David Eugui - Using Technology to Address Supply Chain Chall

Using technology to address the supply chain challenges – Responsive and Resilient Supply Chains The case of fisheries

David Vivas Eugui, Legal Officer United Nations Conference on Trade and Development

1

Trade in fisheries products

Global Marine fisheries/Aquaculture export composition by subsector, 2018 ($ billion)

Global Seafood processing export composition by subsector 2018 ($ billion)

3.2

0.4

22.7

9.4

Finfish

9.3

Prepared and preserved fish, crustaceans, etc. Flours, meals and pellets, of fish or crustaceans, etc Fats and oils of fish or marine mammals

1.5

Crustacean

2018 ($ 75 Billion)

2018 ($ 55 Billion)

9.9

Molluscs

Processed meals and dishes

Aquatic invertebrates other than crustaceans

52.3

Other living marine products*

21.5

Source:

UNCTAD’s

calculation based on

UNCTADStat data (2020).

Trade flows on fisheries trade in the OECS (1)

List of exporters for the selected product in 2019

Total exports of fisheries products by the OECS was about USD 13.5 million in 2019

Product : HS 03 Fish and crustaceans, molluscs and other aquatic invertebrates

Average distance of importing countries (km)

Value exported in 2019 (USD thousand)

Trade balance in 2019 (USD thousand)

Annual growth in value between 2018-2019 (%)

Share in world exports (%)

World

123'407'070

-1'239'973

-1

100

5387

Caribbean Community (CARICOM)

358'846

169'337

0.3

Grenada

9'331

7'441

4

0

4197

Saint Vincent and the Grenadines

2'896

1'263

17

0

2014

Antigua and Barbuda

1'096

-5'966

45

0

13580

Saint Kitts and Nevis

68

-2'578

-72

0

3820

Dominica

16

-1'228

-77

0

3416

Saint Lucia

4

-5'082

135

0

92

Source: ITC (UNCTAD/WTO) Trade Map 2020

Trade flows on fisheries trade in the OECS (2)

List of exporters for the selected products in 2019 Product : 1604 Prepared or preserved fish; caviar and caviar substitutes prepared from fish eggs

Trade balance in 2019 (USD thousand)

Quantity exported in 2019

Annual growth in value between 2018- 2019 (%)

Average distance of importing countries (km)

Value exported in 2019 (USD thousand)

Quantity Unit No quantity

World

18'053'176

94'5285

0

3

5498

Caribbean Community (CARICOM)

1'112

-87'293

Saint Lucia

4

-3822

1 Tons

16

92

Product : 1605 Crustaceans, molluscs and other aquatic invertebrates, prepared or preserved (excluding smoked) Value exported in

Trade balance in 2019 (USD thousand)

Quantity exported in 2019

Average distance of importing countries (km)

Quanti ty Unit

Annual growth in value between 2018-2019 (%)

2019 (USD thousand)

World

11'404'676

2'319'988 1217834 Tons

-10

6183

Caribbean Community (CARICOM) Saint Vincent and the Grenadines

868

-16'800

34

24

5 Tons

411

389

A simplified supply side model of the fisheries value chain & technological requirements

A simplified model of the fisheries value chain

Source: UNCTAD, 2017

A simplified demand side model for fisheries value chain

It has been predicted that the global demand for fish for human consumption will increase by more than 7% annually over the next 10 years (OECD-FAO 2019)

North America & Europe are the biggest importers of fish and seafood products

Source: Francisco Velazco, 2018

Fisheries value chains are evolving…

Challenges • More monitoring: due to IUU fishing and human rights violations • More regulation: fisheries products face 2.5 more times more non-tariff measures that manufacture products (UNCTAD 2016) • More capital and technology intensive and less human resource intensive activity: this situation is applicable to all agriculture and fisheries value chains • Increased checks all over the value chain for multiple purposes: environment (climate), health, and human and social rights

Opportunities • Increase demand for fisheries products, specially for fresh produce

