Bellagio Workshop Synthesis Report TOWA RD A GLOBAL ACT ION NETWORK FOR T HE F ISH FOOD SYST EM C ONT ENT S Page 01 T H E D IA LO G U E P R O C E SS 4 02 KEY I SS U E S A N D E M E R G I N G AC T I O N A R EA S 6 03 KEY U N C E RTA I NT I E S A N D P OSS I B L E F UT U R E S 04 O U R 05 N E XT ST E PS 22 WO R KS H O P PA RT I C I PA NT S 23 P R E F E R R E D F UT U R E 8 20 Fishing for a Future is an initiative that brings stakeholders together. Its purpose is to support collective creation of time-bound solutions for the problems facing the fish food system. This report describes the outcome of the initiative’s first global workshop, which was held in October 2013 at The Rockefeller Foundation Bellagio Center on Lake Como, Italy. The workshop brought together 14 high-level representatives from the private sector, nongovernmental organizations and philanthropic communities. T H E O BJ EC T IV E S O F T H E WO R KS H O P: I Develop a set of global scenarios for the fish food system based on identified issues and global and sector-specific change drivers. II Identify a common set of aspirational goals for the fish food system by 2030. III Identify the synergies, gaps and new opportunities for collective action among actors in the fish food system. 3 T HE DIA LOGUE PROC ESS “I found that the workshop, by bringing together diverse stakeholders from the different sections of the fishery industry spectrum, was very enlightening and extremely stimulating. Our local and regional challenges no longer look as daunting when global industry thought leaders and actors offer insights and ideas that place these problems and opportunities into a more systemic and global perspective.” JA MES T. MOV IC K Director General, Pacific Islands Forum Fisheries Agency Solomon Islands 4 The dialogue in Bellagio unfolded along a four-step journey. KEY ISSUES A ND EMERGING ACT ION A REA S First, participants examined their top-of-mind issues and explored differences in the way they framed and prioritized them. KEY UNC ERTA INT IES A ND POSSIBLE F UT URES They then developed a shared view of possible futures for the fish food system by analyzing known change drivers and reflecting on the key uncertainties the system faces. OUR PREF ER RED F UT URE NEXT ST EPS Next, participants discussed the most desirable future for the system and pathways for achieving it. This was a pivotal step in the dialogue that cumulated in a shared vision and overarching goals for 2030. Finally, participants reflected on the next steps needed to overcome the current fragmentation of effort and realize the vision they had identified. 5 B E L LAG I O WO R K S H O P – SY NT H ES IS R E PO RT KEY ISSUES AND EMERGING ACT ION AREAS With background provided by a series of Fishing for a Future briefing papers, participants reflected on the key issues currently faced by the fish food system. The diversity of views concerning current high-priority challenges suggested a somewhat fragmented issue landscape. ISSUES P R IVAT E S EC T O R STA KE HO L D E RS PO L ICY STA KE HO L D E RS NGO/P H I LA NT H RO P IC S EC T O R Main focus: Improving sector performance Main focus: Improving sector governance in equitable ways Main focus: None – A diverse and interconnected issue set Example issues: Example issues: Example issues: Lack of innovation and innovative products Lack of capacity at the local community, national government and regional fishery management organization level Often poor fishery and ecosystem governance at local levels Poor mechanisms to hold bad-apple industry players accountable and to more effectively govern underperformers Lack of governance structure among NGOs, with lack of coordination between initiatives and conflicts due to competing agendas Lack of a shared understanding of the term sustainability among players in the value system and across geographies as a prerequisite for aligned action 6 Inadequate approaches to measure and manage the longterm value creation and equitable distribution of benefits between fish stock resource owners and other players along value chains Inadequate approaches and data for measuring and managing fish stock status across all key regions Inadequate data and data management; e.g., population data for fish stock assessments and market data, especially for small-scale market players Often limited multistakeholder engagements as a way to improve local governance systems, especially to secure the future of small-scale fisheries in developing countries (e.g., access to income and nutrition) I nsufficient efforts to improve