Organic Aquaculture -Opportunities for Emerging Markets

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1 Organic Aquaculture -Opportunities for Emerging Markets The environmental challenge for exporting to Europe OECD Workshop on Opportunities and Challenges of Fisheries Globalisation Markus Stern SIPPO Swiss Import Promotion Programme Modern Seafood Marketing 1

2 Trends in Europe Consumer market trends Ecology Social Aspects Modern Seafood Marketing 2

3 Neglecting market trends means out of the market poor quality Service antibiotics Center chemicals environmental factors Modern Seafood Marketing negative press price wars poor social responsibility 3

4 Regulations and market requirements Import duties, levies (anti-dumping), taxes, VAT, import licensing, quota, phytosanitary certificates, bans Standardisation - technical specifications - performance of goods and services CE Marking Quality management ISO 9000 series, ISO (food industry) Health and safety (no risk for the safety and health of persons) HACCP, Good Agricultural Practice (GAP), Good Manufacturing Practice (GMP) EurepGap, IFS, BRC, organic certificate Environment, waste management Green dot (some countries), ISO 14001, Ecolabeling, FSC, MSC Social accountability SA 8000, Fair trade (IFAT, IFOAM, Max Havelaar) Modern Seafood Marketing 4

5 Market Perspectives for Organic Food International Market 2006: > $ 30 billion USA: > $ 15 billion Europe: > $ 15 billion Asia: : > $ 900 million Oceania: : > $ 400 million Others: :? International Market 2007: est.. $ 40 billion Growth per year: : 10 15% Growth potential of the global organic markets Global change in consumer behaviour Modern Seafood Marketing 5

6 Consumer Behaviour Reasons, why some consumers prefer organic products: 75% health-consciousness 60% environmental reasons 25% better taste How many consumers buy organic products? 20% of the consumers buy regularly organic products 50% of the consumers buy organic products once in a while 30% of the consumers never buy organic products Modern Seafood Marketing 6

7 The Organic Approach System of inspection Pilot farm / hatchery farm origin/source of material feed factory environment harvesting documentation book-keeping storage processing storage export fishmeal/-oil plant material pigments etc. c h a i n o f c u s t o d y Modern Seafood Marketing 7

8 Organic aquaculture projects Vietnam Black Tiger shrimp farmers (1 farm) certified Ecuador & Peru White shrimp Trout Scallops 4-5 Farms 1 Farm Certified Certified in process Bangladesh Black Tiger shrimp farmers in process certified 2007 India Black Tiger shrimp & FW Prawns farmers just started Indonesia Mozambique Not yet defined planned Modern Seafood Marketing 8

9 Interfaces areas of co-operation operation Activities of partners partner organisations Activities of SIPPO Production Processing Export marketing Match-making Modern Seafood Marketing 9

10 Organic black tiger shrimp in Vietnam Protection and re-forestation of mangroves Aquafarms in Ca Mau No use of pesticides, herbicides and antibiotics Training/ Vietnam Modern Seafood Marketing 10

11 RIA2 / MOFI SIPPO Shrimp Hatchery Improvement Project Domestication of Penaeus monodon in indoor system and production of specific-pathogen pathogen-free shrimps Nguyen Van Hao, Nguyen Duy Hoa, Nguyen Quoc Hung, Vu Thanh, Greg Coman,, Olivier Muller, Uwe Waller, Patrick Sorgeloos, Roeland Wouters, Modern Seafood Marketing 11

12 Organic Aquaculture in Myanmar, Thailand and Malaysia Duration Location Estimated total costs Financing from the Common Fund Counterpart contributions in cash and in kind Co-financing (FAO/SIPPO) Project Executing Agency (PEA) Supervising Body : 36 months : Union of Myanmar, Thailand and Malaysia : US$ 1,401,875 : US$ 835,217 : US$ 432,783 : US$ 133,875 : INFOFISH : Sub-Committee on Fish Trade of the FAO Committee of Fisheries, as the designated International Commodity Body (ICB) for Fishery Products Modern Seafood Marketing 12

13 Organic aquacultural production Advantages Market opener / competitive product / price premium Steady buyer, co-operation operation Natural production sites Positive image Market trends in Europe Opportunities opportunities for smaller producers in rural areas favours natural production methods can often be applied in developing countries on current production, but needs certification Modern Seafood Marketing 13

14 Coop 2005 Purchases of Organic Shrimps from State Owned Enterprise 184 and Camimex Summary of Purchases $4'000'000 $3'800'000 $3'500'000 $3'000'000 $2'793'829 $2'500'000 $2'000'000 $2'055'992 $1'500'000 $1'000'000 $500'000 $271'500 $460'570 $ Eurogroup Far East Ltd Gerhard Zurlutter Modern Seafood Marketing 14

15 If you take the market seriously Market trends Marketing Mix PPPP Ecological production Marketing Customer CCCC Social responsibility Customer needs & wants Market Success Sustainability Marketing Osec Business Network Switzerland 2006 Modern Seafood Marketing 15

16 Europe Facts & Figures Population 496 Mio Member states: 27 Population: 496 Mio. Area total: Official languages: 23 GDP Total: $13.3 trillion - Per capita: $28,100 Modern Seafood Marketing 16

17 Modern Seafood Marketing 17

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