• Many of the technologies needed may already be matured and transfer partially goes with the goods & equipment • Increase use of digital technologies can enable traceability, reduce production costs & the role of intermediaries • Increase consumer awareness and certification for sustainably harvested and produced products and wiliness to prime price • Prices for fresh fish are stable with an slight upward tendency (except during 2020) as there is little space to growth with the exception of aquaculture • Potential for new Blue BioTrade sectors: bioprospecting, ornamental fish and links to sport fishing (catch and release) & eco-tourism

EMERGING TECHNOLOGIES IN THE FISHERIES VALUE CHAIN

Harvesting Collaborative (rely on the willingness)

• Vessel monitoring systems (VMS) (wide spread in industrial fishing) • Automatic identification systems (AIS) (via IMO Unique Vessel Identifier) • Sustainble gear (e.g. biodegradable nets & FADs) (e.g. tuna fishing in Ecuador) • Ultra-selective fishing gear (e.g. green stick & trawls separators panels) (E.g. long line fishing in Costa Rica) • Smart phone data entry - small scale fishers (e.g. AST iCatch, OurFish & Mfish) • New vessel designs & low emissions (LGN and hybrid engines in Germany & the Netherlands) • Surveillance by radar, satellites & big data (e.g. Global Fishing Watch ) • E-catch certificates & blockchain systems (e.g. EU catch certificate) • Cameras on board (e.g. New Zealand) • E-Fisheries Vessel Monitoring Centre (e.g. Belize for high seas fleet) Source: UNCTAD compilation, 2021

Harvesting Non collaborative (do not rely on wiliness)

EMERGING TECHNOLOGIES IN THE FISHERIES VALUE CHAIN

Landing & cleaning

• New COVID-19, viruses and bacteria testing for fish boxes (e.g. Korea) • Resilient fishing port infrastructure (Blue ports such as Vigo, Spain) • Water purifiers, cold rooms, liquid ice, slurry, stream ice or ultra cold dry ice (e.g. Europeche) • Low energy pre-cooking & sterilisation techniques (e.g. Spain and Italy) • Poaches packaging (e.g. CEIPA, Ecuador) • Zero-waste systems (e.g. smart discard & utilisation of low value parts for fish meal or fertilisers in Peru & Saint Lucia) • New innovating products (e.g. Seaweed bio pencils, Peru) • Trade facilitation processing (e.g. COMESA, simplified trade regime for fish) • High definition brands (QR and bar codes with detailed product information) (Rio Mare QR, Italy & Ecuador CEIPA) • E-marketing, e-auctions and e-payments (e.g. Spain & Mexico) Monthly fish trade data on real time (e.g. Vanuatu Office of Statistics) Source: UNCTAD compilation, 2021

Processing

Services & marketing

Key host and home country determinants for transfer fishing-related technologies

• General:

• Market size • Natural endowments (stocks availability) • Macro economic and fiscal policies • Level of education and training • Adequate regulatory and business environment for FDI, IP and know how licensing • Specific: • Existence of relevant physical and soft infrastructure • Ability of domestic crews/processors & exporters to apply & absorb foreign technologies • Existence of a sound testing and lab facilities • Internal R&D capacity to adapt and improve on foreign technologies and to develop local innovations.

Key incentives to enable transfer fishing-related technologies

• Host country incentives • Fiscal incentives + shift in subsidies toward sustainable use and value addition (e.g., from fuel to equipment to fight IUU fishing) • Specialized training on sustainable fishing and aquaculture, specially for the small scale • Enable use of diverse categories Intellectual property by SMES (utility models, industrial designs, copyright protection for software) • Investment promotion for green/clean technologies • Home country incentives • Fiscal benefits to firms transferring technologies & hiring local scientific and technical staff via FDI or participation in segments of the value chain • Importers and sourcing companies can support the compliance of relevant regulation and standards by suppliers (e.g., Blue BioTrade) • Enable joint ventures for capture and production of sustainable goods • Enable licensing of public entities for green and blue technologies (positive global externalities)