TRADE, MARKETING AND PROCESSING OF FISHERIES AND FISHERIES PRODUCT REVIEW

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1 Page 1 of 13 TRADE, MARKETING AND PROCESSING OF FISHERIES AND FISHERIES PRODUCT REVIEW I. INTRODUCTION In Cambodia, rice and fishes products have been considered as the major means of generating food. Fisheries are one of the most important sectors, by playing an important role in the daily food and contributing to the national economy. Cambodia is rich in fish productivity and fisheries resources. Especially, freshwater fisheries is one of the most products in the world due to the presence of the Great Lakes, the largest natural aquatic system in southeast Asia. Flooded forests around the Great Lakes and on both sides of the Tonle Sap, mainstream Mekong and Bassac Rivers have an important ecological role in the provision of feeding and breeding grounds for the fish population that consists of more than 500 species (Rainboth, 1996). These are intensively harvested and used mainly as food in both fresh and processed forms (Ahmed et al. 1998). The lake ranges in surface area from 3000 to square km and estimated that around 60% of the country's freshwater fishes are caught in the Great Lakes area Freshwater Fisheries Fish, which contributes about 75% of the animal protein for.4 million population of the country, comes mainly from the freshwater fisheries (Ahmed et al. 1998; Final Census Results, 1999). In 1991, the total supply of fish was 7,800 tons which 63% came from inland fisheries, 30% provided by marine fisheries, and about only 6-7% came from aquaculture (Touch, S.T 1992). In 1999, the total supply of freshwater fish is 231,000 tons that accounted for 81% of the total fish caught in the country. At present, freshwater fisheries are organized at three levels: (1) family (subsistence) fishing or small-scale fishing, (2) middle-scale (artisanal) fishing, (3) large-scale (industrial) fishing (Table 1). The fishing calendar is divided into two seasons: open (October-May) and closed (June-September). The small scale fishing have an open access at all times of the year, with imposing restrictions mainly on fishing efforts, for example, type, number, size, and mesh size of gear). Whereas, middle and large-scale fishing are allowed only in the open season and require licenses issued by the Department of Fisheries (DoF). Generally, large-scale fishing have been controlled by wealthy people and their affiliates. Cambodia is traditionally a fish eating country. Most of Cambodian people prefer freshwater fish rather than marine and raised fish, especially for people live around fresh water body and those living in the upland areas. Moreover, the fresh water fish is an important supply for traditional food such as fish paste (Prahok), fermented fish (Pha Ork), smoked fish ( Trey Cha Ar), salted fish ( Trey Nguiet ), and fish-sauce ( Toek Trey ). Table 1: Characteristic features of fishing practices in freshwater fisheries Cambodia Family Scale Middle Scale Large Scale Fishing Period Round the year Oct-May Oct-May Major gear technique horpoon/spear castnet (<5m) small gillnet single hooked lines bamboo traps Seine net gillnet castnet hooked line bamboo Traps bagnet bamboo/wooden barrage bamboo fence& traps Fishing rights allocation Free within areas outside fish reserves and fishing lots annual license fee according to gear type and size leasing of designated fishing grounds every 2 years through competitive bidding Background of fishers/operators artisanal fishers; subsistence farmers and landless artisanal fishers from river and lakeside communes financially and politically powerful people and agents Source of fishing labor and terms of employment Family members family members and covillagers as partners occasional hired hired workers from non-fishing communes fixed wages (cash &

2 Page 2 of 13 workers income sharing food) according to skills Education no education can read only primary school no education can read only primary school and more experience can read only primary school secondary; and more experience Income Poor Poor, average rich average poor Average size of crew Modified from Ahmed et al. (1995). In the household, which usually consume fish both fresh and processing forms. Ahrned, et al mentioned an average per capita fresh fish consumption of 43.5 kg per annum per household. Whereas, the average annual per capita consumption of processed fish amount to 14 kg per annum, which about one-third of total fresh fish consumption. Thus, per capita consumption of fish in both fresh and processed form amounts of 71 kg per annum. 