GLOBEFISH - Importance of APEC in world fisheries and aquaculture - Mar 2010

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Importance of APEC in world fisheries and aquaculture Volume 100

Food and Agriculture Organization of the United Nations Products, Trade and Marketing Service Viale delle Terme di Caracalla 00153 Rome, Italy Tel.: +39 06 5705 5074 Fax: +39 06 5705 5188 www.globefish.org

GLOBEFISH RESEARCH PROGRAMME

Importance of APEC in world fisheries and aquaculture

Volume 100


Importance of APEC in world fisheries and aquaculture

By

Helga Josupeit (March 2010)

The GLOBEFISH Research Programme is an activity initiated by FAO's Products, Trade and Marketing Service, Rome, Italy and financed jointly by: -

NMFS (National Marine Fisheries Service), Washington, DC, USA FROM, Ministerio de Agricultura, Pesca y Alimentación, Madrid, Spain Ministry of Food, Agriculture and Fisheries, Copenhagen, Denmark European Commission, Directorate General for Fisheries, Brussels, EU Norwegian Seafood Export Council, Tromsoe, Norway FranceAgriMer, Montreuil-sous-Bois Cedex, France ASMI (Alaska Seafood Marketing Institute), USA DFO (Department of Fisheries and Oceans), Canada SSA (Seafood Services Australia), Australia

Food and Agriculture Organization of the United Nations, GLOBEFISH, Products, Trade and Marketing Service Viale delle Terme di Caracalla, 00153Rome, Italy – Tel.: (39) 06570 56313 E-mail: GLOBEFISH@fao.org - Fax: (39) 0657055188 – http//:www.globefish.org


The designation employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

Helga Josupeit; IMPORTANCE OF APEC IN WORLD FISHERIES AND AQUACULTURE GLOBEFISH Research Programme, Vol.100 Rome, FAO. 2010. p. 34.

The document highlights the importance of APEC economies in fisheries and trade. This importance has been growing during the past decade. APEC economies are major fish producers, traders and consumers. Fisheries and aquaculture are the source of income for 26 million fishers, that means that some 100 million people depend on this sector for their livelihood.

Report layout prepared by Tony Piccolo FAO – GLOBEFISH Cover photograph courtesy of Mr. Francisco Blaha

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any means, electronic, mechanical, photocopying or otherwise, without the prior permission of the copyright owner. Applications for such permission, with a statement of the purpose and extent of the reproduction, should be addressed to the Director, Information Division, Food and Agriculture Organization of the United Nations, Viale delle Terme di Caracalla, 00100 Rome, Italy.

Š FAO 2010

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TABLE OF CONTENT

1.

EXECUTIVE SUMMARY.................................................................................................. 1

2.

IMPORTANCE OF APEC IN WORLD FISHERIES .......................................................... 3 2.1. 2.2. 2.3.

3.

TRADE OF FISHERY PRODUCTS ................................................................................... 9 3.1. 3.2. 3.3.

4.

EU ........................................................................................................................... 15 USA......................................................................................................................... 17 Fish consumption of APEC region versus rest of the world ...................................... 18 Fish price developments........................................................................................... 20

IMPORTANCE OF FISHERIES IN APEC ....................................................................... 21 5.1. 5.2. 5.3. 5.4. 5.5.

6.

Export of fishery products .......................................................................................... 9 Imports o fishery products........................................................................................ 11 Intra-regional fish trade among APEC economies .................................................... 13

IMPORTANCE AS FISH EXPORTER TO MAIN MARKETS ........................................ 15 4.1. 4.2. 4.3. 4.4.

5.

Total fisheries production........................................................................................... 3 Capture Fisheries ....................................................................................................... 6 Aquaculture ............................................................................................................... 7

Importance of fisheries in agricultural sector and GDP in APEC economies............. 21 Importance of fisheries in creating employment in APEC economies ....................... 22 Importance of fisheries in food supply in APEC economies ..................................... 23 Role of fish in total merchandise trade in APEC economies ..................................... 25 Role of fish in agricultural trade ............................................................................... 27

ACCESS TO MARKET REQUIREMENTS FOR APEC ECONOMIES ........................... 30 6.1. 6.2. 6.3.

Health and sanitary measures ................................................................................... 30 Labelling requirements............................................................................................. 32 IUU reduction measures........................................................................................... 34

TABLES TABLE 1: WORLD'S TOP TEN FISH PRODUCERS ............................................................... 4 TABLE 2: APEC EXPORT OF FISH AND FISHERY PRODUCTS IN VALUE TERMS ........ 9 TABLE 3: TOP TEN FISH EXPORTERS - IN VALUE TERMS............................................. 10 TABLE 4: TOP TEN FISH IMPORTERS .................................................................................... 12 TABLE 5: APEC IMPORTS OF FISHERY PRODUCTS FROM OTHER APEC ECONOMIES ....... 14 TABLE 6: APEC EXPORTERS FO FISHERY PRODUCTS TO OTHER APEC ECONOMIES ........ 15 TABLE 7: EU IMPORTS FROM APEC ECONOMIES - BY COUNTRY OF DESTINATION ......... 16 TABLE 8: EU IMPORTS FROM APEC ECONOMIES - BY COUTNRY OF ORIGIN .......... 17 TABLE 9: US IMPORTS FROM APEC ECONOMIES - USD MILLION............................... 18 TABLE 10: PER CAPITA SUPPLY OF FISH IN APEC ECONOMIES ................................... 19

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TABLE 11: SHARE OF FISH IN AGRICULTURAL GDP AND IN TOTAL GDP ................. 21 TABLE 12: EMPLOYMENT IN APEC ECONOMIES IN THE FISHERIES SECTOR ........... 22 TABLE 13: SHARE OF FISH IN TOTAL ANIMAL PROTEIN INTAKE IN APEC ECONOMIES ........................................................................................................................... 24 TABLE 14: SHARE OF FISH IN TOTAL PROTEIN INTAKE IN APEC ECONOMIES ........ 25 TABLE 15: SHARE OF FISH EXPORTS IN TOTAL MERCHANDISE EXPORTS IN APEC ECONOMIES................................................................................................................. 26 TABLE 16: SHARE OF FISH EXPORTS IN TOTAL MERCHANDISE IMPORTS IN APEC ECONOMIES................................................................................................................. 27 TABLE 17: EXPORTS FROM APEC ECONOMIES - COMPARISON AGRICULTURE VERSUS FISHERIES AND AQUACULTURE (FISH) ............................................................ 28 TABLE 18: IMPORTS INTO APEC ECONOMIES - COMPARISON AGRICULTURE VERSUS FISHERIES AND AQUACULTURE (FISH) ............................................................ 29 GRAPHS: GRAPH 1: TOTAL FISHERY PRODUCTION .......................................................................... 3 GRAPH 2: APEC SHARE IN TOTAL WORLD FISH PRODUCTION (CAPTURE AND AQUACULTURE)...................................................................................................................... 4 GRAPH 3: CHINA AND REST OF WORLD FISH PRODUCTION (CAPTURE AND AQUACULTURE)...................................................................................................................... 5 GRAPH 4: APEC FISH PRODUCTION (CAPTURE AND AQUACULTURE) BY SPECIES... 5 GRAPH 5: CAPTURE PRODUCTION....................................................................................... 6 GRAPH 6: APEC CAPTURE PRODUCTION - BY SPECIES ................................................... 7 GRAPH 7: APEC SHARE IN WORLD AQUACULTURE PRODUCTION.............................. 8 GRAPH 8: APEC AQUACULTURE PRODUCTION ................................................................ 8 GRAPH 9: APEC EXPORTS BY COMMODITY..................................................................... 10 GRAPH 10: APEC IMPORTS BY PRODUCTS ....................................................................... 11 GRAPH 11: APEC FISH IMPORTS VERSUS FISH EXPORTS .............................................. 12 GRAPH 12: NET FISH IMPORTS APEC ECONOMIES ......................................................... 13 GRAPH 13: SHARE OF APEC INTRA-REGIONAL TRADE IN IMPORTS IN SELECTED APEC ECONOMIES................................................................................................................. 13 GRAPH 14: PER CAPITA SUPPLY IN APEC ECONOMIES.................................................. 20 GRAPH 15: FISH PRICES INDEX COMPARED WITH FOOD AND MEAT PRICES........... 20 GRAPH 16: IMPORTANCE OF FISH IN PROTEIN SUPPLY IN APEC ECONOMIES ......... 23

