Characteristics of Successful Sustainable Fishery Initiatives

Over the past six years, Wilderness Markets has assessed sustainable fisheries investment opportunities in more than fifteen different wild capture fisheries worldwide. Our specific objective is defining how to make conservation-based approaches a viable financial alternative to current wild capture fishing practices.

We have enjoyed working with numerous international and national partners on field assessments, desk reviews and systemic fishery improvement project (FIP) assessments. Much of our public work and partners can be reviewed at this link.  Fisheries assessed ranged from the United States, Mexico, Indonesia, the Dominican Republic, Grenada, Guyana, Chile, and four Caribbean-wide fisheries. Along the way, we have also reviewed a number of fisheries in Africa.

Behind these public reports are a series of financial models we created to quantify the viability of alternatives considered in different fisheries. These models move beyond the scientific and policy recommendations associated with fishery reform to account for the financial implications associated with existing or proposed measures. These models weigh the financial costs and benefits of changes in management, data collection and use, infrastructure and capacity development in the context of existing value chains and markets. 

Whereas others have ably demonstrated the potential upside associated with fisheries reform through significant economic modeling,[1]and others have documented key characteristics of FIPs,[2] we have focused on how and where the specific financial benefits may be realized in a value chain. We identify how the “upside” may be used to compensate for the costs of fisheries reform and improvement such as gear change, improved management, etc. Our focus has been on the financial implications for fishery participants, especially fishers.

Through our work and others’, the variables listed below have been identified as having a direct impact the financial viability of fisheries reform. These five variables have been examined across a range of fisheries and found to be consistent. It is important to note that these operate in the context of sustainable fishing interventions, most likely in a “parallel” model.

  • Product value 
  • Stock recovery cycle[3]
  • Infrastructure Access[4],[5]
  • Supply chain length[6], [7]
  • Organizational homogeneity and capacity[8]

These variables are focused specifically on the potential likelihood of securing the financial incentives necessary to address the costs of fisheries reform or improvements, i.e., ability to pay for conservation measures through the improved value of the fishery. These benefits may then be utilized to justify reform or directly support sustainable fishing practices.  


The priority quantitative variables that have a direct impact on the financial equation are:

Product Value 

Value refers to not only the price of the seafood, but also to the margin retained by the participant in the value chain, whether fisher, first receiver or processor. This is a combination of the price, operational capacity, input costs and volumes associated with a participant. 

Products handled by participants capable of securing comparatively high value in seafood markets were found to be more capable of absorbing the incremental costs associated with fisheries reform and conservation focused measures. Lower value products – either due to the inherent value of the stock, low volumes, operational inefficiency or poor capacity leading to low margins are less likely to be viable. The willingness of participants to engage in changes in practices such as gear change and harvest control regulations, is directly proportional to the value generated by the seafood product and realized by the participant. 

Stock Recovery Cycle

Life cycles, fecundity, biomass levels, fishing effort mortality, predation and habitat health are all critical components in defining the costs of conservation related measures. Short recovery cycles reduce the wait time to realize benefits in a fishery, capping social, political and financial costs associated with fisheries reform. 


The primary qualitative factors that influence the financial equation are:

Infrastructure Access

Domestic and global supply chains require sanitary and safe foods, therefore access to appropriate storage and transport is a significant driver of product quality and value. In seafood, this typically means access to HACCP compliant facilities able to reliably provide clean ice, cold storage and timely transportation. The absence of these factors negatively impacts value.

This variable is routinely exploited by supply chain participants (including well meaning development organizations) to attempt to integrate new products into global and domestic supply chains. Unfortunately, negative social and environmental consequences are not always considered by these participants, nor is there typically a simple mechanism for integrating or compensating fishers or others for improvement costs. 

Supply Chain Length

Supply chain length includes both the geographic distance and the number of participants “touching” a product in the supply chain. Extensive travel distances between points of harvest and market drive up costs of transportation, ice and storage, and lead to product deterioration. Each “middleman” in the supply chain adds handling and cost margins to the product. While these costs may be absorbed by the end market, long supply chains decrease the likelihood of compensating those bearing the cost of fishery reform and improvement, usually fishers. 

