1. Post harvest and Trade Kieran Kelleher

2. Why post harvest? it turns fish into value post-harvest losses are high – up to 100% it adds value why post-harvest? a) It turns my fish into value b) I have lots of post-harvest losses – sometimes all my fish c) It gives me the opportunity to add value

3. some price and market trends China – the market juggernaut trade disputes – the breaks on the truck subsidies - greasing the wheels - interactive exercise contents

4. the bottom lines seafood markets - the driving force –rapidly changing –China - dominant and growing influence trade disputes impact small scale producers and consumers WTO is edging towards a subsidies compromise … maybe! wide scope for World Bank investment

5. change: structural and prices product value chains contracting value added - fresh / ‘TV meals’ landed prices relatively stable –some exceptions technology driving productivity (aquaculture, netting, vessels, information tech.) and driving prices down prices …3 examples

6. … change in aquaculture

7. knowledge-based productivity Species group selective breeding (not GMO) Gain in growth rate per generation % Price decline % Production increase % Atlantic salmon10 -1420-403108 Tilapia12 – 1520+164 Pacific whiteleg shrimp 4 – 1162854 Common carp - inbreeding minus 20 to 30 (China/ Bangladesh) 40397

8. the knowledge bootstrap breeding, vaccines, feed technology breeding, vaccines, feed technology increased productivity increased investment market expansion Increased production price declines increased investment Start.. in

9. IT – Kerala cell phones (Jensen study) cell phones - market prices / demand while at sea fisher profits +8%, consumer prices -4% phones paid for themselves 2 months cellphone becomes ‘middleman’ ‘zero’ govt. intervention more efficient markets generic: 1 mobile phone per 10 people +0.59% GDP per person

10. Samudram – Orissa information empowering women objectives - traditional marine fisher women –enhance economic, cultural and political status –capacity building for empowerment information (among other activities*): –public weighing of fish –distant market price information/ buyer interface –‘certifying’ reputable buyers / terms of trade *e.g. child marriage, gambling, alcoholism

11. Samudram results confidence to ‘tackle’ traders / middlemen assured markets prices + 30%

12. Enter the Dragon Ooo! fish for dinner

13. China’s seafood market world’s largest producer (35%) & consumer –farmed exceeds capture fish trade surplus $5 billion (2006) –10% of world exports the main growth factor in the global seafood market rising incomes rising/ changing domestic demand food safety a major theme for next five-year plan

14. China trade raw material for exports: –domestic source 63% –imported for processing 37% use of fish imports

15. consumption % change 1998-2005 HOUSEHOLDS LOWINCOMEMIDDLEINCOMEHIGHINCOME (Kg) %% Pork 27.3%29.5%23.1% Poultry 81.3%92.9%96.0% Fish 110.3%125.5%153.9% Shrimp-25.9%11.4%58.8%

16. urban households kg per capita KG PER CAPITA %19982005 2012 projection MEAT % 83%73%71% FISH % 17%27%29% TOTAL kg/ capita (100%) 304561

17. trends/ concerns eating out from wet market to supermarkets increasing brand awareness growing food safety issues (not just fish) –number one concern for Chinese consumers! –‘ made in China ’ concern worldwide >200 rejections –government launched a number of policies and measures …build environmentally aware consumers ?

18. global multiples in Asia CompanySales $billionAsia / Pacific operations Wal-Mart312China, Japan, South Korea Carrefour92.6China, Indonesia Malaysia, Taiwan, Thailand, New Caledonia, S. Korea, Singapore Tesco69.6China, Japan, South Korea, Malaysia, Taiwan, Thailand Metro69.3China, India, Vietnam

19. China’s seafood supply chain Farming/wild catch Fragmented. individual and small farms dominate Emerging model ‘ Company + farmers production base ’ Growing regional concentration of aquaculture and processing Declining marine landings, rising f/w catches (nominal) Processing Export driven Foreign investment heavily involved Limited processing for domestic market Technology advanced and highly certified Growing processing/ re- export - overcapacity 450,000 food processors – 350,000 small Distribution/tradi ng Retail Mainly through wet market, with rising sales of chain stores Weak traceability Food safety remains the top concern – 8% Eating out/ convenience foods growing Individual-based distribution Dual food safety standards for export and local market Import bans from major trading partners

20. Fish Trade Wars

21. brakes on a globalizing seafood trade dumping – Vietnam/ US (basa/ catfish) zero tolerance EU’s SPS in India (shrimp) iconic species versus trade –dolphin-friendly tuna (US / Mexico) –of shrimp and turtles (US / India et al.) tariff barriers

22. US anti-dumping ( WTO AD agreement) the catfish case (Vietnam) the shrimp case (Brazil, China, Ecuador, India, Thailand and Vietnam) foreign merchandise is sold at “less than its fair value” and a U.S. industry is “materially injured” petition from US industry Dept. of Commerce determination – 160 days customs bond

23. the catfish case x 50 increase in US imports ’98-2002 under US cost of production AD action – 45-64% AD margin “to catfish or not to catfish” that is the question quality perceptions livelihoods of 0.5 million in Mekong

24. environment versus WTO the shrimp/ turtle case (US vs Malaysia, India, Pakistan, Thailand) if fishing kills turtles the shrimp cannot be imported in the US unless the harvesting nation has a (US) certified to have a regulatory program to reduce turtle mortality essentially applied its own environmental standards WTO rejected – later approved

25. SUSTAINABILITY Fish resources/ ecosystems Iconic species Capital: fleet overcapacity Operations: subsidies (e.g. fuel) STANDARDS TRADE RULES ecolabels traceability food safety WTO: SPS SCM AD Rules of Origin Codex ISO retailers green NGOs consumers Growing demand/ changing rules / standards

26. look! as a World Bank staffer all I need are key messages the key messages the World Bank Group can play an important pro-poor role in post harvest it is important to link post-harvest investment to resource sustainability and livelihoods

27. Are you seriously suggesting putting people before fish ? Is it PROFISH, or pro-poor ?

28. there is real potential for investment in post harvest !

29. investments governance public-private partnerships capacity building for fair and equitable trade

30. infrastructure transport communications

31. information and market access for fish

32. …. and other marine products

33. food safety risk assessment Its OK, I have insurance

34. RESOURCES: FAO Technical Guidelines on: - Responsible Fish Trade - Responsible Fish Trade - Ecolabelling - Ecolabelling - Post-harvest - Post-harvest Globefish Network IFC Safeguards (processing) www.worldbank.org/fishkkelleher@worldbank.org