waste management, traceability and transparency across the value system Four common action areas emerged. ACT ION A REAS 1 2 3 4 Improve the empirical analytical framework for describing the fish food system to provide new insights into performance and leverage points and to guide long-term objectives. Enhance approaches for defining and managing equitable value creation and distribution across geographies and actors along the entire value system. Enhance approaches for managing the environmental footprint and sustainability of the aquaculture sector. Build and develop capacity across stakeholder groups in the fish food system. This diversity of views and the areas of issue convergence provided the backdrop for developing a set of future scenarios. 7 B E L LAG I O WO R K S H O P – SY NT H ES IS R E PO RT KEY UNC ERTA INT IES A ND POSSIBLE F UT URES KEY U N C E RTA I NT I E S To develop a plausible set of scenarios, participants identified the key uncertainties they felt most strongly about. These fell into two categories – those external to the fish food system, and those within it. External to the fish food sector > The trajectory of economic growth and the openness of global markets: Will we see robust growth and growing openness of markets, or will the global economy stall and protectionism prevail? > Climate change impacts and other environmental pressures: Will climate change and environmental degradation fulfill our worst fears, or will we find ways to overcome these problems? “What might be the state of the fish food system by 2030?” Within the fish food sector > Our ability to address deficiencies in wild capture fisheries governance: Will we see increased overexploitation of fisheries, or will effective governance become the norm? > Sustainable aquaculture growth: Can aquaculture produce enough fish while at the same time satisfying sustainability and equity criteria? 8 P OSS I B L E F UT U R E S Located across our uncertainty dimensions, five story lines emerged: EDEN E M PT Y N ET S LOST O P P O RT U N IT Y The Decline of Fisheries and Rise of Aquaculture - F I S H F O R T H E G O DS - ECONOMIC GROW T H A ND OPENNESS OF MA R KET S LOST O P P O RT U N IT Y A Failure to Grow Aquaculture and Fisheries for All H OT WAT E R - EDEN + ECONOMIC GROW T H A ND OPENNESS OF MA R KET S C LIMAT E C HA NGE A ND E NV IRONME NTA L IMPAC T S The Decline of Aquaculture and Rise of Fisheries for the Wealthy C LIMAT E C HA NGE A ND E NV IRONME NTA L IMPAC T S + An Ideal Future E M PT Y N ET S + F ISH FOR T H E G O DS + + - - H OT WAT E R Failure of the Fish Food System - Wild capture Aquaculture 9 B E L LAG I O WO R K S H O P – SY NT H ES IS R E PO RT EDEN A N IDEA L F UT URE B O U N DA RY CO N D IT I O N S: > Strong economic growth with open markets > Benign climate change and environmental impacts on the fish food sector > Effective public and private governance of the wild capture fishery sector > High productivity and output by the aquaculture sector C LIMAT E C HA NGE A ND ENV IRONMENTA L IMPAC T S 10 Through effective governance, transfer of best practices and technology, and well-targeted investments, fish production has increased remarkably: Wild capture output has risen by 10 percent and the rate of growth in the aquaculture sector has returned to the levels seen in the 1990s. High demand for fish, driven by robust economic growth and the openness of markets, is met by sustainable supply. This outcome does not occur at the expense of the environment. To the contrary, educated consumers in all fish food markets value sustainability. Standards and certification play a major role. The sector follows a model that efficiently uses underutilized fish, and there is a significant reduction in postharvest loss. A global standard for sustainable + + ECONOMIC GROW T H A ND OPENNESS OF MA R KET S In 2030, the impacts of climate change have not materialized, and challenges such as exhausted marine ecosystems and unsustainable aquaculture have been addressed. In addition, the fish food system has delivered significant development impacts and food security benefits to vulnerable people. + aquaculture is employed worldwide by the vast majority of producers and is valued by retailers and consumers alike. Demand has been increasing at stable rates on the back of solid global growth and effective trade policies. Given the responsiveness of supply from both wild catch and aquaculture, prices are stable and value creation among the players in the system is equitably distributed. A collective action effort by key stakeholders across