Organizational Homogeneity and Capacity

When considering artisanal and small scale fisheries, community cultural homogeneity has been identified as a critical component of community based fisheries management and reform efforts. Successful efforts are entirely dependent on alignment around goals[9], which is easier to achieve in geographically remote, culturally homogenous communities. Regardless of the financial upside, heterogenous community efforts close to major cities are challenging. 

At the corporate level, strong leadership and the ability to effectively respond to market signals has been well documented in value chain literature and in pilot projects we have tested.

At its base level, the presence of a functioning investable entity is a significant advantage in successfully addressing the characteristics identified above. 


Based on our review of a range of different fisheries, the above characteristics have a significant impact on the success or failure of sustainable fisheries initiatives, particularly in emerging market contexts where the financial and social implications of fisheries reform are often ignored by the conservation community.

Unless these factors are integrated into projects aimed to curb overfishing, conservation efforts are unlikely to succeed and the unsustainable status quo is likely to continue.

We welcome your comments, thoughts and views on the above.

[1]Costello C, Ovando D, Clavelle, T, Strauss, K, Hilborn, R, Melnychuk, M, Branch, T, Gaines, S, Szuwalski, C, Cabral, R, Rader, D, and Leland, A. (2016). Global fishery prospects under contrasting management regimes. Proceedings of the National Academy of Sciences.113. 201520420. 10.1073/pnas.1520420113. 

[2]https://www.ceaconsulting.com/wp-content/uploads/Global-Landscape-Review-of-FIPs-Summary.pdf

[3]http://investinvibrantoceans.org/wp-content/uploads/documents/Executive_Summary_FINAL_rev_1-15-16.pdf

[4]Anderson J, Anderson C, Chu J, Meredith J, Asche F, Sylvia G, et al. (2015) The Fishery Performance Indicators: A Management Tool for Triple Bottom Line Outcomes. PLoS ONE10(5): e0122809. https://doi.org/10.1371/journal.pone.0122809

[5]Basurto X, Bennett A, Hudson Weaver A, Rodriguez-Van Dyck S, and Aceves-Bueno J-S. 2013.

Cooperative and noncooperative strategies for small-scale fisheries’ self-governance in the globalization

era: implications for conservation. Ecology and Society. 18. 10.5751/ES-05673-180438.

[6]Ibid.

[7]Wilderness Markets. 2016. Connecting the Dots: Linking Sustainable Wild Capture Fisheries Initiatives and Impact Investors.http://www.wildernessmarkets.com/our-work/connecting-the-dots/

[8]McCay BJ, Micheli F, Ponce-Díaz G, Murray G, Shester G, Ramirez-Sanchez S, and Weisman, W. (2014). Cooperatives, concessions, and co-management on the Pacific coast of Mexico. Marine Policy,44,49–59. doi:10.1016/j.marpol.2013.08.001. 

[9]Csaky, Eva (2014) Smallholder Global Value Chain Participation: The Role of Aggregation (PhD Dissertation, Duke University)

Is Losing the Amazon Inevitable?

As the Amazon burns, and the world responds, this might be a good time to reflect on some of the key drivers of this tragedy.

Three major trends have combined to create the conditions that make it almost inevitable that the forest would be burned.

  • Global population increase & increased global middle class
  • Tragedy of the commons
  • Lack of a viable alternative to developing the Amazon

Plenty of ink has been spilt on the first two trends. Populations continue to increase around the globe, with Brazil’s alone increasing from 72 million in 1960 to over 209 million in 2017 according to the World Bank, an increase of almost threefold. At the same time, GDP per capita has risen from $205 in 1960 to $9,812 in 2017. These increase are mirrored around the world, particularly in emerging markets.

The tragedy of the commons has meant that rainforest areas like the Amazon in Brazil and tropical rainforests in countries like Indonesia have been an easy target for both small scale and industrial scale producers of soy, wheat, beef and palm oil.

Global demand for cheap beef, soy, wheat and palm oil– which we in the west are as guilty of driving – provides the markets for these products and the incentive to destroy these natural ecosystems, despite their value as “the lungs of the world”.

Which brings us to the third trend – there is no value in conservation for the people living in these countries. Now that we’ve deforested the north (as the Brazilian President put it), we are dependent upon the south for these ecosystem services. However, despite the many millions of dollars spent on conservation related activities, conservation of these natural resources is simply not a viable alternative to deforestation. In all our modeling for wild capture fisheries, we often find that the costs of conservation increase production costs over and above what the “market” will pay, and that the majority of these costs fall on producers – who face the choice of complying, and potentially going out of business, or finding other markets for their product.