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1. EXECUTIVE SUMMARY Fisheries and aquaculture continue to be an important source of food, revenues and employment. Fisheries and aquaculture production is an important contributor to a number of national economies across the Asia-Pacific Economic Cooperation (APEC) region1 as well as a vital part of rural people's livelihoods. Fishing and fisheries also have deep cultural significance, especially for the Asian members of APEC. It is not merely a source of income or food, but traditional fishery products such as fish sauce and fish-based condiments have always been important ingredients in people’s daily diets. Both the industrial and the artisanal sector are important for capture fisheries and aquaculture in APEC economies. Industrial fisheries dominate the fishing activities in Chile, Peru and the USA. Whereas, in Indonesia, Thailand, the Philippines, and also in Japan, artisanal fisheries play an important part in capture fisheries. No statistics are available on the relative contribution to production by artisanal and industrial fisheries. Aquaculture production, likewise, comprises both small scale and large scale operations. In Asian economies (Viet Nam, Thailand, the Philippines and Indonesia), there are mainly small scale fish farmers supplying the domestic and export market. In contrast, aquaculture production in the Americas is mainly large-scale. Out of the 26.2 million fishermen and fish farmers recorded in APEC economies, probably some 90% are employed in small scale activities. Over twenty four million people are estimated to work in small scale fisheries related activities in APEC economies. These fishermen and fish farmers generally live in areas, where other employment opportunity are rare or inexistent. Total world capture fisheries and aquaculture2 reached a new record of almost 141 million tonnes in 2008. APEC alone accounts for 100 million tonnes of this production. Infact, almost the entire increase in world fisheries production is originating in APEC economies. Carps are by far the main species produced in APEC economies due to the strong production in China. Anchovies account for the bulk of Peruvian production, and thus represent the second major fish species produced by APEC economies. The share of APEC economies in total world capture fisheries has increased over the years to reach 65% in 2007. The most important producers of capture fisheries in the region are China (14 million tonnes in 2007) and Peru (7 million tonnes). Aquaculture in APEC economies increased impressively, due to the strong performance of China. Overall, aquaculture output in the region was 600 000 tonnes in 1950 reaching 40.5 million tonnes in 2007. Surprisingly the share of APEC in total world aquaculture production did not change much in recent years, going from 53% in 1950 rising, quickly to 70% in the mid 1950s, reaching 80% in 1993, and staying at this share ever since.

1

2

Asia-Pacific Economic Cooperation, for more information check www.apec.org excluding aquatic plants

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Export earnings of APEC economies from fish have increased significantly during the last thirty years going from a mere USD 3 900 million in 1976 to reach USD 45 600 million in 2007. APEC accounts for about one half of total world fish exports in value terms, a share which is substantially lower than the share in production. However, APEC is also a very important importer of fishery products. In 2007, total imports into APEC economies reached USD 46 900 million, or again about half world fish imports. APEC economies represent both half of fish imports and exports (in value terms). APEC is a net fish importer, although the difference between imports and exports (USD 1 200 million in 2007) is significantly lower than the peak of USD 7 000 million reached in 2000. Fewer imports into Japan and increasing exports from China are the main reason behind the decline in net imports by APEC economies in recent years. Intra-regional trade in fishery products among APEC economies is extremely important. About 80% of the import value (USD 36 500 million) of fish imports by APEC economies originates from inside APEC. EU imports of fishery products from APEC economies grew quite impressively from USD 4 500 million in 2003 to USD 8 700 million in 2007. APEC economies supply about one half of EU imports of fishery products from outside the EU, although only 20% of total APEC exports of fishery products are destined to the EU. Total agriculture3 exports from APEC economies were about USD 280 000 million in 2006. The most important exporters of agriculture products in the region are the USA and China. While the importance of fish exports in agriculture exports is marginal at 5.5% for the USA, for China the foreign exchange earnings from fisheries products account for about 29% of the value of total agricultural products exports. The importance of fisheries in the national GDPs in APEC economies is limited to a mere average 0.6% of the total GDP. However, in some economies this share is as high as 4% (Viet Nam) and 5% (Chile). Agriculture as a whole contributes to about 3% of the GDP in all APEC economies, to which fisheries contribute almost one fifth. In some economies, the share of fisheries contribution to the agriculture GDP is significantly higher, such as Chile (64%), Peru (25%) and the USA (37%). Fish is an important source of animal protein, especially in APEC food deficit countries and the overall per capita supply of fishery products is increasing in APEC economies. In 2005, APEC economies had an average supply of 26.4 kg per person per year, comparatively higher than the world average of 16.7 kg. World fish trade is regulated at national and regional level through various measures, such as sanitary and quality measures, tariffs, anti IUU4 measures to name just a few. In addition to these mandatory requirements enforced by importing countries, there exist voluntary certification schemes such as environmental certification, social certification, brands/branding, etc. These certification schemes are implemented by private entities or non profit organizations and/or supermarkets. 3 4

In the following agriculture trade includes fishery products IUU fishing = illegal, unreported and unregulated fishing

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2. IMPORTANCE OF APEC IN WORLD FISHERIES 2.1. Total fisheries production Total world capture fisheries and aquaculture5 reached a new record of almost 140 million tonnes in 2007. The APEC economies6 accounts for almost 100 million tonnes of this production. Practically the whole increase in world fisheries production originates in this part of the world.7 Graph 1: World production (capture and aquaculture) - APEC versus rest of the world 160

million tonnes

140 120 100

APEC Other

80 60 40 20

19 50 19 54 19 58 19 62 19 66 19 70 19 74 19 78 19 82 19 86 19 90 19 94 19 98 20 02 20 06

0

5

excluding aquatic plants please note in the case of an APEC economies with both capture fisheries in the Pacific and in other oceans, the total production in the country is considered, not only the production coming from the Pacific fisheries. 7 all statistics are from FISHSTAT, except when otherwise stated. 6

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100 90 80 70 60 50 40 30 20 10 0

19 50 19 53 19 56 19 59 19 62 19 65 19 68 19 71 19 74 19 77 19 80 19 83 19 86 19 89 19 92 19 95 19 98 20 01 20 04 20 07

%

Graph 2: APEC share in total world fish production (capture and aquaculture)

As a consequence of booming production, the share of APEC economies in total world fish production grew strongly from 47% in 1950 to 70% at present. However, the share has been steady at around 70% since the early 1990s, as Graph 2 shows.

Table 1: World’s top ten fish producers (1000 tonnes)8 Economy China India Peru Indonesia USA Japan Chile Viet Nam Thailand Russia Other TOTAL

2000 35.8 5.6 10.7 4.8 5.2 5.8 4.6 2.1 3.6 4.0 42.9 125.1

2001 36.5 5.9 8.0 5.1 5.4 5.5 4.3 2.3 3.6 3.7 44.4 124.7

2002 38.0 5.9 8.8 5.2 5.4 5.2 4.8 2.5 3.8 3.3 44.4 127.1

2003 38.9 6.0 6.1 5.5 5.5 5.5 4.1 2.7 3.9 3.4 44.7 126.3

2004 40.5 6.2 9.6 5.7 5.5 5.0 5.5 3.1 4.1 3.0 45.1 133.5

2005 42.1 6.7 9.4 5.9 5.4 5.1 5.0 3.4 4.1 3.3 45.4 135.6

2006 43.9 7.0 7.0 6.1 5.4 5.0 4.9 3.6 4.0 3.4 45.9 136.3

2007 45.4 7.3 7.2 6.3 5.3 4.9 4.6 4.3 3.8 3.6 46.8 139.5

The predominance of APEC economies among other fish producing economies is without question when considering that nine out of the ten top fish producing economies are in the APEC region.

8

Apec countries are listed in bold

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Graph 3: China and rest of world fish production (capture and aquaculture) 160 140 million tonnes

120 100

Non APEC APEC others China

80 60 40 20

19 5 19 0 53 19 5 19 6 5 19 9 62 19 6 19 5 6 19 8 7 19 1 74 19 7 19 7 8 19 0 8 19 3 8 19 6 8 19 9 9 19 2 95 19 9 20 8 0 20 1 04 20 07

0

By far, China is the dominant country in world fish production, with 45.4 million tonnes in 20079, or 30% of total production. China is also the driving force behind the outstanding performance of APEC economies in the world average. Graph 3 shows this quite clearly.

Graph 4: APEC Fish production (capture and aquaculture) by species

Other

120

million tonnes

100 80 60 40 20 0 50 53 56 59 62 65 68 71 74 77 80 83 86 89 92 95 98 01 04 07 1 9 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 2 0 2 0 2 0

Miscellaneous pelagic fishes Miscellaneous freshwater fishes Marine fishes not identified Herrings, sardines, anchovies Carp, barbel and other cyprinids

The world fisheries production is almost equally distributed between three production areas: China, APEC others and the rest of the world. China began its boom in production in the mid 1990s, through strong aquaculture development close to urban areas and by developing a substantial offshore fishery. 9

In 2007, China revised downward its production figures.

