Arapaima gigas Market Study

Current status of Arapaima global trade and perspectives on the Swiss, French and UK markets

market perspectives December 2005

This document was elaborated on behalf of UNCTAD by Olivier Mueller, CEO of Ichthys Ltd. Editing and Layout Alastair Green, Consultant, BioTrade Facilitation Programme, BioTrade Initiative. UNCTAD.

Comments were received UNCTAD BTFP, Biocomercio Per and the Peruvian Export Promotion Agency (PROMPEX).

This information document was prepared by UNCTAD/BioTrade Facilitation Programme. The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the United Nations Conference on Trade and Development concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. This document has not been ocially edited.

Published by the United Nations Conference on Trade and Development. UNCTAD. Copyright 2006. All Rights Reserved. Any reproduction of this publication, total or partial, for educational or non-prot purposes is authorised without any special permission from the holder(s) of the rights under the condistion that the source of the material is accurately cited. The United Nations Conference on Trade and Development would be grateful to receive a sample of whatever text whose source has been this publication. The use of this publication for its sale or other commercial means is not authorised.

Contents

1. 2. 3. 4. 5. 6. 7. 8. 9.

Introduction The species CITES Trade statistics analysis, current status of global Arapaima trade

4 4 8

Buyers interest and requirements / analysis of the survey sent to Swiss, French and UK buyers 12 The sh markets in Europe and Switzerland Possible competitors (other countries / continents) and possible substitutes (other sh) Arapaima farming / shery and sustainability issues EU and CH import requirements and formalities / tari and non-tari barriers Conclusions and recommendations Literature cited / Further reading 20 27 31 36 39 41 42 49

Annex I:

Annex II: Important documents Annex III: Resources and addresses

1.

Introduction

Arapaima gigas is one the biggest freshwater sh of the world. For millennia, it has been part of the staple diet of Amerindians living in the Amazon basin. Due to increasing human pressure, its population has been in steady decline since the 1960s and in 1975 was protected under CITES convention (the Convention on International Trade in Endangered Species of Wild Fauna and Flora), listed in appendix II. The Arapaima that is consumed in South America is mainly caught in the wild. Despite its potential for aquaculture, farming of this sh is largely anecdotic due to the lack of knowledge regarding its controlled reproduction. The esh of this sh is not exported and is mainly consumed in local markets. Nevertheless, due to the constant growth of sh consumption in Europe and the USA, interest of sh buyers and local investors in Arapaima giga is increasing rapidly. The goal of this study, done on the behalf of UNCTAD/BTFP, is to give to Arapaima producers, future producers from Peru and to all interested persons in this sh an overview of: the international trade of Arapaima and its by-products through the analysis of the CITES statistics; the sh buyers interest and market requirements for this sh in Switzerland, France and the UK through the analysis of a questionnaire mailed to approximately 400 participants; the situation of the Swiss, French and UK sh markets through the analisys of trade statistics (Swiss-impex and EUstats). The German market is currently an important potential outlet for Arapaima too, but it has not been dealt with in this paper because of the recent study carried out by Prompex / CAF. Nevertheless some interesting ndings will be mentioned; possible competitor products, such as Nile perch (Lates niloticus), Basa (Pangasius sp.) and Tilapia (Oreochromis niloticus); Arapaima trading and sustainability issues; and Formalities required from the importing countries, possible tari and non-tari trade barriers, with the idea of helping to implement a correct strategy to develop a responsible and sustainable production Arapaima in Peru for export.

2. 2.1.

The species Description of the species and its biology

Species classication : Class : Actinopterygii Order: Osteoglossiformes Family: Osteoglossidae Species: Arapaima gigas Arapaima belongs to one of the oldest sh lineages and is part of the family of osteoglossidae, the bony-tongue sh family, along with six other species. Osteoglossidae inhabit South America, Africa, Asia, and Australia. Distribution Arapaima gigas, Arapaima (Peru and Bolivia) or Arapaima (Brazil), exclusively inhabits the Amazon river basin of South America and is mainly found in Peru, Brazil, Colombia, Bolivia and Guyana. It is found in several dierent types of habitat, such as the oodplain lakes, the large tributaries of the Amazon river, including the Rio Madera and the Rio Machado. Arapaima gigas inhabits both white water and clear water, much of which is also oxygen decient as it is located in rainforest swamp land. Development The Arapaima is one of the largest freshwater sh in the world, reaching up to 3 meters in length and 275 kg in weight. Its colour is usually grey with scales with a red border near its tail. Arapaima gigas must surface every 10-20 min. in order to obtain supplemental oxygen. As a result it is an easy target for shermen. The female Arapaima is sexually mature at ve-years-old and is typically 160 centimetres at this age.
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Reproduction Due to the geographic range that A. gigas inhabits, the animals life cycle is greatly aected by the seasonal ooding that occurs. Half of the year the Arapaima experiences an abundance of water, and the other half of the year it experiences conditions of drought. The Arapaima has adapted itself to this seasonal uctuation, including its reproduction habits. It lays its eggs during February, March, and April when the water levels are low, building a nest approximately 50 cm wide and 15 cm deep, usually in sandy areas. As the water rises, the eggs hatch and the ospring can prosper during the ood season from May to August. Therefore, yearly spawning is regulated seasonally. A. gigas is a mouth-brooder. Food Habits A. gigas is a predator that mainly eats other sh, but also other kinds of animal, such as birds. It usually nds food near the surface of the water.

