WORKING PAPER 6 DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA REPORT OF THE FISHERIES DEVELOPMENT PROGRAMMING MISSION (3-12 October 1998) Food and Agriculture Organization of the United Nations November 1998

Table of Contents

BACKGROUND

I. STATUS OF THE FISHERIES INDUSTRY AND FISHERY PRODUCTION TRENDS

1. General information

2. The DPRK Fishing Fleet

3. Fishery Production Trends

4. Post-harvest technology development

5. Import and export of fishery products

II. FISHERIES DEVELOPMENT AND MANAGEMENT FRAMEWORK OF DPRK

Government policy with respect to the fisheries sector

2. Laws and regulations

3. Fisheries development and management authorities

4. Activities, programs and projects in support of the fisheries development and management framework

III. ASSISTANCE NEEDED BY THE DPRK GOVERNMENT

IV. VIEWS AND RECOMMENDATIONS OF THE MISSION

Appendix 1

Terms of Reference

Appendix 2

Appendix 3

Appendix 4

OBJECTIVES

1. Immediate objectives

2. Long-term objectives

WORK PROGRAMME AND ACTIVITIES

1. Renewal of the Pupo Laminaria seedling plant

2. Pilot farm for shallow sea polyculture

2.2 Pilot farms

2.3 Materials required for pilot farms

INPUT

1. Donor(s)/joint partner

2. DPRK Government

OUTPUT

BACKGROUND AND JUSTIFICATION

OBJECTIVES

1. Immediate objective

2. Long-term objectives

WORK PROGRAMME AND ACTIVITIES

1. Size of pilot farm

2. Fish ponds

3. Recommended models for integration

3.2 Fish-duck model

INPUT

1. Donor contributions

2. Government contributions

OUTPUT

PROJECT IDEA III: SHRIMP HATCHERY AND EXTENSIVE PONDS

BACKGROUND AND JUSTIFICATION

OBJECTIVES

WORK PROGRAMME AND ACTIVITIES

INPUT

OUTPUT

PROJECT IDEA IV: STRENGTHENING OF THE MARINE FISHERY RESEARCH CAPACITY OF DPRK

BACKGROUND AND JUSTIFICATION

OBJECTIVES

PROJECT DURATION

WORKPLAN

INPUT

ANTICIPATED BENEFITS FROM THE PROJECT

BACKGROUND

From historical experience, the Democratic People's Republic of Korea (DPRK) places heavy emphasis on economic self-reliance and food self-sufficiency under the Juche philosophy. Consequently, the economy achieved very high growth rates shortly after the war (1950-53) as it embarked during the mid-to-late 1950s on a programme of rapid industrialization. Industrial growth rates in the range of 30-40% per annum and above were achieved between 1954-60. In the 1960s, annual growth rates of around 13% were still attained in industry. Agriculture, including fisheries and forestry, and consumer goods received more attention in the 1970s and the 1980s. A combination of internal and external shocks, including the world recession, accompanied by increased oil prices and falling prices for DPRK's raw material exports, lowered the economic performance during that period. However until 1990, overall, DPRK was successful in meeting people's basic needs and eliminating absolute poverty.

From 1990 the economy suffered a slow-down and had difficulties in achieving planning targets. With aging industrial plants, little new investment, loss of most of its traditional trading partners, and economic sanctions¹ still in place, the economy has been under severe strain, compounded by natural disasters since 1994. At the same time, there has been a steady rise in import prices of major industrial and agricultural inputs such as fuel, fertilizer, and agro-chemicals. Because of the above problems and recent natural calamities, industrial output and export earnings have declined sharply.

The natural calamities during the last four years, starting with heavy rains and floods followed by drought, reportedly caused an estimated US$ 15 billion in damage and left half a million people homeless in DPRK. The country is now experiencing a food shortage, compounded by an economic crisis due to the disruption of access to traditional markets in the former Soviet Union and eastern European countries.

Due to the gravity of the situation, the Government, for the first time, requested outside assistance to help resolve the crisis. A number of donor countries, non-governmental organizations and such international agencies as UNDP, FAO, IFAD, WFP and the European Union responded to the request. An International Donors' Roundtable on Agricultural Rehabilitation and Environmental Protection took place in Geneva, Switzerland from 28 to 29 May 1998, under the auspices of UNDP. It was agreed between the DPRK Government and the donors that a major constraint to donor involvement in development assistant programmes for the agriculture sector was the lack of a sector strategy and policy framework. In response to the Roundtable's recommendations, FAO/UNDP launched an agriculture sector study mission in September/October 1998 to assist the Government in identifying investment opportunities in the agriculture sector. The Government also requested FAO to provide assistance aimed to identify short-term rehabilitation needs and long-term development potential in the fishing industry of the country.

In response to the above request, the FAO Regional Office for Asia and the Pacific, Bangkok, Thailand, launched a Fisheries Development Programming Mission to DPRK from 3 to 12 October 1998. The Mission was comprised of Dr. Deb Menasveta, Fisheries Consultant acting as the Mission Leader; Mr. Hassanai Kongkeo, Coordinator of the Network of Aquaculture Centres in Asia and the Pacific (NACA); Professor Chen Jiaxin², Director of the NACA Regional Lead Centre in Wuxi, People's Republic of China; and Mr. S.L. Kang, FAO Regional Office, Bangkok, as coordinator of the Mission. The Mission's main objective was to assess the present status of the fisheries industry of DPRK as very limited information thereof was available outside the country. On the basis of the findings, the Mission was asked to prepare project ideas for consideration by potential donors. The terms of reference of the Mission in more detail are attached as Appendix 1.