1.2 Marine fisheries The marine fishing grounds in Cambodia are located on the eastern bank of the Gulf of Thailand. The average catch per unit is low compared to Thailand and Vietnam due to less fishing efforts and poor fishing technology. There are 4 provinces of marine fisheries in Cambodia, namely, Koh Kong, Sihanoukville, Kampot, and Krong Kep. They have a small coastline about 300 km along the Gulf of Thailand. Findings of marine fisheries research in Cambodian territorial seas from conducted by USSR scientists and nationals show that there were 435 fish species from 97 families in the offshore areas (from 20 m deep up to the outer border) with a total stock of 50,000 tons/year. The same source had identified seven shrimp species, one squid species and two cuttlefish species. The latter stock was estimated at about 1,300 tons/year. Previous studies on the fish composition of inshore catches have found 109 fin-fish species (Migallos, M.C. 1999) Aquaculture In Cambodia, there are three types of aquaculture, namely, cage and pen culture, pond culture, and aquaculture in the coastal areas. In the Great Lakes, Tonle Sap, and Mekong Rivers, cage and pen culture are the major systems of inland fish aquaculture. Normally, they raise giant snakhead and Pangasius species in the cage. Fishermen in the Great Lakes, Tonle Sap and the Mekong Rivers have been stored first of some fishes that surplus from demand of the market, during peak period, and some fish species that still small in bamboo pens (fishing lot) or in the cage under their floating house (Dai fishing). They keep them alive and raise them by feeding in order to fatten and sell them in the off-season. Cage and pen culture were common practices and have been developed by fishing communities as their secondary occupation. Pond culture has been developed and practiced in Cambodia, especially in the areas that located far from water body and fishing ground. In the 19605, pond culture of Chinese carps and Tilapia was attempted around Phnom Penh, the capital city and in some plantation and garden ponds. The proportion of aquaculture production is, however, still very small, about 5% in 1999 (DoF, 1999), due to the fact that supply of fish from capture fisheries is sufficient. Aquaculture in coastal areas in Cambodia is still under developing and has been setting up of several shrimp and fish farms. It will be expected to expense in that area in the future due to the high value of shrimp and the existence of export market. Among of 4 provinces of marine fisheries, cultivating shrimp is an important aquaculture activity in Koh Kong province. Other cultured species such as oyster and green mussel are not as significant in terms of both product and economy. The main shrimp species is P. monodo n. Production from this culture is slight contributing less than 1% of the total aquaculture production. The total product of fish culture in both freshwater and marine fisheries were 14,938 tons in year 1999 (DoF, 2000). Freshwater culture generated 13,775 tons (95%) and marine culture brought 725 tons (5%) Table 2. Number and area of cage, pen, and pond from 1997 to 1999 Pond Pen Cage Total

3 Page 3 of 13 Area (m2) Area (m2) Area (m2) Area(m2) Years No. No. No. No ,455 2,387, ,500 3, ,589 2,626, ,100 1,399, ,216 3,625 1,120 9,787 1,514, ,845 3,184, ,850 3, , ,682 3,459,519 Source: DoF. II. REVIEWING 2.1. Trade As fish and fish products are the most valuable source of animal protein for daily food in Cambodia as well as in the world, the domestic and international demand for fish commodity and fish product is high compared to other animal meat. The trade consists of the domestic trade and international trade. Domestic trade: The most important fisheries products are derived from inland fisheries. Marketing and distribution networks are well developed in inland fisheries. There are small and middle fish traders in the fisheries sector, normally the small trader collect fish from fishermen and sell to middle traders who distributed fish to different places through whole-salers. There is high domestic demand of fish commodity and fish products, which ranged from live to processing form such as fish pasts, fermented fish, dry salted fish, steam fish, smoked fish, and fishsauce etc. For the high-value species, which are usually sold to the traders for marketing in Phnom Penh or exporting. Domestic consumption of marine fisheries is small compared to inland fisheries and the marketing channels for those product is not well developed. Table 3. Consumer's price index for fish and fishery products in Cambodia, (Jan -Jun), in Riel 1996 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec USD Exchange rate Rice Rice Mud fish Mud fish Catch fish Smoked fish Fish paste Dried fish Fish sauce Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec USD Exchange rate