In deforestation, as in wild capture fisheries, as long as there is no way to recognize the resource as an asset, and to provide a realistic payment for ecosystem services provided by those assets, it is unlikely we will ever save the Amazon – or, for that matter, any wild ecosystem, including wild capture fisheries.

The sooner we recognize the need to develop viable assets that provide realistic payments for ecosystem services to incentivize maintenance of priority ecosystems, the sooner we will secure their future.

LEVERAGE LEAD FIRMS: ENDURANCE AND EFFICIENCY

Lead Firm Pilot Projects

When we evaluate value chains, we look for lead firms: small, medium, or large enterprises that are linked to many other players in the value chain and can influence the practices of these commercial partners. Ideally, these firms are thought leaders in their fields and open to innovation. Building on our value chain and market research, we work with these firms to lead by example. We collaboratively design and implement pilot projects that help overcome barriers to triple bottom line business growth.

Through these projects, we test our research findings, learn more about what will work on the ground, and iterate on real-world solutions. These pilot projects not only improve business practices within the lead firm, but throughout the fishery value chain. When successful, they generate financial returns that demonstrate the viability of new approaches in the industry and inspire other businesses to follow suit, thus improving industry competitiveness. They create new norms in the market that are sustained because of their business value rather than relying on ongoing philanthropic support or government subsidies to succeed.

Crab fishermen in Indonesia receiving their “Kartu Nelayan”, guaranteeing their access to benefits such as life insurance

Role of Lead Firms

Sustainable and profitable fisheries are built on secure tenure, sustainable harvests, and monitoring and enforcement, according to research behind the report, “Towards Investment in Sustainable Fisheries”. Rather than waiting indefinitely for these enabling environment conditions to transpire, using a lead firm approach allows project developers to leverage the assets and abilities of industry to progress towards better managed fisheries. In return for their contributions, lead firms in fisheries promote decreased supply volatility; increased long-term availability of the resource; improved supply chain efficiency, and more.

Lead Firm Project Goals and Benefits

Wilderness Markets’ goal with lead firm projects is to attract private, return-seeking impact investment and complement ongoing work by fishery managers and NGOs to improve fisheries. This approach enables local fishermen to adopt sustainable practices faster than waiting for the government to independently create and enforce management changes, and without the economic hardship for fishermen that often accompanies changes in fishery regulations. It will also bolsters business advocacy for more effective fisheries management policies and enforcement through a local cooperative structure.

Lead Firm Experience

From 2016 to 2017 we engaged with a lead firm, Blue Star Foods, in the blue swimming crab fishery in Indonesia. Our primary goals were to engage a lead firm to secure change on the water and development an investment model. We gained some valuable learnings, including the importance of fisher organizations; the need for ongoing, structured and unstructured facilitation between stakeholders; and the importance of pre-agreements for data collection analysis, and management.

Parallel Approach
Sumatran Fisherman with Blue Swimming Crabs

By working with a lead firm, the financial viability of data collection and management was validated, and many of the improvements in the value chain have continued to date, despite the project ending in 2017. [

For the fishermen, participation in the project included signing up for the Indonesian fisher ID card – Kartu Nelayan – which conferred immediate benefits to the fishers, such as life insurance. The government also benefitted from getting better counts of fishermen in the area. Through their participation, harvesters were provided clear and reliable financial benefits for small-scale fishermen to make gear changes; follow harvest control measures; and take on other sustainable fishing practices.


Successful Lead Firm Characteristics

  • Industry leaders: innovation, technology, experience
  • Highly connected in the value chain: linked to large numbers of producers
  • High capacity: can provide technical assistance, credit and inputs
  • Financially stable: can make long-term investments towards sustainability
  • Excellent market access and understanding: connected with multiple markets (to decrease risk) and routinely attend industry events and conduct analysis to stay attuned to market dynamics
  • Respected influencer: others in the industry look to them for thought leadership and hold them high esteem
  • Willingness: firm indicates a willingness to work with project developers, including signed agreements

Adapted from: “Integrating Very Poor Producers into Value Chains: Field Guide” by USAID, fhi360 and World Vision, October 2012.

