The Future of SeafoodThe Future of SeafoodThe The Seafood ChoicesSeafood Choices MovementMovement

Michael SuttonMichael SuttonConservation & Science ProgramConservation & Science Program

The David & Lucile Packard FoundationThe David & Lucile Packard Foundation

Biomass of table fish in 1900

(t/km2)

(map: V. Christensen, SAUP)

Biomass of table fish in 1999 (map: V. Christensen, SAUP)

‘Fishing down’ marine food webs occurs everywhere.

We’ve Exceeded the Limit We’ve Exceeded the Limit of the Seasof the Seas

“Sixty percent of the world’s 200 “Sixty percent of the world’s 200 most valuable marine fish species most valuable marine fish species are overexploited and in urgent are overexploited and in urgent need of management. . .”need of management. . .”----U.N. Food & Agriculture OrganizationU.N. Food & Agriculture Organization

75% of the world’s fisheries are fully 75% of the world’s fisheries are fully exploited, overexploited or depletedexploited, overexploited or depleted

Significantly depleted orrecovering from depletion

Overexploited

Fully exploited

Underexploited ormoderately exploited

Major global marine fish stocks*0

20

40

60

80

100%

% of total stocks for whichinformation is available

Source: FAO (2002). The State of World Fisheries and Aquaculture 2002.

Many Modern Fisheries are Many Modern Fisheries are Wasteful and DestructiveWasteful and Destructive

“Worldwide, between 18 and 40 “Worldwide, between 18 and 40 million tons of unwanted million tons of unwanted marine wildlife are caught marine wildlife are caught incidental to commercial fishing incidental to commercial fishing operations and discarded at sea operations and discarded at sea each year.”each year.”

----U.N. FAO ReportU.N. FAO Report

Fisheries are Heavily Fisheries are Heavily SubsidizedSubsidized

Governments pay tens of Governments pay tens of billions of dollars each year to billions of dollars each year to subsidize the commercial fishing subsidize the commercial fishing industry, which generates only industry, which generates only about $70 billion in revenue.about $70 billion in revenue.

----FAO estimateFAO estimate

Total fish production is increasing slowly, Total fish production is increasing slowly, mostly due to enormous growth in aquaculturemostly due to enormous growth in aquaculture

Wild -non-food

uses

Wild -

edib

leAquacu

lture

199

1

1992

199

3

1994

199

5

1996

199

7

1998

199

9

2000

200

1

98 99 102110 112

120 123 118127 130 129

0

50

100

150M

Global fish production (millions of tonnes)

96-01CAGR

11.0%

0.9%

0.3%

Notes: Overall fish supply growth was 2.8 % between 1991-2001, 1.4% between 1996-2001; Assumes all aquaculture is for food uses

Source: FAO “State of World Fisheries and Aquaculture, 2002”; FAO “Trends in Global Aquaculture Production”

Total value of production 2000:

$131B

1,500,000

1,600,000

1,700,000

1,800,000

1,900,000

2,000,000

2,100,000

2,200,000

2,300,000

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996

Met

ric

Tons

Fish Farming is Growing RapidlyFish Farming is Growing RapidlyPacific Marine and Brackish Water Aquaculture Production: 1987-1996

What to Do?What to Do?

•• Strengthen fisheries scienceStrengthen fisheries science•• Impose stricter catch limitsImpose stricter catch limits•• Enact better fisheries laws, stronger Enact better fisheries laws, stronger

treaties, tougher regulationstreaties, tougher regulations•• Establish areas offEstablish areas off--limits to fishinglimits to fishing•• So far . . . So far . . . None of this has worked!None of this has worked!•• Public largely unaware & unconcernedPublic largely unaware & unconcerned•• Politics often defeats conservationPolitics often defeats conservation

New ApproachesNew Approaches

•• Educate seafood purveyors and Educate seafood purveyors and consumers about best choicesconsumers about best choices

•• Enlist market forces and the power Enlist market forces and the power of consumer choice for conservationof consumer choice for conservation

