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Greening China's Fish and Fish Products Market Supply

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Greening China's Fish and Fish Products Market Supply GREENING China’s Fish and Fish ProduCTS MARKET SUPPLY CHAINS The International Institute for Sustainable Development (IISD) GREENING CHINA’s Fish contributes to sustainable development by advancing policy AND FISH PRODUCTS MARKET recommendations on international trade and investment, economic policy, climate change and energy, and management of natural SUPPLY CHAINS and social capital, as well as the enabling role of communication technologies in these areas. We report on international negotiations and disseminate knowledge gained through CONTRIBUTORS collaborative projects, resulting in more rigorous research, capacity Arthur Hanson building in developing countries, better networks spanning the North and the South, and better global connections among He Cui researchers, practitioners, citizens and policy-makers. Linlin Zou IISD’s vision is better living for all—sustainably; its mission is Shelley Clarke to champion innovation, enabling societies to live sustainably. IISD is registered as a charitable organization in Canada and Geoffrey Muldoon has 501(c)(3) status in the United States. IISD receives core Jason Potts operating support from the Government of Canada, provided Huihui Zhang through the Canadian International Development Agency (CIDA), the International Development Research Centre (IDRC) and Environment Canada, and from the Province of Manitoba. The July 2011 Institute receives project funding from numerous governments inside and outside Canada, United Nations agencies, foundations and the private sector. CONTENTS Introduction ....................................................... 2 Sustainability Analysis of China Tilapia Products Supply Chain.............................. 6 China Aquatic Products Processing and Marketing Alliance Cod Market Supply Chain Analysis ........................ 14 (CAPPMA) is a non-profit organization. It consists of seafood Live Reef Food Fish Trade (LRFFT) Case Study ........ 20 producers, processors, traders, distributors, suppliers, and institutions for fisheries research and education, as well as Conclusions ...................................................... 29 relevant social entities that provide various services for seafood processing and marketing. Its objectives are dedicated to Recommendations ............................................. 32 improve the self-discipline mechanism among members in List of figures and tables their business operation, to standardize and maintain order in the seafood market, to protect the members’ legal rights, Figure 1: Three Market Supply Chains .................. 4 to coordinate relationships among domestic enterprises and Table 1: Tilapia Production and Trends ................ 7 international parties, to upgrade technology and management in Figure 2: The Tilapia Supply Chain in China .......... 8 China’s seafood industry，to enhance the awareness of credibility needs within the industry and to improve seafood quality Table 2: Cod Production and Trends ...................15 security, to promote the prosperity and stability of markets, and Figure 3: Chinese Importation and to ensure sustainable fisheries development. Further information Processing of Cod .........................................16 is available at www.cappma.org Table 3: Leopard Coral Trout: Production and Trends ...................................................21 Figure 4: Supply Chain Component Linkages for Aquacultured and Wild-Caught Live Reef Food Fish from Source Countries to Hong Kong and Mainland China .............................................24 Page 14: TurboSquid©Toucan Page 17: Logo courtesy MSC. ISBN: 978-1-894784-46-7 This publication can be viewed online at www.iisd.org/publications/pub.aspx?id=1474 1 ACKNOWLEDGEMENTS This report summarizes the main findings and recommendations of the Chinese Global Fish and Fish Products Supply Chain Sustainability Analysis Project. IISD would like to thank the Chinese Ministry of Commerce (MOFCOM), the U.K. Department for International Development (DFID) and the Swiss State Secretariat for Economic Affairs (SECO) for their financial and in-kind support, without which this project would not have been possible. More specifically, we would like to acknowledge the personal commitment and input of Weijing Yin from MOFCOM, Su Zhang and Lin Cui from DFID and Hans-Peter Egler from SECO. Finally, but definitely not least, we would like to thank the team of expert contributors and advisors to the project for their pointed, sometimes challenging, but always compelling, input, questions and overall guidance. The contents of this report represent the views of the contributors. GREENING China’s Fish and Fish ProduCTS MARKET SUPPLY CHAINS