Showing posts with label Sea Food Demand. Show all posts
Showing posts with label Sea Food Demand. Show all posts

Thursday, 1 March 2012

Aquaculture

Aquaculture Expansion in Africa & Standards for Sustainability

February 2012

Aquaculture provides the world with about 53 million tons of fish each year and over seven per cent of the animal protein people consume. It includes carp, Tilapia (a freshwater fish found in Africa), Pangasius (a Mekong Delta catfish), Atlantic Salmon, other true fish, mollusks (e.g. oysters), crustaceans (e.g. shrimp), various other animals (e.g. turtles and frogs), and algae. Sixty per cent of aquaculture production is from freshwater bodies and the rest is from estuaries or the sea.
Aquaculture is an important and growing source of protein for many developing nations and a substitute for wild-caught fish whose harvests have often been unsustainable -- to the detriment of consumers relying on production and the species and ecosystems affected. Fish -- both aquaculture and wild-caught -- is particularly important in low-income food deficit countries whose overall consumption of animal protein is comparatively low but whose share of fish in animal protein consumed is high (20.1 per cent or more). Two priorities are critical to advancing aquaculture as a global public good: investment in Africa to expand its reach and assuring that aquaculture is environmentally and globally sustainable.

Aquaculture in Africa

Asia supplies 89 per cent of global aquaculture production (China provides 62 per cent of the total) and employs 94 per cent of the world's fish farmers. In contrast, Africa produces just two per cent of global aquaculture and employs one per cent of global fish farmers. Geography and biology do not explain this dramatic difference. Wet, tropical sub-Saharan Africa could support many more inland aquaculture facilities, and Tilapia, an African native, is one obvious choice for production. In principle aquaculture could not only feed people but also reduce unsustainable inland wild-fish harvest and the killing of monkeys and other "bush meat" animals that threatens survival of the species hunted and introduces diseases to humans. Northern Africa is drier and inland aquaculture facilities may be limited by the need for sustainable sources of freshwater, but facilities on the coast could readily support saltwater aquaculture. Food-challenged Somalia, for example, has the longest coastline in Africa and could support shrimp farms.
Expanding aquaculture in Africa is not a new idea. The World Bank and national development agencies have studied its potential and generally been positive. Furthermore, although aquaculture is limited, small-scale inland wild-capture fisheries are well developed in Africa and employ over four million women and men whose expertise would contribute to aquaculture development. Prospective public and private investors should carefully evaluate specific markets, governance, and other factors relevant to financially sustainable operations, but the apparent market and clear value for Africans calls for progress.

Standards for Sustainable Aquaculture

Its benefits notwithstanding, aquaculture can damage ecosystems. Shrimp, for example, are commonly farmed near saltwater bodies where mangrove forests and other wetlands naturally line the water's edge. These wetlands harbor diverse biota, provide key breeding and feeding grounds, recharge groundwater, limit run-off impacting coral reefs and other marine life, and ameliorate the impact of storms on the land. Yet huge areas of mangroves were destroyed to build shrimp farms in Asia, leading to protests by local and international environmental activists and resulting in operations whose long-term sustainability is in question.

Several steps have been taken in response to these concerns. In 1995, the U.N. Food and Agriculture Organization (FAO) endorsed principles for aquaculture and in 2006 FAO adopted principles for shrimp farming, which can also be used as a check list for other species. These guidelines address farm siting, farm design, water use, production stock, feed stock, health, food safety, and social responsibility. Since then, several organization have elaborated on these principles in standards for certifying good aquaculture practices, including GlobalG.A.P., Friends of the Sea (FOS), the Global Aquaculture Alliance (GAA), and the World Wildlife Fund (WWF). GlobalG.A.P. and the GAA are industry led, whereas FOS and WWF are independent non-profit organizations.

These different approaches may have the virtue of promoting discussion, but they also create confusion for buyers of aquaculture products and the opportunity for commercial retailers to adopt the most convenient requirements. The WWF "Aquaculture Dialogue" standards have been developed through a particularly pain-staking public process and, while not perfect, they are the best by comparison. Consumers will benefit from a single, widely accepted seal of approval and the WWF is the one around which to rally.

