COFI:FT/VII/2000/10  |
| COFI:FT/VII/2000/10 |
Item 9 of the Provisional Agenda |
COMMITTEE ON FISHERIES |
SUB-COMMITTEE ON FISH TRADE |
Seventh Session |
Bremen, Germany, 22-25 March 2000 |
COFI SUB-COMMITTEE ON FISH TRADE AS INTERNATIONAL COMMODITY BODY AND ITS RELATIONSHIP WITH THE COMMON FUND FOR COMMODITIES |
REPORT ON "DEVELOPMENT AND PROMOTION OF VALUE-ADDED FISHERY PRODUCTS" (PEA: INFOPECHE)
CO-OPERATION BETWEEN FAO, ITS INTERNATIONAL COMMODITY BODIES AND THE COMMON FUND FOR COMMODITIES
1. The COFI Sub-Committee on Fish Trade was designated as the International Commodity Body (ICB) for fishery products by the Common Fund for Commodities (CFC) in February 1991 and was therefore in a position to sponsor fishery commodity research and development projects to be supported under the Fund's second account. The Sub-Committee assumed the role of Supervisory Body.
2. Five fishery commodity related projects have been approved by CFC since its inception. The first, executed by INFOPECHE became operational in May 1995 and terminated in December 1998. The INFOFISH executed project started implementation in the last quarter of 1996 and terminated in December 1999. The project to be executed by INFOSAMAK is signed, but is awaiting a decision on the relocation of the centre prior to commencing implementation. The project proposed by INFOPESCA started implementation in March 1999 and is fully operational. The COMESA project was approved by the CFC Executive Committee in October 1999 and is awaiting final signature. Further details of each of these projects, including the level of funding provided by CFC and other sources, for the fishery commodity development programme endorsed by the Sub-Committee as ICB can be found in document COFI:FT/VII/2000/Inf.7.
3. This project was, in accordance with CFC priorities, oriented to least developed countries in West Africa. Pilot operations for the production of value added products were undertaken in The Gambia, with a view to the dissemination of results and subsequent provision of assistance to private industry in neighbouring countries. The project was successful in identifying markets of product based on fish species in Gambian waters, process value-added products, promote these products in trade fairs and train fish inspector in Hazard Analysis Critical Control Points (HACCP) methodology. A range of products was prepared using fish, crustaceans and cephalopods and was exhibited in June 1996 at the FISCH `96 fair in Bremen. The project is now completed.
4. This project, also oriented to promotion and development of value added products and subsequent formulation of investment proposals centred on similar themes to the INFOPECHE project namely: market identification and evaluation; plant evaluation and normalisation; training in processing, quality assurance and introduction of latest quality standards, regulations and monitoring methodology (HACCP) as required for export to major world markets; trial production of value added products; analysis of feasibility and dissemination of results; and subsequent formulation of investment proposals. Seven companies in Bangladesh, based respectively in Chittagong, Cox's Bazar and Khulna are participating in the project. Activities commenced in the last quarter of 1996. Marketing studies for value-added products from Bangladesh were undertaken in Europe, United States and Japan, and products for these markets were prepared. The project was hampered in its progress through the EC ban on Bangladeshi seafood, which started in August 1997. The participation in the ANUGA fair (October 1997) had to be cancelled. Production trials resumed in February 1998, and the products prepared under the present project were exhibited in the Boston Seafood Show (March 1998) and in the European Seafood Exposition (April 1998). Investment profiles were prepared in 1999 and are awaiting CFC approval for loan financing. A regional working group to disseminate the findings of the project in the region was held in India in December 1999, which completed the technical phase of the project.
5. The INFOSAMAK project, in addition to development of value added products and their promotion, training in quality assurance and identification of investment opportunities, seeks to improve smallholder fish production and aquaculture. It will also strengthen the capacity of the INFOSAMAK Centre. A Quality Assurance training workshop was held in Yemen in early 1997 financed by the DANIDA funded Project GCP/INT/609/DEN, but full implementation of the project can only commence once INFOSAMAK's re-location to Morocco has been consolidated, expected for the first half of 2000.
