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Seafood labelling; choice or necessity
 

Seafood labelling; choice or necessity

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Lecture presented during the course ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS

Lecture presented during the course ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS
Santander (Spain), 22-26 July 2013
Organised by UIPM, International University Menendez Pelayo

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    Seafood labelling; choice or necessity Seafood labelling; choice or necessity Presentation Transcript

    • ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling: choice or necessity ? Philippos Papageorgiou Aquaculture Consultant Email: p_philippos@hotmail.com f.papageorgiou@kefish.gr
    • I. Background Info II. Why Labelling ? III. Understanding Certification Scheme Dimensions IV. Basic Certification & Labelling Requirements & Schemes VI. How Much Should It Cost ? V. Choice or Necessity ? Lecture Structure ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou
    • From Fishing .... ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou Fish hook made from bone Stone Age ~ 40.000 -2.000 BC Minioan fisherman Fresko Art, Santorini. Late Bronxe Age ~ 1600 BC Fishermen collecting fish Mereruka’s Tomb – Egypt 6th Dynasty ~ 2300 BC
    • .... to Trading Seafood labelling; choice or necessity ? Philippos Papageorgiou A woman carrying herring to be sold at a market Paris, ca 1500 A woman selling fish Anonymous India, ca 1800 A Newhaven Fishwife Alexander Ignatious (1861- 1921) ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013
    • Seafood labelling; choice or necessity ? Philippos Papageorgiou Egyptians bringing in fish, and splitting for salting Reconstruction of the Roman fish-salting plant ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 .... through Processing 17th century herring factory in Amsterdam anonymous 17e century Drying fish, Burgeo, NL, Photo by William McFarlane Notman 1908
    • Seafood labelling; choice or necessity ? Philippos Papageorgiou ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 .... to Value-Adding
    • Seafood labelling; choice or necessity ? Philippos Papageorgiou SEAFOOD  Most traded food commodity Perishable nature Short ‘shelf’ life Local markets Processing / preservation Longer ‘shelf’ life Distant markets ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 From Local …….to Global
    • Seafood labelling; choice or necessity ? Philippos Papageorgiou SEAFOOD  Most traded food commodity 1976 2008 Trade value (US$)8 bn 101.8 bn 1985 104% Exports 1998 50% Global Production ~ 40% International Trade Source:FAO.TheStateofWorldFisheriesandAquaculture2010 ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 From Local …….to Global
    • Seafood labelling; choice or necessity ? Philippos Papageorgiou Global Production ~ 40% . International Trade Developing Countries ~ 50% of value Developed Countries Source:FAO.TheStateofWorldFisheriesandAquaculture2010 ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 From Local …….to Global
    • Utilization of Global Seafood Production Seafood labelling; choice or necessity ? Philippos Papageorgiou Source:FAO.TheStateofWorldFisheriesandAquaculture2010 ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013
    • - 20.000.000 40.000.000 60.000.000 80.000.000 100.000.000 120.000.000 140.000.000 160.000.000 180.000.000 1950 1960 1970 1980 1990 2000 2002 2004 2006 2008 2010 Capture Fisheries Aquaculture (brackish) Aquaculture (freshwater) Aquaculture (marine) Source:FAOFishStatJ ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Global Seafood Production Seafood labelling; choice or necessity ? Philippos Papageorgiou
    • Production Market Consumption The Seafood Industry ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou
    • Seafood Industry Market Dynamics Health-conscious Environment-conscious Labour condition-conscious Free trade-consicous Food-Safety conscious Env. & Socially responsible Food –safety assuring Other Env. & Socially responsible Food –safety assuring ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou
    • Market CompetitionThe Competition Within national markets of seafood products, as imported VS nationally produced goods Within the seafood market, as farmed VS captured (fresh/chilled (whole) VS processed, value-added etc) Within the global food market, as ‘seafood’ supply VS ‘other food protein’ supply VS alternative food offerings ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou
    • Seafood labelling; choice or necessity ? Philippos Papageorgiou • A means of communication to reinforce the purchasing decision of consumers and customers. • A market based instrument aiming to direct consumer’s purchasing behavior to product attributes other than price. ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013  addresses social & psychological expectations  points out any actual & perceived attributes  promotes product as part of a lifestyle  makes consumer feel part of that lifestyle Addresses concerns of potential consumers. ie: we might have the product which solves your problem/addresses your concern. Why Labelling ? One of the easiest ways that consumers/custpmers can affect change (ie environmental –social responsibility) through their purchasing/bargaining power.
