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MOROCCAN FISHERIES A SUPPLY OVERVIEW

by

Hmida Atmani
Economiste de pêche, INRH
Casablanca, Maroc

1. INTRODUCTION

The opening of the Southern ports and the subsequent transfer of the pelagic fisheries far away from traditional
processing centres; the obligation of the high seas fleet to unload its catch in the national ports instead of Las
Palmas where it has been based since its creation; and recently the withdrawal of the European fleet from the
national waters, were the most outstanding events in the Moroccan fishery in the last decade.

These events have not only reshaped the landing map, but were also the major forces behind the changes that
marketing and distribution and trade sectors are undergoing. The contribution of these fisheries to the national
economy is important as source of foreign exchange and income to fishermen, but its contribution to the
national food security is very modest in relation to the importance of the overall landings and their variety on
one hand, and the deficit in the sources of protein needed to improve the diet of the population on the other
hand.

The national consumption of fish per capita is still very low, although one of the main objectives of fisheries
development is to contribute to improve the nutritional status of the population.

In this paper, the main characteristics of the Moroccan fisheries with regards to access to resources, the
importance of landings and their main uses, will be presented. Particular attention will be given to the structure
of the national fish consumption and to the evolution of fish exports and the resulting national benefits. This
will allow an estimate of the contribution of fisheries to national food security, and to explore the potential
margin to optimise this supply within a framework of sustainable development of fisheries and the
conservation of the resource base as the main prerequisite.

2. FISHERIES SECTOR

2.1 Background Information

Moroccan coasts are fringed in the North by the Mediterranean Sea and the West by the Atlantic Ocean. The
continental shelf is characterised by the presence of up-welling, which makes the coastal waters extremely rich
in nutritive salts and high biological productivity; and by the wind driving water away from the coasts so that it
may be replaced by richer waters from deeper down. The rich feeding grounds create potential for fishing
stress and competition is the area for both pelagic and demersal resources.

The objectives assigned to the fishery sector were (1) to contribute to nutritional status of the population by
increasing the fish consumption, (2) to improve the balance of payments by fish exports for hard currencies
and (3) to provide employment. In this framework, investments have been made to set up new infrastructure, to
survey new markets, to train the workforce and to institute reforms.

The fishery sector is playing an increasingly important role in the Moroccan economy, realizing a gross value
of fishery outputs 7 761 Million DH, employing about 200 000 people and supplying about 25 percent of
animal protein intake in the country. The sector contributes approximately two percent of the GDP and has a
leading rank in exports.
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2.2 State of the Fisheries

The recent evolution of the fishery sector has been marked by three interesting phenomena.

1) The 1980s witnessed the opening of the ports of Tan Tan and Laayoun in the South, which gave a new
breath to the fisheries, mostly the pelagic fishery, providing abundant resources for the processing
industry.
2) The 1990s were characterised by the repatriation of the national high seas fleet and the obligation to unload
the catches in the national ports instead of Las Palmas, where it had been based for two decades.
Consequently the cephalopod fishery, the most important activity of this fleet, is enjoying growth.
3) The withdrawal of the European fleet from the national waters, which gave the country more freedom to
manage these fisheries within a framework of optimising the national benefits from their exploitation.

Fishing in Morocco is based on nearly 65 species of fish, cephalopods and crustaceans. These species are
generally divided into the following groups: merlucccidae: 2 species, sparids: 15 species, cephalopds:
5 species, other ground fish: 20 species, shrimp: 3 species, crustaceans: 5 species, and finally sardine and other
pelagics: 4 species.

Landings in 2001 were 117 075 tonnes of ground fish, 870 134 tonnes of pelagics and 104 795 tonnes of
cephalopods. About 78 percent of these landings consist of five pelagic species and nearly 70 percent are made
up of one species, the sardine, which constitutes the mainstay of fish industry in Morocco. Some 70 percent are
used as raw materials processed products. In terms of value, cephalopod fishery produced most income
because of the high value of this product when exported.

Four main fishing areas can be distinguished: the Mediterranean area, the North Atlantic area, the Centre South
Atlantic area and the South Atlantic area. Each harvest area exhibits different characteristics of production and
distribution.

2.3 Domestic Production

Fleet Structure

The fleet can be divided into three categories: the coastal fleet, the small-scale fleet and the high seas fleet.
1) The coastal Fleet consists of about 2 500 vessels of which 1 814 were operational in 2001. The
purseiners dominate in landings, because of the importance of the canning industry and the
abundance of the sardine resource in the national waters. The average age, gross tonnage and
power are respectively of 20 years, 54 GRT and 260 CV. The structure of the fleet with regard to
age and GRT shows that the vessels built in the seventies are the largest and the most equipped,
owing to the benefit of the investment incentives offered by the government, which may reach
35 percent of the purchasing price of the vessel.

In terms of value, however, the trawlers and the long-liners contribute more substantially as they produce more
high value species. Their number increased during the last decade at least by 30 percent and their GRT by
40 percent.
2) Data on small-scale fisheries are not precise, but it is generally believed that the number of
canoes is steadily increasing because of their low investment. Surveys have estimated their
number at about 5 000 units operated by some 45 000 subsidence fishermen.
3) The trend in the active high seas fleet is impressive. From 235 units of a total capacity of
76 636 GRT in 1987, the number increased to 446 units with the production capacity almost
doubled (144 369 GRT). This was the result mainly of
(i) the significant public financial assistance to investors in this fishery;
(ii) an abundant resource; and
(iii) a very good ex-vessel price.
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In fact, the expansion of the market along with the promise of an extremely productive fishing area made the
investment response the private sector greater than expected. It is to be noted that this fleet is highly capital
intensive.

Landings

The marine fisheries of Morocco consists of two distinguished sectors, i.e., (i) the high seas fishery which is
oriented mostly towards fishing and exporting high value species and (ii) coastal fishery whose products are
destined to the fresh consumption and for supplying an important processing industry. Altogether they catch
over one million tonnes yearly. Table 1 summarizes the composition of domestic landings over recent years.

TABLE 1: Quantity and Value of Landings, 1996-2001

OVERALL LANDINGS (tonnes)

1996 1997 1998 1999 2000 2001

Coastal Fishery 525 022 661 646 607 129 622 160 765 241 978 519
Demersal 73 933 78 040 88 419 107 026 138 300 117 075
Pelagics 451 089 583 606 518 710 515 134 626 941 861 444

high seas fishery 90 915 111 493 92 038 125 007 133 510 122 485
cephalopods and white fish 72 625 68 127 80 995 93 028 121 614 104 795
Shrimp 5 010 5 188 7 050 8 561 8 606 8 690
pelagics 8 240 34 157 19 958 0 9 000
refrigerated fish 5 040 4 021 3 993 3 460 3 290

Activities 9 318 10 051 9 914 10 892 14 588 10 494

Seaweed 7 625 8 094 7 049 8 525 12 068 7 000
Aquaculture 1 241 1 183 969 1 160 870 787
Coral 4 3 2 5 8 7
Tuna 448 771 1 894 1 202 1 642 2 700

Total: 625 255 783 190 709 081 758 059 913 339 1 111 498

OVERALL LANDINGS ( million DH)

1996 1997 1998 1999 2000 2001

Coastal Fishery 1 547 1 755 1 680 1 818 2 078 2 545
Demersal 843 905 887 968 1 160 1 412
Pelagics 704 850 793 850 918 1 133

High seas fishery 3 292 2 917 2 942 2 888 4 603 4 859

Cephalopods and white fish 2 857 2 441 2 579 2 492 4 129 4 401
Shrimp 284 274 298 280 401 452
Pelagics 59 131 0 48 0 6
Refrigerated fish 92 71 65 68 73 0
Littoral activities 203 193 186 178 258 357
Seaweed 79 62 62 82 113 63
Aquaculture 88 65 52 43 41 25
Coral 4 4 2 3 6 5
Tuna 32 62 70 50 98 264

Total: 5 042 4 865 4 808 4 884 6 939 7 761

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The High Seas Fishery
The high seas fishery has developed largely as a result of the establishment of the EEZ. It has enjoyed
unprecedented growth and prosperity during the last three decades to become by far the most important type of
fishery in terms of value. In fact, the success of this fishery may be ascribed to three factors:
i) an abundant resource generated by the over-exploitation of the sparid species freeing the
carrying capacity for the blooming of cephalopod species;
ii) the adoption of sophisticated gear, freezing equipment and larger vessels capable of
ranging the Exclusive Economic Zone; and
iii) the high exports the fishery is enjoying.

The production, with an average of about 100 000 tonnes per year, stood at 122 485 tonnes in 2001, a small
decrease of 10 percent under the 133 510 produced one year before but a 34 percent over the 91 438 tonnes
landed in 1998. These landings consist mostly of cephalopods (octopus, cuttlefish and squid), sparids,
(85 percent) and pelagics (eight percent). The crustaceans represent only eight percent in volume, but almost
10 percent in value.

Because of the size of the vessels and fishing areas located in the south, the entire production is landed in
Agadir and Tan Tan - ports well equipped to receive this type of vessels. Since fishing trips last generally about
60 days, the product is chilled on board.

Figure 1: STRUCTURE OF THE HIGH SEAS CATCH 2001

Pelagic Fish
Shrimp 7%
7% Octopus
38%
White fish
21%

Squid
Cuttlefish
6%
21%

The Coastal Fishery

The harvest of this fishery beats the record in 2001, attaining for the first time more than one million tonnes.
The overall volume has been stable over the last decade. The opening of the southern ports was the main factor
behind the take off the fishery. The pelagic species comprise more than 85 percent of the total coastal landings.

The major species harvested in 2001 were sardine (763 689 tonnes), mackerel (25 890 tonnes), horse mackerel
(12 268 tonnes) which with anchovy (47 393 tonnes), account for almost 83 percent of the overall landing in
quantity. In value, however, these species represent only 39 percent of the total for the same year, because of
their low price.

Landings of white fish have remained relatively stable over the last years. The inability to expand is partially
explained by the fact that the stocks are heavily fished. Demersals comprise a wide range of species, consisting
of merlucidae, sea bream, red mullet sole, turbot, ray, etc. They are high priced species, which do not constitute
a major proportion of domestic fish supply.
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Figure 2: SHARE OF SARDINE IN PELAGIC LANDINGS

0.90
0.88
0.86
0.84
0.82
0.80
0.78
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Spatial and Temporal Distribution of Landings

The most important catches are currently landed in Laayoun. This is due to pelagics migrating southward. This
port and Tan Tan, receive around 80 percent of the total national landings and their importance is steadily
increasing.

The fishing area from Safi to Agadir, which supported the largest fishery until the seventies, witnessed a severe
drop in resource abundance, which occurred in the early eighties. Consequently, the coastal fleet transferred its
activity southward, and the production in the area has been on the decline for nearly 10 years. The downward
trend over the last decade made the supply of the canning industry in the area a real issue.

The overall landings off the Moroccan coast have showed a big dynamism mostly in the Southern ports and the
landings in the South alleviate the shortfall of supply in the North. The problem of supplying the canneries in
the North has been resolved by imports from the Southern ports of Tan Tan and Layoun, replacing shortfalls in
local supply, but at increased prices due to the extra costs of transportation. In the Northern Atlantic and the
Mediterranean areas, the landings are almost stable.

Moreover, the pattern of landings is also characterised by seasonality, more than 70 percent of the production
occurs between July and December (Figure 3).

F ig u r e 3 : M O N T H L Y P E L A G IC S A N D D E M E R S A L S L A N D IN G S 2 0 0 1

160000

140000

120000

100000

80000

60000

40000

20000

0
1 2 3 4 5 6 7 8 9 10 11 12

P e la g ic s
D e m e r s a ls

2.4 Resource Potentials and Future Prospects

The main demersal fisheries are fully exploited and are therefore producing catches that have reached or are
very close to their maximum limit, with no room expected for further expansion. Moreover, there is an
increasing likelihood that catches might decrease if remedial action is not undertaken to reduce or suppress
over-fishing, particularly in the Mediterranean Sea. However, the pull out of the foreign fleet from the national
waters may improve the performance of this fishery, but in short term a redeployment of the fleet along with
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the investment in bigger trawlers may enable the exploitation of the further fishing grounds still
under-exploited, and the development of new fisheries in the South.

The stocks of pelagics species are distributed all along the coast of Morocco and their availability is important,
especially in Tan Tan and the Southern areas. Two serious problems are now facing the industry: 1) the
misallocation of the fishing grounds and canneries and 2) the old age of the fleet and the lack of repairs. That
being so, substantial investments are needed for modernisation.

Concerning Cephalopod resources, it is estimated that the resource has reached its maximum yield level.
Consequently, a series of management measures have been implemented in order to rebuild the stock. The
most important measures are two months closed season, corresponding to the spawning season, with the
prospect of extending it to three months and a legal minimum size restriction. The pull out of the European
fleet from the national waters, has reduced considerably the fishing stress on these resources.

2.5 Markets and Facilities

Fish Halls
The most important outlet for demersal fish is provided through auctions. The fish auctions are held daily in the
22 fish halls according to the local conditions of each port, but generally in early morning. Virtually, all the
ports are equipped with such facilities. The fish hall is a public institution empowered to enforce compulsory
auction at all locations considered as fish wholesale markets. The auction is carried out at stipulated times
according to the local conditions of each port.

The floor price for bidding is determined by the auctioneer himself. An ad valorem commission of four percent
is generally charged for each transaction. An intersectional comparison of the first sale pattern shows a
difference in the system of auction in the Mediterranean and the Atlantic ports. In the Atlantic ports, the
tradition is that fish is sold at the highest offer according to the system of increasing bidding, while it is the
opposite in the Mediterranean ports where it is the high price which constitutes the basis for the auction.

There are, however, some exceptions to this rule:

1) On the beach sites where small-scale fleet is landing, the transaction between the fishermen and the
fishmonger may be an outright sale.
2) Frozen fish is not sold at the auction. After some time in the freezing facilities or on board of vessels, the
dealers sell fish to their clients.
3) The pelagics destined for processing industry. As it will be seen later in more details, these species landed
in the Southern ports are sold through the CAPI.

The CAPI
The CAPI is the public body entitled to organise the first sale of pelagic species destined for the processing
industry. It is the major means of exchange between the pelagic catching and processing sectors. Sales are
based on samples. Prices depend on the fish quality. Good quality is usually processed into canned products
while the poor quality moves to fishmeal.

The sale of the sardine represents an exception to the normal process whereby prices are determined by auction.
Under this arrangement, sardines destined to the processing industry are determined at the outset of the fishing
season. The price of sardines destined to reduction may be subject to seasonal adjustments. As regards to the
other pelagic species, the law fixes the floor price, which represents the basis for auction bidding.

Ports and shore equipment

Catches are landed in 28 ports and more than 170 landing sites for small-scale fishery along the coast. The
most important ports are Tan Tan, Laayoun, Agadir, Safi of the Atlantic coast and Nador Tangier Hoceima on
the Mediterranean cost.

As a result of the developments of the fisheries in the last two decades, the ports South of Agadir have drawn a
particular attention to prepare them to receive the oceanic fleet, which was operating from Las Palmas for at
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least two decades. These ports have a dredged depth of six meters and are suitable for large fishing vessels.
Other facilities available are well equipped workshops, ice plants and cold stores.

3. FISH MARKETING AND CONSUMPTION

3.1 Market Supply and Demand

With the repatriation of the high seas fleet, the cephalopods emerged as the leading Moroccan fishery with
respect to value. Since the catch is entirely exported, these landings are not dealt with in this section. The
evolution and structure of these landings will however be analysed in detail as an important component of the
international trade.

In relative terms, the structure of the utilization of coastal production has remained almost stable over the last
decade, indicating the importance of the processing activities, which absorbed about 70 percent of the total
production. Over the last years, the use of the production has been as follows; the demersal species are
generally sold as fresh mostly in the national market. An export market is however expanding, competing with
the domestic demand. The outstanding species are sea bass, sea bream, mullet and hake.

Besides constituting an important component of fresh consumption, the pelagic species are processed
primarily into three major product forms, namely:
i) chilled or frozen;
ii) canned; or
iii) fishmeal.

