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Seafood Companies and DIY Approach to Sustainable Seafood
Rich Boot - FishChoice
MSC Certified Tuna from the PNA Fishery(Parties to the Nauru Agreement)
June 11th 2019 Bangkok
Henk Brus Managing Director Pacifical c.v.
PACIFICAL▪ A unique Public – Private joint venture marketing
company (founded in 2011)
▪ Set up jointly by the 8 PNA countries with
Sustunable bv
▪ To promote sustainable tuna catch, the PNA region
as source and develop local economies
▪ To create efficient supply chains for MSC certified
Free School Skipjack and Yellowfin Tuna caught in
PNA waters in cooperation with industry partners .
▪ Overlook the entire ‘Chain Of Custody’ from sea to
shelf
▪ Already present in more than 25 countries
GEOGRAPHIC INDICATION
*EEZ: Exclusive Economic Zone → 200 nautical miles from coast
8 +1 Pacific Islands nations = PNA
PNA Leaders Wanted TRADE Not AID
Enforcing Sustainable
Fishing
Taking ownership
of their Resource
Developing their
Economy
Having Fair Share of Economic Return on their Resource
Building Relations with End Markets
Integral part of our model
Source: SPC 2017
Sustainable Stocks in PNA waters + WCPO
Free School
▪ If not thoroughly monitored and checked 24/7
during all stages of the supply chain there is a
very high risk of “mixing” non–MSC FAD catch
with MSC free school catch
▪ The highest risks occur during the stages until
the cannery door
▪ Within most canneries traceability systems are
initially not set up for full accurate traceability
▪ Most processors need to adjust their systems
to meet the Pacifical CoC Traceability standard.
▪ PARTLY TRACEABLE = NOT TRACEABLE
Exclude Risk of Fraud
Our PNA/ Pacifical Supply Chain(MoU)▪ 223 Purse Seiners
▪ 650 PNA MSC observers.
▪ 72 Carriers
▪ 10 Fishing companies
▪ 4 Traders
▪ 20+ Processors
MSC Tonnage landed in 2017 :
60,000 MT
Realized MSC Tonnage 2018:
50,000 MT
Expected MSC Tonnage 2019:
80,000 MT
2 8 81
544
9131172
2013 2014 2015 2016 2017 2018
Total number of fishing trips
PNA/ Pacifical MSC Plus Chain of Custody
The Batch Certificate The MTCB#
Market Side Umbrella Chain of Custody
▪ Choice out of Multiple actors at each stage of the
PNA tuna supply chain
▪ All meeting one and the same rigid standard
▪ All reporting in one IT system
▪ No self certification but continuous oversight by
an independent party – fully transparent
▪ Covering from catch to distribution center
▪ Ability to use multiple fishing companies, traders,
processors, production locations, brands
▪ And maintain the same high standard and
traceability throughout
▪ At a fixed service fee – 100% transparent
One System – One DefinitionOne Supply Chain
Our Method
<1% Bigeye by Catch
Free Swimming Schools minimal By-Catch & Mature Tuna: Slightly higher cost but through labelling/marketing more valuable
FAD at current scale is an unsustainable method: high by-catch of baby bigeye, baby yellowfin and sharks
Impact catching methods on Tuna
FADS 6.8% BigeyeCatch
6.80%
0% 20% 40% 60% 80%
Skipjack
Bigeye
Catching method: Drifting FAD
0.80%
0% 20% 40% 60% 80%
Skipjack
Bigeye
Catching method: Free School
Social Accountability
▪ All Vessels in PNA MSC Scheme are large Purse
seiners + 900 tonnes
▪ Each seiner carries 24/7 an independent on-
board observer employed by a PNA nation
▪ Observers reports to PNA also on on-board
conditions – safety - crews & captain relation/
conflicts
▪ Each vessel in the scheme should follow
Pacifical’s Social accountability Guidelines
▪ PNA has initiated at WCPFC the development of
on-board labor and social accountability
standards for all seiners
▪ On board each seiner labor laws of Flag states
now apply – high variation JPN vs PHIL
Ethical Practices in all Processing Plants
▪ All processing plants in our Pacifical
scheme meet any of these below
standards :
Pacifical is BLOCKCHAIN ready!
• Look UP BY
• A. The tracking / production code
• ( created by the processors and communicated to the Pacifical team –which checks and loads it into the Pacifical database )
• B. The MTCB# = MSC Trip Certificate Batch Number ( issued by the PNA Office ) and shared with the applicant and Pacifical. Data is loaded into the Pacifical database, a hard copy of the MTCB# is stored.