IPBES global report: Species extinction rate is accelerating

This recently released report makes for sobering reading for all.

One of the key challenges we will all face is how to address the challenge of climate change, environmental conservation, poverty and population. Focusing exclusively on environmental impacts and ignoring the financial and social impacts is not only sustainable, but counterproductive to achieving environmental objectives.

This is why we are working with a range of stakeholders to develop and test “triple impact FIPs” that address not only the environmental outcomes, but also the social and financial outcomes of the participants in global seafood supply chains.

Dr. Richard Leakey – Presentation on Conservation

Dr. Richard Leakey recently presented some thoughts on conservation in Cape Town at the 2017 Conservation Lab.

He made some excellent comments regarding the current and future challenges of conservation in the age of climate change, population growth and prosperity that need to be incorporated into many Conservation NGO strategies and agendas (particularly in fisheries).

I hope you enjoy it as much as I did – its worth the time.

Climate Change Stresses Clownfish

Rising ocean temperatures are causing significant changes with devastating impact on the ecosystem. Worldwide, the warmer and more acidic ocean conditions in the tropics have caused mass bleaching of anemones and corals[1]. A new study published in the Proceedings of the Royal Society B supports findings from another recent study in the journal, Nature, that the bleaching of anemones has a severe impact on anemonefish, like clownfish and dire consequences for marine life in general.[2]

sea water nature ocean animal underwater swim biology fish sea animal coral coral reef invertebrate marine life clown fish reef tentacle mollusk nemo aquarium cnidaria hide toxic creature exotic hidden protection invertebrates anemones protect symbiosis underwater world meeresbewohner organism clownfish water creature anemone fish sea anemones sea anemone marine biology coral reef fish marine invertebrates pomacentridae

Clownfish in anemone. Used under Creative Commons from : https://pxhere.com/en/photo/559857

Findings

The latest study looked at the metabolic rates between fish from bleached and unbleached anemones. Even though there was no discernible difference in activity between the two groups of fish, the study found that the “[s]tandard metabolic rate of anemonefish from bleached anemones was significantly higher by 8.2% compared with that of fish residing in unbleached anemones, possibly due to increased stress levels.”[3] Reduced spawning frequency and lower fecundity are two of the negative impacts that were previously observed.

The study published in Nature in 2017 focused on the hormonal stress response and reproduction of anemonefish in bleached anemones. The 14-month monitoring study found a strong correlation between the anemone bleaching and the anemonefish’s stress response and reproductive hormones. Anemonefish in bleached anemones had a 73% decrease in fecundity compared to anemonefish in unbleached anemones. They spawned half as frequently, laid 64% fewer eggs, and experienced a significantly higher egg mortality in incubation. The authors were unable to determine why the bleaching of anemones would trigger a stress response in anemonefish. They offer the possibility that bleached anemones may provide less cover and have reduced neurotoxicity of venom which leads anemonefish to perceive a greater risk of predation. [4]

According to Beldade, Agathe, O’Donnell, & Mills (2017), there are “…[a]t least 50 species of fishes and facultative symbionts of sea anemones worldwide…as many as 12% (56/464) of coastal fish species depend directly, either for food or shelter, on organisms capable of bleaching. While the strength of such dependency varies greatly, if these species suffer even a fraction of the impact found for anemonefish, then a short-lived bleaching event could decrease the reproductive output of at least 12% of species, especially those highly dependent on corals or anemones.”

Takeaway

The two studies contribute to a growing library of research on the effects of global warming on marine life and highlights the importance of understanding how individual differences in stress responses influence a species’ chances of survival.

Why does Wilderness Markets care about anemones and anemonefish? Because our work requires us to look not only at enterprises and fishery management, but at the entire ecosystem to properly account for business risks. Learn more about us.

https://www.flickr.com/photos/60477809@N03/34860139102

Photo Credit: “q phia”; anemone fish on bleached anemone, fukui, siladen, 2017

[1] Norin, T, Mills, S. C., Crespel, A., Cortese, D., Killen, S. S., & Beldade, R. (2018). Anemone bleaching increases the metabolic demands of symbiont anemonefish [Abstract]. Proceedings of The Royal Society B. doi: 10.1098/rspb.2018.0282

[2] News Deeply. (2018). Executive Summary for April 13th. Oceans Deeply (Bleaching of Anemones Makes Life Harder for Clown Fish). Retrieved from https://www.newsdeeply.com/oceans/executive-summaries/2018/04/13.