Annually more than 80 percent of the total pelagic landings undergo some form of industrial treatment. This
rate knows a great difference from the Mediterranean and the north Atlantic coasts where almost all the
landings are destined for fresh consumption. In the south, the bulk of catch is destined for processing industry.

The patterns vary also with respect to the species composition. If the sardine continues to constitute the
mainstay of fish processing, other species such as anchovy and mackerel are now highly demanded for fresh
consumption and therefore, give higher returns. Furthermore, due to problems in knowing the final destination
of fish bought by traders in Tan Tan, the figures should be treated with caution. In fact, this portion for a large
part is sold not to final consumption as indicated by the official statistics, but to the canning industry in the
North for processing.

Allocation of Coastal landings

1990- 2001

0.6

0.4

0.2

0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Consum ption canning freezing Reduction

The utilization structure of pelagic species differs even within the group of Southern ports, well known for
their processing infrastructure. In the ports of traditional areas like Safi, Essaouira and Agadir, the demand
comes chiefly from the canning sector and it is characterised by the high employment and value added
provided and by the good ex-vessel price obtained by the fishermen.
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3.2 Handling and Transportation Patterns

The handling of fish after capture and before processing influences greatly the quality of final product. The
pelagic fish is transported in bulk without ice. However, since the distance between fishing grounds and
landing places is only a few hours, the raw material generally arrives in a suitable form for canning. When fish
is destined for reduction, the pumping system from the vessel to the truck is generally used. Fish destined for
canning is transported in wooden or plastic boxes. The portion destined to fresh consumption receives better
handling and it is boxed and iced immediately after landing.

The canning industry is considering assisting fleet owners to introduce refrigeration on board of sardine fishing
vessels. In fact, the modernisation of the fishing fleet needs investments and so does the restructuring of the
present system of fishing and marketing. Generally, demersals are iced on board at sea to preserve their
freshness. Re-icing is done on shore at collection centres, where fish is sorted and packed in wooden boxes,
lined with plastic film to keep the ice intact. Buyers ice fish, using 3 to 3.5 kg of ice for a box of 150 kg of fish.

The mode of transport varies with respect to species and distance involved. Trucks carrying 8 to 10 tonnes are
the most common mode of distribution used. Trucks hauling refrigerated vans of carrying capacity of 20 to 30
tonnes were also recently introduced. Trucking offers the flexible and relatively cheap solution for getting fish
to markets over short and even longer distances. The export trade of products by air becomes an important
business. However, since the airfreight costs are very high, the volume of fish to be exported is limited to high
value species such as shrimp and lobster.

3.3 Consumer Preferences and Consumption Habits

Landings that were not exported or transformed, and which were assumed to be destined to the national market,
amounted to 267 739 tonnes in 2001. Judging by this data, the local market for fish has grown steadily in the
last decade from 183 022 tonnes in 1992, to 250 000 tonnes in 2001 - an increase at an average of five percent
per year. It accounts for 27 percent of the total coastal fishery landings.

These figures do not include the part of the production, which was landed on the beach sites by small scale
fishery and sold directly to the final consumers. This amount is unknown but it constitutes a considerable
quantity. A good estimate of this part could be 10 percent of the total consumption. Moreover, an important
part of white fish landed in the Moroccan ports, is reckoned as destined for fresh consumption, but in fact it is
exported.

Allowing these variations the national consumption may be calculated at about 260 000 tonnes as follows:
Pelagic species: 150 664 tonnes
Demersal species: 94 480 tonnes
Others: 1 000 tonnes
Total: 250 000 tonnes (rounded)

Landings destined for fresh consumption, are made up of almost the entire landings in the Mediterranean area
and the North of the Atlantic coasts. The south Atlantic coast, where the pelagics are destined for canning and
fishmeal industry, only 25-30 percent of landings account for the part sent to fresh consumption. This portion
is however, growing for the following reasons:
1) The high price of the white fish; the consumption of the pelagics is developing as a substitute.
2) Fresh consumption provides generally higher prices than the processing industry so that in spite of the
official fixed prices, fishermen sell their catch dearer to the fresh fish traders, especially in the season of
short fish supply. Moreover the price of fish destined to fresh consumption formed by auction, is very
elastic to the supply, playing in favour of the fishermen compared to fish destined to the processing
industry whose price is fixed in advance of the fishing season.

With an estimated population of 29 million inhabitants, the derived annual per capita consumption is then
8.6 kg, compared to 14 kg of meat and five kg of poultry. Approximately half of this quantity refers to pelagics,
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and the rest mainly to demersals. Although relatively low, this figure conveys the considerable progress in fish
consumption and the change in the eating habits of the population.

From 1991 to 2001, the per capita consumption of fish has grown at an average of 3.7 percent. The evolution of
the per capita consumption of fish is the result of the combination of several factors, mostly; increased
urbanisation, development of appropriate transportation means and refrigerating facilities, progressive
monetarization of the economy; development of a middle class with higher purchasing power; and the steady
increase in the price of red meat.

Fish consumption patterns vary throughout the country due to the traditional eating habits influenced, in turn,
by history and geography. Fish is a very popular meal in the Mediterranean area and Northern Atlantic area
where the production is entirely used for human consumption. Very often, the local catch is not sufficient and
fish is brought from the Southern ports to fill the supply gap. Moreover, consumption is higher in the great
cities where there is greater purchasing power. The low consumption in the countryside is due also to structural
obstacles that are sometimes discouraging, including inadequate road infrastructures and refrigerated facilities.
The preference of the consumer goes primarily towards fresh fish. The experience of the marketing of frozen
fish in inland areas did not have the expected success.

3.4 Packaging/ Labelling

Packaging is one of the major problems the processing industry is facing. It not only accounts for a very high
percentage in the cost structure, but also the consuming centres are changing their regulations and
requirements related to the materials used.

The canned products are packed in three-piece can and in the two piece ring pull. Several other sizes are used,
with ¼ club 30 of 125 grams as the most popular. Labelling of product should include the following
information: date of production, trade name and standard number of product, net weight, ingredients, storage
condition and expiry date.

3.5 Retailing / Wholesaling/ Catering

Wholesalers buy their fish at the auction and perform the services of assembling and storage before distributing
it by lorry or van to their customers, the retailers. They are also supplying selected customers such as hotels and
restaurants, or exporting it. Large quantities are also sent to the auction hall of Casablanca.

The traders are usually small enterprises working for themselves or as representatives of wholesalers located in
Casablanca. They generally purchase fish for resale, without further processing beyond sorting grading or
re-icing. A few dealers bypass the wholesalers and sell directly at the retail level. Products may change
ownership many times before reaching the final consumer. To feed their plants in raw material, the processors
acquire their fish through the CAPI and ensure its transportation to the processing facilities.

The fish retailers at the end of the chain are private enterprises. They are normally working every day,
generally in the morning. Owing to the development of the conservation system, fish of adequate quality is
now accessible to urban population on a regular basis.

Generally, all the cities and the villages on the coastal areas have their own fish market. Furthermore, the
remote districts are served by special shops. In the inland, markets serve villages once a week. Some markets
may exclusively sell fish, but the normal practice is that the fish sale point is integrated in large grocery
markets.

There were some experiences on distribution of frozen fish. Some companies with sophisticated equipment,
such as ASMAK and PROGEL, are specialized in this business. These companies have their own stalls
throughout the country, 120 retail outlets were open in 1988. Their experience did not seem to have met the
expected success, although the distribution vans facilitated the marketing of frozen fish. PROGEL was the last
company active in this field reducing its activities to big cities. The lack of sufficient supply on a regular basis,
rather than potential demand, obliged the company to end its activities
 - 172 -
With regard to the catering fish market, the most important customers are hospitals, the military and schools.
At least one fishmeal per week is served in these institutions. The restaurants are divided among those, which
offers fish as a variety in their menus and those, which are specialised in fish exclusively. In the coastal areas,
the better restaurants offer a range of fish dishes in their menus. The most important varieties are demersals and
crustaceans. The demand of these varieties is growing in line with the development of tourism.

3.6 Fish Processing and Value Added

The canning industry

Structure of the processing capacities
x The canning industry for fish products goes back many years. The sector has gone through
three periods of increased activity. The industry began developing in the thirties and expanded
progressively after World War II. The number of plants in activity was 200 units in the early
fifties. The concentration began in the sixties, the number shrinking to 84 units with a total
installed capacity of 1 500 tonnes per day, or 375 000 tonnes per year of 250 days. Only 39 of
these are currently operational. With very few exceptions where some companies are at the same
time ship-owners and canneries representatives, the canning industry is neither vertically nor
horizontally integrated.
x The plants are clustered in the Moroccan Centre Atlantic and are heavily concentrated in the
Safi – Agadir area, where most of the purseseine fleet unloaded sardine until the eighties. Average
plant capacity is 40 tonnes per day, ranging from 70 tonnes in the Southern ports to 20 tonnes per
day in the northern ports. This segment of the fishery is characterised by a high employment and
added value content in the production process.

Processing capacity and effective production

The present production capacity is in excess of real landings suitable for canning. The industry is said to work
at 30 percent of its full capacity. The under-utilization of the production capacity may be attributed to the
following major factors:

x Fluctuations in fish daily landings. When the raw material is at a low level, the canning plants
work on a rotation basis as during the low season; when there is glut of landings, a considerable
part of the catch goes to fishmeal.
x Poor raw material quality. The fish is transported in bulk, which affects the freshness of the
product; the loss rate is very high.
x Misallocation of processing industry capacity as compared to the spatial distribution of
landings. Until 1982, the area Safi-Agadir, where almost the entire processing capacity is located,
was the major producing zone for pelagic species. With the opening of the port of Tan Tan in
1982 and later that of Laayoun, the fleet transferred the major part of its effort southward, landing
their catch far away from the processing centres. Conversely, in Tan Tan and Laayoun few
processing plants are installed, and fishing effort increased and so did the landings. Therefore,
supplying the canning plants of the Safi- Agadir becomes a real issue.
x International economic environment. The canned product market did not expand in recent
years. In fact the demand from Europe, the main client, has been sluggish. A decrease in the price
by the Moroccan export did not have the expected results. Demand from African countries is less
remunerative and less stable. Furthermore, the problem of liquidity limits the development of
these markets. The American and the Middle East markets are developing, but very slowly.

Costs of production
Besides the problem of raw material supply, the industry is facing increasing costs.
x Price of raw materials. Increase in the official price of fish forced the industry to compete with
the market for fresh fish.
x Higher wages. The increase of labour costs, for a great part would be offset by increased
productivity.
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x Transportation rates. Landings far away from the ports where the canning industry is located
complicated supply of these plants. The problem has been partially solved by transporting sardine
from the Southern ports Tan Tan and Laayoun (respectively at 300 and 600 km), but this
constitutes extra costs.
x The weight of the depreciation and replacement. The industry had modernised its equipment
to improve its product quality, in order to meet the EEC requirements. This happened during a
devaluation of the national currency, which made the cost of the investment in imported
equipment very expensive.
x The cost of tin plate. This is the major burden on the canned fish producers and increased costs
endangered the profitability of processing activities. Tin makes up one third of the total product
cost, while the cost of fish itself accounts for roughly 20 percent of the overall processing costs.
x Other costs include filling materials, energy, labour, administration and overheads.

TABLE 2: CANNING COST STRUCTURE

Unit cost Total cost
percen
t
Sardines 24 kg 1.4 33.6 17.08
Ice 0.1 2.4 1.22
Transport 0.25 6 3.05
Oil 3.80kg 6.48 24.624 12.52
Labour 3 hours 9 27 13.73
Salt 5 kg 0.27 1.35 0.68
Energy 6 3.05
Tins 100 boxes 0.92 92 46.79
Packaging 1 3.7 3.7 1.88

Prospects of the canning industry

Increasing costs of the raw material and of other inputs coupled with fierce competition in the European market
required an improvement of quality. Several plants are engaged in expansion and modernization programs.
They have introduced new technologies to improve quality and reduce costs to be up to the international
standards. The modernization offers considerable advantages, but represents no small investment.
According to a recent report of the canning industry federation, 250 million DH were invested to install highly
mechanised canning lines in order to offer the advantage of a better quality product and high productivity,
compared to the traditional practices. Furthermore, credits were given to the ship-owners to modernise
handling on board of their vessels. All this may increase output above the present level and could also improve
marketing conditions.

4. FISHMEAL INDUSTRY

Fish catches moving into production of fishmeal, are estimated to be more than 0.5 million tonnes representing
about 60 percent of the total pelagic landings. Fishmeal is largely based on the reduction of four species of
pelagic fish: sardine, mackerel, horse mackerel and anchovy. It is also derived from the scraps remaining after
whole fish have been sent for other uses, and from whole fish that is not marketable for human consumption or
canning.

The fishmeal industry is considered a surplus industry, which depends to a large extent on the capacity of the
canning industry. It constitutes, some times, the sole outlet for landings especially in the following
circumstances:
i) excess of supply over the canning capacity;
ii) lack of sufficient freezing and refrigeration facilities;
 - 174 -
iii) bad quality of fish due to improper handling and transportation on board; and
iv) insufficient canning structures as in the case of Laayoun where more than 70 percent of the
production are destined for reduction though being of good quality.

The industry was, until recently, concentrated in the Safi-Agadir area. Only with the considerable landing in
Tan Tan and Laayoun, located in the south, a real expansion has taken place in this area – near these new
landing centres - over the last decade.

Traditionally fishmeal was exported to the European countries. This export has been suspended due to the
sharply growing demand in the domestic market, particularly for the formula used as chicken feed. The
fishmeal consumed in Morocco is used as a high protein supplement in animal feed, particularly for poultry.
The draught the country has known these last years in that the livestock is fed fishmeal instead of maize, also
enhances demand for the fishmeal. A dozen of firms are now specialized in the animal feed and can absorb the
entire national production.

The produced fishmeal varies in protein content. Three grades are recognized: the top grade with 65 percent
protein; second grade with over 50 percent protein and third grade over 45 percent. The price varies
consequently. Two factors are identified as being the main causes off these differences, mainly factory
conditions and raw material composition. In fact, the small plants use simple technology and produce low
quality meal, while the largest are equipped with modern technology capable of getting higher meal. As for
specific composition of the raw material, the fishmeal obtained from the sardines is more appreciated than that
derived from other species.

Conversely, the canning industry, where the cost of raw material represents less than 20 percent of the overall
costs, fish is the most important component in the cost structure to produce fishmeal, accounting for more than
60 percent of the total production costs.

FIGURE 5: FISH ALLOCATED TO REDUCTION 1990-2001

1200000
1000000
800000
600000
400000
200000
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Landings Fish Meal

5. OTHER PROCESSING FORMS

The salting industry is located in the north of the country – 32 plants are recorded. The production level
depends on the anchovy landings. This species is currently highly demanded in the domestic market in fresh
form, which posed a problem for feeding the salting plants. The tendency is to fill the shortage by imports.

6. FISH TRADE

6.1 Import

Morocco, being an important fish producer, imports very little. The imports are limited to very luxurious
products, such as smoked products and very valuable species.
 - 175 -
6.2 Export

Fish export has been steadily expanding in the last years to exceed the billion DH in 2000. Over the last three
years, foreign exchange earnings from marine products export have shown a remarkable growth, increasing by
32 percent in volume and 54 percent in value as against the Moroccan total exports.

Records from the OC estimated the total gross weight of fish (all species mixed up) exported in 2000 from
Morocco amounted to 318 652 tonnes for a value of more than one billion DH. A slight drop occurred,
however, in 2001 both in volume and value.

The structure of fish exports have changed substantially over the past two decades, indicating a growing share
of the crustaceans and molluscs, and a diminishing role of fishmeal and oil, while the export of canned
products witnessed a remarkable stagnation.

