1. TILAPIA IN CFC/FAO/INFOFISH “ORGANIC” AQUACULTURE PROJECT Fatima Ferdouse INFOFISH

2. Market survey The project conducted market surveys in Asia, North America and EuropeThe project conducted market surveys in Asia, North America and Europe Market potential for certified organic turned out to be good in East Asia compared to the western markets during 2008-2009Market potential for certified organic turned out to be good in East Asia compared to the western markets during 2008-2009 Consumers demand in Asia also seems to be larger for Chemical-free fishConsumers demand in Asia also seems to be larger for Chemical-free fish With this feed back, trial production and marketing of chemical-free tilapia began in MalaysiaWith this feed back, trial production and marketing of chemical-free tilapia began in Malaysia

3. TRENDS IN GLOBAL ORGANIC FOOD MARKET

4. GLOBAL ORGANIC PRODUCTION AREA : 35 million hectares in 2008GLOBAL ORGANIC PRODUCTION AREA : 35 million hectares in 2008 (0.70% of world agriculture land) (0.70% of world agriculture land) GLOBAL AQUACULTURE (food fish) PRODUCTION : 50 331 239 tons (2007)GLOBAL AQUACULTURE (food fish) PRODUCTION : 50 331 239 tons (2007) ORGANIC FISHERIES PRODUCTION : 53 000 - 55 000 tonsORGANIC FISHERIES PRODUCTION : 53 000 - 55 000 tons (0.10 % of world aquaculture production ) (0.10 % of world aquaculture production ) ESTIMATES ON GLOBAL ORGANIC FOOD PRODUCTION

5. ORGANIC FISHERY MARKET US$ 300 - 400 million at distributor levelUS$ 300 - 400 million at distributor level US$ 800 - 900 million at retail level US$ 800 - 900 million at retail level ESTIMATES …… GLOBAL ORGANIC FOOD MARKET. Organic Food and Beverage: US$ 50 billion in 2008 USA : US$ 20 billion EU : >US$ 20 billion Japan: <1 US$ billion China : US$ 4 billion Malaysia : US$ 25 million Singapore : US$ 25 million

6. ASIA-PACIFIC ORGANIC FOOD MARKET : Organic food and beverage consumption in Asia/Pacific is higher than the global average (AC Nielson, ) The leading markets identified are China, Taiwan, South Korea, Singapore, Thailand, Malaysia Organic salmon and cod were the only seafood one could see in SE Asian markets ------- except in China Marketers and consumers say-----”organic fishery products are unavailable to them”.

7. ORGANIC MARKET IN CHINA -2009 Organic food market was worth US$ 3-5 billion Certified organic fishery production totalled over 16 000 MT in 2007 This was equivalent to only 0.4% of the total aquaculture production in 2007 Nearly all organic fishery products entered the domestic market

8. Organic Seafood Survey in SE Asia Medium & High-end supermarkets Five star Hotels Fine dinning & restaurants

9. Global Production of Organic Fishery Products Europe : 24 500 tonsEurope : 24 500 tons Asia : 19 000 tonsAsia : 19 000 tons Americas: 7 000 tonsAmericas: 7 000 tons Africa: 2 000 tonsAfrica: 2 000 tons Australia & NZ: < 1 000 tonsAustralia & NZ: < 1 000 tons Salmon : 30% ( 16 000 tons ) Salmon : 30% ( 16 000 tons ) Trout :36% Trout :36% Sea bream / Sea bass :7% Sea bream / Sea bass :7% Carp :10% Carp :10% Shrimp: 18% ( 8 800 tons ) Shrimp: 18% ( 8 800 tons ) Tilapia : 2% Tilapia : 2% Pangasius: 2% Pangasius: 2%

10. Trial Production of Organic Tilapia Malaysia : Cage cultureMalaysia : Cage culture in Tasik Kenyir, Terengganu in Tasik Kenyir, Terengganu Myanmar: Pond cultureMyanmar: Pond culture

11. Cage culture in Tasik Kenyir, Malaysia Initial culture was focused on chemical-free fish

12. ‘- Organically’ farmed tilapia entered the ‘live fish ’ retail trade (supermarket) in Kuala Lumpur for the first time -Local organic shop started marketing whole dressed fish and fillet through selected outlets -Consumer feed back was good, but regular supply has been a constraint ; demand increased after the trial marketing -, Tilapia price at farm gate and retail level increased for such fish over the last two years Test Marketing

13. MYANMAR Initial farming was targeted for the organic freshwater machrobrachium or freshwater prawnInitial farming was targeted for the organic freshwater machrobrachium or freshwater prawn The poly-culture system later offered opportuinities for organic tilapiaThe poly-culture system later offered opportuinities for organic tilapia

14. MYANMAR A potential Asian buyer visited the farming siteA potential Asian buyer visited the farming site Taste test was doneTaste test was done And she liked the “organic prawn and tilapia ‘And she liked the “organic prawn and tilapia ‘ And the ‘organically grown ‘ pangasiusAnd the ‘organically grown ‘ pangasius

15. MYANMAR Poly-culture (freshwater prawn and tilapiaPoly-culture (freshwater prawn and tilapia Farm -made certified feed was used to produce organic tilapia and prawnFarm -made certified feed was used to produce organic tilapia and prawn The farm followed organic aquaculture proceduresThe farm followed organic aquaculture procedures The ‘Organic Tilapia ‘ received OAPC certification from ThailandThe ‘Organic Tilapia ‘ received OAPC certification from Thailand

16. Finally ORGANIC TILAPIA and F/W Prawn were exported for Malaysia and Singapore markets

17. OPPORTUNITIES Organic poly-culture Organic barb Organically grown pangasius

18. Malaysia : Price Premium for Chemical – free at Farm Gate (INFOFISH, 2009) Pangasius catfish : 35%Pangasius catfish : 35% Tilapia : 36%Tilapia : 36% B/tiger Shrimp : 30-40%B/tiger Shrimp : 30-40%

19. Higher value of fresh/chilled fish will continue to associated with the quality marks

20. Economic recession has slowed down growth in western organic markets. Naturland reported that only 36% of shrimp was marketed (in Europe/USA) as organic---due to supply-demand imbalance and too much market dependence on these markets In comparison, organic finfish ( salmon, bream, pangasius, sea bass and sea bream) market was less effected. Organic salmon and cod are also imported into East Asian markets In Asia, wild caught fishes currently fill up the place of organic fish due to lack of supply / inadequate supplies from local sources. Once available --- organic and chemical –free fishery products, particularly the fin fish species - will benefit significantly from the ‘ready’ domestic and regional markets. Environmental issues and aquaculture : Organic aquaculture would be able to weather issues such as ‘carbon labeling’ in the production cycle