1. CONSUMPTION OF FISH AND SHELLFISH AND THE REGIONAL MARKETS

1.1 Nutritional benefits of fish and shellfish
1.2 Characteristics of consumption in the region
1.3 Annual consumption of fish and shellfish
1.4 Gross market data
1.5 Specific market data
1.6 Information for the trade
1.7 Technical assistance projects in the sub-sector

1.1 Nutritional benefits of fish and shellfish

First and foremost, increasing the per caput consumption of fish and shellfish in any country benefits health. Aquatic animals contain a high level of protein (17-20%), with an amino-acid profile similar to that of meat in ruminants and fowl. The flesh of fish is readily digestible by man. Compared with land animals (with some exceptions, such as shellfish), aquatic animals have a far higher percentage of edible flesh, and there is little wastage. Aquatic animals are a source of minerals, such as calcium, iron, and phosphorus, as well as trace vitamins. Marine species are particularly rich in iodine. The fatty-acid content is high in poly-unsaturated fats, and particularly in those which are attributed to reduce blood cholesterol.

In Latin America fish has an important nutritional role to play in spice of the relatively large supply of red meats; a supply which is higher on a per caput basis than in other third world areas. At the beginning of the 1980s the under-nourished section of the region's population was between 11-16% of the total population. Consequently fish is an integral part of the plans formulated by governments in the region to combat malnutrition.

1.2 Characteristics of consumption in the region

The indigenous populations of Latin America, and the subsequent colonizers, were all eaters of fish but original customs and traditions have all but vanished in view of the large resources of relatively cheap beef produced on the rich grasslands of the continent. The people of the Latin American countries are now some of the highest meat consumers in the world. In 1984 the per caput consumption (in kg/annum) of meat and fish were as follows (from FAO data of world food balance sheets):

	Fish	Meat	Fish plus meat (kg/annum)
Argentina	5.7	102.01	107.08
Bolivia	1.6	31.55	33.15
Brazil	6.2	27.35	33.55
Belize	7.0	44.91	51.91
Chile	18.7	30.25	48.95
Colombia	3.3	30.45	33.75
Costa Rica	2.8	29.59	31.39
Ecuador	14.2	24.24	18.44
El Salvador	1.4	-	-
French Guiana	37.0	78.10	115.10
Guatemala	1.0	12.92	13.92
Guyana	28.0	19.65	47.65
Honduras	1.0	11.89	12.89
Mexico	9.9	39.44	49.34
Nicaragua	1.0	19.32	20.32
Panama	14.4	47.59	61.99
Paraguay	1.1	64.47	65.57
Peru	20.0	22.93	42.93
Suriname	14.1	38.04	52.14
Uruguay	11.3	83.21	94.51
Venezuela	11.3	42.90	54.20

Several countries have attempted to stimulate the consumption of fish but the results have been mixed. Frequently it has proved to be difficult to change the habits and reduce the consumption of red meat in favour of fish.

The share of fish in the per caput consumption of animal proteins (grams/person/day) has remained stable during the period 1970 to 1984, and fish still accounts for about 8% of animal protein consumption. On the other hand animal protein from poultry (mostly chicken) has increased its share from about 7-10%.

In the region as a whole fish consumption remains low, about two-thirds that of the world average. The reasons are several. Fish resources are abundant but they are mostly exploited by industrialized fishing for reduction to fish meal, and the high-value shellfish, both crustaceans and molluscs, either fresh or frozen, are exported to earn foreign exchange.

1.3 Annual consumption of fish and shellfish

In recent years the production of fish for human consumption has increased (that is, the share delivered for reduction has decreased) but the rate of increase has not been sufficient to satisfy nutritional needs in the region. The reasons are mainly twofold: (a) fish for human consumption is exported, and (b) modern industrial fisheries do not supply fish at a cost low enough to come within the economic reach of the urban and rural poor.

Although the per caput consumption of fish for the region of Latin America is low, this average figure hides considerable differences within the region. For example, (see 1.2) countries in Central America (Guatemala and Honduras) report annual per caput fish consumption as low as 1 kg, and the Pacific countries of South America (Ecuador, Peru, and Chile) as high as 14-20 kg.