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Carp is by far the main species produced in APEC economies due to sizable production in China. Anchovies account for the bulk of Peruvian production, and thus represent the second major fish species produced by APEC economies. 2.2. Capture fisheries

Graph 5: capture production million tonnes

100 90 80 70 60

Apec

50 40 30

Other

20 10

19 50 19 53 19 56 19 59 19 62 19 65 19 68 19 71 19 74 19 77 19 80 19 83 19 86 19 89 19 92 19 95 19 98 20 01 20 04 20 07

0

The share of APEC economies in total world capture fisheries has increased over the years to reach 65% in 2007. The most important producers of capture fisheries in the region are China (14 million tonnes in 2007) and Peru (7 million tonnes). Indonesia, Japan and the USA produce more than 4 million tonnes of wild fish each. Overall the capture fisheries production in APEC economies has been relatively stable since the mid 1990s at 90 million tonnes.

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Graph 6: APEC Capture production - by species 70

Other

60 million tonnes

50 40 30 20 10

19 50 19 55 19 60 19 65 19 70 19 75 19 80 19 85 19 90 19 95 20 00 20 05

0

Tunas, bonitos, billfishes Miscellaneous pelagic fishes Marine fishes not identified Herrings, sardines, anchovies Cods, hakes, haddocks

With regard to capture fisheries in APEC economies the herring, sardine and anchovy group is the most important one, experiencing substantial fluctuations due to changes in oceanic conditions caused by El NiĂąo in the Southern Eastern Pacific. The overall production trend for this group of species is negative. In 1994 the production of these species peaked at over 20 million tonnes, while in 2007 only 13 million tonnes were produced. Hake and cod production also experienced a downward trend from the record production of 20 years ago.

2.3. Aquaculture Aquaculture in APEC economies increased impressively, due to the strong performance of China. Overall, aquaculture output in the region increased from a mere 600 000 tonnes in 1950 to 40.5 million tonnes in 2007.

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Graph 7: APEC share in world aquaculture production Graph 7: APEC share in world aquaculture production

100 90 80 70

%

60 50 40 30 20 10

19 50 19 53 19 56 19 59 19 62 19 65 19 68 19 71 19 74 19 77 19 80 19 83 19 86 19 89 19 92 19 95 19 98 20 01 20 04 20 07

0

Surprisingly the share of APEC in total world aquaculture production did not change much in recent years, going from 53% in 1950 rising quickly to 70% in the mid 1950s, reaching 80% in 1993, and staying at this level ever since.

Graph 8: APEC aquaculture production 45 40

million tonnes

35

Others Chile Thailand Indonesia Viet Nam China

30 25 20 15 10 5 0 1950

1960

1970

1980

1990

2000

2007

Aquaculture in APEC economies equates mainly with China. This country alone accounts for 75% of total aquaculture production in APEC economies. Viet Nam, Indonesia, Thailand and Chile are also important producing economies in the APEC group. Carp dominates Chinese

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aquaculture output, while shrimp is important in Viet Nam, Indonesia and Thailand. In recent years, pangasius began to gain importance in Viet Nam with an output of some 1.2 million tonnes in 2008. Chilean aquaculture concentrates on salmon and mussels. In 2009, Chilean salmon production will decline sharply, as the economy is experiencing a severe disease problem. Feed supply to aquaculture is the mainly stumbling block for future developments. Fishmeal is the core ingredient into feed formulations for aquaculture production, and it is estimated that about 57% of the world fishmeal production goes to the feed producing industry for aquaculture production. The share of total fish oil production in aquaculture feed is even higher at 87%. Research in replacing fishmeal with other protein meals in aquaculture feed is ongoing, but has not yet been successful. Fishmeal production is stable at 5.5 million tonnes, which based on current feed formulations, will place a limit on aquaculture production of carnivorous species, especially in APEC economies. Carp, for example, as a herbivore, is not limited by fishmeal production. 3. TRADE OF FISHERY PRODUCTS 3.1. Export of fishery products Table 2: APEC export of fish and fishery products in value terms (USD million) Economy

China Thailand USA Canada Chile Viet Nam Russian Federation*) Indonesia Peru Japan Chinese Taipei Korea, Republic of Australia New Zealand Mexico Malaysia Philippines Singapore Papua New Guinea China, Hong Kong SAR Brunei Darussalam TOTAL (*) USSR before 1993

1976

1980

1990

2000

2007

0.1 0.2 0.4 0.6 0.1 0.0 0.2 0.1 0.2 0.7 0.4 0.3 0.1 0.0 0.2 0.1 0.0 0.0 0.0

0.3 0.4 1.0 1.1 0.3 0.0 0.3 0.2 0.3 0.9 0.8 0.7 0.3 0.2 0.6 0.1 0.1 0.1 0.0

1.3 2.3 3.1 2.3 0.9 0.2 0.9 1.0 0.4 0.9 1.3 1.5 0.5 0.4 0.4 0.2 0.4 0.4 0.0

3.7 4.4 3.1 2.8 1.9 1.5 1.5 1.6 1.1 0.8 1.8 1.5 1.0 0.7 0.7 0.2 0.5 0.5 0.1

9.3 5.7 4.4 3.7 3.7 3.8 2.4 2.1 2.0 1.7 1.2 1.1 0.9 0.9 0.8 0.8 0.5 0.4 0.1

0.1 0.0 3.9

0.1 0.0 7.8

0.7 0.0 19.0

0.1 0.0 29.4

0.1 0.0 45.6

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Export earnings of APEC economies from fish have increased significantly during the thirty years for which FAO keeps statistics. Back in 1976, export value was USD 3 900 million while in 2007 the impressive figure of USD 45 600 million was reached. The APEC economies account for about one half of total world fish exports’ value, a share which is substantially lower than the share in production. This indicates that a good part of the production remains in the domestic market (especially the Chinese carp production) and that some of the products exported fall in a lower price range (fishmeal from Peru). Thus it does not come as a surprise that only six of the top ten fish exporting economies are in the APEC group.

Table 3: Top ten fish exporters - in value terms (USD million)10 Economy China Norway Thailand USA Denmark Canada Chile Viet Nam Spain Netherlands

2000 3.6 3.5 4.4 3.1 2.8 2.8 1.8 1.5 1.6 1.3

2001 4.0 3.4 4.1 3.4 2.7 2.8 1.9 1.8 1.8 1.4

2002 4.5 3.6 3.7 3.3 2.9 3.1 1.9 2.0 1.9 1.8

2003 5.2 3.7 3.9 3.4 3.2 3.3 2.1 2.2 2.2 2.2

2004 6.6 4.2 4.1 3.7 3.6 3.5 2.5 2.4 2.6 2.5

2005 7.5 4.9 4.5 4.3 3.7 3.6 3.0 2.8 2.6 2.8

2006 9.0 5.5 5.2 4.2 4.0 3.7 3.6 3.4 2.9 2.8

Graph 9: APEC exports by commodity 45,000 40,000

Other Tuna,whl.or.pcs,prpd,prs Shrimps, prawns, frozen Other fish,frozen ex.roe Other crustacea, frozen Oth.fish,whl.pcs,prpd,pr Molluscs,prpd,prsvrd,nes Flr.etc.fish,animal feed Fish fillets, frozen Crustaceans, not frozen Crustacea,prpd,prsvd,nes

million USD

35,000 30,000 25,000 20,000 15,000 10,000 5,000

19 76 19 79 19 82 19 85 19 88 19 91 19 94 19 97 20 00 20 03 20 06

0

The major commodity exported by APEC economies are frozen fish fillets. This is mainly due to strong and increasing exports of fillets from China (Alaska pollack and tilapia), Viet Nam 10

APEC countries in listed in bold

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(pangasius) and Chile (hake and salmon). The importance of frozen shrimp exports is declining, with Viet Nam, Thailand, and Indonesia as main exporters among APEC economies. 3.2. Imports of fishery products APEC is a very important importer of fishery products. In 2007, total imports into APEC economies reached USD 46 900 million, or again about half world fish imports. APEC economies represent both half of fish imports and exports (in value terms).

Graph 10: APEC imports by products- value 50 45

Other Tuna,frozen ex.roe Shrimps, prawns, frozen Salmonoids,frozen ex.roe Other fish,frozen ex.roe Other crustacea, frozen Flr.etc.fish,animal feed Fish fillets, frozen Cuttlefish,frz,dry,saltd Crustaceans, not frozen Crustacea,prpd,prsvd,nes

USD 1000 million

40 35 30 25 20 15 10 5

19 76 19 79 19 82 19 85 19 88 19 91 19 94 19 97 20 00 20 03 20 06

0

Frozen shrimp is the most important item imported into the APEC region. This commodity accounts for 13% of total APEC imports. However, some twenty years ago, this share was as high as 30%. Declining shrimp prices and lower imports by Japan, traditionally the main shrimp market, were responsible for the decline in shrimp import values. Frozen fillets have increased their share in APEC fish imports in recent years, mainly due to considerable purchase by China for its processing and re-exporting industry.

