Fisheries and Aquaculture Certification Contents Chapter 1. Why study fisheries and aquaculture certification? Fisheries and Aquaculture Chapter 2. Economics of certification schemes Chapter 3. Private certification: Main issues Certification Chapter 4. Policy observations on certification in fisheries and aquaculture Further reading Fisheries: While Stocks Last? (2010) Advancing the Aquaculture Agenda: Workshop Proceedings (2010) Globalisation in Fisheries and Aquaculture: Opportunities and Challenges (2010) F is h e r ie s a n d A q u a c u lt u r e C e Please cite this publication as: rt OECD (2011), Fisheries and Aquaculture Certification, OECD Publishing. ifi c a http://dx.doi.org/10.1787/9789264119680-en t io This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and n statistical databases. Visit www.oecd-ilibrary.org, and do not hesitate to contact us for more information. ISBN 978-92-64-11961-1 -:HSTCQE=VV^[VV: 53 2011 02 1 P Fisheries and Aquaculture Certification This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries. Please cite this publication as: OECD (2011), Fisheries and Aquaculture Certification, OECD Publishing. http://dx.doi.org/10.1787/9789264119680-en ISBN 978-92-64-11961-1 (print) ISBN 978-92-64-11968-0 (PDF) Photo credits: Cover © Shutterstock/Galina Shpak Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda. © OECD 2011 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to [email protected] Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at [email protected] or the Centre français d’exploitation du droit de copie (CFC) at [email protected]. 3 FOREWORD – Foreword This report considers the growing trend in information requirements for seafood products in general with a focus on the distinct sustainability features of wild capture fisheries and aquaculture. Concerns about sustainability and the effectiveness of fisheries management have resulted in demand from NGOs, retailers and consumers for assurances that the food they purchase has been sustainably produced. This has led to the development and implementation of a number of primarily private initiatives that have established eco-labels and certification schemes that claim to provide credible information to the consumer. The proliferation of different eco-labels in the marketplace has led to concerns regarding consumer confusion, which weakens the effectiveness of the labelling effort. It also risks segmenting markets according to where different labels are in use. This raises concerns that retailers may “choice edit” information available for consumers in a manner that is most profitable for them but may not serve the public interest and policy objectives of governments. Moreover, multiple incompatible certification systems and labels may create confusion, may prevent a level playing field for fishers and aquaculture producers, and may act as a barrier to trade. As certification and eco-labels become more prominent in the marketplace, finding the appropriate role for governments in their design and implementation has become more important. Even more so as NGOs and other groups see labels as an opportunity to promote their own agendas and seek to expand and influence the content of food labels. This work by the OECD’s Fisheries Committee report focuses on private eco-labelling and analyses the economics of certification schemes, discusses key issues at the interface between public authorities, private labelling schemes, business operators and consumers. It is in part based on the outcome of a Round Table on Eco-labelling and Certification in the Fisheries Sector. At the invitation of the Dutch FISHERIES AND AQUACULTURE CERTIFICATION © OECD 2011 4 – ACKNOWLEDGEMENTS Ministry of Agriculture, Nature and Food Quality, the Round Table was held in The Hague, the Netherlands, on 22-23 April 2009 and brought together representatives from the fishing industry (producers, processors, buyers, retailers), NGOs, eco-labelling schemes, certification bodies, academia, governments, and relevant international organisations (see www.oecd.org/dataoecd/17/43/43356890.pdf). ACKNOWLEDGEMENTS OECD staff that participated in the development of this work include Nicole Franz, Roger Martini, Dag-Erling Stai, Stefanie Milowski, Carl-Christian Schmidt and Michèle Patterson. FISHERIES AND AQUACULTURE CERTIFICATION © OECD 2011 5 TABLE OF CONTENTS – Table of contents Executive summary .................................................................................................... 7 Chapter 1 Why study fisheries and aquaculture certification? ............................... 11 Origin and scope ................................................................................................. 12 Approach ............................................................................................................ 13 Some key concepts ............................................................................................. 14 References .......................................................................................................... 17 Chapter 2 Economics of certification schemes ....................................................... 19 Introduction ........................................................................................................ 20 Privately initiated certification schemes: Eco-labelling ..................................... 27 Government-initiated certification schemes ....................................................... 55 References .......................................................................................................... 67 Chapter 3 Private certification: Main issues ........................................................... 71 The credibility of private certification schemes ................................................. 