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H GOING E
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Disclaimer, This document the Document has been prepared by ADM Capital Foundation ADMCF for general. introduction overview and discussion purposes only and does not constitute definitive advice on. regulatory investment or legal issues It should not be used as a substitute for taking regulatory financial. tax or legal advice in any specific situation Information provided in the report has been obtained from or. is based upon sources believed to be reliable but have not been independently verified and no guarantee. representation or warranty is made as to its accuracy or completeness Information contained in this. Document is current as of December 2017 and is subject to change without notice Information contained. in this Document relating to unrealised data and projections is indicative only and has been based on. unaudited internal data and assumptions which have not been independently verified and are subject. to material corrections verifications and amendments This information is not intended to constitute a. comprehensive statement of any matter and it should not be relied upon as such. None of ADMCF its sponsors affiliates officers or agents provides any warranty or representation in. respect of information in this Document In no event will ADMCF be liable to any person for any direct. indirect special or consequential damages arising out of any use of the information contained in this. Document or any other hyper linked website including without limitation any virus damage lost profits. business interruption loss of programs or data on your equipment or otherwise This Document may. provide addresses or hyperlinks which lead to other websites however ADMCF may not have reviewed. any such websites and is not responsible for the content of any such websites or pages ADMCF makes. no representation or warranty expressed or implied with respect to the accuracy or completeness of any. of the information in the Document and accepts no liability for any errors omissions or misstatements. therein or for any action taken or not taken in reliance on this Document The Document should not be. regarded by recipients as a substitute for the exercise of their own judgment All statements contained. herein are made as of the date of this Document This Document is for information purposes only and. should not be construed as an offer or solicitation of an offer to buy or to make any investment. To download the full report The trade in Live Reef Food Fish Going Going Gone 2017 go to. admcf org resources research marine or chooserighttoday org. Suggested Citation, Sadovy de Mitcheson Y Tam I Muldoon G le Clue S Botsford E Shea S 2017 The Trade in Live Reef Food Fish. Going Going Gone Volume 1 Main Report Parts I II III pp 1 288 ADM Capital Foundation and The University of. Hong Kong Hong Kong Special Administrative Region, ince the late nineties intergovernmental agencies NGOs academics and extensive. literature have highlighted the unsustainability of the South East Asian Live Reef Food. Fish Trade LRFFT Despite the economic benefits for many involved there is undeniably. a dark side to this lucrative trade in colourful fishes which involves a wealth of issues. Collectively these represent a major challenge to ensuring the LRFFT s long term sustainability. A disturbing pattern has emerged of overfishing illegal trade tariff avoidance of conservation. threats to several species destructive and damaging fishing methods and even corruption. This darker side is particularly relevant to the wild capture aspect of the trade. While many of these issues were recognised more than two decades ago concerns continue to. be expressed Despite various interventions having been launched and completed the overall. result has not reversed the worrying trajectory these fisheries are on and today continued. overfishing and unregulated and unsustainable practices persist If not addressed the future. of the trade looks bleak potentially impacting thousands of livelihoods in the region not to. mention the viability of populations of several particularly favoured LRFF species. The report The Trade in Live Reef Food Fish Going Going Gone aims to reflect upon why. so little progress has been made to date towards achieving a sustainable LRFFT by examining. the trade s many components and characteristics It thus provides a comprehensive profile. of the LRFFT over two decades based on the best available information from both major. exporting and importing countries as well as from independent surveys and studies It is. hoped that it will serve as an important reminder of the inertia that has plagued efforts to. reform the LRFFT and also as a catalyst for a reinvigorated pursuit of options that could direct. the LRFFT towards a sustainable path, EXECUTIVE SUMMARY. Relatively and Absolutely the LRFFT is a High Value and Regionally. Important Trade, For almost three decades an international trade in live reef fishes has grown and flourished.
