U.S. Aquaculture Regulations: A Comparison with Seafood Certification Schemes. Gary Fornshell

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1 U.S. Aquaculture Regulations: A Comparison with Seafood Certification Schemes Gary Fornshell

2 Certification Procedure by which certification body or entity gives written or equivalent assurance that a product, process or service conforms to specified requirements. (FAO, 2011)

3 Key Elements of a Typical Certification Scheme A standard setting organization Defined set of objectives Set of certification standards Certification process

4 Certification Schemes Are becoming significant features of international seafood trade & marketing Have emerged in areas where government regulations are perceived as weak Response to concerns related to quality, safety, environmental impacts, social responsibility, traceability, transparency of production processes

5 What s Driving the Demand? Large-scale retailers and food service Corporate social responsibility Reduce risk and liability Tools to differentiate retailers & their products Tap into new markets Pressure from environmental NGOs insurance against boycotts and bad press from environmental groups and in the media.. (FAO, 2011)

6 Certification is a Business Once in operation, they want to remain viable Requires enough producers to share costs and support auditors If certification leads to added costs in the supply chain and a higher retail price that consumers aren t willing to pay they will not survive for long (Boyd and McNevin, 2012)

7 Three Areas of Comparison with U.S. Regulations Food safety Environmental sustainability Social responsibility

8 U.S. Food and Drug Administration has the primary federal responsibility for the safety of seafood products in the U.S Federal Food, Drug and Cosmetic Act Public Health Service Act

9 Seafood Inspection H hazard A analysis and C critical C control P point

10 National Seafood Inspection Program Department of Commerce s NOAA incorporates FDA s HACCP regulations into their program Certifies processors that meet federal standards and rates products with grades based on quality

11 U.S. Food and Drug Administration Center for Veterinary Medicine Regulate aquaculture drugs Target Animal Safety Effectiveness Human Food Safety (for food fish) Chemistry, Manufacturing, and Controls Environmental Impact Only 8 drugs approved for aquaculture Also regulate animal feed ingredients

12 Centers for Disease Control and Prevention investigates foodborne illnesses; provides recommendations for prevention & treatment U.S. Department of Agriculture regulates farm raised catfish U.S. Environmental Protection Agency collaborates with FDA to set standards for acceptable levels of contaminants in recreational fish & works with FDA to manage risk in commercial seafood products State Departments of Health

13 Clean Water Act National Pollutant Discharge Elimination System Permit Endangered Species Act States DEQ

14

15 State and Local Permits Aquaculture permits & licenses Approved aquaculture species Water rights

16 Social Responsibility U.S. Department of Labor Occupation Safety and Health Act Fair Labor Standards Act Worker Protection Standard Equal Employment Opportunity Commission State Labor Departments

17 Governments enforce regulations with civil and/or criminal penalties for violations Standards Government Food Safety Environmental Sustainability Social Responsibility

18 In the U.S., regulations on food safety, the environment and social responsibility are embedded in the fabric of our society

19 Seafood sustainability certification is like watching a football game without rules and no referees. Herman Wisse, Global Sustainable Seafood Initiative

20 Which Standard of Numerous Standards do you choose? Process standards how the seafood is grown/captured Product standards attributes of the product Organic standards Social standards Animal welfare standards Fair trade standards

21 Consumer Behavior: Purchasing Sustainable Seafood 36% 22% 21% 15% 7% don't know/don't think about it sometimes look for & purchase more concerned with price - just purchase "on sale" regularly look for & purchase rarely or never purchase

22 When deciding what fresh seafood items to purchase from the supermarket or other store, which of the following is most important to you? SeaFood Business SeafoodSource.com food safety price specific type of seafood health or nutrition family preferences enviro friendly COOL/area harvested specific use receipe convenience

23 Downsides Cost producers bear a disproportionate share of the costs compared to the retail end Duplication to current regulations in methods of compliance and verification No standard standard Lack of consensus on key definitions i.e., sustainability Proliferation of certification schemes causes confusion for many stakeholders voluntary certification schemes are no substitute for good public management. (FAO, 2011)

24 Other Considerations Lack of evidence to clearly demonstrate that use of better practices and compliance with standards results in greater efficiency leading to greater profitability whether profit-maximizing private sector firms or NGOs are the best agents for incentivizing better food safety management and sustainability in fisheries and aquaculture also requires further debate. (FAO, 2011)

25 Considerations for U.S. Producers Regulations are better than certification Civil and/or criminal penalties Greater liability Most certification schemes are weak substitutes, few focus on food safety Costs of certification, which can be considerable, plus duplication with regulations Generally there are no price premiums for producers for certified products However, seafood buyers may require certification, especially for processed value-added products for brands or private labels Equivalency with imported products?

26 Summary Certification is market driven Non-equivalence and weak enforcement Most of the cost borne by producers, generally without price premium benefit U.S. regulations set a higher bar for food safety, environmental sustainability and social responsibility

27 Questions

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