4 Page 4 of 13 Rice Rice Mud fish Mud fish Catch fish Smoked fish Fish paste Dried fish Fish sauce Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec USD Exchange rate Rice Rice Mud fish Mud fish Catch fish Smoked fish Fish paste Dried fish Fish sauce Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec USD Exchange rate Rice Rice Mud fish Mud fish Catch fish Smoked fish Fish paste Dried fish Fish sauce Jan Feb Mar Apr May Jun USD Exchange rate

5 Page 5 of 13 Rice Rice Mud fish Mud fish Catch fish Smoked fish Fish paste Dried fish Fish sauce Sour: Ministry of Agriculture, Forestry, and Fisheries International trade: Lack of complete and accurate data at the national level makes it difficult to quantify the fishery exports from Cambodia. The trade statistics published by the Ministry of Commerce reported only 517 tons of exports in 1998 at a value of USD 4.34 million. On the other hand, statistics prepared by the Department of Fisheries (DoF) under the Ministry of Agriculture, Forestry and Fisheries indicated tons of exports of fishery products in that year, which seems more realistic. Table 4. Exports of fisheries products by each province, from Provinces name Years (tons) Phnom Penh Kandal Prey Veng Takeo Kompong Cham Kratie Stung Treng Kompong Thom Kompong Chhnang Pursat Battambang BannteayMeanchey SiemReap Keb Kampot Sihaknouk Vill Koh Kong Company of fishery Total

6 Page 6 of 13 Source: DoF, The actual exports are much higher than these figures as collusion is a common practice at the border and the main export destinations are Thailand and Vietnam. Besides, products are exported to other Asian markets, namely Singapore, Malaysia, Hong Kong, China, Taiwan, Japan, as well as the USA and Australia. Cambodia does not have the European Union (E.U) Commission's approval to export fishery products to the E. U markets. Fish-sauce has been exported to Thailand form Battambang, Siem Reap, and Kampong Chhnang provinces and to Vietnam from Kampong Cham, Kandal, Takeo, Phnom Penh and Prey Veng provinces. Table 5 shows some trade statistics collected from importing countries. Table 5. Imports of Fishery products from Cambodia into Selected markets, 1998 and 1999 Importing country Quantity (tons) Value (US$) Hong Kong (1999) 648 6,137,820 Malaysia (1998) 173 2,632,849 Thailand (1999) 3,342 1,224,989 USA (1999) 280 1,063,464 Singapore (1999) 108 1,000 China (1998) 15 24,761 Source: INFOFfSH/National Statistics Marketing System Domestic Consumption: As mentioned in early part, there is a difference between the small, middle, and large-scale capture fisheries. The small-scale fisheries play an important role in Cambodia as many households are dependent on these fishing activities. The contribution of the fisheries to Cambodia as source of an important fish protein as well as livelihood to its largely subsistence oriented population can be over emphasized. The freshwater fishery is an important fish supply for domestic consumption and international market in both fresh and processing form. Marketing and distribution networks are well developed and run by private sectors and Fishery Company within the DoF (KAMFIMEX). Regarding to the marketing system of the fisheries sector, the main players comprise fishermen, landing place, wholesalers/middlemen, and retailers. The fishermen play role as workers, either part or full time involved in small or middle or large-scale fishing. The landing place is the place for fish landing, selling, and also the key contact place between lot owners, fishermen, middlemen, and buyers. Generally, both fishermen and all types of buyers gather here. The wholesalers/middlemen are the marketers and providers of the capital to most the fishermen in both middle and large-scale fishing. The retailers are selling fish directly to the consumers. Figure 1. Marketing channel for large-scale fisheries (fishing lot) in Cambodia Their relationship is summarized in Figure 1. This figure showed about the marketing system of large-scale fishing (known as fishing lot and Dai fishing) and fishermen households. In general, the lot or Dai owners sold fish catches directly to whole-salers at the fishing lot sites or at the landing place during peak period, whereas the whole-salers distributed those fishes to middlemen, which then sale to retailers or directly to consumers. Sometimes the whole seller is also directly sale fish catch directly to consumers, especially during low period. Ahrned et al., 1998 indicated that some of households bring their catch directly to landing place and sell it to whole-salers. Among the fishermen households, it is known that most of the households sell their fish catch