The WWF aquaculture standards apply to farms throughout the world and are most critical in developing nations where existing domestic regulation is less advanced. However the standards are currently limited to species (e.g. shrimp and salmon) that are marketed in developed nations where sustainability certification is considered a factor in sales. It's time to move beyond this limitation and to develop and implement standards for all significant aquaculture species whether or not they are exported. These standards can help companies and regulatory authorities in developing nations make domestic aquaculture more productive and sustainable, particularly if assistance is provided for training and implementation.

Furthermore, the opportunity for certification may promote development of export markets for a developing nation’s aquaculture production and help to sustain the farms for both domestic and foreign consumption. Carp stands out in this matter because no standard has been developed and yet it is the aquaculture industry's leading product. Carp made up 38 per cent of global aquaculture production in 2008, with over 96 percent farmed in Asia -- 70.7 per cent in China, 15.7 per cent in India, and 10.2 per cent in Bangladesh, Myanmar, Viet Nam, Indonesia, and Pakistan. Carp is mostly consumed in the countries where it is farmed, but a sustainability standard could facilitate export and also advance the growth of carp aquaculture in Africa and other developing nations. Also, a carp standard would inform national and local regulators, local communities concerned about habitat degradation and pollution, and domestic farms and processors that want to excel.

Food security is a pressing global goal in developing nations, including those in Africa, and animal proteins provide essential nutrition. Sustaining sea life is also a global goal, both for the food it provides and for many other economic and aesthetic values. Global aquaculture will serve both goals if expanded in Africa and managed sustainably wherever practiced.

Sea Food Demand

China Fishery Products Annual 2011

China's aquatic production in 2012 is forecast at 55.3 million metric ton (MMT), up more than one percent over from 2011. The aquaculture sector is expected to continue growing, albeit somewhat slower, in response to growing domestic consumption, a robust processing industry and strong export market, reports USDA Foreign Agricultural Service.

Report Highlights:

Total aquatic trade value is also expected to increase rapidly to an estimated $21.7 billion. US aquatic exports to China increased 58 per cent to $930 million in the first ten months of 2011 but still face an aquatic trade deficit exceeding $1.1 billion. Prospects remain strong for frozen fish, including salmon and plaice. Reduced import duties for several fish products in 2012 may increase opportunities for US exports.

Executive Summary:

Production:

China's aquatic production in 2012 is forecast at 55.3 MMT, up more than one percent from 2011. The aquaculture sector is expected to continue growing, albeit at a somewhat slower pace. Wild caught production, including overseas sourced, is not expected to rise in the future due to resource restrictions.

Demand:

  • Domestic - Rising affluence is driving domestic dietary habits toward alternative protein sources, including aquatic products, and increasing domestic consumption.
  • International - Sales to major export markets are rising as world economies rebound.

Total aquatic trade:

  • The value is expected to increase rapidly to an estimated $21.7 billion in 2011 from $17.2 billion last year and produce a $10.2 billion surplus.
  • China’s exports to the United States climbed to $2.1 billion in the first ten months of 2011.
  • Aquatic imports from the United States increased to $930 million in the first ten months of 2011, up 58 per cent over the same period in the previous year.

Challenges:

  • Investment in new aquaculture facilities slowing, environmental concerns and coastal development will limit resources available for seawater aquaculture expansion.
  • Limited resources restrain growth for wild catch increases.
  • Robust processing industry faces rising production costs and labour shortages.
  • Increase in international regulations.

Export Opportunities:

  • Prospects remain strong for US salmon, frozen fish.
  • Reduction in import duties on several fish products in 2012 could boost imports for domestic consumption.

Production

China expected to remain top aquatic producer

China remains the world’s largest aquatic product producer. China’s fishery sector is primarily aquaculture, both fresh and seawater cultures, and accounted for approximately 72 per cent of total aquatic production in 2011. The wild-catch component is significantly smaller and declining wild fishery resources, both domestic and overseas, will contain future potential growth.

Aquaculture is expected to continue growing, albeit at a somewhat slower pace than previous years. In 2011, new aquaculture area increased five per cent over the previous year, a significant drop from a 14 per cent increase in 2009, indicating investment in new facilities may have peaked.