governments, NGOs and the private sector has produced governance mechanisms that not only value fish as a resource but also balance the needs of all across the value chain, enabling them to earn fair returns for their efforts. Given the win-win situation, all actors have an incentive to make the system operate sustainably. This leads to an efficient use of resources and stems the tide of resource degradation. are operating efficiently and earn fair returns on their capital. Impacts on the environment are well within the ability of ecosystems to absorb them. Everybody wins: Fish stocks are managed sustainably, and all actors in the system earn fair economic returns. Additionally, potential unemployment of small-scale fisheries has been avoided and turned into new and higherpaying jobs. Value in the system is equitably distributed, and food security needs are met. High growth in the fish food sector allows both small-scale fishers and farmers to participate in this positive development. Food and nutrition security is improved, and new job opportunities outside the sector can be found. Industrial-scale farmers and harvesters 11 B E L LAG I O WO R K S H O P – SY NT H ES IS R E PO RT EMPT Y NET S T HE DEC LINE OF F ISHERIES A ND RISE OF AQUAC ULT URE B O U N DA RY CO N D IT I O N S: > Strong economic growth with open markets > Severe climate change and environmental impacts on the fish food sector > Ineffective governance of the wild capture fishery sector globally > High productivity and output of the aquaculture sector C LIMAT E C HA NGE A ND ENV IRONMENTA L IMPAC T S ECONOMIC GROW T H A ND OPENNESS OF MA R KET S - 12 + - + In 2030, the confluence of severe climate change impacts, environmental degradation, stable demand for fish and a largely ineffective global governance system for wild capture fisheries has resulted in massive overexploitation and the collapse of many fish stocks. Infrastructure development, water abstraction and other environmental pressures have also severely compromised the productivity of the world’s freshwater fisheries, and highly compromised freshwater fisheries production. Because early signs for this were already visible by 2020, concerted efforts by governments, industry, capital markets and NGOs have driven the aquaculture sector to unprecedented heights. In 2020, a globally shared agenda to avoid mass malnutrition due to the possible collapse of wild fish supply was adopted. Governments, with immediate support from all other stakeholder groups, have reached global agreements on standards for aquaculture production and quality to minimize environmental impacts. NGOs and industry have been involved in these negotiations from the start to make them meaningful from their perspective. Simultaneously, governments – in a rare display of efficiency – were able to reduce to a minimum red tape and negotiation tactics. As with the Montreal Protocol, the world came together to act. increasingly to employment opportunities in other industry sectors. For all, however, it has become clear: The old days of a man providing for his family from the sea are gone. In 2030, 80 percent of global fish food supply comes from a well-managed and innovative aquaculture sector. Production efficiency is high and environmental impact is as low as possible. The concerted efforts of all stakeholders behind this success have given confidence to capital markets for continued capital flows into the sector. Aquaculture technology innovation labs and research networks around the globe drive the innovation agenda, yielding yet higher promises for efficiency gains. The world has produced the Empty Nets in the nick of time. Thanks to targeted transition programs, the impacts of very low catch levels for smallscale fisheries that fell below subsistence could be buffered for most. Many families could find employment in the growing aquaculture sector, and the younger generation transitions 13 B E L LAG I O WO R K S H O P – SY NT H ES IS R E PO RT F ISH FOR T HE GODS T HE DEC LINE OF AQUAC ULT URE A ND RISE OF F ISHERIES FOR T HE W EA LT HY B O U N DA RY CO N D IT I O N S: > Strong economic growth with open markets > evere climate change and S environmental impacts on the fish food sector > ffective governance of the E wild capture fishery sector globally > ow productivity and output L of the aquaculture sector C LIMAT E C HA NGE A ND ENV IRONMENTA L IMPAC T S ECONOMIC GROW T H A ND OPENNESS OF MA R KET S - 14 + - + In 2030, a remarkably effective governance system is guiding the wild capture fishery sector. Wild catch