Linking Small scale farmers to markets-lessons learned in Asia Pacific

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1 Linking Small scale farmers to markets-lessons learned in Asia Pacific C.V. Mohan, Sena DeSilva and Simon Wilkinson Network of Aquaculture Centres in Asia-Pacific Outline Part I Background BMPs Adoption of BMPs through Cluster/group management Case study from India Part II Market needs Certification programs Group certification Case studies from Thailand and India Conclusions 1

2 Part I Challenges faced by small scale farmers Access to technical knowledge Lack of enabling government policies and programs Access to credit and insurance Compliance to food safety standards (e.g. antibiotics) Minimizing disease related losses Meeting stringent market requirements, including certification Meeting environmental and ethical standards Meeting wildlife and biodiversity requirements It's all harder for small scale producers! 2

3 What are BMPs? Better Management Practices (BMPs) in the aquaculture context outline norms for responsible farming of aquatic animals BMPs are improved, science-based management practices, and implementation is generally voluntary BMPs are not a standard for certification Implementation of BMPs can help to achieve compliance with standards set by international agencies BMPs improve the quantity, safety and quality Animal health and welfare, food safety, environmental and socio-economic sustainability. Background Scientifically validated BMPs when applied properly by small scale farmers using the cluster/group approach can: Improve production and resource use efficiency Reduce costs of production Improve environmental performance Improve animal health and incidence of crop failure Maximize economic returns Support compliance to food safety and market requirements Investing in BMPs could help small scale farmers to maximize returns and sustain their livelihoods in the long run 3

4 How to promote BMP adoption? Promoting the adoption of BMPs by small scale farmers is not easy or straight forward Using appropriate extension methodologies to bring about change in the attitude of farmers A critical aspect of the introduction of BMPs has been the role of farmer groups/clusters Cluster & Cluster Management Group of inter-dependent aquaculture ponds situated in a specified geographical locality Collective planning, decision making and implementation of crop activities by a group of farmers in a cluster Participatory approach in order to accomplish their common goals (e.g. reduce risks, maximize returns, improve market access) 4

5 Advantages Collective action Regular information and experience sharing among farmers Common infrastructure development, deepening canals, power supply etc Cooperation in selecting/testing and buying seeds Simultaneous stocking and coordinated water management, thus avoiding continuous stocking and harvest due to disease Reduced contamination when there is disease outbreak due to information sharing Increased market power Economies of scale in purchasing inputs and selling product Increased cooperation with input suppliers, buyers and processors Access to policy makers Shrimp BMP programs Work done so far in the region India (MPEDA/NACA/NaCSA) Indonesia (ADB ETESP/NACA/MMAF) Thailand (DOF/WWF/NACA) Vietnam (SUDA/MARD/NACA) Catfish BMP programs Vietnam (AusAid/NACA/DPI Victoria/RIA2/CTU) ASEAN Foundation project supported work on 5 commodities Snakeheads-Cambodia Groupers-Indonesia Seaweeds-Philippines Tilapia-Thailand Shrimp-Vietnam 5

6 Shrimp BMP program in India Population based risk factor study completed 2001 Development of BMPs Demonstrations (farm level, village level and creek level) completed Validation of key BMPs completed BMP adoption through cluster/farmer group approach widely promoted Expansion of the program to other states in India Institutionalization of the program 2007 Establishment of NaCSA (National centre for sustainable aquaculture) to promote BMP adoption and farmer group formation Strengthening of NaCSA activities ( ) 2001 Survey 365 ponds Risk factors Progress to 2010 BMPs Farm level 5 farmers 10 ponds 7 Ha 4 tonnes Village level extension 1 Village 1 Aquaclub 58 farmers 108 ponds 58 Ha 22 tonnes Contract hatchery Seed Production Creek level extension 6 Villages 7 Aquaclubs 130 farmers 254 ponds 173 Ha 40 tonnes Expansion to other states AP 2005 GU KA 2005 State level expansion 3 States 19 Aquaclubs 736 farmers 1187 ponds 663 Ha 672 tonnes OR Expansion to 5 states AP 2006 TN KA GU States 28 Aquaclubs 730 farmers 1370 ponds 813 Ha 870 t Establishment of NaCSA Coastal states 153 Societies 3326 farmers 4219 ha 2180 t Expansion of NaCSA Coastal states 250 Societies 6443 farmers 7324 ha 4081 t Market Linkage established Coastal states 438 Societies farmers ha 6

7 Part II Market Requirements Safe product Affordable Reliable supply No pollution No workers exploitation No impact on biodiversity Fish welfare 7