    • Seafood labelling; choice or necessity ? Philippos Papageorgiou Any tag, brand, mark, pictorial or other descriptive manner, written, printed, stenciled, marked, embossed or impressed on, or attached to, a container of food Codex Alimentarius, 2007 ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Why Labelling ? All information placed on the package or on the label accompanying a product.  Legally compulsory information (weight, nutritional value, exp. date etc) (Fish: species name, catch area, production method)  Specific labels (seals)  Environmental  Quality  Social  Other
    • Quality / Safety labels ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou
    • Provenance - Sustainable Fisheries labels ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou
    • Sustainable Fisheries labels ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou
    • Dolphin safe Labels ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou
    • Organic Aquaculture Labels Globally ~ 80 EU ~ 18 ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou
    • …… labels ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou
    • Seafood Standards & Certification Schemes Seafood labelling; choice or necessity ? Philippos Papageorgiou ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Source:FAOFisheriesandAquacultureTechnicalPaper.No.553.Rome,FAO.2011
    • Seafood labelling; choice or necessity ? Philippos Papageorgiou Seafood Standards & Certification Schemes Source:FAOFisheriesandAquacultureTechnicalPaper.No.553.Rome,FAO.2011 ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013
    • Labelling ‘’Noise’’ ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou
    • Deceiving Appearances ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou
    • Seafood labelling; choice or necessity ? Philippos Papageorgiou Mechanisms to ensure the sustainability of fish stocks have been introduced by governments at the national, regional and international levels.  the United Nations Convention on the Law of the Sea (UNCLOS) (1982);  the FAO Code of Conduct for Responsible Fisheries (1995);  the United Nations Fish Stocks Agreement (1995);  various regional fisheries management organizations (RFMOs). Public Policies and Regulatory Framework ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013
    • Public Policies and Regulatory Framework Seafood labelling; choice or necessity ? Philippos Papageorgiou ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013
    • Seafood labelling; choice or necessity ? Philippos Papageorgiou Article 2 Objectives 1. The CFP shall ensure exploitation of living aquatic resources that provides sustainable economic, environmental and social conditions. For this purpose, the Community shall apply the precautionary approach in taking measures designed to protect and conserve living aquatic resources, to provide for their sustainable exploitation and to minimise the impact of fishing activities on marine eco-systems. It shall aim at a progressive implementation of an eco-system-based approach to fisheries management. It shall aim to contribute to efficient fishing activities within an economically viable and competitive fisheries and aquaculture industry, providing a fair standard of living for those who depend on fishing activities and taking into account the interests of consumers. Public Policies and Regulatory Framework ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013
    • Who is Responsible for Fisheries Sustainability ? Seafood labelling; choice or necessity ? Philippos Papageorgiou Global online survey 25 420 consumers 50 countries Governments 43% Fishing Industry 29% Fish manufacturers and processors 18% Retailers of fish products 10% Source:NielsenGlobalOnlineSurvey,March2009.PresentationbyJ.Banks,Nielsen,atOECD/FAORoundTableon EcolabellingandCertificationintheFisheriesSector,TheHague,April2009. ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013
    • The Stakeholders Public Sector Private Sector Civil Society Fisheries Authorities Environment Authorities Trade & Consumer Authorities International Organisations Science & Academia Fishing Industry Aquaculture Industry Processing Industry Trade Industry Certification Industry Science & Academia Consumers Certification Industry Science & Academia NGO’s ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou Adaptedfrom:OECD(2011)Fisheeries&AquacultureCertification,OECDPublishing
    • The Stakes Public Sector Private Sector Civil Society TAX PROFITS BALANCE FOREIGN TRADE ATTRACT / MAINTAIN INVESTMENTS FINANCIAL RETURNS (R.O.I.) FOOD SAFETY ENVIRONM. PROTECTION EMPLOYMENT CUSTOMER SATISFACTION EXPLOITATION OF MARKET OPPORTUNITIES PUBLIC AWARENESS SUSTAINABILITY ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou
    • Private Standard Development Drivers Seafood labelling; choice or necessity ? Philippos Papageorgiou Development of private labelling schemes  are an indication that retailers and commercial brand owners are assuming some part of this responsibility  offer trust when there is a loss of faith in regulatory systems or the administration of those systems, either at home or in exporting countries.  are considered to be more flexible and responsive to changing market conditions, whereas the public regulatory process is seen as less proactive and adaptive to market and industry dynamics ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Perceived failure of public governance
