The doc, printed by assume tank Planet Tracker, notes that nearly 75 p.c of seafood bought at present is just not licensed or rated as sustainable. What’s extra the authors argue that “even claims of sustainability cannot generally be guaranteed due to a current lack of sea-to-plate traceability, with companies along the supply chain typically unable to reliably identify seafood products, track their locations and any treatments or transformation.”
These are two of the important thing findings of the report, which is predicated within the evaluation of over 4,000 private and non-private seafood processing firms, and suggests how traceability may enhance the profitability of seafood processing firms, whereas serving to to extend the sustainability of your complete $140 billion business.
Industry-wide implementation of traceability wouldn’t solely assist confirm sustainability claims, but additionally keep away from publicity to unlawful, unreported and unregulated fishing and scale back product remembers and investor dangers. It may additionally considerably improve the profitability of the seafood processing sector, vitally positioned between harvesters and retailers and a key supply of traceability gaps.
By implementing a traceability answer that complies with the requirements of the Global Dialogue on Seafood Traceability (GDST), the report means that the standard seafood processor may double its EBIT margin, which is at present at merely three p.c, primarily because of decrease recall, product waste and authorized prices.
“Because industry-wide adoption of GDST standards could significantly advance sea-to-plate traceability, multiple large retailers across the world have already pledged to adopt and implement them. Yet among large, listed seafood producers and processors, only Thai Union has pledged to do the same. Why is this the case?” the authors ask.
Planet Tracker says that its analysis reveals a stark lack of interoperability between firms as a result of present fragmentation of seafood processing provide chains – which means that traceability is hindered by incompatible techniques and poor information seize and administration. Additionally, it discovered essentially the most fragmented markets, notably Japan and China, are among the many least worthwhile for seafood processors.
John Willis, director of analysis at Planet Tracker, stated: “Although the GDST standards leave room for improvement, widespread implementation is a much-needed step for the seafood processing industry to manage its risk, while at the same time improving its sustainability, profitability and accountability”.
“Investors in seafood processing companies are well-placed to engage with corporates and ask vital questions: namely, what traceability initiatives are in place? Is the company GDST compliant? What are the financial benefits and costs of implementing GDST-compliant traceability? Such conversations will be essential for raising the issue to the top of the industry’s agenda and addressing the fragmentation in its supply chains”.
The paper suggests another questions that buyers ought to discover with administration, similar to: Is the corporate’s traceability system appropriate with these of suppliers and shoppers?
How a lot of the seafood sourced/bought is roofed by that traceability system?
Is the corporate conscious of the Global Food Traceability Center calculator to estimate the returns of implementing a traceability answer?