[3] Norin, et al.

[4] Beldade, R., Blandin, A., O’Donnell, R., & Mills, S. C. (2017). Cascading effects of thermally-induced anemone bleaching on associated anemonefish hormonal stress response and reproduction. Nature Communications, 8. doi: 10.1038/s41467-017-00565-w

Improve Data to Improve Sustainability

Case Study:
Developing and Implementing SIMP Compatible Seafood Data Reporting and Traceability System in the Crab Supply Chain

Problem Statement and Opportunity

The U.S. implementation of the Seafood Import and Monitoring Program (SIMP)[1] on 1 January 2018 establishes reporting and recordkeeping requirements to prevent illegal, unreported and unregulated (IUU) seafood from entering the U.S. The onus of proof is placed on the importer of record to provide and report key data from harvest to U.S. entry. In geographically diffuse supply chains, like blue swimming crab from Southeast Asia, with thousands of “points of entry”, i.e., fishers, tracking landings to the vessel is far less straightforward than short and narrow supply chains, such as skipjack tuna or sardines. This reporting requirement, while worthwhile, will require U.S. seafood importers to incorporate cost-effective traceability initiatives in their often-complex supply chains.

There is a growing appreciation that the needs of fishers and their communities must be addressed in order to improve the underlying causes of fishery exploitation in the developing world, particularly for small-scale fisheries. -California Environmental Associates

The requirement also presents an opportunity to promote resource sustainability through supply chain transparency and catch monitoring. Despite pledges to abide by size limits, U.S. importers of blue swimming crab (BSC) have difficulty ensuring their supply chain partners are buying only crabs larger than the agreed minimum size of 10cm and excluding berried females. The application along with a web-based reporting tool we developed can meet the requirements of the SIMP, as well as the European Catch Documentation (CD) requirements, and elucidate the in-country supply chain. By tracking landings by vessel and by harvester, this tool further provides the opportunity to address key social and environmental outcomes associated with the Sustainable Development Goals[2] (SDGs), which gives seafood importers a mulit-purpose toolkit to both decrease their reporting costs and increase the sustainability of the crab stocks.

The opportunity to spur social and economic impact should not be underestimated. Educating, engaging and rewarding fishers and communities directly for complying with ecological goals like minimum size, berried females, no-take areas, and more offers an opportunity to engage communities directly in resource management and provide key links to SDGs. Aside from nascent work by Fair Trade[3] and SmartFish[4], there are few fishery sustainability efforts that actually benefit the fishers that form the foundation of many supply seafood chains. Indeed, most efforts impose costs on fishing communities—time, foregone income, capital for new equipment—without providing benefits. Our tool allows identification of compliant fishers, so they can be awarded price premiums and other incentives.

Supply chain transparency is beneficial to the U.S. importer not only in terms of identifying good actors and meeting reporting requirements, but also gives them an edge in the marketplace full of otherwise opaque supply chains.

Provision of ice is a key concern

Assessment

When initially considering how to provide BSC supply chain transparency from the ocean to the end buyer, we researched existing options, hoping to find one that could be customized to the supply chain. We conducted a desk review, scouring the internet and our personal network to identify all available options. In total, we reviewed nearly forty systems that provided varying levels of traceability; of these, we interviewed approximately six potential providers that met or came close to our key considerations:

  1. Ease of use – the user interface needed to be easy for data collectors in Indonesia and importers in the U.S. to use
  2. Utility for marketing purposes – a consumer-facing component was a must
  3. Facilitate regulatory compliance – must collect and provide data required by the SIMP and EU CD in a straightforward format
  4. Mapping – needs to provide maps of fishing locations to determine which areas are best for avoiding undersized and berried crabs
  5. Business model – a cost effective and durable business model that did not result in excessive fees or costs to each level of the value chain
  6. Data access, storage and ownership – data must be accessible by multiple parties within the value chain, stored in Indonesia, and owned by the funding company
  7. Reasonable set-up costs – ideally, a system would be compatible with existing software and hardware and would require little in the way of training. A team should be able to begin data collection with a few hours or less of upfront training on the system interface and they should be able to readily convey to the fishers the benefits of the system.
  8. Geographic and cultural relevance – the system needed to function in rural, relatively isolated areas with little to no telecommunications access
  9. Engage Harvesters and Vessel owners in order to build their understanding and the relative importance of adhering to harvest control regulation
  10. Ease of integration – overall, the platform needed to be easy to readily integrate into the supply chain.