output has increased moderately, and effective fish stock assessment, monitoring and fishery management practices have been put in place, to maximize chances of sustaining fish stocks as a valuable resource for future generations. As a consequence of the effective governance systems, data availability and transparency in the system is very high, with illegal, unreported and unregulated fishing, or IUU, falling to an all-time low. Conversely, the aquaculture sector has been troubled by fragmentation and national interests. In particular in China, emerging Africa and Southeast Asia, the sector has in many places lost out to competing interests for land, water and employment from other industrial sectors where higher value creation is possible. Investments into the sector have stalled and environmental standards have failed to materialize. To feed the growing population with animal-source food, poultry has seen explosive growth, despite fairly regular bird flu scares. Simultaneously, investments into technologies that promise to grow meat in the Petri dish have seen increased government attention and private equity investments. This pronounced dichotomy in the sector occurs in an environment of high growth with open markets, but with severe climate and environmental impacts. Demand for highquality food is strong and trade practices are in place to enable fish exports and imports without significant barriers. At the same time, supply of wild-catch fish, while managed as carefully as possible, is suppressed by ocean acidification and compromised freshwater production as a result of infrastructure development, water abstraction and other environmental impacts. farmed fish, farmed poultry and increasingly factory meat. To mitigate price hikes, the wild capture sector sees an accelerated move of processing facilities to low-cost countries, to keep costs at the lowest possible level. Coastal communities and small-scale fisheries have an unexpected choice: serve local markets or benefit from the wild fish price premiums by exporting and in turn use proceeds to buy cheap chicken or other animal-source foods. This choice creates significant tension in coastal communities as traditional practices and habits clash with the obvious economic benefits that can be gained, at the expense of the traditional dietary preferences. The fish food market sees a bifurcation of its products: lower-price aquaculture products, requiring explicit labeling as farmed fish, and high-end wild capture fish as a luxury good with high price premiums. For wild capture fish, eco-labeling and environmental standards are very important to defend the price premium of wild fish’s natural nutrition against 15 B E L LAG I O WO R K S H O P – SY NT H ES IS R E PO RT LOST OPPORT UNIT Y A FA ILURE TO GROW AQUAC ULT URE A ND F ISHERIES FOR A LL B O U N DA RY CO N D IT I O N S: > Weak economic growth and protectionism > enign climate change and B environmental impacts on the fish food sector > I neffective governance of the wild capture fishery sector globally > ow productivity and output L of the aquaculture sector C LIMAT E C HA NGE A ND ENV IRONMENTA L IMPAC T S + - - 16 ECONOMIC GROW T H A ND OPENNESS OF MA R KET S In 2030, the global economy enters its fourth year of flat growth – the second flat growth cycle in the last decade. To battle unemployment and defend against extreme nationalistic forces, governments around the globe retreat to imposing trade barriers to protect their economies. Against all historical data and arguments from industry that openness of food markets is the best solution to feed the world, the mindset of food self-sufficiency becomes the prevailing narrative. In consequence, fish food trade hits a low point. Those in developing countries that still rely on catching their own fish as food are relatively better off; for consumers in richer countries, fish food choices are now very limited. These developments take place in a context where climate change and environmental impacts have been tackled quite effectively. Governance wins and effective collective action on managing fish food ecosystems and reducing environmental impacts of production around the globe have surprised even the greatest optimists. Two missed opportunities characterize the situation: First, as a consequence of low economic growth and governments scrambling to provide employment, low-cost manufacturing, industrial parks and low-cost urban developments have outcompeted the aquaculture sector in terms of resources and investments. Investor interest into aquaculture