Aquaculture in Asia-Pacific / June update

Disclaimer: This is not an extensive review of aquaculture in each country, this is a digest of the news about aquaculture in Asia-Pacific released on Internet this month. The validity of any information or figures quoted is the responsibility of the individual newspapers and websites concerned. Also, please check previous updates: August 2009, September 2009,October 2009, November 2009, December 2009, January 2010, February 2010, March 2010, April 2010, May 2010.

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World

• Aquaculture to invest in reputation

Aquaculture needs to invest more in its reputation. That was the conclusion of an instant poll during the aquaculture conference AquaVision in Stavanger, Norway, on Tuesday 8 June. Voting in the audience were the top leaders of the world’s main fish farming companies and aquaculture stakeholders. “The perception you earn among the public does not necessarily give the objective truth about our business, but it is nonetheless our responsibility. It is vitally important to fill any such gaps, which include not only perception gaps, but more importantly the quality gaps. A bad industry reputation may have serious consequences for our industry,” said Thomas Farstad, acting CEO Marine Harvest, the world largest fish farming company. According to the poll, both he and his top executive colleagues are willing to invest more than today in order to strengthen the reputation of aquaculture. Answering a further question in the poll, aquaculture leaders at AquaVision stated fish feed raw materials, diseases and parasites, and escapes are the most important challenges for the industry from a perception point of view. “Transparency is crucial. You have to tell the truth, and then show that you are taking action to remedy what ever is not good enough. Talking the talk is not enough. Prove it by also walking the walk,” Farstad said [source].

• MSC certification changes

Changes have been introduced to the Marine Stewardship Council’s fisheries certification. The changes aim to increase the transparency and accessibility of the certification process for stakeholders, and to ensure that stakeholder contributions are considered rigorously. The new rules, which came into effect on 1 May, strengthen the requirements upon certifiers to acknowledge and consider all written stakeholder comments, and to provide explicit responses from the assessment teams, at key stages of the assessment process [source].

China

• Chinese-German cooperation to develop 'SuperBio' tilapia

Several German and Chinese companies signed an agreement this month to produce completely controlled `Organic SuperBio Tilapia´ to sell in Europe and China. The Baader Group, the Pourkian Group, the Fraunhofer Institute for production lines and construction techniques, San’an Technology Group and Maoming Hi-Taste Aquatic Product Technology Co Ltd all signed the deal on 12 June. The partners agree that the organic fish products, which will be exported from China to Europe, must meet the European Union’s (EU) bio standards as well as the ISO, IF, GMP and GlobalGap standards. However, the firms aim to exceed EU bio standards, which permit 5 per cent of chemical additives. The Organic SuperBio products will be easily recognisable by customers through labelling, the firms said. The Institute will ensure the Organica SuperBio standards are enforced. They must be developed and localised based on the valid Bio and processing standards. All fish products will have their own brand [source].

India

• Aquaculture production increased by 30%

Export Promotion Agency of Fisheries of India (MPEDA) said the total production of aquaculture in the Indian financial year 2009-10 increased 30% to 106,000 tonnes mainly due to livestock production in Andhra Pradesh and Tamik increase Nadu. In addition, the Association of Seafood Export India (SEAI), aquaculture production and export growth partly due to coastal farms growing white shrimp aquaculture area of 1170 hectares. In fiscal 2008-09, aquaculture production of Indian coastal decreased 28.4% to 88,803 tons (406.6 million) and farming area decreased 10.9% over the previous fiscal year. Global economic downturn caused fish prices on the world market decrease, especially prawn prices, so the output of prawns decreased 53% to 12,806 tons, farming area 63% to narrow 1.644ha. In addition, profits and productivity of Indian shrimp are also affected by competing with the farmed vannamei lower price of some Asian countries like Thailand, Vietnam and Indonesia. According to SEAI, production costs only by white shrimp 1 / 2 compared with prawn production costs, equivalent to $ 2.29 per kg. Meanwhile India mainly tiger prawns and now the country's processing plants operate only 30% capacity [source].

Philippines

• Sudden temperature change caused Pangasinan fishkill

The Bureau of Fisheries and Aquatic Resources (BFAR) said the sudden change in temperature caused the massive fishkill in Pangasinan. "It is because of the sudden change of temperature," said Dr. Westly Rosario, director of the BFAR's National Integrated Fisheries Technology Development Center based in Dagupan. Rosario said that based on the water quality test they conducted, millions of bangus (milkfish) died at the Cakiputan Channel in Anda and Bolinao towns after the sudden drop of dissolved oxygen level to 1.7 parts per million. He said the normal level of dissolved oxygen needed to keep fish alive is 4 parts per million. The BFAR said the fishkill's damage to the country's aquaculture industry could reach P100 million. It said that the fishkill may also result in the shortage of milkfish supply in the country. The BFAR has banned the distribution of bangus from the affected fish pens in the province [source].