7 Page 7 of 13 directly to the consumers. In practice, the family-scale fishermen sell their catch to middlemen who collected fish at the fishing ground, in case the market is too far from their house. And some of them sell their catch directly to consumers at their place. International (Export) Markets Part of the export to other countries is taking place using refrigerated sea containers. This fish is transported to Cambodia's only seaport in Sihanoukville, from where it is sent to other countries. A small part of the export is consisting of transport by air. High value live fish or fresh fish for catering purposes is exported via Cambodia's in.t;mational airport in Phnom Penh. As mentioned earlier, three actual exports of marine and freshwater fisheries products to Thailand are much higher than the figures reported by Thai official sources. Besides the reported imports, a substantial quantity of marine fishery products, mainly high-value fin-fish, shrimp, and cephalopods, leaves the border unreported. According to the DoF office in Sihanoukville, only 20% of the exports of marine fishery products takes place officially, the remaining 80% are smuggled by sea to Thai traders who supply fuel and ice to Cambodian fishermen. The traders also buy freshwater fish and fishery products directly from landing places along the Great Lakes, Tonle Sap and Mekong rivers. A similar practice exists for exports to Vietnam where the main items are freshwater species. In addition, live catfish fingerlings are also exported to Vietnam. Prior to the economic recession in the region, exports to Malaysia and Singapore consisted of high-value live freshwater species, which were mainly devoted to seafood restaurants. For example, in 1998, the average price for fish exported to Malaysia was US$15/kg, there were mostly transported by air. For the Hong Kong market, frozen shrimp, squid, and octopus were the main items. However, some exports of high-value live fin-fish and shell-fish to Hong Kong were also transported by boat. Exports to the USA consisted of high-value shrimp and some freshwater species. According to fisheries company KAMFIMEX, the most lucrative markets for Cambodia's fisheries export, first are USA and Australia, second are China, Hong Kong, Singapore, and Malaysia, and third are Thailand and Vietnam Processing Recently, fisheries products from freshwater and marine capture fisheries had been made by traditional and modem technologies. The traditional processing form can be classified into three levels such as small, middle, and large-scale form, normally most of these products are supply for domestic consumption, whereas the modem processing supply for domestic market and the rest for exporting. According to DoF 2000, 33,751 tons of fish and fisheries products were processed in Cambodia and 18,140 tons (54%) were exported. The fisheries products that exported were dry salted fish, smoked fish, fish paste, fermented fish, fish with ice, fish, shrimp, crap, frozen squid, and dried fish etc. Traditional Processing The fisheries commodity produced by this type of processing, normally supply for Cambodian people residing both in the country and aboard. Small-scale processing is common practices for Cambodians people, who are very fond of processed fisheries products like fish paste, fish sauce, dried salted fish, and smoked fish etc. These traditional ways of processing fish well adapted to irregularity of the seasonal fish catch. Since in very short peak period of fish as being caught it is necessary to process fish quickly and in a basic way performable by a family and using hand labor only. For example, in the production fish-paste and fish-sauce, salt is added immediately which makes it possible to stock the fisheries products for a hole year, if the fish is wanted for processing then water and other ingredients are added and the fish is left to ferment, finally making fish-sauce. Though the final product is of low value, it is a way of handling the amount of fish during peak period. In general, small-scale fish processing is an activity of households who produce for family consumption purpose. Those are people living near the river, fishing lots, lakes, and also people live in up land areas. Middle-scale fish processing is usually owned by household, which operated by using family's labor, their relatives, and hired some laborers during peak period. The location is near the fishing lots, fishing villages and landing places. Generally, they involved in processing such as dry salted fish, smoke fish, Pha-ork (fermented fish), marm etc. Sine there is a market for sun dried fish processing for animal feed, this product is expended in this few years and export to Vietnam.

