INDUSTRY ROADMAP
PROCESSED FISHERIES
PRODUCTS
The Philippines ranks 12th among top world
fish-producing countries.
In 2013, fishery industry’s contribution to
national GDP was 1.9%
WEF Competitiveness Report 2013-2014,
ranked the Philippines in 59th place among
148 countries.
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Aquaculture is the largest sub-sector
In 2013, aquaculture contributed 42.46% of
fishery output in volume
Municipal fishery followed with 30.32%
Commercial fisheries contributed with
27.22%
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Fishery industry suffers from “inadequate
quality fisheries infrastructure and cold
chain” facilities, which limits its
competitiveness in the region.
Domestic cold chain (warehousing and
specialized storage facilities) is among the
most important fisheries services but present
provision is unsatisfactory and needs
improvement.
Constraints such as internal transportlogistics, import-export clearance,
certification, permit processes, transparency
and non-tariff measures, still exist.
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In 2013, fishery production reached MT 4,7
million against a production of MT 4,9 Million
in 2012 (-3.1%).
Contribution to food security of Small Pelagic
Fishes (SPF) is positive, but dominant
species stocks (Scads, Sardines and
Anchovies) are declining, as the Philippines
have exceeded the Maximum Sustainable
Yield (MSY).
The MSY of capture fishery production of
SPF is estimated at 550,000 MT per year.
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The majority of the Philippine fish processing
plants meet international standards in terms
of product quality, styles of pack and
packaging.
Value-added products in the form of fillets,
locally comminuted or minced products, such
as fish balls, fish sausages, squid balls, are
growing in demand
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The export-oriented processing plants have
improved their processing practices,
equipment, hygiene and sanitation.
However, their present provision needs
improvement. The problem is critical to
exporters of frozen fish who need adequate
freezing and warehousing and specialized
storage facilities to maintain the high quality
of their exported products.
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Overall, domestic logistics services in the
fisheries supply chain are considered as
inadequate in terms of expertise, capacity,
and overall service quality.
Release of imported perishable goods at
customs is delayed by 33% in terms of time
between the arrival of goods and storage,
due to disputes in classification and
valuation.
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Certification and permit facilities are
available at some major fishing ports, but
remains the need for putting up laboratories
in some regional offices of BFAR.
A problem related to Non-Tariff Measures
(NTM) in the Philippines is the inability of
exporters to meet international food safety
standards for fisheries products due to high
costs of compliance.
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Additional investment in the construction and
proper maintenance of port quality
infrastructure and cold chain are considered
as highly necessary by the fishery industry.
Solutions to address these problems are
challenging and are currently being
addressed by the competent authorities,
such as DTI-BOI, DA, BFAR, PFDA, DOST
and LGUs.
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Weaknesses of the Fishery Industry can
be classified into industrial, socioeconomic, political and institutional.
Industrial Weaknesses
Low fish production
Underutilization of fisheries resources
Over-exploitation of some fishing grounds
Proliferation of illegal fishing
Lack of ice plants and cold storage facilities
Lack of effective organizational and extension
machinery
Poor delivery and dissemination of technological
packages
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Socio-economic Weaknesses
Inequities in access to resources, opportunities
and sources
Political Weaknesses
Unequal, inadequate and poor delivery of
government services
Lack of intervention of local officials
especially during site selection, endorsement
and implementation of a fishery project
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Institutional Weaknesses
Poor accessibility to institutional support e.g.
technical, extension, information and financial
support.
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INDUSTRY ROADMAP
Processed Fishery
Products
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Under Philippine Development Plan
2011-2016, BOI has been mandated to
partner with the private sector in
implementing activities to develop industries
including in the formulation and
implementation of sectoral roadmaps.
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The Processed Fishery Products Roadmap
engages multi-stakeholder participation, and
incorporates a process whereby
Government, the private sector, and fishers,
all work together to specify and implement
agreed improvements in how the fishery is
managed.
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The Industry Roadmap for Processed
Fishery Products will cover the following
products
a. Bivalve
b. Sea Urchin
c. Squid
Fishery Value Chain Analysis
Value chains are concerned with what the market
will pay for a product or service offered for sale.