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Table 4: Top ten fish importers (USD million)11 Economy Japan USA Spain France Italy China Germany UK Denmark Korea, Republic of Other TOTAL

2000 15.5 10.5 3.4 3.0 2.5 1.8 2.3 2.2 1.8 1.4 16.0 60.4

2001 13.5 10.3 3.7 3.1 2.7 1.8 2.4 2.2 1.8 1.6 17.0 60.1

2002 13.7 10.1 3.9 3.2 2.9 2.2 2.4 2.3 1.9 1.9 17.5 62.0

2003 12.4 11.7 4.9 3.8 3.6 2.4 2.6 2.5 2.2 1.9 19.8 67.8

2004 14.6 12.0 5.2 4.2 3.9 3.1 2.8 2.8 2.4 2.2 22.6 75.9

2005 14.5 12.0 5.6 4.6 4.2 4.0 3.2 3.2 2.6 2.4 25.6 81.9

2006 14.0 13.3 6.4 5.1 4.7 4.1 3.7 3.7 2.9 2.7 29.3 90.0

The top two importing economies in the world are from the APEC region (Japan and USA), but the top ten importers include only another two APEC economies (China and Republic of Korea). The EU represents an important share of world fish importers, accounting for about one third of total imports.

Graph 11: APEC: Fish imports versus fish exports 50,000 45,000 40,000 USD million

35,000 30,000

export imports net imports

25,000 20,000 15,000 10,000 5,000 2006

2004

2002

2000

1998

1996

1994

1992

1990

1988

1986

1984

1982

1980

1978

1976

0

APEC is a net importer with regard to fisheries products. In 2007 the difference between imports and exports was USD 1 200 million, significantly lower than the peak of USD 7 000 million reached in 2000. Fewer imports into Japan and increasing exports from China are the main reason behind the decline in net imports by APEC economies in recent years.

11

APEC countries are highlighted in bold

- 12 -


Graph 12: Net fish imports APEC economies 8,000 7,000

USD million

6,000 5,000 4,000 3,000 2,000 1,000

19 76 19 78 19 80 19 82 19 84 19 86 19 88 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06

0

3.3. Intra-regional fish trade among APEC economies

A i D ust ar ral us ia sa la Ca m na da C hi na C ,H hi le on C g Ko hin ng a SA R Ja p M an al ay si a P Ph e ilip ru p U Si ine ni n te ga s d po St at Th re es a of ilan Am d e Vi rica et N am TO TA L

100 90 80 70 60 50 40 30 20 10 0

Br un e

%

Graph 13: Share of APEC intra-regional trade in imports in selected APEC economies

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Intra-regional trade in fishery products among APEC economies is extremely important. About 80% of the import value (USD 36 500 million) of fish imports by APEC economies originates from inside APEC. The main importing economies in the region (Japan and USA) obtain about 81% of their imports from other APEC economies. Japanese fish imports from APEC economies were USD 11 400 million in 2006, followed by the USA with USD 10 900 million. Also China and the Republic of Korea also import huge quantities of fishery products from other APEC economies. Table 5: APEC imports of fishery products from other APEC economies (USD million, 2006) Australia Brunei Darussalam Canada Chile China China, Hong Kong SAR Indonesia Japan Malaysia Mexico New Zealand Chinese Taipei Peru Philippines Korea, Republic of Russian Federation Singapore Thailand USA Viet Nam TOTAL Source: Calculated from COMTRADE

728.1 20.7 1603.4 107.5 3447.2 1549.0 145.1 11482.9 439.4 366.6 78.8 462.4 14.5 70.1 2452.5 457.4 586.9 940.8 10906.2 236.0 36095.4

China is by far the main fish exporting country to other APEC economies with a total value of USD 7 471 million or 82% of its total fish exports in 2006. The APEC region is also an important trading partner for fish from Thailand. Total exports to the region from Thailand were USD 4 000 million in 2006, or 77% of all its fish exports. Russia and USA export fish worth USD 3 000 million to fellow APEC economies. Overall, fish exports of APEC economies to non-APEC economies is rather small at USD 9 500 million. EU is the main trading partner taking over 90% of extra - APEC exports.

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Table 6: APEC exports of fishery products to other APEC economies (USD million, 2006) Australia Brunei Darussalam Canada Chile China China, Hong Kong SAR Indonesia Japan Malaysia Mexico New Zealand Chinese Taipei Peru Philippines Korea, Republic of Russian Federation Singapore Thailand USA Viet Nam TOTAL Source: Calculated from COMTRADE

809.7 8.1 3146.9 2837.6 7471.0 83.6 2162.1 1224.7 483.7 673.9 634.7 1287.5 1276.9 623.1 879.6 3019.5 166.2 3991.6 3040.7 2274.6 36095.4

4. IMPORTANCE AS FISH EXPORTER TO MAIN MARKETS 4.1. EU EU imports of fishery products from APEC economies grew quite impressively from USD 4 500 million in 2003 to USD 8 700 million in 2007. APEC economies represent about one half of EU imports of fishery products from outside the-EU. On the other hand, the EU is not really an important importer for APEC economies, representing only 20% of total APEC exports of fishery products. The main importer among EU countries of APEC fishery product is Germany, followed by Spain. For both countries, imports of fishery products from APEC economies more than doubled between 2003 and 2007. The main reasons behind these increases in the German market were more products, especially Alaska pollack fillets, coming from China.

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Table 7: EU imports from APEC economies, - by country of destination USD million Germany Spain France United Kingdom Italy Denmark Netherlands Belgium Poland Portugal Sweden Greece Czech Rep. Lithuania Romania Austria Finland Estonia Cyprus Slovakia Bulgaria Ireland Malta Latvia Hungary Slovenia Luxembourg Grand Total Source: EUROSTAT

2003

2004

2005

2006

2007

772.0 711.8 626.2 671.5 430.8 277.6 169.9 219.1 103.0 152.1 73.7 70.9 34.2 32.7 17.8 15.1 17.3 24.8 13.5 12.2 8.8 6.5 6.1 3.0 17.7 3.6 3.6 4495.4

846.1 851.3 673.9 702.5 482.6 271.1 199.9 268.9 129.6 172.8 92.3 57.2 36.6 22.1 27.0 19.4 22.3 20.1 14.7 14.5 10.0 8.8 3.6 2.7 4.9 2.3 2.2 4959.0

1058.8 963.6 856.0 872.8 576.5 396.6 281.3 323.8 188.5 200.9 102.3 70.9 39.3 42.7 41.5 23.4 23.7 20.0 14.6 14.6 13.4 12.7 4.7 4.9 4.3 2.3 0.9 6155.0

1411.8 1140.3 1051.6 950.5 675.1 488.1 385.1 409.6 251.8 261.1 124.0 77.1 46.7 41.1 54.6 29.6 27.5 23.5 18.1 17.1 18.9 13.1 4.8 8.0 4.9 3.0 0.2 7537.3

1650.0 1380.6 1103.6 1049.1 812.2 539.8 450.0 447.1 319.1 296.9 168.9 112.8 60.6 56.7 44.4 43.1 40.2 23.0 22.6 17.3 16.3 15.5 7.4 7.0 4.4 4.1 1.1 8693.6

China is by far the main exporter of fishery products among APEC economies to the EU. The total fish export earnings of this economy are USD 1 760 million, or 20% of total APEC exports. The export value from China to the EU grew impressively from USD 580 million in 2003 to USD 1 760 000 million in 2007. The main reason for this increase is the re-processing industry established in China. The USA are the second major trading partner with the EU, shipping fishery products worth more than USD 1 200 million. Viet Nam, Thailand and Chile are also important trading partners for fishery products with the EU.