2010 total aquaculture area

Total aquaculture water area reached 7.65 million hectares (MHa) in 2010 from 7.28 MHa in the previous year, with the majority (220,000 HA) of expansion in seawater facilities.
In further developing its coastal water resources, Liaoning Province in northeast China remains the top producer with a 2010 net increase of 128,000 hectare (HA) (compared to a net increase of 266,000 HA in 2009), followed by Shandong and Yunnan with net increases in aquaculture area of 71,000 HA and 32,000 HA in 2010, respectively. MOA officials relate that further expansion of water resources, especially seawater for aquaculture, will face serious challenges from environmental concerns and the rapid industrialization/urbanisation of China’s coastal region. Future production gains may have to incorporate technology and innovation to maintain additional growth.
For 2010, Shandong, Guangdong, and Fujian provinces, due to favorable coastal locations and abundant freshwater resources/facilities, are expected to remain the largest aquatic producers. Hubei, Guangdong, and Jiangsu provinces are the largest in terms of freshwater cultured production.

Aquatic Production expected to increase in 2012

Aquatic production for the first half of 2011 reached 22.8 MMT with a cultured production of 17 MMT, up 2.8 per cent over the same period in 2010, and accounting for 75 per cent of total production, based on China’s Ministry of Agriculture (MOA). 2012 total aquatic production is forecast at 55.3 MMT, compared to an estimated 54.6 MMT in 2011 and 53.7 MMT in 2010. Total wild catch production in 2011 is expected to maintain last year’s level.
China’s aquatic production (Unit: 1000 Metric Ton)

Total fish production stood at 31.3 MMT in 2010 (up 1.4 MMT from the previous year), accounting for 58 per cent of the total aquatic production, followed by shellfish and crustaceans at 23 and 10 per cent, respectively. Cultured fish continues to dominate with total production of 21.4 MMT, accounting for 68 per cent of total fish production in 2010. Carp remains the most popular cultured freshwater fish with total production of 15.1 MMT in 2010 (from 14.5 MMT in 2008), accounting for 73 per cent of total freshwater cultured fish production.

Tilapia, another popular cultured product, saw 2010 production of 1,332,000 MT, up six percent from 2009, but a drop from the previous ten year average of 11 per cent. Lower prices in 2009 and abnormal weather conditions in 2010 had driven down production. The 2011 tilapia production is expected to resume strong growth in response to foreign market demand and increasing domestic consumption, but the overall rebound will be impacted by increasingly serious disease outbreaks (streptococcicosis) and other factors (see following paragraph – Challenges).Guangdong, Guangxi, Fujian and Hainan continue to be the top four tilapia producers. Yunan province has been developing water resources for tilapia farming with total production approaching 60,000 MT in 2010.

Total catfish production was 591,000 MT in 2010, up from the 558,000 MT in 2009 and is expected to rise in 2011 in response to dynamic domestic consumption. Catfish production for export remains soft in response to uncertainty regarding pending US import policies.
Shellfish, primarily cultured in seawater, continued to show moderate growth with 2010 production of 11.3 MMT (See table), and accounted for 76 per cent of total sea water cultured production.
Cultured crustacean production reached 3.2 MMT in 2010, up 7.5 per cent over the previous year and is expected to remain strong in 2011 in response to domestic demand; catch production remains almost unchanged in 2010. Cultured penaeus vannamei (also known as white shrimp) production exceeded 1.2 MMT (up from the 1.1 MT in 2009), accounting for 38 percent of total cultured crustacean production.
Although there are freshwater aquaculture facilities nationwide, particularly for carp, some species’ production is limited to certain regions due to available resources and climatic conditions. For example, 90 per cent of tilapia production occurs in four provinces, Guangdong, Guangxi, Hainan, and Fujian in 2010. 57 per cent of catfish production is located in Sichuan, Jiangxi, Hubei, Guangdong and Hunan provinces.
The largest producers for both cultured freshwater and seawater shrimp and prawn are Guangdong, Jiangsu, Hubei, Guangxi, Zhejiang and Guangxi provinces. In 2010, Guangdong was the largest shrimp producer with total cultured production of 554,000 MT (compared to the 537,000 MT in 2009), of which Penaeus uannamei production reached 449,900 MT in 2010.
Eel production is concentrated in Fujian, Guangdong, and Jiangxi provinces with much of the production destined for the Japanese market. Shandong, Fujian, Guangdong, and Liaoning provinces dominate the cultured shellfish production accounting for 80 per cent of the 2010 total.