72 Policy coherence for development: Market access implications of private certification .................................................................... 83 References .......................................................................................................... 85 Chapter 4 Policy observations on certification in fisheries and aquaculture .......... 87 References .......................................................................................................... 92 AnnexA Key definitions ........................................................................................ 93 Tables Table 2.1. Categorisation of certification schemes ....................................27 Table 2.2. Stakeholder groups: Eco-labelling ............................................37 Table 3.1. International reference framework for fisheries and aquaculture certification scheme development .........................74 FISHERIES AND AQUACULTURE CERTIFICATION © OECD 2011 6 – TABLE OF CONTENTS Figures Figure 1.1. Organising framework for certification initiatives ...................13 Figure 1.2. Relationships between the key components related to certification ...........................................................................15 Figure 2.1. Key stakeholder groups in fisheries and aquaculture certification ...............................................................................22 Figure 2.2. Overview of common certification scheme dimensions ................................................................................23 Figure 2.3. Volume of MSC certified fisheries ...........................................29 Figure 2.4. Volume of FoS certified fisheries .............................................29 Figure 2.5. Actor-linkage map: Eco-labelling in fisheries ..........................31 Figure 2.6. Competitive market with certification ......................................39 Figure 2.7. Multiple markets and certification ............................................40 Figure 2.8. Schematic representation of costs and benefits of certification to different stakeholders .......................................42 Figure 2.9. Policy options for eco-labelling ................................................45 Figure 2.10. Elements of an “aspirational” governance regime for sustainable fisheries and aquaculture ........................................50 Figure 2.11. Actor-linkage map: Food safety ...............................................56 Figure 3.1. Private and public roles in certification implementation ..........77 Figure 3.2. “Ideal” model of private certification schemes .........................83 Boxes Box 2.1. Attribute space for fisheries products .......................................26 Box 2.2. Carbon footprint, food miles, water foot print, life cycle assessment: The next certification frontier? .............................35 Box 2.3. ISEAL Alliance Code of Good Practice for Setting Social and Environmental Standards ...................................................52 Box 2.4. Food safety regulation for fishery products in selected OECD countries ........................................................................58 Box 2.5. Country of origin labelling .......................................................65 Box 3.1. The International Chamber of Commerce and its International Code of Environmental Advertising ....................80 Box 3.2. Traceability ...............................................................................82 FISHERIES AND AQUACULTURE CERTIFICATION © OECD 2011 7 EXECUTIVE SUMMARY – Executive summary Concerns about sustainability and the effectiveness of fisheries management on the part of the public have resulted in demand from NGOs, retailers and consumers for assurances that the food they purchase has been sustainably produced. This has led to a number of private entities responding to this demand by establishing eco-labels and certification schemes that claim to provide credible information to the consumer. These labels intend to serve the interest of fishers and processors who need to transmit positive information to the consumer to maintain their markets, and serve consumers by providing information not elsewhere available. As certification and eco-labels become more prominent in the marketplace, finding the appropriate role for governments in their design and implementation has gained in importance. Even more so as NGOs and other groups see labels as an opportunity to promote their own agendas and seek to expand and influence the content of food labels. This report is a key component of the OECD Fisheries Committee’s work under the current Work Programme. It considers the growing trend in information requirements for seafood products in general and in particular for the distinct sustainability features of wild capture fisheries and aquaculture. This work refers primarily to privately driven certification schemes which have become an established feature of the market for eco- labels in fisheries and aquaculture. The report focuses on private eco- labelling, analyses the economics of certification schemes and discusses key issues at the interface between public authorities, private labelling schemes, business operators and consumers. Finally, main findings and messages to policy makers are addressed. The drivers of private certification are complex. For many, there is an expectation of a price premium for certified products, but this rarely materialises. Retailers are a major driving force behind certification, but this may be part of a greater marketing strategy such that retailers are not seeking higher prices for fish products, but simply more customers in their stores. The industry seems to bear the cost of certification without an obvious benefit in the marketplace. This