TABLE 3: AVEARGE PRICE BY PRODUCT BY REGION

Frozen Canned Fishmeal Fresh Salted Semi

Oil
CEU 37.77 24.27 5.34 31.69 21.16 25.78 45.32
OEC 19.56 22.60 5.28 113.18 12.88 55.21
Asia 40.49 26.54 9.49 103.92 146.50 83.00
M east 7.59 19.88 5.41 8.28 70.00
America 10.44 26.45 24.80 96.75 57.39
Africa 6.93 19.24 8.81 7.14 2.36 12.00
Magreb 13.30 15.77
Oceania 19.26 51.73

Crustaceans and molluscs

Crustaceans and molluscs emerged as the main exported commodities. Their share dominates in the export
trade of marine products in volume and value, and are accounting for about 63 percent in terms of value of the
overall marine product exports.

Octopus and cuttlefish from the high seas are destined almost entirely to the external market, with Japan as the
leading market. As for squid, about 48 percent are exported to Japan; the remaining is exported to the European
countries. Generally Spain constitutes the main outlet for squid landed by the coastal fleet, and Japan for that
landed by the high seas fleet. Together these two countries absorbed more than 80 percent of these species
landings.

Cephalopod prices vary according to the size and fluctuate in relation to the supply, and demand for any
particular size range at given time. There are 12 size rages for octopus, three for cuttlefish and three for squid.

Fresh and frozen fish

Fresh fish recorded also a slight increase compared to the previous year. Spain remains the principal market for
these species followed by France and Italy for frozen fish. Fish destined are washed, cleaned and graded for
size. Generally, no heading is carried out and only the larger fish is eviscerated. After cleaning, most of the fish
is packed in coated corrugated cardboard cartons of polyester boxes, which provide some insulation. These
varieties do not meet any problem for their marketing.

Processed fish
The pelagic fish industry is virtually completely geared towards exports. Only 10-15 percent of the national
production is sent to the domestic market.

During the campaign, the industry packed cartoons of canned sardines using several sizes with the most
popular is ¼ club 30 of 125 grams. This corresponds to 69 277 tonnes of final products in 2000 which, in turn
 - 176 -
is the equivalent of almost 100 thousand tonnes of processed fish. It should be noted that over this period
exports of canned fish have evolved in a margin of 10 percent. In 2000, 69 277 tonnes were exported.

Morocco’s canning exports depend heavily on the trade in canned sardine, directed chiefly towards European
countries, Africa, Middle East, America and Oceania, with the European as the leading import market. The
European countries accounted for more than 40 percent of the total canned product exports. This market is
definitely the largest and most lucrative one. Among these countries, France has remained the most important
buyer of Moroccan products, next came Africa which bought 37 percent in volume, but only 32 percent worth
of the total exports value.

The importance of fish meal has dropped during the 1990s because of the development of the domestic demand,
supporting a growing poultry industry. The trend is completely reversed the last three years and the exports of
the commodity are steadily growing to become the third after the canning and the frozen fish volume.

FIGURE 6: STRUCTURE OF MOROCCAN FISH EXPORT BY REGION 2001

Africa
8%
America
3%
M east
3%

Asia
21% EU
64%
Other EU
1%

7. CONCLUSION

Fishery landings more than doubled in 10 years. The growth is, however, mainly limited to low-value species,
highly variable stocks of pelagic fish, whereas the general demersal species have been fairly stable, if not in
decline over the years.

Although all the factors affecting the consumption level such as the price of meat and the urbanization of the
society, the development in consuming habits are developing in the sense to increase the consumption of fish
in Morocco, the national consumption per capita is still very low. The growing demand is hindered by a limited
demersal supply and an increasing and lucrative export sector, particularly of crustaceans and molluscs.
Consequently, fresh consumption is switching to low value pelagic fish for want of availability of white fish at
a reasonable price, and therefore providing tough competition for the processing industry for the same raw
material.

The international markets offer good prospects. The foreign demand for fresh and frozen fish and shellfish is
increasing because of the high disposable income in developed countries.

Cephalopods are not a popular consumption item among Moroccans. The domestic demand accounts for only
a very negligible proportion as the products are more expensive than ground fish. The prospective growth of
the national production market depends on the evolution of these export markets, but also on the state of the
resources.

Hence, international trade is a benefit and a drawback. If it is hindering an important contribution of the fishery
industry to the national food security, it helps however and in large measure, a large population of fishermen
and people involved in the industry to prosper. On the macro-economic level, the fish exports improve the
balance of trade.
 - 177 -
Main prerequisites for optimizing the contribution of the fishery to the national food security are:
x Management of the resource in order to ensure a sustainable harvest and supply for food for
domestic consumption and for earning of foreign exchange.
x The global vision of the marketing of the fishery. Investments should be done in storing,
transporting processing and financing and the quality of fish and consequently the net return from
its exploitation depend on all these links on the same equal footing.
x Restructuring of the processing industry and modernisation of the industrial fleet.
 - 178 -
THE IMPACT OF INTERNATIONAL FISH TRADE ON
FOOD SECURITY IN MOROCCO

by

Mohamed Naji
Professor, Fisheries Department
Institut Agronomique et vétérinaire Hassan II
Rabat, Morocco

1. INTRODUCTION

With an economic growth reaching four percent per year, Morocco managed to reduce levels of malnutrition.
Between 1980 and 1996, the daily food ration increased from 2 723 to 3 186 calories. This quantity is
comparable to the one observed in some industrialized countries. This increase is attributable to the growth
of food production and to the development of commercial exchange.

However, almost half of the population live in rural areas, where poverty and vulnerability persist, notably
among those that practice traditional small scale agriculture and among the shepherds. Approximately two
million people suffer from malnutrition. Only 50 percent of the Moroccan population have access to safe
water and some 56 percent among them are illiterate. The environmental problems constitute a short term
threat; there is a shortage of water for agriculture and pasture, and 61 percent of the land is severely
degraded.

The Moroccan economic and social development policy has always had food security as one of the top
priorities. Important efforts have been made to stabilize the food supply for the population, improve their
living conditions as well as the purchasing power of households.

In spite of Morocco’s relatively high food production through fisheries, the national economy benefited more
from the foreign trade than from the domestic supply of the fishery products. The level of fish consumption
remained relatively low (estimated between 7.5 and 9.7 kg per capita). Hence, the question arises whether
strengthening the liberalization of international trade actually improves the food security on a national scale.

The first part of this report describes the situation of the food security in Morocco, the contribution of the
fisheries sector to the national economy and to fish products trade. The second part endeavours to analyze
the situation of international trade of fish products, and its impact on the national food security .

2. FOOD SITUATION IN MOROCCO

2.1. The Food Security - A Concept with Multiple Facets

According to the World Food Summit held in 1996 "food security exists when all people, at all times, have
physical and economic access to sufficient, safe and nutritious food to meet their dietary needs and food
preferences for an active and healthy life”.

This definition includes four essential notions:

x the availability of food products;
x the stability of supply;
x the physical and economic access to food products;
x the preference of the consumers and the quality of the products.

2.2. Current Status of Food Security in Morocco

Moroccan economic and social policies grant the priority to agriculture and to the hydro agricultural
structures and amenities (dams’ policy) to assure food security of the country, in particular in staple foods
(cereals, sugar, oils, meats, milk and derivative products...). Until the beginning of the 1990s, the food
 - 179 -
security concept was conceived like being the achievement of the staple food self-sufficiency through
domestic production. This perception showed its limits, because the state was not able, by itself, to support
the extra cost required to realize this.

Food security in Morocco is conditioned by economic access and purchasing power on one hand, and
stability of availability levels from the national production, on the other hand. Poverty concerns an important
part of the population estimated at 5.3 million people, i.e. 19 percent of the total population. Morocco
succeeded in assuring regular supplies to the local market of staple food, thanks to a social policy of the
state.

A calorie–satisfactory, but unbalanced diet as it is based on cereals.

Table 1: Contribution of staple food products to Total Available and Ratio of

needs cover (Average 1990–1999)

Percentage of total Share of needs covered

Products
available percent

Cereals 46 64

Leguminous 1 92

Oils 3 36

Sugar 6 46

Red meat 2 97

Fish 1 134

Fruits and vegetables 32 120

Milk and milk products 7 84

Total 100 -

About 6 percent of the Moroccan population suffers from malnutrition, which is similar to the average for the
countries of Near East and North Africa.

Table 2: Food security indicators for North African Countries

Non–agricultural Total exports to Per capita food Protein per Calories per
Country population food imports production capita capita
( percent) (US$)
(Gr/day) (Cal/day)
Mauritania 5 3.7 117.2 76.8 2 598
Morocco 6 8.1 144.5 83.9 3 140
Algeria 8 4.7 90.3 81.6 2 972
Tunisia 7 13.0 182.3 86.1 3 256
Libya 9 8.9 90.0 78.8 3 251
Egypt 6 5.3 145.0 87.6 3 254
Source: FAOSTAT (1999) and WDI (2000)

3. THE CONTIBUTION OF FISHERIES TO FOOD SECURITY

The contribution of the fisheries sector to food security in Morocco stays below its potential of production.
There are three major types of fisheries in Morocco:
x High sea fishing by big industrial units equipped with onboard freezing systems;
x Inshore fishing by traditional ships (wood–made units) including seiners, trawlers and long
liners;
x Artisanal fishing is practiced by a myriad of small boats along the coast.
 - 180 -
Table 3: Fish products supply by category

Type of fishery Share in total production

Main species landed
Quantity Value
High sea fisheries 11 percent 62 percent Cephalopods
Inshore fisheries 82 percent 37 percent Pelagic fish (83 percent) and white
fish
Artisanal fisheries 07 percent - Cephalopods and white fish

Although production is relatively high, only a small share is available for direct human consumption. It is
necessary to identify the quantity available for direct human consumption out of total production by taking
into account imports, exports, losses and destination of processed products for human consumption or other
uses.

During the period 1996-2001, fish products available for direct human consumption represented between 25
percent – 30 percent of total production, which increased from around 600 000 tonnes to 1 100 000 tonnes
during the same period.

Figure 1: Fisheries nominal catch from 1991 to 2001

1200

1000
Production X 1000 t

800

600

400

200

0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Total Inshore fisheries High sea fisheries

Figure 2: Domestic Availability and Availability for Human Consumption (x1000 tonnes)

1200
1000
800
600
400
200
0
1996 1997 1998 1999 2000 2001
Years

Production Exports Domestic Available Available for Human Consumption

x The availability for human consumption represents on average, only 21.5 percent of the total
nominal production. This proportion is composed of fresh and canned fish.
 - 181 -
x In 2000, the exports of fish products were 473 000 tonnes live weight, corresponding to
52 percent of the nominal production. A varied range of fish products is exported. The
exports are dominated by cephalopods (mainly Octopus) with 63 percent of the total export
value, canned fish with 14.56 percent and fresh fish with 11.47 percent.
x In the same year, the food import bill reached US$ 1.4 billion.
x Imports of food absorbed 18 percent of foreign currency earnings.
x The exports of fish products were equivalent to 72 percent of the cost of food purchases.
x The export of 1 kg of fish allows Morocco to import 3.92 kg staple food products.

Despite the high level of production, fish consumption levels remain low in Morocco. On average, the
domestic consumption absorbs 24 percent of the nominal production. The domestic consumption of fish is
competing with the demand of foreign markets and the fishmeal industry.

In 2001, direct human consumption reached 268 000 metric tonnes of fresh fish, corresponding to 24 percent
of the total production, while 45 percent of this production was reduced to fish oil and fishmeal.

Table 4: Fish products utilization and marketing by production sector

Production Sector Type of utilization Target market Quantity ( percent)
High sea fisheries Frozen Foreign 11.5
Fresh Domestic 17
Canned Foreign, mainly 19
Frozen Foreign 0.5
Inshore fisheries Fishmeal and fish oil Domestic, mainly
45
Others - 1.5
Sub Total 83
Artisanal fisheries Fresh and Frozen Foreign, 5.5
mainly
Total 100

The analysis of fish products consumption shows that the Moroccan consumer has a very clear preference for
fresh fish (96.81 percent of the total consumption). This total represents 29 percent of total meat
consumption, where red meats account for 33 percent and poultry 38 percent.

Figure 3: Household consumption of fish by category of products (EL BASRI, 1998)

Dark flesh fish

3% 1%1% 2%

White fish
27%
Crustaceans

Cephalopods

66% Canned fish

Frozen fish

The consumption of fish products is lower in rural areas, but is moderate to high in coastal zones.
Determining reasons for the weak household demands are:
x The low rank that fish occupies in the Moroccan food habits and preferences.
 - 182 -
x The structures of production, processing, distribution and marketing, which are not well
developed.
x The lack of availability of quality fish at a reasonable price, particularly inland, where
cooling facilities are lacking or not well developed.
x The high price of fish in relation to income of large part of the population.

4. CONSIDERATIONS WITH REGARD TO THE IMPACT OF INTERNATIONAL TRADE ON

FOOD SECURITY

The preliminary considerations may be directed to three different levels:

x National: What are the direct and indirect earnings or losses generated by trade on foreign
currency, food availability, economic growth, environment, economic sustainability,
economic and social welfare, level and quality of consumption and poverty alleviation?
x Sectorial: What is the effect on the different sectors of fisheries, the trend of fisheries
resources and the economic aspects, production, price, income of fishermen, employment,
and added value - keeping in mind the inter-connection between the different sectors?
x Consumers: What are the changes that occur in the levels/nature of the fish product
consumption and other foods, the expenses of households, and the nutritional balance -
whether for an individual or a household?

x While exports generate foreign exchange, they reduce the availability of a valuable and very
nourishing food product for the Moroccan consumers.
x These returns will reduce the deficit of the commercial balance.
x The demand for fish from Morocco is getting stronger. Consequently, there is a serious
threat of strain on the sustainability of the resources.

At a sectorial level
x The different operators of the fisheries sector, including trades will benefit in different ways
from the earnings generated by exports.

High sea fisheries

x A positive impact on the income without seriously affecting the domestic protein supplies;
x An improvement of incomes for the minority of ship–owners, while the relative benefit for the
fishermen will be lower;
x Indirect effect on food security by means of the foreign currency generated.

Inshore fisheries
x The majority of white fish with a moderate to high market value will continue to be exported
to Europe.
x Species with a low market value will continue to be sold on the national market. However, the
Moroccan consumers do not have sufficient purchasing power, despite the physical
availability of products. Only an improvement of purchasing power could enhance fish
consumption. Pelagic fish will play a major role in domestic protein supply.

Artisanal fisheries
x There may be an improvement in income and nutrition situation for the fishermen and all
related operators.

Fish processing
x Fish industry will take advantage of increased trade because it utilises a low value abundant
fish (small pelagics). The main challenge for this industry will be quality.
 - 183 -
x The increase in foreign demand will permit the industry to target more value added processing
and to use a part of the raw material from the fishmeal industry.

At a households level
x The households’ consumption of fish will be most affected by increased exports of fish
products.
x However, the earnings of foreign exchange will permit an improvement in domestic
availability of food products from other origins.

4.1 What to do? – Some Preliminary Ideas

At national level
x Increase the income for fishermen as prerequisite to ensure food security.
x International assistance is needed in order to improve the productivity, to insure a more
equitable distribution of revenues, a better access to loans and reform of the sector in order to
adequately support small producers.
x The transition assistance should include the search for new markets, production, and
employment.
x It is necessary to assure that the trade of fish products will increase food security and improve
social and economic development. It is likewise necessary to ensure that fish trade will not
adversely affect the environment and natural resources or hamper the right to food, or
negatively affect the nutritional needs of the population, for whom fish and fish products are
crucial health and welfare factors.
x Distinguish between products of luxury consumption, which are exported and products of
nutritional needs, which are domestically consumed.

At fisheries sector level

x Assure a more valuable utilization of catch and a better appreciation of raw material. Instead
of using resources for fishmeal, it is better to direct it towards human consumption.
x Redirect the financial support dedicated today to sustain fishing to activities such as handling
after harvest, processing and marketing of fish, including utilization of by-catch and market
development for small pelagics.
x Improvement of productivity of fish production is necessary to ensure food security and to
enhance competitiveness.
x Public and private investments should be strongly increased to reinforce the fisheries
capacities. The investments should be directed toward:
- Appropriate technologies and capacities for production and processing;
- Education and training;
- Development of the necessary infrastructure;
- Reinforcement of existing research centres;

At household level
x Improve the cash income of consumers;
x Reorganisation of marketing, aiming at efficiency of operations and affordable levels of
consumer prices.

