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AQUACULTURE Public Disclosure Authorized Changing the FACE of the WATERS 41694 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized AGRICULTURE AND RURAL DEVELOPMENT AND RURAL AGRICULTURE Changing the OF SUSTAINABLE AQUACULTURE THE PROMISE AND CHALLENGE the Waters Face of Changing THE FACE OF THE WATERS AGRICULTURE AND RURAL DEVELOPMENT Changing THE FACE OF THE WATERS The Promise and Challenge of Sustainable Aquaculture THE WORLD BANK Washington, DC © 2007 The International Bank for Reconstruction and Development /The World Bank 1818 H Street NW Washington, DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org E-mail: [email protected] All rights reserved. 1 2 3 4 :: 10 09 08 07 This volume is a product of the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development/The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: [email protected]. ISBN-10: 0-8213-7015-4 ISBN-13: 978-0-8213-7015-5 eISBN-10: 0-8213-7016-2 eISBN-13: 978-0-8213-7016-2 DOI: 10.1596/978-0-8213-7015-5 Cover photo: Michael Phillips and Sena S. DeSilva, NACA. Library of Congress Cataloging-in-Publication data has been applied for. CONTENTS CONTENTS Boxes, Figures, and Tables vii Preface and Acknowledgments xi Acronyms, Abbreviations, Currencies, and Units of Measure xv Introduction and Overview1 Focus of the Study1 A Surging Global Industry2 Challenges and Approaches4 1. Trends in Global Aquaculture 13 Emergence of a Global Industry 13 Production, Markets, and Trade 15 Future Supply and Demand Projections 19 The Role of External Assistance and the International Financial Institutions 20 2. Aquaculture, Environment, and Health 23 The Impact of Aquaculture on the Environment 23 The Impact of Aquaculture on Human Health 29 Environmental Services from Aquaculture 35 3. Innovation and Technologies 40 Feeds, Seeds, and Disease 40 Technology Transfer and Capacity Building 49 v 4. Building Pro-Poor Aquaculture 56 Impacts of Aquaculture on Poverty and Livelihoods 56 Lessons from Asia 58 Creating and Distributing Wealth through Aquaculture 62 5. Catalyzing Aquaculture in Less-Developed Countries 68 The Status of Aquaculture in Africa 69 Diagnosis for Sub-Saharan Africa 70 Unlocking the Potential 72 Catalyzing Sustainable Aquaculture in Latin America 78 6. Conclusions and Recommendations 82 Conclusions 82 Recommendations 91 Annexes 93 Annex 1. Definitions of Aquaculture Production Systems 94 Annex 2. Selected Codes, Instruments, and Tools for Responsible Aquaculture 97 Annex 3. Portfolio Analysis 103 Annex 4. Wealth Creation and Poverty Alleviation—The Asian Experiences 110 Annex 5. Supplementary Statistical Information 135 Annex 6. The Diversity of Aquaculture Production Systems and Business Models 146 Annex 7. Guidelines for the Preparation and Implementation of Aquaculture Projects 156 Notes 163 References 165 Index 180 BOXES, FIGURES, AND TABLES vi CONTENTS BOXES, FIGURES, AND TABLES Boxes 2.1 Fish and Human Health 32 2.2 Win-Win Situations for Aquaculture and the Environment 33 2.3 Aquaculture and Climate Change—Marine Carbon Sequestration 38 3.1 Public Sector and Fish Breeding and Seed Supply Programs 46 3.2 Benefits of One-Stop Aqua Shops 52 3.3 Guiding Principles from Reviews of External Assistance to Asian Aquaculture 53 4.1 Relative Incomes from Aquaculture and Agriculture 57 4.2 Bringing the Blue Revolution to the Poor 61 4.3 Enabling Factors for Selected Pro-Poor Aquaculture Technologies and Systems 62 4.4 Trade Disputes over Aquaculture Products 67 5.1 The Abuja Declaration on Sustainable Fisheries and Aquaculture in Africa 73 A4.1 China–World Bank Freshwater Fisheries Project, 1986–92 113 A4.2 Constraints of Community-Based Fish Farming—Project Scorecard in Puri District of Orissa and Purulia District of West Bengal 115 vii A4.3 An Integrated Livestock-Fish-Farming System in Indonesia’s Rice-Based Agriculture 116 A4.4 Enabling Diffusion and Accelerating Adoption of Technology by the Poor 121 A4.5 Group-Based Aquaculture Models in Bangladesh 122 A4.6 Capital Movement and Environmental Controls 128 A5.1 Examples of the Growing Number of Species Artificially Propagated for