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Table 8: EU imports from APEC economies, - by country of origin – USD million Partner Australia Brunei Darussalam Canada Chile China China, Hong Kong SAR Indonesia Japan Malaysia Mexico New Zealand Chinese Taipei Peru Philippines Rep. of Korea Russian Federation Singapore Thailand USA Viet Nam Grand Total Source: EUROSTAT

2003 40.0 0.0 397.4 395.8 577.5 3.3 265.4 30.0 155.6 38.0 151.6 67.6 352.8 129.0 102.4 505.9 63.1 434.1 624.1 161.8 4495.4

2004 44.2 0.0 452.5 466.7 716.8 3.4 321.2 29.6 153.8 35.3 178.1 27.4 341.4 82.7 92.8 454.8 58.9 469.7 777.1 252.8 4959.0

2005 55.4 0.0 497.2 625.4 1076.2 3.8 343.9 37.3 151.6 45.8 187.2 45.9 472.7 100.5 81.6 521.7 61.3 551.5 868.5 427.5 6155.0

2006 43.8 0.1 546.8 745.4 1509.6 4.2 320.6 54.3 169.6 34.3 182.6 43.4 592.8 123.5 85.9 554.3 68.9 712.3 1018.1 726.9 7537.3

2007 29.1 0.0 653.3 815.3 1762.0 3.3 307.4 47.2 182.0 66.0 182.2 35.2 686.6 175.1 135.9 483.2 65.8 904.3 1205.3 954.4 8693.6

4.2. USA A significant share of US fish imports comes from other APEC economies, accounting for more than 90% of total import value. The overall value of imports of fishery products into the USA originating from other APEC economies is increasing year over year, and reached over USD 12 000 million in 2008. Not surprisingly China and Canada are competing for the top position among seafood suppliers to the US market, with Canada rather static at USD 2 200 million exports value, while Chinese exports have almost doubled from 2003 to 2008. The main reason for the Chinese increase is the booming re-processing industry in this country, very often importing raw material from the USA (squid, Alaska pollack) and reexporting the final product to this market. China is also strong in importing raw shrimp from other Asian economies, to re-process and sell it to the US market. China is also a large supplier of tilapia and catfish to the US market, these species are locally cultured in China. Thailand is a very close third major supplier, among APEC economies, of fishery products to the US market, reporting exports worth USD 2 000 million in 2008. This country is mainly exporting shrimp and canned tuna to the US market.

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Table 9: US imports from APEC economies - USD million Australia Brunei Darussalam Canada Chile China China, Hong Kong SAR Indonesia Japan Malaysia Mexico New Zealand Chinese Taipei Peru Philippines Korea, Rep. of Russia Singapore Thailand Viet Nam Grand Total Source: NMFS

2003 103.8 0.4 2161.3 806.3 1212.8

2004 109.2 0.5 2156.6 817.9 1323.2

2005 115.9 1.6 2185.9 917.4 1536.5

2006 104.9 4.5 2219.6 1091.0 2043.2

2007 111.2 3.2 2242.0 1168.6 2138.9

2008 101.6 2.5 2293.2 1121.3 2297.3

9.7 457.9 172.3 26.9 424.6 155.3 132.9 47.1 222.5 73.9 257.4 55.4 1497.5 770.5 8588.4

10.8 676.7 157.4 151.1 458.7 174.9 151.9 75.0 226.0 70.9 225.2 47.1 1430.6 604.6 8868.2

14.1 769.1 199.7 148.6 470.9 172.3 143.7 71.4 264.4 72.7 324.3 49.5 1607.2 667.0 9732.2

20.0 824.2 206.9 174.3 486.3 167.0 127.7 68.0 275.9 74.3 381.5 45.9 1903.7 687.4 10906.2

14.7 921.5 231.7 184.9 537.5 157.5 137.5 93.0 286.5 79.5 428.4 39.0 1883.0 732.2 11390.8

13.3 1146.3 271.2 226.4 535.5 191.3 160.1 100.2 306.7 93.6 305.0 44.7 2070.0 804.4 12084.4

4.3. Fish consumption in APEC region versus rest of the world Capture fisheries and aquaculture supplied the world with over 110 million tonnes of fish for human consumption, corresponding to a per capita supply of 16.7 kg per year. Aquaculture contributed 47% of the fish consumed by the human population worldwide in 2006 and it is expected that by now, for the first time ever, it is contributing half of the world food fish supply. Overall, fish provides at least 15% of the animal protein intake for over 2.9 billion people, rising to 18.5 for those from low-income food deficit economies. It is foreseen that the global demand for fish will continue to increase – and given the state of capture fisheries – future growth will have to come from aquaculture.

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Table 10: Per capita supply of fish in APEC economies, in kg Australia Brunei Darussalam Canada Chile China China, Hong Kong SAR Indonesia Japan Korea, Republic of Malaysia Mexico New Zealand Papua New Guinea Peru Philippines Russian Federation Singapore Chinese Taipei Thailand USA Viet Nam

1961 12.8 22.1 15.3 10.0 4.3 30.1 9.5 49.0 13.3 20.4 2.5 20.6 9.2 13.3 21.7 14.0 35.4 27.4 8.6 13.0 13.7

1971 14.4 27.2 15.7 13.4 4.1 50.8 9.7 66.8 23.3 24.1 4.3 17.5 19.7 12.6 32.6 23.0 49.9 32.8 24.5 14.0 15.7

1981 16.1 43.2 22.4 21.2 4.5 40.8 11.8 65.3 45.2 41.4 13.7 14.7 25.4 20.7 33.4 27.9 31.9 34.4 19.6 17.0 10.4

1991 20.1 24.0 23.5 22.9 10.8 59.0 14.8 66.8 43.3 47.8 11.9 19.3 15.3 16.5 37.2 21.8 29.6 40.3 23.8 20.8 12.3

2001 21.5 39.3 24.9 16.2 24.4 64.9 21.3 67.9 54.1 58.7 10.2 26.8 10.9 20.0 29.9 17.7 29.1 30.3 31.3 21.6 19.7

2005 25.1 35.4 24.1 22.4 25.8 62.0 20.5 61.2 54.1 52.1 11.2 27.0 17.1 19.4 32.6 18.6 39.1 31.0 31.7 24.1 26.4

Per capita supply of fishery product is generally increasing in APEC economies. In 2005, the last year for which the per capita supply of fishery products has been calculated, APEC economies had an average supply of 26.4 kg per person. Comparatively, APEC per capita supply is higher than the world average of 16.7 kg. Examples for a strong increase in per capita supply among APEC economies are Australia, Hong Kong, Indonesia where per capita supply doubled in the last 40 years. In the Republic of Korea, liberalisation of import policy led to a jump in fish supply from 13.3 kg in 1961 to over 50 kg in 2005. Chinese statistics report an increase from 4.3 kg to 25.8 kg in 2005. Even though some of the production statistics are under scrutiny, an important increase in the rate of fish supply is clear. Fish supply in the former USSR was affected by the change in political regime and the subsequent dismantling of the distant water fishing fleet. However, supply is likely to have increased in recent years, as production increases and imports also expand.

- 19 -


Graph 14: per capita supply in APEC economies 30.0 25.0 world average kg/capita

20.0

APEC average

15.0 10.0 5.0

03

00

20

20

94

91

97 19

19

19

88

82

79

85

19

19

19

19

73

70

76 19

19

19

64

67 19

19

19

61

0.0

4.4. Fish price developments Fish prices seem to have grown less in recent years than those of meat and other food items. After the well recorded price hike last year, overall food price are falling, while both fish and meat prices continue stable.

Fish prices index compared with food prices Graph 15: Fish prices index compared with and foodmeat and meat prices 250.0 200.0 150.0

Food Price Index Meat Price Index Fish Price Index

100.0 50.0

1/

1 12 994 /1 11 994 /1 10 995 /1 9 9/ 96 19 8/ 97 19 7/ 98 19 6/ 99 20 5/ 00 20 4/ 01 20 3/ 02 20 2/ 03 20 1/ 04 2 12 005 /2 11 005 /2 10 006 /2 0 9/ 07 20 08

0.0

Source: GLOBEFISH

- 20 -


5. IMPORTANCE OF FISHERIES IN APEC 5.1. Importance of fisheries in agricultural sector and GDP in APEC economies Table 11: Share of Fish in Agricultural GDP and in Total GDP (in %) Share in agricultural Share in total GDP GDP Australia 10 0.3 Canada 19 0.2 Chile 64 5.0 Indonesia 14 1.9 China 15 2.0 Japan 22 0.3 Korea, Republic of 9 0.4 Malaysia 17 1.5 Mexico 20 0.8 New Zealand 21 1.3 Papua New Guinea 5 1.4 Peru 25 2.0 Philippines 15 2.2 Russian Federation 9 0.3 Thailand 19 2.1 USA*) 27 0.3 Viet Nam 19 4.0 Average 18 0.6 Note: these figures are based on FAO Fisheries Country Profile, available for different years. Chinese Taipei is not identified; *) Fish GDP includes forestry and hunting.

The importance of fisheries in national GDPs in APEC economies is limited to a mere 0.6% of the total GDP. However, in some economies this share is as high as 5% (Chile) and 4% (Viet Nam). In the developed nations, this share is obviously far lower (0.3% in USA, Russia and Japan) which accounts for the lower APEC share. Agriculture as a whole contributes to about 3% of the GDP in all APEC economies to which fisheries contributes almost one fifth. In some economies, the share of fisheries contribution to the agriculture GDP is significantly higher, such as Chile (64%), Peru (25%) and the USA (37%).

