Fishcoin at the United Nations Food & Agriculture Organization International Seminar on Sustainable Value Chain: Traceability
Shanghai Oceans University, 28–30 November 2018
At the end of 2018 Fishcoin was honoured to be invited to present at the United Nations Food & Agriculture Organization International Seminar on Sustainable Value Chains and Traceability with a group of representatives working in different departments of national governments dealing with trade and traceability in fish and fishery products. The following is a brief summary of the seminar, the recommendations, and an exert from the Fishcoin presentation. The expanded notes from the meeting together with the recommendations of the participants are also provided.
The participants of the seminar reminded the audience of the importance of traceability to combat IUU fishing, address mislabelling and fraud, and to promote sustainability and bring social responsibility to seafood supply chains.
Despite efforts to harmonise systems and the introduction of initiatives such as the FAO’s Port State Measures Agreement, the EU’s IUU regulation, the US Seafood Import Monitoring Program (SIMP), there were still many constraints including a lack of strong regulatory frameworks in developing nations, a lack of collaboration within supply chains, and the cost barriers to set-up and maintain traceability systems in developing nations who have substantially higher numbers of small scale and artisanal fishers.
It is to this latter point that the Fishcoin presentation was particularly relevant. Below is a slide from the presentation which highlights that access is not just connectivity to telecommunications, which is a technological accessibility challenge, but it is also about economic accessibility — the ability to afford and be able to pay for a system. This could be considered a capacity issue, but capacity includes literacy — the ability to read and write — and digital literacy - the ability to use a technology.
The accessibility challenges we have been addressing through our mFish initiative — a browser based application that is not only free to access but free to use in more than 30 countries and in 7 languages. However, even if the fisher or fish farmer has the technological and economic accessibility, or even the capacity to pay for a traceability system, what is the incentive to use or pay for one? What is his or her Return On Investment — for their time or money? What should he or she pay? What is fair? How do you price a system fairly? Who benefits and how is the cost and the benefit equitably distributed?
Where mFish is working on the accessibility challenges, Fishcoin is looking to address the incentive issue. Whereby Fishcoin tokens can be a currency for data — the key data elements for traceability. Where the tokens can be bought by the importers who need traceability to import seafood, and who can then provide them to those upstream in supply chains as a reward for sharing data and having it put on the blockchain. A user-based system that allows the market to determine the value and price of the data and that identifies, verifies and rewards those legal fishers and farmers that are sustainable and responsible. Data that can help governments form better management policies, and give fisherman ownership of stocks so they are incentivised to not only protect stocks but to grow them. This is the journey we are on. Click here to learn more.
Notes of Meeting & Recommendations
The Seminar was held at Shanghai Oceans University and began with Prof. Jiannong Wu, Deputy Secretary of the University, Director of Aquatic Produce, Mr Jianmin Zho, and Mr John Ryder, Head of Products, Trade and Marketing Branch (FIAM) of the FAO underlining the importance of the topic, the need to strengthen capacities to combat Illegal, unreported, and unregulated (IUU) fishing, deliver on responsible fishing practices, and, finally, and to the point of the seminar, to implement traceability.
Participants were introduced to the ASEAN Catch Documentation Scheme, the Seafood Alliance for Legality and Traceability (SALT), and the Global Dialogue on Seafood Traceability (GDST) initiatives — their objectives, scopes and actions to promote sustainability, legality and traceability of seafood.
Representatives from Chile, China, Oman, Senegal, Sri Lanka, and Thailand then spoke of their national experiences with regards to the status and constraints in achieving traceability through seafood supply chains. Participants reiterated that the sustainability of marine resources is a key aspect of food security and recognised the importance of supply chain traceability for market access and its vital role in addressing issues related to illegal fishing, mislabeling and social responsibility.
Country presentations highlighted that for traceability systems to work efficiently, collaboration and involvement of supply chain stakeholders is crucial to ensure compliance. Of note was also the desired expansion of the roles and functions of traceability to cover social sustainability which has become a major concern in fisheries due to labour rights violations and human rights abuses.
In addition, many presentations by country delegates indicated a positive trend towards implementation and harmonisation of traceability systems. However, it was emphasised that the set-up and maintenance of such systems might prove too costly - especially for developing countries with significant small-scale or artisanal fisheries.
Participants supported the continuous work and engagement by FAO on issues for combatting IUU fishing, particularly the implementation by countries of the FAO Agreement on Port State Measures (PSMA). Participants also highlighted the Voluntary Guidelines on Catch Documentation Schemes and other relevant instruments are powerful tools to help to eliminate IUU fishing.
Presentations and discussions highlighted the key foundations of traceability (inclusivity, impermeability and verifiability), and the need for strong regulatory frameworks to deliver these functions. It was also noted that traceability systems implementation was catalysed by market access requirements, notably the EC regulations for food safety, the EU IUU regulation, the US Seafood Import Monitoring Program (SIMP), as well as those required by private sector actors.
However when traceability systems exist, presentations highlighted that there is often little interaction between the health Competent Authority and the fisheries Competent Authority in terms of their set-up and assessment. In such cases, harmonisation of actions and policies of the different official bodies having responsibilities regarding seafood traceability systems is important.
Finally, the important role of the FAO to harmonise initiatives and in capacity building activities was highlighted, and action recommendations from this are detailed below:
Recommendation 1
Develop a guidance to member states on national seafood traceability regulatory framework. The guidance document should include a list of minimum requirements for traceability along the seafood value chain. Data verification to address issues related to transparency, data recording and verification as well as to support interoperability, should also be included.
Such a document will support the development, enforcement and effective verification of traceability in the seafood supply chain. It will also help countries with existing traceability systems evaluate the efficacy of their systems and identify gaps. While initiatives such as SALT and the GDST are developing industry-initiated lists of Key Data Elements (KDEs) and framework for their verification, it was recommended that the FAO works toward setting up a list of minimum requirements for seafood traceability with clearly defined authoritative sources of KDEs and supporting verification mechanisms. The minimum requirements could build on the Universally Unique Identifier (UUID) developed by FAO and its partners within the framework of the Blue BRIDGE Project;
Recommendation 2:
Identify, document and disseminate benefits and incentives for the adoption of traceability systems in the seafood supply chain. This could be in the form of a study highlighting the importance of traceability for market access, insurance premium, claim of ownership and promotion of products and country’s image. The proposed study will also build on successful business cases from both developed and developing countries;
Recommendation 3:
FAO should play a more proactive role in coordinating global seafood traceability work, and contributing to multiple stakeholder initiatives constructively. The recommendation includes the possibility of FAO joining the GDST advisory group.
Recommendation 4:
FAO should continue to provide technical capacity building support to member states in establishing or strengthening national traceability systems, whether for combating IUU fishing or food safety purposes.
The Fishcoin Team looks forward to further collaboration with the FAO for the critical mission of solving global traceability challenges in seafood supply chains, particularly for the “other 90%” of small scale seafood producers in developing nations.
Interested in becoming a Fishcoin or Seafood Innovation Project Community partner?
Companies and organisations in the seafood industry interested in becoming rollout partners in the Fishcoin ecosystem or who just want to know more about joining the Fishcoin community of partners please contact our team.