8 Page 8 of 13 Large-scale processing is generally operated by fisheries enterprise and fish source factory. They usually employed workers and most of them are female who are involved in the activities of transforming into dry salted fish products, ordinary fish pastes and boneless fish pastes (with high value), Pha-ork (fermented fish), and smoked fish (Touch, 1992). This processing form, normally occupy by private processor and fishermen themselves or their relatives, whereas the location is usually found in the fishing villages near by fishing lots, especially in the Great Lakes and the Tonle Sap river in Siemreap, Battambang, Kampong Chhnang, and Kampong Thorn provinces. These enterprises operated during open season at peak period of fish abundant from January- February and May-June, when volume of fish are caught by large and middle scale is estimated about hundred tons for supply to manufactory processing. Modern or Industrial Fish Processing In general, the fisheries products obtained from industrial fish processing are mainly for exporting to the international market. These enterprises have been owned by private companies and foreigners, which located in Phnom Penh and Sihanoukville. It is operated under supervision of the government, who is represented by fisheries company KAMFIMEX. There are four freezing processing enterprises or plants in Cambodia and these plants hold export permits. One plant is located in Phnom Penh and the other three are based in the port city of Sihanoukville. Two of the facilities are owned by one Cambodian firm, Lian Heng Trading Company. There are some small freezing facilities undertake contract processing mainly for traders, including KAMFIMEX, the state-owned trading company. 1. LIAN HENG Trading Company, Phnom Penh: This company operates two processing plants: one in Phnom Penh has 100% Cambodian investment whereas the latter has foreign investment from Hong Kong. Processing plant enter rise in Phnom Penh: They produce freshwater products and exported to the following international market: USA/Australia: Frozen fish and shrimp, smoked fish Singapore: Frozen freshwater fish Hong Kong: Frozen shrimp In 1999 the plant exported 300 tons of fishery products. They were not keen to reveal the value of these exports. The company is eager to expand its markets but lacks the necessary knowledge and initiatives from the government sector to promote fisheries trade. The 10% export duty in one fishery product is one of the hurdle that the company faces at present. The company is unable to export to the E. U due to the fact that Cambodia does not have the approval for fishery exports to that market area as yet. Processing plant enter rise in Sihanoukville: This enterprise has been leased out by the government to the company the visit to the plant revealed domination by the foreign investors (from Hong Kong and Taiwan) in processing and marketing of products. However, the existing processing facilities are extremely poor and unhygienic. There is no concept of a proper processing line. Products are processed under the supervision of Hong Kong counterparts who were tightlipped. In 1999 exported 390 tons with a value of US$ All products were exported to two respective buyers in Hong Kong and Taiwan there are frozen shrimp, frozen squid tubes, and stuffed crab meat. According to the company representative, price is fixed by the importers in Hong Kong. The average price of the products was quoted at US$ 0.80/kg, which is extremely low for shrimp and squid. 2. SUN W AH Fisheries (in Sihanoukville) The manager of SUN W AH reported that this enterprise was established in August 1996 whit 100% foreign investment by the large Hong Kong-basted conglomerate SUN W AH. It is a medium-scale operation with a daily capacity to process 10 tons of raw materials. In 1999 exported over 450 tons of processed products mainly to mother company in Hong Kong. Some of the products were then re-exported to other international market.

