GLOBALIZATION IN FISHERIES

Arlyn R. Morales-Mendoza
Senior Aquaculturist
BFAR Region 3, City of San Fernando, Pampanga

Introduction

As background of this subject, I would like to first define globalization and

liberalization as starting points. The way I understand it, I took the Oxford definition as the
basic concept of globalization, that is, ‘the process by which businesses or other
organizations develop international influence or start operating on an international scale’ 1.
This may be referred to in this Reflection Point as ‘export’ or ‘sending goods and services to
another country for sale’2. Meanwhile, I derived ‘liberalization’ from Nicola Smith’s article
on Liberalization under the Political Science segment. According to Smith (2013),
liberalization is the loosening of government controls. As an economic term, it refers to
reductions in restrictions on international trade and capital.3 This may be referred to herein
as imports or ‘bringing goods or services into a country from abroad for sale’4.

Globalization in Fisheries

Philippines, being a third world country, has opened itself to the world of
globalization with its bountifully endowed natural to human resources in exchange of more
benefits for its big population. On fisheries, the first mention of liberalization in the
Philippines was on 1986. Small pelagic fishes such as sardines, mackerels and anchovies
(‘dilis’) were promising exports that from 1987 to 1991, these were exported in the form of
canned (64%) and dried (36%) products. During the same period, Philippines also imported
raw cannery materials for mackerels and sardines. Impact of this importation was that
liberalization favoured imported materials supplying 90% of local cannery requirements
than local sources of cans causing concern among local producers.5 The live reef food fish

1
Oxford. (2019). Globalization (Definition). Retrieved from https://www.lexico.com/en/definition/globalization
2
Oxford. (2019). Export (Definition). Retrieved from https://www.lexico.com/en/definition/export
3
Smith, Nicola. (2013, August 1). Liberalization. Political Science segment. Retrieved from https://www.britannica.com/topic/liberalization
4 Oxford. (2019). Import (Definition). https://www.lexico.com/en/definition/import
5 Zaragosa, E.C., Pagdilao, C.R. and Moreno, E.P. (2004). Overview of the small pelagic fisheries. In DA-BFAR. In turbulent seas: The status

of Philippine marine fisheries. Coastal Resource Management Project (CRMP), Cebu City, Philippines. p. 33-35 of 378.
trade or keeping fish alive on aquaria as you shop them for food also followed on 1999 with
demand from Hong Kong, Taiwan and China. 6 Examples of live reef food fish are groupers
(lapu-lapu), wrasse (mameng), rabbitfish (samaral) and lobster among others. Aquarium fish
or its ornamental trade started on 1950s but was just recently being documented.7 By the
way, live food fish and aquarium fish almost has the same method of collection from the
wild.

To give a background on fisheries, I hereby present its elements in order to provide a

setting. Its status in relation to import or export potential and other concerns are
emphasized in the table below by indicative check and colors to facilitate quick
understanding.

Potential
Elements of Fisheries No Prohibited/ Remarks
Export Import
demand Regulated
1. Fishery resources
a. Fishes (tuna, other live    Allowed in big quantities;
fishes, aquarium fishes, Some being regulated
galunggong, etc.)
b. Marine mammals  International Law
c. Plants (seaweeds, etc.)   Seaweed, some are
regulated under
Convention on
International Trade of
Endangered Species
(CITES)
d. Non-living (corals, giant  Fisheries Law; also CITES
clams, etc.)
2. Social Aspect
a. Fishers  Local
b. Fishery Graduates  Middle East, Others
c. Researchers/   Exchange, Foreign aids
Consultants
3. Materials used in fisheries
a. Boat (also include  Motors of commercial
engines, sonars, fish fishing boats imported

6
Barber C. and Pratt, V. (1997). Sullied seas: Strategies for combating cyanide fishing in Southeast Asia and beyond. World Resources
Institute Report, 64 p. Washington, DC, USA.
7 Ochavillo D., Hodgson, G., Shuman, C. and Ruz, R. (2004). Status of the Philippine marine aquarium fish trade. In turbulent seas: The

status of Philippine marine fisheries. Coastal Resource Management Project (CRMP), Cebu City, Philippines. p. 60-64 of 378.
 Potential
Elements of Fisheries No Prohibited/ Remarks
Export Import
demand Regulated
finders, other fishing from Japan9
paraphernalia8)
b. Post harvest materials  Imported cans since 1986;
(cannery, etc.)
4. Fishing area (water)  Territory-based
5. Fishery Laws    RA 10654, Fisheries
Administrative Order
(FAO), Signatories to
International Agreements

The present state of globalization in Philippine fisheries has been derived from the
2018 Annual Philippine Fisheries Profile, which identifies export and import as one of the
three significant data that is included in annual statistical publication. The country is an
exporter as well as importer of fish and fishery products. According to the 2018 data, the
fisheries contribution to the Philippines Gross Domestic Products (GDP) is 1.2% and 1.3% at
current and constant prices, respectively10. A comparison of exports and imports for 2017
and 2018 is presented in the table below. The balance of trade for both 2017 and 2018 is
negative in terms of quantity, but positive in terms of value. Note that imports not only
comprised of fishery products but also of raw materials for aquaculture – prawn feeds and
flour, meals and pellets.