Findings from Assessment

None of the reviewed systems met the requirements of the lead firm with the exception of the Pelagic Data Systems units for vessel management, i.e., vessel tracking. Due to the cost of acquisition and the relatively high ongoing costs of use, these were installed on a trial basis. This test was not successful, and cheaper, more effective units were identified.

Development

Not finding a suitable existing program, Blue Star Foods decided to develop their own application to gather data tied to their marketing goals and objectives around supply chain integrity. The SIMP and EU CD data requirements were integrated into the data collection system. Wilderness Markets worked closely with an app-development team to develop an Android and iOS  application and support the field trials. After the initial field trials, the system was deployed to in-house teams from Blue Star Foods Indonesian partners, consisting of procurement and quality control specialists.

Implementation and Deployment

Data was collected at selected mini-plants and landing sites during a six-month period. Both harvesters and data collectors were simply encouraged to log landings during the pilot phase without any indication or reference to IUU or other considerations. They were not penalized or otherwise reprimanded for reporting undersized or berried crabs during this time period. Vessel tracking data was collected for a select number of boats during this period, which could be matched to landings data.

Parallel Approach

Sumatran Fisherman with Blue Swimming Crabs

Initial learning points

  • Data collection required additional training of procurement and quality control teams. This in turn required an additional budget to be implemented effectively.
  • The pilot only covered a small portion of overall U.S. imports from Indonesia (less than 1%) – the current opacity of the supply chain means we did not know how much each mini-plant contributes to the supply chain before the pilot
  • The system efficiency is high enough that recording all landings at a mini-plant or at a landing site is possible, though unless a quality control individual is onsite continually, it cannot guarantee there will be no side selling unless all buyers agree to use the system.
  • The data feedback loop to management has been significantly shortened and is possible in nearly real-time allowing:
    • Faster identification of low productivity landing sites
    • Faster identification of high productivity landing sites
    • Faster identification of undersized and/or berried crab seasons and locations
  • Data integrity and accuracy continues to be an issue and needs to be worked on – Due to their small size, most vessels are unregistered so vessel identification is challenging. Usual data integrity and accuracy issues for data collection operations exist, such as ensuring consistent data entry, checking entries for errors, etc.

Initial Data Findings

  • Initial indications, based on sampling approximately 10% of the harvest per vessel, are that up to 25% of landings can likely be classified as IUU (berried females & sub 10cm).
  • Boats with lowest supply chain loyalty appear to have higher levels of IUU (an assumption to be tested in additional sites)
  • It is now possible to identify the specific boats that are causing the high levels of infractions, and to address with through the supply chain in a focused manner.
  • Less than 20% of the surveyed vessels were responsible for 80% of the IUU landings

Fishery Management Implications

The ability to specifically identify vessels not complying with agreed harvest controls will permit a more targeted, focused and cost-effective approach to monitoring and enforcement of infractions. With less than 20% of the vessels are causing 80% of the issues with regards to IUU landings, efforts can be made to reduce IUU in a focused manner.

The data provides:

  • Ability to provide shore-based landing information
  • Ability to identify both geographic and seasonal potential closure options based on real data
  • Ability to target enforcement based on recorded infractions

lead firm crab

BSC fisherman with new vessel tracking device

Links to SDGs

In addition to the business and fishery management implications, the findings are directly linked to at least three SDGs:

SDG 8 Decent Work and Economic Growth

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

Biological data indicates a quick (less than 1 year) stock recovery when undersized crabs are left in the water, thereby increasing the economic value of the fishery and decoupling growth from environmental degradation (Target 8.4)

SDG 9 Industry, Innovation and Infrastructure

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Increasing the transparency of the supply chain means that small-scale enterprises, like the mini-plants, can have better access to financial services (Target 9.3).

SDG 14 Life Below Water

Conserve and sustainably use the oceans, seas and marine resources for sustainable development

Using the data generated by the app, progress can be made towards sustainably managing fish stocks, combatting IUU, and providing meaningful market access for small-scale artisanal fishers (Targets 14.4, 14.6 and 14.B).