9 Page 9 of 13 SUN W AH's headquarter in Hong Kong is responsible for marketing its products. The main goods for exporting are shrimps, squids and some fin-fish. The company has had the privilege for 4 years of zero export duty effective since mid SUN W AH is the highest quality seafood processing plant in Cambodia. This company has been allowed by top government official to run the business successfully and has a long-term business interest in Cambodia, thus there is concern about the industry and its future prospects. However, one can fear that Cambodia is not getting the full benefit out of total exports due to the lack of control of the whole conditioning and marketing process. 2.4 Fish Production The Department of Fisheries (DoF) considers areas in 13 provinces (including Phnom Penh) important for commercial freshwater fish production and 4 provinces for marine fish production and hence, the annual catch by type of fisheries and aquaculture of fresh and marine culture were reported in Table 6. A total fish production of freshwater fisheries was 75,700 tons in fishing season and 71,000 tons in , which was decreasing compared to , whereas, marine and fish culture were increasing. However, the total fish production was also increasing (DoF, 1999). Recent survey revealed that total freshwater fish production in the hold country could be as high as 250, ,000 tons per year (Diep et al. 1998). Freshwater Capture Fisheries: The country's freshwaters are teeming with fish, as is expressed by Cambodian people saying that "where there is water, there is fish". This is illustrated by the fact that Cambodia's freshwater capture fisheries ranked fourth among the world's top in 1996 with annual production of 300, ,000 tons (FAO 1999). The monetary value of the catch at the landing site ranges from US$ l00 to US$ 200 million and increases in the marketing chain to between US$ 250 to US$ 500 million (Vanzalinge et al. 2000). Table 6. Distribution offish production and percentage in freshwater, marine, and aquaculture from ( ) Year Total fish Freshwater Marine Aquaculture Production Products (%) Products (%) Fishes (%) Shrimps (%) ,400 65, , , ,800 74, , , ,150 68, , , ,900 67, , , ,200 65, , , ,510 72, , , ,310 63, , , ,600 73, , , ,000 75, , , , , , , , Avg. 128,997 85, , , Source: Department of Fisheries, The Cambodian fishing methods are well developed over the centuries, and are well adjusted to the fish migration in the Tonle Sap. The bag nets used by the fisheries provide-during the peak period of full moon from January to March-every five minutes ranging from 500 to 1000 kg of fish. Fish production generated by Dai fisheries play an important role in annual fish supply as human food in both fresh and processing form, especially, for the rural people. In fishing season , the freshwater fish production including fish in the rice fields were 231,000 tons (81.31 %) of total fish production (Table 6). Marine Capture Fisheries:

10 Page 10 of 13 Marine fishing was slowly developed compared to freshwater fisheries. Technology applied by Cambodian fishermen before 1980 was very traditional. During Pol Pot or Khmer Rouge regime ( ), its activities was stopped due to the radical communism administration's reform. These activities re-started again in late 1979 with very few fishing boats, which developed very fast with 4,000 boats in 1990 (Touch, 1992). The average catch per year is low if compared to Thailand and Vietnam because the fishing methods remain traditional and that boats have low capacity that prevent from fishing in out-shore. Fish catches are allocated for domestic consumption, fish sauce factories, and processing enterprises. Total fish production in 1999 reported 38,100 tons with 13% of total catch in Cambodia. The average catch, since 1990 to 99 was 33,300 ton with 29% (Table 6) Fish commodity and fish products The commodity of fishery is the cheapest source of animal protein in Cambodia as well as in the world. At the present, the fishery resources have been under pressure due to the growing population and increasing demand in domestic and international market. This has been reflected on the consumption pattern of food fish in both developed and developing countries. For economic reason, fish have been classified at three groups, depending on the species, quality (freshness), and weighing or size in freshwater fish. First and second grade refers to a group of species comprising in large size fishes such as Osteochilus Hasselti (Kros), snake head (Ros), common sheetfish (Kes), giant snake-head (Chdour/Deap), greater bony lipped barb (Krum), yellow mystus (Chhlang) etc. Normally, the fish size ranged from lkg and above for the first grade and less than 1 kg for second grade with exception of some preferable species. Third grade refers to a group of species comprising small fishes such as Jullien Mud Carp (Riel), white Lady Carp (Lingh), Indian River Barb (Sroka Kdam), and other species etc. The fish species in this group have been used in fish processing, particularly into fish paste, fish-sauce, low quality fermented fish, and smoked fish, (Jica Interim Report 1997). Moreover, they are used for making animal feed such as sun-dried fish, especially during peak period (January-March). The official statistics of DoF classify fish commodity and fish products as follows: Freshwater fisheries commodity and fish products: Fish commodity: first grade fish second grade fish third grade fish freshwater eel kampeus [giant fresh water prawn (Macrobrachim)] fingerling baby crocodile (this is included into fisheries commodity) Fish products: fish paste fermented fish/steam fish dry salted fish smoked fish fish-sauce dried fish use as animal feed Marine fisheries commodity and fish products: Fish commodity: shrimp lobster crab squid, octopus, cuttle fish Molluso, shell first grade fish