The Mission's Itinerary: The Mission arrived in Pyongyang, DPRK, on 3 October 1998. The itinerary for the Mission was prepared by the Department of External Economic Cooperation (EEC), Ministry of Fisheries (MOF). On 4 October 1998, the Director of the EEC, Mr. Song Bong Jin, accompanied by Mrs. An Ul Sun, Section Manager, EEC, and Mr. Chong Yong Ho, official of the Fish Farming Technical Department, briefed the Mission on the state of the fishery resources of DPRK and the status of its fishing industry. The Mission was also informed of the need for foreign assistance to rehabilitate the fishing industry. A further briefing on fishery research institutions of the Technical Bureau, Ministry of Fisheries, and their prevailing problems was given by Mr. Hong Zong Sam, Deputy Director of the Technical Bureau, on 8 October 1998.

To facilitate a better understanding of the current situation of the fishing and aquaculture industry, field trips were arranged for the Mission to visit the following fisheries plants and centres:

The fish processing, distribution and export plant supervised by the Fisheries Cooperatives Bureau, Ministry of Fisheries, in Nampo City, 40 km southwest of Pyongyang, and the Onchon Shrimp Farm operated by the Ministry of Light Industry in the same City, on 6 October 1998;

The Unjon Fisheries Company supervised by the State Fisheries Bureau, Ministry of Fisheries, in Unjon County, North Pyongan Province, 120 km northwest of Pyongyang, on 7 October 1998; and

The Pupo Laminaria Seedling Plant in Kangryong County, South Hwanghae Province, 150 km. southwest of Pyongyang, on 9 October 1998.

Due to logistic problems including major repair of the highway to the east coast, the Ministry of Fisheries could not arrange a field trip to the East Sea Fisheries Research Institute in Wonsan; the Shallow Sea Farming Research Institute in Kosong; and other fishing centres on the east coast of the country. The Mission regretted that it was not possible to see the deep-sea fleet operating in the East Sea of Korea, the Okhotsk and Bering Seas. However, the Mission had the opportunity to see some of the smaller fishing vessels used by the fisheries cooperative plants and state fishing companies in Nampo and Unjon in the West Sea. Discussions were also held with the officers responsible for the distribution and export plant of the Cooperatives Bureau in Nampo and the company plant of the State Fisheries Bureau in Unjon.

General information about the DPRK fisheries sector

Information and data on the fisheries sector of DPRK in published form are scarce. The Mission obtained the following information mainly from the briefings, discussions held with the DPRK fisheries authorities, and from the answers prepared by the EEC staff to the Mission's questionnaire. Additional information was taken from a report entitled "The Thematic Roundtable Meeting on Agricultural Recovery and Environmental Protection (AREP) for the Democratic People's Republic of Korea (DPRK)".

Geographical setting: DPRK is located in the northern portion of the Korean Peninsula above the 38- parallel. The country is bordered on the north by the People's Republic of China, on the northeast by Russia, on the east by the East Sea of Korea, on the south by the Republic of Korea, and on the west by the West Sea of Korea. It has an area of approximately 120,000 km². DPRK is a mountainous country, with several ranges extending in a northeasterly to southwesterly direction. The most prominent range is the Paekdu, which has the highest peak in DPRK of 2,700 metres. DPRK has only 15 percent arable land, confined mainly to the west coast and to several broad river valleys in the west. Almost all of the major rivers flow into the West Sea, with only one, the Tumen, emptying into the East Sea.

With the limitation of arable land, aquaculture and fisheries play an important role in the livelihood of the majority of the Korean people. The significant contribution of fisheries to the economy and food security of the country was recognized by the late President Kim Il Sung and by Mr. Kim Jong Il, General Secretary of the Workers' Party of Korea and Chairman of the DPRK Defense Committee. The country is also endowed with other natural resources including minerals such as coal, iron ore, lead, zinc, tungsten, mica, fluorite and mercury as well as forest resources.

DPRK has a temperate climate with the average temperature being 24.4- C in summer and -4-C in winter. The annual precipitation in many areas of the country averages about 1,000 mm and is heaviest in the summer months.

Population: DPRK is ethnically homogeneous, with no racial or linguistic minorities other than a small population of the Chinese. The DPRK population in 1997 was estimated by the MOF authorities to be approximately 22 million, with an annual growth rate of about 1.5 percent. The population is unevenly distributed, being concentrated mainly on the western plains. Two-thirds of the population live in cities and the rest in rural areas. The majority of the rural people work on cooperative farms. The language is Korean and the literacy rate of the country is high, estimated at about 95 percent; this is due to the Government's long-term educational policy of providing 11 years of free and compulsory education to its people.

I. STATUS OF THE FISHERIES INDUSTRY AND FISHERY PRODUCTION TRENDS

1. General information

DPRK is a maritime country, bordered on both the east and west by seas. The mixing of cold and warm currents in the East Sea and the enrichment of nutrients from rivers and streams of mainland China and the Korean Peninsula that drain into the West Sea create favorable conditions for developing marine fishing and coastal aquaculture in these waters.

The East Sea, which has a surface area of about 970,000 km², has both cold and warm water species totaling approximately 650. The cold water fish of commercial importance caught by Korean vessels in this sea include Alaska pollack (Theragra chalcogramma (Pallas)), herring (Clupea pallasii (Cuvier and Valenciennes)), flounder (Paralichthys olivaceus), and silver fish. The warm water species include sardines (Sardinia melanostica (Temminck and Schlegel)), anchovies (Engraulis spp.), mackerel (Scomber japonicus) and halfbeak (Hemiramphus spp.).

The West Sea, which has a surface area of about 430,000 km², also has both cold and warm water species totaling 250, including anchovies, Spanish mackerel (Scomberomorus commerson), hairtail (Trichiurus haumela (Forskal)), herring and cod (Gadus macrocephalus Tilesius). The country also cultures and harvests molluscs, such as short necked clams (Venerupis philippinarum), oysters (Ostrea spp.) and ark shells (Arca inflata)as well as seaweed (Porphyra tenera; Gracilaria vernicosa) and kelp (Laminaria spp.) for domestic consumption and export.

