Indonesia Snapper Grouper Supply Chain Roundtable Boston, MA, March 7, 2016 Meeting Note
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1 Indonesia Snapper Grouper Supply Chain Roundtable Boston, MA, March 7, 2016 Meeting Note Sustainable Fisheries Partnership (SFP) convened Indonesia Snapper Grouper Supply Chain Roundtable (SR) during the 2016 Seafood Expo North America, in Boston, MA. The goal agenda of this SR meeting was: 1. Update on Indonesian snapper and grouper fisheries 2. Review on the FIP status 3. Identify priority snapper and grouper fisheries in Indonesia 4. Identify potential SR participants 5. Review 2015 SR activities 6. Review/approve 2016 Statement of Work Meeting participants: 1. North Atlantic 2. Hilo Fish 3. Sea Delight 4. Beaver Street Fisheries 5. Quirch Foods 6. Norpac Fisheries Export 7. Harbor Seafood 8. Amacore 9. The Fishing Company 10. St. Peters 11. The Fishing Company 12. Channel Seafood International Key points from the meeting: 1. Fishery challenges: lack of stock status data snapper and grouper species in Indonesian territorial water; inconsistent catch data reporting by semiindustrial vessels; misidentification of species due to lack of willingness to categorize catch per species; lack of data on the artisanal snapper/grouper fisheries; illegal, unreported, and unregulated (IUU) fishing, especially in Arafura and Aru Seas. 2. Recent exploitation level released by government (2011 data) shows that snappers have been fully exploited in most of the Fishery Management Areas in Indonesia, including: Malacca Strait, West Sumatra, Java Sea and Arafura, Aru and Timor Seas. Some areas have been fully exploited, such as: South Java and Ceram Seas. Others are moderately exploited, such as: Makassar Strait and Flore Seas, and Sulawesi Seas. The exploitation statuses of other remaining areas are still unknown. 1
2 3. Total national catch data released by the government shows that the snapper catches have been stable. Major fishing areas are Arafura, Aru and Timor Sea, Makassar Strait and Flores Sea, South China Sea, Java Sea, and Banda Sea. 4. Status of current FIPs a. Snapper Grouper Bottom Longline in Arafura, Aru and Timor Seas FIP (led by Intan Seafood) currently rated as B (good progress) the FIP is covering about 50% of bottom longline vessels in that Fishery Management Area/WPP 718. b. Small Scale Snapper Grouper in Central Sulawesi FIP (led by Sea Delight/WWF) currently rated as C (some recent progress) c. Small Scale Snapper Grouper in Makassar Strait FIP (led by 5 companies based in Makassar Kemilau Bintang Timur, Multi Sari Makassar, Kelola Mina Laut, Prima Bahari, and Intan Makmur) currently rated as C (some recent progress) it is covering about 30% of production in that Fishery Management Area/WPP Next target area: Small-scale fishery in Java Sea Fishery Management Area (WPP 712) need more information and data. 6. Current SR participation 3 companies (North Atlantic, Hilo Fish and Sea Delight). 7. Review of 2015 SR activities: a. Indonesia Fisheries Meeting in Boston introduce SR concept. b. One new FIP established for small-scale snapper grouper in Makassar Strait. c. SR participant who is also active FIP supporter, assisted Aru Arafura and Timor Sea FIP leader to conduct pilot test for the use of e-logbook to improve catch data recording. d. Observer program postponed by government due to policy review. e. Existing FIPs monitoring (currently rated B to C). 8. Expected Outcomes for 2016: a. Need more companies and vessels to be involved in the current FIPs b. Need more snapper grouper FIPs especially for Java Sea (WPP 712) c. Expand SR to other countries in Asian countries d. SR participants contact FIP leaders to request improvement in catch data reporting. e. FIPs support government's observer program. f. Increase number of SR participants that are not FIP leaders. 9. Statement of Work for 2016: a. Improve logbook submissions b. Support observer program c. Data collection for small scale fisheries d. Support traceability e. Ensure public FIP reporting 2