has fallen – the sector remains too fragmented, with profitability and growth rates low as a result of sharply reduced trade and local consumption by relatively poor consumers. Those few developing countries that have held on to making bets on aquaculture as a driver of economic growth have now fallen behind. Most of what is produced domestically is consumed domestically – this must be done at the lowest possible prices. As a result, environmental standards in aquaculture failed to materialize fully and the sector is seeing a resurgence of criticism by environmental NGOs. chains shorten and nationalize for low-value fish; higher-quality products enjoy price premiums in wealthy consumer markets, albeit with low volumes. Those that have access to wild fish resources benefit; others must switch to chicken as a substitute. Poor consumers who are unable to catch fish themselves or provide the means for substitution suffer the most, with malnutrition becoming even more widespread than before. Employment in the large-scale fish food sector reaches an all-time low, with catch and processing capacities being sharply reduced. Some argue that scrapping vessels and fleets that have far exceeded their economic lifetime is long overdue. Second, governance of wild catch fisheries, besides climate change adaptation, is largely ineffective. Fish catch volumes do not increase, despite the ecosystems providing the potential for doing so sustainably. IUU is far exceeding historical levels of 2013. Given low trade volumes, wild catch fish food supply 17 B E L LAG I O WO R K S H O P – SY NT H ES IS R E PO RT HOT WAT E R FA I LURE OF T HE F ISH FOOD SYST EM B O U N DA RY CO N D IT I O N S: > Weak economic growth and protectionism > evere climate change and S environmental impacts on the fish food sector > I neffective governance of the wild capture fishery sector globally ow productivity and output L of the aquaculture sector - - - 18 Continued fragmentation of the governance system persists, and well-meant efforts to reform the governance landscape are poorly aligned and ineffective. In particular, aquaculture fails to deliver on its promise of feeding 2 billion more consumers. Efforts to raise the standards of poor-performing producers to average levels have been unsuccessful, environmental costs surge, and bad apples in the wild catch sector and in aquaculture production are still not held sufficiently accountable. IUU is rampant, and equitable distribution of benefits along the value system is a crashed hope for the disadvantaged poor. ECONOMIC GROW T H A ND OPENNESS OF MA R KET S C LIMAT E C HA NGE A ND ENV IRONMENTA L IMPAC T S > By 2030, the technological and governance innovation needed to sustain production growth in both aquaculture and wild capture fisheries does not materialize. These internal deficiencies have been exacerbated by external trends. Climate change is hitting an ill-prepared sector. Together with strong protectionist tendencies as the result of national food security agendas and stalling global economic growth, the fish food system fails to provide food for all. Weak governance systems and poor consumers scrambling for food supply – thus not valuing eco-labels or standards – are resulting in the sector exploiting the last natural resources, causing massive environmental degradation. A downward spiral of poor system productivity and output, an eroding resource base, food insecurity for the poor, skyrocketing prices for fish for the rich, and failing economic returns for industrial-scale players result in malnutrition in developing countries depending on fish and bankruptcy of industrial players serving markets in the developed world. 19 B E L LAG I O WO R K S H O P – SY NT H ES IS R E PO RT OUR PREF ERRED F UT URE Capturing their vision in the phrase “Together, producing more and better,” participants concluded that coordinated and aligned collective action among stakeholders will be key. Without alignment, we will be unable to create a positive future in which we meet the world’s growing demand and need for fish in ways that are sustainable over the long term. “Often do the spirits of great events stride on before the events, and in today already walks tomorrow.” Friedrich Schiller (1759-1805) 20 Our goal: “Produce more fish to feed people while distributing the benefits of value creation more fairly and limiting the environmental footprint of the fish food system.” A V EHIC LE TO HELP MA KE T HIS HA PPEN Having identified a preferred future, participants were asked what might serve as an enabler to