    • Seafood labelling; choice or necessity ? Philippos Papageorgiou Development of private labelling schemes ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Biotic level increase (education, economic, social/ env. awareness) Globalisation of markets Consumer: consumption trend ethical values financial status Industry / NGO’s: marketing psychology sociology behavioural economics Private Standard Development Drivers
    • SELF-based STANDARD-based 1st Party certification 2rd Party certification 3rd Party certification Accreditation Government Private Mandatory Voluntary Production CLAIM Processing Distribution Consumption Process Product Single Multiple Env. sustainability Food Quality Social Resp.Food-Safety Legality Other 1 Other 2 B2B B2CB2I (CSR) Seafood labelling; choice or necessity ? Philippos Papageorgiou Certification Scheme Dimensions ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Adaptedfrom:OECD(2011)Fisheeries&AquacultureCertification,OECDPublishing
    • Certification Scheme Dimensions SELF-based STANDARD-based 1st Party certification 2rd Party certification 3rd Party certification Accreditation Government Private Mandatory Voluntary Production CLAIM Processing Distribution Consumption Process Product Single Multiple Env. sustainability Food Quality Social Resp.Food-Safety Legality Other 1 Other 2 B2B B2CB2I (CSR) Initiator Nature Level Subject Attribute AddreseeADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou Adaptedfrom:OECD(2011)Fisheeries&AquacultureCertification,OECDPublishing
    • The Upsise & the Downside of Labelling Seafood labelling; choice or necessity ? Philippos Papageorgiou Certification Schemes & Labels Confuses & often misleads consumers Provide stimulus for supply-chain modernization investments Provide incentives for better safety and quality control practices Clarify the roles of the state in food safety and production practices Increases bargaining power of retailers Introduces barriers to international seafood trade Barriers to alleviate hunger and to improve livelihoods ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013
    • Seafood labelling; choice or necessity ? Philippos Papageorgiou i. In accordance to commonly agreed international guidelines ii. In a balanced way towards small-scale producers (fishermen, fish-farmers, processors) iii. In the aim of including rather than excluding, thus allowing for fair competition iv. In the aim of harmonizing different schemes for cost reduction ad higher market access (BUT not at the expense of the consumer’s health, the environment, and local communities) v. Ensure independence from the supply chain and other forms of conflict of interest Schemes / Standards must be developed: How ? By increasing awareness along the supply chain ( ie: each link must promote to next and demand from previous) ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Basic Standard Requirements
    • International Protocols for Certification Seafood labelling; choice or necessity ? Philippos Papageorgiou 1. The FAO Guidelines for Aquaculture Certification 2. The FAO Code of Conduct for Responsible Fisheries 3. The FAO Guidelines for Ecolabelling of fish and fishery products 4. The Global Food Safety Initiative Four Main internationally-accepted codes or protocols: ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013
    • FAO Guidelines for Aquaculture Certification Seafood labelling; choice or necessity ? Philippos Papageorgiou 2001: established by FAO / COFI Scope : provide guidance on how credible aquaculture certification schemes should be:  developed,  organised  implemented Cover : any or more of:  health and welfare  food safety and quality  environmental integrity  social responsibility Aims at :  Standard setting bodies  Acreditation bodies  Certification bodies ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Source:http://www.seafish.org
    • FAO Code of Conduct for Responsible Fisheries Seafood labelling; choice or necessity ? Philippos Papageorgiou 1995: developed by FAO Scope : provide a necessary framework for national & international efforts to ensure sustainable exploitation of aquatic living resources in harmony with the environment Principles : recognises and takes into account aspects such as:  nutritional,  economic,  social, environmental  cultural  biological characteristics of resources and their environment  interests of consumers and other users Aims at : National & International legislative and regulatory bodies ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Source:http://www.seafish.org