•• Label seafood from healthy fisheriesLabel seafood from healthy fisheries•• Build business support for better Build business support for better

managementmanagement

Europe and the U.S. are the two largest, Europe and the U.S. are the two largest, environmentally progressive seafood marketsenvironmentally progressive seafood markets

Other BrazilMalaysiaVietnamBngldsh

Thailand

PhillipinesKorea

RussiaIndiaUS

JapanEU+

China

Consumption

99

0

20

40

60

80

100%

Apparent consumption(millions oftonnes, 2001)

EU+ & US: 16% of total

Other ThailandCanadaKoreaHong KongChina

US

EU+

Japan

Imports

$51B

0

20

40

60

80

100%

Global importvalue ($B, 2001) EU+ &

US: 45% of total

Notes:EU+ includes EU member countries plus Switzerland and Norway; Consumption by country data assumes relative weighting of countries’ consumption stayed constant between 1999 and 2001. Apparent consumption defined as capture less inedible products plus imports minus exports. Excludes intra-EU trade.

Source: FAO Fishstat; FAO “Fish and Fishery Products – Apparent Consumption, 1997-1999”

The U.S. and Europe source seafood globally The U.S. and Europe source seafood globally

Notes: Average import flows for 1998-2000. Source: FAO State of World Fisheries and Aquaculture, 2002

Europe import flows

North America import flows

Percent of total imports

U.S. Seafood Consumption (Per Capita)

11.8

10.211

11.8

10.3

11.812.5

1515.6

14.815.6

0

2

4

6

8

10

12

14

16

18

1920 1930 1940 1950 1960 1970 1980 1990 2000 2001 2002

Y

Con

sum

ptio

n (P

ound

s)

T op 10 Favorite Seafood Species

0 50 100 150 200 250 300 350

Shrimp

Salmon

Catfish

Cod

Haddock

Flounder

Fish Patties

Lobster

Crabs

Trout

Number of Respondents (n=1640)

U.S. Seafood TrendsU.S. Seafood Trends

•• Americans are consuming more, Americans are consuming more, while producing and exporting lesswhile producing and exporting less

•• Leading commodities: Shrimp, Leading commodities: Shrimp, tuna, salmon, whitefish, catfishtuna, salmon, whitefish, catfish

•• U.S. Seafood Deficit Growing: U.S. Seafood Deficit Growing: Domestic landings downDomestic landings down

•• Imports now make up 77% of total Imports now make up 77% of total seafood consumed!seafood consumed!

DolphinDolphin--Safe TunaSafe Tuna

•• Law failed to Law failed to protect dolphinsprotect dolphins

•• Consumer ire Consumer ire fanned by videofanned by video

•• Earth Day 1990: Earth Day 1990: StarkistStarkist actsacts

•• Dolphin mortality Dolphin mortality declines steeplydeclines steeply

•• DolphinDolphin--Safe is Safe is the new normthe new norm

More People Have Taken Consumer Action More People Have Taken Consumer Action Than Political Or Membership ActionsThan Political Or Membership Actions

8%13%

15%

38%42%

59%66%

93%

0% 20% 40% 60% 80% 100%

conumer action political action member/donor action

Data from The Mellman Group, 1997

% taking such action in past 12 monthsAmong environmentalists (6-10 on 10 pt scale)

Purchased b/c profits go to enviro cause

Contacted media outlet

Not purchased product b/c harmful enviro impact

recycle

Made enviro $ contribution

Voted for cand on enviroVolunteered at env org

Contacted elected officials

The Worldwide Green MarketThe Worldwide Green Market

•• Polls show consumers becoming more Polls show consumers becoming more concerned about origins of foodconcerned about origins of food

•• Research suggests green consumer Research suggests green consumer movement is large and growingmovement is large and growing

•• Majority of Americans willing to buy Majority of Americans willing to buy environmentallyenvironmentally--friendly food productsfriendly food products

•• Consumers are hungry for informationConsumers are hungry for information

Certification & Certification & EcolabelingEcolabeling

1993: Forest Stewardship 1993: Forest Stewardship Council (Promotes wellCouncil (Promotes well--managed forests)managed forests)

1996: Marine Stewardship 1996: Marine Stewardship Council (Promotes Council (Promotes sustainable fisheries)sustainable fisheries)

