COFI:FT/VIII/2002/Inf.12




Item 6 of the Provisional Agenda

COMMITTEE ON FISHERIES

SUB-COMMITTEE ON FISH TRADE

Eighth Session

Bremen, Germany, 12-16 February 2002

IMPACT OF INTERNATIONAL FISH TRADE ON
FOOD SECURITY



Table of Contents


INTRODUCTION

1. The Rome Declaration of the 1996 World Food Summit defined food security as the condition existing "when all people at all times have physical and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preference for an active healthy life".

2. Fish is a good source of animal protein, vitamins and essential fatty acids. In many countries it plays a considerable socio-economic and cultural role as linked to long-established traditions and food habits. Relevant FAO data indicate that while in most developed countries nearly 80 percent of the population obtain less than 20 percent of their animal protein supplies from fish, around 60 percent of those in many developing countries depend on fish for over 30 percent of their animal protein supplies. Further, fisheries industry provides substantial employment opportunities with fish exports contributing significantly towards hard currency earnings, especially in developing countries.

3. Various studies have identified a number of factors as contributing to the recent upsurge in international fish trade. These are, inter alia:

4. In developing countries, fish trade is found to enhance domestic food security mainly in two ways:

5. Nevertheless, there are conflicting views on the rationale of promoting fish exports from developing countries. According to some sources, exports could endanger the nutritional demand of the poor due to possible decline in domestic supplies. Furthermore, authoritative sources caution against the gradual decline in prices of traditional export products of developing countries such as shrimp, against a marked increase in prices for their usual imports of low value fishes including anchovies, sardines and herring.

6. In this background, FAO has initiated a study to assess the impact of fish trade on food security. The preliminary results of the ongoing investigations are presented in this paper..The study focuses on 19 developing countries where the growth in fish exports as related to fish and animal protein supply over a 20 years period (from 1976/78 to 1994/97) is analysed based on data collected by FAO. For the purpose these countries are grouped into three categories in accordance with their fish export/import performance during the period

7. While the investigations are continuing, preliminary results presented here indicate that an increase in fish trade may improve food security in groups 1 and 3. International market opportunities would boost national production and would not adversely affect, but rather increase local supply. This would be the case more with countries that have not yet reached maximal levels of exploitation of resources and where augmented fishing efforts do not lead to increased fishing costs in terms of longer fishing time and higher investments. Specificity and variations within and between groups 1 and 3 do exist and would require further analysis. As for group 2, an increase in fish exports is not likely to decrease the quantity of fish supplied to domestic markets from local catches. The decrease in fish supply noticed for the group is primarily due to a decrease in fish imports, especially after the collapse of the former Soviet block which used to be a major supplier of low cost small pelagics to these markets.

ANALYSIS BY GROUP1

GROUP 1: MAIN FISH EXPORTING COUNTRIES

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8. The rapid growth in exports from the main exporting countries during this 20 years period was clearly (see figures 1 and 2) accompanied by a strong increase in fish supply within these producing countries and an increase in the yearly per caput supply from 7.8 kg to 23.3 kg.

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9. The increased fish supply in the countries of group 1 coincides with the increase in total animal proteins supply where fish has currently a share of 25% (Figure 3).

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10. The remarkable growth in fish production, fish trade and fish per caput supply in China (reported Chinese per caput supply has increased almost five fold during this period) can distort any statistical average. But even excluding China from this group (see figures 4 to 6), the general conclusion remains: the increase in fish exports coincides with the increase in food security, as far as animal proteins are concerned.

11. Compared to figure 1, figure 5 reflects the impact of China on the growth of per capita fish supply. The other countries of this group have also increased their per capita supply but to a lesser extent than when China is included.

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12. Comparison between figure 3 and figure 6 shows that share of fish is more important in total animal protein supply for countries of the group excluding China.

CHINA

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13. In China, per caput supply of fish and total fish exports have been experiencing a parallel increase over the period considered. However, the steady increase of the per caput supply seem to be rather due to the aquaculture production boost, whose impact on food security has been amplified by the recent slowing Chinese population growth.

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14. The increase in exports appears to be directly proportional to the increase in total fish supply. The growth in total supply however is far more marked and stronger compared to the increase in exports. The reason behind such a trend is the strong increase in farmed carp production in China which is not exported at this highly expensive products is far more appealing to the domestic rather than to the international market.

15. The share of fish in animal protein supply has remained fairly stable over the period considered. However the average animal protein supply has increased steadily during the same period of time. This trend is probably a result of the increased wealth of the Chinese economy with the consequent increase in expenditure in more expensive foodstuffs including other sources of protein like meat of different kinds.

GROUP 2: MAIN FISH IMPORTING COUNTRIES

16. The countries of this group rely heavily on imports for their fish supply. This is evident from the marked decrease in per capita fish supply recorded in some West African countries during 1985/87. The fall in supply corresponds to the drop in fish imports during the period (see figure 10) following the disintegration of the Russian fleet which used to supply fish to these countries, particularly Nigeria.

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17. On the other hand, the stabilisation of fish imports since 1988 has resulted in an understandable decrease in the per capita fish supply, in tune with the growth in population. Consequently, the share of fish in total animal protein supply also dropped during the same period. Total animal protein supply in countries of group 2 (Figure 11) is less than that for countries of group 1 (Figures 3 and 6). For the countries of group 2, the close relationship between food security and the level of fish trade (imports) is quite obvious.

GROUP 3: LOW-INCOME FOOD-DEFICIT COUNTRIES (LIFDC)

18. For the selected LIFDCs as well, it is clear that the increase in fish exports corresponds to the increase in total and per capita fish supply (Figures 12 and 13). The impact of Indian fisheries and population is naturally signficant in this group and explains the low per capita supply, even if it is increasing.

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19. The slight increase in per capita fish supply is however not enough to compensate for the steady decline in the total animal protein supply which is alarmingly low in 1995/97, especially when compared to the total animal protein supply of countries in groups 1 and 2. Further, despite signs of declining global food security, it is evident in the case of the countries in the LIFDC group that if fish supply had not increased to such an extent, probably boosted by export opportunities, their food security situation would have been worse.

1 source of all figures in this document: FAO