A fishery value chain describes a model of how
fishery businesses receive raw materials as input
(captures and culture fisheries), add value to the raw
materials through various processes, and sell
finished products to customers.
Value chains of pelagic fish in most Asian
developing countries are not developed to meet
international market requirements and limited value
addition.
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Importers
Processors
Fishermen
Retailers
Retail
Chain
Export
Types of Fishery Value Chains
Fishermen
Export
Processors
Wholesaler
Fishermen
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Processors
Export
Retailers
Export
Retail
Chain
Importers
Fishermen
Export
Processors
Wholesaler
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Export
Retailers
Importers
The value chain in the Philippine fishery is composed by a
combination of governance structures.
Market-based governance based more on trust and mutual
understanding than on formal business practices.
Balanced governance involves Fishermen’s Organizations
(FOs) which coordinate with supermarkets on behalf of their
members to market their fish products
Directed governance is prominent in the domestic marketing
channel involving the Community Fishery Centres (CFC) and in
the exports marketing channel
Hierarchical governance focuses on the institutional
arrangements (agreements, rules, rights, laws, norms, roles
and procedures)
In the Philippine fishery value chain, vertical linkages from
primary producers (fishermen/aquaculture farmers) via
wholesaler to processor, indicating that wholesalers play
an important role in the marketing channel.
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PROCESSED FISHERY PRODUCTS
SWOT ANALYSIS
Strengths (1)
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Extensive fishery production capability
Extensive coastline. Fisheries areas are located along a rich and varied
coastline
Proximity to regional markets with high demand
Significant percentage of commercial, municipal fisheries and aquaculture
output
Global image and expectations: aquaculture is widely seen as the main future
source of seafood security, as long as it can continue to develop sustainably
Diversity of commercial species, being fished at sustainable levels
Underexploited stock of pelagic species
Significantly high yields and good profitability in some sectors
Stronger linkages with the international markets
Good international reputation of some Philippine processing companies, that are
increasingly providing high quality, certified and traceable products to the
national and international seafood markets
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PROCESSED FISHERY PRODUCTS
SWOT ANALYSIS
Strengths (2)
• The processing companies are technically innovative, and there is further
capacity for the sector to modernise and consolidate through the use of modern
technology, leveraging significant extension work
• High awareness levels on price trends and customer needs
• Improved post-harvesting technologies available to most fishers and processors
• Gradual reduction of middlemen in the procurement system
• Gradual reduction of wastage due to better road/rail and refrigeration
infrastructure
• Widespread organized fish retailing, demanding higher quality produce
• Strong entrepreneurship and self-reliance is inherent in coastline communities
• Experienced, flexible and adaptable workforce in fishing, with young entrants
starting come through in some areas a regular basis
• Aquaculture has technically innovative, well-trained staff
• Continuity of quality, specification and price of supply of aquaculture production
• Consolidated ability to plan predictable production
• Good profitability and increasing productivity in some aquaculture sector
• Increasing capacity for capital investment / growth in parts of the fishing and
aquaculture sectors
• Willingness to consider diversification within the fishing sector
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PROCESSED FISHERY PRODUCTS
SWOT ANALYSIS
Weaknesses (1)
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Outdated harvesting technologies
Inadequate information and market ignorance on prices, trends and customer
needs
Inadequate post-harvesting facilities (ice, cold storage and cooler wagons)
Traditional, agent-driven, inefficient procurement system
Extremely poor transportation (roads, harbours, auction halls, market places
and logistics)
Infrastructure (lack of ice production, very limited cold storage facilities)
High degree of wastage (poor handling and grading)
Produce inconsistent inequality
Outdated, inadequate distribution of infrastructure
Limited organized fresh produce retailing
High degree of wastage
MSY management made difficult because of mixed fisheries
Exports constrained by inadequate cold storage infrastructure and high costs
Economic difficulties are being faced by some parts of the fleet
The Philippines have an aging fleet, with fuel inefficiencies
Limitations on aquaculture sites
Economic challenges for the aquaculture sector, therefore difficulty to obtain
funding including working capital
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PROCESSED FISHERY PRODUCTS