1999: Marine Aquarium 1999: Marine Aquarium Council (Promotes cyanideCouncil (Promotes cyanide--free saltwater aquarium fish)free saltwater aquarium fish)

Many People are Willing to Modify Their Many People are Willing to Modify Their Purchasing Behavior to Help the OceansPurchasing Behavior to Help the Oceans

42% 44% 46%62%

0%

10%

20%

30%

40%

50%

60%

70%

80%

strongly agree very effective strongly agree almostcertain/likely

Not eat fished classified by govt

as overfishedI would support

actions to protect oceans, even if it

meant paying more for seafood

Outlaw fishing deadly to marine

mammals even if it mean higher prices

Data from BR&S 11/99, Mellman 6/96, Yale SFES 5/99

Only eat fish caught/farmed in a way that protects

ocean

Seafood Industry is ComplexSeafood Industry is Complex

U.S. fishermenU.S.

primary processors

Brokers and traders**

U.S. aquaculture

Foreign fishermen

Foreign aquaculture

U.S. secondary processors

Foreign primary

processors

Foreign secondary processors

Importers

Supermarkets

Fish markets

Restaurants

Hotels

Institutions

Specialty seafood

wholesalers / distributors

Broadline foodservice distributors

Retail

Foodservice

Consu

mers ($

55B in

purch

ases)

Example: U.S. seafood supply chain

** Bypassed relatively frequently in value chain

Source: Derived from “Mapping Global Fisheries and Seafood Sectors,” Packard Foundation

Seafood EcolabelingSeafood Ecolabeling

Marine Stewardship CouncilMarine Stewardship Council

•• OverfishingOverfishing is bad is bad for businessfor business

•• Partners found Partners found common groundcommon ground

•• MSC launched in MSC launched in 19951995

•• Market incentives Market incentives influence politicsinfluence politics

The Certification ProcessThe Certification Process

•• Client selects accredited certifierClient selects accredited certifier•• Confidential preConfidential pre--assessmentassessment•• Client decides whether to proceed Client decides whether to proceed

with full assessmentwith full assessment•• Certification team conducts full Certification team conducts full

assessment including consultationsassessment including consultations•• External peer reviewExternal peer review•• Final decision on certificationFinal decision on certification

Improvementin marine

conservationoutcomes

MSC Certification ProcessMSC Certification Process

Fisheriesseek

certification

Fisheriesundergo

assessment

Fisheriesare certified,some with

corrective actions

Fisheriesretain

certification

Labeled productbecomes

available inmarketplace

Regulatorschange policytowards MSC

standards

Chain ofcustody seeks

and attainscertification

Consumersdemand

MSC-certifiedproduct

Processors/retailersdemand

certified fish

MSC sets acertification

standard thatsome largefisheriescan meet

Somefisherieschange

practices

Somefisherieschange

practices

Somefisherieschange

practices

ENGOs & others encourage

fisheries to seek certification

ENGOs & others monitor

assessment process

ENGOs & others monitor

corrective actions

First Certified FisheriesFirst Certified Fisheries

MSC has certified 7 fisheries; 11 are in MSC has certified 7 fisheries; 11 are in process, suggesting sustained interestprocess, suggesting sustained interest

1997 1998 1999 2000 2001 2002 2003

MSC founded

W. Australian Rock Lobster (1st certified)

Alaskan Salmon

Burry Inlet Cockles

Loch Torridon Nephrops

New Zealand Hoki

SW Mackerel Handline

Thames Herring

Alaska Pollock

BC Salmon

Chilean Hake

Baja Spiny LobsterN. Sea Herring

S. African Hake

South Georgia Toothfish

Alaskan Halibut

BC Halibut

Alaskan Sablefish

In-process fisheries(certification process

start year)

Certified fisheries(year of certification)

Source: MSC website

Mackerel Icefish

First Labeled ProductsFirst Labeled Products

First MSC Labeled Seafood Appears on First MSC Labeled Seafood Appears on World MarketsWorld Markets

