Viet Nam’s shrimp exports to Australia

90 80 70

2009

2010

2011

2012

2013

20 10

Ot he rs

ia In d

es ia on In d

M al ay

sia

nd Th ail a

tN Vi e

Imports of processed shrimp into Australia, 2009-2013 US$ million 70 60 50 2009

2010 2011

2012 20

2013

Ot he rs

es ia on In d

sia M ala y

a in Ch

nd Th ail a

Vi e

Popularly Viet consumed species shrimp have resulted Nam’s shrimp exports to Australia, 2013 in a decline in the Australian market include in shrimp imports into Australia. US$7.8 million; shrimp, Atlantic6% salmon, pangasius, Imports ofUS$38.8 canned products are million; 30% tuna, salmon, hoki, hake, barramundi, squid and increasing, including octopus. shrimp and crab. Shrimp is the most favorite The Australian trade market is WhiteHowever, leg shrimp seafood in Australia with the annual strongly price driven. volume of 50,000 MT, including suppliers wishing Black to ger sell to 25,000 MT of imported shrimp. Australia should focus on quality prawn US$82 million; Others 64% restrictions and Specific quarantine third-party aquaculture issued in 2007 on prohibition certification from processing to against imports of uncooked whole exporting if they want to stay in the

Imports of frozen raw shrimp into Australia enjoyed continuous growth of 7.5-37 percent in period 2009-2013, generating over US$232.8 million in 2013, up 14.9 percent compared to 2012 and up nearly 90 percent compared to 2009. According to the International Trade Commission (ITC), there were 24 countries supplying frozen shrimp to Australia in 2009, but the number reduced to 11 in 2013. More and more people favor frozen shrimp imported from Thailand and Viet Nam due to lower prices and improved quality. Imports from Viet Nam went up nearly 90 percent in five years, from US$23.58 million in 2009 to US$44.7 million in 2013. In 2013, Viet Nam surpassed Thailand to become Australia’s second biggest frozen raw shrimp supplier following China and constituted 19.2 percent of the market share. Imports of processed shrimp into Australia in period 2009-2013 peaked at US$139.2 million in 2011 and reduced to nearly US$77.9 million in 2013, down nearly 7.9 percent compared to 2012 and sharply down 27.6 percent compared to 2009, mainly due to the decline in imports from Thailand (-33.9 percent in 2013). Meanwhile, Australia’s imports from Viet Nam, China and Malaysia all increased compared to 2012. Viet Nam has always remained Australia’s biggest processed shrimp supplier for the last five years (except in 2012, Viet Nam ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 31

Imports of processed shrimp into Australia, 2009-2013 US$ million 70

Market & Exports 60

Ot he rs

es ia

In d

sia

over US$60.1 million in 2010 but went down sharply in 2011 and 2009 2012. Thus the figure reached only 2010 US$29.6 million in 2013, down 24.8 2011 percent compared to 2009 but up 2012 nearly 14.5 percent compared to 2013 the previous year, showing a sign of recovery. The number of processed shrimp suppliers to Australia sharply declined from 19 in 2009 to only 10 in 2013.

M ala y

Th ail a

Vi e

ranked50 second after Thailand), meanwhile, Australia is also Viet Nam’s 40 third biggest importer. However, imports from Viet Nam 30 in period 2009-2013 suffered considerable fluctuations due to 20 the general decline in processed shrimp10imports into Australia. Specifically, Viet Nam’s 0 processed shrimp exports to Australia increased by 52.7 percent year on year to the all-time high of

Viet Nam’s shrimp exports to Australia, 2013 US$7.8 million; 6%

US$38.8 million; 30%

White leg shrimp US$82 million; 64%

Black ger prawn Others

Black tiger prawn – Viet Nam’s advantage in the Australian market Last year, Australia ranked the sixth largest shrimp market for Viet Nam’s shrimp of all kinds, following the US, Japan, EU, China and South Korea. However, for black tiger prawn in particular, Australia was Viet Nam’s fourth largest importer. Despite decline in black tiger prawn imports and the growth of white leg shrimp imports in many large markets such as the US, Japan and EU, Viet Nam’s black tiger prawn exports to Australia remained stable in 2013 and maintained a share of over 60 percent, down only 5 percent compared to the proportion of 69 percent in 2012. The reason is possibly because Australian consumers prefer bigsized prawn. Viet Nam is currently leading the world in black tiger prawn production with around 268,000 MT in 2013 and aiming at 270,000 MT in 2014. Meanwhile, in Thailand and China – Viet Nam’s biggest competitors in the Australian shrimp market, black tiger prawn only accounts for 0.4 percent (2,000 MT) and 5 percent (60,000 MT) in their total shrimp production respectively. Shrimp exports to Australia show enormous potential; however, a fierce price competition will put Viet Nam’s shrimp exporters under considerable pressure given current increasing production costs in Viet Nam. Meanwhile, Viet Nam’s shrimp should also guarantee and enhance the quality to spur further growth in this market. N.T.

Shrimp is the most favorite seafood in Australia – Photo: Urban Food Porn

32 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

While Indonesia, Ecuador and India have stayed away from EMS, Thailand has suffered the heaviest loss from the disease.

Impacts of diseases and antidumping duties on large shrimp suppliers to the US Shrimp imports, accounting for 90 percent of shrimp consumed in the US, mainly come from major producing countries such as Indonesia, Ecuador, India, Viet Nam and Thailand. Currently, Indonesia is the leading shrimp supplier to this market, and it is expected to maintain the position this year due to quite favorable production and the freedom from antidumping duties.

n the first five months of 2014, Indonesia took the lead in shipping shrimp to the US with 40,579 MT, followed by Ecuador 37,583 MT, India 33,645 MT, Viet Nam 27,874 MT and

Thailand 21,959 MT. In May, the US shrimp imports from Ecuador, India and Thailand declined year on year with the corresponding levels of 4.4 percent, 14.17 percent and 31.12 percent. By comparison,

By Phuong Thao

Source: The US Department of Agriculture (USDA)

ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 33

Market & Exports Indonesia and Viet Nam saw a rise of 16.91 percent and 47.74 percent respectively.

Indonesia and Ecuador Staying away from EMS and antidumping duties While other significant shrimp producers such as Thailand and Viet Nam have been affected by the Early Mortality Syndrome (EMS) and the US antidumping duties, the avoidance of the disease and duties has helped shrimp exports of Indonesia and Ecuador shoot up in the US market. Indonesia rose from the third rank in 2013 to the leader in supplying shrimp to the US in the first five months this year, and Ecuador from the fourth to second one. In March 2014, the US

Department of Commerce (DOC) announced the preliminary results of the eighth period of administrative review (POR8) from February 1, 2012 to January 31, 2013 on shrimp imports from India, Viet Nam and Thailand. New antidumping duties, being much higher than those in the previous period (POR7), if being retained in the final results of POR8, will put more pressure on the subjected countries, thereby facilitating shrimp exports of Indonesia and Ecuador to the US. The increasing demand from the US pushed up shrimp prices in India, Thailand, Indonesia and Viet Nam last June. That the US demoted Thailand for abysmal human trafficking records can also have an impact on shrimp prices

Shrimp imports, accounting for 90 percent of shrimp consumed in the US, mainly come from major producing countries such as Indonesia, Ecuador, India, Viet Nam and Thailand.

34 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

of other suppliers, including India, Indonesia, Viet Nam and Ecuador while making Thailand bump into deeper troubles in shrimp imports into the US. However, reports of White Spot Syndrome Virus (WSSV) have recently emerged in Indonesia. Traditionally, big farmers in this country will push for big sizes, head-on size 30 and 40, and even push for size 20 if shrimp can continue to grow. However, many ponds have been harvested with shrimp of size 60-70, attributable to the disease stunting the shrimp growth.

India - Pressure from antidumping duties With regard to the current status of efforts to control EMS in shrimp farms, Dr. George Chamberlain, Head of the Global Aquaculture Alliance (GAA) said recent reports from India have been quite positive, as tests at shrimp farms in Andhra Pradesh and Tamil Nadu found â&#x20AC;&#x153;no signs of EMSâ&#x20AC;?. These tests were supervised by Dr. Lightner of the University of Arizona, who helped discover the pathogen and develop the DNA tests. Despite being unaffected by EMS, the Indian shrimp industry has coped with the US antidumping duties. In the final results of POR7 in September last year, the DOC announced two out of three Indian companies had not dumped shrimp, hence enjoying the zero percent duty. However, when it comes to the preliminary results of POR8, this authority said all Indian companies had dumped shrimp in the US market, leading to the duties of 1.97-3.01 percent. Falcon Marine Exports Limited was subject to the peak preliminary rate

of 3.01 percent. If the DOC imposes this duty in the final decision, it will be the highest ever level on the company. From the leading shrimp supplier to the US in 2013, India was relegated to the third rank in the first five months of 2014.

Viet Nam and Thailand - â&#x20AC;&#x153;Victimsâ&#x20AC;? of EMS and antidumping duties EMS was first detected in China in 2009, moving to Viet Nam in 2010 and jumping to Thailand in 2012. The heaviest loss has now been recorded in Thailand. According to Dr. George Chamberlain, the failure rate at many Thai farms has reached over 30 percent in the first 40 days. Furthermore, the cool weather in the first three months this year was responsible for decreasing production to around 30,000 MT from 100,000 MT last year. In Viet Nam, after the EMS cause was identified, a number of large enterprises have controlled the disease and grasped the opportunity to boost exports given a substantial decline in production volume of major producers such as

Thailand. The worst situation of shrimp production and exports is being seen in Thailand. The Kasikorn Research Centre warned that the total value of Thai shrimp exports will probably drop by 20 percent this year as the decline continues for the third consecutive year. In addition to EMS, the Thai shrimp export sector has been seriously influenced by the negative image in the eyes of foreign buyers due to alleged abuse of foreign workers and human trafficking. The US shrimp imports from Thailand in May 2014 touched 3,840 MT, down 31.12 percent compared to year-ago levels and equaling onehalf of imports from Indonesia and Ecuador. In contrast, Vietnamese imports into the US increased by 47.74 percent, standing at 5,443 MT. With reference to the US antidumping duties, Thai and Vietnamese shrimp exporters all received the zero rate in POR7. Yet, the figure soared to an all-time high level in the preliminary results of POR8. Vietnamese enterprises run the risk of suffering the highest ever tariffs with 4.98 percent for

Minh Phu Seafood Corporation (MPC), 9.75 percent for Soc Trang Seafood JSC (Stapimex) and 6.37 percent for other defendants. Thai shrimp exporters were subject to the preliminary duties of 1.1 percent. However, it came as good news to the Thai shrimp industry last July when the DOC decided to rescind the ninth administrative review of the antidumping duty order on shrimp from Thailand for the period February 1, 2013 through January 31, 2014. It was because all the parties that had requested it, including the Shrimp Trade Action Committee (the petitioner), the American Shrimp Processors Association (ASPA) and certain individual companies, withdrew all requests on 1 July, within the set deadline for the DOC to rescind the process. Thailand slipped from the second largest shrimp supplier to the US in 2013 to the fifth in the first five months of 2014 (after Indonesia, Ecuador, India and Viet Nam), whereas Viet Nam rose from the fifth to fourth position. Keeping away from EMS, Indonesia, Ecuador and India are highly likely to be major shrimp suppliers to the US in 2014. On the contrary, Thai shrimp exports to this market are expected to continue to go down due to EMS, allegations of labor abuse in the fisheries industry and the risk of antidumping duties in POR8. Vietnamese imports into the US saw a considerable growth rate in the first five months this year, yet the shrimp industry will face problems if the DOC decides to keep so high duties in the final decision of POR8. P.T

Shrimp imported from India, Thailand and Viet Nam are running the risk of the US antidumping duties in POR8.

ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 35

Market & Exports

Tuna captured in Binh Dinh Province. Viet Namâ&#x20AC;&#x2122;s tuna exports to major markets have fallen since the end of last year. Photo: Dung Minh

Export target tough task for tuna industry The Viet Namâ&#x20AC;&#x2122;s tuna industry will find it difficult to reach its export value target for the year because of reduction in exports since the beginning of this year.

36 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

ccording to the Viet Nam Association of Seafood Exporters and Producers (VASEP), the exports of tuna, the seafood product having the third largest export value after shrimp and pangasius, reduced in volume and value two years ago. Last year, its export value had a year-on-year fall of 7 per cent to US$526 million, and the value was initially expected to gain a yearon-year of 6.46 per cent to $560 million for this whole year, the association said. However, that expectation was cut to $450 million for this year because of numerous challenges faced by local tuna exporters, it said. In major export markets of Vietnamese tuna, including the US, Japan and ASEAN, exports of the

local tuna have reduced since the end of last year. In the first five months of this year, Viet Nam exported tuna products to 86 markets in the world, 16 markets more than in the same period last year. But the total export value of tuna saw a year-on-year drop of 19 per cent to $203.8 million. During the first five months, the tuna export value to the US and ASEAN countries dropped 26.5 per cent and 29.5 per cent, respectively. The tuna export value to Japan had a growth against the same period of last year but reduced 60 per cent as compared with the value in the early part of this year, it said. Meanwhile, the value to the EU had a year-on-year increase of 0.6 per cent.

Therefore, the association said that by this year-end, Vietnamese tuna products would find it difficult to reach the industry’s export target for this year. The reasons for the reduction in export value include lack of supply, trade barriers and competition with other tuna exporting countries. The association said that the larger markets have asked the exporters to meet the requirements on origin of seafood including the new EU Illegal, Unreported and Unregulated (IUU) fishing law and a certification for seafood traceability in the US. However, Vietnamese exporters were finding it difficult to meet these requirements due to inadequate data on journals of seafood exploitation and preservation from fishermen. The export markets have also tightened activities on managing food hygiene and safety. These actions have made it difficult for local tuna exporters in increasing business in the large markets. Viet Nam has not had a sustainable development plan for the tuna industry so the supply and quality of tuna have not been stable. Equipment for fishing and preservation of tuna is also antiquated. Additionally, competitive ability of Vietnamese tuna products has also reduced due to low domestic supply and high import tax for tuna that used to be processed for export. Now, Viet Nam has imported 50 per cent of its demand for tuna with import tax between 10 to 24 per cent.

Ministry unveils plans to modernise tuna fishing The Viet Nam’s Ministry of Agriculture and Rural Development plans to create a production chain involving fishing, processing, and consumption of tuna. The trial project aims to improve tuna output, quality, and value addition as part of efforts to industrialise and modernise the industry. It will be carried out from 2014 to 2017 in the country’s three leading tuna fishing provinces - Binh Dinh, Phu Yen, and Khanh Hoa. To cost an estimated VND760 billion (US$6.1 million), it will provide soft loans to fishermen to upgrade their fishing boats or buy steel ones. Authorities will manage the fishing by issuing quotas and licences, and encourage fishermen to set up co-operatives and other models of co-operation. They will provide fishermen modern fishing and preservation technologies, with the project hoping to cut post-catch losses to less than 10 per cent. Besides improving tuna logistics services, the project will also build a specialised tuna port in Qui Nhon city that will have a refrigerated warehouse and auction market.

Source: ASM/VNS Fishermen are hauling a yellowfin tuna to shore at Dong Tac port, Phu Yen Province. Photo: Tran Duy

ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 37

Asean News Russia tightens import of Indonesia’s fisheries products Indonesia – The opportunity for fisheries products imports from Indonesia to Russia is declining. The inspection commitment made for Indonesia in April is even ignored whereas in fact the country is the potential market in Europe. The export ban of fisheries products from Indonesia to Russia by Russian fisheries products authority (Rosselkhoznadzor) has been applied since July 1, 2013. This caused the drop of Indonesia’s fisheries products export value at US$30 million in last year. At the time, Russia issued import ban for fisheries product for there is import requirement which has not been fulfilled by Indonesia. Some of the requirements are radioactive test related to nuclear contents on fish export products and bacteria test. Previously, Ministry of Maritime and Fisheries Affairs (KKP) assumed that the ban policy which has been implemented for almost one year highly harms Indonesian businessmen. This year, the export ban of Indonesia’s fisheries products to Russia has the potential to reduce export value of US$50 million. In March 2014, the Ministry had informed that the supervision authority of Russian fisheries products would come to Indonesia to conduct the inspection on fisheries exporters to the country. At the time, Russia was scheduled to come in April

2014. Regarding to the visit, the Ministry expected that the export of Indonesia’s fisheries products could be made in June. Yet, the promise was not realized. As a result, Indonesian businessmen lose their potential market.

Viet Nam plans industrial zone in Myanmar Myanmar – Viet Nam has expressed interest in a setting up of industrial zone focused on the manufacturing of basic wood products and gems and jewelry, according to a bilateral meeting. Vietnamese firms intend to invest in agriculture, fisheries, wood products, and gems and jewelry, officials said. Myanmar officials said they would help Vietnamese businesses establish the industrial zone in compliance with the Foreign Investment Law. A bilateral trade committee was formed last year between the two countries to solve disputes, and trade has increased. The committee is working to increase imports of Myanmar agriculture product to Viet Nam. Viet Nam is the eighth largest source of foreign investment in Myanmar, with a total of US$513 million invested so far. Vietnamese imports included pharmaceutical products, cement, chemical products, scientificresearch tools, machinery, electrical products,

38 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

paper, rubber and plastic. Myanmar exports included beans and peas, fishery products, teak logs and other hardwood, basic wood products and raw minerals.

