Fisheries policy targeting threefold increase of exports

The fishing fleet still consists of traditional fishing crafts, some mechanised and a few hundred multiday boats, with limitations in terms of storage, facilities to ensure quality and availability of ice, which leads to very poor quality products ending up in the local markets or being used for dry fish

Fisheries in Sri Lanka is a neglected industry and the national planners have not done much for the last 50 years to modernise the industry. Whatever progress is mainly due to the private sector contributions and this was clearly seen with the difficulties had with EU authorities. Now the industry should be placed on track and the State must respond to provide the required backups to make it a key industry. 

The fishing fleet still consists of traditional fishing crafts, some mechanised and a few hundred multiday boats, with limitations in terms of storage, facilities to ensure quality and availability of ice, which leads to very poor quality products ending up in the local markets or being used for dry fish.

This is one industry where the real potential and resources are heavily underutilised, with exploitation by the neighbouring countries. Standards of living among the fishing community are poor, which is somewhat even lower than that of State labour, with the possibility of EU enforcing new conditions such as ethical partnership as in the tea industry.

Seafood exports are 100% by the private sector with prawns and tuna exports for the last 50 and 25 years respectively and shrimp farming on the west coast being fully developed. Ceylon Fisheries Corporation (CFC) cutting a sorry figure in competing with the private sector handling of local sales due to inefficient management has failed to make any impact. The industry despite the recent hiccups with the EU should take a leapfrog approach and generate the momentum to take the industry forward. 

An example for a robust National Policy for the Seafood Industry (NPSI) is: ‘Optimising the utilisation of the resources and opportunities and treble the volume of exports within the next two years, while ensuring similar quality to the local markets, with additional resources obtained through local or foreign investments.’

This should be backed up with a well-planned action plan with targets for increased supplies, value addition, quality assurance, utilisation of waste, environmental controls and a monitoring process. The welfare of the community will be vital to keep up with the current social obligations.

Increasing the supply of both fish and shrimps involves deep sea fishing with fishing vessels geared with sophisticated equipment, both sea and fresh water farming both shrimps and popular fish types such a salmon, trout, eel, both in the lagoons, mangroves with adequate environmental safeguards and also focus on new markets will be key requirements to achieve the objectives.

Value addition and utilisation of waste may require foreign investment with new technology and markets with the Seafood Development Authority (SDA) providing infrastructure facilities in association with the support of the Seafood Exporters Association (SEA), which will form the backbone of the industry.

Despite the ‘political’ target of becoming the third largest exchange earner, the realistic targets identified could be:

nIncrease of supply of tuna by 200%, shrimp supply by 400%, value addition by 50% of the total supplies, all exporters to be certified based on international standards, increase the market by 50%, environment by 100% and welfare 100% within the next two years.

The Action Plan to achieve above targets is:

• Develop fishing in international waters with joint ventures with international fishing companies; introduce fishing vessels with conformity to international regulations and standards, prawn farming in lagoons around the coast specially the east coast
• Value addition and waste utilisation through with joint ventures with foreign investment
• Quality assurance from SDA-registered agencies
• Marketing by SDA and the investors
• Conduct of research, training and organise welfare programs for fishermen

Joint ventures

The use of a fleet of fishing vessels with advanced technology for detecting fishing grounds, catching and even processing on board will provide high quality fish to be exported directly and waste utilisation through joint venture partnerships will be essential considering the capital required.

Farming

The potential for fish and shrimp farming to be exploited with controlled measures to prevent diseases and also impacts on the environment. Farming in major lagoons such as Kalpitiya, Jaffna, Batticaloa and Kalametiya should be explored with the problems of land utilisation resolved.

Farming of expensive varieties of salmon, trout and eel in the cooler parts of the country should be undertaken. Oyster farming is operated more or less on a trail scale and this should be encouraged with research focused on oysters and pearls.

Value addition

The practice of exporting intermediate products such as tuna fillet, frozen shrimp blocks, etc. should be discouraged through incentives for value addition. Smoking is popular in the West and fermented, salted products are popular in South Eastern countries.

Exports of prawns continue to Japanese markets; the Japanese use these prawns for making a wide range of products such as tempura. Japanese buyers have not encouraged value addition probably due to lack of confidence in the local processors due to lack of competencies and also lack of due diligence.

The areas to promote value addition will include:

• Encourage the value-added end products either alone or as joint ventures with overseas investors 
• Incentives for value addition should be introduced with new technology made available through joint ventures or employing experts to assist the domestic processing
• Production of ‘gift packs’ for festival seasons, which are priced nearly five times the usual products. It is quite possible to make such packs for the European or US markets during Christmas, as during this period there will be a steady market for such products
• The incentive could include tax-free facilities for importing machinery, and exemptions from tax for a few years for the industry to get established
• These activities should be backed up with research into processing and also packaging where attractive packaging to consumers should be encouraged

Quality assurance

The exporters, especially fish exports, believe that complying with basic hygiene as required in the EU regulations, as the highest quality assurance possible. This again indicates the limitations in their knowledge on quality assurance.

