Mr Kwang-bum Park: The Role of Fisheries Co-operatives for Food Security & National Development
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Mr Kwang-bum Park: The Role of Fisheries Co-operatives for Food Security & National Development



Mr Kwang-bum Park, Secretary-General, ICFO, at the International Co-operative Alliance Global Conference in Cape Town, November 2013.

Mr Kwang-bum Park, Secretary-General, ICFO, at the International Co-operative Alliance Global Conference in Cape Town, November 2013.



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Mr Kwang-bum Park: The Role of Fisheries Co-operatives for Food Security & National Development Mr Kwang-bum Park: The Role of Fisheries Co-operatives for Food Security & National Development Presentation Transcript

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  • Ⅰ. The Oceans and the Fishing Industry 1. Value of the Oceans 2. Importance of the fishing industry 3. Seafood is Not Just a Side Dish 4. The Need for a fishing industry
  • 1 Origin of Life The brain evolved in the sea 500 million year ago and is still dependent on the Marine food web. - Michael A. Crawford (Imperial College London) ▲ Professor Michael A. Crawford gives the keynote speech at Yeosu Expo Symposium (photo: Newsis) – The oceans cover 71% of the earth surface – More than 300, 000 species of marine life, which is over 7 times higher than the number of terrestrial species Prevention of climate change and global warming, the Oceans; – Prevent drastic temperature changes by absorbing 80% of solar energy – Maintain oxygen concentrations at a stable levels by absorbing vast quantities of CO2(The oceans hold 60 times more CO2 than the atmosphere) 4
  • 1 Opportunity for Human Development 2.7 billion people, about half of the global population, live along coastlines – Two-thirds of the 50 largest cities in the world are located near the seas. (Four ancient civilizations originated near rivers / Later they led maritime civilizations) “The oceans are vast accessible fields for man’ Enterprise, and sure guarantee of our race's survival even if our descendants are going to be ten times as numerous as we are today. - Arnold Toynbee 5
  • 2 Industrial Value “The history of the West would have been different without fish.” – The Netherlands and Portugal laid their economic foundations by producing herring and cod respectively. – Brian Fegan (Professor of Anthropology, Univ. of California) ▲Herring patterns are easily found on old buildings in the Netherlands, indicating the importance of herring. (Photo : KBS ‘Super Fish’) ▲ Professor Brian Fegan explaining the importance of marine life and the fishing industry for the economic development of the West. (Photo : KBS ‘Super Fish’) 6
  • 3 Maintain and Preserve Civilization Provides DHA essential for the evolution of the human brain and trace elements essential for life ▲Influenced by religion, people ate fish as a main dish rather than meat on special holidays in the West. It is reported that the main dish in “ The Last Supper” by Leonardo da Vinci is fish. (Reference: KBS ‘Super Fish’) 7
  • 3 • Heart disease, perinatal disease, mental disease The greater the fish consumption, the lower the incidence rate of major depression The greater the omega-3 intake during pregnancy, the greater the mental ability of children. Relationship between Fish Consumption and the Incidence of Depression Relationship between the Mental Ability of Children under 8 and the Intake of Omega-3 during Pregnancy Source : Hibbeln J., "Fish consumption and major depression", The Lancet, 1998. 8
  • 3 Medical Importance Omega-3 extracted from fishery products contributes to reducing infections, improving the quality of life, extending life expectancy and decreasing the mortality rate. - Philip Calder, University of Southampton, UK The food you eat becomes your brain. If you want your children’s brain to be composed of pure and healthy natural oils, eat fishery products! -Joseph R. Hibbeln, Director of National Institutes of Health U.S. department of health and human services Fishery products provide minerals, including iodine, selenium, iron, copper, zinc, etc. ⇒ Important for mental development, eyesight protection and brain activity 9
