Transcript Private sector support for ecosystem approaches to

Michael Phillips
WorldFish Center
partnership . excellence . growth
Outline
 Ecosystem approach
 Mariculture and ecosystems
 Some experiences
 Moving forward
What is an ecosystem approach?
"An ecosystem approach to fisheries strives to balance diverse societal
objectives, by taking into account the knowledge and uncertainties about
biotic, abiotic and human components of ecosystems and their
interactions and applying an integrated approach to fisheries within
ecologically meaningful boundaries.“ FAO (2003)
What does it mean?
 Minimizing impacts on
ecosystems
 Maintaining ecosystem services
 Creating social and economic
values
 Institutions and policies that
support better management
 Thinking about ecosystem scales
 Partnerships
Asian aquaculture trends
China
Rest-A/P
TOTAL
China %
Rest-A/P
50 000
80.0
45 000
70.0
40 000
60.0
50.0
30 000
25 000
40.0
20 000
30.0
15 000
20.0
10 000
10.0
5 000
0
0.0
1990
1991
1992
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
modified from DeSilva et al (2011)
Percent Contribution
Production (x 1000 t)
35 000
Groupers, wrasse, snappers
250000
World (t)
Asia (t)
% Aquaculture
% Asia
Asia Aquaculture
80
70
60
150000
50
40
100000
30
20
50000
10
0
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
modified from DeSilva et al (2011)
Percent
Production (t)
200000
90
Ecosystem interactions in mariculture
 Coastal habitats and wildlife
 Water quality and sediments
 Feed sourcing and management
 Energy and resources
 Fish seed supply
 Aquatic animal diseases
 Food safety and quality
 Social and economic values
 Standards – focus
Taking a life cycle approach
Wild Caught Fish
(T/yr)
CO2
(T/yr)
Fuel
(l/yr)
Energy
Production
(GJ/yr)
CO2
(T/yr)
Nitrogen
(T/yr)
Phosphorous
(T/yr)
modified from Hall et al (2011)
Fuel
(l/yr)
Fish
Meal/Oil
Production
(T/yr)
Fish Feed
Production
(T/yr)
Fish
Production
(T/yr)
Crop Meal
(l/yr)
Fertilizer
Production
(T/yr)
Organic Material
(T/yr)
Inorganic Material
(T/yr)
Water
(m3)
Land
(Ha)
Production process
Farmed Fish
(T/yr)
Environmental resource
Environmental emission
Resource
Old approach
New approach
“Low value” fish, high
wastage, impacts on
biodiversity and water
/sediment quality
Sustainably sourced ingredients,
emphasis on efficiency leading to
better profit/net fish contribution
Seed
Wild capture of seed, by
catch, biodiversity impacts,
disease risks
Hatchery reared, closed cycle,
improved seed quality, disease
control
Habitats
Limited awareness of
habitats, risks of damage to
corals, seagrass, inshore
crowding
Carrying capacity respected,
downstream habitat damage risks,
better integrated
Energy
Energy costs, resource use
inefficiencies
Efficient energy use, alternative
energy sources, reduced GHG
footprint, climate finance
Food safety
Use of chemicals, limited
awareness and responsibility
for worker and consumer
health
Food safety awareness, consumer and
producer chains that connect
consumers with producers and create
value for all
Growth projections require change
Production (Million Tonnes)
90
80
Actual Production
70
Faster aquaculture
expansion
Most likely (baseline)
60
50
40
30
20
10
1997
2002
2007
2012
Year
modified from Hall et al (2011)
2017
Challenges of improvement