An attitudinal change is required through seminars, training and discussions which the SEA should play an active role and encourage all exporters to practice Integrated Quality Management (IMS), which will facilitate direct exports. 

This could lead to branding and marketing based on branding and develop a ‘tag line’ referring to ‘health food,’ referring to fish as health food, etc.

The areas to address are:

• Incentives to practice ISO standards more specifically IMS to strengthen the marketability of the products,
• There should one standard for exports and local sales which will lead to an overall improvement in fish quality.

Expanding markets

Tuna exports are mainly to Europe and the US with prawns exported to Japan, whereas to the other South East Asian markets which usually are seafood consumers, exports are many other varieties such as cuttlefish (calamari), crabs, beach-de-mer (sea cucumber), oysters, etc., which could be further expedited. Exports to non EU, US and Japan to be increased by 50% within the next two years using other types of products.

Research for fattening of crabs and lobsters and handling of live lobsters are required with reduced mortality rates and increase the lobster population available through monitoring of lobsters with eggs and small lobsters by Customs and Police officials, encourage use of cages for harvesting lobsters to improve the quality and use of nets to catch lobsters must be prohibited. 

Research and training

Training of fisherman on fishing techniques is carried out by the Department of Fisheries, but these should be expanded to cover operating fishing vessels, handling on board, standards and quality assurance and they should also familiar with international and national regulations applicable to the entire food chain. There should be a special training division established under the SDA to develop a strong fishery industry.

For value addition farming, an international aid line should be considered. 

Utilisation of fish waste

Developing fisheries should be accompanied with a mechanism for waste utilisation, as many valuable raw materials for industrial uses are in operation in countries such as Norway and Denmark. The current level of waste produced will be around 10,000 MTs and with planning this could be increased to around 40,000MTs. This could chitin and chitosan around 5,000MTs which could be used for the pharmaceutical industry, pigment in food processing and colouring, with the protein component used in animal feed, or enriching cereal for children and patients.

• Fish waste: Products such as shark liver oil, shark skins and shark fins have industrial use and as foods and these must be encouraged. The actual levels of fish waste produced are not available. There should be a collection service with all fish processing facilities which could be used for acid or biological fermentation, with many potential uses.
• Shrimp waste: Develop at least two industries to recover chitin from the 40,000 MTs of waste. Recovered chitin to be further developed perhaps with Norwegian or Danish assistance. These should recover material for the value of 50% of the export earnings from fish and shrimp in two years’ time.

Local sales

All fish brought ashore should be top quality and this will ensure the fishermen will maintain the hygiene and quality, as quality of local sales will also improve.

Environment

Adequate attention should be paid to environmental aspects in all operations related to fishing. These include overfishing leading to reducing fish resources, illegal operations to catch fish, use of banned fishing nets, exploiting lobster populations, etc. Adopting environment management for fish-related activities will bring credibility to these activities. 

Welfare schemes

The fishing community is a neglected group altogether and special programs should be developed to improve their living standards.

It is interesting to note that nearly 99% of the fishermen are unable to swim; it will require SDA to address this aspect too among other safety measures, such as radio links, lifesaving devices, and a system to monitor the movement of the fishing vessels.

Seafood Development Authority

SDA will be responsible for the development of the national policy, establishing targets, goals and action plans. SDA will be responsible to attract investors, develop a fleet of trawlers, develop the landing sites and farms, promote quality assurance, promote value addition, marketing, training, research and welfare of the fishery community 

To handle these more effectively, CFC, CFHC, NARA, NAQDA, MEDA and the competent authority for EU, training and research, should be brought under SDA. 

SDA should promulgate a welfare program for the fishermen, who have opted for a high risk profession with housing, education for children, insurance and loan facilities to tide over during monsoons. It is of interest to note that 90% of the fishermen are non-swimmers.

Seafood Exporters Association (SEA)

SEA should play a supportive role to SDA in promoting the fishery industry, development the national plan, farming, harvesting, processing and exporting, etc. This industry while supplying all the fish requirements for local consumption, leading to ceasing canned fish imports, will be one of the key export earners.

Exporters who are processing without any approval, which is detrimental to the seafood trade and the SEA, should take a collective approach that all exports should comply with the standards and legislations.

SEA will need the services of a competent advisor to work with them and liaise with the Government and the inspection agencies as well as buyers on a long-term basis. 

[The writer is an FAO expert on fish quality assurance and has been involved in assisting the industry in India, Malaysia and Indonesia. His contribution to the seafood industry in Sri Lanka for over 40 years was the backbone for the present level of development.]