Recommendations and Next Steps

A key recommendation of the initial pilot is the need to establish unique vessel IDs with the support of local government authorities, which will allow more meaningful monitoring and enforcement of landings.

In addition, the need to engage with, and involve, other firms purchasing from the fishery was identified in order to reduce the opportunities for side selling.

A second phase is being planned to address the constraints of the first. The goal of the second phase is to:

  • Capture a minimum of 25% of the Blue Star Foods Indonesia sourcing;
  • Integrate improved vessel activity geographic data
  • Expand geographically
  • Include more processors, mini-plants and fishers in Indonesia, particularly in co-packer conditions
  • Replicate into the Blue Star Foods Philippine supply chain

Conclusion

The drivers of market access compliance requirements, improved social and financial impact in in artisinal fisheries and greater supply chain integration are powerful drivers for change in any industry. The relatively low cost now associated with data capture tools mean lead firms can utilize almost ubiquitous cell phone availability to cost effectively assess the degree and extent of IUU in their supply chain, while strengthening their impact objectives and improving market recognition.

This approach provides resource managers and NGOs as well as development agencies with a relevant, cost effective tool to engage private sector supply chains in achieving SDGs in a measurable, informed and data driven manner.

 

[1] “U.S. Seafood Import Monitoring Program”. Retrieved on 7 March 2018 from: https://www.iuufishing.noaa.gov/RecommendationsandActions/RECOMMENDATION1415/FinalRuleTraceability.aspx

[2] “Sustainable Development Goals”. Retrieved on 19 March 2018 from https://sustainabledevelopment.un.org/?menu=1300

[3] “Capture Fisheries Standard (CFS)”. Retrieved on 8 March 2018 from: https://www.fairtradecertified.org/business/producer-certification

[4] “Rescate de Valor”. (English: Value Rescue) Retrieved on 8 March 2018 from: http://rescatedevalor.org/

Value Rescue in Fisheries

Do you know of fisheries that have considered or implemented Value Rescue?

 

Your knowledge can help others scale fisheries’ enterprises with positive social, economic and environmental impacts.

We are researching fishing groups, including businesses, associations, co-operatives and similar entities that have tried improving the value of their catch or production while also improving their social and/or environmental performance.

We are conducting case studies to characterize these interventions and then develop best practice manuals and other materials that can be shared to create a community of practice and scale implementation of the value rescue methodology around the world.

You can play a role by submitting basic information (location, contact information, intervention, etc.) that we can follow-up for additional research. Click here to begin the 15-minute survey.

What is Value Rescue in Seafood:

a process to improve the social and environmental performance of sustainable fisheries through improved financial incentives, product differentiation and market segmentation

Key components:

  • Enhancing social cohesiveness and decision making around resource management
  • Community based management of sustainable fisheries
  • Culturally appropriate business decision making
  • Product differentiation to secure market access and pricing advantages tied to mission

 

We’ll be closing the survey on July 31. Contact Jada at jada (at) wildernessmarkets.com if you encounter any problems submitting your reply or have questions.

 

 

Investing in sustainability – the role of intangibles

“Early in the twenty-first century, a quiet revolution occurred. For the first time, the major developed economies began to invest more in intangible assets, like design, branding, R&D, and software, than in tangible assets, like machinery, buildings, and computers. For all sorts of businesses, from tech firms and pharma companies to coffee shops and gyms, the ability to deploy assets that one can neither see nor touch is increasingly the main source of long-term success[1]”.

Rated as one of the Financial Times Best Books of 2017, Capitalism without Capital is a useful and timely read as we consider sustainability based investment broadly, and sustainable wild capture fisheries specifically. It goes a long way to explaining and addressing one of the many challenges the sustainability community faces when evaluating and considering how to transition “projects” to enterprises.

Wilderness Markets and others have made considerable progress in identifying, developing and deploying appropriate due diligence questions to address investment risk as well as developing appropriate business plans and models, most recently in wild capture fisheries (with the World Bank). However, these criteria either ignore or assume the presence of effective intangible development capacity which is seldom the case with most natural resource “projects” nurtured by NGO’s and many communities. These “projects” often lack both the human and intellectual capital to effectively develop and grow businesses, leading to an over emphasis on tangible assets.