As regards freshwater fisheries, DPRK has 60,000 ha of inland waters (9,000 ha of rivers and streams; 41,000 ha of lakes and reservoirs; and 10,000 ha of reclaimed tideland) available for the accelerated development of aquaculture and aquaculture-based fisheries. There are 163 freshwater fish species, 20 of which are being cultivated. These include common carp, Chinese carp, rainbow trout, and mullet salmon. DPRK has reportedly produced millions of fingerlings for annual stocking in rivers and reservoirs but produced only a small amount of marketable-sized freshwater fish from culture and culture-based fisheries, estimated at only about 5,000 mt per year.

The marine plants and animals commonly harvested or exploited by DPRK in both its exclusive economic zone and the high seas are listed in Appendix 2.

2. The DPRK Fishing Fleet

The Government has given priority attention to food security and recognized the contribution of the fisheries sector thereto. As a socialist State, the fisheries industry of DPRK is under the purview of a single organization, the Ministry of Fisheries, which has three main Bureaus, namely, the Freshwater Fish Culture Bureau; the State Fisheries Bureau and the Cooperatives Bureau. Under these bureaus, there are 77 fishing plants, 32 coastal aquaculture farms/plants, 200 fishery cooperatives and 100 freshwater fish farms. In addition, the Ministry also operates shipyards, ship repair and maintenance plants, fishing gear factories and fish processing plants.

Fishing in the deeper part of the country's exclusive economic zone and in the high seas is under the responsibility of the State Fisheries Bureau. The latter also operates a small distant-water fishing fleet of eight large size vessels (2,700 gross mt), fishing in the Bering and Okhotsk Seas. Coastal and inshore water fishing and coastal aquaculture (with the exception of marine prawn culture) are under the responsibility of the Cooperatives Bureau, whilst freshwater and marine prawn culture are under the responsibility of the Freshwater Fisheries Bureau.

In the northern part of the West Sea, capture fisheries constitutes about 80 percent of the fisheries activities and the remainder is in coastal aquaculture, of which the culture of short-necked clams is the main activity. In the southern part, especially in South Hwanghae Province, the main activity (90 percent) is coastal aquaculture, especially kelp (Laminaria spp.) culture. In the East Sea, the main activity is capture fisheries in both the exclusive economic zone and the high seas. The cooperatives also undertake seaweed and kelp culture, especially in the southeastern part of the country.

The statistics provided by the Ministry of Fisheries indicate that the fishing fleet structure of DPRK is not sophisticated or large. There are a total of 1,553 mechanized fishing vessels used in marine capture fisheries, eight of which are large fishing vessels (each more than 80 metres in length and with a 2,250 HP engine). The others are medium and smaller-sized vessels (Table 1). Of the total number of mechanized fishing vessels, the Cooperatives Bureau owns about 200, equipped with low horse-power engines and more than 4,000 small non-motorized boats used for collecting kelp, clams and sea cucumbers. Only medium-sized vessels that have engines of more than 200 HP are equipped with trawl nets for bottom trawling. The majority of the smaller fishing boats with low-power engines are equipped with stationary gear such as set trap nets. The Mission learned that almost all of the vessels in operation were built in the country. The Mission saw some of the smaller wooden vessels in Nampo City and Unjon County and noted that they were rather old and might need major repairs and maintenance. Some of these fishing vessels should be installed with bigger marine engines and equipped with more modern types of fishing gear to enable them to increase their catches, particularly in short-necked clam fisheries. It is felt that the shortage of fuel and lack of spare parts due to the prevailing economic difficulties may have limited substantially fishing activities of these boats in both the exclusive economic zone and the high seas. The Mission noted that 42 vessels operated by the Cooperatives Bureau had already been severely damaged by heavy storms during the past three years.

3. Fishery Production Trends

The annual fish production statistics from 1988 to 1997 given by the Ministry of Fisheries are indicated in Table 2. It is noted that the highest production of 3.7 million mt was recorded in 1989. Since then production has declined steadily to only 990,000 mt in 1996 and 720,000 mt in 1997. Because there are no details on catches by species or groups of species in the FAO Yearbook of Fishery Statistics for DPRK, the Mission requested the MOF to provide as best as they can the estimated production by groups of species for 1994-1997. These figures are listed in Table 3. It is evident that during this period, seaweed and kelp production, predominantly Laminaria spp., dominated the landings, followed by molluscs, mainly short-necked clams. A large portion of the catches could not be separated into major species but it is felt that anchovies might have contributed substantially to the landings.

Amongst the major marine fish species caught, Alaska pollack has contributed substantially to the total production. They are caught both in the DPRK exclusive economic zone and in the high seas, including the Bering and Okhotsk Seas. The largest landing of Alaska pollack, estimated at about 120,000 mt, was recorded for 1995. The production declined sharply to 15,000 mt in 1996 and rose again in 1997 to about 66,500 mt. There was also a distinct decline in the landings of sardines from approximately 20,000 mt in 1994 to only 5 mt in 1996 and nothing in 1997. However, the production of squids and cuttlefish rose steadily from 4,600 mt in 1994 to 14,000 mt in 1997. It was believed that overfishing was the main cause of the decline of landing of Alaska pollack. Changes in the oceanographic conditions might have also contributed to the fluctuation in the abundance of marine fishes exploited, especially Alaska pollack, sardines and herring. Another factor which has to be taken into account is the lack of fuel and spare parts during the past few years, which may have impeded the marine fishing activities of the country.

Attempts were made to separate the annual landings into those from marine capture fisheries and those from coastal aquaculture and inland culture (Table 4). The Mission observed that prior to 1989, marine capture fisheries contributed about 70 percent to the total landings. However, since 1994 marine capture fisheries has contributed on the average 33 percent to the total landings of DPRK, whilst the landings from coastal aquaculture rose from 63 percent in 1994 to 73 percent in 1997. It is the opinion of the Mission that this reverse situation might have been due to the inability of the fishing vessels to work at full capacity due to the prevailing lack of fuel and spare parts.