6. CONCLUSION

The liberalization of international trade of fish products has a positive impact on food security in Morocco,
not in a direct manner since the country is a net exporter, but through foreign exchange earnings, which
allow Morocco to pay for a large part of the expenses due to the imports of staple foodstuffs.
 - 184 -
However, it is crucial that Morocco protects the local populations against malnutrition; this could include the
offer of inexpensive fish products. Improvement of consumers' incomes and development of marketing
channels are prime prerequisites for repositioning the fisheries sector as a strategic nutritional reserve for
Morocco.
 - 185 -
INTERNATIONAL FISH TRADE AND FOOD SECURITY - CASE OF SENEGAL

by

Ousmane Ndiaye
Direction des Pêches Maritime
Dakar, Senegal

Senegal, in West Africa

Abstract
Fish plays an essential role in the Senegalese population food security. The average per
capita fish consumption is 26 kg per year all over the country. The contribution of fish in
the consumption of animal proteins is estimated at 75 percent. International fish trade is a
heavy threat to the Senegalese population’s food security. Three groups of factors are at the
origin of this tension on the food security: exports aids (free point and free regime
exporting company status, fishery products exports subsidies, devaluation, macro economic
policy, Lome convention), fisheries agreements and artisanal fishery support policy.
Globally, export support measures have produced unfavorable environmental and socio-
economic effects. They have caused important fishing effort shifts to coastal demersal
species, contributing therefore to these resources’ overexploitation. In the meantime, such
fishing effort shifts have reduced the supply of fish to the local market. Fisheries
agreements directly contribute to coastal demersal resources overexploitation and indirectly
lead to the implementation of cooperating strategies between local and foreign fishermen,
deviating therefore a part of the national effort from the satisfaction of local needs.
Objectives of support policies dedicated to the artisanal fishery and food security have very
often been obscured by the attraction that exports cause and consequently fishing effort
shifts to species supplying the exports industry. It is necessary to implement a proper food
security strengthening strategy, through: 1) A revision of support policies to support
activities, which contribute to food security strengthening; 2) Strengthening of the artisanal
fisheries development because of their importance on the local market; 3) Increasing fish
supply to the local market by valorizing discards and reducing post harvest losses; 4)
Promotion of sustainable fisheries management and sub-regional and international
cooperation in the area of food security.
 - 186 -
1. INTRODUCTION

The fisheries sector plays a prime role in the Senegalese economy and society, in particular in the area of
exports and the satisfaction of food needs and employment. Catches landed, estimated at 50 000 metric
tonnes in 1965, have attained 390 000 metric tonnes in 2000 (Annex 1). Exports (all types of products and
destinations), were in average estimated at 105 600 metric tonnes annually in the period 1990-2000. In 1999,
124 338 metric tonnes (Annex 2) were exported for a commercial value estimated at FCFA 185.5 billions. In
terms of employment, the sector mobilized directly and indirectly around 600 000 people.

Fishery products, in particular fish, contribute to a large extent to Senegalese diets, hence contributing to
attenuate the nutritional deficit in terms of animal proteins through the artisanal fisheries. During the period
1990 and 2000, the artisanal fisheries averaged more than 78 percent of total landings. Due to the decline of
the agriculture and livestock sectors, which are the traditional suppliers of animal proteins, the fisheries
sector has become an essential contributor to the country’s food security. The average fish consumption is
estimated at 26 kg per capita annually. The contribution of fish in the consumption of animal proteins is
estimated at 75 percent. The relation meat-fish is estimated at 22.5 percent.

Fish exports are an important advantage for Senegal in that they significantly contribute to generate foreign
income and improve balance of trade. Nevertheless, international fish trade threatens the Senegalese
population’s food security. Three groups of factors are at the origin of this tension: exports aids (free point
and free regime exporting company status, fishery products exports subsidies, devaluation macro economic
policy, Lome Convention), fisheries agreements and artisanal fishery support policy.

2. THE IMPACT OF EXPORT AIDS ON FOOD SECURITY

The decline of traditional exports (phosphates, peanuts) has put the fisheries sector ahead with regard to the
policy of generating foreign exchange. The promotion of fishery products exports became therefore a
constant objective of support policies.

2.1 Free Point and Free Regime Exporting Company Status

The free point and free regime company status, offer a wide range of advantages in customs and taxation
terms (payment of taxes at a reduced rate of 15 percent instead of 30 percent, no taxation on equipment
imports and repatriation of profits) to companies exporting most of their production. Such advantages have
encouraged the establishment of fishery products processing companies aiming at profits from the increasing
demand for these products, in particular in developed countries. The direct consequence is the overcapacity
development at the level of the processing industry, which causes a strong pressure on demersal stocks
through the demand for exportable products. This situation has negative effects on the supply of fish to local
markets.

2.2 Export Grants

Export grants were not originally dedicated to the fisheries sector. They were introduced in 1980 to revive
agriculture products exports initially established at 10 percent of the FOB value, the grant went up to 15
percent in 1983 and included the tuna exports. At the end of the second reform in August 1986, grants
reached 25 percent and applied to all fish exports. The grant was abolished following the CFA franc
devaluation, which compensated for the abolition of this measure. The exports grants also favored
overcapacity in the processing industry causing serious risks for species destined to exports, and had similar
negative effects for the supply of fish to the local market.

2.3 Devaluation and Lome Commercial Advantages

The devaluation was suggested by funding institutions to respond to the need for overcoming distortions
which affected the rate of exchange of the CFA franc. The overvaluation of the rate of exchange represents
an exports tax and an imports grant. The devaluation has the consequence to revive exports and may lead to
the intensification of the fishing effort on species destined to exports. The Lome Convention allows products
from ACP countries to enter the European market free of duty. This implies a significant comparative
 - 187 -
advantage that can reach 25 percent in the case of processed products. Given that the European demand
essentially concerns high value species, commercial advantages established by the Lome Convention have
probably contributed to accentuate the pressure on fisheries, notably the exploitation of demersal stocks,
crustaceans and cephalopods. Nevertheless, the World Trade Organization (WTO), realizing that provisions
of the Lome Convention governing the relationships between ACP countries and the European community
are among developing countries (example: Asian countries are subject to the duty tax of 25 percent with
regard to tuna exports to European countries), admitted that these provisions must disappear at some point in
the future. According to the WTO, countries at the same level of development must be treated equally.

Limited storage capacities of fishing vessels and some less selective fishing techniques (shrimp fishing
vessels in particular) encourage important discards of by-catch. For the period October 1992 and October
1994, the PSPS (fisheries surveillance project) estimated catch discards by targeting fish vessels at 2 687
metric tonnes; discards by vessels targeting hakes and shrimp were estimated at 1 680 metric tonnes and
6 450 metric tonnes, respectively. The commercial value of these discards is estimated at FCFA 2 billions.

3. IMPACTS OF FISHERIES AGREEMENTS ON FOOD SECURITY

At the end of the 1970s, certain states were facing overcapacity problems that led them to redeploy their
fleets to other waters. Such a situation favored the conclusion of fisheries agreements between coastal states
and distant water fishing nations. In agreements concluded between powerful fishing nations and developing
countries, the focus tends to lie on the issuance of licenses or other fishing concessions against license fees.
The principle of complementarily constitutes one of the main theoretical justifications in the conclusion of
fishing agreements.

In the case of Senegal the development of agreements coincided with the development of the artisanal
fishery in the 1980s. From that period, landings operated by this fishery showed a spectacular increase
passing from 150 000 metric tonnes in the early 1980s to 250 000 metric tonnes from 1990 and to 350 000
metric tonnes nowadays. Concerning coastal pelagic and demersal resources, the national fleet is not only
able to exploit all these stocks, but is also able to fully exploit the resources. Coastal pelagic resources are
not fully exploited by the artisanal fishery because of the cost of the capital – in particular since the
devaluation. Thus, the complementary, according to the existing scientific data concerns in principle the high
seas resources.

Even when conditions of such complementarity are established between the national fleet and the foreign
fleet, both fleets compete in the same fishing zones. This competition is in general a double competition
between on the one hand the national and the foreign industrial fleets in particular with regard to coastal
demersal resources, crustaceans and cephalopods, and on the other hand the artisanal fishery and the
industrial (local and foreign) fishery. Conflicts between these two fisheries tend to aggravate since the
development of the artisanal fishery place that fishery in a situation of competing offshore with the industrial
fishery. This results not only in a depletion of stocks, notably coastal demersal stocks, but also in the
destruction of fishing gears and sometimes costly collisions and loss of human lives.

This overcapacity in Senegalese fisheries, in particular with regard to demersal resources, results in
overexploitation. Consequently, a major decrease in average sizes of individual fishes and in artisanal units’
outputs, are noticed. Additionally, fishing efforts shifts to species destined to exports, despite the heavy
fishing effort exerted on these resources already. The consequence of this is a shortage in fishery products in
local markets. This problem is further aggravated by the concession, within the framework of the 1997-2001
fisheries agreement with the European Union, of quotas concerning pelagic resources, even when these
quotas have not been exploited. Catches of the artisanal fishery are dominated at over 80 percent by pelagic
species, essentially destined to the local market consumption. Considering their role in relation to food
security, pelagic resources are extremely sensitive. Although the 2001-2005 fisheries agreement provides
nothing to this effect, northern countries have shown interest, and the acceptance of an agreement in this
category of species may have psychological consequences as well as with regard to food security.

Despite the complementarity principle being the basis of fisheries agreements concluded with the European
Union at the end of 1970s, serious problems appeared, threatening the sustainability of fishery resources
exploitation in Senegal. The increasing exploitation of coastal pelagic and demersal stocks, caused by a huge
 - 188 -
number of national and foreign vessels operating in this area, led to a permanent overexploitation. With
regard to the national artisanal fleet, this led to an increasing cost of capital (greater cost with the devaluation
of the national currency) and an increasing interest in species essentially destined for exports. Conflicts
increased within fishing zones and contributed to increased costs of production (through negative
externalities), with the result that only small pelagic stocks are not entirely exploited and still serve for the
national consumption and the African consumption, in general.

Fisheries agreements contribute to the deviating fisheries sector not only directly by fishermen, consumers
and national processors from a part of resources (provided that processors benefit from the part of catches
subject to the obligation of landing), but indirectly because they encourage national and foreign fishermen to
implement cooperative strategies and subsequently turning away a part of the national effort from the
satisfaction of domestic needs.

These conditions in which a fisheries sector focused on export needs operate, led to the considerable
degradation of pelagic fishing units financial accounts (such units are traditionally oriented to the domestic
market), and an improved financial situation in the part of demersal fishing units (which mostly dedicate
their catches to exporting units). This situation is responsible for important fishing effort shifts, causing
available quantities to diminish and increase the price on the local market. Hence, such an evolution is a
dangerous threat to food security in a country where fish satisfy some 75 percent of animal proteins needs. In
addition, coastal demersal species have been subjected to an increased fishing intensity, leading to a serious
threat towards these stocks due to the exportation. Subsequently, environmental risks should be considered in
addition to the threats on the processing segment by the increase in number of operators, the shortage of
resources, and the high cost of the raw material.

It should be noted however, that the European Union finances 80 to 90 percent of the fishing rights’ financial
counterpart (vessels owners financing fishing licences fees). Despite that WTO rules limit the possibility of
granting the production and exports (grants may produce an unfair comparative advantage on behalf of the
exporters and vis a vis to granted products), it is evident that ACP countries have the responsibility to
denounce such a situation or just refuse to conclude agreements.

4. THE IMPACT OF ARTISANAL FISHERY SUPPORT POLICIES FOOD SECURITY

Coping with difficulties in the area of agriculture, the government, conscious of the contribution of the
artisanal fishery (80 percent of landings) to the satisfaction of food needs and to the generation of revenue
and employment, implemented several development projects. The most important of these projects are the
motorization of the artisanal fishery, and the introduction of the purse seine in that fishery. These two
projects benefited from a wide financial support programme. Outboard engines, fishing gears, spare parts and
fuel were tax free. The authorities’ major objective, in supporting artisanal fishermen, is to improve the
nutritional situation of the Senegalese population by providing products to the local market with prices
compatible with their buying power. Nevertheless the artisanal fishery is very integrated in the national
economy and contributes substantially to supply fishery products to exporting units.

Catches by industrial units are clearly insufficient to cover fish export needs. Therefore, with the view to
ensure their regular fish supplies, some units deal with artisanal fishermen through fish traders, who provide
fishermen with all the equipment necessary for their activity. About 60 percent of the industrial export needs
are provided by artisanal fishery units. An example of the influence the industrial fishery on the artisanal
fisheries orientation is the consequences of the devaluation of the CFA franc in 1994. The expectation of
substantial profits in the international market accentuated shifts of fishing effort from species supplied to the
local market, to these species (cuttle fish, octopus, sole, lobsters, shrimp, etc.) destined to exports.

Many pelagic fishing units (purse seines and surrounding gill nets) converted to demersal fishing with jigs,
for catching the octopus. From October to May, artisanal units that normally operate with the long line, very
often use the sole net, therefore, cheap price fishes become less and less available for the population. The
fishing pressure is oriented to exportable species and certain artisanal fishing methods are exclusively
focused to these species. This fishing effort shift weakened the local fish trade by a reduction of catches
dominated by species consumed locally and this situation may cause an increase of the deficit in proteins
already noticed in the country as a result from the unequal distribution of the fish consumption in Senegal.
 - 189 -
The Cymbium example reveals the situation of competition between the local and the export markets. This
product is being exported in fresh condition to Asian countries, and is less commonly found in the
Senegalese meals. The shift of a part of the artisanal fisheries production to external markets, poses the
question of knowing who benefits finally from the financial aids allocated, if not the exporting units and the
foreign consumer.

5. CONCLUSIONS

Fishery products and in particular fish, play a fundamental role in the satisfaction of the food needs of the
Senegalese population. However, the current fisheries context, characterized by pressures on fish resources
and the big rush on the ground of high value products destined to export, are among the main factors that
heavily threaten the food security.

This situation results from the negative effects of export promotion policies and artisanal fisheries support
policies, as well as fisheries agreements, which contribute to the aggravation of the risks on resources
sustainability and the progressive extraversion of the Senegalese fisheries sector. It appears necessary, for
improving the food security, to take the following actions.

At the national level:

x Examine possibilities of implementing a discriminating policy on the fuel supplied to
artisanal fishing units and their free taxed equipments and fishing gears. In this way, units
whose catches are oriented to the local market (fish trading and artisanal processing) could be
the only ones to benefit from the granted fuel.
x Give an effective advantage to the artisanal fishery, which increasingly enters in competition
with the industrial fishery (national and foreign fisheries), i.e., the artisanal fishery plays an
important role in the supply of animal proteins to the population with a cheaper price compared
to the industrial fishery, which is more directly commercial profit oriented. Its practices are also
more sustainable than those in the industrial fishery (diversity in fishing gears and types of
catches which are all marketed at the minimum price on the local market, while the industrial
fishery is generally mono-specific and increases the risks of discards). Finally the artisanal
fishery is much integrated in the local socio-economic tissue and procures employment and
revenue to many people. However, it is necessary to control its development framework through
appropriate policies (incentives, taxation, etc.).
x Examine possibilities of valorizing by-catches, which are the main source of fish discards.
These landings could be marketed in a fresh form to strengthen the local supply of fish. The
FAO developed an experience in this area on Madagascar, which needs to be examined. One
could build from local surveillance centres established all along the coast, which could organise
artisanal units to collect discarded catches within their zones.
x Incorporate fisheries agreements into the sustainable development frame work, which takes
into account the necessity of preserving resources, satisfying food needs and the principle of
complementarity. To this effect, the progressive reduction of fishing possibilities for foreign
vessels should be looked at, with regard to non exploited resources by national fleets (example:
deep sea demersal and high seas pelagics).
x Implement a sustainable fisheries management strategy that gives priority to food
security (appropriate production, processing and fish marketing facilities, incentives for
strengthening fishing activities oriented to the satisfaction of the local market, the reduction of
discards and post harvest losses by making use of these catches, etc.).