2018 2017
Trade Quantity FOB* Value Quantity FOB Value
(MT) (P M) ($ M) (MT) (P M) ($ M)
Fishery Exports 464,248 83,907 1,583 478,206 62,855 1,240
Fishery Imports 515,905 35,373 673 532,843 30,995 618
Trade Balance (51,657) 48,534 911 (54,636) 31,860 622
* FOB – Free on Board. FOB Value refers to value of goods.

Exports

8
Green, S.J., White, A.T., Flores, J.O., Carreon III, M.F. and Sia, A.E. (2003). Philippine fisheries in crisis: A framework for management.
CRMP, Cebu City, Philippines. p. 36 of 77.
9 Aguilar G.D. (2004). Philippine fishing boats. In DA-BFAR. In turbulent seas: The status of Philippine marine fisheries. CRMP, Cebu City,

Philippines. p. 119 of 378.

10 BFAR. (2019). Philippine Fisheries Profile 2018. BFAR, Philippines. 72 pp.
 As per 2018 fisheries profile11, the top three (3) fisheries export commodities of the
country are tuna, seaweeds and crabs. Major markets for tuna are Spain, Germany and UK
Great Britain. Seaweeds, in its processed form called carrageenan, are exported to USA,
China, Belgium and Mexico. Shrimps and prawns, on the other hand, are exported to Japan,
USA and Korea.

FOB Value
Commodity/Kind Percent (%) Contribution Rank
('000 $)
1. Tuna 491,907 49.9% 1
2. Seaweeds 207,481 21.0% 2
3. Shrimps/Prawns (hipon, sugpo) 45,869 4.6% 4
4. Crabs/crabs fat & crab meat 134,604 13.6% 3
5. Octopus (pugita) 37,749 3.8% 5
6. Grouper (lapu-lapu) 31,432 3.2% 6
7. Squid and cuttlefish (pusit) 25,073 2.5% 7
8. Ornamental Fish (aquarium), live 5,610 0.6% 9
9. Round scad (galunggong) 119 0.0% 10
10. Sea Cucumber (balat) 6,706 0.7% 8
Total major commodities 986,550 100.0%
Total of other commodities 596,599
Grand Total 1,583,149

Imports

Meanwhile, imports are limited to a number of fisheries commodity namely tuna,

mackerel and sardines, that is in the form of fresh, chilled or frozen.12 This is for fish
processing plants to meet local demand for raw materials.13 Inputs such as feeds to support
fishpond operation or the aquaculture sector comprised the remaining imports.

Commodity/Kind CIF* Value

1. Fresh/Chilled/Frozen Fish
a. Tuna 240,768
b. Mackerel 127,370
c. Sardines 7,032
2. Prawn feeds 12,112
3. Flour, meals & pellets 13,501

11
BFAR. (2019). Philippine Fisheries Profile 2018. BFAR, Philippines. p. 52 of 72.
12 BFAR. (2019). Philippine Fisheries Profile 2018. BFAR, Philippines. p. 59 of 72.
13 Espejo-Hermes J. (2004). Trends and Status of Fish Processing Technology. In DA-BFAR. In turbulent seas: The status of Philippine marine

fisheries. CRMP, Cebu City, Philippines. p. 122 of 378.

 Commodity/Kind CIF* Value
Total major imports 400,783
Other commodities 271,842
Grand Total 672,625

* CIF – Cost, Insurance and Freight – actual value of the goods when shipped-

Recent challenge on imports on fisheries is that of round scads or ‘galunggong’.

Galunggong fish catch was observed to consistently decrease from 2007 to 2017. This posed
a threat as price of galunggong, considered to be the Filipino’s poor man’s fish, increased
making them less affordable especially to the low income earners. An immediate action of
the government is the importation of galunggong which started September 2018 and ended
April 2019 where its season comes in. For long term action, BFAR called for and conducted a
National Summit on galunggong last January 2019 to address this concern.

Opportunities, Threats and Responses

Elements of the fisheries sector from the previous table have been evaluated with
regards to the opportunities and threats on globalization in fisheries they present. Response
of BFAR through its target and available services hope to take advantage of the
opportunities and address the threats.