  • 4 Multi Functions Functions of the Fishing Industry Provide the basis for living and employment opportunity to fishers Original Function Stable production of fishery products Sustainable management of fishery resources Provision of safe fishery products Fishing Industry Fishing Villages Defend ocean territories Maintain traditional culture and identify underwater cultural heritage Preserve nature and manage waters near the coast Use national land in a balanced manner Promote tourism to fishing villages 10
  • 4 Crisis of Fishery Products Supply in the World – Production : 156 million tons(2011) → 181 million tons(2022) – Consumption per Capita 19kg(average from 2010 to 2012) → 20.6kg (2022) → 8 billion (2022) > Supply 152 million tons 200 2.1%/year(’99-’09) Aquaculture Capture Total 150 180 100 96 84 50 World Fish Consumption 140 Million tons Million M/T World Aquaculture & Capture Production 2.8%/year(’99-’09) 123 120 100 80 60 40 20 2010 2005 2000 1995 1990 1985 1980 1975 1970 1965 1960 1955 1950 - Source : FAO FISHSTAT Plus statistic database, 2012 0 1961 1970 1980 1990 2000 2009 Source : Food and Agriculture Organization of the United Nations, 2012 11
  • Ⅱ. Growth of Fishing Industry and the Role of Fisheries Cooperatives in Korea 1. Growth of Fisheries in Korea 2. About Fisheries Cooperatives in Korea 3. Role of the Korea National Federation of Fisheries Cooperatives 4. Current Status of Fisheries in Korea
  • 1 A Driving Force Behind the Korean Economy ODA was the only source for national reconstruction after the Koran War • ODA was the only source of capital in 1950s. < ODA from OECD countries > (Unit : Million USD) 1956 ODA • 1957 1958 1959 1960 327 383 321 222 249 Korea became the first and only donor country in 2009 among the ODA recipient countries. 13
  • 1 Basis of Korea’s industrialization from the 1950s to the 1970s. A Driving Force Behind the Korean Economy • In the 1950s when Korea had no industrial infrastructure, fisheries were the major industry. The export of fishery products was the single source of obtaining foreign currency. • Fishery products accounted for 46% and 93.3% of total export volume in 1946 and 1949 respectively. At that time the fishing industry was the backbone of the country. Share of fishing industry in Total Export Volume Fishery Products Export Amount (Unit: 1 million dollars) 2,362 (Unit : %) Electronic products accounted for 28.5% in total export volume in 2012 25.8 1,910 22% 9% 90 3.1% 10 0.4% 1988 2012 4.25 1958 1962 1970 1988 2012 1958 1962 1970 14
  • 1 Putting top priority on fisheries in the government policies • January 18, 1952 ‘Presidential declaration on Korea’s sovereign rights to nearby seas’ to establish marine boundaries • President Rhee started the overseas fisheries • President Park Chung-hee reinvigorated fisheries • President Park supported a building overseas fisheries training ship at Pukyong National University and naming of the ship. Future industrialization of fisheries • Current president Ms. Park Geun-hye added fisheries to Major Government Projects. President Park Chung-hee observing tuna caught by a Korean fishing vessel ▲ 15
  • 1 Establishment of an educational institute dedicated to fisheries The need for developing fishery experts increased with an increase in the sardine catch – 66,356 tons in 1911  1.039470 million tons in 1931  2.115785 tons in 1937 (Number 2 in the world) Pukyung National University, dedicated to fishery education was established. – The University shares knowledge and experiences with international students from the world. 16
  • 2 Brief History Ⅰ Role and Mission of Fisheries Cooperatives Structure of Fisheries Cooperatives Business Activities of Fisheries Cooperatives
  • 2 1908. 7.10 1962. 4. 1 1988.12.31 2002. 2. 1 2009. 9. 10 2012. 4. 1 The first fisheries cooperative “Geoje Hansan fisheries cooperative” founded Korea National Federation of Fisheries Cooperatives established according to the Fisheries Cooperative Act The direct election system of president of fisheries cooperatives introduced Noryangjin Fish Market acquired Fishermen Education Welfare Culture Foundation founded The 50th anniversary of its establishment 18
