Market mechanisms for fisheries improvement Jim Cannon CEO, Sustainable Fisheries Partnership (SFP)...

Market mechanisms for fisheries improvement

Jim Cannon

CEO, Sustainable Fisheries Partnership (SFP)

Presenting to

RFE Salmon Meeting

Portland, Oregon

November 2007

Sustainable Fisheries Partnership

SFP status and partners

• Status: NGO founded 2006 (US 501c3 status)

• Funding: foundations, corporate partners

• Advise: McDonald's, Wal-Mart, Young's Seafood, Espersen and other buyers, suppliers, catchers, and farmers.

Sustainable Fisheries Partnership

SFP Mission and Purpose

• Mission: “to maintain healthy ocean and aquatic ecosystems, enhance fishing and fish-farming livelihoods and secure food supplies”

• Purpose: “improve access to information to guide responsible seafood sourcing, and enhance the ability of seafood companies and partners to improve fish-farming and capture fisheries”

Sustainable Fisheries Partnership

SFP ProgramsSustainable Fisheries Partnership

• Staff: 20, with expertise in fisheries management, fish farming and environmental protection

• Locations: US, EU, Australia, Indonesia, Mexico, Philippines, Russia, Chile, Argentina

• Programs:– Information provision: FishSource.org– Fishery Improvement Partnerships (FIPs)– Aquaculture Improvement Partnerships (AIPs)– Advice to major seafood buyers and suppliers

Presentation OverviewSustainable Fisheries Partnership

• Mechanisms for change

• Fisheries Improvement Partnerships (FIPs) overview

• Russian pollock FIP overview

• Key lessons learned

Mechanisms for ChangeSustainable Fisheries Partnership

Goal: improve the fishery: Change policies

1 Direct lobbying/engaging officials/politicians

2 Public awareness campaigns (range in tone, e.g., activist, academic, aquarium)

3 Lawsuits

4 Engage companies to get them to exert pressure (range in tone, from activist to e.g., SFP Fisheries Improvement Partnerships)

5 Consumer demand-based models – eco-labels, cards etc. Change private practices

1 Lawsuits

2 Engage companies to get them to demand change (range in tone, from activist to e.g., SFP Fisheries Improvement Partnerships)

3 Consumer demand-based models – eco-labels, cards etc.

Market MechanismsSustainable Fisheries Partnership

• Consumer-demand based e.g., eco-labels (MSC), seafood cards

• Engaging companies– Distinguish retailers from “consumer facing

brands” from suppliers from producers– Various “activist” approaches– SFP's Fisheries Improvement Partnerships

FIPs overviewSustainable Fisheries Partnership

• prepare fishery profile on FishSource• optional: carry out MSC pre-assessment

best way to determine what is needed for MSC label Initiates work with best long-term way to meet key

retailer/market demands

• if problems need to be fixed, partner with SFP to run a FIP

• agree on action plan to fix the problems, and identify annual improvement milestones

• deliver on improvement milestones• partner with SFP to report progress to retailers

Wal-Mart Initiative

• source only from MSC certified fisheries by 2009-11

Sustainable Fisheries Partnership

Russian pollockSustainable Fisheries Partnership

Western pollock resource

Gulf of Olyutorski

(East Kamchatka Fishing Zone)

2 – Karaginsk

3 – Petropavlovsk - Kommandor

Sea of Okhotsk pollock resource

(Sea of Okhotsk Fishing Zone)

4 – North Okhotsk

5 – West Kamchatka

6 – Kamchatka – Kuril

7 – East Sakhalin

Northern pollock resource

Cape Navarin

(Western Bering Sea Fishing Zone)

1 – West Bering Sea

Russian pollockSustainable Fisheries Partnership

Russian Pollock:Northern, Western and Okhotsk Resources

0

500

1000

1500

2000

2500

3000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Year

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0t

TAC Catch

Russian pollockSustainable Fisheries Partnership

• Catches down ~ 70% in last ten years• Three main resources: “Northern West Bering”

(Navarin), “Western West” (Olyutorski) and the Sea of Okhotsk

• Okhotsk: biomass down 70% from mid-90s levels• Northern: older official assessments showed biomass

had declined during the late 1990s / early 2000s by up to 50% from a low base. Recent assessments estimate the biomass has increased.

• Western: biomass very low. No direct fishery (by-catch quota only)

• Significant illegal fishing and smuggling reported• Drastic declines in Steller Sea Lion

Russian pollock timeline 1Sustainable Fisheries Partnership

• April 2006 – “SFP” chairs Brussels meeting– Wal-Mart, McDonald's, Unilever (Birdseye), Royal Greenland, FroSTA

– BAMR, Pacific Andes

– 4 recommendations: (1) form association to represent interests; (2) lobby for improvements; (3) verify legality; (4) seek MSC pre-assessment

• May 2006 – Russian companies met to discussion recommendations

• August 2006 – Pollock Catchers Association forms– to protect fish resources and their habitat, to recommend Russian

government and management on improving the fishery, etc.

Russian pollock timeline 2Sustainable Fisheries Partnership

• August 2006 – SFP/WWF meetings with key companies at IFC, Vladivostok

• December 2006 / January 2007 – Pollock Catcher Association considers MSC pre-assessment. SFP/WWF present case.

• March 2007 – contract signed with certifier

• April 2007 – SFP hosts 2nd FIP meeting with buyers and producers at Brussels show

– Much more positive tone, dialog both ways, with Russian company leading debate

Russian pollock timeline 3Sustainable Fisheries Partnership

• June – August 2007 – PCA – MSC CB meetings

• September 2007 – SFP presents at 2nd International Fishery Congress

• PCA announced: 4.5% roe recovery, A and B seasons

• Legal verification pilot project developed

• Discussion of Russian company being lead corporate partner in FIP

Russian pollock FIP lessonsSustainable Fisheries Partnership

• Progress relies on becoming seen as a trusted “insider”

• Gaining trust and getting productive dialog takes a lot of time

• Be well informed:

– Recognise and understand different approaches but high quality of Russian fisheries/marine science

– Understand laws, enforcement systems, recognise known problems etc.

• Partnership needed between companies through the supply chain

– Build leverage through market share represented, but only helps with getting attention of producers

• Leadership by local senior company staff is essential (“ambassadors to TINRO, government etc.”)

• Committed staff in leading companies also essential (competing priorities, capacity limitations, avoid “lost in translation” problems)

• Pace of change externally limited