Foro Global sobre Seguridad Alimentaria y Nutrición (Foro FSN)

Anna Child

FAO, FIPM
United States of America

9. What would promote fish value chain development that supports food security and nutrition?

Improving access to more effective processing capabilities in value chains is key to better supporting food security and nutrition. Specifically for medium and low value species for the domestic market, traditional processing methods of smoking and drying still dominate and as we know, are subject to poor hygienic conditions and high post-harvest losses. Processing infrastructure such as solar driers, raised racks, and chorkor smokers could provide low-cost and efficient processing methods that would be realistic for use in developing country settings. Coupled with proper training, use of these processing methods could not only result in reduced post-harvest losses, but also improve income. A 2004 FAO project in Burundi supplied and trained processors to build and use raised racks for drying fish instead of drying on the ground. Not only were post-harvest losses reduced significantly, but the price of the dried fish doubled. This nutritious product now has a longer shelf life, allowing it to be transported to inland markets where protein deficiencies are especially notable. In terms of processing for international markets, most fish suppliers in developing countries are earning limited profit from their valuable natural resources as they are generally supplying raw material. Therefore, more of an emphasis needs to be placed on producing value-added fish products domestically (for domestic fish or low-cost imported fish), which will create a more profitable product as well as an entirely new service sector in terms of employment and skills development, strengthening the economic base of the country.

Value chain development must focus on promotion and marketing of fish products. This is the case both domestically (especially in countries that currently have low domestic consumption rates) and internationally. A FAO analysis conducted from 2009 to 2012 on small-scale fishery and aquaculture value chains in fourteen countries found that in many developing countries, domestic marketing and sales could help develop alternative income streams for producers while also helping countries achieve improved food security and nutrition. More so, the analysis found that though international market prices for export products were usually higher than domestic market prices, the difference was often substantially less significant than the authors presupposed. In Honduras for instance, the analysis found that when taking into account savings from transportation costs, wholesale shrimp prices were 20 percent higher than export prices. The lack of marketing in Honduras was identified as one of the major reasons their domestic market has been unable to expand and helps to explain why a majority of their species is currently exported. Some marketing and promotion techniques should be employed by fishers and fish farmers themselves, such as labelling strategies to denote quality and origin, yet other larger campaigns to increase local consumption is needed by governments. Careful research on successful marketing strategies must be conducted, especially on its costs, benefits and overall trade offs. This is especially true where developing countries aim to access international markets through certification or using other marketing schemes. If costs of the schemes are unknown, it is difficult to realistically quantify the economic benefits of accessing these markets.

Systemic issues in value chain development will be the most difficult to overcome, but are some of the most important challenges to address in improving food and nutrition security. On a macro environmental and policy level, intra-regional trade needs to be strategically formalized and developed in conjunction with relevant initiatives such as the Trade Facilitation and Aid for Trade put forth by the WTO. Currently, informal fish trade dominates in many parts of the developing world and is grossly underdeveloped, especially in Africa. Barriers to intra-regional fish trade that are directly connected to value chain development must be addressed, such as the inadequate infrastructure for large trade volumes as well as the lack of trade regulations and monitoring. To help minimize negative impacts on livelihoods and reducing the supply of fish through formalization, measures should consider including components to speed up transaction procedures, reduce hassle and trade costs at the borders, and provide educational outreach about new rules and regulations. The implementation of a Regional Fish Trade Strategy for the East-Southern Africa and Indian Ocean Region (SMARTFISH Programme) is building regional trade and marketing in the East-Southern Africa region with national and regional consensus to support strategy development. Successes and challenges documented through this project could provide helpful lessons learned when working to formalize regional trade elsewhere.

8. What policies are necessary for fair and improved trading?

Policies are needed to help make prices more transparent and accessible to all value-chain agents, particularly fishers and fish farmers themselves. With the worldwide spread of cellular mobile technology, it would be appropriate to do this through programs collecting and sharing price data on these devises. Price information can be used as leverage for agents in their price negotiations, leading to a better functioning market with reduced price fluctuations. One example of a method for disseminating information on prices is through the radio, as there has been success documented with a FAO/Common Funds for Commodity project Mozambique, where the local radio station broadcast fish prices every Friday.

Additionally, policies to help adopt more standardized pricing methods locally or even regionally could help producers obtain a more equitable price for their products, help establish more consistency in profits over time and better distribute the negotiation power along the value-chain. In many developing countries, fish price is dependent on a wide range of variables somewhat out of the control of fishers, such as fish size and bargaining power. This is especially problematic as the most vulnerable populations have the least control over these variables and are left feeling disempowered by their livelihoods. Pricing methods could be by weight, bags, hands, or whatever measurement was most accessible to local stakeholders. Trainings in consistent pricing methods and supplies such as weight-scales or other measurement devices could help provide an initial first step. 

 

7. How sustainable aquaculture can be promoted for food security and nutrition, as well as livelihoods, into the longer term?

For aquaculture to continue to promote food security/nutrition and livelihoods in a sustainable way, specific policies and a financial environment conducive for establishing new small-scale fish farms and adopting appropriate and sustainable farming methods are needed. Low-interest loans, access to credit and/or micro-grants to foster investment and start-up farms are crucial to ensuring that there are opportunities for small-scale farmers to be involved in the aquaculture sector. Furthermore, exploring beneficial arrangements such as “clusters” could help small-scale farmers work together to share infrastructure and knowledge as well as obtain certification (such as GLOBALG.A.P). For aquaculture’s long-term sustainability, it is vital that aquaculture not only supports a highly consolidated industry, but also maintains room for small-scale, diversified fish farms. Of course, careful research is needed when deciding to establish new fish farms. Clearly, land and water availability must be ensured and diligent thought must be given to analyse how the proposed increased competition will impact existing aquaculture farms. In addition, training and financing is needed to help fish farmers adopt appropriate aquaculture technologies. For instance, a case study analysis of the small-scale aquaculture farms in Cambodia in 2011 by FAO found that fish farmers need to move towards using the most efficient pellet feed for fish food instead of low-value fish “trash” fish.  Adopting these practices would reduce fish mortality rates, improve the quality of fish and avoid the depletion of low-value fish, which are highly nutritious and should be promoted for direct human consumption use instead.