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5.2. Importance of fisheries in creating employment in APEC economies The importance of fisheries in the creation of employment has been little studied, but in many remote areas, fisheries contribute significantly to household incomes. The estimate for total employment created by fisheries in APEC economies is 26.2 million, quite an impressive number. Total world employment created by fisheries are 43.5 million, thus APEC economies represent 60% of total workforce in fisheries. In addition subsistence fisheries and occasional fisheries contribute significantly to protein intake in remote areas. For these fisheries, estimates do not exist. However, it is certain, that several millions of inhabitants of APEC economies practise fishing occasionally. Table 12: Employment in APEC economies in the fisheries sector employment Small Scale (unit) Fisheries industrial Australia 16000 4000 12000 Brunei Darussalam 6000 6000 Canada 80000 70000 10000 Chile 120000 10000 110000 China 12100000 12023386 76614 China, Hong Kong SAR 18000 16000 2000 Indonesia 2400000 2250829 149171 Japan 210000 180000 30000 Korea 130000 90000 40000 Malaysia 110000 100000 10000 Mexico 270000 180000 90000 New Zealand 1500 1500 Papua New Guinea 16000 1500 14500 Peru 125000 60000 65000 Philippines 2000000 1978003 21997 Russia 370000 20000 350000 Singapore 400 200 200 Chinese Taipei 350000 100000 250000 Thailand 3690921 3225584 465337 USA 140000 20000 120000 Viet Nam 4000000 3854712 145288 Total 26153821 24190214 1963607 Note: these figures are indicative only; they are based on SOFIA and FAO Fisheries Country Profile, available for different years. Division between Small Scale Fisheries and Industrial Fisheries are based on the Big Numbers Project, those in italic are estimates by the author.

Small-scale fishermen and fish processors account for more than 90% of the total employment created in APEC economies, or more than 24 million people. These fishermen generally live in very remote areas, where employment opportunities are rare or inexistent.

- 22 -


Graph 14: Importance of fish in protein supply Graph 16: in APEC economies 25.0 20.0

share of fish in animal protein share of fish in total protein

%

15.0 10.0 5.0 0.0

19

61 965 969 973 977 981 985 989 993 997 001 1 1 1 1 1 1 1 1 1 2

5.3. Importance of fisheries in food supply in APEC economies

Fish is an important source of protein supply in APEC economies. It accounts for more than 10% of total protein intake, and for 23% of total animal protein intake in APEC economies. The share has grown for total protein intake, while for animal protein it has stayed more or less stable during the thirty plus years under review.

- 23 -


Table 13: Share of fish in total animal protein intake in APEC economies Indonesia Japan Philippines Malaysia Thailand Korea, Rep of Viet Nam Peru China, Hong Kong SAR China Chile Papua New Guinea New Zealand Russia Canada Mexico USA Australia

1961 58.9 67.5 54.8 45.5 22.7 65.4 45.7 20.1

1971 61.4 55.6 58.8 41.6 42.2 60.5 47.0 15.1

1981 57.6 52.0 55.9 41.4 35.8 60.3 35.9 22.1

1991 52.1 48.8 56.5 37.0 34.0 44.3 33.0 21.2

2001 57.5 46.7 40.9 39.5 38.9 41.0 30.9 24.3

2003 54.1 45.6 40.0 39.4 38.8 37.3 32.8 26.3

33.5 34.7 8.9 7.3 6.4 15.1 6.3 3.6 4.7 4.3

31.6 25.9 10.4 14.2 5.7 15.8 6.1 5.7 4.7 4.4

23.9 16.4 17.0 16.7 4.5 18.7 8.1 11.6 5.3 5.7

27.7 18.1 17.3 11.1 7.1 15.8 10.9 10.5 6.8 6.5

25.6 20.3 12.2 9.6 14.3 13.1 10.5 7.7 6.7 6.9

25.5 18.9 17.4 13.4 13.2 11.8 9.7 8.9 7.2 7.2

The importance of fish in provision of animal protein among APEC economies is highest in Indonesia, followed by Japan, the Philippines, and Malaysia. It can be noted, that back in the early 1960s, fish accounted for about two thirds of animal protein intake in Japan and the Republic of Korea. Economic growth and consequent changes in food habits towards more westernized food consumption led to a decline in the importance of fish in total animal protein during the forty years under review. The importance of fish in animal protein intake is rather low in Canada, Mexico, Australia and the USA, due to high red meat consumption there. The importance of fish in total protein intake goes from a high 25.6% in Japan to 3.9% in Mexico. Overall, it can be noted that the importance of fish is greater in the Asian part of APEC, while the importance in the Americas is relatively lower.

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Table 14: Share of fish in total protein intake in APEC economies Japan Malaysia Philippines China, Hong Kong SAR Thailand Korea, Rep of Indonesia Peru Viet Nam Chile New Zealand China Papua New Guinea Russia Canada USA Australia Mexico

1961 21.7 13.6 20.4 14.0 6.3 6.6 7.9 7.3 8.7 3.0 4.2 2.6 4.5 5.7 4.0 3.1 2.8 0.9

1971 25.2 13.7 26.6 17.2 13.8 7.4 8.5 5.8 8.5 3.5 3.9 2.9 8.7 7.2 4.0 3.2 2.9 1.6

1981 27.1 18.2 23.1 13.8 11.2 13.6 8.5 7.7 5.5 6.6 3.0 2.1 10.1 9.3 5.1 3.5 3.8 4.1

1991 27.3 20.2 24.1 17.7 13.9 15.4 8.3 8.1 6.3 7.4 4.5 4.1 6.5 7.9 6.5 4.3 4.3 3.9

2001 26.3 21.5 17.1 17.7 16.6 17.0 11.4 8.9 7.9 6.0 8.3 7.4 5.1 6.3 5.9 4.2 4.7 3.4

2003 25.6 21.2 17.6 17.0 16.6 15.8 11.1 10.0 9.4 8.9 7.9 7.4 7.3 5.8 5.5 4.7 4.6 3.9

5.4. Role of fish in total merchandise trade in APEC economies Total exports of merchandise products from APEC economies is USD 5 700 billion, or 46% of total world exports. Fish is only a small share of total merchandise exports by APEC economies, accounting for 0.8%.

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Table 15: Share of fish exports in total merchandise exports in APEC economies – 2006 Total merchandise exports (USD 1000 million)

Australia

Total Fish exports (USD 1000 million )

Share of fish in total merchandise exports (in %)

117.0

0.9

0.8

4.5

0

0.0

405.0

3.7

0.9

Chile

58.2

3.6

6.2

China

974.0

9.2

0.9

Hong Kong

611.6

0.1

0.0

Indonesia

102.3

2

2.0

Japan

590.3

1.5

0.3

Korea, South

327.9

1

0.3

Malaysia

158.7

0.6

0.4

Mexico

248.8

0.7

0.3

New Zealand

23.69

0.9

3.8

Papua New Guinea Peru

4.096

0.1

2.4

22.69

1.8

7.9

Philippines

44.2

0.4

0.9

Russia

317.6

2.1

0.7

Singapore

283.6

0.4

0.1

Brunei

Canada

Chinese Taipei

215

1.4

0.7

Thailand

123.5

5.2

4.2

USA

1024

4.2

0.4

Vietnam

39.92

3.4

8.5

5696.6

43.2

0.8

Total

However, in some economies this share is higher, such as in Viet Nam (8.5%), Peru (7.9%), Chile (6.2%) and New Zealand (3.8%). The importance of fish imports in total merchandise imports is also marginal at 0.8%. Japan is the only economy where fish plays a more important role in total imports, with 2.7%.

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Table 16: Share of fish imports in total merchandise imports in APEC economies - 2006

Australia Brunei Canada Chile China Hong Kong Indonesia Japan Korea, South Malaysia Mexico New Zealand Papua New Guinea Peru Philippines Russia Singapore Chinese Taipei Thailand USA Vietnam TOTAL

Total merchandise imports (USD 1000 million) 127.7 1.6 353.2 35.4 777.9 329.8 77.73 524.1 300.4 127.3 253.1 25.23

Fish Imports (USD 1000 million )

1.686 15.38 48.76 171.5 246.1 205.3 119.3 1869 39.16 5649.7

Share of fish in total merchandise imports (in %)

0.9 0 1.8 0.2 4.2 2.1 0.1 14.3 2.8 0.6 0.4 0.1

0.7 0.0 0.5 0.6 0.5 0.6 0.1 2.7 0.9 0.5 0.2 0.4

0 0 0.1 1.4 0.8 0.6 1.6 13.4 0.3 45.7

0.0 0.0 0.2 0.8 0.3 0.3 1.3 0.7 0.8 0.8

5.5. Role of fish in agricultural trade Total agricultural12 exports from APEC economies were about USD 280 000 million in 2006. The most important exporters of agricultural products in the region are the USA and China. While the importance of fish exports in agricultural exports is marginal at 5.5% for the USA, for China the foreign exchange earnings from fisheries products account for about 29% of the value of total agricultural products’ exports.