Malaysians eat more fish than Japanese, reveals study Malaysia - Malaysians are among the world’s top fish consumers, eating at least 56.5kg of fish per person each year. This statistic, said fishery products expert Infofish, was way above the world average of below 20kg per capita and even slightly ahead of Japan. It said the major species consumed in Malaysia included mackerel (tenggiri), shrimp, squid, tilapia and catfish (keli). Infofish released Malaysia’s first comprehensive “Fish Supply-Demand Study”, which also found that Malaysians were increasingly buying imported and more expensive “high-value fishery products” such as cod, salmon, mussels, oysters and abalone, pushing up the price of Malaysia’s fish imports. On average, Malaysian households spend about RM100 a month to buy a variety of fish for home preparation, with mackerel, squid and shrimp the most popular varieties. Malaysians also consumed more fish than any other meat such as beef or chicken, it said. “A high percentage, 37 percent, of consumers in

Malaysia also eat fish and seafood on a daily basis and the majority, 54 percent, eat fish once to three times a week,” it said. According to the survey, 56 percent of consumers prefer to buy fish from traditional wet markets or pasar tani, citing higher quality and lower price as the top two reasons.

Viet Nam, Indonesia boost seafood cooperation Indonesia - A high-level delegation from Viet Nam’s Ministry of Industry and Trade paid a working visit to Indonesia’s Ministry of Trade to boost seafood cooperation between the two nations. The visit aimed to explore business opportunities in Indonesia and prepare for the establishment of an ASEAN Economic Community (AEC) by 2015. Saut P. Hutagalung, General Director of Fisheries Product Processing and Marketing at the Indonesian

Ministry of Marine Affairs and Fisheries (MMAF) said that his nation highlighted Viet Nam’s potential for aquatic exports as well as the country’s keen interest in investing in the seafood sector in Indonesia. Indonesia’s export turnover of shrimp, crab, alga and ornamental fish to Viet Nam climbed to US$27.36 million in January, up 32.24 percent against the same period last year. This year, Indonesia’s aquatic exports to Viet Nam are predicted to surpass US$100 million, he added. From February to June, Indonesia planned to boost aquatic exports to Viet Nam –Indonesia’s sole strategic partner in South East Asia. Saut P.Hutagalung emphasised that this is a proper time for Indonesia to increase shrimp exports as global shrimp price has risen since June due to the shortage of supply source.

ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 39

Asean News Viet Nam, Argentina sign MoU Viet Nam - A memorandum of understanding (MoU) signed with Argentina on agro-fisheries export will open up business opportunities for Vietnamese seafood processors, according to NAFIQAD. Under the MoU, signed by the National AgroForestry-Fisheries Quality Assurance Department of Viet Nam (NAFIQAD) and the National Service of Agricultural Food Health and Quality of Argentina (SENASA), 204 Vietnamese seafood products would be exported to Argentina. The number of seafood firms exporting products to that country would be increased as SENASA would review the agreement in the future. The MoU also stipulates that each shipment of Vietnamese seafood to Argentina must have a NAFIQAD certificate. The Viet Nam Association of Seafood Exporters and Producers (VASEP) said that the new export market would help seafood businesses maintain production and boost exports in the context of decreasing exports to the EU and the US.

ASC certified pangasius now available in Japan The Netherlands - AEON and World Wide Fund for Nature (WWF) Japan hosted a launch event in Tokyo in early June to celebrate that ASC certified pangasius is now available in AEON stores throughout Japan. The well attended session in one of AEON’s flagship stores provided an opportunity for customers to hear about the need for responsible fish farming from representatives of AEON and World Wide Fund for Nature (WWF) Japan. “We are proud to bring ASC certified pangasius to the Japanese market. With the ASC logo on pack we can reassure our customers that their fish purchase has been farmed with minimal impacts on the environment and on society,” said Mr Norihiko Okui, AEON General Manager, Seafood Department, Food Merchandising Planning Division. “I am excited about the rapid growth of the ASC in the Japanese market. There are already more than 60 approved Japanese products with the ASC logo, and four of them can be found in stores across the country,” said Chris Ninnes, ASC’s CEO. “After the highly successful introduction of certified salmon in Japan earlier this year, the launch of ASC certified pangasius will further boost our profile in this important market.” 40 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

AEON will source its ASC certified pangasius from CP Viet Nam Corporation. Their Ben Tre Branch farm operation has been ASC certified since July 2013. ASC certified pangasius has been available in supermarkets since September 2012. There are currently 45 pangasius farms certified against the ASC standard, and a further four farms are awaiting the outcome of their audit.

Seafood exports to reach US$7 billion Viet Nam - The Viet Nam Association of Seafood Exporters and Producers (VASEP) predicted total seafood exports would reach some US$7 billion in 2014, a 5 per cent increase over 2013. The imports will include US$3.5 billion from shrimp exports, US$1.7 billion from pangasius, US$450 million from tuna, and US$470 million from squid and octopus. Of note, at a VASEP conference in HCM City on June 19, 2014, business insiders said, for the first time VASEP witnessed a 10 per cent decrease in its membership, as difficulties and risks have forced some businesses to go bankrupt. Officials asked managerial agencies to issue concrete regulations on aquaculture and more favourable policies to assist their operations. Nguyen Thi Thu Sac, general director of the Hai Nam Ltd Company, said domestic seafood companies have often faced difficulties in purchasing materials due to competition with Chinese traders, as they must import materials. Therefore, she said the state should put in place

policies on attracting capital for developing material regions and encouraging fishermen to increase their volumes of exploiting seafood products.

Retailer praised for sourcing sustainable shrimp from Viet Nam Canada - In the recently released 2014 report, Blueyou Consulting’s Selva Shrimp® black tiger prawns were featured under the profile for Overwaitea Food Group (OFG). OFG has made some positive sourcing changes that have been praised. Namely, OFG received a “Kudos” for having replaced some of its red-¬ranked tropical shrimp with Selva

Shrimp®, which is Ocean Wise approved and rated as a green “Best Choice” by SeaChoice and The Monterey Bay Aquarium’s Seafood Watch Program. Selva Shrimp® black tiger prawns are sustainably raised in mangrove forests in southern Viet Nam, allowing for the farming of shrimp without cutting mangroves. By maintaining a functional ecosystem of mangrove forests and aquatic species, shrimp are raised using the natural productivity of the surrounding forest habitat with no external inputs such as feed, fertilizers and chemicals. In addition to offering a sustainable seafood choice, the Selva Shrimp® program also creates a direct link between consumers and small-¬holder farming communities in Southeast Asia that creates economic incentives to support and improve the conditions for small¬scale shrimp farmers and the more effective conservation of mangrove forests in coastal habitats.

ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 41

Your Partners

Hoang Long Seafood’s aquaculture feed is gaining greater trust from the farmers

Hoang Long Seafood:

Aquaculture feed for high-quality raw fish Hoang Long Seafood’s aquaculture feed could satisfy different farming standard requirements and guarantee the high quality of raw fish. By Do Van Thong

42 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

Self-confidence in the quality Hoang Long Seafoods Processing Company Limited (Hoang Long Seafood) was among the first to receive the ASC certificate for its pangasius and tilapia farms, supplying high quality frozen tilapia and pangasius fillet to the EU market. Besides, the company is also a leading aquaculture feed supplier who is gaining greater credibility. Hoang Long Seafood feed mill is equipped with modern and synchronized facilities and could produce both catfish and scaled fish feed with a firm commitment on quality. The feed not only meets all nutrition requirements

for fish of all farming stages but also takes an eye-catching form of floating pellets, which enable better absorption and rapid weight gain and therefore lower the feed conversion ratio (FCR). With the motto “Hoang Long Seafood feed pioneers the quality”, the company has successfully earned great customer trust in product quality thanks to a strict quality control system. Besides, the company has also invested in researches on quality improvement to satisfy even the most demanding import markets. “We can produce custom-made feed, including those for GlobalG.A.P or ASC farming areas. We are also

Hoang Long Seafood’s aquaculture feed mill

looking to make feed for farms that are both GlobalG.A.P and ASC certified. The integration of two standards into a feed will bring numerous benefits and convenience to the farmers,” said Mr Nguyen Anh Kiet, Head of Hoang Long Seafood’s Feed Quality Control Department.

Difficulty in raw material resources Sources of raw materials are currently the most important yet difficult issue in feed production. According to Mr Kiet, “raw fish must be ‘clean’, which does not only mean high quality, high nutrition, low FCR but also serves sustainable aquaculture purpose.” As a matter of fact, Hoang Long Seafood does not use pangasius meal as feed ingredient for pangasius. Instead, the company only uses best-quality seafish meal

that is controlled under the most stringent procedures. Beside fishmeal, soybean meal is also important in aquaculture feed production. However, the domestic soybean meal supplies are limited, so imported sources play an important role, which entails a higher level of quality control. “Ninety percent of soybean in the world market is currently genetically modified; meanwhile, customers often require pure breeds,” said Mr Kiet. To get qualified supplies, the company has established close relationships with prestigious

domestic and international suppliers. Due to lower demand, Hoang Long Seafood’s feed production has reduced from 11,000 MT per month to 8,000 MT per month. However, given such a strict quality control policy that well satisfies customers’ demands, the company is ready to grab its share when the market picks up. Compiled by Ngoc Thanh

Hoang Long Seafoods Processing Company Limited (Hoang Long Seafood) Tan Cuong Hamlet, Phu Cuong Commune, Tam Nong District, Dong Thap Province, Viet Nam Tel: +84 67 3827178 Fax: +84 67 3827179 Email: sales@hoanglongseafood.com

Website: www.hoanglongseafood.com Quality assurance: HACCP, HALAL, BRC, IFS, ISO, GlobalG.A.P, ASC EU code: DL 530 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 43

Your Partners

CPHâ&#x20AC;&#x2122;s aquafeed processing plant in Can Tho, Viet Nam

CPF to post strong gains in 2014 Bualuang Securities is expecting Charoen Pokphand Foods Public Company Limited (CPF) to post strong earnings in 2014 thanks to the companyâ&#x20AC;&#x2122;s sustained good livestock margins and improved overseas bottomlines. By Pauline Tal

44 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

or the second quarter, they expect CPF to see a 45 percent rise in profit to THB2.53 billion (nearly US$80 million), which is a big turnaround from THB842 million (US$26 million) core loss in the same period last year. The scale of recovery will be even larger in the second half of the year, said Bualuang Securities. According to them, the profit rise is attributable to slightly fatter domestic livestock margins, modestly better Thai shrimp unit numbers and stronger overseas operations (except for the Philippines and Malaysia). Turkey, Russia, India and Viet Nam will all post bottom-line improvements, it was noted. Viet Nam in particular was singled out as experiencing a swift shrimp recovery, while Indian net profit should jump 178 percent year-on-year and 39 percent quarter-on-quarter.

Malaysia, meanwhile, will post a net loss for CPF after breaking even last quarter, down to a weak shrimp business. Since early 2013, the CPF has increased its shrimp processing in Viet Nam to hedge its supply of raw shrimp after the Early Mortality Syndrome (EMS) crisis decimated Thai farmed shrimp production. Its third shrimp processing plant in the country was open early this year in the Central province of Thua Thien Hue, Viet Nam. The plant can process 60 MT of raw shrimp a day, including cooked shrimp, and it has plans to install a breading line in the future. CPF is also farming more shrimp in Viet Nam, around 20,000 MT a year from company-owned farms, some of them close to the Hue plant. The company also has a shrimp processing plant in Dong Nai, which produces the same type

Shrimp culture based on CPF Turbo Program

and amount of products as the plant in Hue. Recently, CPF Group has announced plans to construct a shrimp operation in Viet Nam to rear shrimp on sand using green house technology, the most modern, up-to-date technology that the group is already applying effectively in many other countries worldwide. Just last month, CPF also offered US$166 million to set up feed units in the Indian region of Andhra Pradesh, for both shrimp and fish. The firm wants to generate three quarters of its sales from abroad within five years, in part by targeting the so-called BRIC countries, and to offset slower sales at home. This would be up from 65 percent today, CEO Adirek Sripratak said at the Reuters ASEAN summit on March 28.

CPF gets IFFO RS certification CPF has become the first company in Asia to be certified under the International Fishmeal and Fish Oil organization (IFFO) responsible supply (RS) chain of custody standard, IFFO announced on its website on July 10. CPF is currently sourcing IFFO RS approved products from the Southeast Asian Packaging & Canning Ltd (SEAPAC) factory which is the first Asian factory to be audited and compliant against the RS standard for its fishmeal and fish oil derived from tuna by-products. CP and IFFO are also working closely with a number of interested parties in Thailand, India and Viet Nam to improve the management of the fisheries so that in future it might prove possible to use some of them as raw materials for further IFFO RS certified products, the website added. Zhonghai Ocean Science & Technology Co. of China has also been awarded IFFO RS chain of custody certification, which covers the certified material that they are currently importing from South America and Europe. It uses these in the production of added-value marine ingredients, including purified protein products and concentrated EPA and DHA nutraceutical fish oils. According to Reuters, the group plans to expand its feed and farm businesses in regional neighbors Viet Nam and the Philippines as well as in China, India and Russia. CPF is the largest agribusiness

and food conglomerate in Thailand. The companyâ&#x20AC;&#x2122;s business is divided into two major categories, livestock and aquaculture. Each of these categories comprises feed, farm, and food products. Fully-integrated ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 45

Your Partners operations help CPF’s products meet safety and traceability standards, which qualify the products for export to major importing countries, including the countries of the European Union, Asian nations, and the United States. CPF’s revenue is geographically diverse. Based on geography, the operations in Thailand accounted for 42 percent of total revenue in 2013. China operations contributed 29 percent of total revenue, followed by operations in Viet Nam (14 percent). The remaining revenue came from Turkey, Taiwan, India, and other countries, which accounted for 1 percent-5 percent each. Animal feed, which is a relatively stable source of revenue, is the largest product segment, contributing about 56 percent of total revenue in 2013. Sales of commodity-like farm products contributed 32 percent of the company’s total sales. Revenue from the sales of food products accounted for 12 percent in 2013. In 2013, CPF’s operation in Thailand was hard hit by an EMS outbreak in farmed shrimp in Thailand. The EMS outbreak cut in half the supply of farmed shrimp in Thailand in 2013. CPF’s poultry and swine businesses in Thailand recovered from oversupply situations in the second half of 2013. However, the severe loss from the shrimp business was more than offset the improvement in the livestock segment. CPF’s operating profit in 2013 slid to THB1,525 million, an 81 percent drop from 2012. In the first quarter of 2014, CPF’s operations improved noticeably. The EMS outbreak persisted in Thailand. However, performances of the livestock segment in Thailand were robust due to strong farm 46 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

prices, strong demand for chicken exports and lower cost of feed. The improved farm prices in CPF’s overseas operations, including Turkey, Viet Nam, and India, also helped increase CPF’s profit. CPF’s operating profit jumped to THB3,204 million in the first quarter of 2014, compared with a loss of THB122 million in the first quarter of 2013. Looking forward, the slow recovery from the EMS plague may cause CPF’s aquaculture business in Thailand to remain weak. However, CPF’s earnings in the short term will be bolstered by the current manageable level of grain costs and strong farm prices for livestock in Thailand, Turkey, and Viet Nam. Recently, some CPF Foods’ customers announced to stop

purchasing shrimp products from CPF, including Carrefour in Europe and Whole Foods in the US and ICA Norway. The halt was in response to a recent report published by a British newspaper Guardian alleging that CPF buys fishmeal from vessels employing slave labor. However, according to CEO Adirek Sripratak, the suspension of orders by trading partners in the United States and European Union had only a small impact; CPF Foods has more than 100 buyers in the US with a combined annual import value of THB4 billion. Therfore, CPF is confident that it will generate a sales growth of 15 percent this year despites the situation. P.T Photo: Anh Ngoc

Charoen Pokphand Foods Public Company Limited (CPF) C.P. Tower, 313 Silom Road, Bangrak, Bangkok 10500, Thailand Telephone: +66 (0) 2625 8000 CPF Consumer Center: +66 (0) 2800 8000 Fax: +66 (0) 2625 2139 Email: consumercenter@cpf.co.th Website: http://www.cpfworldwide.com Headquarters: Thailand, China, India, Laos, Malaysia, Philippines,

Russia, Taiwan, Turkey, United Kingdom Main products: Fresh product (chicken, egg, pork, duck, shrimp, fish) and cooked food product (ready meal, ready to eat). Main markets: Australia, China, EU, Hong Kong, Japan, Russia, Singapore, South Africa, South Korea, UAE, US.

Premises of Ba Hai Co., Ltd

Ba Hai Co., Ltd asserts the aquatic brand of the Central coastal region Ba Hai Company Limited (Ba Hai Co., Ltd) is one of the largest seafood exporters in Phu Yen Province, whose annual export value touches up to tens of millions of US dollars. With the diverse local resources of tuna and other marine species, Ba Hai-branded products are increasingly boosting their prestige and quality on both the domestic and international markets.

By Tran Duy

Improving technology and processing capacity Ba Hai Co., Ltd has grown from Ba Hai Private Enterprise specializing in shrimp farming and seafood processing in Phu Yen Province. At first, the company had only one small processing workshop with two farms in Tuy An and Song Cau districts, distributing products primarily to retailers in the province. To seize opportunities of export markets, the companyâ&#x20AC;&#x2122;s leaders decided on the strategy of technological innovation, production expansion and processing capacity enhancement. On May 6, 2005, Ba Hai Co., Ltd was granted the new business registration certificate with the charter capital of VND8 billion (about US$500,000 at that time).