6. Similar to the INFOPECHE and INFOFISH projects this project is oriented towards value-added product development and the implementation of Quality Control system and the development of HACCP plans. There is a substantial difference between the former two projects and the INFOPESCA one, as this covers regional and domestic markets. Eight companies in Mar del Plata and two companies in Rio Grande participate in the project. The project started in Rio Grande, where it carried out training courses for factory workers. Value-added products were identified and the pilot preparation started. The project also up-graded HACCP plans of participating companies. The project is expected to end in early 2001.
7. The Project, submitted by COMESA, aims to develop and promote production of improved processed and value-added products from inland waters (Nile Perch and dagaa). Activities would involve, according the different products and species, small scale cottage enterprises many of which are run by women, and more structured industrial processing companies. The project was approved by the Executive Board of the CFC in October 1999 and is awaiting final signature.
8. Project identification, formulation and execution benefit from prior experience. The INFOFISH and the INFOPESCA projects benefited from experiences and lessons learnt from the first pilot activities in The Gambia. INFOFISH has been able to encourage a more collaborative approach between participating companies, with each one concentrating on perfecting different but compatible value-added products. The fact that up-to-now all PEAs are members of FISH INFOnetwork facilitates the exchange of ideas and approaches.
9. For full advantage to be taken of the momentum created in ongoing CFC funded fisheries related projects, which are all oriented to investment opportunities for the private sector, it is important that CFC finalised its lending plan and guidelines. It is hoped that with this set of policies, investment projects will soon start in The Gambia, Bangladesh, Brazil and/or Argentina.
10. It will be noted that FAO's role in the execution of CFC funded projects is different from that in United Nations Development Programme (UNDP) or trust fund financed projects. All CFC projects relate directly to promotion of the private sector with the direct participation of private firms in concert with the national government. At the same time the capacities of the PEAs are strengthened through experience gained in executing these projects. While the official role of FAO is that of the "Supervisory Body", substantial professional staff time is spent in assisting and advising PEAs in the execution of their projects. FAO created an Expert Group to advise the Sub-Committee in its supervisory function. Terms of Reference of this group are attached in Annex I.
11. In view of CFC's desire to see a substantial level of co-financing of projects, efforts have been made to interest other donors. The International Fund for Agricultural Development (IFAD) has participated in two of the five approved projects and the FAO executed training activities, funded by the Danish International Development Agency (DANIDA), have also supported these projects.
12. A Memorandum of Understanding (MoU) has now been signed between FAO and CFC, establishing the conditions for co-operation between the two Organizations, the modalities for project supervision by the ICBs in their role as Supervisory Bodies and other areas where FAO technical expertise and experience may be used by the Fund.
13. The progress made and the continued efforts being initiated to enhance collaboration and refine procedures and mechanisms for project formulation, appraisal and execution are encouraging for the future expansion of activities.
14. The Sub-Committee is requested to comment on progress made so far and in particular on future orientations for project activities. The Sub-Committee is requested to suggest additional avenues to be followed in the identification of possible co-financing sources. Members are requested to comment on and endorse the pipeline projects presented in Annex II and to present further project ideas or profiles for consideration.
1. The COFI Sub-Committee on Fish Trade in its capacity as Supervisory Body (SB) of Common Fund projects in the field of fisheries shall perform the functions and responsibilities as stipulated in Regulation X of the Regulations and Rules for Second Account Operations of the Common Fund for Commodities and in accordance with reporting obligations as may be stipulated in pertinent Project Agreements. In particular, it:
2. During the intervals between its sessions, the COFI Sub-Committee on Fish Trade delegates its functions as SB to a Supervisory Expert Group (SEG) in order to ensure continuous supervisory functions as required by the CFC.