8 Certification Certification: Procedure by which a Certification body gives written or equivalent assurance that a product, process or service conforms to specified requirements/standards Standards Mandatory (national) Mandatory (International-Codex, OIE) Voluntary Certification Body Accreditation body Market Access & Certification Comply to buyer and consumer needs & requirements Image / Reputation Address environmental & social sustainability Traceability Certification schemes Build business relationship! 8

9 Aquaculture Certification Proliferation of schemes (private, governmental, and producer originated schemes) Costs of certification will be additional cost for the farmer (except the government scheme) Often low or no market incentives at present Lack of supports and capacity buildings. Complex reporting and record keeping requirements Certification Schemes 1) Governmental schemes Thai Quality Shrimp - Thailand Codes of Conduct (CoC) and Good Aquaculture Practice (GAP) Upgraded to GAP (TAS ) and strengthen Environmental standards and mechanism (DoF and ACFS) through ISO65 and FAO Technical Guidelines. SSoQ Bangladesh Certification Standards for shrimp operators (hatcheries, farmers, depots or transporters, processors) Voluntary process certification China PR ChinaGAP - pilot stage for Aquaculture Green Food Standard Accredited Fish Farm Scheme Hong Kong SAR Voluntary governmental scheme developed by the Agriculture, Fisheries and Conservation Department (AFCD). 22 marine fish certified. 9

10 Certification Schemes 2) Private schemes GAA (ACC) GAA :standard setting, ACC: certifier US: Wal-Mart & Darden, UK: Lyons Seafood Ltd Shrimp, Catfish, Tilapia Hatchery, Farm, Processing plant, Feed mills GlobalGAP A pre-farm-gate-standard Shrimp, Salmon, Pangasius, Tilapia Global GAP launches Compound Feed Manufacturing Standard 2.0 (March 2010) Aquaculture Dialogues Coordinated by WWF Salmon, Shrimp, Tilapia, Mollusks, Trout, Barramundi, Pangasius Aquaculture Stewardship Council (ASC) Certification Schemes 3) Organic Euro-leaf Launched 1 July 2010 Organic aquaculture production of fish, shellfish and seaweed Naturland (Germany) Certifying organic aquaculture across the globe, from Asia to Europe to Latin America. Species-specific standards (e.g. salmon, Trout, Tilapia, Shrimp) Soil Association (UK) The soil association has prepared general standards for aquaculture, mainly focused on salmon trout and shrimp farming Thailand Voluntary governmental scheme, Organic Aquaculture Farm & Product Certificaiton Center (OAPC) 10+ farms for shrimp, fish 10

11 And More... Certification Schemes... Challenges for Asian Aquaculture MANY... Challenges particularly tough for small-scale aquaculture Based on successful cases in India, Thailand & other countries in the region We believe adoption of BMPs, Cluster farming and Cluster Farm Certification as way forward For example it can: Improve market access & price of product Improve efficiency of production Improve access to services 11

12 C l u s t e r / g r o u p c e r t i f i c a t i o n Achieve economy of scale Reduce cost & efforts of certification Enable small scale farmer to participate Example from Thailand Key Players in the project Shrimp Farmer cooperative Department of Fisheries, Thailand NACA (project implementer) Local Processor (Sea Fresh) European buyer (Aquastar) European retailer (Marks and Spencer) 12

13 Example from Thailand Shrimp farming cooperative Registered to Ministry of Agriculture and Cooperatives Monthly committee meeting, General assembly twice a year, voted president and committee Financial Audit by the government Example from Thailand Cooperative complied with Thai Good Aquaculture Practice (GAP) standards + industry requirements (M&S) Established and operated an Internal Control System (ICS) Record keeping for internal and external audit Product sold and exported to EU (better price than a central market) Product not certified, but complied to buyer requirements 13

14 Example from India Indian shrimp clusters Coordinated by National Centres for Sustainable Aquaculture (NaCSA) BMPs adopted through cluster management approach Internal control system (ICS) operational in selected clusters Market links established with SYSCO (US) 2 clusters/groups certified by Naturaland 14

15 Cluster certification the next steps Preparing clusters to participate in future certification programs of their choice Connecting clusters to markets to receive a better price for quality product (non-certified) Better market access (and better price?) for cluster certified products Need to partner with processors/buyers NACA Experience NACA experience is that one way for small scale farmers to remain competitive, sustainable and link to markets is adoption of BMPs through cluster/group management approach Reduced production costs is a major advantage of BMPs and provides incentive for farmer adoption But changing attitudes takes time!!! Shrimp work in India has been running for 10 years A long term commitment is required 15

16 Conclusion Small-scale farmers make up the majority of Asian aquaculture farmers Participation in certification programs may be important for better market access in future (long way to go) Cluster approach and BMPs are one way forward, & to prepare farmers However, substantial investment and policy support for the small-scale sector will be required Thank you Visit for further details 16