Production Challenge

Tilapia faces disease, competition

According to industry sources, streptococcus disease continued to adversely impact tilapia production in 2011. Experts believe deteriorating water environments and high-density farming has led to high bacteria counts. Low quality inputs, including feed and fingerling stock, and overuse of antibiotics are also contributing to disease conditions. These problems will impact tilapia production and quality in the near future. Another challenge for the tilapia industry is the increased production and exports of Basa fish by Viet Nam.

Industry experts state that Viet Nam’s Basa 40 per cent meat rate (compared to 33 per cent for tilapia) and lower price took significant market share from China’s tilapia sales in the United States in 2011. Industry leaders are studying ways to raise China’s tilapia competiveness in the international market. A new international aquaculture certification system initiated by the World Wildlife Fund (WWF) is also likely to impact China’s tilapia production and exports.

Aquatic catch production is shrinking

Total 2011 catch production of 15.5 MMT is almost unchanged from 2010 and catch production is unlikely to increase in the foreseeable future due to limited availability of resources. Seawater catch production from other territorial seas was 1,116,000 MT in 2010, up from 977,000 MT last year. Industry insiders believe it will be difficult to increase production significantly from other territorial seas.

Sea Food Demand

Shrimp Production Rises

January 2012
The shrimp market is on the rise despite the difficult global economic situation, reports the FAO's Globefish.

During the first half of 2011 the global shrimp market remained positive despite lower supply and strong prices worldwide. In Japan, demand for processed shrimp has been higher after the earthquake and tsunami, while demand for raw frozen shrimp dipped. Processed shrimp imports were also higher in other markets such as the EU and USA, confirming the positive trend for value added-shrimp.
In Thailand, the seasonal harvest of vannamei has been delayed as result of the severe floods, while in Viet Nam’s Mekong delta black tiger production was almost wiped out by disease leading to a shortage of raw material and pushing prices up.
India also increased vannamei aquaculture significantly in the southern areas, with a consequent decline in black tiger shrimp production. The wild caught Karikadi and poovalaan shrimp season was disappointing and packers faced difficulties in meeting agreed commitments.
In Japan, the post-tsunami shrimp market started to recover in June and the trend persisted into July and August. Sales of processed and semi processed shrimp increased but raw shell-on shrimp sales declined. Imports of raw frozen shrimp fell during the period January-July 2011 but increased by 8% for processed shrimp.
The Asian shrimp producing countries are facing a number of different challenges. After the severe flooding in Thailand and the typhoon that hit Viet Nam, as well as the disappointing landings of small wild shrimp from India, the shrimp supply chain will be affected in the near future. Given this scenario, prices are expected to remain firm. The Thai shrimp industry revised down this year’s export growth forecast to 5% (from an earlier estimation of 8%).
China’s exports increased this year by nearly 20% during the January-June period compared with the same period in 2010. Imports of all types of shrimp increased to 178 704 tonnes against 149 760 tonnes in 2010.
In the USA, domestic producers are having difficulties in selling their products as imported supplies of shell-on shrimp improved as well as increased availability of shrimp production from Ecuador. In the period January to July, overall US imports increased by 2.1% compared with the same period of 2010.
Thailand continued to be the main supplier followed by Ecuador and Indonesia. Total domestic landings from January-August increased by 65.7% compared with the same period of 2010, but were still below the high of 2009. Economic conditions are limiting further improvement in demand.
In Mexico,farmers decided to harvest early because of concerns over white spot disease. This could cause a decline in the availability of popular larger sizes.

In Europe, trading activities slowed down in the second quarter of the year, while demand remained strong in other major markets such as the USA.
Despite the crisis in the Eurozone, shrimp imports into the EU increased during the first half of 2011 and totalled 386 000 tonnes. Import volumes of raw frozen shrimp increased also by 10% during this period, with Ecuador, India, Greenland, Argentina and China being the main suppliers of this category. Demand from major EU countries remained strong with the exception of France where a decrease of 7.5% was seen. Imports by Spain, UK, Italy and Germany grew by 33.5%, 31.6%, 7.8% and 4.6% respectively during the January to June period.
Retailers are procuring products for the December/January sales increasing the seasonal demand for shrimp. The market is still price sensitive, which will favour sales of vannamei and other shrimp species that are in the lower priced categories.