3. The Supervisory Expert Group shall report to the COFI Sub-Committee on Fish Trade and it being understood that copies of its reports will be forwarded by the COFI Sub-Committee on Fish Trade Secretariat to the Common Fund for Commodities, and the co-financing institutions.
4. Membership of the Supervisory Expert Group shall include two experts with sound knowledge of the project field, able to evaluate the technical and economic aspects of the specific project and to carry out supervisory activities, in addition to an FAO staff member performing technical secretarial functions.
5. The work of the Supervisory Expert Group shall be coordinated by the COFI Sub-Committee on Fish Trade Secretariat.
6. Rules of procedure of the Supervisory Body/Supervisory Expert Group shall be, mutatis mutandis, those of the COFI Sub-Committee on Fish Trade.
In many countries in Central America, including Guatemala and Honduras, artisanal fisheries co-operatives are well structured and active, but lack the facilities at landing sites for unloading, handling and storing high quality fish which could be exported directly by them in fresh or processed form to markets in the USA or Europe. Such co-operatives also require improved fishing vessels and gear to ensure regularity of supply to their markets.
In addition such organizations have not been able to obtain the formal training and technical assistance which will enable them officially to comply with mandatory international standards, including HACCP for processed products and possibly ISO 9000, and so qualify for official "approval" to export to major world markets where considerable potential for their products exists.
The project components will:
The project will contribute to improved development, incomes and standards of living in the artisanal fishing communities in general and in rural fishing communities in particular. It will contribute to improved export earnings for participating countries and ensure improved availability and equitable distribution of fish for human consumption within the sub region.
Project duration 36 months
Estimated total cost (CFC, participating co-operatives, co-financing agencies): US$ 2 000 000
The technical project "Export Promotion of Value-added Fishery Products and their Sustainable Development" executed by INFOFISH and financed by CFC, undertook market research, production trials of value-added fishery products and training in quality assurance, in collaboration with private sector entrepreneurs in Bangladesh as detailed earlier in this document. The proposed loan financing project will include design of specific investment proposals, inventory of existing machinery, loan financing of machinery and other hardware purchases.
Project duration: 24 months
Estimated total cost (CFC, participating enterprises, bilateral assistance and government agencies and Intergovernmental Organizations): US$ 4 300 000.
The technical project "Rehabilitation and Development of the Seafood Processing Industry in Rio Grande and Mar del Plata" executed by INFOPESCA and financed by CFC, undertakes market research, production trials of value-added fishery products and training in quality assurance, in collaboration with private sector entrepreneurs in Argentina and Brazil as detailed earlier in this document. The proposed loan financing project will include design of specific investment proposals, inventory of existing machinery, loan financing of machinery and other hardware purchases.
Project duration: 36 months
Estimated total cost (CFC, participating enterprises, bilateral assistance and government agencies and Intergovernmental Organizations): US$ 5 600 000.
The proposed project will be designed to maximise export earnings from tuna, especially non-canned tuna products, and other value-added fishery products, from island countries in the Asia-Pacific, through environmentally friendly processing and marketing activities. The programme will advise and assist processors and exporters in identifying products and markets as well as hygienic, environmentally friendly processing and packing methods. The project activities will be primarily confined to Maldives and Papua New Guinea, where, as per INFOFISH studies, there is an urgent need for such assistance. However, the results obtained and relevant information gathered will be disseminated among all the other countries in the region and beyond through regular INFOFISH workshops, periodicals and special publications.
Project duration: 36 months
Estimated total cost: (CFC, participating enterprises, bilateral assistance and government agencies and Intergovernmental Organizations): US$ 730 000.
This project aims to improve the potential earnings of small-scale fisherfolks through improved fishing techniques, better handling of fish landed and better marketing towards local and export markets;
Project duration: 36 months
Estimated total cost (CFC, participating enterprises, bilateral assistance and government agencies and Intergovernmental Organizations): US$ 2 200 000.