12

In the following agricultural trade includes fishery products

- 27 -


Table 17: Exports from APEC economies - comparison Agriculture versus Fisheries and Aquaculture (Fish) - 2006 Total agriculture (USD 1000 million) 22.5 0.0 28.4 8.9 31.6

Fish (USD 1000 million)

0.9 0.0 3.7 3.6 9.2

4.2 67.5 13.0 40.7 29.0

3.8 16.3 3.5 3.4 13.5 14.2 11.9

0.1 2.0 1.5 1.0 0.6 0.7 0.9

1.4 12.4 41.7 30.8 4.6 5.2 7.4

Papua New Guinea Peru

0.5 3.6

0.1 1.8

22.7 49.5

Philippines

3.0

0.4

14.0

6.5 4.4 20.3 75.6 7.7 279.4

2.1 0.4 5.2 4.2 3.4 41.9

32.8 9.0 25.8 5.5 44.0 15.0

Australia Brunei Darussalam Canada Chile China

China, Hong Kong SAR Indonesia Japan Korea, Republic of Malaysia Mexico New Zealand

Russian Federation Singapore Thailand USA Viet Nam TOTAL

Share of fish in total agricultural exports (%)

In some other APEC economies the share of fish versus agricultural exports reaches more than 40% (Brunei Darussalam, Chile, Japan, Peru and Viet Nam). Overall the importance of exports of fishery products in total agricultural exports from APEC economies is 15%.

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Table 18: Imports into APEC economies - comparison Agriculture versus Fisheries and Aquaculture (Fish) - 2006

Australia Brunei Darussalam Canada Chile China China, Hong Kong SAR Indonesia Japan Korea, Republic of Malaysia Mexico New Zealand Papua New Guinea Peru Philippines Russian Federation Singapore Thailand USA Viet Nam TOTAL

Total agriculture (USD 1000 million) 6.6 0.3 21.1 2.5 42.0

11.2 6.1 56.6 15.1 7.6 16.4 2.2 0.2 1.7 4.4 20.8 6.3 5.9 81.0 3.5 311.7

Share of fish in total agricultural imports (%)

Fish (USD 1000 million )

0.9 0.0 1.8 0.2 4.2

14.1 8.8 8.7 7.0 10.0

2.1 0.1 14.3 2.8 0.6 0.4 0.1 0.0 0.0 0.1 1.4 0.8 1.6 13.4 0.3 45.1

18.4 2.3 25.2 18.3 7.7 2.7 4.8 7.3 1.8 2.3 7.0 12.0 26.6 16.5 8.1 14.5

Total imports of agricultural goods into APEC economies, including fishery products, is USD 311 700 million. The share of fishery products is 14.5%, while other animal products, such as red meat, play a more important role.

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6. ACCESS TO MARKET REQUIREMENTS FOR APEC ECONOMIES 6.1. Health and sanitary measures The food control systems of the APEC economies are so diverse that attempts to harmonise them would inevitably be very protracted. However, it is evident that the main driving force in changing the regulations applied to fish quality and safety has been the requirements of the major importers (the European Union, USA and Japan). This has had the overall effect of the earlier introduction of food control based on the principles of Hazard Analysis and Critical Control Points (HACCP). The trend now being followed throughout the region is to move towards a risk based approach to food safety as strongly supported by the Codex Alimentarius Commission. (CODEX). As all APEC member economies are CODEX members, the framework for food safety and quality and the ensuing development and adoption of standards of APEC economies are based on the guidelines and recommendations by the relevant committees of CODEX. These safety and quality concepts are also enshrined in the Code of Conduct for Responsible Fisheries, particularly Articles 6 and 11. All APEC economies are members of the WTO, with the only exception of Russia, and are thus bound to the rules of the Agreements on the Application of Sanitary and Phytosanitary Measures (SPS) and on Technical Barriers to Trade (TBT). The interpretation of these rules, in the case of disputes, is based on the codes, guidelines and standards of CODEX, which reinforces the adherence of all economies, especially exporters, to the CODEX guidelines. In international fish trade, it is recognized that the worldwide adoption and widespread implementation of HACCP-based fish safety and quality systems has contributed significantly to improve the safety and quality of fish and fishery products offered on the international markets. It has also resulted in increased transparency and harmonization among trading partners and their safety and quality management systems. The additional safety and consumer protection issues that have become important to the major imports has engendered the revision of these HACCP-based systems towards an integrated, multidisciplinary approach to safety and quality, taking into account the entire fish value chain. As noted above the increased trend to the introduction of risk-based systems in importing economies is driving a general adoption, particularly in the larger member economies. These systems are founded on an analysis of the risks through a risk assessment as the basis for risk mitigation and management. The important third component is the communication of the risks to consumers. This communication function will be of particular importance in such a large and diverse region as APEC. The majority of APEC member economies have some laws for food standards. It goes far beyond the scope of this paper to list all these requirements. For access to country specific food standards please consult the GLOBEFISH page on fish trade requirements on the web – health and sanitary - http://www.globefish.org/dynamisk.php4?id=3206. For the two most important importers among APEC economies – USA and Japan - some recent developments in the field of food safety are listed below. The Regulations of the EU are also described, as it is an important importer of fish and fishery products from APEC economies. The USA has adopted two main seafood safety and quality regulations, “Procedures for the safe and sanitary processing and importing of fish and fishery products, Final Rule, 1997, http://www.access.gpo.gov/nara/cfr/waisidx_02/21cfr123_02.html and the Public health

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security and bioterrorism preparedness and response Act. 21 CFR 1.279 and 1.280, 2007. In addition the Food and Drug Administration (FDA) developed a Food Protection Plan (FPP) that aims to generalize the use of science and risk-based approach of prevention, intervention and response to improve the safety of foods consumed in the USA. It expands the provisions of the Import Safety Action Plan to both domestic and imported food. Regarding imports, the FDA’s FPP envisions to “push the border out” and build in safety at the point of production and manufacture in exporting economies. For this purpose, the FDA plans to enter into agreements with food control agencies in exporting economies to use their certification as assurances for product safety based on mutually accepted parameters. Collaboration to establish such an agreement with China is underway. Likewise, the FDA is developing a Memorandum of Understanding (MoU) with NMFS, which is conducting onsite inspection programmes in exporting plants of many economies. This will permit the FDA to increase the volume of certified products. Japan applies HACCP-based food control regulations, including sanitary and hygienic requirements for fish handling and processing establishments, and for storage and transport. Incorporation of risk analysis principles continues, along with spot checks at the entry border and quality control schemes of the Japanese fish industry. The Japanese industry is responsible for import controls at the source. Bilateral consultations with exporting economies to clarify the Japanese sanitary requirements and to assist in their implementation at the early stages of the food chain are continued. The Japanese Ministry of Health, Welfare and Labour provides information on the imported food monitoring plan and the results of monitoring. 13,14,15,16,17,18

entered into force on In the European Union, food and feed hygiene legislation 1 January 2006. It is an integral part of the EU’s “farm to fork” strategy for food safety. General measures are laid down for the production of all food, and specific rules for various food commodities, including fish and fishery products, and bivalve molluscs. The new food legislation aims to introduce/consolidate the following main provisions: Responsibility for ensuring that food hygiene standards are met lies first and foremost with the food operators involved in the production, manufacture, processing, distribution or retail of the food. Primary producers must protect, as far as possible, primary products against contamination. Establishments involved in food production must be registered and in some cases will need to be approved by the competent authority. The HACCP principles should be applied at every stage in the food chain except primary production. Guides of good practice should be drawn up by the food business sector at national level for operators to follow.

13

Regulation 852/2004 on the hygiene of foodstuffs; Regulation 853/2004 laying down specific hygiene rules for food of animal origin; 15 Regulation 854/2004 laying down specific rules for the organisation of official controls on products of animal origin intended for human consumption; 14

16

Regulation 882/04 laying down health rules governing the production, processing, distribution and importation of products of animal origin; 17 18

Directive 2004/41 repealing 17 existing Directives; Regulation No 183/2005 laying down requirements for feed hygiene.

