Asia: Catching Up With Its Own Production

November | December 2009 Feature title: Asia:Catching up with its own production International Aquafeed is published five times a year by Perendale Publishers Ltd of the United Kingdom. All data is published in good faith, based on information received, and while every care is taken to prevent inaccuracies, the publishers accept no liability for any errors or omissions or for the consequences of action taken on the basis of information published. ©Copyright 2009 Perendale Publishers Ltd. All rights reserved. No part of this publication may be reproduced in any form or by any means without prior permission of the copyright owner. Printed by Perendale Publishers Ltd. ISSN: 1464-0058

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Standards

Asia: Catching up with its own production by Daphne Tan

D

espite the high production concentration and growth potential for aquaculture in Asia, regulatory standards that ensure a basic level of compliance with feed additive usage are lagging way behind. Characterized by low levels of vertical integration, Asia’s aquaculture industry is made up largely of smallholdings and ad hoc, unregulated ponds and farms, making shrimp and fish production difficult to monitor. A majority of the shrimp and other aquatic exports to the EU, US and Japan that were tested positive for banned substances in recent years have come mainly from Asian origins. Jon Ratcliff of Food and Agriculture Consultancy Services (F.A.C.S. Ltd) in the UK points out that while national regula-

tions may be in place, the sheer mass coming from literally countless numbers of producers makes it very difficult for governments to enforce these effectively. “While we could say that governments need to be more proactive here, companies have also got to be responsible for themselves and the farmers they contract,” he adds. There are currently four important generic quality systems for the food and feed sector – GAP (Good Agriculture Practice), GMP (Good Manufacturing Practice), HACCP (Hazard Analysis and Critical Control Points) and ISO (International Standards Organization). These standards provide a set of guidelines for agricultural practice aimed at fulfilling minimum levels of hygiene, safety, production controls, storage and transport. But less-than-thorough knowledge of the different requirements of these systems,

"While more volume may sound merrier, improving standards and identifying niche areas are what Asian aquaculture urgently needs"

10 | InternatIonal AquAFeed | november-December 09

and which of these are applicable to which markets, leave many producers baffled while contributing little to a systematic approach to food and feed safety.

Regulation and control At an in-house seminar conducted by the American Soybean Association in Singapore on feed regulation and certification, Ratcliff noted that although EU production systems often involve more vertical integration across the supply chain, there are strict regulations in place at the farm level. European Feed Assurance Schemes, such as Fami QS for premix and additives, and widely recognised national standards such as the Universal Feed Assurance Scheme (UFAS) in the UK and the International Feed Ingredient Standard (IFIS), set clearly identifiable goals which producers can follow.

EU alert notifications by product category - 2008 Source: EU RASFF (Rapid Alert System for Food and Feed) Beverages and bottled water (2%) Cereals, bakery, cocoa products, coffee & tea (11%) Confectionary and dietetic foods (8%) Animal feed (7%) Fish, crustaceans and molluscs (20%) Food contact materials (11%) Fruits, vegetables, herbs and spices (13%) Meat and products (13%) Milk and products (5%) Nuts, nut products and seeds (2%) Other food products (7%) Pet food (1%)

In Asia, the lack of such well defined standards as well as poor upstream communication – from the processor or exporter who understands what the market requires, to the farmer or feed producer – means that farmers are often not aware of common food safety issues. Any form of farm level regulation is also practically nonexistent. “In such cases, moving towards integration is the most effective way by which compliance can be achieved and the

However, this is not the case among other Asian producers. Shrimps from Vietnam, Bangladesh and India, for instance, have repeatedly failed border inspections which reveal the presence of residual substances like streptomycin and metabolite of nitrofurans in batch tests. These shortcomings have highlighted the lack of systematic residue control systems in aquatic products, made worse by the absence of a common food safety standard in Asia. Part of the reason for this lies in the widely varying levels of incomes and consumer expectations among the different economies and even within a single country, hence the different tiers created to cater to these different levels, says Ratcliff. Countries like India and Bangladesh which have just begun to move into export markets also lack exposure to such market demands. Some, like the EU, now demand that sellers from ‘high risk’ export origins produce an analytical test confirming that the imported marine produce do not contain any banned substances. Recognising the gravity of the issue, governments have been quick to safeguard their exports by complying with the safety requirements set by key export markets such as the EU, Japan, South Korea, the US and Australia. In India, after emergency measures

"In India, after emergency measures were imposed on imported crustaceans by the European Commission in April 2009, screening measures for export consignments have undergone a complete overhaul" right standards of production put in place.” There is a strong link between proactive government involvement and the level of food safety compliance. Thailand’s seafood industry, which is regulated by the Department of Fisheries, boasts one of the highest rates of regulatory compliance among Asian producers. The world’s leading shrimp exporter at US$2 billion in annual receipts, Thailand’s well-developed quality control and assurance systems have been important in raising its profile to one of a highly reputable food and agricultural produce supplier.

november-December 09 | InternatIonal AquAFeed | 11

Standards were imposed on imported crustaceans by the European Commission in April 2009, screening measures for export consignments have undergone a complete overhaul.

In Bangladesh, a self-imposed suspension of six months beginning last May has since seen much concerted efforts at government level to control contamination in shrimp products bound for export to the EU. From 2005 to 2008, almost 100 shipments of Bangladeshi shrimp were rejected at European customs after nitrofurans were detected, resulting in substantial earnings losses for the local frozen seafood sector.

Taking stock

"While the economic downturn has seen the market share of high-end food retail eroded in favour of mass market products, food safety will remain an uncompromising issue"

While the economic downturn has seen the market share of highend food retail eroded in favour of mass market

they are going to get there,” says Ratcliff. He adds that in Thailand, programmes run by the Department of Livestock in HACCP certification are aimed at helping the industry move to the next level. Having locally trained auditors conduct inspections, rather than flying in foreign experts at high cost, is also a step in the right direction as it raises domestic safety standards and contributes to sustainability in the local marine exports sector. Ratcliff also acknowledges that the poor economic climate has led many developed markets to re-consider areas such as GMO technology, environmental issues and animal welfare. Such issues have become more open to debate since consumers realise that these come at a price. “Budgets have been slashed and consumers now feel the pinch that comes from such high demands. In Europe, we have already seen a dramatic fall in the

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EU Rapid Alerts 1990-2006

Source: FACS and EU RASFF products, food safety will remain an uncompromising issue. Training and development programmes help businesses get up to speed with knowledge of export requirements while The diagrams show the proportion of banned focusing on expanding substances found in veterinary products, and type production and improvof animal protein and food products that have failed the EU rapid alert tests ing profitability in an (Source: FACS and EU RASFF) efficient and targeted manner. The slowdown from the recession has Six new testing laboratories have also been also helped many Asian producers take set up specifically for this purpose, with stock of how they should move ahead. attention focused on regions with the high“We look at where companies are now, est rate of border rejects. where they are trying to get to and how 12 | InternatIonal AquAFeed | november-December 09

demand for organic foods due to the economic crisis and there is also pressure on high welfare foods such as free range, something that was never an issue two years ago.” With expectations being revised on the one hand and efforts made to raise safety standards on the other, a closer alignment in the demand-supply playing fields could equate to improved trade and better food for all.

More

inforMation:

Daphne Tan is a Singapore-based freelance journalist and analyst for agribusiness, and food and feed related issues. Email: [email protected]

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