Traceability in Seafood: Ensuring Sustainability and Quality
June 30, 2024
The seafood industry is a vast and complex network, estimated to generate USD 1.8 trillion annually, which is equivalent to 2% of global GDP. However, a significant portion of this industry operates without traceability, leading to various issues, including illegal fishing, unsustainable practices, and even forced labor. Improving traceability in the seafood supply chain can significantly enhance profits, sustainability, and consumer trust.
Why Traceability Matters
Economic Impact: Implementing traceability across the seafood supply chain can increase global seafood profits by 60%, from USD 76 billion to USD 122 billion. This profit boost mainly stems from reduced costs associated with food recalls, waste, and improved operational efficiency. Additionally, traceability can add up to USD 600 billion to the valuations of global seafood companies.
Consumer Trust and Safety: Traceability allows consumers to know where their seafood comes from, ensuring it is sustainably sourced and free from illegal practices. This transparency is crucial in building consumer trust and meeting the growing demand for ethical products.
Regulatory Compliance: Governments are increasingly tightening regulations around seafood traceability. For instance, Japan has recently introduced new laws to enforce traceability in fisheries, setting a precedent for other nations.
Current State of Traceability
Despite its benefits, only 29% of global seafood production is currently traceability-ready. This term refers to seafood harvested in ways that make it acceptable for the harvester to be associated with its production, considering factors like sustainability and legality. To move towards 100% traceable seafood, significant investments are required.
The Path to 100% Traceability
Investment Needs: The seafood industry needs to invest approximately 1% of its current revenue to achieve full traceability. For fishing companies, this investment is just 6% of the subsidies they receive, which are often deemed harmful to ecosystems. Redirecting these subsidies towards traceability can yield substantial benefits.
Technological Solutions: Several traceability solutions are available that enable the identification, tracking, and recording of seafood products through the supply chain. Adopting these technologies can bridge the gap between current practices and full traceability.
Stakeholder Engagement: Investors and financial institutions play a critical role in promoting traceability. By asking seafood companies six key questions about their traceability systems, scope, and interoperability, stakeholders can drive the adoption of robust traceability measures.
Benefits Across the Supply Chain
Producers: Enhanced traceability can lead to operational efficiencies and cost reductions in areas like staff overtime and food recalls. It also provides a marketing advantage as consumers increasingly seek transparent and ethical products.
Retailers and Wholesalers: For retailers and wholesalers, traceability ensures the quality and safety of the products they sell. It also allows them to cater to the growing segment of consumers who prioritize sustainability.
Consumers: The ultimate beneficiaries are the consumers who gain access to reliable information about the origins and handling of their seafood, ensuring it meets their standards for quality and sustainability.
Conclusion
Traceability in seafood is not just a regulatory requirement but a critical component of a sustainable and profitable seafood industry. With the right investments and stakeholder engagement, the industry can achieve 100% traceability, unlocking significant economic, social, and environmental benefits. As we move towards a more transparent and sustainable future, traceability will play a pivotal role in shaping the seafood industry.
References
Planet Tracker. (2022). How to Trace USD 600 Billion. Retrieved from Planet Tracker
World Benchmarking Alliance. (2022). Seafood Stewardship Index. Retrieved from World Benchmarking Alliance