1. John Connelly President Seafood Sustainability Trends, Market Drivers, and Opportunities

2. Seafood Sustainability Topics  Who is NFI  What are the status of stocks  What are the perceived status of stocks  Why the difference between reality and perception matters  Industry responses – Wal-Mart case study  Future challenges

3. National Fisheries Institute Who We Are  Voice for seafood community in Washington, with the media, and in the marketplace  Represent industry from “water to table”  Represent most domestic industry and importers  Committed to sustainable use of resources  Work closely with Petur Bjarnson through ICFA

4. Relationships Among Key Issues Where We Spend our Resources (by discipline) Health benefits Low HighHigh Aquaculture Low Medium High Trade issues High LowHigh Access to resources High LowHigh Economic integrity Low High Medium LegislativeRegulatoryCommunications

5. Data and Trends in the U.S. Market Status of Stocks, Consumption Trends and The Good News

6. Seafood Sustainability Status of Global Stocks Stable supply of 80 M MT wild capture fisheries since 1986

7. Seafood Sustainability Status of U.S. Stocks Overexploited stocks stabilizing since early 1990s

8. Seafood Sustainability Variability in Regions Stocks Variability in management regimes leads to variability in successful stock management

9. Fish Consumption What Others are Saying American Heart Association: We recommend eating fish (particularly fatty fish) at least two times a week. Fish is a good source of protein and doesn’t have the high saturated fat that fatty meat products do. Fatty fish like mackerel, lake trout, herring, sardines, albacore tuna and salmon are high in two kinds of omega- 3 fatty acids, eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA). American Dietetic Association: Fish provides a good source of the fatty acid omega-3, which can help reduce the risk of heart attacks. Fish is also a great source of protein, zinc and iron and has less saturated fat, which can increase blood cholesterol. The current FDA recommendation is to eat up to 12 ounces a week.

10. Fish Conmsumption What Others Are Saying U.S. government policy: Americans should eat fish twice per week

11. What Fish Americans Eat Top Ten Seafoods 2004 Shrimp 4.2 Canned Tuna 3.3 Salmon 2.2 Pollock 1.27 Catfish 1.09 Tilapia 0.69 Crab 0.62 Cod 0.60 Clams 0.47 Flatfish 0.39 2003 Shrimp 4.0 Canned Tuna 3.4 Salmon 2.2 Pollock 1.71 Catfish 1.14 Cod 0.64 Crab 0.61 Tilapia 0.54 Clams 0.53 Scallops 0/33 2002 Shrimp 3.7 Canned Tuna 3.1 Salmon 2.0 Pollock 1.13 Catfish 1.10 Cod 0.66 Crab 0.57 Clams 0.53 Tilapia 0.40 Flatfish 0.32 2001 Shrimp 3.4 Canned Tuna 2.9 Salmon 2.0 Pollock 1.21 Catfish 1.15 Cod 0.47 Clams 0.47 Crabs 0.44 Flatfish 0.39 Tilapia 0.35

12. Data and Trends in the U.S. Market Consumption Trends and The Bad News

13. Seafood Sustainability Creation of Perceptions

14. “Mercury is such a potent neurotoxin that even small doses can cause irreversible brain and heart damage.”

15. “… Farm raised salmon are fed antibiotics, colorants and pesticides!”

16. Total Negative Seafood Coverage Number of Clips by Year

17. So what --- “I don’t need to be loved …… I just need people to eat seafood.”

18. Data and Trends in the U.S. Market Consumer Attitudes

19. Familiarity Overview 100 0 Positive seafood messages generally have solid levels of awareness. Negative seafood messages generally have much lower levels of awareness.

20. Believability Overview 100 0 Positive seafood messages have high levels of believability. Negative seafood messages have levels of believability just as high as the positive messages.

21. Impact Overview 100 0 Negative seafood messages have levels of potential impact on seafood consumption just as high as the positive messages.