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Technical requirements on infrastructure and equipment, food handling, water quality, pest control, the maintenance of the cold chain etc must be respected. The new rules can be applied in a flexible way, in particular with regard to traditional methods of production, food establishments in regions subject to geographical constraints and small businesses. Imported food has to meet the same requirements as EU products.

6.2. Labelling requirements If economies in the APEC region wish to export to the European Union (EU) or to the USA, they must comply with certain import requirements; which include traceability and product labelling requirements. In addition to these mandatory requirements, there exist certain voluntary certification schemes. It is important therefore to distinguish between environmental certification, social certification and branding in fisheries. Environmental certification examines the level of sustainability of fisheries exploitation and is generally restricted to environmental issues, such as the maintenance of fish stocks and the ecological impacts of production. Furthermore some environmental labels might be restricted to certain key issues such as reducing marine mammal by-catch, rather than a more comprehensive assessment of the fishery and its impacts. Certification generally implies that producers conform to a certain set of standards and that they are regularly evaluated against these standards by a third party verification body. Social certification examines the social provenance of products, mainly in terms of the social/working conditions of those producing the fish and fish products; and/or whether primary producers receive a fair share of the final sales’ price. Brands/branding allows a producer to promote certain qualities of a product that are often purported to be unique or otherwise sought after. As a result, environmental and social certification schemes can therefore be considered forms of brands/branding. Organic labels are an important branch of these labels. In APEC economies, there exist various environmental labels. The oldest is the Dolphin safe label, which was introduced in the US market in the late eighties. Legislation passed in the USA in 1988 bans imports of tuna from any country with fishing fleets killing more than twice as many dolphins as US tuna catchers. Mexican fishermen exceeded the kill rate in 1989, Mexican tuna was banned for imports into the USA in 1990 and ever since. The WTO’s Dispute Settlement Body agreed to establish a panel to hear Mexico’s complaint against US rules on ‘dolphin-safe’ tuna at its meeting on 20 April 2009. Mexico said US labeling rules, which prevent Mexican companies from placing 'dolphin safe' labels on their products, violated trade rules as the tuna was in line with regulations on protecting dolphins. About onethird of Mexico's fishing fleet was said to be adversely affected by the decision. Mexico first asked for WTO consultation in October 2008. The US said its measures met its obligations under WTO rules. Already back in 1994, a panel of the General Agreement on Tariffs & Trade (GATT) – the predecessor of WTO - ruled illegal the US ban on imports of tuna caught

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by nets which also kill dolphins, because GATT does not allow production methods to be the grounds for trade bans. The Marine Stewardship Council (MSC) is the most important eco-label for capture fisheries products. MSC labels have been obtained by several APEC fisheries (only to list the most important ones: Alaska salmon, Alaska pollack and the Pacific albacore fisheries, in the USA, hoki in New Zealand). Friends of the Sea (FoS) is another eco-label used in APEC economies, where it certified a fishmeal plant in Peru, blue mussels in Australia, handline tuna from the Philippines and artisanal squid production in Viet Nam. The German company Naturland is an important label for organic fishery products. Some aquaculture products from APEC economies have managed to receive Naturland organic labels, such as shrimp and tilapia from companies in Viet Nam and Thailand. The Global Aquaculture Alliance (GAA) is an international, non-profit trade association dedicated to advancing environmentally and socially responsible aquaculture. GAA has developed several best practice standards which are certified under the Aquaculture Certification Council (ACC)'s scheme. ACC has used its Best Aquaculture Practice (BAP) certification process among APEC economies to certify Thai shrimp farms and Chinese tilapia farms. Some APEC economies are on the forefront to certify their own fisheries or aquaculture as sustainable. For instance, Thailand has issued The Good Aquaculture Practice (GAP) and Code of Conduct (CoC) which is necessary as farm standards for products that qualify for export. A domestic Japanese fisheries certification approach, the MEL-Japan scheme - targets smallscale fisheries under an existing co-management arrangement. It aims at allowing an affordable eco-labeling of Japanese seafood products, mainly for export markets. On the consumer side, Wal-Mart, the US giant supermarket chain, declared back in 2006 that its goal is to procure all wild-caught seafood only with Marine Stewardship Council within the next three to five years, and to adopt the ACC certificate for cultured species. At the moment, it seems likely that the date of implementation might be sliding by several months or even years. Only a very few social certification/initiatives involve, or have involved, fisheries. It should be noted that many supermarkets in developed economies include some social aspects in their traceability audits and assurances from suppliers about products being sourced from companies engaged in responsible social practices. In addition the MSC certification scheme includes some social issues, but such issues are not an integral or especially important part of the certification process. FAO Technical Guidelines for Eco-labelling of Products from Marine Capture Fisheries provide criteria for eco-labelling schemes. FAO is presently working on similar guidelines for freshwater capture fisheries. as well as technical guidelines on certification in aquaculture. APEC economies have an important role to play in the finalising of the aquaculture

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guidelines. Some economies are in favour of the present draft of the guidelines, while other APEC economies are rather reluctant in the adoption in its present form. 6.3. IUU reduction measures In the global discussion on how to reduce IUU fishing, FAO plays a key role. The FAO Committee on Fisheries (COFI) has been addressing the issue of illegal, unreported and unregulated (IUU) fishing for the last ten years. During that time, growing experience has allowed COFI and its Member States to enhance, diversify and improve approaches to IUU fishing. The challenges are ongoing, but there is a shared sense of the problem. Two initiatives are important and the work is ongoing:: the draft legally-binding instrument on port State measures to prevent, deter and eliminate IUU fishing and the establishment of a global record of fishing vessels. Back in 2001, COFI approved the International Plan of Action to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing. The US National Marine Fisheries Service (NMFS) published a proposed rule for developing identification and certification procedures to address illegal, unreported, or unregulated (IUU) fishing activities and bycatch of protected living marine resources (PLMRs) pursuant to the High Seas Driftnet Fishing Moratorium Protection Act (Moratorium Protection Act). This notice is to announce five public hearings and to discuss and collect comments on the issues described in the proposed rule. For exporters from APEC economies to the EU, the issue is important. On 29 September 2008, the EU Council of Ministers passed a regulation to control illegal, unregulated and unrecorded fishing, and to prevent IUU products from being sold on the EU market. From 1 January 2010, imports of fishery products from outside the EC (except freshwater and aquaculture products, and some bivalves) should be accompanied by a catch document which certifies that the consignment was caught in compliance with the laws of the flag state of the catching vessel. Flag states will be obliged to make arrangements for verification of catch certificates, and ensure that consignments are traceable to the vessel of origin through transhipment and processing.

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GLOBEFISH MARKET RESEARCH PROGRAMME Vol 78 Seafood Price Indices (44P.)........................................................................................APR 2005 Vol 79 World Market of Tilapia (28P.)...................................................................................APR 2005 Vol 80 Fishery Industry in Russia (70P.) ................................................................................ JUN 2005 Vol 81 Trends in European Groundfish Markets (153P.)...................................................... NOV 2005 Vol 82 Freshwater species on the European Market (119P.)...............................................DEC 2005 Vol 83 Fish Supply and Demand in the Near East Region (67P.).......................................... JAN 2006 Vol 84 The market for Nile Perch (94P.) ................................................................................APR 2006 Vol 85 Supermarkets and the Artisinal Fisheries Sector in Latin America (79P.).................APR 2006 Vol 86 Markets and Marketing of Aquaculture Finfish in Europe (50P.) ........................... AUG 2006 Vol 87 Lobster Markets (92P.) ..............................................................................................OCT 2006 Vol 88 Republic of Korea - Fishery Industry Profile (72P.) .................................................. NOV 2006 Vol 89 World Surimi Market (125P.) ................................................................................... NOV 2006 Vol 90 Market Penetration of Developing Country Seafood Products (57P.)......................APR 2008 Vol 91 Ecolabels and Marine Capture Fisheries: (52P.) .....................................................APR 2008 Vol 92 The seafood market in Italy (59P.) ..............................................................................APR 2008 Vol 93 Global Production and Marketing of Canned Tuna (44P.).........................................APR 2008 Vol 94 World Octopus Markets (65P.) ..................................................................................JUL 2008 Vol 95 The seafood market in Southern EU: Cyprus, Malta and Slovenia (46P.) ...............JUL 2008 Vol 96 The seafood market in Spain (59P.)............................................................................ NOV 2008 Vol 97 Private standards in fisheries and aquaculture:(64P.) ............................................APR 2009 Vol 98 The seafood market in Greece (33P.) .........................................................................MAR 2010 Vol 99 Vietnam seafood from waterland (124P)....................................................................MAR 2010 Vol 100 Importance of APEC in world fisheries and aquaculture (34P.) ..............................MAR 2010

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Trends in European Groundfish Markets

Volume 81


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