SWOT ANALYSIS
Weaknesses (2)
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Perception of poor support, understanding by some public sector policy and
regulatory bodies with respect to aquaculture
Aquaculture is vulnerable to health / disease / water quality challenges
Some fisheries areas face a decline of traditional fishing industries and skills
retention, and residents tending to out-migrate for work
Fisheries areas are in general quite distant from markets and costs are high
The processing sector continues to include a small number of large multi-unit
businesses, and a larger number of small, single unit businesses
The supply chain and transport logistics can be difficult for some parts of the
processing sector, and transport costs can be significant
High costs in processing, especially energy
The processing sector is dependent on affordable and (locally / regionally)
available raw materials
Financial weaknesses include high cash flows, low financial literacy levels, low
savings culture, large operations outside the formal financial systems, weak
financial functions, heavily dependence on informal (unreliable) financial
sources, poor business management skills, weak community organization with
high levels of political interventions, vertical power imbalances (governance), low
yields, production scattered over many small-scale fishermen, farms
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PROCESSED FISHERY PRODUCTS
SWOT ANALYSIS
Opportunities
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Growing demand / need for seafood in Europe and other key markets such as China, India
and Russia, which can take production from Philippine fisheries and aquaculture.
The vision for Philippine fisheries is that it can transition into a sector that can sustainably
supply the market, making use of improved management through reform and other
measures, based upon good science, good regulations and upon the inherent capacity of
the marine ecosystem to recover.
Innovation and support can assist that transition, including technical, cost-reduction, valueadding and supply chain efficiency developments.
Diversification opportunities within the fisheries industries are seen as important. A priority
for aquaculture development in the Philippines relates to new production opportunities and
technologies, especially for more exposed sites in the marine environment. This requires
coordinated support from regulatory bodies.
As working capital is a serious issue for SME aquaculture business (compared with
fisheries), the prospect of support via financial institutions would help unblock this constraint
is an important opportunity.
Co-location with or diversification into other marine industries is a potential road forward for
the Philippine aquaculture industry.
High quality research can help unblock constraints for Philippine aquaculture and in the
fisheries sector as a whole.
Fisheries areas will benefit from stability, profitability and growth in the commercial and
municipal fisheries and in aquaculture sectors.
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PROCESSED FISHERY PRODUCTS
SWOT ANALYSIS
Threats (1)
• Fisheries areas, because of their very nature, are subject to the threats that
apply to the fisheries and aquaculture sectors
• Fisheries areas are geographically widespread and some of them are
relatively isolated: increasing costs for transport would be a threat
• Processing is also challenged by threats relevant to Philippine fisheries and
aquaculture, but in addition is subject to additional external threats such as
cheaper imports of processed seafood.
• Political will to develop exports
• Emergence of new competitors
• More stringent requirements for product quality
• Depletion of stocks
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PROCESSED FISHERY PRODUCTS
SWOT ANALYSIS
Threats (2)
• Costs could continue to increase faster than prices increase, leading to
decreased profitability in the commercial and municipal fisheries sector – and
equally applicable to aquaculture
• MSY targets and discard bans could prove to be overly costly for parts of the
Philippine fisheries, affecting profitability and therefore economic sustainability
• On medium and long term, competition for space in the marine environment and
climate change effects could impair fishing opportunities for Philippines’
vessels.
• The economic climate in market nations could reduce sales prices for Philippine
fisheries, aquaculture and processed products
• Beyond cost increases and price declines, the greatest immediate threat to all
parts of Philippine aquaculture is from diseases, parasites, invasive non-native
species, and human health issues such as norovirus.
• Growth in Philippine aquaculture production is threatened by: a) lack of technical
innovations allowing new profitable business opportunities to be developed /
exploited; b) lack of policy and regulatory support for understanding the sector
and its requirements, and c) lack of investment capacity, especially for loan
capital.
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Thank you!
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