It is a privilege to introduce and present the theme of "Sustainable Aquaculture Development and the Code of Conduct for Responsible Fisheries" for our discussion and debate.

Aquaculture has been the world�s fastest growing food production system for the past decade (growth rate of about 10%/year). Aquaculture production increased from 12 million tonnes in 1986 to 34 million tonnes in 1996, valued at US$ 47 billion.

In 1996, over a quarter of the world�s food fish supply was derived from aquaculture. Global projections for future supplies from aquaculture production include estimates of 47 million metric tonnes by the year 2010.

Aquaculture production continues to expand, however primarily in developing countries. Asian aquaculture farmers contribute about 90% of the world�s aquaculture production, and more than 82% of total aquaculture yield is being produced in low-income food-deficit countries (LIFDCs). The growth rate of the aquaculture sector in LIFDCs between 1984 and 1996 was six times faster than that for non-LIFDCs.

In the case of the Philippines, aquaculture fisheries contributed 35 percent to the total fishery production. Other production sources were municipal fisheries, 33 percent, and commercial fisheries, 32 percent.

In 1997, despite the 0.09 percent decrease in the output of the fishing industry, the aquaculture sector still posted a 6.7 percent increase in production.

Seaweeds contributed the biggest part of aquaculture production, bringing in 65.5 percent in 1997. Other aquaculture commodites were milkfish (16.9 percent), tilapia (9.6 percent), shrimp and prawn (4.3 percent), and others such as carps, mudcrabs, siganids and groupers (3.7 percent).

In the world market, the Philippines was the fourth biggest producer of seaweeds and other aquatic plants, contributing 6 percent in the world production in 1995.

In terms of exports, the fisheries sector earned P16 billion (174,000 metric tons) in 1997, an increase of 8 percent and 5.6 percent in value and volume over the previous year.

Major fishery commodity exports were tuna, shrimps and prawn, seaweeds, octopus, cuttlefish and squid, crabs, cultured pearls, ornamental fishes, abalone, and sea cucumbers.

In terms of employment, the more than one million people, or about 5 percent of the national labor force, were employed directly or indirectly by the fishery sector as of 1997. Of this, 26 percent were in aquaculture. The other 65 percent were in municipal fisheries and 6 percent in commercial fisheries.

It is expected that aquaculture will continue to strengthen its role in contributing to food security and poverty alleviation in many developing countries.

With globally stagnating yields from capture fisheries and increasing demand for fish and fishery products, expectations for aquaculture to increase its contribution to the world�s production of aquatic food are very high. Throughout its long history, aquaculture has contributed significantly to food supply and rural development, particularly in many communities of resource poor farmers in Asia. Morover, with more than 80% of the world�s population expected to be living in developing countries by 2010, there is much scope for hope that aquaculture will continue to strengthen its role in contributing to food security and poverty alleviation in many developing countries.

The vast majority of finfish produced by aquaculture is produced in extensive and semi-intensive freshwater culture systems, with Chinese and Indian carps contributing more than 42% of global total aquaculture production. Coastal aquaculture is dominated by production of aquatic plants (seaweeds) and molluscs. The production share of crustaceans and finfish is rather low (i.e. less than 15%), however their relative contributions to the value of total coastal aquaculture production is significant (i.e. 50%).

Low price products. The bulk of aquaculture production is for subsistence and domestic markets. High price products are largely for exports and foreign exchange. Aquaculture production of high price species, such as shrimp and salmon, have contributed significantly to recent increase in global trade of fish and fishery products. There are increasing trends of trade of farmed shrimp and fish, not only between developing and developed countries but also among developing countries.

There is significant potential for continued expansion and growth of aquaculture and culture-based fisheries. Even in Asia, the full potential for further development has not yet been realized. The recent Session of the FAO Committee on Fisheries stressed the increasingly important role of inland capture fisheries and aquaculture in fish production and in human nutrition and poverty alleviation in many rural areas, and emphasized enhancement of inland fish production through integrated aquaculture-agriculture farming systems and integrated utilization of small and medium size water bodies. Additional opportunities/strategies for further development and increased food production include, for example, :

In 1995, governments adopted the Code of Conduct for Responible Fisheries. There is growing recognition of the importance of the provisions of the Code for existing and future aquaculture developments in all countries.