Taiwan

• Fish farmers urged to change focus to skirt Chinese competition

Taiwan's tilapia aquaculture farmers were urged to shift to production of higher added value fish fillets to skirt fierce competition from their Chinese rivals. Chen Tien-shou, deputy director-general of the Fisheries Agency under the Council of Agriculture, called for Taiwan tilapia farms to increase exports of fish fillets, which are higher priced, instead of producing whole fish, which face cutthroat competition from China. China's mass production and low price strategy have caused the price of whole tilapia to plummet since early this year. It fell to NT$33 (US$1.03) per kilogram at its lowest point from NT$45 two years ago, Chen said. The pricing problem prompted the Fisheries Agency to put forth a subsidy plan in May to encourage local tilapia farms to cooperate with seafood processing factories to increase their export of skinless, boneless tilapia fillets, which can be sold for US$6.5 per kilogram on an FOB basis. Under the incentive program, fish farmers are given NT$5 per kilogram in subsidies for their production and export inspection fees , according to Chen [source].

Vietnam

• Delta seafood output drops due to lack of financing

Mekong Delta seafood output has dropped as many breeders have stopped working due to a lack of access to much needed loans. The farmers need loans to compensate for skyrocketing feed prices, but banks have refused to lend, saying that many farmers have been negligent in paying off their debts, SPPO reports. According to Tan Loc Ward’s People’s Committee, the issue began in 2008 when tra fish (Pangasius) prices plunged and farmers were unable to sell due to an oversupply. In 2009, many households continued investing large funds in their farms with the hope of regaining the lost capital. Nevertheless, the prices still remained low, which deepened household debt. Fish breeders in the area now owe banks about USD 5-10 million in total, and many simply can’t pay. Many farmers already have all of their properties mortgaged. In the meantime, several farmers have begun borrowing from loan sharks at 5-10 per cent a month. Now, they can’t pay off those loans either [source].

• Mekong Aquaculture Finds Footing

The local seafood industry employs more than four million workers, not including indirect laborers working in the processing industry, export trading businesses, hotels, restaurants and shipbuilding units. Each year, the industry turns out VND120 trillion in production value and exports to 130 countries and territories, bringing in US$4.5 billion in total export value in 2008 that fell slightly to US$4.2 billion in 2009 due to the global economic recession. Vietnam is expected to post a US$4.5-5 billion seafood export value in 2010, and of this around US$1.45 billion will come from Basa and Tra fish exports from the Cuu Long (Mekong) Delta (accounting for 32.2 percent of the industry’s total export value). Vietnam’s total seafood output will be around 6.5-7 million tonnes per year by 2020, according to the Vietnam Institute of Fisheries Economics and Planning. Accordingly, great efforts should be made to stabilize exploitation of 2.2-2.5 million tonnes; increase offshore and gradually reduce inshore extraction in an effort to raise the exploitation output by 1.5 to 2 fold the current level; keep aquacultural areas stable at 1.1-1.2 million hectares with 12-15 percent of the area earmarked for intensive aquaculture with total output of 4.3-4.5 million tonnes. Aquaculture in the Mekong Delta is expected to take up an area of 830,000 hectares by 2015, of which 230,000 hectares will be for fresh-water seafood breeding and 600,000 hectares for salted and brackish-water seafood breeding. Accordingly, the region will turn out 2.97 million tonnes of seafood each year (including 571,800 tonnes of shrimp, 1.65 million tonnes of Tra fish and 165,000 tonnes of tilapia), generating US$4.47 billion in export value, VND94 trillion in production value, and providing jobs to 2.1 million direct laborers. By 2020, the Mekong Delta hopes to have 890,000 hectares of aquaculture area, producing 3.6 million tons of seafood and bringing in an export value of US$4.7 billion and VND122,000 tons in terms of production value, and providing jobs to 2.2 million people [source].

• Toxic chemical in aquaculture to meet the requirements of EU

EU-FVO (DG-SANCO) has officially announced the final report on the inspection tour in Vietnam evaluated the control of toxic chemical residues in aquaculture from 2009. Basically, the Vietnamese system of monitoring and controlling toxic chemical residues in Vietnam is being implemented appropriately and meet the EU regulations [source].

Please note that the FVO inspection report can be downloaded here. The executive summary states: “For aquaculture products, the national residues control plan basically complies with EU requirements. The residues status of aquaculture products imported into the EU from Vietnam is guaranteed by the pre-export testing programme and the own checks of the exporting companies. The number of detections of veterinary drug residues in consignments tested at EU border inspection posts has decreased since the 2007 mission. The laboratory network is adequate and sufficient for the residues control purpose. However, the effectiveness of residues controls is still undermined by (a) the limited scope of official testing for some groups of substances and (b) non-dissuasive enforcement measures when non-complaint results are detected.”