  • 2 Raising Socioeconomic, Cultural Status of Fishers Extension Marketing Banking Fishery production Seafood price stabilization Providing fisheries funds support Building seafood Deposit, loan, trust, Education for fisher distribution infrastructure foreign exchange, credit Safe fishing operation Finding new markets card Support & fisheries Seafood processing & Mutual credit wireless communication manufacturing Insurance Research & study Supply fishing equipment International cooperation & tax free oil 19
  • 2 92 Member Fisheries Cooperatives, 158,000 Member Fishers Structure Member Fishers (154,000) Member Fishers (4,000) Member Fishers (200) Fisher’s Societies (1,993) Local Fisheries Coops (70) Fishing Type Fisheries Coops (20) Processing Fisheries Coops (2) Korea National Federation of Fisheries Cooperatives Staff - KNFC : 3,823 persons(Inculding affiliated companies) - Member fisheries Cooperatives : 6,795 persons
  • 2 1. Business Scale of KNFC (Unit : Million USD) 2000 Total 2005 2011 2012 7,189 11,861 21,008 22,840 245 158 154 181 1,242 2,642 3,832 4,442 Insurance 404 235 857 1,178 Marketing & Supply 973 1,099 1,435 1,476 4,325 7,727 14,731 15,564 Extension Mutual Credit Banking 2. Business Scale of Member Fisheries Cooperatives (Unit : Million USD) 2002 (A) 2012 (B) (B-A) Business Scale 7,968 17,449 9,480 Net Profits △1.9 53.8 55.7 21
  • 3 Comprehensive Support for the fishing industry Consignment and Joint Sales Financial Support for Tax-free Fuel for Fishing Support for Safe Fishing Military Supply Mutual Finance Insurance for Fishing Ship and Crew Fishery Broadcasting Policy Support Foundation for Education, Culture and Welfare of Fishermen 22
  • 3 Consignment Sales of Fishery Products Eliminated the need for commission agents, who lived off the fishing industry, by strengthening consignment sales of cooperatives Member fisheries Cooperatives strengthened consignment sales by receiving financial support from the Korea National Federation of Fisheries Cooperatives ▲ Start of Consignment Sales by the Korea National Federation of Fisheries Cooperatives in 1962 at the Incheon Consignment Sales Store, 50 years ago 23
  • 3 Consignment Sales of Fishery Products < Current State of Consignment and Joint Sales Stores > Classification Consignment Sales Joint Sales No. of Markets 6 (1962) → 203 (2012) 9 Operated by 77 member cooperatives Central (7) Member (2) Applicable Law Fisheries Act Act on Agricultural Wholesale Market Business Scale 3,156 million dollars 271 million dollars < Consignment Sales Record (2011) > Classification Transaction Volume (1,000 tons) Transaction Amount (100 million dollars) Fisheries Cooperatives 988 4 (1962) → 3,457 (2011) Cooperative Fish Market 222 472 24
  • 3 Supported destitute fishermen by supplying the necessary  expenses for fishing at low interest rates. Financial Financial Support  Support - Started in 1963 for - Interest Rate and Period: annual rate of 3%, 1 year • Destitute Reimbursed interest difference: The government reimbursed the difference between the commercial Fishermen rate and the rate provided to destitute fishermen - Financial Support to Destitute Fishermen in 2011 (Unit: Million USD) Total Support Support for Costal Fisheries Support for Overseas Fisheries 1,905 1,785 120 25
  • 3 Fuel can be purchased at lower prices and provided to coastal fishing ships and remote fishing villages in a timely and stable Tax-free manner. Fuel for Supplying tax-free fuel was possible by proposing the idea to the Fishing government for 3 years (1962 to 1964) – Provide fuel at a price 15% lower than commercial prices at 22 refueling stations in 22 major ports nationwide Current State of the Fuel Supply (2011) – Type of Fuel Supplied : Diesel, B-A, B-B, B-C, MF30, kerosene, LPG, petrol Amount Supplied (1,000 D/M) Provided Value to Fishermen(B) (Million USD) 486 890 26
  • 3 Support for Safe Fishing Protect the life and property of fishermen and guarantee safe fishing activities regarding international maritime disputes, reductions in fishery stocks, accidents at sea and marine meteorology Projects and Outcomes - Started the safe fishing support project in 1965 with the fishery communication station - Provided training to fishermen on safe fishing guidance - Provided training for ship safety inspectors - Operated the Fishery Information and Communication Station - Install fishing vessel location transmitting devices 27
  • 3 Fisheries Wireless Communication System