Mr Le Hai Dang, Deputy Director of Ba Hai Co., Ltd

In 2008, the companyâ&#x20AC;&#x2122;s processing factory with the capacity of 2,000 MT per year was built and put into operation in An Phu Industrial Park, specializing in processing soft shell crab for export. In 2009, the company acquired the processing factory of Phu Yen Seafoods Co., Ltd in Hoa Hiep ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 47

Your Partners

Processing tuna in Ba Hai Co., Ltd

Industrial Park and invested almost VND30 billion (about US$1.7 million then) more to upgrade the production line in accordance with EU standards and increase the processing area from 3,600 square meters to 6,000 square meters and cold storage capacity from 300 MT to 1,200 MT. The amount was also spared for purchasing made-inGermany shrimp boiling and flash freezing equipment that makes the finished product for 30 minutes with the capacity of 500 kilograms per hour, meeting export standards to austere markets such as Europe, Japan, South Korea and the US. Therefore, the annual processing capacity has soared from 3,000 MT to 10,000 MT, generating an annual turnover of US$20-30 million and 48 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

creating 500-600 jobs for the locals. These two factories are recognized as the most cuttingedge processing establishments in Phu Yen Province specializing in frozen seafood products with local strength such as vannamei shrimp, tuna and soft shell crab. According to Mr Le Van Hong, Director of Ba Hai Co., Ltd, it is extremely necessary to upgrade production facilities and innovate processing technology, aiming to take the fullest advantage of local materials, enhance the product value and assert the company’s brand on demanding markets. With that motto, Ba Hai-branded products have earned growing reputation, obtaining the Gold Cup and the award “Viet Nam Seafood

Golden Quality” granted by the Viet Nam’s Ministry of Agriculture and Rural Development and Fisheries Society for the first time in 2010.

Strengthening the brand all the time Besides an upturn in production capacity, Ba Hai Co., Ltd has diversified aquatic products in line with the demand of export markets. With an abundance of tuna resources, the company has launched a number of high value products for export such as tuna fillets, smoked tuna, canned tuna, tuna saku, tuna steak, etc. There are also many other specialties made from swordfish, marlin, mackerel, soft shell crab, shrimp, fish, squid, and octopus.

To satisfy the export standard, the company has adopted the HACCP food safety control system by investing in production facilities and training workers to adhere strictly to food safety regulations during manufacturing stages. Its two factories have been accredited for exports to the EU by the National Agro Forestry Fisheries Quality Assurance Department (NAFIQAD), helping the company penetrate the EU and facilitate the access to the world market. In 2011, Ba Hai Co., Ltd signed the US$20 million contract with Ocean Trading Co., Ltd (Japan), offering a good chance for the company to sell its products to Japan and develop the brand in the market. According to Mr Le Hai Dang, Deputy Director of Ba Hai Co., Ltd, a lack of raw materials has been the biggest concern of the company in rainy seasons. To remain a stable source of raw materials, Ba Hai has had to set up the seafood purchasing network from Quang Ninh to Kien Giang provinces. In Kien Giang, it has opened a branch in Ha Tien Town to purchase and semi-processed materials before transporting them to Phu Yen to make finished products for export. On July 5, 2013, the leaders of Ba Hai Co., Ltd and CEO of the Electronic Traceability Project “TraceVerified” Dr. Nguyen Thi Hong Minh signed the memorandum of cooperation to build an electronic traceability system for the tuna supply chain. This event represented a breakthrough in the company’s strategic vision in the era of the international integration, consolidating its impregnable position in large markets such as

Shrimp being processed for export in Ba Hai Co., Ltd

the US and EU. With electronic traceability, the company will be able to provide buyers and consumers with ability to locate and follow its products’ history, thereby enhancing their confidence. In 2013, Ba Hai Co., Ltd also joined hands with a Thai enterprise to build a VND18 billion (US$860,000) fish cannery on an area of 2,600 square meters, aspiring to fulfill the domestic and

foreign retail demand. Skipjack tuna and other kinds of tuna are the main source of raw materials for processing. The presence of the factory is expected to create 150 more jobs and enrich the company’s product line, bringing it considerable competitive advantage in the national and global markets. Compiled by Minh Chau

Ba Hai Company Limited (Ba Hai Co., Ltd) Lot A9 – A11, Hoa Hiep Industrial Zone, Dong Hoa District, Phu Yen Province, Viet Nam Tel: +84 57 3548828; Fax: +84 57 3548838 Email: bahaiseafood@vnn.vn Website: www.bahai.com.vn

Quality assurance: HACCP, SSOP, GMP EU code: DL 481, DL 198 Main products: Yellowfin tuna, skipjack tuna, vannamei shrimp, soft shell crab Main markets: EU, the US, Japan

ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 49

Your Partners

Australis Viet Nam’s barramundi farm at Van Phong Bay, Khanh Hoa Province, Viet Nam. Photo: Tran Duy

Australis barramundi ranked a “Best Choice” for sustainability First Open Ocean-Farmed Fish to Receive Monterey Bay Aquarium’s Highest Ranking.

50 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

ustralis Aquaculture, the world’s largest producer of barramundi announced in early June this year that Australis’ Viet Nam farm received a Monterey Bay Aquarium Seafood Watch®

program “Best Choice” “green” rating for sustainability. Seafood Watch experts conferred their “Best Choice” rating on Australis’ off-shore marine farm after an extensive, multi-

year evaluation of the company’s operations. This designation represents the first ever “Best Choice” ranking for a fish grown in open marine net-pens. Regarded as one of the most respected seafood assessment systems, Seafood Watch recommendations provide consumers, chefs and wholesale buyers with unbiased science-based guidance about the environmental sustainability of a wide range of farmed and wildcaught seafood products. For farmed fish, the program evaluates a wide range of potential impacts including feed efficiency, habitat and water quality impacts, disease, use of chemicals, and escape risks. For more details on the assessment, visit www.seafoodwatch.org. Australis Aquaculture was founded in 2004 and has been operating in Central Viet Nam since 2007. The company’s farming operations draw on a hybrid approach that combines on-shore closed containment tanks with off-shore grow-out cages in the open ocean. Low-density stocking, lack of chemical usage and closely monitored feeding all contributed to the “Best Choice” ranking. Australis’ land-based recirculating farm in Massachusetts received a Seafood Watch Best Choice ranking in 2006. “We have been working toward this ‘Best Choice’ ranking since the very beginning,” said Josh Goldman, Australis CEO. “We received a ‘Best Choice’ rating for our land-based barramundi farm in 2006 and have always believed that the same level of sustainability was achievable on our marine farms. We are thrilled that Seafood Watch has acknowledged our accomplishments through the ‘Best Choice’ ranking and look forward to

The Seafood Watch program assesses a wide range of potential impacts including feed efficiency, habitat and water quality impacts, disease, use of chemicals, and escape risks in its ranking. Barramundi farmed in recirculation systems in the US are also ranked as“best choice”, while barramundi farmed in fully recirculation systems in Australia is marked as the next best choice, the yellow option, called“good alternative”. However, barramundi farmed in open ocean systems in the Indo-Pacific outside of Australia, and caught wild in Indonesia is marked as fish to“avoid”.

Grow-out barramundi harvest from Australis Viet Nam’s farm. Photo: Tran Duy

ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 51

Your Partners having more consumers and retailers experience the mild flavor, nutrition and sustainability benefits of our barramundi,” Goldman added. Chefs, foodies, bloggers and other food influentials in the local and sustainable food movement have been embracing barramundi and introducing it onto white table cloth menus as a substitute for popular, though endangered species like grouper, snapper or Chilean seabass. “To see a business like Australis take the lead in innovating new and sustainable ways to farm a species like barramundi is both exciting and encouraging,” said Barton Seaver, Chef and Director, Healthy and Sustainable Food Program at the Center for Health and the Global Environment at Harvard, and a Fellow at the New England Aquarium.

About Australis Aquaculture Australis Aquaculture is an award-winning provider of healthy, sustainable seafood, marketed under the banner of The Better Fish®, A Better Fish, A Better World, A Better You™. The company spearheaded the introduction of barramundi as a key culinary trend in North America, and now offers a full line of barramundi products to the retail and foodservice markets under the Australis, Clean Harvest and The Better Fish brands and through private label products. The company operates two barramundi farms and sells its products to leading retailers and foodservice companies in North America, Australia, Asia and Europe. Source: PRNewswire/ Undercurrentnews

Australis barramundi

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Australis Aquaculture Vietnam Limited Floor #2, Nha Trang Center Building, 20 Tran Phu Street, Nha Trang City, Khanh Hoa Province, Viet Nam Tel: 84-58 3823475 Fax: 84-58 3823477 Website: www.thebetterfish.com

Tuna processing at BIDIFISCO’s plant in Quy Nhon, Binh Dinh.

Bidifisco Augmenting the value of Vietnamese tuna Lavishing its resources on building the material purchasing system and comprehensive cooperation with partners in the tuna value chain, Binh Dinh Fishery Joint Stock Company (Bidifisco) is striving for a stable supply of quality materials, contributing to strengthening the brand of Vietnamese tuna. By Do Van Thong

“Birds of a feather flock together” Since the early days of equitization in March 2009, Bidifisco has asserted the trailblazing role in procuring, processing and exporting tuna. The company’s export sales have grown steadily at the average annual rate of 10-15 percent. Despite harsh conditions, the company shipped over 6,000 MT of seafood in 2013, valued at US$34.6 million, up over 8 percent compared with the previous year. Binh Dinh Province has a large offshore fishing fleet with more than 2,000 boats of at least 90 HP and experienced fishers operating in fishing grounds around the country. Local tuna resources appear high

Ms Cao Thi Kim Lan, Director of BIDIFISCO

with the annual yield of 45,000 MT. Therefore, Bidifisco decides on the strategy of developing staple products from offshore caught sea fishes, especially tuna. Marine fishes, including yellowfin tuna, skipjack tuna, mahi-mahi, marlin, oilfish, swordfish, wahoo, red snapper and leatherjacket fish, are processed into ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 53

Your Partners

BIDIFISCO purchased raw materials for processing through its network of buyers

a variety of types such as whole, fillets, portions, loin, steak, cube, saku, etc. These Bidifisco-branded products have now been available in Europe (60 percent), the US (20 percent) and Asia (10 percent). It is of great importance for Central seafood enterprises to build a network of raw material buyers to ensure a stable supply of quality materials for production. Ms Cao Thi Kim Lan, Director of Bidifisco said, “We have a very close and long-standing relationship with the system of agents, intermediaries and boat owners. Right from the very first days of equitization, the company has issued shares, setting up a network of shareholders specializing in different tasks to develop the material purchasing system around Central provinces from Phu Yen, Binh Dinh, Quang Ngai, Quang Nam, Thua Thien Hue to Quang Binh.” Despite having not met 100 percent of the demand for raw

materials, the mottos “Birds of a feather flock together” and “win-win” have helped the company gain a quite stable supply throughout the year with approximately 4,000-5,000 MT for two processing factories having the total annual capacity of 5,000-6,000 MT, creating jobs for more than 800 local people with steady income. By dint of the good strategy, Bidifisco has formed the value chain from capturing, purchasing to processing and export, bringing about production confidence for all participants in the chain.

Bumping up the value of tuna “Vietnamese tuna has tasty meat and nice color, hence being a favorite dish of world consumers. However, the majority of tuna after being caught has not maintained good quality due to improper fishing practices and preservation methods as well as inadequate fishing logistics services.

54 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

As a result, tuna must be processed instead of being kept whole, fetching a very low export price. If being able to satisfy the sushi making quality, the tuna value will soar, even up to 9-10 times higher than the current price,” Lan noted the main stumbling block in the tuna value chain. Since the idea of building the project “Tuna production in the value chain” was initiated by Binh Dinh Province in the middle of February 2013, Bidifisco has taken active part in it and become one of driving forces behind the activities to enhance the value in the production chain. Under the project, the company will closely cooperate with five boat owners in the model through offtake agreements that stipulate the process of capturing, transportation, preservation and delivery to ensure the quality and value of tuna. Bidifisco now commits to purchasing tuna of export quality

Ms Cao Thi Kim Lan (first from the left), Director of BIDIFISCO attending the forum “Tuna production in the value chain” on April 2, 2014 in Tuy Hoa City, Phu Yen Province

in this model at the price at least 20 percent higher than the market price, whereas the fish below the standard will be procured at the market price. In addition, it has the exclusive right to purchase tuna from five boats in the model. The company will do packaging, quarantine and customs procedures for transporting tuna by air from Ho Chi Minh City, Viet Nam to Osaka, Japan, and work with Kato Hitoshi General Office Co., Ltd, its legal representative in Japan to put tuna up for auction in this market. After deducting expenses such as import duties, customs clearance, transportation, loading and auction participation from the sales, Kato will transfer the remaining amount to Bidifisco. As a partaker in the project “Tuna production in the value chain”, Bidifisco has obtained a stable supply of quality raw materials from local sources, thereby reducing the reliance on imports. This first model is expected to bring many benefits to interested parties in the tuna value chain.

“With the Japanese-standard fishing technology and skilled fishers, tuna is projected to reach Japanese consumers within seven days after catching. Thus, the product can satisfy quality requirements, increasing profits

for both fishers and enterprises and building the brand of Vietnamese tuna,” Lan said excitedly. Compiled by Minh Chau

Binh Dinh Fishery Joint Stock Company (Bidifisco) 2D Tran Hung Dao Street, Quy Nhon City, Binh Dinh Province, Viet Nam Tel: +84 56 3892 130/3892 004/3892 523; Fax: +84 56 3892 355 Email: info@bidifisco.com.vn Website: www.bidifisco.com Quality assurance: HACCP, SGS, ISO 22000:2007/ISO 22000:2005,

TCVN 9001:2008/ISO 9001:2008 EU code: DL 57 Main products: Marine fishes (yellowfin tuna, mahi-mahi, marlin, oilfish, swordfish, wahoo), shrimp, squid Main markets: the US, Japan, EU, China, Korea, Taiwan ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 55

Industry’s News CP Prima to increase Fiesta Seafood production Indonesia’s largest shrimp and aquafeed producer Central Proteinaprima, popularly known as CP Prima, this year has targeted to escalate the production of its Fiesta Seafood products such as shrimp nuggets, shrimp roll and ebi fry by 1500 tonnes. Marketing Director Sutanto Sudjaja said the increasing demand for processed shrimp and fish products in the country led the company to increase its production. CP Prima’s Fiesta Seafood products are sold at major retailers and also in institutional markets such as hotels and restaurants. “We target to sell our products at 4000 retailers in Indonesia,” said Mr Sutanto, adding

that the products will also be sold at CP Indonesia’s Prima Freshmart retail outlets.

Thai Union Frozen shares surge Shares in Thai Union Frozen Products Pcl surged in early July on speculation that Thailand’s biggest canned tuna producer could be interested in buying Bumble Bee Foods of the United States, brokers said. Bumble Bee Foods is preparing a sale process that could value North America’s largest producer and marketer of canned tuna and sardines at as much as US$1.5 billion, according to people familiar with the matter. The Thai company said in a statement it could not comment on the speculation but it was its strategy to expand through mergers and acquisitions. Nomura Pattanasin analyst Koraphat Vorachet said the company’s strong finances would help it find funding for any expansion and acquiring an overseas tuna business would help earnings. “In terms of business synergy, it should be good for the company,” he said. Thai Union Frozen shares rose as

much as 3.5 percent to 67.5 baht on July 4, the highest since June 12. The stock was up 2.7 percent at 04:15 GMT, outperforming the main market index which was 0.4 percent.

Seanamico farmed black tiger shrimps confirmed Friend of the Sea Seanamico has positively concluded Friend of the Sea renewal audit for black tiger shrimps from sustainable aquaculture. Seanamico’s products can now proudly display the international Friend of the Sea sustainability seal of approval. The farming site is located in the coastal area of Ca Mau province in Viet Nam. From an environmental perspective, Seanamico conducts a low impact aquaculture which complies with all Friend of the Sea standards. The farming activity generates no critical alteration to the surrounding ecosystems, such as the mangrove forest. An advanced system of monitoring screens and sluice gates prevents escape of farmed 56 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

shrimps and entrance of other organisms. “We believe that Friend of the Sea is the best recognized aquaculture sustainability standard”, claims Mr Ngo Minh Hien of Seanamico. “The achievement of this certification is a very clear message to our customers about our commitment”. “Seanamico is a very good example of sustainable seafood production”, comments Paolo Bray, Director of Friend of the Sea. Established in 1983, Seanamico has 2 factories. Its major products are black tiger prawn, white and pink shrimp.

Vinh Hoan Corp. makes Forbes Viet Nam’s top 50 Out of 680 listed companies, the potential candidates must satisfy 3 requirements: market capitalization larger than VND300 billion, sales of fiscal year 2013 larger than VND150 billion, and positive net profit after tax for fiscal year 2013. These companies then go through two rigorous selection processes based on 5 financial indicators: compound annual growth rate of revenue, net profit, average ROC, ROE and EPS for five-year period from 2009-2013. The chosen companies not only have high-ranking financial performance but also have good corporate management, branding, and growth potential. As of April 25, 2014, total market capitalization of these 50 companies reached VND741 trillion,

accounting for 65 percent of the combined capital of the HCM City Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX). With its 2013’s revenue of VND5,100 billion and market capitalization of VND1,980 billion, Vinh Hoan Corp. has outperformed its competitors in the seafood industry to become the only company shortlisted.