These same countries of South America dominate the fishing industry in the region as described. The nominal catch for the region as a whole for 1986 (FAO, 1987) was over 13.5 million tonnes (t). This included all marine and freshwater fish, molluscs, and crustaceans. Leading countries with over 4.5 million t were Chile, followed by Peru. Mexico has increased its catch to over 1.4 million t, while Ecuador has decreased its catch from 1.0 million t in 1986 to under 0.7 million t in 1987. Brazil produced almost 0.8 million t and Argentina above 0.5 million t. These six countries accounted for 94% of the regional catch, the bulk of which is the pelagic species which are reduced to fish meal. With the exception of Panama, Uruguay, and Venezuela, the remaining coastal countries contributed much below 100 000 t each, and land-locked Paraguay and Bolivia had 10 000 and 5 000 t respectively.

Of the regional catch almost 2.8 million t (20%) were exported, with a value of US$ 2 900 million. Individual countries differed in export earnings relative to gross export volume depending on their specific product range. Chile was the leading exporting country with 1.3 million t (value US$ 635 million), followed by Peru (757 000 t and US$ 290 million), Argentina (235 000 t, US$ 262 million), Ecuador (200 000 t and US$ 481 million), and Mexico (127 553 t, US$ 570 million). Brazil, Panama, Uruguay, and Venezuela exported below 50 000 t but above 20 000 t (value US$ 178-25 million). All other countries exported below 10 000 t (value US$ 44-5 million).

The main imports of fisheries products to the countries of the region are fish oil, fish fillets, canned fish, canned salmon, frozen fish, etc., for consumption. The total imports to the region are about 267 000 t, with a value of over US$ 240 million. The main importers as of 1987 were as follows:

	Imports		Exports
	Tonnes	US$ ('000s)	Tonnes	US$ ('000s)
Argentina	15 094	14 307	235 018	267 794
Belize	317	742	725	8 436
Bolivia	2 100	2 000	-	-
Brazil	113 129	138 391	47 038	178 163
Chile	737	1 400	1 299 924	635 583
Colombia	77 900	47 400	7 419	44 531
Costa Rica	7 239	5 340	7 270	33 805
Ecuador	-	-	200 058	481 039
El Salvador	400	815	3 832	20 880
French Guiana	1 957	10 527	3 777	33 507
Guatemala	739	1 390	1 522	11 850
Guyana	-	-	2 931	20 640
Honduras	1 365	1 940	5 341	52 465
Mexico	6 101	2 490	127 553	569 914
Nicaragua	-	-	950	10 950
Panama	3 237	6 060	45 767	118 211
Paraguay	-	-	-	-
Peru	35 000	7 400	757 040	290 330
Suriname	35	20	1 851	5 273
Uruguay	1 976	2 746	62 491	82 772
Venezuela	157	943	20 459	25 720
Total	267 483	243 911	2 830 975	2 886 863

The region as a whole is a net exporter of fisheries products as it exports over 2.8 million t, while imports amount to less than 0.3 million t. Fisheries are also a net generator of foreign exchange, with earnings exceeding US$ 2 500 million annually.

Data available on the exportation and importation of aquaculture products are rather scarce. So far aquaculture products are not separated in FAO fisheries data and INFOPESCA is only starting to reflect this differentiation in its marketing reports. However, some individual figures for certain countries of the region are known: for example, Chile exported in 1987 5 683 t of aquacultural produce worth US$ 26.6 million which included mainly trout and salmon (1 854 t, US$ 7.18 million) and dried seaweeds and agar-agar (2 724 t and 873 t respectively, with a total value of US$ 17.4 million). Ecuador exported 44 000 t of shrimp tails worth US$ 500 million, followed by Peru (2 036 t, US$ 22.5 million).

The USA is the major importer of aquaculture products exported by most Latin American countries, although Chile exports considerable amounts of salmonids to Japan, Canada, and Northern European countries.