• First cooperation is a fact! Many will follow!
Pacifical Server Ethereum BlockchainAtato API & notary Client lookup
We Will Have To Do It Ourselves
We Have To Lead By Example
Thank you ! in name of our shareholders !
What Works –What Doesn’t
WorkCreating Integrated Fisheries Management
Systems in the Emerging World / Small Vessel Fisheries
Jerry Knecht – North Atlantic Seafoods/Bali Seafood International
The Business Case for
Sustainable Fisheries
Long term supply drives the industry, supports food security, contributes to
community, country, international economic
growth.
Capital investment in fisheries supply chains
requires long term supply to justify business expenditure.
Long term supply is only ensured by: regulation
where there is rule of law -behavioral change on the water where rule of law is
weak/non existent.
Law / regulation is making progress on high seas – rule
of law countries with technology assistance.
Result is rationalization of supply chains.
Behavioral change on the water works for emerging economies/small vessel
fisheries. Result is rationalization of supply
chains.
Capital investment in emerging world/small vessel
supply chains requires supply risk mitigation and
supply chain rationalization.
People First….
Conservation Second
• In the emerging world small vessels have little or no technology to assist in regulatory enforcement or sustainable fishing methods
• There is no enforcement or political will supporting fisheries policy or fisheries management
• Behavioral change is created by incenting change at the community level…..bottom up. Top down is an exercise in futility.
• Behavioral incentives only work if results are tangible and short term to first, long term second
• Sustainable fishing and community based fisheries management are a direct result of tangible incentives.
• Long term supply = behavioral change on the water = sustainable fishing
Bottom Up vs Top Down
• Top down regulation does not work without rule of law. Proven fact.
• Bottom up focuses on change agents – fishers, their families, and communities.
• Incentives must reward fishers and their communities to be successful.
• Redistribution of supply chain profits to fishers
• Creation of support institutions ultimately owned by the community ex: gear shop, education center, ice factory
• Enlistment of community services from existing providers ex: MFI banking, household finance education, preventative health care education
• Drive income across communities to avoid inequality ex: training/hiring community help for support institutions, supply chain work, social impact capital allocation
The Bali Seafood International Model
• Created jobs in supply chain –processing plant
• Improved water supply
• Improved roads
• Set up support enterprises ex: canteen, educational outreach
Investment in
community
• Pay for grade
• Consistent access to foreign markets
• Transparent pricing
• Reliable payment terms
• Community investment “capital pool”
Change behavior on
the water through
incentives
• Establish community fisheries governance structure
• Recruit management support ex: vessel registry, exclusive island fishing zone, limit licensing
Support CBFM
Lessons learned and
Shared
• Bottom up/people first model is proven across the globe ex; Sierra Leone
• Top down regulation/policy development only works where there is rule of law
• Supply chain investment is appropriate for private capital
• Capital is available for supply chain investment if supply risk can be mitigated
• Community owned support enterprises require philanthropic or development fund seed capital
• BSI has no NGO support or philanthropic funding. Seed capital is non US
• Successful integrated fishing models require “task focused” collaboration / triple bottom line structure
• Seed capital funding
• Community ownership model development
• Community educational support
Stacy Schultz
Fortune Fish & Gourmet Director of Marketing /Sustainability Coordinator
Sea Pact Chair
Why Fortune Fish & Gourmet Decided to Engage in Sustainability
• Promote the sale of more sustainable items
• Create a change in our customers’ buying habits
Variety of External Tools for Sustainability
• John G. Shedd Aquarium
• Monterey Bay Aquarium’s Seafood Watch
• MSC & ASC (Business Case)
• Sustainable Fisheries Partnership
• FisheryProgress.org
• NOAA FishWatch
• FishWise
• FishChoice
• Blue Ocean Institute
Internal Tools
• Green Sheet
• Branding
• Sustainability Initiative
• Reporting with Qlikview
Frustrations
• Sustainability Reporting for Customers and NGOs• Various Combinations of Data Elements
• Various Formats
• Excessive Data Requested
• Too many Systems for Rating & Certifying• GSSSI
Future of Fortune Sustainability
• Sea Pact
• Target 75
• Aquaculture Advocacy- SATS
• Traceability
• James Beard Smart Catch
• UN Sustainable Development Goals (STGs)
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