Minh Phu – Hau Giang Seafood Corp recognized as prioritized enterprise Minh Phu – Hau Giang Seafood Corp, an affiliate of the Minh Phu Seafood Corporation, has been recognized as an elite seafood company by Viet Nam Customs. With this title, the company will enjoy faster customs clearance for goods imports and exports. One of criteria to become a prioritized enterprise is to reach export turnover of US$50 million (for those importing and exporting agricultural, seafood, textile and garment, and footwear products). The duration of customs priority regime will be 36 months. After that, Viet Nam Customs will evalualte and extend the duration. So far, Minh Phu Seafood Corporation has two member companies which are recognized as elite seafood companies. Minh Phu Seafood Corporation and other eight enterprises received the title in 2011.

Currently, Viet Nam has 20 enterprises that are recognized as elite companies by Viet Nam Customs. This year, the country is expected to have five more elite enterprises.

Four companies join up to cultivate pearl oyster in Viet Nam Long beach group is in incorporation with Tahiti Pearl Company in French Polynesia, Kuramoto Pearl Company Co., Ltd. in Kobe Japan and Rio Pearl Company in Hong Kong to establish Phu Quoc Beach Pearl Corporation. Long Beach has brought in research and technology to raise Akoya oysters in Phu Quoc while processing crude fine pearls from many countries and make them into unique and beautiful jewelries. Phu Quoc Beach Pearl JSC recently inaugurated

their new brand ‘Long Beach Pearl’ with the opening of Phu Quoc pearl showroom which wows visitors from all over the world with thousands of eye catching beautiful and elegant designs for necklaces, earrings, bracelets, rings and pendants which can be worn casually, at work or wedding party by women at all ages. As the newest and largest pearl center in Phu Quoc, it is a definite place to visit while traveling on this beautiful island. ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 57

Business Feature

Challenges and opportunities in the utilization of fisheries by-products Thus, fish processing generates considerable quantities of byproducts and meat from most portions such as heads, frames, belly flaps, liver and roe. These contain high-quality proteins, lipids with long-chain omega-3 fatty acids, micronutrients (such as vitamin A, D, riboflavin and niacin) and minerals (such as iron, zinc, selenium and iodine).

Crispy cod skin with cod roe emulsion. Photo: Natalie Martin

lobally, almost 70 million tonnes of fish are processed by filleting, freezing, canning or curing. Most of these processes result in byproducts and waste. For example, in the fish filleting industry, the product yield is often about 30â&#x20AC;&#x201C;50 percent. Global production of tuna species was 4.76 million tonnes live weight in 2011 while that of canned tuna was almost 2 million tonnes in product weight. Solid wastes or by-products generated by the tuna canning industry could be as high as 65 percent of the original material, and this includes heads, bones, viscera, gills, dark muscle, belly flaps and skin. The tuna loin industry 58 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

reportedly generates about 50 percent of raw material as solid wastes or by-products. Global production of farmed salmon was about 1.93 million tonnes in 2011; most of the fish are filleted, and some of these fillets are smoked before marketing. The fillet yield in salmon is reportedly about 55 percent. A large proportion of farmed tilapia (global production about 3.95 million tonnes in 2011) is marketed in filleted form, and the fillet yield in this species is about 30â&#x20AC;&#x201C;37 percent. Annual production of pangasius exceeds a million tonnes, most of it going for distribution in filleted and frozen form. The fillet yield in this species is about 35 percent.

Utilization of by-products for human consumption Cod processing industries in Iceland and Norway have a long tradition of using byproducts for human consumption. In 2011, Iceland exported 11,540 tonnes of dried cod heads, mainly to Africa, and Norway exported 3,100 tonnes. Cod roes can be eaten fresh after heat treatment, or they can be canned or processed into roe emulsions for use as sandwich spread. Cod livers can be canned or processed into cod liver oil, which people were consuming long before the health benefits of long-chain omega-3 fatty acids were recognized. A 2010 study in the Norwegian salmon industry

showed that, of the 45,800 tonnes of heads, frames, belly flaps and trimmings generated by five of the largest companies in the filleting industry, 24 percent (11,000 tonnes) went for human consumption, with the rest processed into feed ingredients. Production of salmon mince or scrape meat from byproducts for use in patties and sausages is gaining in popularity. When gutting and filleting of salmon takes place at the end of the supply chain (e.g. in supermarkets), customers may purchase the heads, frames and trimmings for use in soups or other dishes. The tuna industry has made

significant progress in the utilization of by-products for human consumption. Thailand is the world’s largest producer of canned tuna and annually exports about half a million tonnes of it, utilizing domestic landings and imports of about 0.8 million tonnes of fresh or frozen raw material. What goes into canned tuna is only about 32– 40 percent of the raw material. The dark meat (10–13 percent) is packed in cans or pouches as pet food. One by-product company in Thailand produces about 2,000 tonnes of crude tuna oil annually, which is further refined for human use. Fully refined tuna oil has 25–30 percent

docosahexaenoic acid (DHA) in addition to eicosapentanoic acid (EPA), and it helps to fortify food products such as yoghurt, milk, infant milk formulas and bread. During the canning process, tuna is precooked before trimming and packing into cans. The cooking juice has up to 4.8 percent proteins and a chemical oxygen demand of 70,000–157,000 mg/litre. In Thailand, the canneries hydrolyse the cooking juice with commercial enzymes and concentrate the juice, and this concentrate is used as a flavouring agent or sauce or condiment. After Thailand, the Philippines is the second-largest producer of canned tuna in Asia. In 2011, its tuna catch was 331,661 tonnes live weight, with a meat recovery rate for canned tuna of about 40 percent. The dark meat (accounting for about 10 percent) is canned and some is exported to countries such as Papua New Guinea. Dark meat is of higher nutritional quality than light meat owing to a higher content of long-chain omega-3 fatty acids, minerals such as iron (mainly in the form of haem iron, which has high bioavailability), and some vitamins. However, it is necessary to preserve dark meat under antioxidative conditions, such as canning, as the polyunsaturated fatty acids are prone to oxidation. The local population use the heads and fins in fish soup. Visceral organs such as liver, heart and intestines are ingredients in a local delicacy, “sisig” (traditionally made from diced ears, bits of brain tissue and chopped skin from the head of a pig, cooked in oil with spices and served sizzling on a heated earthenware plate). Visceral organs of tuna are also raw material for fish ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 59

Business Feature sauce production. Tuna roe, gonads and tail parts are frozen and sold for human consumption on the domestic market in the Philippines. The Philippines also produces fresh-chilled/frozen yellowfin and bigeye tuna for export. By-products such as heads, bones, belly, fins, ribs, tail and black meat account for about 40–45 percent of the weight of the raw material. These are sold on the local market for human consumption. Heads, bones and

fins are main ingredients in soups. The tail, belly and collar bone are frozen, sometimes vacuum packed and distributed through grocery stores, supermarkets and seafood restaurants throughout the Philippines. Before consumption, they are fried, grilled or stewed. Scrap meat goes into sausage, nuggets, burger patties, tuna ham, tuna fingers and local recipes such as “siomai” and “embutido”. Snack foods from tilapia skin

are popular in Thailand and the Philippines, where skin with the scales removed is cut into strips, deep fried and served as an appetizer. In some countries, the trimmings and heads from the filleting industry are used in soups and ceviche. Equipment to recover flesh through deboning is available, and the recovered flesh forms a base for fish sticks, fish sausages, fish balls and fish sauce. In Viet Nam’s pangasius processing industry, the fillet yield is about 30–40 percent and the by-products go mainly to fishmeal, but some companies do produce Pangasius oil suitable for human consumption. Dark muscle and trimmings are used along with potato or rice in fish minces that are marketed locally in Viet Nam.

Utilization of by-products for animal feed

Phillippino delicacy, sisig, made of tuna visceral organs such as liver, heart and intestines. Photo: internet

Salmon mince or scrape meat from by-products can be used use in patties. Photo: http://www.frugalcooking.com

60 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

Global demand for fishmeal and fish oil has been increasing, as have their prices. Hence, these are no longer low-value products. There is an increasing trend in the use of pelagic fish directly for human consumption rather than for fishmeal and this, combined with measures such as tight fishing quotas and improved regulation and control of feed fisheries, has contributed to the increase in the prices of fishmeal and fish oil. As a result, the proportion of fishmeal coming from fish processing byproducts increased from 25 percent in 2009 to 36 percent in 2010. Thailand, Japan and Chile are large producers of fishmeal from byproducts. According to estimates by the International Fishmeal and Fish Oil Organisation, the aquaculture industry utilized 73 percent of the fishmeal produced in 2010 and, therefore, this product

Fish bone and tail after filleting. Photo: internet

contributes indirectly to food production. In the case of fish oil, the estimates are that 71 percent goes for aquafeed and 26 percent for human consumption. In many countries, fish processing establishments are small or medium-sized, and the amount of processing by-products generated may not be sufficient to justify running a fishmeal plant. Producing silage from these byproducts would be a convenient and relatively inexpensive way of preserving them. This is common practice in Norway, where silages from different farmed salmon slaughtering plants go to a centralized processing plant. The pooled silage is then processed into an oil and aqueous phase that evaporates to a concentrated fish protein hydrolysate with a dry matter content of at least 42–44 percent. This is used along with fish oil in feed for pigs, poultry and fish other than salmon. Some large fish-slaughter plants process byproducts using commercial enzymes to obtain hydrolysates and oil of very high quality.

Nutraceuticals and bioactive ingredients Long-chain polyunsaturated fatty acids, EPA and DHA are perhaps the most commercially successful marine lipids derived from fish oils. Despite starting slowly in around 2000, the market for omega-3 has grown considerably. According to some market studies, the global demand in 2010 for omega-3 ingredients was US$1.595 billion. The pharmaceutical and food industries use gelatine as an ingredient to improve properties such as texture, elasticity, consistency and stability. Global gelatine production in 2011 was about 348,900 tonnes, with 98–99 percent coming from porcine and bovine hides and bones and about 1.5 percent from fish and other sources. The market price for fish gelatine tends to be 4–5 times higher than that of mammalian gelatine, but it has applications in halal and kosher foods. Because of its rheological properties (in terms of physical consistency and flow), gelatine from warmwater fish can be an alternative to bovine gelatine

in food and drug coatings. Gelatine from coldwater fish has applications in frozen and refrigerated foods. Chitin and its deacetylated form, chitosan, have many applications in food technology, pharmaceuticals, cosmetics and industrial processes. Chitin is present in shrimp shells. Industry estimates suggest that the global market for chitin and chitosan in 2018 could be 118,000 tonnes in terms of product weight. Chitin is used instead of chemicals as a flocculant for water treatment, and this application is common in Japan, which is the largest market for chitin and chitosan. The next-largest application is in the cosmetics industry – in hair and skin care products such as shampoo, conditioners and moisturizers. Glucosamine, the monomer of chitosan, has nutraceutical and pharmaceutical applications. Glucosamine, along with chondroitin sulphates, is used in products to improve the health of joint cartilage and also in the food and beverage industry. Among aquaculture producing countries, China, Thailand and Ecuador have well-established chitin and chitosan industries. A number of nutritionally valuable proteins/peptides from fisheries by-products with functional, antioxidative or other bioactive properties have been reported. Commercial peptide products derived from hydrolysed dried bonito with claimed health benefits, such as lowering blood pressure, are available on the market. There are also products from hydrolysed whitefish with health claims such as lowering glycaemic index, improving gastrointestinal health, acting against oxidative stress and having ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 61

Business Feature relaxing effects. It is possible that some of these involve the use of fillets rather than by-products. The United States market for protein ingredients in 2010 was worth an estimated US$45â&#x20AC;&#x201C;60 million, but fish peptides have to compete with products from milk proteins such as caseins and whey and soy proteins.

Challenges facing the fisheries by-product industry

Fish head. Photo: Joseph Robertia

Fish processing by-products are highly perishable and, therefore, they need preserving as soon as they are produced. However, fish processing establishments in many developing countries are medium or small scale, and may not have facilities to preserve small volumes of by-products generated. Thus, investments (in terms of finance, infrastructure and human resources) in this area may not be profitable. Where the by-products are for human consumption, they need to be handled and processed in compliance with systems based on good hygienic practice, good manufacturing practice and Hazard Analysis Critical Control Points (HACCP) safety management. Major challenges facing the fish gelatine industry, for example, are certification of the raw material, and the variable quality of the raw material in regard to parameters such as colour and odour. Moreover, fish gelatine is not able to compete with mammalian gelatine on price. The recovery yield of chitosan from shrimp waste is reportedly only 10 percent, and to produce good-quality chitosan, proper preservation of the shrimp waste is essential. In addition, the use of corrosive acid and alkaline conditions in its production requires

specially adapted equipment and working conditions. There are many scientific studies on the development of by-products for neutraceutical and pharmaceutical applications, but there are certain hurdles in commercializing these products. For example, pigments such as astaxanthin found in crustacean shells have to compete with synthetic astazanthin and native astaxanthin from microalgae that can be produced much more economically. Genetically engineered micro-organisms are in commercial use for the production of enzymes such as shrimp alkaline phosphatase and cod uracil-DNA glycosylase isolated from the liver of Atlantic cod. These enzymes were originally detected and characterized in byproducts from the processing of shrimps and Atlantic cod, respectively. For nutraceuticals and health supplements on the market, specific health claims have to gain approval from regulatory authorities such as the United States Food and Drug Administration, European Food Safety Authority, or Food for Specified Health Uses (Japan). To obtain such approval, it is necessary to provide positive results from studies on humans, and such

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studies are usually very expensive. The most realistic uses of byproducts from fish processing are as food or indirectly as food by producing feed ingredients. The use of by-products for the isolation of highvalue bioactive compounds is, with the exception of long-chain omega-3 fatty acids from certain sources, not realistic in many cases. Important reasons for this are: the lack of existing markets; the too limited amounts of high-quality by-products available on a regular basis; the high costs of isolating specific components often present in small amounts; and the challenges connected with providing the necessary documentation for a potential nutraceutical or health supplement. Overcoming these and other challenges will allow the current trend of reducing wastage and increasing utilization of fish by-products to continue, resulting in enhanced economic, social, conservation and environmental benefits. New developments in science and technology, combined with investments and improved practices in the processing industry, can all contribute to this. An extract from â&#x20AC;&#x153;The State of World Fisheries and Aquaculture 2014â&#x20AC;?

Fishing

Vietnamese tuna industry boosting value chain collaboration During the forum on organising tuna value chain in Tuy Hoa City, Phu Yen Province last April, a reporter of the Vietfish International magazine (VF), interviewed Mr Vu Dinh Dap, President of the Viet Nam Tuna Association (Vinatuna) about recent developments in the industry. By Tran Duy

VF. There has been a new cooperation model of purchasing tuna from fishing boats while they are still at sea to increase the fish quality and extend the fishing trip. Could you provide more details about this model? Mr Vu Dinh Dap. Between 2011 and 2013, we did three experiments of tuna procurement at sea, i.e. two with the logistic vessel of the Navyâ&#x20AC;&#x2122;s Division 128 at Cam Ranh Port in Khanh Hoa Province and one with Hai Vuong Fisheries Joint Stock Company in Thanh Hoa Province. To collect the whole tuna catch from fishing boats operating at sea, we use large capacity vessels (over 1,200 HP) in good physical

conditions and called them mother vessels. However, these experiments were all unsuccessful. Both companies participating in the model each posted nearly VND200 million of loss per trip, so they decided to back out. VF. What was behind the failure? Mr Vu Dinh Dap. During the experiments, we noticed some problems. First, because fishing boats were mostly made of wood and small in size while procuring vessels had much larger size, they cannot get close enough for transshipping in stormy and rainy conditions. Second, fishing boats were ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 63

Fishing mostly longliners with each longline approximately 10 miles long. In addition, as these boats were far from each other, it would make no sense for the mother vessels to stay put while collecting fish from fishing boats. On the other hand, fishers continuously moved from one place to another, making mother vessels difficult to locate and contact them. Third, most fishers did not sell all the fish caught to mother vessels. Sometimes, they put up poor quality fish for sale at sea while keeping good fish to be sold for higher prices on the shore. Prices are another issue. In case of onshore trading, buyers and sellers could discuss directly before reaching the agreement on prices. However, it would be much trickier to negotiate the price via walkie-talkie on the sea.

Mr Vu Dinh Dap, President of Vinatuna

VF. What do you think about the cooperation between boat owners/ fishing teams and providers of procurement and logistics services on the sea to cut down on intermediaries? Mr Vu Dinh Dap. This is merely the idea. In reality, I only see a few local fishers spontaneously provide logistics services for others. Two typical examples are sea crab

Ministry unveils plans to modernise tuna fishing The Ministry of Agriculture and Rural Development plans to create a production chain involving fishing, processing, and consumption of tuna. The trial project aims to improve tuna output, quality, and value addition as part of efforts to industrialise and modernise the industry. It will be carried out from 2014 to 2017 in the country’s three leading tuna fishing provinces - Binh Dinh, Phu Yen, and Khanh Hoa. To cost an estimated VND760 billion (US$36.1 million), it will provide soft loans to fishermen to upgrade their fishing boats or buy steel ones. Authorities will manage the fishing by issuing quotas and licenses, and encourage fishermen to set up co-operatives and other models of cooperation. They will provide fishermen modern fishing and preservation technologies, with the project hoping to cut post-catch losses to less than 10 per cent. Besides improving tuna logistics services, the project will also build a specialised tuna port in Qui Nhon city that will have a refrigerated warehouse and auction market. Last year the country’s tuna exports to 112 markets were worth more than $526 million, ranking third out of the country’s major fisheries exports after pangasius and shrimp. But the industry faces challenges like the stricter quality and origin requirements, international organisations and consumers’ demand for sustainable exploitation, and fierce global competition, according to the Viet Nam Association of Seafood Exporters and Producers.