1.4 Gross market data

In 1987 the total population of the twenty-one countries of the region as described was over 387 million (Population Division of the United Nations (UN), New York). In summary, the countries of Belize, French Guiana, Suriname, and Guyana have populations below 1 million. Bolivia, Ecuador, Paraguay, and Uruguay in South America, and Panama, Costa Rica, Guatemala, El Salvador, Honduras, and Nicaragua in Central America have populations of 1.0-10 million people; Argentina, Chile, Colombia, Peru, and Venezuela have 11.0-35.0 million; Brazil (141.3 million), and Mexico (82.86 million) are the most populated. The population growth in all countries is reasonably consistent at 2-3% per annum, but highest in French Guiana (3.9%), Honduras (3.5%), Venezuela (3.3%), Nicaragua (3.1%), and El Salvador (3.0%).

The economic wealth in the region is consistently more concentrated than the population. There are only two countries with Gross National Products (GNP) over US$ 100 thousand million (Brazil and Mexico), and only two countries between US$ 50-100 thousand million (Argentina and Venezuela). There are four countries between 10-50 thousand million (Chile, Colombia, Ecuador, and Peru), and all the rest have a GNP below US$ 10 thousand million, with the exception of Belize which is only US$ 180 million.

The GNP per caput (1985) differs greatly from country to country. In increasing order, Bolivia (US$ 470), Guyana (US$ 570), El Salvador (US$ 710), Honduras (US$ 730), Nicaragua (US$ 850), Paraguay (US$ 940), and Peru (US$ 960) it is below US$ 1 000 per caput; in Belize (US$ 1 130), Ecuador (US$ 1 160), Guatemala (US$ 1 240), Colombia (US$ 1 320), Chile (US$ 1 440), Uruguay (US$ 1 660), and Brazil (US$ 1640) it is US$ 1 000-2 000; in Panama (US$ 2 020), Mexico (US$ 2 080), Argentina (US$ 2 130), and Suriname (US$ 2 570) it is over US$ 2 000; and only in Venezuela (US$ 3 110) is it over US$ 3 000. No data are available for French Guiana.

1.5 Specific market data

Three features stand out in the production, marketing/distribution, and consumption of fish products within the region:

(a) 72% of the total catch is not utilized for direct human consumption.

(b) Exports amount to 7.5% of the total catch but are worth over 50% of the total value of all fish landings.

(c) Imports amount to only 6.5% of the total food supply available for direct human consumption and consist mainly of preserved sardines and tuna.

Traditionally fish consumption in the region had been generally low. This was attributed to the following reasons: feeding habits of the local population do not include fish; the lack of adequate preservation methods usually rendered poor quality products; high prices of fish compared with most other meat products; inconsistent supplies, etc. In addition to the above, the undeveloped state of fish markets in rural areas influenced consumption patterns amongst the local population shifting their preferences toward readily available products, mainly preserved sardines and tuna fish.

Sardines and tuna products became staple elements in the diets of the poorer segments of the population throughout Latin America, regardless of whether they were produced internally or were imported from abroad. However, during the past decade the price of these products has shown a considerable increase due to the increasing exchange rates of most local currencies in relation to the US dollar. In addition to this, the diminishing purchasing power of the rural poor has resulted in a decline in the consumption of these fish products.

In order to overcome this situation, governments have been forced to promote the consumption of fresh fish and have therefore created national processing and distribution networks as a means to supply and regulate local sales of fish in the more remote and isolated provincial areas. But because these schemes involve substantial subsidies, their operation is often hindered by national budgetary constraints. Other problems faced by these distribution networks stem from their uneven capacity to concentrate and handle produce due to the lack of sufficient infrastructure (public services, roads, water, ice factories, refrigerated store-rooms, etc.). The geographical dispersion of the rural population centres and the lack of coordination and integration among producers (fishermen), processors, merchants, distribution centres, wholesalers, retailers, etc., do not facilitate the proper marketing of fish and fish products. In many instances an excessive intermediarism contributes to the great disparity between buying prices paid to producers and selling prices paid by the final consumer.

Prices of fish within the region, contrary to popular belief, are not lower than those of other meat and poultry products. Thus, unless attention is given to this matter, demand for fish will not increase substantially. In order to render fish products competitive, adequate levels of technology for their production, processing, and distribution are required.