22. Corporate Image Challenges Seafood as Part of Broader Campaign

23. Where is Weakness in This Chain? Where Would You Attack? Harvesting Fish Farming Processing Retailers Harvest levels Environmental Food safetyPersonal health Harvest types Feed issues Related to families eg, bottom trawlsand children Susceptible to boycotts New approach (and thus newsworthy)

24. Seafood Sustainability Wal-Mart’s Challenge: An Example Wal-Mart’s goals is to site 1,500 new stores in the United States.

25. Seafood Sustainability Wal-Mart Actions  Third party certified farmed shrimp  Third party certified wild capture products  Logo on certified products  Suppliers work with fisheries on “long term” fisheries  Suppliers work with WWF and CI on “challenged” fisheries  Work long term on selling only certified fish

26. Seafood Sustainability Certification Schemes: Some More Credible than Others

27. Seafood Sustainability Certification Schemes FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS helping to build a world without hunger Report of the Expert Consultation on the Development of International Guidelines for Ecolabelling of Fish and Fishery Products from Marine Capture Fisheries Requirements, criteria and procedures for ecolabelling of fish and fishery products from marine capture fisheries Three principal procedural and institutional matters: setting of certification standards accreditation of independent certifying bodies certification that a fishery and the product chain of custody

28. Seafood Sustainability Wal-Mart Commitments Can Wal-Mart Sustain a Softer Edge? February 8, 2006; Page A2 You have to wonder what the late Sam Walton would have thought if he had seen this Wal-Mart vows to sell only sustainable fish recent headline: ".“ Sustainable fish? Get real. Whole Foods, the upscale retailer, sells "sustainable fish." Wal-Mart, the cost-chopping company Sam Walton created a half-century ago, sells cheap fish. How else can they offer salmon for less than $5 a pound? But after spending some time with Wal-Mart Chief Executive Lee Scott on Monday, I came away convinced there's more going on here than just public relations. Mr. Scott drives a Lexus hybrid, he touts products that reduce greenhouse gases, and he really believes in sustainable fish. The company has decided that the fresh fish it sells in North America -- excluding farmed fish -- will carry certification labels from the nonprofit Marine Stewardship Council, a conservation group that works to prevent the seas from being overfished.

29. Seafood Sustainability Wal-Mart Actions Helping Accelerate Market Action $5 billion sales 1,271 restaurants $24 billion sales 400,000 employees Industrial restaurants/cafeterias $67 billion sales 250,000 employees Industrial restaurants/cafeterias

30. Data and Trends in the U.S. Market Challenges in Capacity

31. Status of Fisheries Certification Top Ten Seafoods: Stages of Certification 2004 Shrimp Canned Tuna Salmon Pollock Catfish Tilapia Crab Cod Clams Flatfish Aquaculture ACC n/a FMI SQL (Chilean salmon) ___________(Norwegian salmon) n/a ___________________________ n/a Wild Capture ______________________________ MSC (Alaska) ______________________ (Russia) n/a ____________________________ WWF and Conservation International ____________________________

32. Seafood Sustainability MSC Certified Fisheries Undergoing or May Consider Certification Lobster (North America) Pollock (Russian) Flounder (Pacific) Whiting (Pacific) Ocean perch (Canada) Snow crab (Alaska) Dungeness crab Halibut (Alaska) King crab (Alaska) Tuna Pink shrimp (Oregon) Certified Alaska salmon (214,000,000 salmon) Alaska pollock (1,200,000 mt) New Zealand hoki (200,000 mt) South African hake (166,000 mt) Pacific longline cod W. Australia rock lobster (12,000 mt) Burry Inlet cockles (7,000 mt) Patagonia toothfish (4,000 mt) South Mackerel handline (2,000 mt) Baja red rocklobster (1,000 mt) Loch Torridon Nephrops creel (150 mt) Thames River herring (120 mt)

33. The seafood community has a unique and healthy product that the public feels good about. Industry and government have failed to adequately communicate the state of stocks, leading others to fill the void. Retailers and restaurants must protect their reputation …. and brand. Seafood certification systems will grow in importance. Seafood suppliers must decide commitment to those customers demanding certifications. Seafood suppliers must decide which certification system is best for them. Seafood Sustainability Conclusions

34. Takk fyrir John Connelly jconnelly@nfi.org 1-703-752-8881