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fishermen in Vung Tau - they pool all catches together and put them on one vessel for transport to the shore, and purse seiners – if they find the fish at certain fishing ground more than abundant, they will call other fishers. Some middlemen have recently proposed using floating rafts for purchasing fish at sea. However, it is just an idea until fishers themselves wish to implement it. Middlemen are blamed for manipulating tuna prices and forcing fishers into selling cheap, but I don’t really agree about this. Out of 40-50 fish caught on a boat, only a few ones have good quality. How can middlemen find time to assess each and every fish without any supporting equipment but relying totally on their senses? It explains why they can only buy the fish at wholesale prices. In fact, the same applies for enterprises purchasing tuna directly at sea. We often see intermediaries as unnecessary or even impeding the goods circulation and distribution process. This viewpoint is completely inaccurate. Do not underestimate their role. Even state agencies cannot step in their shoes. VF. So what should the government do to develop the tuna fishing industry effectively and sustainably? Mr Vu Dinh Dap. First and foremost, the government needs to help fishers improve their fishing techniques, from making baits, dropping the rod to capturing the fish, processing and preserving it on board to keep the best quality. Vietnamese fishers have haphazardly picked up tuna handline and longline fishing techniques from overseas by themselves without any guidance

and support from state authorities. Therefore, they still make some basic mistakes such as using hammer to kill the fish, making them struggle even more. Now, it is time to make serious investment in the entire supply chain to enhance the quality of Vietnamese tuna, not

just building some new boats or improving storage facilities. VF. Vietnamese enterprises have imported raw tuna for processing. Does that affect the local fishing industry? Mr Vu Dinh Dap. Viet Nam’s tuna catch (yellowfin tuna and bigeye tuna) now touches less than

20,000 MT per year, whereas tuna exports have reached more than 100 markets with the export value of US$560 million. Obviously, the domestic supply cannot meet the demand. That’s why tuna processors have to import about 40,000-50,000 MT of raw fish per year from other countries such as the Philippines, Indonesia and Malaysia. In fact, all the captured tuna in Viet Nam is consumed locally if not for exports. Therefore, imports do not have any impact on the industry or the price of the fish. Even if they do, it’s only positive things, i.e. creating a hypothetical pressure on the industry to promote its product quality. VF. Which solutions have been put into practice towards building the brand for Vietnamese tuna? Mr Vu Dinh Dap. According to the latest survey of the Research Institute for Marine Fisheries (RIMF) announced in March 2014, large pelagic resources (including tuna species such as yellowfin tuna, bigeye tuna, skipjack tuna, etc.) account for a substantial proportion of Viet Nam’s marine fisheries resources. At the present, some international organizations such as the Western and Central Pacific Fisheries Commission (WCPFC) are running projects to help Viet Nam exploit these species sustainably. Besides, we also work with the World Wildlife Fund (WWF) and VASEP to apply sustainable standards for tuna fisheries and have they certified against MSC within the next five years. VF. Thank you very much! Compiled by Phuong Thao

Tuna fishing being the forte of central coastal provinces

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Fishing

Shipbuilders are building the new hybrid boat

FAO support to develop hybrid boat for Typhoon Haiyan-affected fisherfolk Small-scale fishers whose livelihoods were devastated by Typhoon Haiyan will soon have access to a new hybrid boat developed jointly by the United Nations Food and Agriculture Organization (FAO) and the Government’s Bureau of Fisheries and Aquatic Resources (BFAR), FAO has announced.

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he boat will be the first to use both wood and fiberglass, while maintaining traditional Philippine boat designs. Traditionally, local boat builders use a specific type of protected hardwood tree to build the keel, or ‘kasko’. Following BFAR’s recommendations, FAO, through the support of the UK’s Department for International Development (DFID), has developed a new prototype which replicates the design of locally known boats - bangkas - but uses fiberglass instead of the hardwood-kasko. In helping to preserve the hardwood trees and deterring further illegal forestry practices. FAO has further included built-in buoyancy tanks

and other features that ensure floatability and durability. “It is imperative that we restore fishing production capacity in a sustainable manner. The disruption to the fisheries sector caused by Typhoon Haiyan (Yolanda) over 6 months ago not only threatens fishers’ livelihoods, per capita fish consumption and nutrition levels of coastal communities but the livelihoods of thousands of other fish workers and women in fisheries along the fish distribution chain,” said José Luis Fernandez, FAO Representative in the Philippines. Working with the government of the Philippines, and supported by DFID, FAO is working to ensure fishers’ livelihoods are built back better and affected regions placed on

a path of resilience and sustainable development. “The adoption and fabrication of this inexpensive hybrid fiberglass-wooden boat model is taking advantage of the opportunity to introduce more responsible practices,” José Luis Fernandez added. In order to foster sustainability, boat builders, NGO workers, local government technical staff and BFAR personnel will be trained in building and repairing the new hybrid models. By training trainers, knowledge on construction and maintenance is expected to be passed on to 3,000 boat builders and carpenters. Additionally, FAO with the support of DFID and European Commission’s Humanitarian Aid and Civil Protection department (ECHO) will provide 2,900 seaweed farmers with materials and inputs to restore seaweed farms. A further 3,000 fish farmers engaged in cage

Traditional fishing boats in Philippines

farming of finfish and bivalves will be supplied with smallfish cage assets and stocking materials, while 3,500 women will be supported through start-up capital for fish vending, processing, and valueadding. In addition to aquaculture

Philippines’ fisheries output down by 3.25 percent in Q1 Still reeling from the effects of Supertyphoon Haiyan, total fisheries production posted a negative growth of 3.25 percent during the first quarter of 2014, the Philippines Bureau of Agricultural Statistics (BAS) reported recently. According to the BAS, “among the major seven species, skipjack tuna was the only gainer for the quarter with an increment of 4.62 percent.” Loses in other species were also considerable, such as the roundscad (galunggong) which is down by 6.9 percent, seaweeds with a 3.86percent reduction, milkfish at 2.11-percent loss, and yellowfin tuna and tilapia with 2.69-percent and 0.14-percent losses, respectively. With a 22.18-percent contribution to the total fisheries production for the reporting period, the commercial fisheries registered a 3.43-percent production shortfall this quarter, the BAS report said. An attached agency of the Philippine Statistics Authority, the BAS also said “catch of several species showed reduced output compared with same quarter last year.” The BAS noted that aside from roundscad and yellowfin tuna, production of other species such as the Indian and fimbriated sardines, Indian and Indo- Pacific mackerels, big-eyed scad, threadfin bream and

programs, FAO will dedicate particular effort to post-harvest activities in which mainly women are employed. The program is part of a US$7 million intervention, which aims to support a total of 14,400 fishers in close collaboration with BFAR, covering the regions of Eastern Visayas, Western Visayas and Northern Palawan. FAO aims at setting the bedrock for the development of more resilient livelihoods and improvements in local fisherfolk’s quality of life. When Typhoon Haiyan struck the central Philippines some 30,000 fisher families, that is approximately 150,000 people, were in urgent need of livelihood assistance. FAO’s intervention in the fisheries sector supported by UK-DFID and the European Commission’s Humanitarian Aid and Civil Protection department (ECHO), will reach some 85,000 men, women and children. Report from Food and Agriculture Organization

eastern little tuna all fell short of last year’s level.

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Fishing

Fishing boats coming back with their catch in the afternoon - Bandar Seri Begawan

Brunei wants more joint ventures in fishing The Department of Fisheries is inviting Korean companies to pair up with the locals to fish in Brunei’s deep waters.

By PaulineTal

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he zone, which is located around 45 to 200 nautical miles from Brunei’s coast and within the country’s exclusive economic zone (EEZ), remains an area that does not garner a lot interest from fishing companies, Abd Halidi Mohd Salleh, the Acting Director of Fisheries at the Ministry of Industry and Primary Resources said. “Few businesses are operating in the area. So far only two joint ventures. We are inviting interested parties from Korea to do joint venture businesses with local companies here,” the acting Fisheries head said. He said few venture out into the zone because of the high cost

associated with deep-sea fishing, adding the zone is a popular habitat for tuna but demand for the fish is low in Brunei. “But we can look into exporting them to Thailand or other neighbouring markets,” he said. Earlier, the Department signed an accord with the Overseas Fisheries and International Policy Bureau under Korea’s Ministry of Oceans and Fisheries in an aim to strengthen technical cooperation and research in fisheries between the two countries. The memorandum of understanding (MoU) will see the two governments implementing “joint-projects of interest to the participants”.

At a wet market in Brunei where the catch of the day is sold

In the area of capture fisheries – which involves capturing wild fish and shellfish – both governments will carry out assessments on responsible fishing technology and resource. The MoU will also see jointaquaculture research and development of new species, feeds and systems based on aquaculture best practices as well as best hatchery system and technology. The two governments will also work on marine plankton and algae. Marine plankton is a diverse group of organisms found in water columns which cannot swim against a current. They are a critical source of food to many large aquatic organisms, including fish. Brunei and Korea, through

the departments and agencies that are directly involved in the agreement, will organise trainings, workshop and seminars related to fisheries development including aquaculture development, study visits, work attachment and exchange programmes. Last year, an official from Jindo Sdn Bhd, a local and South Korean joint venture, said the company had secured a deal with South Korea’s Lotte Co Ltd for exporting 3,000 tonnes of shrimps to the east Asian country. At that time, the company official said it would be a challenge to meet the demand of Lotte alone. He added that Jindo had started collaborating with local small and medium enterprises to achieve a target domestic production of 1,000

tonnes for the export deal. Lotte had not set specifics on which type of prawns to be exported, but the official noted that consumer demand is high for monodons (tiger prawns) in South Korea at that moment. Brunei’s fisheries sector contributes 0.2 per cent to the country’s Gross Domestic Product, with a target of $400 million in output value by 2023, according to the Department of Fisheries. Capture fisheries, or catching wild fish and shellfish, is one the most important industries identified for economic diversification, having contributed to more than 70 per cent of total fish production from all sectors of fisheries combined. T.P.

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Fishing News Ministry boosts tuna, shark catfish and seaweed production Indonesia – Director-General for Fisheries Products Processing and Marketing, Ministry of Marine Affairs and Fisheries (KKP) Saut P. Hutagalung revealed that world consumption for processed tuna, shark catfish and seaweed is increasing. Thus, his office will put every effort to boost the production. It was stated by Hutagalung at press conference of workshop for value chain screening of the fishery sector in Indonesia with theme “Wild Capture, Aquaculture and Seaweed” in Aryaduta Hotel, Jakarta on July 8 afternoon. The workshop is organized as a preparation of grant program for increasing trade capacities of selected value chain within the fisheries sector in Indonesia implementation. The grant is five-year cooperation between KKP, State Secretariat for Economic Affairs of Switzerland (SECO) and United Nation Industrial Development Organization (UNIDO) which starts from 2014 to 2019. “The aim is to increase and strengthen fisheries products marketing capacity in developed quality and value chain,” he said. “The workshop is instrument for consultation and screening of Indonesian fisheries value chain which involves

all stakeholders to decide factors and main aspects in grant program implementation,” he added. The output will be a final recommendation of intervention angles. It has large impacts on the quality and quantity of value chain growth. Furthermore, it identifies the proper locations to develop highest potential commodities which give significant impacts on social and economy. In addition, it will increase women’s involvement throughout fisheries value chain.

Philippines to comply with EU fishing standards to avoid ban Philippines - The Bureau of Fisheries and Aquatic Resources (BFAR) is working on meeting the standards of the European Union on fishing, the Department of Foreign Affairs (DFA) said Wednesday 11, June 2014. “The Philippines, led by BFAR, is working actively to comply with EU’s requirements,” DFA spokesman Charles Jose said in a press briefing. The EU warned of trade sanctions against the Philippines if it fails to curb what it calls illegal, unreported, and unregulated (IUU) fishing. “This is not a blacklist, but a yellow card,” European Commissioner Maria Damanaki, in charge of Maritime Affairs and Fisheries, said in a statement Tuesday the 10th of that month, referring to the football warning sign. “We want the Philippines as partner to combat illegal fishing. We want the country to improve its legal and control systems as required by international rules. But we also want to signal to the world that the EU will not tolerate IUU fishing — a criminal activity which undermines the livelihood of fishing communities and depletes fish stocks. 70 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

It must be eradicated by all means,” she said. Eight other countries were previously warned also to curb IUU fishing: Panama, Togo, Sri Lanka, Vanuatu and Fiji in November 2012, and Curaçao, Korea and Ghana in November 2013. A ban on imports of fish from Guinea, Cambodia, and Belize was imposed in March 2014.

Fish production in General Santos City up Philippines - Total tuna and other fish landings at the General Santos City Fishport Complex went up by 11.31 percent for the first 5 months in 2014 over the same period in 2013, according to the figures released by the Philippine Fisheries Development Authority. It is the 3rd consecutive year since 2011 that total volume of fish landings in the city has registered an annual increase. Records show that the total fish volume landed at the fishport complex from January to May this year already reached 42,897.56 MT compared to only 33,363.83 MT in the first 5 months of 2013. Volume of production also increased in 2012, from 112,890.81 MT in 2011 to 139,613.34 MT that year.

Phuket begins fight against slavery on fishing boats Thailand - The nationwide push to eradicate slavery in Thailand’s fishing industry started in Phuket on July 7 as the Phuket Provincial Employment Office (PPEO) began to receive lists of migrant workers employed in the field. Following the order by the National Council for Peace and Order (NCPO), fishing boat operators have until July 21 2014 to report the names of their migrant workers – both legal and illegal – to the PPEO. Non-fishing industry employers must also provide the PPEO with names of migrant workers, but only have until July 15 to do so (story here). “I believe there are about 10,000 illegal workers in Phuket,” said PPEO Chief Yaowapa Pibulpol, discounting previous estimates that put the number as high as 200,000. The NCPO also ordered the opening of one-stop centers to streamline the process of registering illegal migrants; the first center opened in Samut Sakhon on June 30 and seven others opened in coastal provinces today (story here). Phuket’s one-stop center was originally slated to open on July 7. However, the date was pushed

back indefinitely due to a lack of resources needed for taking fingerprints electronically and printing identification cards.

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Fishing News World Bank spends VND 47 billion for upgrading fishing port in Binh Dinh, Viet Nam Viet Nam - World Bank funded VND47 billion to upgrade and enlarge De Gi fishing port in Phu Cat District, Binh Dinh Province. It is expected that 3,000 boats, mainly distant fishing boats, will dock the port per year. The quality of logistic services will also be improved in order to create 400-600 jobs for local labours and protect environment and ecosystem of surrounding areas. This work can bring back high economic benefits for the province. The port of De Gi will provide services to a large number of distant fishing boats and become a great destination for them during typhoons. With this upgraded port, local fishermen can build more distant fishing boats with high capacity to enhance their sea fishing activities, contributing to protection of Vietnam’s sovereignty and job creation for 600 local labours and other coastal areas.

Japan builds 180 composite fishing boats for Viet Nam Viet Nam - Japan’s Yanmar Company is implementing a pilot project to supply 180 composite vessels to Vietnamese fishermen to help them increase tuna yield and quality. The company’s director Yukio Kikuchi said the project will benefit fishermen in Khanh Hoa, Phu Yen and Binh Dinh provinces. By using composite boats, Vietnamese fishermen can raise their yield, reduce fuel spending and improve their overall stock quality by utilising better preservation technologies, Director Kikuchi said. According to the executive, 10 teams of 36 labourers using 60 boats will be set up in each of the three provinces. Each fishing trip will last 15 days and the 60 boats should haul in roughly 150 MT of tuna per trip. The fresh tuna will be shipped to Japanese seafood auction markets at an average price of US$10 per kilogram, five times higher than the current price of Vietnamese frozen tuna. Yanmar hopes that as from 2015, around 4,500 MT 72 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

of ocean tuna will be exported to Japan annually. The company is coordinating with the University of Nha Trang Ship Institute (UNINSHIP) to design and manufacture the first composite boats, each costing VND8 billion. The first vessel of its kind will be launched in Khanh Hoa early next month.

Aquaculture

Thailand: Shrimp farmers divided on 2014 production outlook Shrimp farmers in Thailand are divided on the likely production level for 2014, as the country still struggles to recover from early mortality syndrome (EMS).

