Supply chains are rarely as they are intended, linear and simple. Instead they are complex and intricate systems that often leave companies vulnerable to risk. In the case of the seafood industry, supply chains can be even more convoluted than they appear which can be either due to companies lacking visibility or knowingly sacrificing transparency for returns. In the latter case, this short-sighted mentality will only lead to short term gains, whereas companies that make long-term investments, push for transparency and create strategic collaborations with a wide range of stakeholders will begin to understand that traceability is fundamentally linked to sustainability, growth, protecting brand reputation and building consumer trust. Seafood in Asia: Seafood is one of the most highly traded commodities in the world and has doubled in trade volume in just over a decade. Due to this, there have been evident challenges in the industry as networks of producers, processors and wholesalers try to sell hundreds of commercially viable species of fish, molluscs and crustaceans to domestic and international markets. The liberalisation of the seafood industry opened up significant opportunities for emerging economies in the Asia-Pacific. Today, countries within this region account for over 55% of the world’s seafood trade and 65% of the world’s seafood consumption. Five of the top ten exporting countries by value are also from Asia China, Thailand, Vietnam, India and Indonesia. Despite clear economic benefits, these countries along with the companies operating within their borders have become increasingly susceptible to inherent risks associated to fast paced growth, low labour costs, poor regulatory environments and lack of awareness. Driving demand: High demand from western markets such as the United States, the United Kingdom, European Union and Japan once clearly dominated global seafood imports, however with a 70% increase in demand from countries in the Asia-Pacific, consumption rates and trade routes are beginning to shift. With Asian retailers and consumers lacking awareness of the impacts of indecent labour conditions, over extraction and unsustainable fishing methods, the seafood sector in Asia will go uncontested unless efforts are made in Asia by Asian companies, who can address these problems proactively. Setting the standard: With the recent proliferation of certifications and standards schemes in the seafood sector, producers, processors and seafood distribution companies have become confused by an oversaturated market led by the Marine Stewardship Council, Aquaculture Stewardship Council, Friends of the Sea, Global G.A.P, and Global Aquaculture Alliance all demanding compliance. For producers and particularly small holder farmers these schemes and standards can become an arduous and costly task. Without stakeholders working together across the supply chain to direct and advocate for clarity, issues from the grassroots level will inevitably affect the retailers and consumers at the end. Leading the change: Now is the time for efforts to be made by all stakeholders, to find innovative solutions to increasingly complex supply chain challenges. * As consumption levels change in Asia, intensive campaigning towards consumers and industries such as hotels, retailers and airlines are needed to build awareness and knowledge. * Industry has the ability to support suppliers in achieving international certifications and standards. This will include supporting smallholder farmers and particularly women as significant contributors during the producing and processing phases of the seafood supply chain. * Develop multi-stakeholder initiatives such as the Shrimp Sustainable Supply Chain Task Force, which need to be scaled up and replicated for there to be greater platforms for industry, government and civil society to discuss pertinent issues. * Multi-national and large domestic companies have the opportunity to differentiate themselves as leaders and support small and medium enterprises in their commitments to sustainability and transparency. Learning from others: Key initiatives such as Oxfam’s Gender Transformative and Responsible Agribusiness Investments in Southeast Asia or known as GRAISEA can provide support. As a partnership-led programme, their objective is to improve and empower small holder farmers, particularly women to remove barriers and influence industry to make changes at the producer and processor level. The Sustainable Fisheries Partnership (SFP) is a similar example of an organisation which has been conducting work in the form of Fishery Improvement Projects (FIPs) and Aquaculture Improvement Projects (AIPs). These projects support suppliers at the community level to improve production and support farmers in adhering to stringent criteria set by industry partners. FIPs and AIPs are being replicated and scaled up across Asia and around the world. Though relatively small, the SFP has supported the mobilisation of commercial players such as North Atlantic Inc., Anova Food LLC, SUPERVALU Inc., Hyatt Corporation and The Kroger Co. to improve their supply chains at the fishery level, enhance visibility and develop work plans with farmers with measureable results. Best practice does not have to come from the same industry, the seafood sector and its players can learn from others. Multi-stakeholder initiatives such as the Roundtable on Sustainable Palm Oil (RSPO) or the Better Cotton Initiative (BCI) can be used by seafood companies to develop their own initiatives and derive codes of conduct, direct members and develop principles, criteria and indicators that result in more sustainable, ethical and transparent production and processing. The most important point is that only through strategic collaboration and cross-sector communication can changes be made and clarity restored.
CSR Asia.