may be because they pursue FISHERIES AND AQUACULTURE CERTIFICATION © OECD 2011 8 – EXECUTIVE SUMMARY certification to maintain rather than increase market share or price. At the same time, governments often step in to help with the costs of certification, reducing the need for a premium in the market to recoup these additional costs. For consumers, the bottom line is to be assured that the choices they make in the marketplace are responsible and sustainable. While the impact of certification on sustainability remains subject to debate, if certification results in healthier stocks, everyone benefits. Primary producers see reduced production costs due to increased catchability. The industry benefits from reduced resource and management risk, and society as a whole benefits from moving to a greener growth path. These benefits can be very large relative to revenue in any season, and do not depend on receiving a higher price for certified products. Certification can also contribute to improved traceability of products, which is increasingly seen as a way to ensure public health, promote efficiency, and deter Illegal Unreported Unregulated (IUU) trade. The proliferation of different eco-labels in the marketplace has led to concerns regarding consumer confusion, which weakens the effectiveness of the labelling effort. It also risks segmenting markets according to where different labels are in use. This raises concerns that retailers may “choice edit” what is available for consumers in a manner that is most profitable for them but may not serve the public interest and the policy objectives of member countries. Moreover, multiple and incompatible certification systems and labels may prevent a level playing field for fishers and aquaculture producers and act as a barrier to trade. These issues demonstrate that that improved co-ordination both domestically and internationally can increase the benefits that may arise from eco-labels to both consumers and fishers, and governments may be the only actors who can successfully play this role. International standardisation work related to eco-labelling in wild capture and inland fisheries as well as in aquaculture has been elaborated, most importantly in the context of the FAO. In light of the proliferation of different eco-labels, a main challenge is to ensure that the information given to the public is built on fact, is reliable, does not make unsubstantiated claims and provides a basis for consumers to make informed choices. The drivers for certification schemes involve a mixture of sustainability, social and ethical considerations and are evolving at a rapid pace. An agreed definition of sustainability would be a first step to improving harmonisation. However, such agreement is unlikely without the participation of governments and will be a challenge to achieve. While private labelling schemes do not depend on a harmonised definition for success, the benefits that an agreed definition of sustainability may provide are substantial. Such FISHERIES AND AQUACULTURE CERTIFICATION © OECD 2011 9 EXECUTIVE SUMMARY – agreement can reduce the potential for labels to inhibit trade, can help establish better cooperation between NGOs and governments and may contribute to reducing consumer confusion in the marketplace. Moreover, progress here would support the development of a broader governance framework for sustainable fisheries. Private labels face several challenges that make it unlikely that they can be successful completely independently from public help. Chief among these is the credibility of the claims set forth. For a label to be effective, it must be trusted by the consumer, and often the best way to accomplish this is for it to be part of a larger certification scheme that clearly defines the claims made and guarantees their accuracy. When such certification schemes are international, it also helps ensure fairness for fishers and aquaculture producers globally. At the same time, private labels have an advantage over public initiatives when they are perceived as more independent and having fewer conflicts of interest. Achieving international agreement on a common definition of sustainability would be quite difficult. While the definition of fisheries sustainability is reasonably well agreed in general terms the specific and more operational aspects are interpreted in very different ways in different countries, as well as among different stakeholders within countries. Bridging these differences would likely prove to be a significant challenge. The processes underway at the FAO and the progress made to date form a solid foundation in reaching such agreement, but success is likely to come as a series of smaller steps. For example, a first step could be a checklist of minimum requirements, and this would then be followed by incremental steps. The greater the degree of international agreement and harmonisation, the lower the risk that labels could reduce trade opportunities for producers. Labels are most likely to succeed when their promoters can argue that their label is the most credible, provides accurate information and is based on best practices for certification. Broad international agreement on the content of an effective standard can support the credibility of an eco-label. To be successful in the marketplace, coming to agreement on a shared definition of sustainability is a process that should involve both governments and stakeholders. This is because any new standard based on the agreed definitions must be accepted by the market; to do so it must offer benefits to all stakeholders (consumers, the fishery sector, certifiers and public) in what remains in essence a voluntary and private system. FISHERIES AND AQUACULTURE CERTIFICATION © OECD 2011
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