4. Post-harvest technology development

It was acceded by the MOF authorities that the fish processing facilities and product development in DPRK were not satisfactory. The Mission was told that such facilities were installed in many fisheries plants soon after the liberation of the country in the early fifties, and thus are obsolete. Most fish and fishery products (about 80 percent) are traditionally processed using salting, drying, fermenting, boiling and steaming. Only a limited quantity is processed on board a few vessels that have fish processing facilities. Ice is not widely used for preserving the catches. There have been no measures to upgrade the standard of freshness of the products. Without an adequate amount of ice for preserving the catches on board, the products kept in cold storage are usually partly spoiled. The freezing facility and cold storage in the Nampo fish processing and export plant are outdated and have limited capacity. The Mission noted that the post-harvest facilities at the Nampo plant were similar to those used in the People's Republic of China some twenty years ago. If the Government would like to increase the export of its fish and fishery products, it should modernize the processing facilities so that its export products can compete in international markets.

5. Import and export of fishery products

According to the briefings given to the Mission by the Ministry of Fisheries EEC authorities, most of the fishery landings are used as food for the population. DPRK imports annually only a negligible quantity of fish and fishery products because of the shortage of foreign currency. The country has, however, exported fish and other aquatic organisms mainly in fresh form to China and Japan; the products exported include short-necked clams, kelp and some marine fishes such as puffers (Fugo spp.). The export volume was the highest in 1988, being 46,000 mt. Since then the volume of exports declined to only 7,000 mt in 1996 and 11,000 mt in 1997 (Table 2). The Ministry of Fisheries External Economic Cooperation Department is responsible for the trade of fish and fishery products and investment in joint ventures with foreign countries.

II. FISHERIES DEVELOPMENT AND MANAGEMENT FRAMEWORK OF DPRK

Government policy with respect to the fisheries sector

As indicated earlier, the significant contribution of the fisheries sector to the economic development and food security of DPRK is well recognized by the Government. In DPRK, fisheries development is an integral part of the country's economic and social development plan, and the Government has endeavored to provide material, administrative and technical support to ensure the sustainable development of the fishery resources.

The long-term objective of fisheries development of DPRK, as stated by the MOF authorities, is to modernize its fisheries industry through the application of science and technology so that the Korean people can have a healthy level of 200 grams of fish and fishery products per day. The Government has maintained a long-term policy of increasing fisheries production with a target set since 1953 for the successive economic and social development plans. A more recent fishery production target was set in 1980 by the Fifth Congress of the Korean Workers Party at five million mt per year. However, through the period of adjustment subsequent to 1980, this target has not yet been reached.

In recent years, the Government has given high priority to sea farming and coastal aquaculture as well as to freshwater fish culture. The conservation and sustainable development of marine fishery resources and the upgrading of the quality of fishery products have also received increasing attention. For the development of coastal aquaculture, high priority is given to the increased production of Laminaria seedlings for distribution to cooperative farms, and to the artificial propagation of trout and salmon as well as left-eye halibut (plaice) for stocking in the sea.

In implementing the above production policy, the Government has met with many difficulties. The Mission has identified these as:

In the past few years, the country has experienced natural calamities which have severely affected the production of aquatic organisms in the marine, inshore and inland waters;

Progress of marine resources research conducted by the East and West Sea Fishery Research Institutes has been impeded by limited budget and outdated scientific instruments and equipment, including computers and acoustic instruments for assessing the sizes of the resources;

Sea farming facilities and hatcheries have been damaged by natural calamities and there is an acute need of material and supplies such as fuel, ropes and floats;

The lack of experienced scientists and personnel as well as scientific equipment and instruments for artificial propagation of aquatic organisms prevails;

A large area of tidal land of more than 100,000 ha cannot be used effectively for shrimp culture because of the lack of funds and experience as well as essential materials such as feed and fertilizer; and

Current post-harvest practices are rudimentary and quality assurance is non-existent. The processed products for export are not of standard quality, thus limiting the volume of export.

2. Laws and regulations

As a socialist State, all economic sectors are controlled and managed under the unified guidance of the State. In so doing, the Government provides a legal framework for the development and management of the fisheries. The framework includes a Presidential Decree of October 1976 for the conservation of fishery resources, and a Presidential Order issued in 1989 to improve the protection and conservation of fishery resources. The Fisheries Law of DPRK was promulgated by the Supreme People's Assembly in January 1995. In 1997, the Cabinet issued a number of regulations for fisheries management in pursuance to the 1995 Fisheries Law.

The Ministry of Fisheries has also issued several Ministerial Regulations under the current Fisheries Law. These regulations are concerned with various fisheries management measures such as closed fishing areas, closed fishing seasons, regulations on mesh sizes and fishing methods, the prevention of pollution, and creation of hatcheries throughout the country to propagate marine and freshwater organisms for domestic consumption and for export.

Since 1993, the Government has issued laws and regulations concerning investment in the country through joint ventures with foreign countries.

The Mission was advised that the Government has occasionally examined the existing laws and regulations governing the fisheries sector with a view to improving them, taking into account the 1982 UNCLOS and recent global initiatives and instruments for the sustainable development of fisheries.

3. Fisheries development and management authorities

The fisheries development and management framework of DPRK involves authorities at both the central government and the provincial levels. The Ministry of Fisheries is the highest administrative body, overseeing the conservation of the fishery resources and the development of the fishing industry for the whole country. It is responsible for the implementation of the Fisheries Law and relevant regulations. The administrative structure of the Ministry is shown in Appendix 3.

At the provincial level, each government operates its own fisheries department, which receives policy directives, technical guidance and administrative orders from the Ministry of Fisheries to facilitate their work towards rational fisheries management and the sustainable use of the fishery resources.