Yet, as is clearly defined in this book, this is where significant value is to be gained. In the abscense of effective design, branding, R&D and software, the likelihood of enterprise success is marginal, seldom providing the risk adjusted returns investors would like to see.

The social implication of this trend are also discussed in the book. It provides good perspective on how inequality is both a result and a cause of this investment trend, resulting in a negative vicious cycle. Applying equally to groups and individuals, in both developed and developing markets, participants are unable to upgrade skills due to economic challenges (or an overreliance on tangibles), thus depriving them of the resources needed to upgrade their skills. We have seen this in fisheries in the United States, Mexico and Asia.

Intangibles also have significant implications regarding the appropriate types of capital to be deployed. Given the nature of intangibles – identified as the 4 S’s (scaleability; sunkenness; spillovers and synergies), these types of investment are more appropriate to equity than to debt, which has implications on the recently launched debt funds in sustainable fisheries and oceans.

As we and others continue to evaluate and explore how best to attract private capital to a range of sustainability markets, this book provides good perspective on an important topic.

[1] Jonathan Haskel & Stian Westlake, Capitalism without Capital; The Rise of the Intangible Economy, Princeton University Press 2017

West Coast Pilot – Culinary Workshop

A previous post outlined our pilot project in California with Changing Tastes; this post provides a peek into a culinary workshop that is part of the planning phase.

Purpose

As part of our work to reintroduce local fish back into local markets in California, our foremost consideration is how to reintroduce them to our plates and palates. Without delicious dishes and high quality products, winning back a space on the plate will be impossible.

To discover how local fish can create a winning combination of flavor, presentation, and affordability for chefs in corporate dining, our partner Changing Tastes arranged a culinary workshop in California. More than a dozen chefs and several sustainability managers from the same or similar groups joined us in mid-November at a test kitchen in the Bay Area to develop the recipes and messaging needed to successfully bring back Californian West Coast Groundfish.

Palate and Pocket

To explore which fish could please both palates and pocketbooks, the chefs spent the morning preparing a sampling of locally-caught fish, including Dover and petrale sole, boccaccio, chilipepper and black gill rockfish, and sablefish (AKA black cod) provided by Real Good Fish. These fish represent the spectrum of species that are part of the West Coast Groundfish program, one of the most sustainably managed fisheries in the world, and one that has the fish to prove the stocks are  healthy. These are fairly common landings that span from very inexpensive Dover to higher-end sablefish. The variety of textures, thicknesses and tastes were highlighted in Latin and Asian-inspired themes, such as black gill fish tacos with mango slaw (Chef Ochoa), petrale-coconut ceviche (Chef Fogata), black and white coconut crusted black cod (Chef Thomas), and steamed Szechuan boccaccio (Chef Hernaez).

Heart and Mind

Equally important to taste and cost is persuading diners to try these new dishes. In a nearby space, restaurant industry marketing and communications executives as well as sustainability managers and representatives of groups that support sustainable seafood brainstormed marketing ideas for the dining spaces where the fish will be offered to diners next spring.

Common themes included emphasizing that the fish is locally-caught in California. They noted that “local” often implies fresh to diners. Including a map of the different ports where the fish originates from for the pilot, and identifying fishermen and women from each was another popular theme.

Marketing experts, chefs, sustainability managers and others agree on not using the word “groundfish” in marketing materials. This group and others realize that this collective term for these species isn’t one that necessarily appeals to diners, nor does it help them understand the diversity of species and flavors within the broad category.

Pilot Evaluation

Among potential evaluation methods and data points, our participants identified these as the most likely:

  • On-site, established food focus groups
  • Measurement of orders by volume
  • Gauging the relationship between price of dishes and purchases
  • Comparison to sales of other seafood dishes
  • Comment cards
  • Online commenting system
  • Surveys, potentially with incentives, and/or provided in a quick format via touchpad at the point of purchase
  • Querying the culinary team during and after the pilot

 

Post-workshop steps

Our next tasks are confirming which specific dining halls and cafes will participate from each of the corporate dining partners and confirming likely order volume by species or species group, e.g., petrale sole is a species and rockfish is a species group. Almost simultaneously, we will work with the corporate dining partner and their existing distributors to determine the likely sources, feasible start dates, and volumes. We look forward to sharing updates as this work progresses in 2018.