At the subregional and international levels

- Promote subregional and international cooperation in terms of food security. To this effect :
x Elaborate and implement subregional and regional projects;
x Collaborate, within the framework of international instances, with the objective to improve
food security situation in our countries.
 - 190 -
ANNEX 1 : Evolution of Fish Production

Fish Production (1990-2000)

500.000

YEAR
400.000
ARTISANAL FISHERY
300.000
INDUSTRIAL FISHERY
MT

200.000 TOTAL CATCHES

100.000

0.000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Source : Fishery Department

ANNEX 2 : Evolution of Local Fish Consumption and Fish Exports

FISH CONSUMPTION AND FISH EXPORTS (1990-2000)

500.000

400.000

FISH
300.000 PRODUCTION
MT

LOCAL
200.000 CONSUMPTION

FISH EXPORTS

100.000

0.000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
 - 191 -
BIBLIOGRAPHY

Cemare-Crodt-Defid, 2001, The Impact of European Fishing Agreements on the African Fish Market
Supply, Report of the workshop n°1, CRODT, June 12 – 13, 2001, 91pp.
Dahou, K., Deme M., 2000 – Impact socioéconomique et environnemental des dispositifs d’appui aux pêches
sénégalaises (Socio-economic and Environmental Impacts of strengthening fish sector in Senegal).
Document technique, 20 pages.
Mongruel, M. 1998. Les pêcheries africaines face à la libéralisation du commerce international (The Impact
of the Trade Liberalization on African Fisheries), la pêche en Afrique, Afrique contemporaine.
Pnud-Enda-Crodt, 2000.- Impacts socioéconomiques et environnementaux de la libéralisation du commerce
sur la gestion durable des ressources naturelles : étude de cas sur le secteur de la pêche sénégalaise
(Socio-economic and Environmental Impacts of Trade Liberalization on sustainable management of
natural resources : Case of Senegal). DAHOU K. et DEME M., eds., 96 pp.
Porter, G., 1997. The Euro-African Fishing agreements: Subsidising Overfishing in African Waters, UNEP.
 - 192 -
THE IMPACT OF INTERNATIONAL FISH TRADE ON FOOD SECURITY IN THAILAND

by

Somying Piumsombun
Senior Fisheries Economics Expert
Department of Fisheries
Bangkok, Thailand

Abstract
Fisheries sector is important to the economy of Thailand as the source of income,
employment, foreign exchange earnings and supply of animal protein food. Though
Thailand is the largest fish exporting country, supply of food fish to domestic consumers
is not jeopardised and the bigger portion of fish production supply the domestic market.
In 2000, per capita fish consumption on average was 32.7 kg, far outweighs other animal
protein sources. Based on the consumption survey during 1998-2001, per capita fish
consumption of people residing in inland provinces was 28.8 kg whereas people in
coastal provinces consume 45.21 kg. In terms of quantity, urban consumers consume less
fish than consumers in rural areas. Moreover, consumers in different areas/regions have
different tastes, preferences and levels of purchasing power, which affect their choices of
species and quality of fish they buy. Even though Thailand has no experience in fish
supply shortage, major constraints on the capability of fisheries sector to sustain its
contribution to food security are identified including overfishing in the Gulf of Thailand,
environment issues on shrimp farming, loss of fishing gear, non-selectivity and poor
handling, international trade restrictions and income distribution. Effective measures and
management in all aspects will generate long term significant gains in fish supply as well
as better economics and food security and hence social well being.

1. INTRODUCTION

Thailand is one of the top fish producing nations in the world. Total fisheries production was recorded at
over 3.6 million tonnes in 1999. Geographical advantage is one factor attributed to the relative high annual
fish production. Thailand has a total land area of about 540 000 km2 and a coastline of 2 614 km. Marine
fishing grounds which fall within Thailand’s Exclusive Economic Zones, lie in part of the Gulf of Thailand
and part of the Andaman Sea and cover a total area of about 316 000 km2. The area of inland waters is
approximately 3 750 km2. Besides, over one million hectares of coastal areas have a potential for coastal
aquaculture.

In 2000, the gross domestic product (GDP) of fisheries sector was 123.2 billion Baht1, which accounted
for about 2.5 percent and 27.6 percent of national GDP and of agricultural GDP, respectively. The
fisheries industry has additionally contributed to the development of other related industries and
supporting industries such as ice plants, cold storage, fish processing plants, ship building, hatcheries,
feed industry, transportation etc. Therefore, the number of people engaged in this sector was estimated
nearly two million, of which 40 percent are fishermen and fish farmers and the balance are engaged in
other related/supporting industries.

The fish produced are consumed domestically or exported for foreign exchange earnings. It is the
important source of protein and this is reflected in the per capita fish consumption of 25-32 kg during
the past decade. The export value of fish and fishery products has increased significantly. In 2001, a
trade surplus of 146.8 billion Baht was recorded.

Thailand became the largest fish exporter in the world in 1993 and the balance between supply and
demand is critical to whether the country can meet her rising fish demand. It is appropriate that this

1
1 US$ is equivalent to 43 Baht (January 2003)
 - 193 -
paper reviews the source of fish supply for domestic consumption and export earnings as well as
accessibility of fish and fish products through the domestic marketing system. The importance of
international fish trade that generates income, employment and export earnings which contribute to the
wealth of the nation will be highlighted. Per capita fish consumption and fish expenditure classified by
areas and type of consumers will be analysed. Lastly, the paper will identify the main issues involving
the challenges and opportunities that will enable the fisheries sector to sustain its contribution to food
security.

2. FISHERIES PRODUCTION: IMPORTANT SOURCE OF FISH SUPPLY

Fisheries production in Thailand demonstrated a remarkable growth over the last three decades. The total
production exceeded two million t for the first time in 1977 but it was followed by a setback and recovered
to over two million t again since 1982. In 1999, over 3.6 million tonnes were recorded, of which 75.2 percent
came from marine capture fisheries. The balance was contributed by coastal aquaculture, freshwater
aquaculture and inland capture fisheries at 12.2 percent, 6.9 percent and 5.7 percent, respectively.

T o ta l c a tc h b y s u b - s e c to r, 1 9 9 0 - 1 9 9 9
1 0 00 T o n n e s

4 0 00
3 5 00 F re sh w a te r cu ltu re
3 0 00
C o a sta l a q u a c u ltu re
2 5 00
2 0 00 In la n d c a p tu re

1 5 00 M a rin e c a p tu re
1 0 00
5 00
0
1990 1992 1994 1996 1998

Y ea r

2.1 Capture Fisheries

Marine capture fisheries

The most recent figures in 1999 show a marine catch of over 2.7 million tonnes, valued at 48,444.6 million
Baht. Marine capture fisheries are divided into fishing in the Thai waters and in outside Thai waters. Fishing
grounds that fall within Thailand’s exclusive economic zones lie in part of the Gulf of Thailand and part of
the Andaman Sea.

Marine catch in the Thai waters both from commercial fishing (about 90 percent), and small-scale fishing has
shown a decreasing trend, especially during 1994-1999 when the total catch decreased at 6.6 percent per
year. Catch composition in 1999 are food fish, trash fish, cephalopods, shrimp, crabs, mollusc and others
about 54 percent, 28 percent, 7 percent, 3 percent, 2 percent, 3 percent and 3 percent, respectively.

On the contrary, catch from outside the Thai waters has shown an increasing trend in the past decade at
annual growth rate of approximately 10 percent. At present, about 4 200 fishing vessels have operated
overseas fishing in many neighbouring coastal states. It is estimated that in 1999, of the total marine catch,
40 percent originate from waters outside Thai jurisdiction.
 - 194 -
M a r in e C a p t u r e F is h e r ie s : T o t a l
C a tc h (1 9 8 7 -1 9 9 9 )
T ho usand tons
3 ,0 0 0

2 ,5 0 0

2 ,0 0 0

1 ,5 0 0

1 ,0 0 0

500

19 9 1

19 9 2

19 9 3

19 9 4

19 9 8

19 9 9
19 8 7

19 8 8

198 9

19 90

19 9 5

199 6

19 97
T o ta l C a tch In T h a i W ate rs O u ts id e T h a i W a te r s

Inland capture fisheries

The important bases for inland capture fisheries are rivers, lakes, swamps and reservoirs. The fisheries have
long been part of Thai culture and serve as an important source of animal protein for the rural people. Most
of fisher folks in this sub-sector are small-scale operators. Only fishing in large impoundments is mostly
commercial. In 1999, the production level of 206 900 tonnes, valued at 7 221.3 million Baht was recorded.
Production from inland fisheries during the past five years (1994-1999) is more or less stable.

2.2 Aquaculture

Considering the country’s total aquaculture production, which is divided into coastal and freshwater
production from freshwater aquaculture, was predominant in earlier days. However, coastal aquaculture has
played an important role from 1988 onwards due to the rapid development of intensive marine shrimp
culture. In 1999, total aquaculture production was recorded at 594 600 tonnes, valued at 68 478.20 million
Baht. Of the total quantity and value, coastal aquaculture shared 61.8 percent and 89.8 percent, respectively.

Coastal aquaculture

Coastal aquaculture is practiced in the interface between freshwater and seawater. This sub-sector becomes
more important as an alternative to produce food fish in substitute for the loss from marine resource due to
depletion. The rapid growth is mainly due to the accelerated development in culture technology. Many
species have relative high price and substantial demand. The species are shrimp (tiger prawn), shellfish and
marine fish. Marine shrimp is the predominant species. The opening of foreign shrimp markets caused rapid
expansion of shrimp culture. Over 90 percent of cultured marine shrimp is exported. In 1998, its production
was 275 544 tonnes, valued about 67 100 million Baht.

Shellfish, mainly bivalves, are cultivated in inshore coastal areas. Its production was around 88 000 tonnes,
of which green mussel contributed the greatest share. Marine fish culture comprises mainly grouper and
seabass. Total production in 1999 was nearly 7 000 tonnes, of which seabass accounted for over 80 percent.

Freshwater fish culture

From 1963 onwards, fish culture has been rapidly developed, partially from the breakthrough in
artificial breeding by hormone injection of many valuable species. The pattern of culture, either
monoculture or polyculture varies according to species cultured. The former is commonly found in raising
carnivorous species i.e. walking catfish and snakehead fish, and other species such as freshwater prawn,
stripped catfish, and sand goby. The latter is generally found where herbivorous species are raised, namely,
tilapia, silver barb, common carp, Chinese carp, and mrigala. Furthermore, wherever possible, people are
encouraged to culture fish in addition to pig or poultry raising, vegetable and fruit cultivation and rice
 - 195 -
planting. Therefore, integrated fish culture with animal husbandary and/or cropping are commonly practiced
in Thailand.

In 1999, with the cultured area about 91 000 ha catch from freshwater culture amounted to 252 600 tonnes,
valued at 7 953.10 million Baht. Cultured freshwater fish production showed the increasing trend during the
past two decades (1977-1999) with an average annual increase of 10.8 percent and 15.7 percent in quantity
and value, respectively. The main species cultured that contributed nearly 90 percent in quantity and over
75 percent in value are Nile tilapia , walking catfish , Thai silver barb, Sepat Siam , striped catfish and snake
head.

3. CATCH UTILIZATION

Of the total fish production, about 78 percent was used for human consumption; the balance of 22 percent
was for animal feed. As far as marine catch landings are concerned, about 28 percent was trash fish that was
used for non-food and mainly channelled to the fishmeal industry. The balance was for human consumption,
of which 20 percent was consumed fresh and the remainder was processed into various product forms of
chilled, frozen, canned, steamed or smoked, dried and salted, shrimp paste and fish sauce. For freshwater
fish, all was for food fish and 80 percent was consumed fresh.

4. DOMESTIC MARKETING

To bring fish to the consumer, the marketing system plays a vital role. Domestic fish marketing in Thailand
is complex concerning many types of markets and a very large number of parties involved. Marketing is left
almost exclusively in the hands of the private sector. Fish as a commodity is sold in fresh as well as
processed. To transfer fish to consumer, there are many types of traders concerned in primary market,
intermediate market and terminal market.

4.1 Markets

Primary market is the point where fish marketing starts for the first time at the landing places or farm gate.
Intermediate market is the point where fish passes through before redirected or re-consigned to the terminal
market. Terminal market is the final marketing stage where fish is distributed to consumers through retail
outlets, including retail markets, supermarkets, restaurants and canteens. Intermediate market level in
Thailand is composed of two market types; the central assembly market and the wholesale market.

4.2 Assembly Market

Central assembly markets can be divided into state assembly markets and private assembly markets. State
assembly markets are managed by the Fish Marketing Organization (FMO)2 located in central Bangkok,
Samutsakorn and Samutprakarn provinces. The Bangkok market handles both marine fish and freshwater
fish whereas the other two markets handle only marine fish. Fish is sold through registered fish agents3.
Mostly, selling and buying of fish is conducted through an auctioning system. However, it is observed that
the system is gradually replaced by price negotiation. Private assembly markets are run by the private
persons who normally own land in suitable locations. Nowadays, the private assembly markets have
developed significantly for freshwater fish trade to cater for the increase in the supply and demand of the
cultured freshwater fish. Prices are determined by either auctioning or negotiation. Private assembly markets
operate also for cultured shrimp. There are two private assembly markets where selling and buying is trough
auctioning ( Samutsakorn and Nakhonsrithammarat province).

4.3 Wholesale and Retail Markets

Wholesale markets are mostly located in big cities and in good locations. Many of them incorporate
retail on the final consumer market. Usually, wholesale markets include other consumer products, and
selling fish is one of many activities in this market.

2
FMO is State enterprise under Ministry of Agriculture and Cooperatives.
3
According to the existing Royal Decree on fish agent, fish agents must be registered with the Department of Fisheries.
 - 196 -
Retail markets are scattered in urban and peri-urban areas to which consumers have easy access. These are
not speciality markets selling only fish; instead all kinds of food items are for sale. Normally, a number of
retail-stalls with no separating walls give the market the appearance of a traditional open hall with one big
roof above a concrete floor. Fish are placed on slabs, but live fish are displayed in crates.

Big retail markets often incorporate wholesale markets as well. All kinds of fish are found, live, dead, whole
fish or pieces of fish, processed, i.e. salted and dried minced fish, fish balls, fermented fish, etc. Usually,
retailers post prices on the board above their stalls. Markets are open every day. To date, 16 big
retail/wholesale markets exist in Greater Bangkok.

Nowadays, it is common to find fish in supermarkets, which are emerging throughout Greater Bangkok. Fish
may be sold whole, gutted, or in pieces. A variety of processed fish is sold in small portions. Open freezers
are used for storage and display. On average, prices in supermarkets are about 40-50 percent higher than in
traditional retail markets. Hotels and restaurants are increasingly offer cooked fish.

Another retail outlet that is developing rapidly is the shed built in front of the fish processors’ houses along
main roads from Bangkok to other provinces. Fish sold from these locations are earmarked to serve travellers
and consist mostly of salted and dried fish.

Franchises are becoming increasingly popular. Fish is promoted as fast food and delivery becomes another
service that changes consumers’ habits from eating out to staying at home, particularly in a big city like
Bangkok.

5. INTERNATIONAL TRADE

E x p o r t a n d Im p o r t V a lu e

2 5 0 ,0 0 0 ,0 0 0

2 0 0 ,0 0 0 ,0 0 0
1,000 Baht

1 5 0 ,0 0 0 ,0 0 0

E x p o r t V a lu e
I m p o r t V a lu e
1 0 0 ,0 0 0 ,0 0 0

5 0 ,0 0 0 ,0 0 0

0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Year

The growth of international fish trade in the past has been remarkable and Thailand has maintained a surplus
balance of fish trade for over the past two decades and has been ranked as the top exporter of edible fisheries
products in the world since 1993. In 2000, the total volume and value of fish export was about 1.36 million
tonnes and 185 750 million Baht, respectively. Revenue from export was accounted for 3.8 percent of the
country’s GDP. The major markets are Japan, USA and EU.