Governments, producers, and other stakeholders concerned with aquaculture development face a number of challenges when implementing the relevant principles and provisions of the Code of Conduct for Responsible Fisheries. A selection of major relevant issues and challenges is given below.

Many policy makers are not aware of the importance of aquaculture and inland fisheries for food supplies and income generation. These sectors are often not properly represented or empowered within existing institutional frameworks. Decisions over developments affecting fisheries, aquaculture and aquatic environments are often made with no consideration of these sectors. Most fish producers suffer from the absence or inadequacy of (i) defined rights of their specific practices, and (ii) institutional support, whether public or private.

• Comprehensive policies and associated institutional/legal frameworks in support of sustainable development of aquaculture and culture-based fisheries; need for improved communication, cooperation and coordination among institutions, agencies and major stakehoders concerned with aquaculture and culture-based fisheries;

• Strengthened institutional capacity to manage the sector and to expand the knowledge base in order to enable implementation of sustainable development policies and plans;

• Enhanced participation and consultation of all stakeholders, public and private, in the planning, development and management of aquaculture and culture-based fisheries; strengthening of community-based management of resources; support to non-governmental organziations and private sector associations (e.g. groups of farmers, breeders, processors, traders, etc). promotion � among private sector groups - of voluntary self-regulatory management schemes (e.g. codes of practice, best management practices, etc.)

• "Enabling environments" in support of aquaculture development, including provision for fair access to resources, mechanisms for conflict resoultion and access to information, credit and markets.

• improving efficiency in the use of water resources
• improving site selection and allocation of land/space
• improving selection and use of seed, broodstock, feed/fertilizer and other inputs (chemicals, drugs, equipment)

• integration with other agricultural activities, e.g. irrigation, rice production, animal husbandry
• appropriate fish health management
• appropriate use of genetic resources and biotechnology

• reducing environmental impacts of aquaculture
• avoiding impacts on aquaculture resulting from aquatic pollution by non-aquaculture activities

• training, extension, education, transfer of appropriate technology
• awareness raising among aquaculturists and general public
• improved provision of and access to information

For example, the Government of the Philippines, through the Department of Agriculture-Bureau of Fisheries and Aquatic Resources, implements a national modernization program for the agricultural and fisheries sector called Agrikulturang MakaMASA, or "Agriculture for the Masses" Program. The issues and concerns of the fisheries sector are covered by the fisheries component of the program.

Addressing the twin priority goals of the present administration, which are food security and poverty alleviation, the fisheries program component aims to increase fish production primarily through aquaculture.

Program thrusts cover:

• Fisheries production
• Trainign and extension services
• Information and marketing support
• Research and development, and

• Rural finance in fisheries.

• commitment to promote aquaculture for food security and rural development (follow-up to World Food Summit Action Plan)

• Article 5 of the Code of Conduct: Special requirements of developing countries and continued need for technical and financial assistance

• Suggestion by NACA during recent COFI Session: Formulation of a Sub-Programme on Aquaculture Development within the Inter-regional Programme in support of the implementation of the Code of Conduct
• The need for continued regional cooperation, particularly through strengthened cooperation among regional organizations such as, for example, NACA, SEAFDEC, INFOFISH, etc.

• Continued support to Regional Programmes on specialized themes such as, for example, Sustainable Aquaculture for Rural Development, and Development of Technical Guidelines on Quarantine and Health Certification, and Establishment of Information Systems, for the Responsible Movement of Live Aquatic Animals;

• Growing need for technical review and agreement on international standards (for example, on food safety and quality, biotechnology and biosafety, environment, use of inputs, production practices, etc) will require appropriate international forum for discussion and consensus-building
• Suggestion by COFI : establishment of a COFI Sub-Committee on Aquaculture

• Follow-up to FAO Bangkok Consultation on Policies for Sustainable Shrimp Culture, especially regarding best practices in shrimp culture and institutional and regulatory frameworks of coastal aquaculture development
• Strengthened support to national and international initiatives aiming at the formulation and implementation of voluntary self-regulatory codes of practice, supported by technical guidelines and practical manuals

Thank you very much