Size grading of harvested whiteleg shrimp (Liptopenaeus vannamei) in Thailand

he new crop in Thailand is just getting underway, and early reports from farmers in the south say survival rates are up. According to Jim Gulkin, managing director of Bangkok-based frozen seafood supplier Siam Canadian Group, farmers in the east of the country are not so optimistic. “There is no consensus on Thailand’s shrimp production outlook for year 2014. Most of southern shrimp farmers are very confident that Thailand will achieve 250,000 metric tons by the end of this year.” This is the same level as last year, but in 2012, before EMS hit the Thai shrimp farming industry, production was 500,000 tons a year. Many of the farmers in eastern Thailand, however, do not think production will hit 200,000 tons. A level of between 170,000 and 180,000 tons sounds more realistic to these farmers, said Gulkin. This is because the mortality rate in eastern Thailand in some farms is still high, at around 40 percent. “Some seem to think 200,000 tons sounds more reasonable, considering

Thailand was suffering long hot weather and drought earlier this year,” he said. Suppliers such as Gulkin are keeping their fingers crossed and hoping Thailand will hit 250,000 tons, the same level as last year. In late July and early August, the supply of medium-size, cooked, peeled, tail-on 41/50s and 51/60s will be improving, he said. The peak production season in Thailand should be around the end of August or somewhere in September. Thailand only has orders on small sizes. Strong demand for small sizes means farmers may only harvest small sizes, which could bring down total production. New farming methods appear to be efficiently preventing EMS. “However, farmers have to dedicate one-third of their farms for water management systems.... In other words, Thailand will be losing one-third of production from the new methods. Farmers need to choose whether they want to take a huge risk of losing all from EMS or one-third [from reducing

their production area] and minimize the risk for EMS.” This is one reason why demand will remain stronger than supply. In May 2014, Satasap Viriyanantawanit, general manager for the Siam Canadian Group in Thailand, said farmers are holding shrimp in nursery ponds for 15 days before transferring them to growout ponds. The rainy season is also coming, which is welcome, after a long winter followed by a very hot summer with no rain. “A long period of no rain has increased the level of bacteria in the water,” he said. “Farmers are optimistic, because they had no EMS for a short period of time, due to these control methods,” said Viriyanantawanit. Thai Union Frozen Products, the largest shrimp processor in Thailand, said to look for an improvement in the shrimp supply in the second half of 2014, rather than in the first. Source: http://www.shrimpnews.com

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Aquaculture

AquaFIS - Mobile extension services to improve aquaculture farming in ASEAN Understanding the realities of aquaculture communities in Southeast Asia and farmers’need for timely and high quality industry information, the United States Agency for International Development (USAID)’s Maximizing Agricultural Revenue through Knowledge, Enterprise Development and Trade project (“the Project”) – which promotes more sustainable and efficient use of aquaculture and fishery resources in the ASEAN region – is partnering with Indonesia startup 8Villages to develop and launch the Aqua Farmer Information System (AquaFIS), a mobile extension services platform for small-scale fish and shrimp farmers. By USAID Maximizing Agriculture Revenue through Knowledge, Enterprise Development and Trade Project Farmer extension services can provide knowledge, skills and realtime data that lead to improved production practices, higher prices and/or improved product quality. As aquaculture farming becomes more widespread, there is growing demand for these services. Member nations in the Association of Southeast Asian Nations (ASEAN) provide extension services through public sector networks and, to some extent, through private sector input suppliers and donor funded projects. In many countries, however, there is a gap between the demand for extension services by aquaculture Indonesian Shrimp Farmer assessing harvest yields farmers (especially smallholders) and Photo credit: Maximizing Agricultural Revenue through Knowledge, Enterprise Development, and Trade Project the capacity of the existing public sector networks to provide relevant ish and fishery products are both a significant and timely information. food and income source for much of the Extension services agents traditionally visit world. Unfortunately, the current volume of communities to provide training and advice to ocean harvest cannot be increased without dramatic, farmers. While these services have benefited many, negative consequences for both the environment and there is a growing disparity in the knowledge and the economic future. skills among smallholder farmers, particularly in In Southeast Asia, aquaculture offers income remote areas. A farmer may have difficulty quickly accessing the information they need at a critical time generation opportunities for many small-scale and extension services agents may have specific areas farmers. It is estimated that 80 percent of production of expertise with limited ability to advise outside of comes from family-scale operations. The shift these areas. in fish sourcing, from oceans to farms, has new The ASEAN region benefits from tremendous use environmental, social, and economic costs. Without of mobile technology and the Internet. Information interventions, these costs could affect small-scale communication technologies (ICT) can provide an producers and rural communities disproportionally.

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efficient means for smallholder farmers to receive extension services. ICT can ensure access to needed information in a timely and cost-effective manner, particularly in traditionally underserved areas. Experience with ICT in the developing world has demonstrated its potential as a tool to link extension workers and farmers. Access to needed information can empower individuals to become stronger participants in the sustainable management of their communities’ resources. Currently, 8Villages runs an ICT platform that links various actors in agricultural value chains in rural Indonesia. The platform enables farmers to access market information and other support services, as well as to share information with other farmers. The system provides farmers with the ability to identify problems and obtain real-time information regarding potential solutions. It also helps farmers access information to improve farming practices. Extension information is demand-driven, provided via SMS, Android applications and web-based platforms. After seeing the positive impact of the platform on smallholder rice farmers, 8villages General Manager (Indonesia) Anita Hesti said, “Our partnership with MercyCorps yielded considerable results for 2,340 Indonesian rice farmers. The improvement of farming practices have led to production increases in excess of 50 percent. Their buyer/seller networks have expanded and they also have increased access to finance. Given these successes, it seemed natural to seek out opportunities in

other agricultural areas, including aquaculture. We are excited to initiate this pilot in partnership with USAID and several Indonesian academic institutions.” 8villages will adapt and extend the existing ICT platform to aquaculture farming communities in ASEAN. The rollout will initially focus on shrimp and tilapia production in Indonesia. The project will pilot the delivery of extension services in feed, water, and health management by registering up to 1,000 aquaculture farmers from August through December 2014. Farmers will have remote access to extension services to improve their production techniques. The platform will also allow farmers to consult with experts on aquaculture production and management issues. The program includes a broad communication and outreach campaign to farmers, extension workers and other actors in the aquaculture value chain. Key stakeholders involved with this pilot include the Institut Pertanian Bogor, and the Shrimp Club of Banyuwangi (Indonesia). Indonesian telecommunications providers, Telkomsel, Indosat and XL Axiata, are key partners. Over the long term, 8villages plans to expand the reach of the platform to other parts of Indonesia and other ASEAN countries. Eventually, the platform will create an interface between aquaculture farmers across ASEAN and the multiple players in the aquaculture value chain that includes input suppliers, buyer and producer organizations, and microfinance institutions. The platform will have the potential to advance the sustainable management of the aquaculture ecosystem and the aquaculture industry. For further information, or to get involved, please contact Timothy Moore, at the USAID Maximizing Agricultural Revenue through Knowledge, Enterprise Development and Trade project – communications. market@gmail.com or Anita Hesti at 8villages – a.hesti@8villages.com.

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Aquaculture

Cameras are installed on fish cages

Using cameras, 3G, and smartphones to grow fish The hundred-thousand-dollar fish cages in Bua river (Quang Huc commune, Tam Nong district, Phu Tho province) seemed to be unusually quiet. However, a dozen of cameras have been installed on fish cages for surveillance. “You have just got in and taken pictures of my fish cages, haven’t you?” a local farmer tapped my shoulder and laughed happily. By Ke Toai

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ith about three kilometers long, Bua river runs through Quang Huc commune and has clean water environment. Cage fish culture has been practised here since 1986-1987 but the number of cages amounted to a dozen only. Since 2012, the scale of farming has suddenly jumped to 126 cages with key species of grass carp, red tilapia, catfish, common carp, and so forth. “Currently, agriculture is still a main source of incomes for local people here. However, agriculture has just provided their subsistence life; they cannot become rich from it. Cage aquaculture seems to be a better choice,” said Mr Nguyen Van Dong, Chairman of Quang Huc People’s Committee. One of local aquaculture farmers, Mr Nguyen Minh Dang

(born in 1989), is considered to be a local “King” of cage culture in Bua river. Starting his business since 2012, he has invested billions of dongs (hundreds of thousands of dollars) into the Bua river for fish cage culture. In order to get success in cage aquaculture, he has been studied and searched for experience and knowledge on aquaculture everywhere by himself. He has set foot in several famous fish cage aquaculture areas from Hoa Binh to Hai Duong provinces. Before, fish cages were mainly constructed from bamboo and broke down very often. “However, current cages have been built with steel frames and water pipes, cage bottoms are lined with two-layer nets and buoys are made of plastic tanks. These features make fish cages stronger and more stable. Small houses are also built

on fish raft system for fish management and protection,” said Dang. One fish crop lasts for 13 - 16 months. An average profit from one crop of Dang’s family is calculated to be a few billion dongs. “This is because Bua river water is clean, fish is relatively safe from disease. Besides, the traffic on the river is not busy and water flows are stable,” said Dang’s father. Another local farmer, Mr Nguyen The Hiep, has just installed his fish cages for over one year but made significant profit. He sought guidance and technical supports from the Phu Tho Provincial Fisheries Department and Agriculture Extension Center experts. “Currently, my family has 10

Fish cage culture in Bua river

cages, mainly culturing red tilapia and hemibagrus fish. We harvested over seven MTs of fish in the first crop and earned VND200 millions in profit,” said Hiep. On average, the costs for fish disease treatment (mostly fungi and digestive problems) are about VND8 - 10 millions and for feed are VND100 millions per crop. Hiep is planning to expand fish cages in the coming time. Strangely, these active fish cages seem to be deserted all day. “You have just got in and taken pictures of my fish cages, haven’t you?” a middle men tapped my shoulder and get me surprised. It turns out that cameras have been installed on the fish cages for surveillance to replace human work. Images from

fish cages are transferred directly to computers and mobile phones via 3G equipment. Mr Dang showed us his smartphone with all clear images of his fish cages in there. About 10 high quality cameras have been installed on his cages with the costs of over VND10 millions. Even at the night time with rains and winds, the camera images are still very clear on computers or smartphones. Therefore, there has not been any “break into” case reported. “We will keep promoting investment in fish cage aquaculture in Bua river,” said Nguyen Van Dong. Currently, Bua river are still free for access, local users do not have to pay any fee or tax. Every year, Quang Huc commune distributes about 100 MTs of cultured fish to the markets. Average productivity is 6 - 7 MTs of fish per cage with the profit of VND200 millions per cage per crop. “Our fish products are marketed in several provinces such as Vinh Phuc, Ha Noi and even to China. So far, demand is high with purchase contracts are signed even before the crops begin,” said Dong. Besides economic benefits, Quang Huc commune has considered environmental issues when fish cages expanded larger. Regulations on the cage sizes, distance and environmental standards will be soon developed and applied. The immediate solutions being conducted by local commune committee now include advising local people to protect water environment in and outside their fish cages. Compiled by Cao Le Quyen

A red tilapia cage

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Aquaculture

Bangus or milkfish cultivation in the Philippines

The Philippines pushes sweet potato as protein-rich aquaculture feed The Department of Agricultureâ&#x20AC;&#x2122;s Bureau of Agricultural Research (DABAR) is eyeing the sweet potato or kamote as an important feed source for the aquaculture industry.

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unded under the National Technology Commercialization Program (NTCP) of the BAR, a project titled â&#x20AC;&#x153;Technology Commercialization of Protein-Enriched Sweet Potato as Feed for Aquaculture Bureau of Agricultural Research (BAR), is being conducted by the Tarlac College of Agriculture (TCA). The study mainly is to assess further the potential of the crop, including its commercialization to provide fishpond operators or owners with affordable and

high quality feed formulation for aquaculture specifically in bangus (milkfish), crabs and prawns, BAR said in a statement. The research is currently underway with the fishpond operators in Central Luzon and neighboring provinces as collaborators, and is headed by its program leader, Dr. Rodolfo Domo-os, with Dr. Ma. Teresa S.J. Valdez and Dr. Manuelo Agsaoay as colleagues. According to BAR, the restrictive cost in feeds is a main discouraging

factor to many operators in the aquaculture industry, adding that animal nutritionists all over the world are constantly searching for the dietary protein sources of fish to maximize growth and increase production within the shortest possible time and at lowest cost. “Initial studies conducted by TCA with the protein-enriched sweet potato (PESP) were done through fermentation which paved the way for the production of inexpensive, high valued aquafeeds,” the agency said. According to BAR, employing fermentation makes use of beneficial microbes, resulting in a 17 times more protein content of sweet potato pulp “after enrichment by fermentation was achieved,”

which can replace a percentage or even entirely, the expensive and sometimes seasonally unavailable conventional feed ingredients. Sweet potato chips were ground and fermented following the procedures employed in protein enrichment pulp. A standard nutrient solution with some modifications was prepared. After two weeks of fermentation, the potato chips are sun-dried to remove much of the offensive odor, and can remain fresh up to two years without adding antioxidants. To showcase the technology, several fish ponds were fed of PESP to bangus, tilapia, crabs and prawns, and were compared with

the fishpond operators’ practices. “All feeding trials in commercial ponds were done for the entire growout period until the bangus, tilapia, crabs, and prawns were ready for harvesting,” BAR said, adding that the agency asked the help of fishpond operators in Malolos, Bulacan; Balanga, Bataan; Dagupan, Pangasinan; and Iba, Zambales, through participatory feeding trials. According to BAR, the PESP is considered a breakthrough in aquafeed industry, necessitating a protection by a trademark for a period of 50 years. The TCA, with the help of BAR, will establish a feedmill and engage into the mass production and marketing of the product to better serve fishpond operators in Pangasinan, Bataan, Zambales, and Bulacan, according to the agency, and added that the project also hopes to commercialize the product involving private investors for operation to put-up their capital shares in this venture. According to Dr. Agsaoay, the cost of production is reasonable and can be mass produced in a village level through technology transfer agreement, with a kilo of PESP at P12.25 (US$0.28) or P612.50 (US$14.0) for every 50-kilo bag. Initial feedback from fishpond operators and the fishing communities showed positive response. Big-scale fishpond owners have appreciated the effects and potentials of the feeds as a viable substitute to commercial ones. Source: Phillippine Information Agency.

Sweet potato (Ipomoea batatas), locally known askamote, is an important food crop. In some areas of the Philippines, it is a staple particularly among marginalized families in provinces, as they are easy to cultivate and relatively cost less than a kilo of rice.

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Aquaculture News GSSI introduces benchmark tool for seafood certification schemes Over the past year, the Global Sustainable Seafood Initiative (GSSI) has been working to develop a global Benchmark Tool for seafood certification schemes. The first draft of the Benchmark Tool was approved to be released for public consultation and pilot testing by the GSSI Steering Board in June 2014. As part of the public consultation process, GSSI will host three webinars. The series started on Tuesday July 15, 2014, and each webinar will focus on a specific section of the Benchmark Framework. The webinars are aimed to provide a brief background on the GSSI and provide an opportunity for interested parties to interact directly with representatives of the GSSI Expert Working Groups and discuss the draft GSSI Benchmark Tool. Recently, the Global Aquaculture Alliance’s (GAA) Best Aquaculture Practices (BAP) program has been asked to pilot GSSI and said it has agreed to. At the end of 2013, the annual output of BAP-certified shrimp farms totaled 132,000 metric tons. GSSI, formed in February 2013 (website: http:// www.ourgssi.org), aims to provide a consistent global

benchmarking tool to provide transparency between labelling and seafood certification programmes. The GSSI benchmarking framework consists of different criteria and indicators based on the FAO guidelines ‘Ecolabelling of Fish and Fishery Products from Marine Capture Fisheries’ and ‘Technical Guidelines for Aquaculture Certification’ The benchmarking tool is being developed by three expert working groups that cover aquaculture, fisheries, and the procedural, institutional and evaluation processes of seafood certification. The GSSI has partners from different sectors including retailers, seafood processors, foodservice and NGOs. This tool may be useful for members of the Sustainable Seafood Coalition (SSC) and other seafood businesses by enabling them to compare different certification programmes to help make sourcing decisions. The SSC is also helping to address seafood sustainability through voluntary codes of conduct. Through signing up to these codes on sourcing and labelling, SSC members commit to sourcing all their fish and seafood responsibly, and making clear, consistent and meaningful labels for consumers.

Indonesia plots master plan for aquaculture development Because aquaculture production supplies about 45 per cent of fishery products consumed worldwide and the rapid global demand for fishery products continues to grow, while the supply through traditional sources is stagnant, the Indonesian government said it is continuing in its efforts to promote the sustainability of the supply and demand of fishery products in the future through the development of environmentally friendly and sustainable cultivation technology. Secretary General of the Ministry of Maritime Affairs and Fisheries Sjarief Widjaja speaking in Jakarta, said that in addition to the technology development, the government is inviting stakeholders to participate actively in fishing and collaborate to construct a fisheries policy that contribute to build a secure supply of fishery products in a sustainable manner. “Therefore, the Ministry of Maritime Affairs and Fisheries has called on WorldFish, an international nonprofit organization in Asia, to put together a master plan for national aquaculture by 2020, through the Future Indonesian Aquaculture research projects that will be implemented over 18 months”, said Sjarief. Sjarief said, Indonesia Aquaculture Futures is 80 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

a collaborative project between the Ministry of Maritime Affairs and Fisheries and WorldFish that will provide a great opportunity to comprehensively seek to increase the value of consumption and production of the fishery sector. The project is expected to develop scenarios of supply and demand for fishery products for the future, and to build an understanding of the opportunities and challenges to foster sustainable aquaculture in Indonesia.

Malaysia to produce 50,000 tonnes of shrimp in 2014 Malaysia will see its shrimp production growing steadily this year after the drop from a peak of roughly 105,000 tonnes in 2010 to a low of about 45,000 tonnes last year. Star Feedmills (M) Sdn Bhd General Manager for Marketing Hiew Yee Wei predicts that production will reach 50,000 tonnes this year and grow another 20 percent in 2015. “Malaysia’s shrimp industry is on the road to recovery after EMS. Farmers are using specific culturing technology to improve their yields,” he told Asian Agribiz. “The training offered to our customers has helped them beef up on good practices.” Star Feedmills is a subsidiary of Charoen Pokphand Foods (M) Sdn Bhd.