GREENING CHINA’s Fish and Fish ProduCTS MARKET SUPPLY CHAINS1 SUMMARY REPORT INTRODUCTION Over the past two decades, China’s involvement with are not well understood, either within world fisheries and trade in aquatic products has China or outside of the country2. Some increased dramatically, making it the world’s largest of the raw materials supplying China’s producer, consumer and exporter of seafood. China massive processing industry are from will play an increasingly important role in securing aquaculture in China or elsewhere, the long term sustainability of the sector. Its role in some are catches from Chinese vessels market supply chains is especially important. There operating within China’s territorial seas is worldwide interest in greening of these supply and Exclusive Economic Zone (EEZ) or in chains, taking into account sustainability impacts other parts of the world, and some by on species, stocks and ecosystems within China fleets of other nations which then send and elsewhere in the supply chains. International the products to China for processing and certification processes such as those of the Marine then export to markets such as Japan, Stewardship Council (MSC) and various seafood the EU and the U.S. or many other consumptions guides are examples of how this countries. international interest is shifting production, Seafood often moves great distances processing, trade and consumption patterns globally. from point of capture or production 2 China is linked into the complex oceanic before reaching final consumers. During exploitation and management systems in ways that that journey its origin, identity and 1 This is a summary of the full IISD and CAPPMA report Greening China’s Fish and Fish Products Market Supply Chains (2011, 149 pps.) available at http://www.iisd.org/publications/pub.aspx?id=1474 2 The work of Shelley Clarke in studies undertaken via TRAFFIC provides the most coherent picture of Chinese fish trade linkages, along with statistical data bases published by FAO and the Chinese Fisheries Statistics Yearbook. certainly the circumstances of production China has a large stake in attempting to make and processing may be lost or altered. fisheries and aquaculture sustainable, and has Without good traceability it becomes taken a number of steps to address the activities difficult to assess whether the fish or of its own fisheries and processors, but there other aquatic product was obtained and will be pressures for more action in relation to processed in a way that was sustainable. market supply chains. Already there is a strong The criteria of sustainability also need to effort on the part of Chinese producers to ensure be reasonably defined, but generally will health and food safety in aquatic products bound take into consideration social, economic for international trade, for example through and environmental factors. implementation of Hazard and Critical Control Trade in aquatic products is undergoing Points (HACCP) principles. In the years ahead, considerable scrutiny since it is a key sustainability of market supply chains will become avenue for enhancing global efforts on an important part of the mix—both internationally sustainable development. A number and domestically. of issues have been raised in the past The International Institute for Sustainable decade. These include problems such Development (IISD) and the Chinese Ministry of as the import into China of Patagonian Commerce (MOFCOM) have cooperated on analysis toothfish for processing and export to of sustainability of China’s market supply chains 3 markets in North America and Europe. in several major sectors . In 2009, work was 3 Much of the overfishing around the world initiated on market supply chains related to China’s for sharks and rays is for markets in Asia, fisheries and aquaculture, in cooperation with the with China being a prominent consumer. China Aquatic Products Processing and Marketing Chinese exports of aquacultured Association (CAPPMA). Funding was provided by products are subject to considerable British Department for International Development international scrutiny due to reports of (DFID), with supplemental funding from the Swiss contaminants including heavy metals, State Secretariat for Economic Affairs (SECO). antibiotics and other medicines and In addition to providing an overview of some bacteria. The potential exists for non- key general concerns related to environmentally tariff trade barriers being imposed in the sustainable market supply chains and some of form of excessive health and sanitation the important species in Chinese freshwater and requirements. saltwater fisheries, the project examined three fish 3 The “Sustainable Development: China and Global Markets” Project, initiated by IISD and MOFCOM in 2006, with financial support from the Swiss State Secretariat for Economic
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