4. Activities, programs and projects in support of the fisheries development and management framework

4.1 Fisheries plants and cooperative farms

The Ministry of Fisheries, through its State Fisheries, Cooperatives and Freshwater Fisheries Bureaus, operates several factories, plants, hatcheries and cooperative farms in its attempt to achieve the production target set by the Government. It was noted that the ability of these production units has been impaired in recent years because of the obsolescence of the equipment. The worn-out water-cooling system used at the Pupo Laminaria Seedling and Culture Plant in Kangryong County, South Hwanghae Province, is a case in point. The plant may have to be shut down in the near future if the system cannot be replaced with new equipment. The lack of spare parts and fuel is another major problem to be resolved in a number of State-owned fisheries companies and cooperative farms. The recent natural disasters and economic difficulties have had severe implications on the capability of these plants to produce.

4.2 Research support

Fishery research institutes regularly provide advice and recommendations to the Ministry for consideration when it is developing programmes of activity for the various State-owned fisheries companies, factories and cooperative farms. The Technical Bureau of the Ministry of Fisheries is responsible for the development of research programmes and technical work related to fisheries research. Research projects carried out by fisheries research institutes are jointly funded by the Ministry of Fisheries and the National Academy of Sciences. The latter also support research undertaken by universities.

There are eight fishery research institutes operated by the Technical Bureau of the Ministry:

1. The East Sea Fishery Research Institute located at Wonsan City, Kangwon Province. Its duties cover research on the fishery resources in the East Sea, study of fishing gear and methods as well as electronic equipment used in fishing operations and provision of recommendations to the Ministry as to suitable fishing plans for the companies and cooperative farms;

2. The West Sea Fishery Research Institute located at Nampo City, having the same functions listed above but for the West Sea;

3. Marine Aquaculture Research Institute at Munchon City, Kangwon Province, conducting marine culture research for the East Sea of Korea;

4. Marine Aquaculture Research Institute at Ongjin County, South Hwanghae Province, doing marine culture research for the West Sea of Korea;

5. Fish Processing Research Institute located in Kosong District, Sinpo City, South Hamgyong Province, doing research on fish processing;

6. Fisheries Engineering Research Institute also located at Sinpo City;

7. Marine Aquaculture Facilities Research Institute located at Riwon, South Hamgyong Province; and

8. Freshwater Aquaculture Research Institute in Sungho District of the City of Pyongyang.

The Mission was advised that the total number of staff of the above-mentioned institutes was about 2,000, half of whom were research personnel. There are a number of constraints impeding progress of aquaculture research including lack of research facilities, especially for Laminaria culture research, and lack of experience of research staff in breeding the sea cucumber, mussels, sea urchins and clams. In marine resources research, the two fisheries research institutes lack experience in searching techniques and are in urgent need of suitable acoustic equipment for detecting fish schools and assessing the stock sizes.

4.3 Fishery information and statistical data support

The Mission undertook the searching of published fisheries reports and articles in the FAO Aquatic Science and Fisheries Abstracts database and found only a few publications concerning fisheries and fishery research in DPRK. The majority of the published reports are those prepared by past FAO fishery missions and projects in DPRK. Hence the Mission had to rely on the information and data provided by the Ministry of Fisheries authorities. The Mission was advised that the Bureau of Statistics is responsible for the compilation and presentation of fisheries statistics, but it did not see any published statistical data such as a yearbook of fishery statistics. Only data that the Mission requested was seen. However, it is expected that the fishery and aquaculture research institutes possess more detailed biological and economic data which would be necessary for the subsequent preparation of relevant project proposals for external support.

4.4 International cooperation and external assistance

DPRK is a member of the United Nations, FAO and UNDP. It has ratified the 1982 United Nations Convention on the Law of the Sea (UNCLOS). During the past two decades, the Government has collaborated with FAO and UNDP in the development of the country's fisheries industry. The projects, financed by UNDP and executed by FAO, include DRK/86/005 and DRK/85/006 on the modernization of the East Sea Fishery Research Institute in Wansan (project value: US$ 460,000) and the Fish Processing Research Institute in Kosong (project value: US$ 800,000), and DRK/88/002 on the modernization of the Freshwater Aqauculture Research Institute in Sungho (project value: US$ 300,000). On 3 November 1997, FAO entered into an agreement with DPRK on a Special Programme for Food Security (SPFS) in the country. The SPFS Exploratory Mission visited the country to initiate the preparation of the pilot phase in October/November 1997.

DPRK is a founding member of the Network of Aquaculture Centres in Asia and the Pacific (NACA). It collaborated with NACA in the early nineties in organizing a training course on the artificial breeding of abalone in Kosong.

The country has not yet received active support from non-governmental organizations nor from the private sector in the development and/or rehabilitation of the fisheries sector. The Government welcomes both financial and technical assistance from interested donors, multi-lateral agencies and financing institutions. It has also expressed interest in long-term loans and/or joint ventures, particularly with its neighboring countries, in the rehabilitation of its fishing industry.

DPRK is not a member of regional fishery bodies such as the Asia-Pacific Fishery Organization (APFIC) or Asia-Pacific Economic Cooperation (APEC). However, DPRK has fisheries agreements with Russia and Poland. It is considering cooperating with China in the sustainable development of the fisheries in the West Sea of Korea and the Yellow Sea.

III. ASSISTANCE NEEDED BY THE DPRK GOVERNMENT

At the debriefing meeting held on 12 October 1998, the Director of EEC, Ministry of Fisheries, conveyed to the Mission the Government's views and requested both urgent and long-term technical and financial assistance in order to modernize and/or rehabilitate the country's fisheries industry.

A. The long-term assistance needs include:

1. The modernization of the DPRK fishing fleets, fishing gear and methods

The Government is endeavoring to create three fishing fleets to enhance marine fishery production from the deeper parts of its exclusive economic zone and in distant waters. The fleets would each include a transport ship of about 2,000 gross mt that could deliver fuel and oil to the fleet vessels. The Government anticipates that the fleets will catch between 100,000 and 200,000 mt of fuel and oil from these waters.