    • FAO Guidelines for Ecolabelling Seafood labelling; choice or necessity ? Philippos Papageorgiou 1996: Marine Stewardship Council Initiative 1998: FAO technical consultation on feasibilty of such guidlines 2005: Adopted by FAO/COFI 2009: Revised Scope : outline principles, terms and definitions, minimum substantive requirements and the procedural and institutional aspects for ecolabelling of fishery products. Principles : schemes should:  Be consistent with the FAO CCRF  Use objective, third party fishery assessments based on scientific evidence  Be fully transparent in all aspects - not just assessment processes but also in relation to organisational structures and financial arrangements ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Source:http://www.seafish.org
    • Global Food Safety Initiative Seafood labelling; choice or necessity ? Philippos Papageorgiou 2000: Launched Scope : A worldwide initiative, to deliver continuous improvement in food safety management by benchmarking best practice through its Guidance Document. . 650+: Members 70: Countries Objectives :  Reduce food safety risks  Manage cost by reducing duplication and improving efficiency  Develop food safety competency and capacity  Provide an international platform for stakeholder collaboration and knowledge exchange ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Source:http://www.seafish.org
    • Choices ?? ....  Decisions !! Seafood labelling; choice or necessity ? Philippos Papageorgiou Public Business-to-BusinessBusiness-to-Consumer Private Product Process ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013
    • B2B vs B2C Seafood labelling; choice or necessity ? Philippos Papageorgiou Business-to-Consumer Typically : Food safety Food quality Communicates assurance to buyers that the supplier complies with the food safety and quality standard (a quality mark may be marketed directly to consumers). Business-to-Business Typically : Sustainability Env. Protection Organic production Marketed to consumers at point- of-sale, often through a label attached to the product. ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013
    • Marine Stewardship Council Seafood labelling; choice or necessity ? Philippos Papageorgiou ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 1996: Joint initiative by WWF - Unilever Issues addressed: Environmental sustainability Principles  Sustainable fish stocks: Fishing activity must be at a level which is sustainable for the fish population.  Minimising environmental impact: Fishing operations must be managed to maintain the structure, function, and diversity of the ecosystem on which the fishery depends.  Effective management: Fishery must meet all local, national and international laws and have a management system in place to respond to changing circumstances to maintain sustainability Production Method: Capture Fisheries Complies with:  FAO Code for Responsible Fisheries  FAO Ecolabelling Guidelines Source:http://www.seafish.org
    • Alaska Responsible Fisheries Seafood labelling; choice or necessity ? Philippos Papageorgiou ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Developed by the Alaska Seafood Marketing Institute Issues addressed: Environmental sustainability Requirements:  Fisheries management system  Science and stock assessment activities  Use of a precautionary approach  Management measures  Implementation, monitoring and control  Serious impacts of the fishery on the ecosystem Production Method: Capture Fisheries Complies with:  FAO Code for Responsible Fisheries  FAO Ecolabelling Guidelines Source:http://www.seafish.org
    • Iceland Responsible Fisheries Seafood labelling; choice or necessity ? Philippos Papageorgiou ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Issues addressed: Environmental sustainability Requirements:  Adoption and implementation of a structured fisheries management system to limit TAC at levels permitted by the relevant authorities.  Fish stock shall not be overfished as verified through scientific research & assessment by international experts.  Implementation of an effective legal & administrative framework with mechanisms for monitoring, surveillance, control & enforcement.  Effects of the fishery on the ecosystem be limited Production Method: Capture Fisheries Complies with:  FAO Code for Responsible Fisheries  FAO Ecolabelling Guidelines 2008: Launched Source:http://www.seafish.org
    • Seafood labelling; choice or necessity ? Philippos Papageorgiou ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Issues addressed: Environmental sustainability Social Welfare Food Safety Requirements:  Use of selective fishing gear / Recovery of lost fishing gears / Management of vessel discharges /Recovery of marine litter / Accurate catch records  All crew to have completed training in safety, sea survival, fire fighting and first aid  Skippers and crew must have catch handling and food hygiene experience.  Vessel standards, capture methods, handling and storage procedures must maximise and maintain catch quality. Production Method: Capture Fisheries Complies with:  FAO Code for Responsible Fisheries 2006: Launched Seafish Responsible Fishing Scheme Source:http://www.seafish.org
    • Seafood labelling; choice or necessity ? Philippos Papageorgiou ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Issues addressed: Environmental sustainability Requirements:  Ensuring good practice during handling and storage of the catch,  Provenance (the fish/shellfish sold under the label is fully traceable back to an Irish vessel)  And environmental responsibility (selective fishing gear) Production Method: Capture Fisheries 2012: Launched by BIM (Board Iascaigh Mhara) Responsible Irish Fish Source:http://www.seafish.org
