Summary slides: "Mapping Fishmeal Supply Chain in Songkhla"

Summary of Research “Mapping Shrimp Feed Supply Chain in Songkhla Province to Facilitate Feed Dialogue�

Submitted to Oxfam Thailand

30 July 2014 Lead Researcher: Sarinee Achavanuntakul Research Team: James True, Srisakul Piromwarakorn Prince of Songkhla University Pattraporn Yamla-Or, Koranis Tanangsnakool, Sasiwimon Klongakkara Sal Forest Ltd. : www.salforest.com

1

Overview of fishmeal industry: Thailand Catch Per Unit Effort from 1961 – 2010 (kilograms per hour)

Source: Boonwanich & Boonpakdee, 2009

2

Overview of fishmeal industry: Thailand Thailand’s fishmeal production and producers, 1987 - 2011 Fishmeal production (tons)

Number of fishmeal producers

Number of fishmeal producers

Fishmeal production (tons)

Source: Fishery Statistics Analysis and Research Group (DoF), 2013

3

Overview of fishmeal industry: Songkhla  Fishmeal production trend has been fairly steady  Songkhla is the second largest fishmeal producer in 2011 (Dept. of Fisheries) and the fourth largest in 2013 (Thai Food Processors Association)  Currently there are 9 fishmeal producers in operation in Songkhla  Fishmeal price at Songkhla is among the cheapest compare to other provinces 4

Overview of fishmeal industry: Songkhla Average prices of fishmeal by province in 2011 (Baht per kilogram)

Source: Fishery Statistics Analysis and Research Group (FSARG), DoF, 2013

5

Overview of fishmeal industry: Songkhla  In 2011, Songkhla produced 39,402 tons of fishmeal or 12.03% of fishmeal produced in Thailand  Estimated Songkhla’s total fishmeal production in 2013 was 29,300 tons (from interviews with 8 of 9 fishmeal producers in Songkhla)

Source: Fishery Statistics Analysis and Research Group (FSARG), DoF, 2013

6

Impact of trash fish industry on ecosystem  Thailand has a strong market for trash fish, including nontarget catch, under-sized and juvenile fish  Economic incentive has contributed to overfishing, especially juvenile fish, and the use of destructive gear, trawl and push nets, near shore areas  The declining CPUE has resulted in longer towing hours  Prolonged trawling operation has increased a proportion of trash fish since marine species trapped at mesh bottom obstruct juvenile fish from escaping.

7

Impact of trash fish industry on ecosystem - Changes to community composition - Alterations of habitat structure and function - Ecological extinction; overfished populations no longer interact significantly with other species in the community - Affects the recruitment and biomass of marine species

Overfishing in the Gulf of Thailand has been reported since 1980

Inappropriate fishing gears; Small mesh size -> a large amount of juvenile fish were trapped Destructive fishing gears -> CPUE has rapidly declined 8

Impact of trash fish industry on ecosystem

Source: Department of Fisheries, 1986-2011

9

Estimates of biomass from the pier at Songkhla  62% landed is trash fish, approximately 6.5 tons/vessel  Estimated 25,000 tons/year of trash fish landed at Songkhla in 2013

ทีม่ า: Field observation by research team, 2013

10

Map of fishmeal supply chain in Songkhla

Source: Interviews and analysis by research team

11

Fishmeal supply chain in Songkhla  Animal feed mills based on fishmeal traceability Company Betagro

% of Traceability 100%

Amount (tons)

Note

3,270

Buys 100% from a single fishmeal producer that is 100% traceable Buys 100% from a single fishmeal producer that is 100% traceable

Krungthai

100%

600

CPF TFM Lee Pattana

81% 47% 36%

6,839 972 600 Source: Field interviews by research team, 2014 12

Fishmeal supply chain in Songkhla  Sources and the amount of raw materials used in Songkhla fishmeal production

Red items = trash fish usage Source: Field interviews by research team, 2014

13

Fishmeal supply chain in Songkhla (cont.)  Songkhla fishmeal production and fishmeal purchasers