Opportunities Threats Responses

Fishery Resources Fishery Resources Fishery Resources
 Export demand for fish and  Reduces  Immediate processing of
fisheries products - tuna, availability and exports permits by BFAR;
seaweeds, shrimps/prawns, affordability of
others (check fisheries profile), products for  To address dwindling
domestic sale14; domestic fish supply, the
 Available large and consistent following programs are
supply of fish and fishery  Depletion of the implemented:
products – tuna, seaweeds, brown seaweed  Support the
shrimps/prawns, others, that Sargassum spp. establishment and
meet export quality standards; In bays, monitoring of fish
thereby, sanctuary,
 Approved importation order for reducing source  Fishery law
certain fish species such as of food of fish enforcement to
galunggong to address food affecting combat illegal and
security of fish as affordable fisheries destructive fishing,

14 Espejo-Hermes J. (2004). Trends and Status of Fish Processing Technology. In DA-BFAR. In turbulent seas: The status of Philippine marine
fisheries. CRMP, Cebu City, Philippines. p.112 of 378.
 Opportunities Threats Responses
protein source (chk FishFiles productivity  Establishment of 12
data) Fisheries Management
 Fish Area (FMA) across the
Social Aspect importation is a country, starting this
 Export demand for fishery short-term 2019 as per FAO 263.
graduates to work on large solution to
aquaculture farms in the Middle dwindling  Regulations are imposed
East domestic fish on:
supply15 as in  Aquarium fishing and
 Export demand for fishery the case of live reef food fish
researchers as fellows and galunggong; regulated by the BFAR
consultants after pursuing PhD in Fisheries Inspection, and
Japan and other countries  Aquarium Quarantine Section
fishing while for violators,
 Imported consultants provide decreases stock apprehension by BFAR
exchange of information, of aquarium law enforcers from
capacitating local consultants in fishes in the source of fishing at sea
foreign assisted projects. wild, destroys and importation points
coral reef at airport and port
Fishing area habitat and terminals
 Exclusive use of open sea and other marine
municipal water to Filipino life during its  Implementation of FAO
fishers, thereby no competition collection 250-1 Regulating
and simplifies fisheries Collection of the
management that is shared by  Live reef food seaweed Sargassum
BFAR and LGU fish (grouper,
etc.) may led to  Implementation of
 Vast commercial fishing area in overexploitatio CITES for other fishery
the Philippine Rise considered as n, depletion of products with
tuna highway located at the stocks, fishery corresponding
Pacific Ocean collapse and export/import permits
serious to be secured from
Materials used in fisheries ecological BFAR prior to any
 Imported engines from Japan consequences16 transport
enables reliable Commercial
Fishing operation with promising Fishing area  For any fishery products
large fish catches  Poaching of being shipped through
foreign fishing land, water and sea,
 Imported cans support fish vessels such as Local Transport Permit
canning production making fish Chinese and (LTP) are required and

15
Pestaño-Smith R. (2004). Challenging the status quo of marine capture fisheries management: The need for public education and policy
advocacy programs. In DA-BFAR. In turbulent seas: The status of Philippine marine fisheries. CRMP, Cebu City, Philippines. p. 260 of 378.
16 Mamauag, S. (2004). The Live Reef Food Fish Trade in the Philippines. In DA-BFAR. In turbulent seas: The status of Philippine marine

fisheries. CRMP, Cebu City, Philippines. p. 53 of 378.

 Opportunities Threats Responses
affordable, thereby contributing Vietnamese in can be secured from
to food security and reduce international BFAR
spoilage of excess fish catch disputed areas
but is part of Fishing area
Fishery Laws the Philippines  IEC on fishers for:
 Export and import regulations are Exclusive  IUU fishing
in place, thereby putting a Economic Zone  Regulations such as
control and protection of fishery (EEZ) renewing fishery license
market and supporting
documents every three
 Information and Education years, otherwise they
Campaign (IEC) conducted from will be caught
time to time to promote committing violation
compliance and deterrence of
Illegal, Unregistered and
Unregulated (IUU) fishing

Conclusion

Philippine fisheries is one of the sectors that accepted globalization since 1986. The
country have benefited in terms of value where exports of fishery products outweigh
import. Globalization generated a lot of opportunities and inevitable threats arose as
observed by researchers over the years and is being noted by BFAR. Responses were made
through consultation and appropriate fishery laws are put in place to address threats as well
as take advantage of opportunities. Economic situation may change from time to time with
regards to prices of fish, being one of source of protein among Filipinos. Ecological situation
like the galunggong supply takes a bit longer time to change. Being knowledgeable of the
situation at a deeper level, that is, considering economic dynamics will be the next level
challenge. Government has to carefully make decisions considering the end user and the
fishers, keeping a balance on both for the fisheries sector to attain food security while being
sustainable. #