11 Page of 13 second grade fish third grade fish Fish products: dry salted fish steamed fish dry shrimp, squid, slingay, and slingay processing shrimp crap meat salted crap trey bourb dry black sea cocumber Ki and fish meal fish-sauce The fish commodity and products in both freshwater and marine fisheries have been contributed incredibly in marketing activities. These products supply for not only domestic market but also supply for export Transaction point and their relevant importance In the freshwater fisheries sector, marketing and distribution channels are well developed and are largely in the hands of private sector and the state owned by KAMFIMEX. The marketing channel is from producer to consumer included domestic and export market. For transportation of fish from one province the other province, license from the Department of Fisheries is required. This license created high cost and complicated at the transaction point and also waste time of presenting the license to each post control along the route. Sometimes, this also affect to quality of live or fresh fish and also affect to the prices of fish. There is high marketing margin due to the cost of transportation and profitability required by the sellers. Moreover, sometimes the cost at landing place is also high due to lack of labor and hard working operation Transportation Transport form the source to the landing place There are different types of transportation of fish from fishing site to landing place or markets such as iced, salted, transported live in cage, and transported live in boat etc. Most of the lot or Dai owners bring fish to the landing place in cage or in boat. Previous research has been performed on different preservation techniques being used by fishermen households to keep the fish fresh before selling (Ahmed et al., 1998). The results in Table 7 have shown that, among of total samples (755) have 448 (58%) of the fishermen households transported fish alive in the boat. Transport from the landing place to the markets Observation during the visiting of different landing places showed that there are different ways of transport that are being used by different types of buyers. Small and middle scale buyers and retailers mostly transport the fish on ice in a basket on the back of a motorbike, or in water in (the truck) a car. By using ice and water, the fish is kept fresh or alive. Also some buyers come by boat to the landing place and use their boat to transport fish from the landing place; Table 7. Preservation techniques being used by fishermen households before selling Type of Transportation Fishermen Households Numbers Percentage (%) Iced Saltes Transported live in cage Transported live in boat Other

12 Page 12 of 13 Total Exporting transport In Cambodia, fish export is made possible through different means. The fish's transport to the neighboring countries is made by road. Trucks and cars, with the fish being packed frequently in tanks filled with water and ice are being used for this purpose. Also the boat is being used sometimes, mostly to keep the fish or the fingerlings alive in cages. Freshwater: usually, fish transportation for inland is not different from marine are transportation by boat, bike, car, ship and air plain for export to outside country, while export to in and outside high quality fish is thoroughly packaged whit ice in the basket or processed in freezing plant The Technical, Social and Economic Environment Technical environment The technical of trade, marketing, and processing in both freshwater and marine fisheries are under developing compared to the developed countries. Fish traders can perform many roles in marketing fish. One middleman can have one or more market functions within the market, e.g., one middleman can buy fish from fishermen, lot/dai owner then sell them to other middlemen, retailers or directly to consumers. Normally, retailers dominate the business of selling fish at all market levels. In practices, fish traders have their place/house where located in or near by fishing village/commune to collect fish from middlemen and then bring them to sell in other provinces or export. It depends on fish species, demand, quality, and price in the market. The fish traders also play an important role to supply fish for processor and fish-sauce factory. Fish marketing is handled in traditional form such as the ways of transportation. In general, most of the fishes are low quality at the market level, due to very poor post harvest handling, limited or no access to ice and lack of infra-structural facilities. A survey at the landing place of fish whole-sale in Phnom Penh revealed that nearly 