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Economics of Fisheries and Aquaculture in the Coral Triangle Economics of Fisheries and Aquaculture in the Coral Triangle

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Economics of Fisheries and Aquaculture in the Coral Triangle Economics of Fisheries and Aquaculture in the Coral Triangle Economics of Fisheries and Aquaculture in the Coral Triangle Economics of Fisheries and Aquaculture in the Coral Triangle Marine resources in the Coral Triangle provide food, income, and jobs to its more than 350 million residents. However, the countries bordering this species-rich area—Indonesia, Malaysia, the Philippines, Papua New Guinea, Solomon Islands, and Timor-Leste—share closer links in their ecology than in their economy. Case studies explore the potential benefits of integrating these countries’ small-scale fisheries into global markets by developing opportunities for market differentiation, ensuring equitable distribution of benefits across the supply chain, and lastly, recognizing fisheries values beyond those measurable by national income accounts. About the Asian Development Bank ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to approximately two-thirds of the world’s poor: 1.6 billion people who live on less than $2 a day, with 733 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main EconomicsEconomics ofof FisheriesFisheries instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. andand AquacultureAquaculture inin thethe CoralCoral TriangleTriangle Asian Development Bank 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines www.adb.org Printed on recycled paper Printed in the Philippines ECONOMICS OF FISHERIES AND AQUACULTURE IN THE CORAL TRIANGLE © 2014 Asian Development Bank All rights reserved. Published in 2014. ©Printed 2014 inAsian the Philippines.Development Bank All rights reserved. Published in 2014. PrintedISBN 978-92-9254-528-4 in the Philippines. (Print), 978-92-9254-529-1 (PDF) Publication Stock No. RPT146478-3 ISBNCataloging-in-Publication 978-92-9254-520-8 Data(Print), 978-92-9254-521-5 (PDF) Publication Stock No. RPT146479-3 Cataloging-in-PublicationAsian Development Bank. Data Regional state of the Coral Triangle—Coral Triangle marine resources: Their status, economies, and management. AsianMandaluyong Development City, Philippines:Bank. Asian Development Bank, 2014. Economics of fisheries and aquaculture in the Coral Triangle. Mandaluyong1. Marine resources. City, Philippines: 2. Marine Asian environment. Development Bank, 3. Coral2014. Triangle. 4. Indonesia. 5. Malaysia. 6. Papua New Guinea. 7. Philippines. 8. Solomon Islands. 1.9. MarineTimor-Leste. fisheries. I. 2.Asian Aquaculture. Development 3. FoodBank. security. 4. Coral Triangle. 5. Philippines. 6. Solomon Islands. 7. Timor-Leste. I. Asian Development Bank. The views expressed in this publication are those of the authors and do not necessarily reflect the Theviews views and expressedpolicies of in the this Asian publication Development are those Bank of the(ADB) authors or its andBoard do of not Governors necessarily or reflect the governments the viewsthey represent. and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no ADBresponsibility does not forguarantee any consequence the accuracy of oftheir the use. data included in this publication and accepts no responsibility for any consequence of their use. By making any designation of or reference to a particular territory or geographic area, or by using Bythe making term “country” any designation in this document,of or reference ADB to does a particular not intend territory to make or geographic any judgments area, as or to by the using legal theor other term status“country” of any in this territory document, or area. ADB does not intend to make any judgments as to the legal or other status of any territory or area. ADB encourages printing or copying information exclusively for personal and noncommercial use ADBwith encouragesproper acknowledgment printing or copying of ADB. information Users are exclusivelyrestricted fromfor personal reselling, and redistributing, noncommercial or creatinguse withderivative proper works acknowledgment for commercial of ADB.purposes Users without are restricted the express, from reselling, written consent redistributing, of ADB. or creating derivative works for commercial purposes without the express, written consent of ADB. Note: Note:In this publication, “$” refers to US dollars, unless otherwise stated. In this publication, “$” refers to US dollars, unless otherwise stated. Photo credit PhotoFront cover:credit ADB photo library FrontBack cover:cover (Oscarfrom