Of the total export value, fresh, chilled, frozen and value added shrimp contributed 57.9 percent and all tuna
products contributed 18.1 percent. Meanwhile, Thailand is the top importer of fresh, chilled and frozen tuna
mainly from Taiwan and Japan as much as 300 000 – 400 000 tonnes annually. The imported tuna is
channelled to tuna canning factories for re-exporting.
 - 197 -
E xport V alue by m ain products

250,000,000
1,000 Baht

Shrim p
200,000,000
Tuna
Total

150,000,000

100,000,000

50,000,000

0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Y ear
Regarding the shrimp industry and its contribution to the economy of Thailand, the opening of world shrimp
markets caused a rapid expansion in shrimp industry. Over 90 percent of cultured shrimp production is
exported. It is estimated that the number of people involved in Black Tiger Shrimp cluster is more than one
million. Those people are engaged in the related industry i.e. broodstock, hatchery and nursery, shrimp
farms, processor and exporters as shown in the chart below. These industries are also associated with
supporting industries such as cold storage, animal feed plants, transportation, equipments etc. Of the total
shrimp value added about 108 000 million Baht in 2000, the estimation of value added allocated to major
stakeholders in the cluster is shown below. After deducting by the imported contents such as chemical and
some feed ingredients, the balance was 93 000 million Baht and accounted for about two percent of the
country’s GDP.

V a lu e C h a in o f T h a ila n d B la c k T ig e r
S h r im p I n d u s t r y

B R O O D S T O C K

H A T C H E R Y & N U R S E R Y

G R O W O U T P O N D S S U P P O R T I N G
( F A R M I N G ) I N D U S T R I E S

P R O C E S S O R

E X P O R T E R

VALUE ADDED
Value chain Value Added (Mil baht)
Broodstock 2 160
Hatchery & Nursery 2 640
Farming 62 400
Processor/Exporter 40 800
Total value added 108 000
Less imported contents (15 000)
Total domestic value added 93 000
Source: Institute for Management Education for Thailand Foundation

6. LEVEL OF FISH CONSUMPTION

6.1 Protein Consumption

Despite the fact that Thailand is a net fish exporting country, domestic per capita fish consumption is
relatively high compared to consumption of other three main animal protein commodities, namely pork, beef,
and chicken. Per capita consumption of animal protein during 1980-2000 (Table 1) showed that fish ranked
first among all sources, followed by chicken, pork and beef. Per capita fish consumption in 2000 was about
 - 198 -
32.7 kg4, compared to 7.3 kg, 2.1 kg, and 10.7 kg of pork, beef and chicken, respectively. During the same
period, the average yearly increase in consumption of fish was three percent, whereas average per capita
intake of pork, beef and chicken rose 1.5 percent, -0.4 percent, and two percent, respectively. Consumption
of beef is gradually decreasing, possibly because changes in the pattern of consumption. Thai-Chinese
people are usually not fond of beef.

Table 2 shows the retail price of selected animal protein sources in 1996-2000. Price is the decisive factor
influencing consumers’ choice of a product that is deemed suitable and affordable. Generally, the price of
Indo-Pacific Mackerel and freshwater fish is relatively low, which may be partly attributed to increasing
supplies and competitive prices.

Table 1: Per capita consumption (kg) of animal protein food by group, 1980-2000
Year Pork Beef Chicken Fish and Seafood

1980 5.76 2.36 8.45 19.83

1981 5.53 2.33 7.50 22.60
1982 5.46 2.38 8.98 22.68
1983 5.21 2.34 9.10 23.46
1984 5.16 2.26 8.97 19.75
1985 5.50 2.23 9.95 19.73
1986 5.16 2.14 9.56 20.45
1987 4.96 2.14 7.86 18.91
1988 5.08 2.10 7.69 18.75
1989 5.22 2.08 9.25 19.94
1990 5.55 2.15 7.35 19.77
1991 5.07 2.30 8.41 22.51
1992 5.08 2.32 11.20 25.74
1993 5.64 2.57 11.10 29.19
1994 5.67 2.90 9.810 31.20
1995 6.83 2.12 10.00 32.40
1996 7.05 2.12 10.90 31.70
1997 8.45 2.13 11.50 25.58
1998 8.04 2.11 10.78 29.05
1999 7.06 2.07 11.25 31.48
2000 7.32 2.05 10.70 32.74
Av. Ann. Increase ( percent) 1.53 -0.39 2.00 2.97
Source: 1. Office of Agricultural Economics. 2. Department of Fisheries

Table 2: Average retail price (Baht/kg) of selected animal protein food

Item/Year 1996 1997 1998 1999 2000
Pork 78.22 79.54 78.37 81.62 72.28
Beef 70.05 82.47 90.96 98.54 108.45
Chicken 62.70 67.16 71.20 71.02 67.58
Marine Fish (Medium Size)
- Indo-Pacific Mackerel 42.63 43.79 48.45 53.08 52.43
- Black tiger shrimp 161.82 175.74 231.30 186.00 210.42
- Squid 81.11 86.68 90.00 83.29 74.96
- Green mussel 18.44 17.50 17.50 20.00 20.76
Freshwater fish (Medium Size)
- Walking Catfish 37.23 37.47 42.89 38.72 37.85
- Nile Tilapia (2-3 pc./kg.) 30.08 35.85 40.00 40.00 35.34
- Striped Snakehead 78.42 80.58 83.35 83.41 85.23

6.2 Annual Per capita Fish Consumption

We estimated annual per capita consumption by species, types of consumers and location, both in inland
provinces and in coastal provinces based on a field survey on consumers conducted during 1998-1999 and
2001-2002. A total of 756 consumers were sampled. Table 3 shows annual per capita consumption of fish by

4
From balance sheet. Figure varies slightly from FAO statistics due to the difference in using conversion ratio of processed fish to
live weight.
 - 199 -
Thai people residing in inland provinces to average 28.8 kg, of which 92.5 percent is in the form of fresh
fish. Tilapia is the preferred freshwater fish (29.6 percent), followed by Thai silver barb (16.3 percent) and
striped snakehead (15.4 percent). For the people residing in coastal provinces (Table 4), per capita
consumption proved to be much higher to average 45.21 kg, of which 81.2 percent is in the fresh form.
Marine fish is most preferred (32.4 percent)5, followed by shrimp (12.2 percent) and mollusc (10.8 percent).
It is observed that people consume dried products at high proportion (18.8 percent).

6.3 Fish Consumption by Types of Consumers and by Sources

Annual per capita intake of fish classified by types of consumers in rural and urban areas is also shown in
Table 3. Urban consumption in inland provinces amounted to only 19.92 kg, which was much lower than the
quantity of fish consumed by rural people. Fish intake is as high as 34.92 kg for rural producers and 28.68 kg
for rural non-producers. These figures illustrate the importance of fish as a source of protein for rural
consumers to meet their nutritional requirements. Consumers in urban areas may have an option to access a
variety of other animal protein food.

Urban consumption in coastal provinces amounted to 42.59 kg, lower than rural producers that consume fish
at a level of 53.56 kg, but higher than 40.74 kg taken by the rural non-producer. Fish consumption is higher
in coastal provinces than in inland provinces for all consumer groups. Easy access to fish supply in coastal
areas are apparent especially for fishers in the fishing community.

Over half of the fish consumed by rural producers in both areas come from capture fisheries, and the
majority of fish for rural non-producers and urban consumers is purchased. The composition of species in the
fish basket differs for rural and urban consumers in inland provinces. Tilapia ranks first on the list for all
consumer types (24-32 percent). Snakehead ranks second for both rural non-producers and urban consumers,
whereas silver barb is second to tilapia for rural producers. For all types of consumers in coastal provinces,
the species composition has a uniform pattern.

Table 3: Annual per capita consumption by species and types of consumers in inland provinces
Rural
Species Urban All
Producer Non-producer
1. No of Household 170 167 119 456
2. Quantities by Species (kg)
Common carp 0.84 0.36 0.12 0.48
Thai silver barb 7.92 4.20 0.60 4.68
Tilapia 11.04 8.76 4.68 8.52
Walking catfish 3.00 3.84 1.80 3.00
Snakehead 4.44 5.40 2.88 4.44
Other freshwater fish 4.32 2.76 2.04 3.12
Marine fish 1.32 1.68 4.80 2.40
Total Fresh fish 32.88 27.00 16.92 26.64
Dried fish 2.04 1.68 3 2.16
Total (incl. dried fish) 34.92 28.68 19.92 28.8
3. Quantity by source (kg)
Purchased 10.32 20.64 19.44 16.56
Captured 24.6 8.04 0.48 12.24
Total: 34.92 28.68 19.92 28.8

5
Indo Pacific Mackeral accounts for a half.
 - 200 -
Table 4: Annual per capita consumption by species and types of consumers (Coastal Provinces)
Rural
Species Urban All/Average
Producer Non-producer
1. No of Household 92 111 99 302
2. Quantities by Species (kg)
Marine Fish 16.79 14.30 13.08 14.66
- Indo-Pacific Mackeral 6.61 7.74 6.59 7.02
- Others 10.18 6.56 6.49 7.64
Freshwater fish 3.58 4.32 2.94 3.64
Shrimp 7.88 4.24 4.75 5.52
Cephalopod 5.06 3.89 3.83 4.22
Mollusc 5.72 3.85 5.27 4.88
Crab 6.76 2.35 2.69 3.80
Dried Fish 7.76 7.79 10.03 8.48
Total (include dried fish) 53.56 40.74 42.59 45.21
3. Quantity by source (kg)
Purchased 23.06 36.94 40.31 33.81
Captured 30.49 3.80 2.28 11.40
Total: 53.56 40.74 42.59 45.21

6.4 Fish Consumption by Location

People in different regions tend to differ in their cultures, traditions, socio-economic status, attitudes etc.
Thus, quantities of fish consumed and preference for species vary also. Results of the survey on consumption
by regions reveal that per capita intake of fish is highest in the Inner Gulf area (57.17 kg), followed by the
South/Gulf side (52.14 kg), the northeast (33.8 kg), the East/coastal (33.07 kg), the northern (32 kg), the
South/Andaman Sea side (31.75 kg) the eastern inland provinces, (29.8 kg), the western (28.5 kg) and the
central (23.1 kg) regions of the country. It is observed that despite the fact that per capita income in the
northeast is lowest but fish consumption is rather high, suggesting that the Thai people in this region have
easy access to freshwater fish, both from natural and cultured sources (Table 5 and 6).

Table 5: Annual per capita consumption by species and region in inland provinces
Species Central West East North Northeast
1. No. of Households 167 55 47 88 99
2. Quantities by Species (kg)
Silver Barb 2.04 3.96 4.20 8.16 6.60
Tilapia 5.28 11.16 12.48 9.60 9.60
Walking Catfish 2.28 2.28 3.24 3.72 3.72
Striped Snakehead 3.84 6.00 4.92 4.20 4.44
Other Freshwater Fish 3.00 3.12 1.32 4.20 5.76
Marine Fish 4.20 0.36 2.16 1.08 1.44
Total-Fresh Fish 20.64 26.88 28.32 30.96 31.56
Dried Fish 2.49 1.62 1.51 1.08 2.27
Total (Incl. dried fish) 23.13 28.50 29.83 32.04 33.83
 - 201 -
Table 6: Annual per capita consumption by species and region (Coastal Provinces)
Eastern Western
Species East Inner Gulf
South South
1. No. of Households 60 61 120 61
2. Quantities by Species (kg)
Marine fish 13.04 11.26 19.06 10.94
- Indo Pacific Mackerel 3.77 6.58 10.74 3.28
- Others 9.28 4.68 8.32 7.67
Freshwater fish 2.88 8.76 2.77 0.96
Shrimp 1.79 8.50 7.12 3.02
Cephalopod 3.52 2.80 4.83 5.17
Mollusc 3.76 6.89 4.85 4.06
Crab 3.32 3.08 3.98 4.66
Dried Fish 4.76 15.89 9.54 2.93
Total (Incl. dried fish) 33.07 57.17 52.14 31.75

6.5 Fish Expenditure (Table 7)

Fish expenditure by areas

Based on survey results, average annual per capita expenditure of the Thai people residing in inland
provinces and coastal provinces, are shown in Table 7. Discrepancies in income are apparent between two
groups. The former spend only 19 872 Baht, of which food expenditure shared about 40 percent and fish
expenditure shared about 16 percent. The latter spend as much as 29 953 Baht, of which food expenditure
and fish expenditure constitutes about 36 percent and 24 percent, respectively.

Expenditure on fish of those who live in inland provinces is divided into eight groups: common carp, Thai
silver barb, tilapia, catfish, snakehead, other freshwater fish, marine fish and dried fish. In terms of money
spent on buying fish, snakehead was most preferred (22.8 percent). Tilapia, dried fish and marine fishes
followed next in line.

Fish expenditure spent by people in coastal provinces is divided into seven groups: marine fish, freshwater
fish, shrimp, cephalopods, mollusc, crab and dried fish. Of total fish expenditure, shrimp shared the highest
proportion about 29.8 percent, followed by marine fish, crab and dried fish.
Table 7: Annual per capita expenditure
Average Annual Expenditure (Baht/year)
Inland Provinces Coastal Provinces
Average Urban Rural Average Urban Rural
1. Total 19 871.40 30 578.64 16 090.44 29 953.20 35 466.84 27 264.24
2. Food 8 010.72 8 928.24 7 686.72 10 913.76 12 878.76 9 958.56
percent out of 40.31 29.20 47.77 36.44 36.31 36.53
total
3. Non – Food 11 860.68 21 650.40 8 403.72 19 039.44 22 594.56 17 305.68
percent out of 59.69 70.80 52.23 63.56 63.71 63.47
total
4. Fish * 1 250.40 1 444.92 1 181.76 2 586.72 2 576.28 2 591.76
percent out of 6.29 4.73 7.34 8.64 7.26 9.51
total
percent out of 15.61 16.18 15.37 23.70 20.00 26.03
food
* Including dried fish
 - 202 -
Fish expenditure by types of consumers

Total expenditure of urban consumers in inland provinces was almost double that of rural consumers. Of the
total expenditure, the latter allocated almost a half to food items (47.8 percent) whereas the former spent only
29.2 percent. The share of money spent on fish by urban consumers (4.7 percent) was less than that by rural
consumers (7.3 percent). The proportion of expenditure on fish in the food budget was not differed (15-
16 percent).

For consumers in the coastal provinces, less discrepancy in expenditure between urban consumers and rural
consumers was observed. Of total expenditure the two groups allocated 36 percent to food items. Out of food
expenditure, the urban consumers spent 20 percent and rural consumers spent 26 percent. Generally, urban
consumers had a higher fish expenditure than rural consumers. However, species composition in their fish
baskets commanded higher prices that made lower per capita consumption. Marketing is the tool, which
segregate production according to source, size and quality to sell the products in the markets that serve
different groups of consumers. It was observed some peculiar species have appeared in upper-level markets
and to serve the tourist trade, such as marine shrimp, freshwater prawns and sand gobies. Species like indo-
Pacific Mackerel, tilapia, Thai silver barb, walking catfish, snakehead, and Chinese carps etc., are produced
for city markets. Most of the herbivorous species and smaller sizes are sold to low-income markets or in rural
areas.

6.6 Prices of Individual Species (Tables 8 and 9)

For freshwater fish, on average, snakehead commanded the highest price (68.58 Baht/kg) among freshwater
fishes as measured in Baht/kg, followed by Thai silver barb (30.00 Baht/kg) and tilapia (28.47 Baht/kg).
Snakehead is sold in large sizes of about two pcs/kg. Sizes of other species were smaller, ranging from 3-
5 pcs/kg.

