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Sustainable Development of Export-Orientated Farmed Seafood in Mekong Delta, Vietnam

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Sustainable Development of Export-Orientated Farmed Seafood in Mekong Delta, Vietnam SUSTAINABLE DEVELOPMENT OF EXPORT-ORIENTATED FARMED SEAFOOD IN MEKONG DELTA, VIETNAM By Lam Phan Thanh A thesis submitted for the degree of Doctor of Philosophy Sustainable Aquaculture Research Group Institute of Aquaculture, The University of Stirling Scotland, UK 2014 II DECLARATION I do hereby declare that this thesis has been achieved by myself and is the result of my own investigations. The work presented in this thesis has not previously been submitted for any other degree or qualification. Lam Phan Thanh 2014 i ACKNOWLEDGEMENTS First and foremost, I would like to thank the Institute of Aquaculture at the University of Stirling, and the collaboration of the staff of the Can Tho University, all of whom made this work possible. I would like to express sincere gratitude to my supervisors Prof. David Little, Dr. Francis Murray and Prof. Nguyen Thanh Phuong for their full support and supervision both during the preparation of the proposal, the fieldworks and the write up of the thesis. At large, thanks to the University of Stirling for all the quality and effort you put in for the running of my PhD programme. My sincere gratitude goes to the collaborative EU/FP7 research project called Sustaining Ethical Aquaculture Trade (SEAT project no. 222889) for granting me the scholarship to undertake graduate studies at the University of Stirling. I would also like to thank my Research Institute of Aquaculture No.2 for allowing me to participate the SEAT project and studying at the University of Stirling. I also thank to Dr. Nguyen Thanh Tung and my colleagues at RIA2 for their invaluable support throughout the course of this study. The secondary data on this thesis were collected under the provincial Department of Fisheries in the Mekong Delta, Institute of Economics & Fisheries Planning, Department of Animal Health and Fisheries Directorate in Vietnam, special gratitude goes to them for their permission to carry out this study and providing the data and relevant reports. I also thank Dr. Vo Nam Son, Mr. Dao Minh Hai, Mr. Nguyen The Dien and Mr. Tran Huynh Quoc, who work with me in the field of shrimp and striped catfish areas in the Mekong Delta. I express thank to Dr. Corinne Critchlow-Watton for her comments and English review of manuscript. I dearly thank my parents and little son for their never-ending love and moral support. Finally, I thank my friends at the University of Stirling who have been part of my stay in Stirling, it was a pleasure and experience to have acquainted with you all. ii ABSTRACT Aquaculture is playing an important role in the development of fisheries in Vietnam, a role which has accelerated since 2000. Sustainability in aquaculture is receiving increasing attention, and this issue is not only the concern of government, but also stakeholders participating in the value chain. Therefore, this study aims to identify sustainability issues of farmed seafood by assessing the main sustainability issues raising concern. The Global Value Chain framework described by Gereffi et al. (2005) is applied for this study to explore the business relationships in supply chain and the perceptions of sustainability concerned by the value chain actors. A combination of qualitative and quantitative methods was used to collect data. An assessment of four species cultured on the Mekong Delta, the countries farmed seafood ‘hub’, found a clear distinction between species cultured with a local domestic market orientation (Giant Freshwater Prawn Macrobrachium rosenbergii; and Tilapia Oreochromis niloticus) and the two key export commodities - Striped catfish (Pangasianodon hypophthalmus) and Penaeid shrimp (Penaeus monodon & Litopenaeus vannamei). These orientations were based on a range of factors including the development of effective seed supplies and the cultural value of marketing in the live format. This study, conducted in ten provinces in the Mekong Delta from 2009 to 2013 had a focus on understanding the export-orientated commodities, striped catfish and shrimp through collection of baseline information on the value chain of farmed seafood, focusing on the farming sector, the actors and institutions involved and beneficiaries. Sustainability issues and perceptions of experts (top-down) and primary stakeholders (bottom-up) opinions were assessed through participatory workshops. iii Shrimp and striped catfish production are mainly farmed for export, with 83% and 95% of its production, respectively, leaving the country mainly after processing. Currently, mainly families operate small-/medium-scale farms; while large-farms are integrated within seafood processors. Production efficiency of large-farms tends to be better than small- /medium farms. Many striped catfish and shrimp farms are likely to reach several standard criteria such as economic feed conversion ratio (eFCR), stocking density, no banned chemical/drug and wild-seed use, and land property rights; however, there were still many standard criteria that existing farms could not meet such as effluent management, farm registration, fishmeal control, farm hygiene and record-keeping requirement. Hence, current farming practices, especially small-/medium farms have a long way to go to meet emergent international food standards. Recently, many small-/medium catfish farms faced problems with low fish prices, so they have had to cease catfish farming activities and temporarily stop farming; while some larger farms also had to temporarily stop farming. Therefore, fish price has tended to be a main driving force for catfish farm changes. In the shrimp industry, there were technical changes occurring in the high intensity level of shrimp farms (HiLI); whereas, the remaining shrimp farms had fewer changes in farm management. Most HiLI shrimp farms were affected by AHPNS disease, which was a main factor driving their farm changes. Many perceptions of sustainability were identified by stakeholder groups, however seven sustainability issues had a high level of agreement among stakeholders including input cost, capital & credit costs, unstable markets, government regulation & policy, disease, seed quality, water quality and water availability factors. Hatcheries, farmers and manager groups were more concerned about environmental issues; while for the input suppliers and processors, economics was the main issue. Farmers and processors were two main actors iv that played an important role in the production process of the value chain. Small-/medium farms dominated the number of farms overall and still played an important role in primary production. However, small-scale farms were considered as more vulnerable actors in the value chain, and they faced more difficulties in meeting increasing requirements on food quality/safety. To maintain the position in the value chain, the solutions could be horizontal and vertical coordination. Thus policy makers will need to find ways to include them in the planning processes. To reach sustainability will require the efforts of direct stakeholders, the role of the state agencies is essential in negotiation and diplomacy to create partnerships with the seafood importing countries. However, efforts to develop sustainable production become impossible without participation from importers, retailers and consumers. v TABLE OF CONTENTS DECLARATION ........................................................................................................................... I ACKNOWLEDGEMENTS .......................................................................................................... II ABSTRACT ................................................................................................................................ III TABLE OF CONTENTS ............................................................................................................ VI LIST OF FIGURES ...................................................................................................................... X LIST OF TABLES ..................................................................................................................... XII ABBREVIATIONS ................................................................................................................. XIV CHAPTER 1. INTRODUCTION AND LITERATURE REVIEW ............................................. 1 1.1. RATIONALE FOR CONDUCTING RESEARCH .............................................................................. 1 1.2. SUSTAINABILITY ISSUES IN AQUACULTURE DEVELOPMENT ................................................... 4 1.2.1. Sustainability development .............................................................................................. 4 1.2.2. Sustainable aquaculture .................................................................................................. 12 1.2.3. Aquaculture certification ................................................................................................ 20 1.3. INTRODUCTION TO RESEARCH ............................................................................................... 31 1.3.1. Research objectives ........................................................................................................ 31 1.3.2. Focus of the research ...................................................................................................... 32 1.3.3. Structure of the thesis ..................................................................................................... 32 CHAPTER 2. RESEARCH METHODOLOGY ........................................................................
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