International Institute of Fisheries Economics & Trade 2014 Conference, Brisbane 7-11 July 2014 Will third party certification provide benefits to Australian domestic fisheries? Sevaly Sen Research Officer Sydney Fish Market AUSTRALIAN DOMESTIC FISHERIES Figure 1 Catches of Australian wild caught fish (mt) 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 NSW DPI 2009–10 Total exports 2010–11 Total domestic 2011–12 Figure 2 Value of catches of Australian wild caught fish (‘000 AU$) 1,200,000 1,000,000 800,000 600,000 400,000 200,000 2009–10 Total exports FRDC 2010–11 Total domestic 2011–12 AUSTRALIAN DOMESTIC FISHERIES Figure 3 Population density of Australia 2013 (Australian Bureau of Statistics, 2013) FRDC • Many small scale inshore fisheries selling to domestic market • Competition and conflict with other coastal zone users • Consistent and robust management frameworks • Cost recovery NSW DPI NEED FOR THIRD PARTY CERTIFICATION IS AN ONGOING DISCOURSE • Currently 140 fisheries, 7 certified of which two are domestic market focused • Most fisheries assessed against ESD guidelines under federal Environment Protection and Biodiversity Conservation Act • Major retailers/wholesalers and seafood consumers not insisting on certification – internal assessments based on publicly available information • Western Australia is subsidising costs of certification for all fisheries • Interest in a national fisheries FRDC management standard BENEFITS OF THIRD PARTY CERTIFICATION Market Walmart U.S. and Sam’s Club require all fresh and frozen, farmed and wild seafood suppliers to become third-party certified as sustainable - Walmart website FRDC “The Australian arm of prawn farmer Charoen Pokphand Foods denounces slavery and promises audit of its supply chain” Greenpeace MARKET BENEFITS Access •Australians prefer to buy domestic •Certification not a condition of access Share •Domestic supplies are limited •Certification constrains supply Position •Most seafood consumers believe that local supplies are from sustainable sources •Origin is important •Wholesalers/retailers undertaking internal assessments FRDC REPUTATIONAL RISK (Corporate) Assurance • Company following international best practice Differentiation • From competitors that are not certified Preventative action • From attention of advocacy groups/negative media FRDC SOCIAL LICENCE FRDC CONCLUSIONS Benefits • Market benefits yet to be demonstrated • Maintenance of social licence provided the scheme regarded as legitimate by stakeholders. • May encourage continuous improvement in fisheries management Costs • Relatively low value fisheries so ability to pay costs of certification limited: external financial assistance/subsidies needed. Is this a sustainable strategy? • Some disconnect between those that pay for third party certification (the catching sector) and those that may benefit from these processes (the wholesalers and retailers). • Fisheries that want certification may “drain” limited research resources from other fisheries CONCLUSIONS Research is ongoing to explore alternative cost effective fisheries management assurance pathways suited to the Australian domestic fisheries context. This includes: Customising/tailoring existing third party schemes to include small scale data limited fisheries Exploring the feasibility of a national fisheries management standard Undertaking a national benchmarking exercise Thank you