  • 3 Military Supply Fishermen were not appropriately rewarded for selling their fishery products. KNFC persuaded the military to make fishery products produced by fishermen available at appropriate prices to provide soldiers with quality meals. ▲ Signing of the Military Supply of Fishery Products Agreement (January 8, 1969) Signed the Military Supply of Fishery Products Agreement in January 8, 1969  Traditional practices of military supply was brought up to date and valuable and fresh fishery products were provided, cutting out middle men, commission agents and private military supply firms. ⇒ Positive response from soldiers ⇒ Contributed significantly to higher income for fishermen 29
  • 3 Mutual Finance • • • • Economically vulnerable fishermen organized a cooperative bank to deposit excess cash and obtain loans as needed. It provided a foundation for stable fishery activities by assisting fishermen who formerly had to depend on high-interest private loans. The path to self-reliance went through a 10 million dollar fund raising campaign in the late 1960s. Before the 1970s: most fishermen were destitute and had to depend on high-interest private loans. Spread the need for credit associations and internal funds Held a fishermen rally to raise a 10 million dollar internal fund to establish a fishing village credit association Achieved 10 million dollars in 1972, a year ahead of the 1973 target ⇒ The fund helped fishermen escape chronic debt and lowered dependency on external financing and expanded financial support for fishermen. 30
  • 3 Insurance Policy Insurance Project: Disaster Insurance for Ships and Crew, Disaster Insurance for Farmed Fishery Products • Protects crew and contributes to the stability of fishery management by compensating for disasters • Stabilizes the management of fishery farming and support the speedy resumption of fishing activities after disasters Insurance: life, injury and damage, fire insurance Free regular ship inspections to prevent accidents • 1,744 ships in 2011 → 1,939 ships in 2012 Expands the number of species of marine products covered by disaster insurance for farmed fishery products • 11 species in 2012→ 15 species in 2013 31
  • 3 Broadcasting the State of the Fisheries Government KNFC Research Institute Produces informative fisheries videos, including information on fishing grounds, weather, prices and fishery policies for fishermen Installs large-scale 50-inch monitors and receiver devices at 40 major consignment sales stores Post regular information on the state of fisheries on the homepage of the KNFC Broadcasting. 32
  • 3 Policy Support Fisheries Policy Workshop • Hold workshops where government officials discuss fisheries policies with leaders of cooperatives and representatives of fishermen. Fisheries Research • Conduct research policy and provide suggestions on fisheries policies, economy, management and finance. Activities to Respond to FTA • With respect to FTA discussions with other countries, including China, KNFC gathers various opinions from fishermen and makes proposals to the government and the National Assembly to minimize the damage. 33
  • 3    Purposes : To implement projects to protect fishermen‘s rights and interest and improve welfare plans for them Date of Establishment : 9. 10, 2009 Major Projects - Training program for leaders from fisheries Medical care for fishermen Dormitory for the children of fishermen Welfare for foreign crew Donating IT equipment in fishing villages 34
  • Ⅲ. Sustainable Fisheries 1. Educated Fishermen 2. Sound Fishing Community 3. Stable Fish Production 4. Safe Fish Products 5. Globalization of Fisheries
  • 4 Industrial Value – Production, distribution, processing, dining, etc. World-class production and export of fisheries products – Advanced marine nation using national waters, which are 4.4 times larger than the national land territory, the five oceans. – 13th in terms of production, 8th in terns of farming and 3rd in terms of deep sea fishing. 36
  • C Sustainable Fisheries 37
  • 1 of the fisherman population and lack of new fishermen. – 20.2% of fishermen in Korean is over 70 and the average age is 60.4. Ways of attracting new crewmen – Support the income of fishing crews and modernize fishing vessels. Establishing an advanced training institute for fisheries. Elevating the status of fishing villages and fishermen by nurturing talented people in fishing village 38