Weak market incentives for change
Fragmented value chains and lack of incentives
Institutional capacity and policy orientation
Large number of small-scale farmers
 Small-scale farmers represent a special challenge:
 Social and economic importance (70-80%)
 Marginalization – from institutions, services
 Vulnerabilities
 In other major traded products, such as shrimp, a
buyer shift away from small-scale farmers, leading to
further marginalisation and vulnerability
Drivers of improvements in practice
 Government legislation/policy
 Incentives for buyers and consumers
 Incentives for value chain actors
 Incentives for farmers
 In absence of weak market/ drivers,
production improvement can be a
positive driver for change
 Two lessons of farm-level best practice
adoption in coastal ponds in Asia
Better practices – examples from
coastal ponds in India and Indonesia
Principles to practice











Pond preparation
Sourcing Good quality seed
Water quality management
Feed management
Biosecurity
Health management
Food safety
Traceability
Better Harvest and post-harvest Practices
Environmental awareness
Farmer groups and organizational development
Better management delivers reduced risk and
improved outcomes: an example from India
Reduced Disease Risks
Year
BMP
ponds
Non
BMP
Improved profitability
+
2003
82%
89%
+ 7%
2004
37%
52%
+20%
2005
15%
42%
+27%
2006
17%
44%
+27%
Better management delivers reduced risk and
improved outcomes: an example from Aceh
Economics (US$ per ha)
Gross Revenue
increased by 14%
Profit Doubled
over the year
Note: US$ 1 = IDR 9500
16
Compliance brings profitable outcomes
Pond
Grades
Ponds (%)
Mass
Mortality
(% ponds)
Yield
(Kg/ha)
Expenditure
(US$/Ha)
Profit
(US$/Ha)
BCR
A
16
14
159
291
271
1.93
B
59
29
103
195
171
1.88
C
25
31
100
153
190
2.24
Profitable small-scale ponds in coastal Aceh
2009
2008
2007
• 34%
• 55%
• 72%
18
PostTsunami
Rehabilit
ation
47
Progress in Aceh
2005-06
2007
2008
2009
2010
Rehabilitation
of Damaged
farms and
restart of
farming
Village level
Cluster level
extension
4 ALSC
4 ALSC
3 districts
3 Districts
84 Villages
100 Villages
1150 farmers
2656 farmers
1027 Ha
2250 Ha
105 ton shrimp
250 tonnes
Shrimp
11 villages
47 farmers
22 Ha
3 tonnes
4 Clusters
34 Village
260 farmers
184 Ha
22 tonnes
35 ton fish
100 ton fish
Next steps - challenges
 Scaling
out
 Value chain cooperation
 Buyers, better markets
 Domestic, Japan, Europe, US
 Finance
 Services
 Certification, but not a priority,
with focus on simple but
profitable management
improvements as “first step of
the ladder”
Investments in services generate value
Value created in Aceh, Indonesia
US$100/
farmer
US$2.5 million farm gate
value
 2,600 households
increased income of
~US$1000/household
Community and
environmental benefits
But, some investments may not yield short-term benefits,
it takes time to organize small farmers, and a long lead in
time is a disincentive for private investors
Improving aquaculture - investment model
Farmer organizations
and services
“organizational glue”
Market
connections
Working
capital
Productivity
improvements
and
efficiencies
Infrastructure
investment
Public policy and
institutions
Lessons for live reef fish trade/culture
farmer
empowerment
farm
improvements
chain cooperation
 Integrated approach
 Business case
 Plan for scale that delivers





impact and efficiencies
Time required
Sustainable services
Private and public partners
with complementary
skills/investments
Avoid short-term “project”
approach
Knowledge sharing across
partners, investors, value
chains
Conclusions
 Ground ecosystem approach in
practical management
improvements
 Opportunities for efficiencies
provide opportunities for profit
 Aquaculture improvement projects
can deliver social, economic and
environmental benefits
 Impacts requires scale (not pilots).
 Inclusive approach is needed for
small farmers (and fishers)
 Value chain partnerships are
important for scaling up
Conclusions
 Private sector support essential,




with business case
Pilots can be conducted to validate
approaches (but must be core
business case).
Farmer organization, provision of
farmer oriented services
Private investment funds are also
essential for scaling up
We can be more creative with
business models and finance
Thankyou