Attempts to promote fish have, in some countries, been combined with attempts to develop fish technologies appropriate for preserving and handling locally occurring species (particularly small pelagics) to make them popular on local markets. Some success in this direction has been achieved in Mexico and Peru. Most of the cured and canned fish now produced in the region are consumed within the continent but quantities involved are relatively small.

Both fresh and chilled/frozen fish are the principal products supplied to consumers in Latin America. However, as the infrastructure needed to transport and store these products is not generally available in most countries, the supplies of fish are concentrated in major cities and coastal industrial fishing centres. For instance, in Costa Rica 84% of the urban population consumes fish but only 60% of the rural population. The differences in consumption between urban and rural populations are attributed more to the availability and distribution capabilities of fish products rather than to eating habits, since in fact rural populations consume as much canned fish products as do the urban populations.

On the other hand, it is well recognized that in most countries of Latin America both the fisheries sector and the aquaculture sub-sector are only marginal within the national economies. As such, export markets for most of the countries of the region are closely linked to the US market and are consequently affected by changes in the major international fish markets. Price fixation is also influenced by major fishing countries operating within the Exclusive Economic Zone of the countries of the region. Argentina seems particularly affected in its export revenues by the fluctuation in the composition of its catches, unlike other countries with more stable and consistent landings, e.g. Chile, Mexico, etc. The European Economic Community (EEC) maintains certain barriers which hinder the importation of fish products from Latin American countries.

Chile and Argentina present a wider diversification in their exportation of fish products (preserved, salted, cured, etc.) while most other countries export mainly frozen products (shrimp tails, lobster, fish fillets). Chile is also a major exporter of fish meal, agar-agar, and molluscs. Brazil is the main supplier of catfish to the USA, and although at present exports are based on wild-caught resources there is potential for the expansion of the cultivation of this fish.

Colombia is the only country of the region which shows a negative trade balance in its fish commerce, this in spite of the fact that live ornamental fish are included in its export values. In addition, the development of its fishery sector faced a serious setback when the government removed trade barriers to fish products from Ecuador, Peru, and Chile due to the deleterious effects which this action produced on the vertical and/or horizontal integration of the production, processing, and marketing of fish. Only in the case of trout such elimination of barriers proved positive as new internal markets opened to the local aquaculture industry.

The main international markets of aquaculture products from the region are as follows:

Shrimp. The USA is the main importer of penaeid shrimp from Latin America, traditionally supplied by Mexican capture fisheries, but more recently also by cultured shrimp from Ecuador (over 45 000 t). Attention should be paid to the fact that Asia is very aggressively entering the North American market with lower priced products, although it is foreseen that higher quality shrimp will also be supplied in the near future. Although the Japanese market does not consume shrimp from Latin America in significant amounts, it does exert an indirect effect through its influence on the quantities and prices in the North American market. The European market continues to be very limited for Latin American products even though trends appear to be changing gradually with respect to its preferences.

Catfish. The USA imports over 6 000 t of catfish, mostly from Brazil, as well as small quantities of black catfish (Rhamdia sapo) from Uruguay and Argentina, and channel catfish (Ictalurus punctatus) from Mexico. It is therefore conceivable that in the future these and other Latin American countries may supply larger amounts, provided the products meet quality specifications and that shipments are made regularly.

Tilapia. Potentially the USA may also become a major importer of this fish (mainly in fillets), as has been shown recently by the increasing demand for this product not only for its local ethnic markets but for the public in general. Costa Rica and several Caribbean countries are already exporting tilapia products to this expanding North American market.

Prawns. Although somewhat controversial, it now appears that freshwater prawns are gradually gaining wider acceptance in the USA markets as well as in various Southern European countries.

Trout. Although trout is a major commodity in the fish trade, it is generally recognized that Latin American production of trout is unlikely to compete in price with the efficient production systems in North America and Europe. Chile is perhaps the only exception due to the fact that trout is raised in sea cages.

Salmon. Of all the countries of the region, only Chile produces this fish and has now become the third producer in the world of Pacific salmon. Its excellent quality commands an f.o.b. price of US$ 4.70/kg.