Mekong seeks to grow crayfish breeding A seminar on sustainable development of freshwater crayfish breeding last week was designed to help local farmers expand their aquaculture farms and resolve their current difficulties. The Dong Thap Province’s Department of Agriculture and Rural Development and the Viet Nam Fisheries Association held the seminar, which noted that the country is the sixth largest on the list of the world’s largest crayfish breeding countries and territories, behind China, Bangladesh, India, Thailand and Taiwan. In 2013, the country had about 12,300 ha under crayfish breeding, including 12,250 ha in the Mekong provinces of Dong Thap, Ben Tre, An Giang, Can Tho and other coastal provinces. The country’s total crayfish production in 2013 amounted to 7,000 tonnes. The Mekong provinces produced 6,028 tonnes of freshwater crayfish last year, including 1,968 tonnes in Ben Tre Province; 1,630 tonnes in Dong Thap; 700 tonnes in Bac Lieu; and 391 tonnes in Tra Vinh. Nguyen Huy Dien, deputy chief of the General Department of Aquaculture, said there must be a master plan for development of the aquaculture section in the Mekong Delta that would lead to

sustainable development. Dien said the areas under crayfish breeding Viet Nam were expected to reach 26,900 ha in 2015 and over 35,000 ha by 2020. This expansion would meet the rising demand of overseas markets for crayfish products.

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Regional Cooperation

Seaweed farming can provide a proper income for many families

Philippines, Indonesia to sign agreement on seaweeds The Philippine government is currently negotiating with Indonesia for a comprehensive agreement on seaweeds farming, the Department of Agriculture (DA) said. By Alladin S. Diega

“The Indonesian government is willing to help us improve our capacity for seaweeds production,” Agriculture Secretary Proceso J. Alcala said during the send-off ceremony for the department’s multipurpose ship carrying fishing paraphernalia, held recently at the Navotas fishing port. Alcala, who recently visited Indonesia, said the country has “a long and successful history of massproducing seaweeds and is willing to share its experiences with the Philippines.”

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Early this year buyers from China expressed interest in buying big volumes of dried seaweeds from Mindanao. The interest was expressed by Chinese businessmen, led by Consulate General of the People’s Republic of China Zhang Weiguo, who visited Mindanao recently, accompanied by FilipinoChinese businessmen. Output from the various seaweeds-industry clusters in Mindanao, however, is still limited and cannot meet the volume required by the foreign buyers even

if the harvest capacity of Surigao, Agusan, Zamboanga, Tawi-Tawi, Basilan and Sulu is combined. The development prompted seaweed raisers in Mindanao to increase their respective areas for wider seaweeds production. Currently, buyers of locally grown dried seaweeds of carrageenan plants in Surigao, Davao and Zamboanga process them into carrageenan powder for export to buyers in China, the US and Europe. Carrageenan, a white powdery substance and usually prepared as refined or semirefined, is used for scores of consumer and industrial applications, from food, medicine and industrial products. Pressed by the high demand for carrageenan but without enough production of raw materials, seaweeds producers from Mindanao are importing seaweeds from Indonesia. Prices for dried seaweeds bought by local plants range from P36 (US$0.8) to P40 (US$0.9) a kilo,

while wet seaweeds fetch only from P4 to P5 a kilo, particularly for varieties commonly used as a side dish. Last year four commercially viable hybrid varieties of seaweeds were developed by the University of the Philippines’s Marine Science Institute (UPMSI), and are currently being prepared for mass propagation. The newly developed seaweeds are varieties of known seaweeds such as Kappaphycus spp and Eucheuma denticulatum, Dr. Marco

Nemesio E. Montaño of the UPMSI said. Montaño said the newly developed varieties can serve the country’s need for improved production of seaweeds for the growing need of carrageenan, for they are proven to be fast growing. A hundred grams of a variety can reproduce into more than 1,000 kilos, or 1 MT for only 10 months, Montaño said. A.D.

A seaweed farm in Liwagao, Caluya

A seaweed farmer brings his seaweed to shore in Caluya, Philippines

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Sustainable Development

Fishers in the Central Viet Nam need to go offshore to reduce pressure on the inshore resources

Sustainable fisheries development in the central coastal region of Viet Nam The Central Coastal Region of Viet Nam, encompassing nine provinces and cities from Thua Thien Hue to Binh Thuan, is endowed with an extensive fishing ground with abundant fisheries resources of high economic value, especially around Hoang Sa and Truong Sa. By Tran Duy

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High potential for fisheries development There are over 46,200 fishing boats (constituting nearly 40 percent of Viet Nam’s total fishing vessels) with the total capacity of more than four million horsepower in the Central of Viet Nam by the end of 2013, including nearly 11,300 offshore fishing boats with a capacity of over 90 horsepower. The region has over 1,400 groups, 50 fisheries cooperatives and 13 fisheries unions, etc. The farming areas saw a sharp upward trend. In 2013, the region’s total farming areas were over 33,778 ha, producing over 180,000 MT of seafood. Shrimp farming areas accounted for nearly 50 percent of the region’s farming areas and 28.5

percent of the total production. All 132 seafood processing companies in the region are well equipped with modern technologies and have licenses to export to Japan, the US and EU, etc. The regional exports reached nearly US$700 million in 2013. Trade promotion in the region has seen a pretty good performance in recent years. Local companies have been able to attend many trade fairs and exhibitions such as the Viet Nam Fisheries International Exhibition (Vietfish) and the Viet NamInternationalAgricultureTrade fair (AgroViet). Their brand names are also promoted via e-portals of provinces and the website of the Industry – Trade Department and the Trade Promotion Center.

Hon Ro port (Khanh Hoa province), one of the biggest fisheries logistics center in the South Central Viet Nam

By the end of 2012, the regionâ&#x20AC;&#x2122;s fisheries production was valued at over VND27,337 billion, accounting for 34 percent of the agriculture, forestry and fisheries production and nearly 5 percent of the regional total production, according to Dr Tran Du Lich, Head of the Collaboration and Development Consultation Team in the Central Coastal Region. The industry plays an important role in creating jobs, contributing to the nationâ&#x20AC;&#x2122;s economy and protecting territorial waters.

The need for sustainable development Despites its enormous potential, the regional fisheries industry faced a number of problems, including small fishing vehicles, obsolete equipment and technologies, few ship building and maintenance facilities, inefficient fishing ports, poor management; and inadequate ship monitoring system. Income

from capture fisheries remains low and a majority of fishers are struggling over job insecurity. The shortage of raw materials has become widespread. Local processors have to compete fiercely with Chinese traders for raw shrimp, octopus, tuna, seafish and squid, etc. Many of them operate perfunctorily or face losses. For sustainable development, the regional fisheries industry will need to reduce the near-shore fishing while boosting the off-shore fishing and resource protection. It will need to develop aquaculture based on the application of advanced technology, biosecurity measures, and environment-friendly practices. Modern storage and processing technologies must also be adopted. With respect to trade promotion, local authorities will need to focus on building the brand name for key export items such as shrimp, tuna and dried seafood. They will have to develop an updated information

system on export products and importing markets and possibly use the website of the Central Coastal Region (www.vietccr.vn) for trade promotion. The comprehensive plan for fisheries development to 2020, with a vision to 2030 and The scheme to restructure the fisheries industry towards increasing the added value and sustainable development, which have been introduced recently, must be implemented in order to develop a sustainable fisheries industry of Viet Nam as a whole and the Central Coastal Region in particular. Incentive policies will be necessary to mobilize the participation of large companies and investors in the capture fisheries. The establishment of the Fisheries Center of the Central Coastal Region should be sped up too. Compiled by Thu Nguyen

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Asean Fisheries

Indonesia - The world leading shrimp and tuna producer and exporter Not only being recognized as the world biggest tuna producer, Indonesia is also emerging as an important shrimp producer and exporter worldwide while other major suppliers - China, Thailand, Malaysia, Viet Nam and Mexico suffer from the EMS disease. By Nguyen Thi Hong Ha

A traditional seafood market in the eastern Java – Indonesia

ndonesia is the largest archipelagic state in the world which has more than 17,000 islands, 81,000 kilometer coastline totaling 14 percent of the earth’s shoreline and a large potential aquaculture area of 26.6 million hectares. Such natural endowment appears to have propelled the development of the capture fisheries, aquaculture and seafood processing industries in the country.

Increasing production Indonesia is the world’s second largest seafood producer with a total estimated capture fisheries and aquaculture production of over 17.49 million MT in 2013, about 65 percent of which comes from aquaculture, up from 45 percent in 2008. It is estimated that the fisheries sector employs a total of over 7 million people both directly and indirectly, including 40 percent who works in the aquaculture

industry. In total, there are more than 500 processing facilities, more than 150 of which were EU approved in 2011. Seafood is cultured in all fresh, salt and brackish water, including such species as shrimp, grouper, common carp, milk fish, pangasius, barramundi, Nile tilapia, mud crab and seaweed. The aquaculture production is rapidly growing, up 151 percent in period 2008-2012 from 3.86 million MT to 9.68 million

Indonesia’s aquaculture production volume, 2008-2013 (MT) Species Seaweed Shrimp Groupers Giant seaperch Milk fish Common carp Nile tilapia Clarias Pangasius Giant Gouramy Others Total

2008 2,145,060 409,590 5,005 4,371 277,471 242,322 291,037 114,371 102,021 36,636 227,317 3,855,200

2009 2,963,556 338,060 5,073 6,400 328,288 249,279 323,389 144,755 109,685 46,254 193,826 4,708,565

Year 2010 2011 3,915,017 5,170,201 380,972 400,385 10,398 10,580 5,738 5,236 421,757 467,449 282,695 332,206 464,191 567,078 242,811 337,577 147,888 229,267 56,889 64,252 349,568 344,731 6,277,923 7,928,962

2012 6,514,854 415,703 11,950 6,198 518,939 374,366 695,063 441,217 347,000 84,681 265,580 9,675,553

2013 (*) 3,384,133 320,000 7,357 3,425 273,332 162,278 481,949 280,513 481,453 39,746 229,456 5,663,641

Increasing average (%) 2008-2012 2011-2012 32.08 26.01 1.04 3.83 30.26 12.95 11.43 18.38 17.16 11.02 11.62 12.69 24.85 22.57 41.01 30.70 37.18 51.35 23.50 31.80 10.32 -22.96 25.95 22.03

Note: (*) Preliminary figures until June / Source: DG Aquaculture

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Indonesia’s total shrimp exports,

Indonesia’s total shrimp production volume,

Giant Gouramy Others Total

36,636 227,317 3,855,200

46,254 193,826 4,708,565

56,889 349,568 6,277,923

Note: (*) Preliminary figures until June / Source: DG Aquaculture

Giant Gouramy 36,636 46,254 56,889 64,252 64,252 84,681 39,746 23.50 31.80 Others 227,317 193,826 349,568 344,731 344,731 265,580 229,456 10.32 -22.96 Total 3,855,200 4,708,565 6,277,923 7,928,962 7,928,962 9,675,553 5,663,641 25.95 22.03

2 9,6

Note: (*) Preliminary figures until June / Source: DG Aquaculture

Indonesia’s total shrimp exports, 2008-2013 (US$1,000)

Indonesia’s Indonesia’stotal totalshrimp shrimpexports, production volume, 2008-2013 (US$1,000) 2008-2013 (MT)

Indonesia 2008-201

Note: (*) Preliminary figures until June / Source: Statistics Indonesia

Note: (*) Preliminary figures until June / Source: Statistics Indonesia Note: (*) Preliminary figures / Source: DG Capture Fisheries & DG Aquaculture

Note: (*) Prelim

MT with an average increase of China, Thailand, Indonesia’s total tuna/skipjack exports, Indonesia’s total tuna/skipjack exports, 25.95 percent per year. Malaysia and 2008-2013 (US$ million) 2008-2013 (US$ million) The Indonesian capture fisheries Viet Nam, enjoyed numerous achievements. causing a severe In 2013, the country was estimated shortage of the to catch 5.86 million MT of sea fish, global shrimp up from 5.83 million MT in 2012 supply, pushing and 5.7 million MT in 2011. the international The government has realized price up about high potential in its fisheries industry, 50 percent. especially in the aquaculture sector, However, Note: (*) Preliminary figures until June / Source: Statistics Indonesia and decided to further invest some Note: (*) Preliminary figures until June / Source: Statistics Indonesia countries, in building the infrastructure i n c l u d i n g and developing new skills and Indonesia, have technologies to be able to lead the benefited from current critical imports. The country is currently market. situation and rapidly thrived. With the biggest shrimp supplier to the The Indonesian Ministry of 1.2 million hectares of potential US market. Maritime Affairs and Fisheries water surface area for shrimp (MMAF) plans to increase the fish culture, including 773,000 hectares Tuna Indonesia is the world’s largest production nationwide from 17.49 of exploited area, Indonesia could million MT in 2013 to 20.05 million surpass other neighbor competitors tuna catching nation that landed MT in 2014, including 6.08 million such as Thailand, Viet Nam and a huge 1.137 million MT in 2012. MT of captured seafood and 13.97 Malaysia to become the world Indonesian tuna fishermen rely million MT of farmed seafood, of biggest shrimp producer and on two fishing grounds for their which shrimp and tuna will remain exporter. The MMAF is currently catches. The western central to be key products. Its seafood employing the industrialization Pacific Ocean supplies 71 percent industry is expected to generate and expansion of shrimp farming of Indonesia’s tuna landing, while a GDP growth of 7.25 percent in area and recovering shrimp farms 29 percent comes from the eastern 2014, up 0.77 percent compared to in some abandoned areas in order Indian Ocean. Beside traditional markets last year. to boost the shrimp production in including the US, EU and Japan, 2014. The US, Japan and EU are the Indonesia is gradually focusing on Shrimp The EMS disease is currently biggest importers of Indonesia’s potential markets in the Middle East hindering many world large shrimp. Exports to the US accounted and Africa. According to MMAF, shrimp producers including for nearly 50 percent of the US total about 50 percent of the canned tuna ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 87

Asean Fisheries market in Saudi Arabia has been captured by Indonesian products. Recently, a paused tuna research project that studies the biological growth of tuna, its migratory routes and hatchery methods is due to restart at the Central Research Center for Marine Aquaculture in Buleleng, Indonesia. The study was halted due to its high cost. The continuation of the project is expected to set the way for the road map to develop sustainable tuna fisheries in Indonesia and to produce comprehensive data and information on tuna fisheries.

Import restriction and increase in domestic consumption Due to local consumption habit and the government’s policy to promote domestic consumption, Indonesian seafood demand has kept growing. The domestic seafood consumption per capita was estimated at 35.14 kilograms in 2013, up from 28 kilograms in 2008 with an average of 4.65 percent per year. In 2013, the country announced its fish supply for consumption to reach about 12.22 million MT, up 72.8 percent compared to 2008. MMAF plans to generate 7.25 percent of fisheries GDP growth rate in 2014, while the domestic per capita consumption of seafood is set at 38 kilograms per year. MMAF has implemented numerous programs such as increasing the competitiveness through enhancing the productivity, efficiency and quality in order to better satisfy the domestic demand as well as reducing the import quota. The Indonesian government allows seafood imports only in the time of bad weather reducing the capture fisheries production to below the domestic demand. 88 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

Indonesia could surpass other neighbor competitors to become the world biggest shrimp producer and exporter

However, the government allows the seafood imports of only 20 percent of the total domestic seafood production demand; the rest will be domestically purchased. Since the fourth quarter of 2010, MMAF has passed a new regulation for seafood imports in an attempt to protect local consumers. The Ministerial Regulation No. 17/2010 requires imported seafood products to be accompanied with health and country of origin certificates from the exporting country’s competent authority and sets the maximum glazing allowed for frozen products (mostly fillet) at 20 percent.