Red items = trash fish usage

Source: Field interviews by research team, 2014

14

Fishmeal supply chain in Songkhla  Fishmeal produced from whole fish and fishmeal produced from non-traceable whole fish by purchasers CPF Lee Pattana Thaiunion Feedmill Krungthai Betagro Other feed mills brokers farms Total

Share of fishmeal produced from whole fish (%) 24 19 19 1 0 7 19 11 100

Share of fishmeal produced from non-traceable whole fish (%) 16 29 29 0 0 0 18 8 100

Source: calculated from interviews with 8 fishmeal producers in Songkhla 15

Regulations and Standards: International level  6 most popular international standards and certified Thai companies (as of February, 2014) Thai companies that have No Thai company certified plants certified under these standards Global G.A.P. As of Feb 2014, only CPF is MSC ASC IFFO RS CPF and T.C. Union Agrotech are member

certified. (Thaiunion and Krungthai certifications have expired in 2013.)

Friend of the Sea Thai Spring Fish

BAP

29 processing plants 34 farms 8 hatcheries 6 feed mills 16

Regulations and Standards: Thai fisheries law  Shortcomings of Thai Fisheries Act, 1947  Fishing area is not clearly identified  Inappropriate fishing gears and practices (e.g. small mesh size) are not illegal  Violators must be “caught in the act”  Draft of the new fisheries act  To effectively and efficiently respond to present fishing activities  Clearer demarcation of fishing grounds and defined authority to mandate type, number, size, and components of fishing gears should help make damaging practices illegal 17

Regulations and Standards: IUU and Catch Certificate Scheme

Source: Prompoj, 2011 18

Regulations and Standards: Fishmeal certificate scheme

Source: Department of Fisheries, 2013

19

Fishmeal certificate scheme: Record  CPF was the only feed mill that submitted documents to Department of Fisheries for verification  There were 1,752 fishmeal certificates from 26 fishmeal producers during a period from 10 June – 31 December 2013

20

Fishmeal certificate scheme: Record Number of fishmeal certificate (submitted for verification), amount of materials, and amount of fishmeal by source of materials from 10 June – 31 December 2013 Source of materials Wild-Caught By-products from domestic Surimi production Imported by-products from tuna production Other by-products Unidentified Total

Fishmeal certificate

Amount of materials (kg.)

Amount of fishmeal (kg.)

1,119

75,183,563

19,302,989

167

9,664,123

2,860,026

292

17,005,650

4,974,515

171 3 1,752

9,289,366 2,542,671 44,640 111,142,702 29,724,841 Source: Department of Fisheries, 2014 21

Research Summary  Fishmeal industry creates impacts on ecosystem and local artisanal fishing community  It is the main market of trash fish, including under-sized and juvenile fish; therefore, supports the continued existence of destructive fishing conducts  In 2011, Songkhla was Thailand’s second largest fishmeal producer, the largest of the South, and accounted for 12.03% of country’s total fishmeal production.

22

Research Summary  In 2013, 8 of 9 fishmeal producers in Songkhla produced 28,509 tons of fishmeal in total  100,215 tons of raw materials >> trimmings 79,965 tons (80%), whole fish 20,250 tons (20%), of which 5,760 tons were trash fish landed in Songkhla  66% (18,814 tons) of fishmeal were sold to large feed mills, namely CPF 45%, Betagro 17%, Thaiunion Feedmill 11%  1,527 tons of fishmeal produced from trash fish were sold to  CPF 575 tons or 37.6% (300 tons of which were traceable)  Farms 300 tons or 19.7% (all were traceable)  Brokers 652 tons or 42.7% (all were traceable) 23

Research Summary  Fishmeal certificate scheme  CPF is the only feed mill participating in the scheme  Nothing can assure full traceability, not possible to check the correctness of the document content or actual fishing conducts  There is still a market for fishmeal produced from trash fish  Case study: Sustainable fishing in Peru  The need for standards that encompass all players as well as a combination of laws and industry involvement and self-regulation  The need to utilize science-based data and technology to ensure sustainability and effective enforcement  The clearer the business case for sustainability, the more incentives players have to comply with sustainability laws/standards/schemes 24

Thank you!

Summary report can be downloaded from www.salforest.com page “Knowledge” 25