Some countries (e.g. Colombia, Ecuador, Mexico, Paraguay, and Peru) recognize the existence of illegal trade of fishery products caused mainly by price differentials which make it attractive either to introduce them illegally into another country, or simply to market them through unofficial channels to avoid payment of taxes and tariffs. In some instances the illegal trade arises from restrictions imposed on certain sectors banning their participation in fishery-related activities.

Some countries of the region have established fiscal incentives favouring the export of fish products, such as tax deductions of up to 15%, and elimination of tariffs for importation of raw materials and other inputs used in the production of the final products. For instance, Costa Rica imports fresh/frozen tuna and sardines to supply its canning industry and later re-exports these processed products.

On the other hand, the ever increasing price of imports in terms of local currencies acts as a deterrent to further imports and thus the opportunity arises for aquaculture to participate in filling this internal market niche. This situation is clearly recognized by Central American countries, whose overall internal fish consumption had depended to a great extent on the importation of canned fish, which are now attempting to enhance aquaculture.

Based on a comprehensive regional study aimed at assessing the present status of aquaculture development, AQUILA has compiled data estimating the value of aquaculture products both sold domestically and exported. Accordingly, the total estimated value of aquaculture production in the region amounts to some US$ 900 million, of which over 90% corresponds to export sales (mainly based on marine shrimp), while less than 10% is marketed domestically. (These data do not consider oyster production in Mexico worth approximately US$ 20 million.)

1.6 Information for the trade

There is little information to be found on aquaculture trade, in the region. The principal marketing information service is INFOPESCA, although it does not differentiate aquaculture products as yet. INFOPESCA assists the fishing industry and governments in the region by establishing contacts between buyers and sellers of fish products, and providing technical information and advice on post-harvest aspects of fisheries, such as handling, processing, equipment selection, and quality assurance. INFOPESCA is based in Panama City, in Panama, and its working languages are Spanish and English.

INFOPESCA is one of four regional services (in Africa, Arab countries, and Asia). This network of services produces a fortnightly news bulletin called "Trade News" in English, French, Spanish and Arabic. This deals with prices, cold storage holdings, short-term market trends, and business opportunities. The network also publishes a two-monthly magazine called "INFOFISH International" (ex-Marketing Digest) in English, which contains articles on market analysis, new products, processing, packaging, equipment, and other aspects of fisheries, including aquaculture, with summaries in the other three languages. Again, as yet, little information is relevant to aquaculture in the region.

A fifth member of the service is the FAO computerized system of fish marketing called "GLOBEFISH". This database stores original information collected by INFOPESCA and the other regional services on such aspects as production and trade statistics, price series, the supply and demand situation, information on aquaculture, investment, joint ventures, and general economic data relevant to fisheries. Specific searches are made on request. FAO also produces "Globefish Highlights", which is a quarterly analysis of medium trends. It is based on the information in the data bank and is distributed in four languages as a supplement to "Trade News".

Annual fishery statistics are also stored on an FAO database called FISHDAB. As yet aquaculture statistics are not separated.

Regarding international market quotations for aquaculture products, the Commercial Fishing Information System handled by INFOPESCA processes and distributes through its reports the prices of some cultured species, in addition to specifying their presentation and preservation forms, the type of market, and the origin of the products. At present, quotations for cultured shrimps, tilapia, common and Chinese carps, eel, salmon, trout, catfish, and seaweeds are occasionally published.

This same system offers technical and commercial assistance in marketing operations with the aim of placing traditional products at better price levels, as well as introducing and maintaining new products until they establish a position in international markets.

The National Marine Fisheries Service of the US Department of Commerce publishes a Fishery Market News Report three times per week containing information on primary wholesale selling prices for shrimp and fish and other selected wholesale frozen fishery products in the principal fish markets of New York, Boston, Portland, etc. It also gives information on imports entered into the New York Customs District and provides additional services such as listings of available trade opportunities, and various reports of the fishing industry.

This Fishery Market News Report is relevant to the aquaculture industry of the region as it provides an indication of prices for shrimp from Ecuador - the leading producer of cultured shrimp in Latin America.