    • Aquaculture Stewardship Council Seafood labelling; choice or necessity ? Philippos Papageorgiou ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 2010: Developed in partnership by WWF – IDH (Sustainable Trade Initiative) Issues addressed: Environmental sustainability Social Welfare Animal Welfare Food Safety Production Method: Aquaculture Complies with:  FAO Aquaculture Certification Guidelines Includes  CoC assurance  Traceability Standards: 12 species (fish, crustaceans, shellfish) Source:http://www.seafish.org
    • Friend of the Sea Seafood labelling; choice or necessity ? Philippos Papageorgiou ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 2006: Developed by the Dolphin Safe Project (Italy) Issues addressed: Environmental sustainability Social Welfare Animal Welfare Production Method: Capture Fisheries Aquaculture Complies with:  FAO Ecolabelling guidelines Principles  No critical impact on habitat / negligible escapees/no use of antifoulants –GMOs-growth hormones etc  Maximum 8% discards/ No bycatch of endangered species  Compliance with international norms on Child Labour  Salaries at least to legal minimum wage / access to medical care / safety measures in accordance with legal requirements Source:http://www.seafish.org
    • Best Aquaculture Practices Seafood labelling; choice or necessity ? Philippos Papageorgiou ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Developed by GAA (Global Aquaculture Alliance) Issues addressed: Environmental sustainability Social Welfare Animal Welfare Food Safety Production Method: Aquaculture Complies with:  FAO Aquaculture Certification Guidelines  Global Food Safety Initiative Includes  CoC assurance  Traceability Standards: Shrimp farms and hatcheries / salmon, tilapia, channel catfish and Pangasius farms /seafood processing plants and feed mills Source:http://www.seafish.org
    • Soil Association Seafood labelling; choice or necessity ? Philippos Papageorgiou ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 1946 : Founded in UK Issues addressed: Environmental sustainability Social Welfare Animal Welfare Food Safety Production Method: Aquaculture Principles  Produce high-quality food products free from artificial ingredients  Use minimum inputs  Create minimal environmental impact  Ensure the health and welfare of the stock  Minimise use of veterinary products  Eliminate reliance on chemical pesticides  Develop local employment and services Source:http://www.seafish.org
    • IFFO RS Certification Seafood labelling; choice or necessity ? Philippos Papageorgiou ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 2001: Established Issues addressed: Environmental sustainability Food Safety Production Method: Capture Fisheries (Whole fish& by-products) Aquaculture (by-products) Complies with:  FAO Code for Responsible Fisheries  FAO Ecolabelling Guidelines Principles  Sourcing from responsibly managed fisheries  Good manufacturing practice for safety, purity, and traceability 100+ factories 9 countries Members: 2/3 fish-meal & Fish-oil producers 80% of global supply Source:http://www.seafish.org
    • BRC Global Standard for Food Safety Seafood labelling; choice or necessity ? Philippos Papageorgiou ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 1998: Introduced the BRC Food Technical Standard Issues addressed: Food Safety Production Method: Capture Fisheries Aquaculture Complies with:  Global Food Safety Initiatives Principles  Senior management commitment and continual improvement  Food safety plan (based on HACCP)  Food Safety and Quality Management System (on principles of ISO 9000)  Site standards  Product control  Process control  Personnel (including training, protective clothing and hygiene) 15,000 certified sites more than 115 countries Source:http://www.seafish.org
    • GlobalG.A.P Seafood labelling; choice or necessity ? Philippos Papageorgiou ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 1997: Introduced as Euro-Retailer Produce Working Group (EUREP) Production Method: Aquaculture Complies with:  Global Food Safety Initiatives Principles  Environmental management of waste, water and effluent / Maintenance of impact assessments and biodiversity plan / Control of predators, etc  Occupational health and safety/ Health and safety of workers  Biosecurity and food defense procedures / Record keeping and hazard analysis / Controlled use of medicines and treatments etc  Fish health, welfare, management and husbandry / Hatchery management / Feed management / Harvesting and slaughter practices, etc Issues addressed: Environmental sustainability Social Welfare Animal Welfare Food Safety 93,000 certified producers more than 100 countries Source:http://www.seafish.org
    • Revenues = no of users Χ usage rate  Attract new users  Enter new markets / market segments  Atrract competitor’s users  Increase usage rate from existing users ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou Why Certify & Label ?