3 Discussions: 1. FIPs coverage: In term of the Fishery Management Areas, the current FIPs have covered about 50% of total national landings since the FIPs covered 50% of main fishing ground. However, in term of the contribution of the FIPs landings compared to the total landings, perhaps it is only about 20%. 2. Perceptions from the industries on the current issues: - Lack compliance in the logbook submission: logbooks are not filled out, a lot of under-reporting. - There are 3 barriers to further progress, namely: food safety, social compliance, and sustainability. Producers do not want more rules. - There is supply tightening in Indonesia. Illegal Unreported Unregulated (IUU) boats are gone, so now all those countries that used to get their supply from existing suppliers seeing prices strengthen but also not enough infrastructures to process what is available. - Many of these markets are not asking for the same things (food safety, sustainability, etc.). - SR has to make sure is incentivizing fish still coming to United States of America (USA). UAE and China are big destinations. - It would be great if SR could design something that would help exporters deal with three barriers mentioned earlier. 3. Expanding the SR participants to encourage the FIPs: - We need more SR participants to get more coverage in this fishery. We need to identify other major importers. - Other companies to be involved: Noble and Central Sea Way, and Beaver Street. - It might be easier to approach producers/exporters and find out whom they are selling to in the US (note: SFP is facilitating a regular producer/exporter meeting in Indonesia to get some of this going. But sometimes we still need pressure from the importers/buyers to press locals to participate. 4. Support to the government: - Indonesia s Minister of Marine Affairs and Fisheries is very pro-active and it would be great if we could get access to her and get aligned to make sure government is utilizing info that is being collected. - SFP did have good relationship with former high-level government officials, but there has been a great deal of changeover and we are starting over with new folks introducing ourselves and what we are doing with FIPs and SRs. 3
4 - SFP has been funded by UNDP to set up National Platform with government in Indonesia to bring buyers/suppliers in to talk to government about their desires/needs will cover many species groups but snapper and grouper will also be included hope that it will be done directly under the Minister. 5. Social compliance issues: - There is a question from SR participants whether the SR can deal with social compliance issues. - SFP cannot really take lead on issues since it is not our focus, but the discussions can happen in this space and we can put it on National Platform agenda. Might Indonesia government be willing to accept BRC health standards instead of the currently required Indonesia specific standards that producer are struggling to comply with. 6. Time and financial commitment to SR participation: - It is suggested that it is easier to recruit companies if they clearly understand the time and financial commitment to SR participation. - Many companies do not import large volumes and will not be willing to put in a lot of money or time, but might be willing to do a light touch e.g. sign on to letter, etc. - It is also suggested there is the need to have clear differentiation between what FIP implementers are doing and what SR participants are doing.. - Follow up: Ed Rhodes from NFI CC might be able to present model for what they have done to show how everyone (in the NFI Crab Council) contributes to FIPs. 7. Overlapping between tuna importers and snapper grouper importers: SFP is looking at merging the meetings for Indonesia Tuna SR and Indonesia Snapper Grouper SR. 8. Promotional piece that could be used for SR members: There is a question if there is some sort of promotional piece that could be used for SR members to share with their suppliers to explain efforts? Note: We need to make sure that this doesn't get into anti-trust Follow ups: 1. Identify and approach other companies to be involved, including: Noble and Central Sea Way, Quirch Foods and Beaver Street, etc. 2. A lot of overlap between tuna importers and snapper grouper importers SFP will look at merging meetings. 4
5 3. Develop document to explain about: a. Clear differentiation between what FIP implementers are doing and what SR participants are doing b. The time and financial commitment to SR participation (many companies don't import large volumes and won't be willing to put in a lot of money or time, but might be willing to do a light touch sign on to letter etc.) 4. Example from Asia Swimming Crab SR (NFI Crab Council): Ed Rhodes from NFI CC might be able to present model for what they have done to show how everyone contributes to FIPs. 5. Explore the need of some sort of promotional piece that could be used for SR members to share with their suppliers to explain efforts (note: SFP needs to make sure that this doesn't get into anti-trust) 6. How could we help exporters deal with three barriers (food safety, social compliance, sustainability) note: SFP can't really take lead on social compliance issues since its not our focus, but the discussions can happen in this space and we can put it on National Platform agendas. 5
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