top Dennis to bottom Espenilla): ADB photo library and Eric Sales Back cover (from top to bottom): Michael Barrow 6 ADB Avenue,Avenue, MandaluyongMandaluyong City City 1550 Metro Manila,Manila, PhilippinesPhilippines Tel +63 22 632632 44444444 Fax +63+63 22 636636 24442444 www.adb.org For orders,orders, pleaseplease contact:contact: Public InformationInformation CenterCenter Fax +63+63 22 636636 25842584 [email protected] Printed on recycled paper Contents Tables, Figures, and Boxes v Foreword viii Acknowledgments xi Executive Summary xii Abbreviations xix I. Introduction 1 A. Background and Purpose of the Study 1 B. Features of the Study 1 II. Fish Production in the Coral Triangle: Status, Trends, and Challenges 5 A. Socioeconomic Profile of the Coral Triangle Countries 5 B. Fisheries Production in the Coral Triangle 9 C. Fisheries Values 23 D. Status of Fishery Resources 28 E. Projections of Fish Supply in CT6 Countries 30 F. Summary and Conclusions 37 References 38 III. Aquaculture Development Trends and Implications in the Coral Triangle 43 A. Introduction 43 B. Aquaculture in the Plans of Action 44 C. Aquaculture Development in the Coral Triangle 47 D. Interactions between Capture Fisheries and Aquaculture 50 E. Hidden Costs of Fish Kills: A Case Study from the Philippines 54 F. Conclusion and Recommendations 58 References 60 IV. Connectivities in the Coral Triangle 64 A. Ecological Connectivities 64 B. Economic Connectivities: Trade in Fisheries Products 67 C. Governance and Institutional Linkages 73 D. Conclusions 82 References 83 V. Subsistence Fisheries in the Coral Triangle 86 A. Overview 86 B. Fisheries and Reef Interactions in Solomon Islands 89 C. Capture Fisheries in Timor-Leste 94 D. Opportunities and Challenges in Valuing Subsistence Fisheries in the Philippines 98 E. Conclusions 102 References 103 iii iv EconomicsContents of Fisheries and Aquaculture in the Coral Triangle VI. Fisheries Value Retention in the Coral Triangle for Highly Traded Commodities 107 A. Introduction 107 B. Tuna Value Chains in Mindoro Straits and Lagonoy Gulf, Philippines 108 C. Live Reef Fish Value Chains from Taytay, Palawan 116 D. A Simple Value Chain Analysis for Coral Exports in Solomon Islands 129 References 137 VII. Assuring Sustainable Fisheries Development through Ecosystem Resiliency and Food Security 141 A. Importance of Fisheries in the Coral Triangle 141 B. Key Drivers Affecting Fisheries Ecosystem Sustainability 145 C. Management Approaches toward Assuring Fisheries Ecosystem Sustainability 152 D. Convergence Opportunities, Synergies in Fisheries, and Coastal Resource Management through the Ecosystem Approach to Fisheries Management 162 References 167 VIII. Regional Call to Action 173 A. Summary of Findings 173 B. Recommendations 175 Appendix List of Species in CT6 Countries (within FAO Landings Dataset, 1950–2010) 178 Tables, Figures, and Boxes Tables 1 CT6 Countries Population and Dependence upon Fishing 6 2 Aggregate Aquatic Production of CT6 Countries, 2010 10 3 Major Fishery Resources and Aquaculture Products of CT6 Countries 12 4 Time Series Trends for Target Species of Marine Capture Fisheries in CT6 Countries 15 5 Tuna Catches in Western and Central Pacific, 2009 16 6 Composition of Marine and Brackishwater Aquaculture Production in CT6 Countries 21 7 Volume and Value of Capture Fisheries Production in CT6 Countries, 2007 22 8 Production from and Value of Marine and Brackishwater Aquaculture in CT6 Countries, 2007 22 9 Currency Conversion Rates, 2007 23 10 Contribution of Fisheries to the National Economies of CT6 Countries 23 11 Value of Fisheries Attributed to Coral Reefs in CT6 Countries, 2007 26 12 Fisheries Status in CT6 Countries, 2009 29 13 Projected Production of Fish and Invertebrates from Different Environments and Sources in 2020 33 14 Predicted Per Capita Supply of Fish and Invertebrates in CT6 Countries in 2020 35 15 Aquaculture and Related Policies in the National Plans of Action 45 16 Value of Trash Fish Required for Aquaculture in CT6 Countries 52 17 Fishery Exports and Imports in CT6 countries, 2007 68 18 Net Value of Fishery Products Trade between the CT6 Countries and the Rest of the World 69 19 Percentage Contribution of Fish Exports and Imports between and among CT6 Countries 69 20 Top Export (and Reexport) Country Partners of CT6 Countries, 2010 71 21 Percentage Contribution of Fish Exports and Imports of CT6 Countries with Other Countries 73 22 Top 10 World Exporters in Some Fresh Seafood Categories, 2010 75 23 Number of Multilateral Fisheries-Related Agreements among CT6 Countries 79 24 Regional Fisheries Institutional
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