For marine species, shrimp commanded the highest prices (143.41 Baht/kg), followed by crab (95.47
Baht/kg). Generally, the price paid by urban consumers is higher than that paid by their rural counterparts for
the same species. This may be attributed to the larger sizes of fish sold to urban consumers. Comparing retail
prices paid by rural producers and non-producers, it is evident that non-producers in inland provinces pay
more. Access to the market is the likely dominant factor contributing to price differences in addition to the
size of fish. However, prices paid by rural producers and non-producers in coastal provinces are not
significantly different, given the same size of fish.

Table 8: Prices (Baht/kg) by species and sizes (pieces/kg) in Inland Provinces

Rural
Urban All
Species Producer Non-Producer
Size Price Size Price Size Price Size Price
Tilapia 3.71 29.56 4.03 26.24 3.88 29.08 3.87 28.47
Thai Silver 4.32 33.04 4.25 28.26 4.35 30.26 4.31 30.00
Barb
Common Carp 3.08 35.00 3.39 33.61 3.22 38.06 3.28 35.29
Catfish 4.25 30.11 5.17 28.28 4.96 28.54 4.83 28.87
Snakehead 2.08 77.20 2.46 63.35 2.61 66.17 2.42 68.58
Marine Fish 8.23 93.91 9.81 59.12 9.12 64.24 8.92 75.43
Other 4.36 76.13 6.56 41.80 7.68 45.51 6.19 56.66
freshwater Fish
Dried fish - 151.05 - 71.18 - 91.28 - 104.79
 - 203 -
Table 9: Prices (Baht/kg) by species and size (pieces/kg) in Coastal Provinces
Rural
Urban All
Species Producer Non-Producer

Size Price Size Price Size Price Size Price

Marine fish
-Indo-pacific 13.04 35.55 11.51 35.29 11.66 34.54 12.13 35.06
mackerel
-Others 6.85 67.51 7.85 64.06 9.52 50.05 8.25 59.15
Freshwater 4.63 48.56 5.40 44.02 4.93 49.63 4.95 48.10
fish
Shrimp 58.08 154.79 79.58 142.20 81.11 132.36 71.13 143.31
Cephalopod 17.06 59.21 17.75 62.19 18.94 59.85 18.07 60.32
Mollusc 51.19 31.39 30.39 33.94 42.83 27.90 44.48 30.62
Crab 7.25 99.71 10.17 100.83 6.92 87.97 7.87 95.47

7. CONCLUSION AND ISSUES ON FOOD SECURITY IN THAILAND

Fisheries production in Thailand has increased steadily over the past two decades. Both captured fish and
cultured fish sources are scattered throughout the country. Fish is an important source of animal protein for
the Thai people. Aquaculture has an increasing role in supplying food fish for domestic consumption and
international trade. Since per capita fish consumption is over 30 kg, international fish trade intuitively has no
negative impact on domestic fish consumption. However, continued increases in population will result in
greater demand for fish. Domestic fish supply should grow with demand to secure fish protein intake. The
main issues that are to be addressed include the below indicated points.

7.1 Production Aspect

For marine capture fisheries, overfishing in the Thai waters is the chronic problem, which needs efficient and
effective management in order to allow fisheries to sustain its contribution to food security. Additionally,
trash fish that is caught by non-selective gear should be minimized, since about 50 percent is composed of
juvenile fish. Improvement of fishing gear selectivity and fishing methods is expected to secure the domestic
supply of food fish for the Thai people.

T o ta l F o o d F is h a n d T r a s h F is h in T h a i W a te r s
(T h o u sa n d to n s) (1 9 8 7 -1 99 9)
1 ,4 0 0 .0

1 ,2 0 0 .0

1 ,0 0 0 .0

8 0 0 .0

6 0 0 .0

4 0 0 .0

2 0 0 .0

0 .0
1988

1989

1990

1991

1993

1994

1995

1996

1998

1999
1987

1992

1997

T o t a l F o o d F is h T o t a l T r a s h F is h F o o d F is h ( G u lf ) T r a s h F is h ( G u lf )
 - 204 -
Cultured shrimp is a major export item that helps generate income and employment. Sustainability is of
major concern. Shrimp culture has been accused of mangrove area encroachment and causing environmental
degradation, as well as water pollution through deficient management. The environment issues are addressed
as a main hindrance to international trade, and improving shrimp culture sustainability is an urgent need.
Possible solutions include:
x improve marine shrimp culture zones with appropriate management
x develop/improve infrastructure system
x impose farming standard, with supervision system including control over hatcheries
x encourage participation of local administration organization to control operation and water
discharges
x create motivation and benefits to shrimp farmers in employing environment friendly farming
practices.

The Government should encourage the development of new species of fish and new domestic markets such
as speciality markets and international markets, to stimulate additional growth of production. Furthermore,
programs could be coupled with new technologies to improve high-yielding and high-valued strains of fish.
New techniques need to be devised for integrating environmental concerns into management decisions.

7.2 Marketing Aspect

Some fish is lost after harvest and before reaching the consumer, priority should also be given to the
handling of fish efficient through the entire marketing chain. Although some progress has been made,
applied knowledge of how to maintain the quality of fish, is still lacking. Improved market facilities are
needed that result in a more hygienic environment, as well as other proper amenities. Waste and
contamination of fish could be reduced through proper handling techniques. Consumer awareness regarding
good handling practices has to be encouraged. It is necessary to educate fishers/farmers, processors and
consumers about methods of handling aquatic products, including home processing, preparation, quality and
the nutritional value of fish.

7.3 Consumption Aspect

Building greater awareness of the nutritional value of fish and promoting the consumption of fish as a regular
dietary staple are important steps.

7.4 International Fish Trade Aspect

Thailand has become a member of the World Trade Organization (WTO) in 1994. The fisheries sector in
Thailand has been aware of the impact of WTO agreements on fish trade. So far, there are several forms of
trade restrictions put into effect by many developed nations. However, the challenges to trading partners are
still limited due to the fear of interruption of market access. Measures claiming to protect global environment
may discourage free trade and raise cost of exported products.

- Product specification standards (e.g. labelling) which vary among the importing countries, even if not
intended to restrict trade due to the lack of transparency or complications in their application, can turn to be
actual restrictions.
- The issues relating to SPS measures that may impact fish trade are; arbitrary and non-science based sanitary
and food safety measures used to protect human, animal lives, as well as to limit market access.

Therefore, strengthening the research on food safety risk analysis in preparation for measures to be taken
against and joint risk analysis studies should be done. Moreover, jointly work on Code of Conduct on Fish
Utilization among agencies responsible for SPS measures is necessary.

Requirements of health certificates of different forms and languages, such as EU health certificate, including
certificate of origin, and non-GMO certificate have excessively created administrative barrier to trade. Trade
restrictions as mentioned above may cause reduction in both volume and value of fish trade and hence lower
 - 205 -
national income. This will finally be a negative impact to the people’s purchasing power and hence food
security.

7.5 Income Distribution

While continued growth of export earnings is needed for its contribution to wealth and well-being of society
as a whole, the bottom line remains the issue of proper income distribution to achieve poverty reduction and
improved food security in the poor segment of society. In conclusion, strong actions in better fisheries
resource management, better protection of the environment and sustainable development of aquaculture as
well as promotion of efficient marketing system, transparency in international fish trade and proper income
distribution are the keys for food security in Thailand.

REFERENCES

Department of Fisheries. (Various Issues). Annual Fisheries Statistics of Thailand. Fisheries Economics
Division, Department of Fisheries, Bangkok.
Department of Fisheries. (Various Issues). Statistics of Cultured shrimp Production in Thailand. Fisheries
Economics Division, Department of Fisheries, Bangkok.
Department of Fisheries. 2001. Country Paper: Thailand. Regional Technical Consultation on Fish Trade in
the ASEAN region, 9-11 April 2001. Bangkok.
Institute for Management Education for Thailand Foundation. 2002. Study Highlights: Competitiveness of
Thailand’s Black Tiger Shrimp Industry. The Fourth Workshop on National Marine Shrimp, 18-19
November 2002. Rayong, Thailand.
Somying Piumsombun. 1996. Marine Fisheries Crisis in Thailand: Lessons for Review and Resolve.
Research Paper No.16/1996. Fisheries Economics Division. Department of Fisheries, Bangkok. (Thai
version).
Somying Piumsombun. 2001. Production, Accessibility and Consumption of Freshwater Fish Culture in
Thailand. ICLARM/FAO project.
Somying Piumsombun. 2002. The state of Thai Fisheries and Fisheries Development Policies. Thai
Fisheries Gazette. Volume 55, Number 4, July-August. Department of Fisheries, Bangkok.
 - 206 -

STATUS OF FISH TRADE AND FOOD SECURITY IN VIET NAM

by

Nguyen Huu Dung

National Director for SEAQUIP and
Secretary General for Vietnamese Association for Seafood Exporters and Producers (VASEP)
Hanoi, Viet Nam

Abstract
Over the past decade exploitation of fisheries resources and aquaculture in Viet
Nam has grown rapidly fuelled mainly by an increasing demand from foreign
markets, but domestic consumption of fisheries products is also growing. In 2002
the fisheries sector ranked third with total export revenue of US$ 2 014 million - a
13.31 percent increase over 2001 and took 11 percent of the Viet Nam national
export earning. The export growth is foreseen to continue and the target for 2005 is
US$ 3 billion in export turnover. It is estimated that around 3.4 million people
(equal to around four percent of the population) derive their income directly from
aquaculture and capture fisheries. Furthermore, the increasing number is involved
in processing, trading of fisheries product and related activities needs to be kept in
mind. However, the total number of people whose livelihood is dependent on the
fisheries resources and aquatic resources as a whole is much larger. The increasing
international fish trade is having positive effects on the food security in Viet Nam.
Notably, the expansion of aquaculture provides employment, higher income and an
improved food consumption pattern for millions of people. Sustainable
development of aquaculture has become part of the national strategy for poverty
alleviation. The focus on export has also resulted in improved food-hygiene safety
standards in order to meet the strict requirements in mainly the EU and North
American markets. This development has also improved the quality of products
produced and thereby the value. The success of the fisheries sector has sparked an
increasing interest in investing in the sector. Investments have risen sharply in
recent years mainly in aquaculture activities and the processing industry. State
capital accounts only for a small share of the total investments. Foreign capital is
increasingly entering into the fisheries sector. Development of human resources is
another positive effect, which is closely related to the increasing international
trade. Besides from providing employment for an increasing number of people,
more mainly low skilled people are being trained throughout the entire value chain.
The focus on high-value-added products for export and a growing diversification in
terms of export markets are also having a positive and stabilizing effect on the
sector as a whole. Increased export earnings are enabling the sector to step up its
marketing efforts in overseas markets. It should be noted that it is a constraint to
this analysis, that information on domestic utilization of fish and fisheries products
in Viet Nam is very limited.

1. INTRODUCTION

With integration into the world economy, Viet Nam’s international trade is rapidly increasing. This is
providing both opportunities and challenges for the Vietnamese enterprises and people - not least for the
fisheries sector in Viet Nam, which is one of the most important economic sectors in the country. The
fisheries sector has a significant impact on the economy as a whole and the millions of people whose
livelihood is dependent on the fisheries sector as a source of income, employment and nutrition. The
Government has stressed that in parallel with economic development and growth, Viet Nam must also
concentrate on food security and poverty alleviation. The Ministry of Fisheries (MOFI) acknowledges the
fisheries sector’s important role in this development and, over the past years, aquaculture has proved to be an
excellent tool for achieving these goals in rural areas in Viet Nam.
 - 207 -

This paper seeks to provide a brief overview of fish trade and its impact on the food security situation in Viet
Nam. Firstly, a short overview of the development in exploitation of fisheries resources and international fish
trade will be provided in order to give the reader an up to date picture of the current status of the Vietnamese
fisheries sector. Secondly, an analysis of the fish trade’s impact on the food security will focus on the areas
where international trade has positive effects on the industry as a whole. Finally, the paper will focus on Viet
Nam’s participation in the international trade arrangements.

It should be noted that it is a constraint to this analysis, that information on domestic utilization of fish and
fisheries products in Viet Nam is very limited.

2. EXPLOITATION OF FISHERIES RESOURCES

Over the past ten years the output of fisheries production has more than doubled. In 2002 the output for the
whole sector reached 2 410 900 tonnes, an increase of 5.4 percent compared to 2001 (MOFI, 2003). Figure
2A provides an overview of fish landings in Viet Nam over the last decade. Total fish landings can be
divided into two main categories; aquaculture & and inland catches and marine catches.

Figure 2A: Development in total fish landings in Viet Nam 1991 - 2002

Fish landings
2500

2000 Aquaculture &

inland catch
1500
in 1000 tons Marine catch
1000
Total fish
500
landings
0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Source: MOFI, 2003.

As can be seen from figure 2A, the output for marine catch and aquaculture and inland catch has increased
rapidly over the past 10 years. A decline in inshore fishing has been off-set by an increase in off-shore
catches so that the overall marine catches continue to increase. The decline in inshore fishing is a result of
over exploitation, habitat changes and poor management, which have led to an increase in unemployment in
some coastal communities (Oxfam, 2000).

Aquaculture is expanding throughout Viet Nam and it is projected to become the main source for providing
raw material for export. Further to that aquaculture plays an important role in the Government’s poverty
alleviation strategy. The total area with aquaculture was 955 000 hectares in 2002 up from 626 330 hectares
in 1998 (MOFI, 2002). Of the 955 000 hectares, freshwater areas count for 425 000 hectares and brackish
and marine water for 530 000 hectares (MOFI, 2003).

3. INTERNATIONAL FISH TRADE

The fisheries sector has developed to become one of the leading sectors in terms of export revenue in Viet
Nam. In 2002 the fisheries sector ranked third with a total export revenue of US$ 2 014 million - a
13.31 percent increase over 2001 (MOFI, 2003). In terms of volume the export reached 440 000 tonnes in
2002 up from 358 000 tonnes in 2001 (MOFI, 2003). During the period 1998 to 2001, the export value has
doubled. In 2001, it accounted for 11.7 percent of the national export turnover (MOFI, 2003).

The MOFI is expecting that the export figure will increase to US$ 3.0 billion by 2005 and US$ 4.5 to 5.0
billion in 2010 anticipating an annual growth rate between 5 and 9 percent over this period.

In 2002, the product and market strategy has been further diversified and strengthened. The export to the
American market has increased significantly and is now the biggest market for Vietnamese seafood export as
can be seen from table 3A.
 - 208 -

Figure 3A: Development in the Vietnamese seafood export 1992-2002

Development in seafood export

2500 60

2000 50
Million US$

40
1500
Seafood export value

%
30
1000 Annual growth rate (%)
20
500 10
0 0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Source: MOFI, 2003.

This development is closely linked with the implementation of the bilateral trade agreement between the two
countries, which was ratified in late 2001. Export to China has increased slightly in value while the Japanese
market experienced a small decrease in value. However, both markets remain key markets for Vietnamese
seafood export. The EU market accounts for a low portion but is still a important contributor to the success
of the Vietnamese seafood industry due to positive feedback from this “hard-to-be” accessed market. Table
3B provides an overview of the main markets for the Vietnamese seafood export.

Table 3B: Main export markets in percent of total export value 2000 - 2002
Share of total export value in percent
Market Year
2000 2001 2002
Japan 33 26 27
USA 21 28 32
China (incl. Hong Kong) 20 18 16
EU 7 6 4
Source: MOFI, 2003.
The Asian financial crisis in 1997 also severely affected the Vietnamese fisheries sector, as the export in
1997 was very much concentrated on the Japanese market. Consequently, a diversification strategy has been
pursued and the obvious results are clearly illustrated in figure 3C.

Figure 3C: Export of Vietnamese fisheries products by main markets 1997 - 2002

Export by main markets

60
50
40 Japan
USA
%

30
EU
20
China
10
0
1997 1998 1999 2000 2001 2002

Source: MOFI, 2003.

The fisheries products for export can be divided into four main groups as listed in table 3D. In 2001 export
measured by volume and value increased for all product groups except the value of dried fisheries products
 - 209 -

as compared to 2000. Frozen shrimps are the major product for export and accounted for 44 percent of the
total export value in 2001 (VASEP, 2002).

