FAO Fisheries and Aquaculture Technical Paper No. 553

FAO Fisheries and Aquaculture Technical Paper No. 553

Private standards and
certification in fisheries
and aquaculture

Current practice and emerging issues


by
Sally Washington
FAO Consultant
Christchurch, New Zealand
and
Lahsen Ababouch
Chief
Products, Trade and Marketing Service
FAO Fisheries and Aquaculture Department
Rome, Italy



FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS
Rome, 2011

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Contents


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ISBN 978-92-5-106730-7

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© FAO 2011

Washington, S.; Ababouch, L.
Private standards and certification in fisheries and aquaculture: current practice and
emerging issues.
FAO Fisheries and Aquaculture Technical Paper. No. 553. Rome, FAO. 2011. 181p.

Abstract

Private standards and related certification schemes are becoming significant features
of international fish trade and marketing. They have emerged in areas where there is a
perception that public regulatory frameworks are not achieving the desired outcomes,
such as sustainability and responsible fisheries management. Their use is also becoming more common in efforts to ensure food safety, quality and environmental sustainability in the growing aquaculture industry.

Private standards are now a key mechanism for large-scale retailers and commercial brand owners wishing to translate requirements both product and process specifications to other parts of the supply chain. This is especially important as supply chains become more vertically integrated. Indeed, from the perspective of the firm, private standards and the certification sitting behind them can serve as mechanisms for safety and quality assurance. They can also facilitate traceability, standardization of products from a range of international suppliers, and transparency of production processes. Attachment to an environmental standard or ecolabel provides retailers and brand owners with insurance against boycotts from environmental groups and negative media coverage. Moreover, it also helps them tap into and grow consumer demand for ethical products. Consequently, the fisheries procurement policies of most large retailers typically include a significant sustainability component, often with targets for wild-caught fish to be certified to an ecolabel, and for farmed fish and seafood to be certified to an aquaculture certification scheme. Suppliers working at the post-harvest level are increasingly required to be certified to a private food safety management scheme. Therefore, the onus is increasingly on suppliers to verify that their products meet certain standards. Certification provides this burden of proof.

Although the impact of private standards is not uniform across markets, species or product types, it is likely to increase, including in developing countries, as supermarket chains consolidate their role as the primary distributors of fish and seafood products, and as their procurement policies move away from open markets towards contractual supply relationships. As the leading retail transnationals extend their global reach, their buying strategies are likely to progressively influence retail markets in East Asia, Africa, Eastern Europe and Latin America. Key issues related to the overall impact of private standards in fisheries and aquaculture and how they affect various stakeholders require resolution.

The compliance costs associated with certification to a private standard represent another contentious issue. These costs are borne disproportionately by those upstream in the supply chain rather than those downstream where the demands for certification generate. However, arguably more problematic is the distribution of those costs: Is some redistribution of costs possible, and using what levers?

Furthermore, the multiplicity of drivers for the traceability aspects of private standards schemes, which retailers and brand owners find most compelling, requires integration to meet the multiple requirements relating to food safety, catch certification, illegal, unreported and unregulated (IUU) fishing and the chain-of-custody aspects of private voluntary certification schemes, as well as public regulatory requirements.

Most importantly, the proliferation of private standards causes confusion for many stakeholders: fishers and fish farmers trying to decide which certification scheme will maximize market returns; buyers trying to decide which standards have most credence in the market and will offer returns to reputation and risk management; and governments trying to decide where private standards fit into their food safety and resource management strategies.

This technical paper analyses the two main types of private standards affecting fish trade, namely ecolabels and food safety and quality standards, and their importance for a range of stakeholders. It addresses issues that are driving their development and examines inter alia their policy and governance implications, their impact on costs, their role in traceability, the assessment of their credence, and the challenges and opportunities for developing countries.


Contents


Preparation of this document  (Download pdf 296 kb)
Abstract
Tables, figures and boxes
Abbreviations and acronyms
Executive summary

1. Introduction  (Download pdf 68 kb)
1.1 Fisheries and aquaculture production, utilization and trade
1.2 State of the resource
1.3 Proliferation of private standards in global fish trade and marketing
1.4 Issues arising from the proliferation of private standards
2. Private standards: relevant definitions and a typology  (Download pdf 61 kb)
2.1 Standards – some relevant definitions
2.2 Public and private standards
2.3 A typology of private standards in fisheries and aquaculture
2.4 Product and process standards
3. The context: what is driving the development of private standards?  (Download pdf 65 kb)
3.1 Perceived failures in public governance
3.2 Consolidation and coalitions in the food business
3.3 Increasing vertical integration and complexity of supply chains
3.4 A shift in responsibilities for food safety from government to business
3.5 Product liability and due diligence
3.6 Private labels – processed products
3.7 Consumer demand and corporate social responsibility policies
4. Ecolabels and marine capture fisheries  (Download pdf 226 kb)
4.1 International and national measures for fisheries sustainability
4.2 Market penetration of ecolabelled products
4.3 International responses to the ecolabelling phenomenon
4.4 Ecolabels and trade
4.5 Future scenarios and issues for attention
5. Private standards and certification for food safety and quality in fisheries and aquaculture  (Download pdf 231kb)
5.1 Public frameworks for food safety and quality
5.2 The emergence of private standards for food safety and quality
5.3 Types of private safety and quality standards in fisheries and aquaculture
5.4 Private in-house buyer guidelines of large retail firms
5.5 Collective private standards developed by regional or national producers organizations
5.6 Public certification schemes
5.7 NGO-driven standards and certification – aquaculture
5.8 The need for harmonization
5.9 Calls for international guidance
5.10 Market importance of private standards
5.11 Pressure on developing countries to meet private standards
5.12 Costs and benefits of private standards – stakeholder analysis
5.13 Protection or protectionism? Impacts of private standards on global trade
5.14 Future scenarios and areas for attention
6. Key policy and governance issues  (Download pdf 103kb)
6.1 How can the quality and credence of private standards and related certification be assessed?
6.2 A “fair” distribution of costs and benefits
6.3 Integrated traceability
6.4 The specific challenges and opportunities private standards pose for developing countries
6.5 The effects of private standards on international trade and their relationship to WTO mechanisms
6.6 The interface between private standards and national public regulation and policy frameworks

References  (Download pdf 84 kb)

Appendixes  (Download pdf 314 kb)

1 – Guidelines for the ecolabelling of fish and fishery products from marine capture fisheries, revision 1, 2009
2 – Draft guidelines for certification in aquaculture
3 – Definitions relevant to private standards and certification