2. The modernization of the fish processing facilities

The Government is aware of the obsolescence of the processing facilities in many of its fisheries cooperative plants and state-owned fisheries companies and the poor quality of the fishery products that they are now producing. In order to increase the value of the products, efforts will be made to modernize the facilities, preferably with external technical and financial assistance. It is expected that the modernization process will diversify the products and improve quality as well as packaging to attract domestic consumers and enhance export earnings.

3. Revitalization of the kelp culture industry

The Government is endeavoring to modernize kelp seedling hatcheries and to diversify the kelp raw material which is now processed into dried and cut and dried forms only. It intends to modernize the kelp industry so that chemicals such as fluoride and an alginate compound can be extracted for use in the chemical and food industries.

B. The following are project proposals, for which the Government is in urgent need for technical and financial assistance in the order of priority:

Project No. 1: Kelp (Laminaria spp.) production enhancement

Kelp is an important food source of the Korean people. In recent years, kelp production has not increased because of economic difficulties and natural disasters. The Government is in urgent need of raw material to produce ropes and floats, namely, 1,000 mt of nylon for ropes and 200 mt for floats. A number of hatcheries which produce Laminaria seedlings, including the Pupo plant, are very old and need to be rebuilt and equipped with more energy-saving facilities, including water-cooling systems. The Government anticipates that the rebuilt plants can increase substantially the kelp production over that of 1997.

Project No. 2: Increasing the production of short-necked clams and other bivalves for domestic consumption and export

Clams and other molluscs are also an important protein food source for the Korean people. However, recent production has been curtailed because of the inefficiency and old age of the vessels and fishing gear. The Government has a plan to upgrade the Unjon Fisheries Company of the State Fisheries Bureau, by equipping it with 10 new fishing vessels, each having a 200 HP marine engine, and five transport vessels to be equipped with refrigeration and freezing equipment. The fishing gear to be used includes a high-pressured water spray machine and a new type of clam raking gear. It is anticipated that this rehabilitation will greatly increase clam production over the current amount of 1,500 mt/year. A portion of this production will be allowed to grow in the inter-tidal area owned by the company for future harvest, and approximately 4,000 mt could be exported. The exported products could add US$ 3 million to the country's foreign exchange earnings.

Project No. 3: Shrimp farming in the inter-tidal areas along the western coast of Korea

The Government intends to develop tidal lands of approximately 300 000 ha, along the west coast of the country, of which about 100,000 ha has already been reclaimed. But these reclaimed tidal lands are not being used profitably for agricultural purposes. It is felt therefore that the development of marine prawn (Penaeus chinensis) culture in this waste tidal area could generate substantial income for the State. The Government has expressed its desire to receive technical assistance in the introduction of advanced technology for developing the prawn culture industry in the country.

Project No. 4: Modernization of the Fish Processing, Distribution and Export Plant in Nampo City

The Government has a plan to modernize the above fish processing, distribution and export plant, one of several fisheries plants supervised by the Ministry of Fisheries Cooperatives Bureau. It is planned that the modernized plant will be used as a prototype for the development of other plants and/or depots throughout the country. The new policy of the Government directs that plants such as the above must be financially self-sustaining. It is expected that the modernization process will enable the plant to increase its production from both capture and culture fisheries, thus providing the opportunity to export more fishery products such as short-necked clams and puffers (Fugo spp.). The export earnings will be used partly to buy fuel for the plant's fishing boats. Currently, 95 percent of the production is destined for domestic consumption with only 5 percent for export. It is hoped that the amount of fish products exported could be increased, thus generating foreign exchange earnings for the plant.

To modernize the plant, the Director of the Cooperatives Bureau advised the Mission that the following fishing implements are needed:

12-24 large-sized fishing vessels (each with a marine engine of about 200 HP) for fishing in the deeper part of the DPRK/EEZ;

20 small fishing vessels of less than 10 metres in length for collecting sea cucumbers;

A transport and processing vessel (200 GT) for collecting the catches;

Five 5-mt trucks for land transport;

A few small fiberglass boats to transport female fishers.

The Director of the Cooperatives Bureau believed that these vessels would help increase the catch from the current 2,500 mt per year to more than 10,000 mt. He informed the Mission that the studies conducted by the West Sea Fishery Research Institute had indicated the potential yield in the sea off Nampo as approximately 30,000 mt annually. Thus, there is an opportunity to increase the catch substantially.

Project No. 5: Development of marine research capacity in the search and detection of fish schools, employing appropriate acoustic techniques

The Government believes that its deep sea and distant water fishing fleet could increase marine fishery production substantially above the 1997 production level if it has improved techniques for locating and detecting the schools of pelagic fish. It has, therefore, expressed interest in receiving technical assistance to strengthen the capability of the East Sea Fishery Research Institute in the detection and analysis of pelagic fish schools that can be exploited in both the exclusive economic zone and the high seas. The Mission noted that in 1985 the Government received assistance from FAO and UNDP in the development of the marine fisheries of the country (project DPRK/85/006) and an echo-sounder was installed in one of the Institute's research vessels to facilitate the detection and assessment of the fish stocks. However, the instrument has been out of order for several years due to damage to one of the electronic components, which cannot be replaced. The Government would like to have more advanced acoustic equipment for detection and analysis of the fish schools in both the East and West Seas of Korea.

Project No. 6: Development of freshwater fish culture in DPRK

The Government has expressed interest in receiving technical assistance to accelerate the development of freshwater aquaculture in the country, in order to augment the food supply for the local population, considering the availability of natural lakes, reservoirs, rivers and streams and the pristine quality of the water resources. The project may be attached to the Tudan Hatchery in the City of Pyongyang.