achieve it. After deliberating on this question, there emerged strong interest from all stakeholder groups in establishing a multistakeholder Fishing for a Future platform. Possible platform or governance functions identified include: Facilitating multistakeholder dialogue to develop a collective voice and mobilize collective action around shared targets at both global and regional levels. Supporting development of a shared and legitimized analytical base to stimulate and align action and track progress. Fostering thought leadership on key issues for the fish food system. Identifying gaps in current efforts to address systemic challenges and foster efforts to fill them. 21 B E L LAG I O WO R K S H O P – SY NT H ES IS R E PO RT NEXT ST EPS A guided, data-driven collective effort will require a secretariat to drive the analytical work and prepare and facilitate global and regional stakeholder engagements. I N T H E L I G HT O F T H I S CO N C LUS I O N, S EV E R A L N E XT ST E PS W E R E I D E NT I F I E D: F I R ST, strategies must be adopted that ensure much broader participation and stakeholder engagement in shaping the Fishing for a Future agenda than has been possible to date. Immediate next steps will include socializing and seeking feedback on the conclusions in this report and working to ensure that this initiative complements and extends current efforts. S ECO N D, an analytical framework to operationalize shared goals is needed. This framework must provide the following: 1) Quantitative targets that specify these goals. 2) Specific levers and pathways for how these goals can be achieved. 3) A monitoring and evaluation system for measuring and managing progress against goal achievement along these pathways. The starting points for an analytical base that can frame a global action agenda will be a preliminary estimate of how much fish the world will need to meet dietary needs in 2030 and an indicative overview for the pathways that could be employed. To this must be added an outline of how an M&E system might be constructed and operated. T H E S E I NT E R I M O UT P UT S must then be assessed and discussed among stakeholders at both global and regional levels to arrive at a shared long-term goal and fairly balance all stakeholder interests. F I NA L LY, there was agreement that continuing the global discussion together with cascading the Fishing for a Future dialogue into the main fishing and aquaculture regions had considerable value. In 2014 we will seek to prepare such a global discussion around developing a shared set of system goals for 2030 and M&E frameworks, as well as undertaking regional dialogues in the Pacific and Asia. 22 WORKSHOP PA RT IC IPA NT S F I S H I N G F UT U R E .O RG/ WO R K S H O P S2013 JIM CA NNON JA M E S T. M OV I C K CEO Sustainable Fisheries Partnership USA Director General Pacific Islands Forum Fisheries Agency Solomon Islands D R . JA SO N C LAY N G J O O S IA N G Senior Vice President, Markets World Wildlife Fund USA Vice - Chairman & Managing Director Pacific Andes Group China D R . C H R I ST O P H E R D E LGA D O KLA US N I E LS E N Strategy and Policy Adviser Agriculture and Environmental Services World Bank USA CEO Espersen Denmark D R . C R I ST I NA R U M BA IT I S D E L R I O P ET E R HA J I P I E R I S Chief Technical Sustainability and External Affairs Officer lglo Foods Group United Kingdom SA UT H UTAGA LU N G Director General Fisheries Product Processing and Marketing Indonesia A R N I MAT H I E S E N Assistant Director - General, Fisheries and Aquaculture FAO Italy L I SA A . M O NZÓN Program Officer, Marine Fisheries Packard Foundation USA Senior Associate Director The Rockefeller Foundation USA D R . MA RY T U R N I PS E E D Fellow Gordon and Betty Moore Foundation USA J OS E V I L LA LO N Corporate Sustainability Director Nutreco The Netherlands J O HÁ N H . W I L L IA M S Specialist Director Department for Fisheries and Aquaculture Ministry of Fisheries and Coastal Affairs Norway FAC ILITATORS D R . ST E P H E N J. HA L L A N D R EA S SC HA F F E R Director General WorldFish Malaysia Sustainability Director The Earth Observatory of Singapore Singapore 23 F I S H E R I E S A N D AQ UAC U LT U R E I N T H E 21ST C E NT U RY: A N I N IT IAT IV E F O R G LO BA L AC T I O N I N IT IAT IV E S EC R ETA R IAT: Dr. Stephen J. Hall WorldFish, Penang, Malaysia Email: s.hall@cgiar.org Andreas Schaffer The Earth Observatory of Singapore, Singapore Email: a.schaffer@ntu.edu.sg W W W. F I S H I N G F UT U R E .O R G 100% RECYCLED Paper made from recycled material