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RAP PUBLICATION 2007/24

RAP PUBLICATION 2007/24

POTENTIAL COSTS AND BENEFITS OF FISHERIES CERTIFICATION
FOR COUNTRIES IN THE ASIA–PACIFIC REGION

Graeme Macfadyen
&
Tim Huntington


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Part I (232 KB) Part II (657 KB)

 



FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS
REGIONAL OFFICE FOR ASIA AND THE PACIFIC

The designation and presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area of its authorities, or concerning the delimitation of its frontiers and boundaries.

NOTICE OF COPYRIGHT

All rights reserved. Reproduction and dissemination of material in this information product for educational or other non-commercial purposes are authorized without any prior written permission from the copyright holders provided the source is fully acknowledged. Reproduction of material in this information product for sale or other commercial purposes is prohibited without written permission of the copyright holders. Applications for such permission should be addressed to the Senior Fishery Officer, FAO Regional Office for Asia and the Pacific, Maliwan Mansion, 39 Phra Athit Road, Bangkok 10200, Thailand (FAO-RAP@fao.org)

© FAO 2007

For copies write to:The Senior Fishery Officer
FAO Regional Office for Asia and the Pacific
Maliwan Mansion, 39 Phra Athit Road
Bangkok 10200
THAILAND
Tel: (+66) 2 697 4000
Fax: (+66) 2 697 4445
E-mail: FAO-RAP@fao.org

FOREWORD

The 29th Session of the Asia–Pacific Fishery Commission (APFIC) recognized that one of the emerging issues in the region is the development of standards and certification schemes and the potential opportunities and constraints that these might bring to the region. In particular, member countries specifically requested APFIC to review costs and benefits associated with certification schemes for capture fisheries and aquaculture in the APFIC region. This report was prepared in response to this request.

The report reviews environmental certification, social certification and branding initiatives of potential relevance to marine capture fisheries in the Asia–Pacific region and considers their net costs and benefits. Consideration is also given to potential problems that countries, producers or exporters in the Asia–Pacific region might have with such initiatives. It is important not to generalize about whether the sector should engage in certification or branding schemes because of the specificities of each fishery/product and its end market. Therefore, the recommendations focus on providing some practical advice on how to conduct cost–benefit analyses and a decision-making tree for assessing the viability/feasibility of certification or branding in different situations.

It should be noted that certification and branding are only part of the solution to a more sustainable capture fishery. There is a wide range of possible mechanisms that can be used for sustainable management of a fishery and for product promotion in the Asia–Pacific region in line with the FAO Code of Conduct for Responsible Fisheries.

This report is part of the work that APFIC and FAO are jointly carrying out in the region for member countries. The findings in this report have been presented at the "APFIC Regional Consultative Workshop on Certification Schemes for Capture Fisheries and Aquaculture" held in Ho Chi Minh City, Viet Nam in September 2007. This report, together with input from the regional workshop, will provide a solid base for APFIC members to move forward on certification issues related to aquaculture. It should be noted that this work is complies with the FAO Guidelines for the Ecolabelling of Fish and Fishery Products from Marine Capture Fisheries.

                           
He Changchui                                   
Assistant Director-General and Regional Representative
FAO Regional Office for Asia and the Pacific           


CONTENTS

Executive Summary

Introduction and scope of this study

Overview of certification schemes and other branding initiatives

Environmental certification and initiatives

Social certification and initiatives

Branding initiatives

Demand for, and benefits of, certification and branding

Demand by consumers

Demand by, and benefits for, retailers/the food service sector

Demand by, and benefits for, producers

Costs

Assessing the net benefits of certification and branding

Introduction and some issues of methodology

Some issues of methodology

Steps in cost–benefit analysis

Potential problems for Asia–Pacific producers in relation to certification andbranding

Potential problems with environmental certification

A decision-making tool for countries in the Asia–Pacific region

Conclusions

Appendix A: Bibliography

Appendix B: Additional information on initiatives

Appendix C: MSC-certified suppliers in the Asia–Pacific region (as at November 2006)

Appendix D: Comment on wild caught fish and its compliance with organic labels

Appendix E: Environmental Certification schemes and initiatives

Appendix F: Social Certification schemes and initiatives

FIGURES, TABLES AND BOXES

Figures

Figure 1:          Some examples of branding of fish products in Asia and the Pacific

Figure 2:          Thai pesticide-free label

Figure 3:          HACCP mark (Republic of Korea)

Figure 4:          Some regional branding examples from Republic of Korea

Figure 5:          The Pointe de Bretagne scheme

Figure 6:          MSC labeled products by country, June 2007

Figure 7:          Operating margin of food companies in the UK

Figure 8:          Can products such as these be branded?

Figure 9:          Decision-tree — environmental certification

Figure 10:        Decision-tree — branding certification

Tables

Table 1:           Summary of expected benefits from certification and branding for different                          interest groups

Table 2:           Hypothetical cost–benefit analysis of environmental certification

Table 3:           Hypothetical cost–benefit analysis of branding

Table 4:           Decision-making table for assessing fishery products for certification

Boxes

Box 1:              Consumer responsiveness to environmental sustainability of seafood

Box 2:              Chinese consumer attitudes

Box 3:              The case of Frosta in Germany

Box 4:              The case of Unilever in the UK

Box 5:              Reported benefits to producers of MSC certification

Box 6:              Anecdotal evidence of the benefits/importance of the source of fish products