in the Indo Pacific region in response to demand for ultra fresh seafood which is part of. the culinary tradition of southern China The trade is not large by global fishery standards. estimated to hover between 20 000 and 30 000 Metric Tonnes MT annually but it is. disproportionately valuable because it supplies a luxury seafood market with high value fishes. Its annual retail value is estimated to substantially exceed US 1 billion with some species. fetching in excess of US 600 per kg at retail To place this in a global context the annual. trade value is roughly four times the global value of the marine aquarium trade and about one. third of the valuable Western and Central Pacific tuna fisheries In the context of Hong Kong. the global trade hub for the live fish trade was worth almost six times the total production of. the city s own fishing fleet in 2016, Importantly the LRFFT is capable of providing income and good profits along the trade chain. from fishers and their communities to exporters transporters importers and retailers Given. the high values involved it should also generate substantial export and import tariffs and. income tax returns for trading countries However the clandestine nature of the trade a culture. of deliberate tax avoidance poor governance and lack of transparency in transport of live fish. collectively result in significant erosion of these potential revenues. Unrelenting Overexploitation Persists, Since the late 1990s the relentless overexploitation of LRFF has been repeatedly documented. and bought to the attention of both exporting source and importing countries and the trade. is growing Hong Kong s trade data which serve as a proxy for trends in the LRFFT indicate. that in 2016 imports were some 32 higher than in 1999. The extent of overexploitation is clearly evidenced by the serial depletions of LRFF fisheries. whereby the trade takes advantage of once easy and voluminous catches when initiating. a fishing and export operation in one area then moving on to new fishing grounds when. catch rates decline oftentimes leaving behind severely degraded fisheries and dislocated. communities The result is the shifting of fishing grounds from the now depleted northern. sector of the South China Sea to the increasingly depleted waters further south In many. places catch levels continue to outstrip the naturally sustainable supply rates of target. populations by between two and a half and six times. Popular Species Traded are Inherently Vulnerable to Over Exploitation. A major contributing factor to LRFF overexploitation is the biological vulnerability of the. popular species in this trade The LRFFT involves the sourcing of approximately 15 20 species. of reef fishes the great majority being groupers which come predominantly from developing. countries in Southeast Asia A notable exception is the Leopard Coralgrouper Plectropomus. leopardus which is also sourced from Australia The biology of many of these species which. EXECUTIVE SUMMARY, includes late sexual maturation long life and aspects of their reproduction e g sex change. and spawning aggregations makes them particularly vulnerable to fishing pressure and more. susceptible to overfishing than many other exploited species in the coral reef ecosystem. The fishes included in the LRFFT come from both wild populations and from mariculture. farmed sources with the major source countries currently being Indonesia and the Philippines. several Pacific Island nations commenced and then stopped exporting their live fish due to. concerns over trade operations and fishery sustainability Several grouper species that make. up the trade have been overexploited to the extent that they are considered Threatened or. Near Threatened according to the IUCN Red List The Napoleon or Humphead Wrasse. Cheilinus undulatus albeit a relatively low volume species was listed on CITES Appendix. II in 2004 as a direct consequence of declines due to exploitation pressures from the trade. It lives longer than three decades and is naturally uncommon The targeting of spawning. aggregations especially those of the Camouflage Epinephelus polyphekadion Squaretailed. P areolatus and Tiger E fuscoguttatus Groupers can quickly lead to population declines. while the blatant and illegal taking of threatened species plague parts of an industry that is. poorly monitored and virtually unmanaged, An Extended Regional Trade Chain Supplied by Many and Controlled. Wild fishes typically pass along an extended trade chain caught in small numbers by tens. of thousands of small scale fishers then consolidated by a small number of traders and. exported in large fish carrier vessels or by air mainly to Hong Kong. While Hong Kong is also a consumption centre for live fishes a substantial amount of live. seafood imported into the city is re exported to mainland China Initially these fishes were. destined for Guangzhou and Shenzhen southern China but interest in the colourful reef fish. has grown and they are now also shipped to high end restaurants in Shanghai Beijing tier 2. cities like Qingdao and beyond A handful of traders therefore control a trade that is supplied. by tens of thousands of fishers to supply millions of consumers In reality wholesalers in Hong. Kong appear to control the market both up and down the supply chain and often maintain. control over the fishers and middlemen who buy from them through patronage systems. This indebtedness along with limited alternative livelihood options that can match LRFFT. incomes repeatedly forces fishermen to continue fishing to meet debt obligations even as. fish become scarce Small and strong trade networks limit newcomers from entering the. centre of the trade chain, Conspicuous consumption is a hallmark of the LRFFT and continues to drive overexploitation.
The trade satisfies a major consumer interest extremely fresh and highly desirable reef fishes. that are attractive to look at and diverse in character This is a major draw for seafood tourism. especially for Chinese diners Live reef fish are amongst the most desired dishes in high end. restaurants including major hotels and resorts and a regular central feature of banquets. weddings and seasonal celebrations such as Chinese New Year and Mother s Day This rise. of conspicuous consumption is a hallmark of the LRFFT associated with rising incomes and. motivated by the desire for social status for engendering personal and business relationships. EXECUTIVE SUMMARY, and for cultural reasons i e health and well being Paradoxically it is the high prices paid. by consumers that enable the trade s ongoing viability despite high transport costs and. ongoing overexploitation of target species leading to population declines The trade has. also stimulated the grouper mariculture industry which helps to meet demand and supplies. several lower priced species, Economic Characteristics Mean that Perverse Incentives Lead to. Overfishing, From an economic standpoint the LRFFT is a high value low volume fishery that can deliver. large profits and sustain a highly lucrative business even at relatively low volumes of trade. despite high transportation and transaction costs and high levels of risk around transport. mortality The profitability of the trade acts as a considerable incentive to persistently overfish. areas that are poorly or entirely unmanaged and drives the boom and bust nature of the. fishery As stocks become depleted in some cases locally extirpated traders turn their. attention to seek ever new fishing grounds, There is a perception that the value arising from trading in live fish is being inequitably. distributed along the supply chain with downstream traders unduly benefiting to the. detriment of the many fishers and middlemen in the chain While there are pragmatic reasons. for some agents in the supply chain extracting more value many families engaged in the. LRFFT still earn above average incomes thus providing considerable incentives in the face or. limited or no regulation to continue fishing beyond sustainable limits. In conventional markets price is an indicator of supply relative to demand In the LRFFT. however increasing scarcity and or supply can have the perverse impact of further increasing. prices of this luxury good providing yet greater incentive to continue fishing unsustainably. even as populations decline to very low levels While scarcity can be a factor consistent with. its status as a luxury good an underlying element sustaining the. 1 EXECUTIVE SUMMARY S ince the late nineties intergovernmental agencies NGOs academics and extensive literature have highlighted the unsustainability of the South East Asian Live Reef Food Fish Trade LRFFT Despite the economic benefits for many involved there is undeniably

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