IV. VIEWS AND RECOMMENDATIONS OF THE MISSION

Although DPRK has limited arable land for agricultural production, it is flanked on both the east and west by seas, rich in protein food and minerals. Marine fisheries and coastal aquaculture have, therefore, played a vital role as a provider of nutritious food for the Korean people, thus ensuring the country's food security. They also contribute to the economic development of the country through export earnings and employment of a large number of people in the fisheries industry.

From the data provided to the Mission by the Ministry of Fisheries authorities, it was noted that the average per capita consumption of fish and fishery products of the DPRK people during 1988 to 1997 was high compared to other countries in the Asia and Pacific region, being more than 90 kg/year (Table 2). Most of these products were from the sea. Hence the Government has rightly given high priority to the development of coastal aquaculture and marine fisheries. If the target for per capita consumption is 200 grams per day or 73 kg/year as set by the Government, the population in the year 2010 which will amount to approximately 26 million (at an average growth rate of 1.5 percent per year) would require approximately two million mt of fish and fishery products. The total demand for fish and fishery products by 2010 may be more than two million mt, taking into account some for export. Considering the past fisheries performance of the country, the Mission is of the view that DPRK can meet this demand by intensifying both aquaculture and capture fisheries development, provided rational management measures are implemented to ensure the sustainable use of the fishery resources.

The Mission believes that there is potential for further expansion of both capture and culture fisheries. This is because the country apparently does not have overcapitalization in the fishing fleet. The fleet size is small, comprising mainly small and medium-sized fishing vessels used in small-scale fisheries in coastal and inshore waters. The gear currently used is mainly the stationary type. Many fishing boats are old and cannot fish at full capacity. There are tidal lands of more than 100,000 ha, especially on the west coast of the country, which can be used for expanding coastal aquaculture activities. DPRK also has more than 50,000 ha of inland waters, which can support the expansion of freshwater fish culture. On the other hand, it is unlikely that the country will increase substantially its marine fishery production from the high seas by expanding its distant-water fleet. This is due to recent global initiatives and arrangements, which may have implications on the expansion of high sea fisheries.

The Mission recognizes that the recent natural calamities have devastated the fishing and aquaculture industries, thus curtailing fishery production. It noted that other major constraints to production expansion are the lack of adequate investment funds and hard currency, outdated fishing and culture facilities, and lack of spare parts and fuel for fishing boats and aquaculture operations. The equipment and implements used in capture fisheries and aquaculture are, in general, outdated and are not the energy-saving type; it is felt that energy wastage may be high. There is, therefore, a need to modernize the facilities used both in capture and culture fisheries. However, these tasks may be monumental. In order to satisfy its long-term requirements for the rehabilitation of the fishing industry, the Government should seriously consider obtaining long-term loans from financing institutions or undertaking joint-venture arrangements with interested parties. It is noted that laws and regulations relevant to joint ventures have been in existence in DPRK since 1993.

To effect an increase in marine fishery production in the immediate future, the Mission would like to recommend that an additional quota of fuel and oil be allocated by the Government to the Ministry of Fisheries so that more fishing boats can operate.

The Mission observed that many of the small-sized fishing boats are rather old and are equipped with inefficient gear. Many of these boats have small engines. If these constraints could be rectified, the fisheries companies and cooperatives should be able to obtain more catches of high-value fish and bivalves from the sea. In this connection, the Mission would like to recommend that the modernization of the fishing boats and gear of the Unjon Fisheries Company and of the Nampo Cooperatives Plant (as stated in Project Nos. 2 and 4 in the previous section) would better be accomplished through joint-venture arrangements. This is because the requirements as stated need substantial investment, and donors may not be interested in providing large input into these projects.

Facilities of the Pupo kelp seedling plant should be urgently renewed and upgraded by donor assistance. If this is not possible, the Government should seek a joint-venture arrangement with foreign companies which want to import kelp. A pilot farm for polyculture of marine organisms should be established through donor funding to produce seaweed and other basic marine food items to ensure food security (see Project Idea I in Appendix 4).

A pilot farm attached to the Tudan Hatchery for integrated freshwater fish farming should be established through donor support in order to increase low cost fish production for people in rural communities (see Project Idea II in Appendix 4).

A demonstration hatchery and pilot farm for shrimp culture on the west coast should also be funded by donors. Sustainable shrimp production can generate increased foreign exchange earnings through export, which can contribute to further investments and improvements in other food producing sectors (see Project Idea III in Appendix 4).

The Mission strongly believes that marine fishery research plays an important role in the sustainable development and management of the fisheries. In DPRK there is need to strengthen the capability of both the East and West Sea Fishery Research Institutes to undertake applied research related to resources appraisal (studies on the state of the fishery resources, fluctuation in the abundance and distribution of fish stocks, etc.). Advice from the Institutes based on sound scientific evidence will enable the Ministry of Fisheries to plan fishing activities with more confidence, thus optimizing the time, effort and expenditure in the fishing activities to be carried out. It is felt that a technical assistance project aimed at increasing the capability of the scientists of the two fishery research institutes in the assessment of marine fishery resources is needed (see Project Idea IV in Appendix 4).

The most important input required for successful fishery research, planning and development is reliable information as well as timely and accurate statistical data. The Mission senses the need of DPRK for fisheries information and statistical databases, perhaps in the Ministry of Fisheries. It noted that general fisheries statistics are currently supplied by the Government's Bureau of Statistics. There are no detailed statistics on the species of fish caught nor economic data. It is felt that improvement in the collection, collation and analysis of statistical data for use in the planning for sustainable fisheries development is very much needed. The Mission is pleased to learn that FAO, through its Technical Cooperation Programme, is assisting DPRK in the improvement of the country's agricultural as well as fisheries statistics. If, however, the coverage of the fisheries statistics in that project is not adequate, the Mission would like to strongly recommend that the Ministry of Fisheries request additional technical assistance for further improvement of fisheries statistics. This is because the approach to the collection of these two types of statistics and the requirements of the users are different.