    • PROBLEM OPPORTUNITY t-1 to t+1 Loose customers - Loose market share Expand Sales - Enter new markets ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou Why Certify & Label ?
    • How Much Should It Cost? CASE STUDY: Company A  Sales (kg) = 2.000.000  Sales (€) = 10.000.000 (5 €/kg)  Labelling costs =  10.000 Compliance cost  3.000 Audit cost  2.000 Annual fee = 0,008 €/kg + 0,50 €/kg additional prod costs (sust feed, lower densities, admin cost) + 0,10 €/kg tagging cost = 0.61 €/kg Total Cost = 1,220,000 € BREAK EVEN 1) sell same quantities at ~ 12% Price Premium 2) sell at same price ~ 12% more quantities (+244 tons) 3) sell at a combination of 1 & 2 ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou
    • Product A Do not certify / label +600 tons @ 12% Price premium) + 4.560.000 € sales increase 60% No change in sales +400 tons @ 25% Price premium + 5.000.000 € sales increase 30% x 4.560.000 € = 1.368.000 € CASE STUDY: Company A  Sales (kg) = 2.000.000  Sales (€) = 10.000.000 (5 €/kg) ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou How Much Should It Cost?
    • Product B +600 tons @ 12% Price premium) + 4.560.000 € sales increase +400 tons @ 25% Price premium + 5.000.000 € sales increase 30% x .6.010.000 € = 1.803.000 € CASE STUDY: Company B  Sales (kg) = 2.000.000  Sales (€) = 10.000.000 (5 €/kg) - 200 tons (10%) @ 5% price discount - 1.450.000 € sales decrease ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou How Much Should It Cost?
    • ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou How Much Should It Cost?
    • ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou • Global Population Increase • Household Purchasing Power Increase • North America, Europe (1970-2008) • China, India, Brazil (late 1990’s +) • Strong increase in animal-protein consumption • Consumers' shift towards more healthy products • Increased scientific evidence & marketing of ‘seafood’ health benefits • Consumption of aquatic food in many developed and developing countries is still low compared to other food items Aquatic Food Consumption Increase Global Seafood Demand Trends
    • Global Seafood Demand Gap ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou 0 20 40 60 80 100 120 140 160 180 2000 2005 2010 2015 2020 2025 2030 Aquaculture Production- growing population & seafood consumption Aquaculture Production- growing population & static seafood consumption Static capture fisheries production Declining capture fisheries production Min. supply gap Max. supply gap Source:FAOTheStateofWorldFisheriesandAquaculture2010
    •  Which Label ? Necessary Choice Labelling: Choice or Necessity? ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013 Seafood labelling; choice or necessity ? Philippos Papageorgiou  Who for ? Identify & categorize customers (existing & potential ones)  Why ? Project benfits / losses (market share – value)  How much ?
    • How Local is ‘’Local” Seafood labelling; choice or necessity ? Philippos Papageorgiou Fish Farm Country C Retailer Country A Filleting/Processing Country B Packaging Country C Juveniles Country D Eggs Country E Feed production Country F Feed raw material Country G ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013
    • Suggested Reading ADVANCED LESSONS IN FISHERIES & AQUACULTURE ECONOMICS Santander (Spain), 22-26 July 2013