50% of fresh fish arriving in that place were not fresh for human consumption. Spoiled fish are then used for processing as dry salted fish and fish- sauce for domestic consumption. Fish processing in Cambodia could be divided into two processing types, namely traditional and modern or industrial processing. Due to Cambodia is rich in freshwater fisheries resources and the preference of the local people for the inland fish, big quantities of these species are processed for human and animal consumption. This kind of processing is used for food preservation in a year, especially during low period or wet season. These products include fish paste, fermented fish, dry salted fish, dried fish, and smoke fish. In addition, a significant low-grade quality of fish is used for making fermented fish and fish -sauce. In the inland fisheries, processing is taken on a seasonal basis, especially during peak period in January-February and in May-June. Family/small scale operators process along the shoreline of the Great Lakes, the Tonle Sap river, and along bank of the Mekong river, whereas, middle and large scale processing is undertaken by fishing lot operators. At this level, majority of employees is women. Modern or industrial fish processing is mainly for exports. These products are derived from both freshwater and marine fisheries, mostly freezing, which consists of frozen shrimp, fish, and squid tubes, and stuffed crabs meat from marine and fresh/chilled fish and fish meats from freshwater fish. The facilities are located in Phnom Penh and Sihanoukville. Socio-economic Environment According to previous study, about 4.19 million people (over 40% of the total population) live around the Great Lakes, the Tonle Sap and Mekong Rivers. Their livelihood is dependant on agriculture, fishing, and relating fishing activities (such as fish trader, fish culture, fish processing etc.). The average size of the households was six persons with low education: about 80% was illiterate or could only read (Ahmed, et al. 1998). For most of them, the living condition was generally poor compared to people who live in the urban areas. Regarding middle traders, middle and large scale processing are ranged from fair to rich condition due to the availability of private capital. In term of economic situation, Cambodia is going better compared to the last 10 years, due to the political stability that could attracts more investors and availability of aid and international assistance, Post harvest handling and utilization of fisheries resources is very poor, limited or no access to ice and lack of infrastructural facilities resulted in a large quantity of fish under-utilized. And also due to lack of operating capital,

13 Page 13 of 13 poor infra-structure, and inadequate processing facilities - that have been the main reasons for losing big quantity of marine fish landing in Cambodia - fish is brought and sold to Thailand or Vietnam traders. III. CONCLUSION Fish trader, marketing, and processing are playing an important role in fisheries sector in Cambodia. Fish and fisheries products are mainly derived from inland and marine capture fisheries. Fish aquaculture activities are currently taking on a limited scale and play less important role in the national food security because Cambodian people have less preference on culture species. Shrimp farming is under- developed especially for small-scale marine cage culture of high value species, which is for export markets in Southeast Asia and the Far East. Middle trader usually collected fish from fishermen then distribution to the market and consumers depend on demand for fish. Fish species with high values are usually brought for sale alive and fresh forms into the markets in Phnom Penh and for export. Most of these fish species are transported alive in boat or in cages and also in the truck with ices. Thus, from this points we can see that fish traders is still operated in traditional and habitual way and cause of the fisheries products have low quality and low price. Marketing and distribution channels in the inland fisheries sector are well developed in Cambodia and owned by private sector and the company of fisheries (KAFIMEX). Marine fish species for domestic consumption supply for people living in the coastal areas. Hence, the domestic markets for marine products are small and marking channels for marine product is small and not developed. Infrastructure facilities at post harvest or landing places, processing sites, and materials or equipment are still poor and low technology. Department of Fisheries data shows an increasing trend in fish and fisheries products exported since 1992 to 1999 in both inland and marine fisheries. Many of inland fish commodities have been exported to Thailand and Vietnam through both legal and illegal forms and also exported to some Asian countries, namely Malaysia, Singapore, Hong Kong, Taiwan, Australia, Japan and USA. Cambodia could not export fisheries products to the Europe Union due to lack of infrastructure and quality management level. Presently have limited the export potential into the international market due to lack of awareness/knowledge about the export potential for fisheries products in both government and private agency levels.