Reports on the fisheries of Latin American countries are prepared occasionally by the US Department of State, Foreign Commercial Service, and the National Marine Fisheries Service. These reports usually include aspects on the production and trade of aquaculture products.

"Shrimp Notes", published by Shrimp World Inc. of the USA, is a monthly market news analysis and is an important source of information on shrimp market conditions. It sometimes includes comments on the shrimp culture industry of Latin America and provides information on US cold storage holdings of shrimp, US market situations, production, imports, and outlook.

The LMR Shrimp Market Report is a monthly publication which analyses and reports on current and prospective trends in the international shrimp market, including production, imports, demand, and current prices. Developments in the major producing (fishing and aquaculture) countries are reported as information becomes available.

The Erkins Seafood Letter, published in the USA, is a monthly market analysis and opinion on the seafood industry of the US which is the main importer of fishery products for Latin America. It provides quotations on importer/wholesaler fishery prices.

As Japan also imports shrimp from various Latin American countries (but on a minor scale), the Japanese Shrimp Market Report could become a relevant source of information for the trade in the future.

The major importer of Mexican shrimp, Ocean Garden Products, Inc., publishes a report on current prices of major shrimp and fish commodities in the US market. Complementary information on the fishing and aquaculture industries and trade covered in this report may also prove of value to the sub-sector.

As most of the high-value products are exported out of the region (and fish meal is the most important to the animal feeds industry) other marketing resources on the periphery are important. Eurofish Report (UK) is a two-weekly publication reviewing European and world fishing, with comprehensive coverage of EEC fisheries legislation and the Common Fishery Policy. It contains considerable reference to activities in aquaculture, including supplies and prices of commodities, including fish meal. The Japanese External Trade Organization publishes marketing reports and disseminates them to its offices outside Japan. They reach the trade after many weeks. The Japanese Marine Products Importer Association produces a monthly leaflet.

Many international markets are covered by "Seafood Business" (USA), "Seafood International" (UK), and "Il Pesce" (Italy). All these commercial publications are available through subscription and, in addition to prices and market trends, they contain relevant articles on aquaculture production world-wide.

In almost every country in the region there are specialized institutions with information on export products. In Chile, for example, the ProChile organization produces literature and provides information through publications of the export/import trade in fisheries products, and has particularly assisted the international marketing of salmon and shellfish.

1.7 Technical assistance projects in the sub-sector

As in most of the other regions, marketing is invariably a component omitted from technical assistance projects and therefore there are few in the region at this level of the sector.

The most important project is INFOPESCA - a marketing and advisory service specializing in Latin American and Caribbean fisheries. INFOPESCA is part of a network of marketing services established by FAO in four regions (see 1.6). This regional service is financed by the United Nations Development Programme (UNDP). Panama, the host country, provides office facilities and some support staff.

A number of independent marketing studies have been carried out on specific species, often in advance of pending projects. For example, the Comité Andino de Fomento (CAF) has supported a marketing study on cultured trout; and the Inter-American Development Bank (IDB) has carried out shrimp marketing studies in association with its lending programme in Ecuador. Fundación Chile and the Japan International Cooperation Agency (JICA) have carried out studies on the marketing of cultured salmon for projects in Chile.

AQUILA, funded by the Government of Italy, has been conducting training, research, and information activities in 19 countries of the region. Recognizing that marketing is a key element for the development of the aquaculture industry, this subject has been included in the curricula of the annual Basic Course on Planning and Management of Aquaculture sponsored by AQUILA. Additionally, the topic of marketing of aquaculture products is also covered in a research project entitled "Profile of Economic Aspects of Aquaculture" implemented by the project.

Two other related activities envisaged under the scope of AQUILA are (i) a course on Post-Harvest Technology for the handling, processing, and preservation of aquaculture products, and (ii) a study on the market potentialities of the seaweed Gracilaria to devise an appropriate strategy for cultivation and marketing throughout the region.

The state of aquaculture in Latin America has been included in a world-wide shrimp study by INFOFISH on contract with the Asian Development Bank. The study is to reveal common trends in consumption and production, the impact of aquaculture operations on price development, and the role of developing countries in shrimp supply.