0

20

40

60

80

100

120

140

160

180

Apr-00Aug-00

Dec-00Apr-01

Aug-01Dec-01

Apr-02Aug-02

Dec-02Apr-03

MSC Labelled Product Lines Over TimeMar 00 - July 03

M a r 2 0 0 0 : We s te rn A us tra lia ro c k lo bs te rM a r 2 0 0 0 : Tha m e s he rringS e p 2 0 0 0 : A la s ka s a lm o nM a r 2 0 0 1: N e w Ze a la nd ho ki

M a y 2 0 0 1: S o uthwe s t Ha ndline m a c ke re lA pril 2 0 0 1: B urry Inle t c o c kle s

J a n 2 0 0 3 : Lo c h To rrido n C re e l N e phro ps

MSC is in process to certify 4% of MSC is in process to certify 4% of global wild, edible supply of seafoodglobal wild, edible supply of seafood

Aquaculture

Non-fooduse

Otherwild-caught

edible

MSCfisheries*

Otherwild-caught

edible

MSCfisheries*

Certificationin-process

Certificationachieved

S. LobsterToothfishBC HalibutSablefishBC SalmonAK Halibut

C HakeSA Hake

NS Herring

Pollock

T Herring

Nephrops

Mackerel

Cockles

R. Lobster

Hoki

AK Salmon

World supply World ediblewild-caught

Certificationstatus

MSCfisheries*

128.8M 61.9M 2.6M 2.6M

0

20

40

60

80

100%

Percent of 2001global fish supply

*Includes both certified and in-process fisheries1 For comparison, organic foods make up about 2% of U.S. grocery sales Source: FishSTAT; MSC website; Wall Street Journal (7/29/03)

0

200

400

600

800

1000

1200

1400

1600

1800

2000

1993 1994 1995 1996 1997 1998 1999 2000 20010

10

20

30

40

50

60

70

80

MillionAcres

Certificates

Number of Chain-of-Custody CertificatesCertified Forest Area in millions of acres

FSC Success: Supply

Promoting Seafood ChoicesPromoting Seafood Choices

Seafood WatchSeafood Watch, , Give Swordfish a BreakGive Swordfish a Break, , and and Seafood Lover’s AlmanacSeafood Lover’s Almanac all all successfulsuccessful

FishingIndustry

Processorsand

DistributorsWholesalers

Restaurant/Food Service

RetailersConsumers-

BrandedProducts

Consumers67%$31B

9%$4B

• Fragmented, but with opinion leaders

• Profitable

• Very fragmented• Low profitability (Pre-tax

margins <3%)

• Concentrated• Profitable

• Fragmentedbut not in top tier

• Low Profitability

RetailersConsumers-

FreshSeafood

24%$11B

• Fragmentedbut not in top tier

• Low Profitability

An Informed Food Service Sector can be An Informed Food Service Sector can be the Gatekeeper to Seafood Consumersthe Gatekeeper to Seafood Consumers

Promoting Seafood ChoicesPromoting Seafood Choices

Caviar EmptorCaviar Emptor campaign campaign works with gourmetsworks with gourmets

The Seafood Choices AllianceThe Seafood Choices Alliance

www.seafoodchoices.orgwww.seafoodchoices.org

•• Membership Membership growing fastgrowing fast

•• Provides Provides information on information on best choicesbest choices

•• Coordinates Coordinates actionaction

Sustainable SeafoodSustainable Seafood

•• Seafood ChoicesSeafood Choices initiative part of a initiative part of a larger movementlarger movement

•• Growing preference for local, seasonal, Growing preference for local, seasonal, sustainable cuisinesustainable cuisine

•• Movement Movement notnot led by consumers; led by consumers; gatekeeper chefs/companies are keygatekeeper chefs/companies are key

•• Consumer awareness programs are Consumer awareness programs are gaining ground in major marketsgaining ground in major markets

Potential BenefitsPotential Benefits

•• Opportunity to highlight Opportunity to highlight sustainability in the public eyesustainability in the public eye

•• Access to new markets through Access to new markets through MSC certificationMSC certification

•• Powerful incentives for more Powerful incentives for more effective managementeffective management

•• Healthy oceans = more seafoodHealthy oceans = more seafood