• Vietnam’s exports in May up 14.4 percent

The country’s total export turnover is estimated at $6.1 billion in May, a month on month rise of 14.4 percent while imports reached $6.85 billion, up 5.5 percent, representing the trade gap of $750 million–the lowest level compared with first months of 2010, reported general Statistic Office (GSO). During the period from January to May, Vietnam earned nearly $25.83 billion from exports, growing by 12.6 percent year-on-year and spent total $31.2 billion on imports. Many key export items of Vietnam, including rice, shrimp saw a flat trend in export to US. Even, the export turnover of black tiger shrimp in the first quarter of 2010 fell 1 percent, rice plunging 78 percent. Lately Vietnam has sued US before WTO of applying “zeroing” treatment on Vietnam’s processed shrimp. At this time US is imposing the antidumping tariff on Vietnam’s frozen black tiger shrimp. Vietnam’s tra are suffering the antidumping tariff on US market but the product is on danger to face another risk. According to US Farm Bill 2008, the USDA will remove the concept of Vietnam’s tra fish to the list of catfish that US is applying the comprehensive food safety and hygiene supervision (from breeding, processing to distribution) [source].

• VASEP decries alleged unfairness by US catfish farmers

The Vietnam Association of Seafood Exporters and Producers (VASEP) condemned the information about Vietnamese pangasius posted on the Catfish Farmers of America (CFA) website, calling it “false and misleading.” On 24 May, the CFA launched a website attacking Vietnamese tra fish. VASEP claimed this produces unfair competition by American catfish farmers against pangasius farmers and processors. The new food safety website pushes tougher inspections and regulation of imported and domestic pangasius. The website tells of health and safety dangers to American consumers resulting from the Food and Drug Administration’s (FDA) feeble inspection efforts for imported seafood. The site includes a graphic new investigative report, “Dirty Waters, Dangerous Fish,” showing current evidence of unsafe catfish farming practices along Vietnam’s contaminated Mekong River, the website claims. According to FDA records, the website says, among the 2 per cent of Vietnamese seafood imported and inspected by the FDA during a recent four-year period, nearly one in every five shipments was found containing pangasius and other seafood products contaminated with potentially deadly chemicals or drugs banned by the US in farm-raised catfish. VASEP has strongly protested its information and said it clashes with the spirit of the Vietnam-US Bilateral Trade Agreement, which requires that objective and accurate information to protect the legal rights of US consumers be provided. Making a negative impact on the trade ties between Vietnam and US must be avoided. The association said Vietnamese farmers no longer raise pangasius in floating cages in the Mekong River, choosing now earthern farming ponds instead. These meet SQF1000 and other international standards for strict hygiene and safety. Currently, Vietnamese pangasius businesses have built an integrated production chain to guarantee quality control and food safety “from-farm-to-table.” Increasing amounts of pangasius farms in Vietnam have been granted Global Good Agricultural Practices (GAP) certifications to ensure the cleanest and safest farming conditions possible, VASEP assured [source].

• USA: New law to distinguish catfish from pangasius

Restaurants in Tennessee and Mississippi will tell catfish and pangasius eaters whether their catfish is coming from the Mississippi or the Mekong Delta starting on 1 July. A similar law is already in effect in Arkansas [source].

• Difficulties in the linkage between production and processing of Pangasius

Since early last year, especially after Tet, the price of tra and basa fish tends to climb. However, processors are worried about a repeat of the situation « lower prices, no buyers » and « higher prices, not sellers, » which has raged in recent years in the Mekong Delta. According to statistics from the Ministry of Agriculture and Rural Development, approximately 40% of the area of raising these fish in the Mekong Delta remained unused. « A headache for the leaders of the aquaculture sector is the lack of planning and linkages between farmers and processors. In addition, farmers make little profit or not profit because the cost of production still too high, « says Vu Van Tam, Deputy Minister of Agriculture and Rural Development. To sustainably develop this production, « we must seek measures to overcome obstacles in the production and marketing and expanding markets, » he adds. « It is necessary to adopt specific policies on production and exports of fish. They need to be classified in the national list of strategic goods, » said Huynh Thê Nang, vice president of People’s Committee of An Giang province. « These fish will be sold easily abroad, including North Africa, South America and the Middle East, if the localities in the Mekong Delta join forces to promote activities in this area, » he said. To enhance the production and processing tra and basa fish for export, four emergency solutions are taken by the Ministry of Agriculture and Rural Development. The first concerns the planning of breeding areas, the provision of credit to farmers and business development in the area. Second, services should help farmers reduce production costs to increase their profits. Thirdly, there is a need to establish close liaison between farmers, processors and food producers. The fourth option is to strengthen trade promotion and brand building for these fish [source].