The Mission wishes to stress the importance of post-harvest technology development in DPRK. The fish processing plants in the country need substantial improvement in product development and quality assurance. In the immediate future, there is a need to install ice-making facilities in the plants, as currently only salt is used to preserve the catch on board. There is also a need to have an adequate supply of freshwater and to improve sanitary conditions in the processing plants. These basic requirements are essential if the Government intends to increase its export of fish and fishery products. The possible use of vacuum packaging and other techniques with low investment should be explored by the fisheries companies and cooperative plants in order to extend the shelf-life of traditionally processed products for domestic consumption. The Mission believes that the modernization of the Nampo Plant as requested by the Government in Project No. 4 would better be arranged through joint ventures with foreign investors because of the magnitude of the requirements for modernization.

The Mission would like to draw the attention of the Government authorities to the beneficial role of regional cooperation. The latter will help DPRK to achieve self-reliance in the management and sustainable development of fisheries. There are a number of regional fishery bodies which DPRK could make use of, including the Asia-Pacific Fishery Commission (APFIC), Network of the Aquaculture Centres in Asia and the Pacific (NACA), and Asia-Pacific Economic Cooperation (APEC). Among the regional programmes is the Southeast Asian Programme in Ocean Law Policy and Management (SEAPOL), a non-governmental entity which DPRK could make use of in marine affairs, fisheries and environmental legislation. Regional cooperation will help the country save time and money in the conduct of research and studies as these bodies and programmes promote exchange of data and information. Furthermore, these bodies provide fora for the exchange of ideas and for the strengthening of collaboration in the management of shared and straddling fish stocks. It is expected that several fish stocks exploited by the DPRK fleet in both the East and West Seas are also exploited by neighboring countries. In this case the management regime imposed by one country on a part of the life cycle of the species exploited will be futile if similar action is not taken by others that share the exploitation of the fish stocks.

Finally, the Mission concurs with the priority accorded by the Government to the required assistance projects. Details of the four project ideas listed in order of priority are attached as Appendix 4:

1. Shallow sea polyculture;

2. Integrated freshwater fish farming;

3. A shrimp hatchery and extensive ponds; and

4. Strengthening of marine fishery research capability of DPRK.

Table 1. Number of mechanized fishing boats classified by length and size of engine

Source: Ministry of Fisheries

Table 2. Production of fish and fishery products (live weight) in DPRK and the available supply for domestic consumption

Source: Ministry of Fisheries

Table 3. Fishery production by major group of species in DPRK, 1994-1997

Source: Ministry of Fisheries

Table 4. Fish production in DPRK sorted out by source of production

Source: Ministry of FisheriesTable 5. Aquaculture production in DPRK

Source: Ministry of Fisheries

Appendix 1

The Democratic People's Republic of Korea

Fisheries Development Programming Mission

Terms of Reference

Proposed visit: 3-13 October 1998

Proposed mission members: 1. Dr. Deb Menasveta, Team Leader (Fisheries Development Programming Specialist);

2. Mr. Hassanai Kongkeo, Aquaculture Expert; and

3. Professor Chen Jiaxin, Sea farming Expert ³

4. Mr. S L. Kang, Coordinator (FAO/RAP)

The fisheries Development Programming Mission will undertake a comprehensive survey to update existing information on the fisheries sector covering the pre-crisis situation of the 1980s and early 1990s. It will assess the role of the fisheries sector, its role in income generation, food security and nutrition; identify short-term rehabilitation needs and the long-term development potential; and assist the Government with the formulation of a development strategy and programmes and projects for possible international financing consideration. The objectives of the mission are as follows:

1. To take stock of past FAO and other agencies' involvement in the fisheries sector and assemble relevant data;

2. To assess the effects of the economic crisis on the sector;

3. To assess the role of fisheries for food security and nutrition, and estimate demand and market prospects for fishery products from DPRK EEZ, local and for export;

4. To review fisheries management policies and practices and advise on their appropriateness for sustainability, economic optimization of resource use and food security;

5. To assess development constraint and potential and identify Government development strategy;

6. To evaluate prospects for joint ventures and international cooperation for reactivating the fishing industry; and

7. To identify priority projects in fisheries rehabilitation for immediate implementation, including projects aimed at increased production and improvements of distribution to benefit vulnerable groups.

The mission will be carried out over a period of six weeks, two weeks for field work and four weeks for the assembly of information and data as well as report writing by two international specialists in fisheries policy and development planning and aquaculture. The Government will assign one full-time expert in the respective disciplines to each of the experts. The TOR of individual experts are as follows:

Fisheries development programming specialist: The expert should have an advanced degree(s) in fisheries science and at least ten years of international experience in fisheries development and management planning. He/she will:

a) Act as team leader and main interlocutor with Government and donors:

b) Collect available information to update the status of the fishery resources;

c) Review fisheries management policy and practices, including any regulations of access of the fishing fleet to resources, existing fisheries regulations and enforcement, existing joint ventures and licensing agreement:

d) Discuss and evaluate Government strategies, policies and practices in fisheries planning, management and project implementation and advise on suitable strategies to optimize resource use for income generation and food security, and to draw international financing into the sector;

e) Prepare project proposals for consideration of the Government and prospective donors; and

f) Prepare a report of the mission.

Aquaculture expert: The expert should have a university degree in biology and a minimum of seven years of international experience in aquaculture research and development including freshwater and shellfish culture. He/she will:

a) Collect available data to update information on the sub-sector;

b) Identify the main areas where aquaculture is undertaken and comment on the aquaculture potential in DPRK, including reclaimed tidal land;

c) Review techniques in aquaculture and seaweed farming including nursery techniques, feed sources and feeding practices and stocking of natural and artificial freshwater bodies with fingerlings;

d) Identify the importance of aquaculture for household food security and advise on improvements; and

e) Identify priority programmes and projects in aquaculture for immediate implementation by donors accessible to DPRK.

Appendix 2

List of organisms harvested or caught in

the Democratic People's Republic of Korea