Export market diversification Indonesia currently exports seafood to over 210 countries and territories with the total value of US$4.2 billion in 2013 and the exports are expected to reach US$5.1 billion in 2014. Indonesia’s seafood is mainly exported to the US, Japan and EU with key products including shrimp, tuna, skipjack, crab, seaweed and frozen tilapia,

pangasius and grouper fillet. Indonesia is aiming to expand the market to the Middle East and Africa in which there is a huge demand of processed products. African imports of Indonesian seafood touched nearly 28,600 MT in 2011 worth US$81.3 million and increased to 36,000 MT in 2012 worth US$96 million. Egypt’s imports in 2012 reached 6,270 MT worth US$13.1 million, up 20.6 percent in volume and 24.8 percent in value compared to 2011. Exports to the Middle East and Africa are expected to grow by 25 percent in the future. Although Indonesia is the world’s second largest seafood producing country, its exports are less impressive as 75 percent of nationwide production is consumed by the domestic market. Through promotional campaigns, the government intends to enhance export figures by fueling overseas demand. Compiled by Ngoc Tu

Sorting prawns at the Ocean Harvest factory. Photo: Jessica Mudditt

The export market potential for Myanmar’s seafood bounty A leading player in Myanmar’s seafood sector tells Mizzima Business Weekly he’s optimistic about the industry’s export potential if constraints can be overcome. By Jessica Mudditt

ew countries can boast crab so plentiful that it is sold as a cheap street food snack. But despite Myanmar’s abundance of seafood, in terms of availability and comparable affordability, the sector remains largely untapped in terms of export volumes. There has been a big improvement in the situation since the European Union and the United States lifted trade sanctions in 2012, but challenges such as electricity shortages and weak infrastructure continue to inhibit efforts to attract more foreign buyers for Myanmar’s rich bounty of seafood. U Myat Aung Nyunt is the managing director of Ocean

Harvest (Myanmar) Limited, which has an ice-making, cold storage and seafood processing factory in Yangon that he established more than two decades ago. He is also joint secretary of the Myanmar Fishery Products Processors and Exporters Association, which was formed in 2004 and aims to forge investment links between exporters and importers, as well as provide information about best practices in the industry. “Myanmar’s potential to increase seafood exports is huge, but we need to set up prawn farms to obtain higher quantities to export,” U Myat Aung Nyunt told Mizzima Business Weekly. “At the moment there’s only ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 89

Asean Fisheries one prawn farm in the entire country,” he said. Prawn farming is a highly skilled and labour intensive industry and Myanmar is yet to establish a seafood processing training centre. Ocean Harvest had to provide training in a range of tasks for its workforce of about 200 after they joined the company. The June 20 decision by the United States to downgrade Thailand’s status to the lowest level on an international list for failing to meet minimum standards for eliminating human trafficking has focussed a spotlight on abuses in its fishing industry, but U Myat Aung Nyunt said he has never heard about fishery sector workers being ill-treated in Myanmar. “I provide my staff with three meals a day as well as free health care and accommodation,” U Myat Aung Nyung said. “My unmarried workers live in a dormitory at the back of the factory, while housing is provided for 20 families in North Dagon,” he

said. “I treat my staff as my family, because without them, how can I do this business?” U Myat Aung Nyunt - who prefers to employ women because he believes they work harder than men - said some employees have been with the company since it was established in 1993 but added that retaining skilled staff can be difficult because of rampant poaching by competitors. “I do everything I can to retain my staff, but there are several Chinese companies in Myanmar who have bigger budgets and operate with a local proxy,” he said. “It’s causing a lot of problems for players in the local industry.” Although Myanmar’s seafood stocks have declined in the past five years, U Myat Aung Nyunt said conditions in Thailand were far worse. He said introducing the right measures could help to ensure that Myanmar’s fishing industry was sustainable and that export volumes could increase exponentially if the potentially lucrative prawn farming

Myanmar considers exporting seafood to Japan by air The industry is looking at shipping by airplanes as part of a drive to get more value from its fishery products – which have been in decline in recent years. The possibility of fish products travelling to Japan on All Nippon Airline (ANA) flights is being discussed by fisheries associations, though shipping costs are the largest stumbling block, say officials. Flying the fish exports would mean higher prices in Japan, where the catch would be fresher than current exports which are refrigerated and sent by ship, said Daw Toe Nandar Tin, vice chair of the Myanmar Fisheries Product Processor and Exporter Association. “The process may take a while because we are finding those who want to export by airline,” she said, adding that each group is different. Daw Toe Nandar Tin said the main sticking point is the cost of the service. “If the charges are okay, I believe some businesses will export fish on the airline,” she said. Myanmar Fishery Federation chair U Soe Win said that exporters are also eyeing American and European markets as sanctions are becoming less of a problem and the markets offer lots of potential. 90 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

sector expanded beyond its existing one farm. Deterrents to the expansion of the sector included high operating overheads, such as the need for diesel generators as a back-up power source, and the complexities of having to provide around-theclock care and maintenance. In the absence of farms, most prawns are caught in the wild and they fetch some of the highest prices. U Myat Aung Nyunt said a net was used to contain a large number of prawns for two or three months until they grow to marketing size. The haul was then sold at various markets in Yangon, including at the Shwe Zin Yaw Hein Jetty, which has been approved by the European Union. Another method involved the use of small trawlers but in both cases U Myat Aung Nyunt said roads needed to be upgraded to reduce the time needed to transport prawns and other seafood to markets in Yangon from Rakhine State and Ayeyarwady Region. Shorter delivery times were essential because the boats lacked refrigeration equipment and relied on ice to keep the catch fresh. “Although there’s definitely a demand for prawns without their heads removed, most fishermen tend to cut off the head because it’s too easy for bacteria to spread from the head to the body,” he said. Despite infrastructure challenges, the Department of Fisheries is striving to ensure that seafood meets international standards. Departmental officials conduct monthly factory checks to ensure that exporters are complying with processing laws, which include stringent hygiene regulations.

In early June, the Ministry of Livestock, Fisheries and Rural Development said it would grant K1.5 billion (about US$1.5 million) to livestock breeders and fish farmers to help boost capacity and export revenues. Fishery exports generated revenue of about US$536 million in the 2013-14 fiscal year, according to a Myanmar Fishery Federation official, a decline on $650 million from last fiscal year, from government data. Ocean Harvest is approved by the Food and Drug Administration in the United States and 80 percent of the 400 tonnes of prawns, squid and fish it exports each year is destined for restaurants in Los Angeles or Las Vegas, said U Myat Aung Nyunt. “Until the sanctions were lifted, we mostly exported to Japan,” he said. “However Japanese buyers tend to buy smaller quantities of a particular size or species. The US is a constant buyer and often in bulk,” he said. A hotelier in Los Angeles was so impressed by the quality of Ocean Harvest’s produce that U Myat Aung Nyunt’s family was invited for an all-expenses paid holiday last year. Indonesia and Australia are other popular export destinations, U Myat Aung Nyunt said. “The Australians are clever – they sell the best of their seafood to Japan and then import for domestic consumption,” he said, laughing. The European Union is a less appealing destination, as it offers much lower prices than the US. “I’m not sure why that is – it could be that buyers in the EU are sourcing seafood from markets elsewhere that are cheaper.” U Myat Aung Nyunt said Ocean Harvest was cheated out of

Fish Farm, Yangon, Myanmar. Photo: Keelung

a $200,000 payment last year for a consignment of freshwater fish sent to the Middle East and he will no longer supply companies based in the region. “I’m not sure whether it was the agent in Yangon or the company in the Middle East who was responsible for not paying me,” he said. “After a few containers were released from the cargo, the company had told me they had a cash shortfall and asked if I could release the entire order – and that I’d be paid the following week. “If I’d said no, I would have had to pay extra storage costs until the entire amount came through; we had a gentleman’s agreement.” The company in the Middle East refused to acknowledge U Myat Aung Nyunt’s demands for payment and his efforts to seek legal redress in Yangon were unsuccessful because the agent lacked assets. “Not even a car!” said U Myat Aung Nyunt. Many exporters in Myanmar had lost money in deals with Middle Eastern companies, he said. “Sometimes even their banks operate dishonestly, such as by allowing containers to be released before money has been deposited,” U Myat Aung Nyunt said.

“And often it’s all done through brokers and we don’t know who the company at the end of the line is,” he said. “When we supplied to Iraq, for example, our goods would be dropped in Kuwait and taken to Iraq by a separate transport company. We can’t exactly go to Iraq to find out what happened to an outstanding payment.” Despite various challenges, U Myat Aung Nyunt is optimistic about his company’s future prospects. And those of his family. In June his daughter, Ma Myint Myat, 26, opened a restaurant on Parami Road. In a nod to her father’s line of business she called it ‘Crustacean’. “I supply all the seafood to my daughter’s restaurant,” said U Myat Aung Nyunt. “She worked at Ocean Harvest for five years and after getting an MBA, she decided she wanted to run her own business.” Ocean Harvest also supplies a Germany company that operates flights for VIPs. “But we stick to exporting because the prices are better for us,” said U Myat Aung Nyunt. Mizzima Business Weekly, 10/7/2014. Source: mizzima.com ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 91

Asean Fisheries

The Philippines: A large seafood producer in the globe Considered the gateway to the Eastern Asian economic region with many airports and seaports convenient for trade, the Philippines has long remained one of the world’s top seafood producers, especially tuna and seaweed. By Hong Ha

A corner of the seafood market in Ormoc City, the Philippines

ith 7,107 islands, the Philippines possesses abundant marine resources and is placed in the list of the world’s leading seafood producers. For long, the fishery industry has been one of key economic sectors of this country, providing jobs for more than 1.5 million people.

In 2013, the fisheries sector recovered from its negative growth in the previous year and came up with 1.23 percent production gain. The increase was attributed to the positive growths in the first to third quarters which offset the slide in production in the fourth quarter of the year. Gainers were milkfish

and yellowfin tuna whose annual output grew by 3.7 percent. Tilapia, black tiger prawn and skipjack sustained their upward trends in production. Seaweed, on the other hand, continued to experience a drop in output setting at 11 percent lower than last year. The biggest decline of 18.46 percent was recorded

The Philippines’s tuna exports (2007-2011) Products (MT) Fresh/ chilled/ frozen Smoked Canned Total value (US$ million)

2007 26,854 0.4 48,284 218.55

2008 32,365 17 76,910 395.94

Source: NSO and BAS (2007-2010)

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Viet Nam’s seafood export and import values to the Philippines, 2008-2013 (US$ million)

2009 23,504 83,640 346.40

2010 33,688 76,801 359.38

2011 22,027 13,933 58,071 314.507

Source: Bureau of Agricultural Statistics (BAS), Philippine Statistics Authority

during the fourth quarter of the year.

countries in terms of fresh/ frozen skipjack by foreign fishing vessels and canned products. The tuna for canneries in General Santos City, industry is mainly concentrated South Cotabato. The growth was Capture fisheries in the city of General Santos with likewise due to increased fishing Filipino waters are naturally tuna auction markets and the Tuna operations of commercial vessels in blessed with a variety of aquatic Festival in September every year, the high seas. Roundscad, skipjack, The Philippines’s species such as Indian sardines, whereastuna the exports majority(2007-2011) of seafood yellowfin tuna, indian sardines yellowfin tuna, frigate tuna, trade activities take and frigate tuna were the top five Products (MT) 2007 2008place in 2009 2010 2011 skipjack tuna, frozen roundscad, etc. Zamboanga City and 32,365 Davao City. 23,504 Fresh/ chilled/ 26,854 33,688 species for the sector.22,027 Commercial Smoked 17 13,933 On average, the fishing output In 2013,0.4 the Philippines’s fisheries contributed 27.22 percent Canned2.4 million MT per year. commercial 48,284 76,910gained83,640 76,801 58,071 reaches fisheries output to the total fisheries production. Total value (US$ 218.55 395.94 359.38fisheries 314.507 The Philippines hasmillion) been among 4.3 percent increase traced to more346.40Municipal posted a Source: NSO and BAS (2007-2010) the world’s top tuna producing unloadings of yellowfin tuna and 1.18 percent output shortfall in 2013. The production cut was Viet Nam’s seafood export largely attributed to lesser fishing and import values to the Philippines, 2008-2013 (US$ million) operations of sustenance fishermen 60 due to rough seas and several typhoons that visited the country 50 during the year. Marine municipal 40 fisheries shared 90.45 percent of the total municipal fisheries Exportkhẩu value Xuất 30 production. The remaining 9.55 Importkhẩu value Nhập 20 percent came from inland fisheries. Indian sardines, roundscad, big10 eyed scad and frigate tuna were the top species for the sector. 0 2008 2009 2010 2011 2012 2013 Municipal fisheries accounted for Source: VASEP

The structure of Vietnamese seafood imports into the Philippines, 2013 Tôm Shrimp

ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014 93 CáOther các loại khác species

20 10 0

Asean Fisheries

2008

2009

2010

2011

2012

2013

Source: VASEP

30.32 percent of the total fisheries output in 2013.

The structure of Vietnamese seafood imports into the Philippines, 2013

Aquaculture Aquaculture in the Philippines has a long history and involves many species and farming practices in diverse ecosystems. Most of the production comes from the farming of seaweed, milkfish, tilapia, shrimp, carp, oyster and mussel. In particular, the first four items have been main contributors to making the Philippines one of the largest seafood producers in the world. Aquaculture production in 2013 grew by 1.82 percent compared with the previous year’s output. Aquaculture comprised 42.46 percent of the total fisheries output. Production of milkfish, tilapia and black tiger prawn increased during the year due to more harvests from aqua farms. These species accounted for 84.53 percent of the total aquaculture production. Other species like carp, catfish and oyster also pulled up aquaculture output for the year. The Philippines is seeking to boost catfish production, setting the goal of offsetting pangasius fillet imports from other countries such as Viet Nam by 2016. Main pangasius farming areas in the Philippines include Cordillera Administrative Region, Cagayan Valley, Central Luzon, Southern Tagalog and Central Mindanao.

Processing and trade activities In 2010, the Philippines had more than 100 seafood processing factories, but only 37 were allowed to export to the EU, including 6 milkfish exporters, 18 fresh/ frozen/canned tuna exporters, 3 shrimp paste exporters, 2 frozen 94 ASEAN SEAFOOD vol 1 Issue 01 JUL/AUG 2014

Tôm Shrimp 14%

Nhuyễn thể Mollusk 0%

CáOther các loại khác species 17%

Cá ngừ Tuna 16%

Pangasius Cá tra 53% Source: VASEP

shrimp exporters and 8 mollusk, sardines and mackerel exporters. In recent years, a number of shrimp processing companies have went out of business or cut back production due to the dwindling supply of shrimp. The remainders are mostly large or medium enterprises. The Philippines was a major seafood supplier of the US, Japan, Hong Kong, Taiwan, China and Spain in 2013 with the total export value of US$558 million. The country imported US$241 million worth of seafood products such as mackerel, tuna, pangasius, shrimp, mollusk, etc. from such markets as China, Viet Nam, Papua New Guinea, Japan, Korea, the US, Norway, Indonesia, India and Chile.

Main export items Tuna Canned and frozen tuna have been the Philippines’s leading export items. According to the Filipino Bureau of Fisheries and Aquatic Resources (BFAR), the period 2000-2010 saw a rise in canned tuna exports but a fluctuation in frozen tuna exports. Export prices of both products increased between 2006 and 2010. Frozen tuna was mostly exported

to Japan, Korea, Hong Kong and the US, whereas the major markets for canned tuna were the EU (70 percent), the US (20 percent) and Japan (10 percent). Besides enhancing exports of high value tuna products from the domestic supply of raw materials, the Philippines has boosted raw tuna imports for processing for export to enjoy tariff preferences for canned tuna. At the end of 2012, there were seven tuna canneries in the Philippines, including six canneries in General Santos and one cannery in Zamboanga. Besides, the country had two more in Papua New Guinea with the annual capacity of 50,000 MT. There were more than 15 frozen tuna processors in the Philippines, 80 percent of which were located in General Santos City. The Philippines had also 40 valueadded tuna processing factories. Shrimp Black tiger prawn accounts for approximately 90 percent of the total shrimp export volume of the Philippines, and the rest comes from vannamei and other shrimp species. The main markets of Filipino shrimp comprise China, Thailand, Viet Nam, Australia, Canada, France, the US and EU.

Seaweed According to the CBI, the Philippines is a long-standing producer of carrageenan, a product extracted from red edible seaweed. Carrageenan and raw dried seaweed are Filipino seaweed products exported to China, Thailand, the US, Spain and France.

Viet Nam’s seafood imports into the Philippines Since 2008, Vietnamese aquatic exports to the Philippines have

undergone a continuous climb, from US$10.6 million in 2008 to more than US$50 million in 2013. Viet Nam has become the second largest seafood supplier of the Philippines, only after China. By comparison, the Philippines has exported many seafood items to Viet Nam but the volume has stayed insignificant and followed a downward trend. Among Viet Nam’s seafood exports to the Philippines, pangasius has been the key item (53 percent in

2013), followed by tuna (16 percent), shrimp (14 percent) and other species (17 percent). Pangasius imports into the Philippines had steadily increased for years before a slight year-on-year decline of 2.3 percent in 2013, valued at US$26.7 million. It is attributed to the fact that this market has been boosting catfish production in order to avoid reliance on imports from other countries, including Viet Nam. As neighboring countries, Viet Nam and the Philippines share common things in fisheries development with the latter having good experience in communitybased fisheries management. For the past years, the two sides have undertaken a number of cooperation activities in the seafood sector. The Committee on Fisheries’ fourth meeting of the Memorandum of Agreement on Fisheries Cooperation between the Government of Viet Nam and the Government of the Philippines is expected to take place in July 2014 in Viet Nam with further discussion on fishing and aquaculture cooperation. Besides, the anticipated establishment of the ASEAN Economic Community (AEC) by the end of 2015, aiming to create a single market and production base for ASEAN countries as well as a region of equitable economic development, high competitiveness and full integration into the global economy, will bring new opportunities for Vietnamese seafood exporters to the Philippines. Compiled by Phuong Thao

Tilapia has been among main contributors to making the Philippines one of the largest seafood producers in the world.

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A Day In The LiFe

South East Asia Grilled Mixed Seafood with Herbs

his recipe was taken from centuries old cooking techniques and when possible applied modern cooking methods and/or ingredients. It uses Asian cooking styles, Asian Spices, Asian Sauces and Asian Ingredients. The style of cooking may have a slight alteration while still maintaining the dishâ&#x20AC;&#x2122;s overall purpose.

Recipe makes for 2-4 Servings 1/4 lb shrimp 1/4 lb small octopus 1/4 lb scallops 1 tbsp lime juice Skewers

Directions:

Marinade:

1 tsp cumin seeds, toasted 1/2 cup chopped fresh cilantro leaves 6 cloves garlic, finely chopped 1/2 tsp ground turmeric 1/2 tsp chili powder

1 tsp dried thyme leaves 1/2 tsp black pepper 2 tbsp extra-virgin olive oil 1 tbsp fresh lemon juice

Make the marinade by grinding the cumin seeds to a powder. Add the rest of the ingredients, except the oil and lemon juice and grind to a coarse paste. During grinding, slowly drizzle in the olive oil until all ingredients are ground. Add any remaining olive oil and the lemon juice. In a bowl, add the seafood, lime juice and 1/4 of the marinade. Toss to evenly coat the seafood. Marinate for 30 minutes. Remove the seafood from the marinade and thread the same seafood on one skewer; this allows you to better control the grill time. Place the skewered seafood onto the grill over high heat. for about 2-3 minutes. When the seafood starts to brown, move it to the medium heat zone and grill it for another 3-4 minutes, turning frequently. When done, remove from skewers and serve on platter with the remaining 1/2 cup of the marinade.

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