  • 2 – Fishermen live in near coasts or on islands Revitalizing fishing communities – Cooperatives, voluntary democratic organization, can provide the most suitable welfare to fishermen. 39
  • 3 – Continuous decrease in production due to pollution and over exploitation of resources – Regulation of fishing efforts, restructuring and decreasing number of fishing vessels – Laying the foundations for fishery resources by establishing sea farms, releasing juvenile fish, improving habitats, and purifying fishing grounds 40
  • 3 Tools to manage fisheries Quality Control Quantity Control Type Tools to manage Tools to manage Technical catch amount fishing effort management tools • Total Allowable Catch (TAC) • Individual Quotas (IQ) Tools • Individual Transferrable Quotas (ITQ) • Licenses • Individual fishing effort quotas • Limiting fishing equipment and fishing vessels • Total Allowable Effort (TAE) • Limiting size and gender • Limiting fishing periods (ban on fishing during certain periods) • Limiting fishing areas (ban on fishing in certain areas) 41
  • 4 Modern Demands for Safety With the spread of FTAs, the international safety standards for fishery products are strengthened. – Quality control is required to improve the competitiveness of fishery exports. Korea’s Eco Seafood Quality Certification for Fishery Products – A certification that marine products do not contain harmful chemicals and antibiotics to preserve the environment. Britain’s Marine Stewardship Council (MSC) – A sustainable fishery certification program adopted to solve the problem of declining global fish stocks from excessive catches and illegal fishing. France Label Rouge – The top food certification recognized by the French Ministry of Agriculture and Fisheries 42
  • 5 Fisheries ODA Improve Efficiency Win-win strategy between developing and developed nations The role of developing countries increases in the international fisheries trade • More than half of the international trade in fisheries comes from developing nations • 77% of fishery products produced by developing countries are consumed in advanced countries (FAO, 2010) Effect of earning foreign currency and creating jobs through the export of fisheries products in developing countries • The fisheries industry in developing countries is a comparatively advantageous than other industries. 43
  • Ⅳ. Knowledge Sharing and Cooperation Among Fisheries Cooperatives in the world 1. KSP (Knowledge Sharing Program) 2. World Fisheries Cooperative Day 3. ICA Fisheries Committee and the Future of Fisheries
  • 1 Education for Workers in the fishing industry Sharing the experience and knowledge of a successful Fisheries Cooperatives in Korea Maintaining a sustainable fishing industry by educating the fishermen of the world 45
  • 1 Equipment Support Contributing to the development of the Federation of Fisheries Cooperatives and fishing industry by providing IT equipment and fisheries equipment to overseas cooperatives Strengthening the networks among ICA Fisheries Committee members by sharing information 46
  • 2 World Fisheries Cooperatives Day (observed annually, on June 16) Protecting the rights and increasing the incomes of fishermen throughout the world by revitalizing Fisheries Cooperatives. – Focus international attention on the role and contributions of the fishing industry and cooperatives. – Protect the rights and increase the incomes of fishermen throughout the world by revitalizing the activities of fisheries cooperatives. Bringing fishermen together from around the world on World Fisheries Cooperative Day. 47
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  • 3 • “THE FUTURE OF HUMANITY DEPENDS ON THE SUSTAINABILITY OF MARINE FOODS” - Michael A. Crawford Nations that secure fishery products will be the strong nations of the future. – Fishermen around the world are at the forefront of resolving food shortage issues. – Fishermen should be proud and confident that they are part of the most important industry for the future of humanity. Need to cooperate continuously for a sustainable fishing industry by sharing information and experience among the members of the ICA Fisheries Committee. 49