Table 3D: Total export of fisheries products from Viet Nam 2000 – 2001 (1000 tonnes & mill. US$)
Export by volume Export by value
Main product groups/ In percent of total value
in 1000 tons in million US$
volume & value
2000 2001 2000 2001 2001
Total of which main groups are: 267 339 1,478 1,777 100 percent
Frozen fish products 75 105 229 310 17 percent
Dried fisheries products 30 34 198 188 11 percent
Frozen cephalopods 37 43 109 118 7 percent
Frozen shrimp 68 87 668 781 44 percent
Source: VASEP, 2002.
As table 3E illustrates then the fisheries sector has also managed to diversify its export in terms of main
groups of fisheries products. The portion of value-added products has been increased dramatically from
17.5 percent to 35 percent during a four-year period from 1998 to 2001 (DANIDA, 2002).

Table 3E: Major export markets for main groups of fisheries products in 2001 (mill. US$)

Main product groups/ China incl. ASEAN Total

Japan USA EU
markets Hong Kong countries value

Frozen fish products 49 14 59 16 72 310

Dried fisheries products 19 0.7 0.3 138 6 188
Frozen cephalopods 61 3 10 13 6 118
Frozen shrimp 289 339 52 25 13 781
Source: VASEP, 2002.
Statistics on seafood import are not very detailed and it is therefore difficult to undertake a comprehensive
analysis. Due to rapid increase in seafood export as well as domestic consumption, import of seafood raw
material and processed seafood products are also on rise. The total import for 2001 was according to
statistics 7 700 tonnes whereas the import for the period January to September 2002 stood at 13 800 tonnes.
China, India and Taiwan (DANIDA, 2002), are the originators of the majority of import.

Given the continuous increase in seafood export with the target for 2005 being US$ 3 billion, it is clear that
the raw material base in Viet Nam cannot alone be developed to cover the growing demand. Therefore it is
anticipated that by 2005 import of raw material for processing will cover 10 to 15 percent of the demand
(MOFI, 2002). If the export target is achieved this would then correspond to an annual import of seafood raw
material alone for processing in the range of 60 000 to 90 000 tonnes (DANIDA, 2002). Additionally, there
is the import of seafood products for the domestic market, which also is set to increase.

4. EMPLOYMENT AND DOMESTIC CONSUMPTION

The MOFI estimates that in 2001 about 3.4 million people were directly involved in aquaculture activities
and in capture fisheries (FAO, 2001a) and this number is increasing especially as aquaculture activities are
expanding in rural areas throughout the country. The total number of people active in the sector is still
increasing. Rice farmers are increasingly introducing fish in their rice fields and in mountainous areas more
and more carp is cultured in small ponds often situated next to the farmhouses. In coastal areas where the
culture of rice, as a result of low soil fertility and the sandy soil does not bring much profit and the price of
salt is decreasing constantly, many rice and salt farmers are changing to shrimp culture. Open access regimes
and low investment needed facilitate the entrance of thousands of new laborers in these activities every year.
The MOFI estimates that currently the fisheries sector offers direct employment to about four percent of the
population. However, the total number of people dependent for their livelihoods on the fisheries resources
and aquatic resources as a whole is much larger (FAO, 2001b).
 - 210 -

Fisheries and aquatic products are an indispensable part of domestic food supplies for the whole country,
providing more than 30 to 40 percent of the protein in Vietnamese diets (Oxfam, 2000). MOFI estimates that
between 60 to 70 percent of the cultured and caught fisheries products are consumed domestically
(DANIDA, 2002). Home consumption of fish in Viet Nam was estimated by FAO at 17.4 kg per capita per
year in 1997, an increase of 68.3 percent compared to the consumption in 1992. Of this 17.4 kg about 5.7 kg
is freshwater and diadromous fish (FAO, 2001a). The National Institute of Nutrition in Hanoi estimated that
annual fish consumption per capita in Viet Nam at 18.5 kg in 1995 (FAO, 2001a). A recent survey
undertaken jointly by Food and Agriculture Organization (FAO), MOFI and Danish International
Development Agency (DANIDA) indicates that the actual domestic consumption could be much higher than
the above-mentioned estimates (DANIDA, 2002). A continuous increase in the total domestic and per capita
consumption of fish is observed in all three surveys.

Fish marketing patterns in Viet Nam are rather complex, because of the large range of geographical areas
served, the assortment of products offered, the large number of traders active in the sector, the seasonality of
production, and the various linkages (direct and indirect) between producers and consumers. A large share of
the marine catch products has a low economic value and is sold on the domestic market. Marine products of
high economic value are mainly exported, especially tuna, shrimp and squid. Of the aquaculture products
most shrimp (black tiger) and catfish are exported, while carp is consumed primarily domestically.

5. INTERNATIONAL FISH TRADE’S IMPACT ON FOOD SECURITY IN VIET NAM

The current growth in the fisheries sector, which is closely linked to the growing export, is having a
substantial impact on development in food security in Viet Nam as both coastal and non-coastal regions are
engaged in production, processing, consumption and exporting of fisheries products. In this respect
aquaculture is identified as a sub sector with significant potential for further improving the food security
situation and alleviating poverty.

5.1. Focus on Sustainable Aquaculture

In recent years attention has been drawn to the role of sustainable aquaculture as part of the national poverty
alleviation strategy. This has led to the formulation of the Sustainable Aquaculture for Poverty Alleviation
Strategy (SAPA), which addresses the issue of poverty alleviation and the improvement of the livelihoods of
people living in rural areas and the fundamental role of aquatic resources management in sustaining poor
people’s livelihoods. Experiences gained during the last decade in Viet Nam and other countries shows that
the development of aquaculture can make a significant contribution in the development of the rural areas, not
only via a higher income to the rural households than common rice culture, but also enrich the households
own food consumption pattern. While real revenues from rice cultivation have increased by 21 percent over
the period from 1993 to 1998 then real revenues from aquaculture rose by 55 percent over the same period
(MOFI, 2001). Overall there has been a dramatic improvement in incomes of rural households, which has
risen by 61 percent from 1993 to 1998 (MOFI, 2001).

The importance of aquaculture in poverty alleviation is also highlighted in the Comprehensive Poverty
Reduction and Growth Strategy adopted by the Government in May 2002.

Aquaculture in Viet Nam, in contrast to many countries, is performed as family-scale operations. The
operations are characterized by low-input use and requirements, including land resources with rather low
productivity, but environmental benign and providing a relative high economic efficiency. As previously
mentioned, more than 700 000 people are directly involved in aquaculture activities in Viet Nam. Commonly
80 percent of the households in coastal communities get their income from fishing while almost everybody
relies on fish captures for food consumption, as coastal communes commonly have little agricultural land
(MOFI, 2001). As inshore fishing has declined significantly over the past decade, the government has taken a
number of measures to support aquaculture development in coastal areas as well as in inland areas. In 1999
the Government approved a development plan for aquaculture for 2000 to 2010. The objective of the
development plan is to ensure food security for Vietnamese people and sufficient raw materials for
processing and export. The programme expects aquaculture to contribute 60 to 65 percent of total production
of aquatic products by 2010 (MOFI, 2001).
 - 211 -

The export driven seafood processing industry in Viet Nam is clearly stimulating the expansion of
aquaculture, especially shrimp and catfish farming, and will generate income and employment throughout
the entire value chain. Thus, the livelihoods of communities through direct involvement in aquaculture
production would be stabilized, as well as for those who provide services to aquaculture. The rapid
expansion of aquaculture in Viet Nam is clearly illustrated in figure 5.1.A, which shows the development in
investments in aquaculture over the past three years.
1
Figure 5.1.A: Investments in aquaculture 2000 – 2002 (bill. VND)

Investments in aquaculture

3500 60 Aquaculture
3000 50
2500 40
Bill. VND

2000

%
30
1500
20 % of total
1000 investment
500 10 in the
0 0 fisheries
2000 2001 2002 sector

Source: MOFI, 2003.

5.2. Improved Product Quality

Requirements on product quality, especially in terms of hygiene and safety conditions, are getting stricter in
export markets noticeably in the EU and North American markets. This is one of the major challenges for the
Vietnamese seafood industry in ensuring the competitiveness in the international markets.

The strict international food-hygiene safety standards have been one the main concern of MOFI and attention
has been given to the following tasks:
x Establishing and promulgating the national legal framework including food-hygiene
standards meeting the standards of the importing countries;
x Establishing and strengthening the capabilities of hygiene safety control agencies;
x Guiding fisheries enterprises to repair and upgrade workshops, renovate equipment and
technology, organize training courses in the implementation of promulgated food-hygiene safety
standards.

As a result the food-hygiene safety standards have improved considerably in most of Viet Nam’s 260
processing enterprises. To date 68 enterprises have received the EU Code compared to just 18 in 1997, and
32 other establishments have been listed and proposed by NAFIQACEN to receive EU code. 132 enterprises
are implementing HACCP (Hazard Analysis and Critical Control Point) and meet the requirements of the
American market (MOFI, 2003).

5.3. Increased Investments in the Fisheries Sector

The success of the fisheries sector primarily driven by the increasing export, has led to a significant increase
in the total investment in the sector. The mobilization of capital clearly indicates the restructuring taking
place in the sector. Public investments are low and continue to decrease. In 2002 only 8.9 percent of the total
investments came from the state budget (MOFI, 2003). Capital raised in the debt market finances the
majority of the investments, but an increasing share is financed by re-investing profits indicating an
increasing profitability in the sector. In 2002 re-investments accounted for 25.9 percent of the total invested
capital an increase of 23.8 percent compared to 2001. Foreign investment has also started to flow into the
fisheries sector mainly in processing activities. This is an important development, as foreign investments
tend to bring in modern technology and know-how.

1
US$ 1 = VND 15,300 as of 1 January 2003.
 - 212 -

While investments in the processing industry appear to be slowing down, the investments in aquaculture are
rapidly increasing as mentioned previously. Total investments in aquaculture increased by 84 percent in 2002
as compared to 2001 (MOFI, 2003). An important observation is that initial large-scale investments in the
processing industry, sparked by a high export demand, are now resulting in a fast growing demand for raw
material from aquaculture and thereby stimulating the expansion of this sub-sector in Viet Nam. The
development in investments in the fisheries sector is illustrated in figure 5.3.A.

Figure 5.3.A: Total investments in sub-fisheries sectors 2000 – 2002 (bill. VND)

Investments in the fisheries sector

6000

5000
Aquaculture
4000
Bill. VND

Processing
3000
Infrastructure
2000 Marine exploitation
1000 Total investments

0
2000 2001 2002

Source: MOFI, 2003.

Improved access to credit schemes has also given many poor households the opportunity to enter the
fisheries sector and primarily aquaculture where the entry costs are low.

5.4. Human Resource Development

The increased employment within the sector notably in aquaculture production and the processing industry
means that a significant number of low-skilled people are being employed and receives further education and
training.

The development of human resources is particularly important for the continuous improvement of the
environmental standards and food-hygiene safety standards in the entire value-chain. Extension activities
have been speeded up also with support from international donor funded projects. Until now the success has
been remarkable and ongoing extension projects are to be further expanded.

Projects focusing on the development of environmental sustainable management in particular related to

aquaculture activities have also resulted in improved management systems. However, overall the awareness
of environmental protection remains low. In freshwater fisheries as well as in costal areas aquatic resources
are under threat from environmental degradation, over exploitation and poor management practices. This
poses a significant risk to not only the environment but to the fisheries sector as a whole and notably the
export.

5.5. Improved Product and Market Diversification

The increased product and market diversification which has taken place in recent years has made the
fisheries sector less risk adverse to fluctuations in the international market and changes in consumer behavior
in foreign markets. More focus on food-hygiene safety standards and high-value added products has also
increased the demand for Vietnamese fisheries products resulting in a higher turnover and consequently
increasing employment and income for people working in the fisheries sector.

Increased export earnings have also made it possible to better promote Vietnamese fisheries products in
overseas markets as well as in the domestic market. In 2002 an export fund was established with this
objective in mind.
 - 213 -

6. INVOLVEMENT IN REGIONAL AND GLOBAL TRADE ARRANGEMENTS

Since 1986, when Viet Nam embarked on a process of renovation (doi moi), the country has quickly moved
towards a market economy. This progress has been marked by Viet Nam normalizing relations with the USA
(1994), membership in Association of Southeast Asian Nations (ASEAN) (1995), and the signing of the
bilateral trade agreement with the USA (2001). Further discussion about Viet Nam applying for membership
in the World Trade Organization (WTO) is ongoing.

The benefits of this ongoing integration are obvious in the fisheries sector, which is largely export driven.
Lower import tariffs in mainly the American and Chinese (mainly in the southern border provinces) markets
have contributed to the accelerating growth in the export of fisheries products to these two markets. Lower
import tariffs for fisheries products in Viet Nam, also means cheaper import to supplement the raw material
input for the processing industry as well as processed fisheries products for the domestic market. This is of
major importance as it is foreseen that the import of seafood raw material will increase sharply in the coming
years in order to meet the demand for Vietnamese fisheries products from export markets.

MOFI has signed a number of agreements and memorandum of understanding in the area of fisheries
cooperation. MOFI has also promoted international cooperation activities under the framework of FAO,
ASEAN and the Mekong River Commission among others.

VASEP also has entered into agreement of cooperation with many sister organizations in the region and over
the world, and became known in the world seafood market as the leading organization of the Vietnamese
fisheries sector. In November 2002, together with sister organizations from Thailand, Indonesia and
Malaysia, VASEP has jointly established the ASEAN Aquaculture Federation (AAF). The aim of the new
organization is to enhance the sustainable growth of aquaculture production in ASEAN, and to cooperate
with each other in all activities to safeguard the aquaculture industry for the benefit of ASEAN farmers and
processors.

BIBLIOGRAPHY
DANIDA. 2002. Current trends in the Vietnamese seafood industry. Hanoi.
EU. 2002. Sanitary and phytosanitary measures in the fishery sector in Viet Nam. European Commission.
Hanoi.
FAO. 2001a. Fisheries marketing and credit in Viet Nam. Project document. Hanoi.
FAO. 2001b. Fisheries marketing and credit in Viet Nam. Project inception workshop. Hanoi.
MOFI. 2001. Sustainable aquaculture for poverty alleviation – strategy and implementation. Agriculture
Publishing House. Hanoi.
MOFI. 2002. Preliminary summary of three-year implementation of seafood export development
programme. Hanoi.
MOFI. 2003. Progress report 2002 and workplan 2003. Ministries of Fisheries. Hanoi.
Oxfam. 2000. Finding a balance between riches and ruin, by Martinelli, Anne. Hong Kong.
VASEP. 2002. Statistics provided by VASEP. (Primary source is the Vietnamese Custom Authorities).
Hanoi.
 The Expert Consultation on International Fish Trade and Food Security met in
Casablanca, Morocco, from 27 to 30 January 2003. After review and assessment of the
issue, the consultation recommended to: a) conduct a background study on the
normative framework for fish trade and food security; b) organize a consultative
process on the normative framework; c) prepare technical guidelines on the Code of
Conduct for Responsible Fisheries, fish trade and food security; d) train and improve
capacity of policy-makers and technical personnel on international issues dealing with
fish trade and food security; e) integrate the fish trade and food security issues into
the proposed “FAO Technical Cooperation Project – WTO”; f) expand FAO work on
the distribution of costs and benefits in the fishing industry; g) prepare an analytical
framework taking into account conflicting interests with specific illustrative cases
studies; h) conduct studies on the impact of fish trade on household food security;
i) develop medium- and long-term projections on the impact of fish trade on food
security. In this respect: a) gender aspects and marginalized groups should be taken
into account; b) FAO Fisheries Department should continue to seek further synergies
through collaboration with other FAO departments and other competent international
agencies (e.g. International Food Policy Research Institute and World Fish Centre);
c) FAO should disseminate widely the results of the work programme, including to the
private sector using the FISHINFO network, which was recognized as an important tool
for this purpose; and d) promote regional trade for food security.

ISBN 92-5-105003-1 ISSN 0429-9337

9 789251 050033
TR/M/Y4961E/1/10.03/1700