Stock Enhancement 136 Figures 1.1 Aquaculture Production by Developed and Developing Countries 17 1.2 Global Population and Fish Food Supply from Fish Capture and Culture 18 2.1 Antibiotics and Salmon Production in Norway 34 A4.1 Growth in Fisheries Employment in China, 1974–2000 112 A4.2 Changing Fortunes—Shrimp Aquaculture Production by Selected Producers 127 A5.1 Real Production Costs and Sale Prices of Farmed Atlantic Salmon 141 A5.2 Aquaculture Production of Aquatic Animals by Main Species and Trophic Groups 142 A5.3 Aquaculture Production by Continent, 2004 143 A5.4 Growing Dominance of the Innovators: Global Atlantic Salmon Production 143 A5.5 Global Aquaculture Production 145 A6.1 Schematic Diagram of an Integrated Commercial Farm in Israel 147 A6.2 Generic Representation of a Range of Low- and High-Trophic- Level Aquaculture Production Systems 149 Tables 1.1 Aquaculture Production and Growth in 2004 16 1.2 Top 10 Producer Countries by Quantity and by Unit Value in 2004 16 1.3 World Bank Projects with Aquaculture Components 21 1.4 Recent IFC Aquaculture Loans by Region 22 2.1 Environmental Costs and Benefits of Aquaculture 24 viii BOXES, FIGURES,AND TABLES 2.2 Table-Certified Cultured Fish Products in EU Supermarkets 36 3.1 Changes in Prices and Production for Genetically Improved Species 41 3.2 Responses to Selection for Growth Rate 44 4.1 Characterization of Aquaculture Development Pathways in Asia 59 A3.1 Portfolio of World Bank Projects with an Aquaculture Component 104 A3.2 IFC Aquaculture Projects 1992–2006 107 A4.1 Annual Income by Stakeholder Group within the Bangladesh Shrimp Industry 119 A5.1 Aquaculture Production by Trophic Level of Cultured Species, 2003 135 A5.2 Aquaculture Export Earnings in Some Developing Countries of Asia, 2003 136 A5.3 Top 40 Aquaculture Producer Nations, 2004 137 A5.4 Projections of Food Fish Demand 139 A5.5 Total Per Capita Food Fish Supply by Continent and Economic Grouping in 2001 140 A5.6 Fish Consumption before and after Adoption of Improved Aquaculture in Bangladesh 144 A5.7 Production by Major African Aquaculture Producers 144 A6.1 Ecological Footprints of Aquaculture Systems 148 BOXES, FIGURES,AND TABLES ix PREFACE AND ACKNOWLEDGMENTS The World Bank Group has already recognized the important role of aqua- culture, investing approximately $1 billion in aquaculture projects or projects with an aquaculture component. As with any rapidly evolving industry, there are challenges across a spectrum of policy, social, and technical issues. The challenge of sustainable aquaculture is to contribute to national objectives for economic development and food security while simultaneously addressing poverty reduction and environmental protection. This study provides strategic orientations and recommendations for Bank client countries and suggests approaches for the Bank’s role in a rapidly chang- ing industry with high economic potential. It identifies priorities and options for policy adjustments, catalytic investments, and entry points for the Bank and other investors to foster environmentally friendly, wealth-creating, and sustainable aquaculture. The audience to which this study is addressed includes client countries’ pol- icy and decision makers in aquaculture, fisheries, and natural resource manage- ment, as well as individuals addressing poverty issues, agriculture development, and environmental protection. The target audience also includes food industry and food trade professionals, the scientific community, development partners, and persons engaged in human capacity development for aquaculture. Aquaculture can be defined as the farming and husbandry of aquatic organ- isms, such as fish, crustaceans, mollusks, and seaweed, and the production of freshwater and marine pearls and a variety of other aquatic species, such as crocodiles, frogs, sponges, and sea cucumbers. (The word “fish,” unless other- xi wise stated, is used throughout the report in the generic sense to cover all aquatic animal production, including fish, crustaceans, and mollusks.) The Food and Agriculture Organization of the United Nations (FAO) defines
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