2.2.

Economic Importance for Humans

A. gigas is hunted and utilised in many ways by local human populations. Arapaima are harpooned or caught in large nets and the meat is said to be delicious. One individual can yield seventy kilograms of meat. In addition, the Arapaimas bony tongue is often used to scrape cylinders of dried guaran, an ingredient in a beverage; the bony scales are used as nail les. Arapaima shery and wild stock exploitation The capture of Arapaima and its exploitation is strongly regulated in all countries where this sh naturally inhabits and is mainly used by local ethnic minorities. Arapaima has been exploited since the 18th century in the Amazon basin. It was dried and salted, and used as a local substitute for cod. Since the 1960s, the wild populations have decreased steadily, and since the 1980s have almost completely disappeared around the bigger Amazonian cities. In Peru, the hunting of Arapaima is regulated by the general law of sheries Decreto Ley n 25977 (see Annex II). Only the wild capture of sexually mature Arapaima is permitted (min. size 150 cm) and must be outside the reproduction months from October 1 through to February 28. The capture of wild Arapaima ngerlings as ornamental shes is prohibited. No restriction applies to farmed animals. In early 2001 the Brazilian government banned all Arapaima shing, except in the Mamirau sustainable development reserve. The Mamirau sustainable development reserve is located where the Solimes and Juru Rivers come together, and is one of the success stories of participative management of natural resources coordinated by local and scientic communities. Arapaima lakes are monitored and shed on a rotational basis, thus preventing local overexploitation (Castello 2004; Queiroz & Crampton 1999). A further benet of this system is price regulation, which results in a higher local Fishermen trying to catch an Arapaima in Cocha El Dorado / Peru income from fewer harvested sh. Because of the success of this participatory system, this management strategy has been approved in other parts of the Amazon basin, including Fonte Boa and the So Miguel Island communities. Arapaima aquaculture The breeding and farming of Arapaima in Peru, Brazil, Columbia, Bolivia and Guyana is currently poorly developed. The reproduction of Arapaima is only possible in outdoor ponds where shes can spawn naturally. Small ponds of 1000 to 5000 m2 are seeded with a density of one animal per 300 m2. Each couple can typically produce around 1000 ngerlings per spawning. Arapaima are usually bred in polyculture outdoor ponds with forage shes like Tilapia, Pacu or Gamitana.
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In Peru the IIAP (Instituto de Investigaciones de la Amazonia Peruana) and in Brazil the INPA (Instituto de Pesquisas da Amaznia) have researched natural reproduction and growout in ponds and cages for many years. Their research has shown the exceptional qualities this sh possesses for farming purposes. Arapaima has an exceptional growth rate reaching no less than 10 kg in one year. Its ability to breathe air is also an important advantage in rearing this sh at high densities. INPA has shown that a productivity of 2.5 kg of sh per sqm was feasible (Pereira-Filho 2003) in intensive monoculture. Up to now, the breeding of Arapaima has been considered by local authorities as a way to avoid overexploitation and to improve the livelihood of Amerindian minorities. The lack of knowledge in reproducing Arapaima in a more intensive and predictable manner is the bottleneck which has hindered the development of Arapaima farming on a larger scale. Furthermore, the limited number of Arapaima ngerlings produced is shared among local farmers and ornamental sh exporters. For this reason, only a few Arapaima farming projects exist, primarily in Peru and Brazil. Current production is limited and Arapaima are sold locally. Nevertheless, more and more private investors are showing interest in this sh due to its huge potential and exceptional breeding qualities.

A big catch in Cocha El Dorado / Peru

Fingerlings produced and trained to feed on articial feed at the IIAP of Pucallpa / Peru

Arapaima is reproduced in Taiwan, Thailand and Indonesia in outdoor natural ponds solely for ornamental or sporting purposes.

2.3.

International protection of Arapaima and CITES status

Arapaima gigas was added to appendix II of the CITES (the Convention on International Trade in Endangered Species of Wild Fauna and Flora) convention in 1975. Its exploitation is therefore strictly regulated and controlled. CITES, which is an international agreement between Governments, was created in 1960 to ensure that the survival of endangered specimens of wild animals and plants would not be threatened by trade. The 169 participating countries have to implement their own domestic legislation to ensure that CITES is respected at national level. All import, export, re-export and introduction from the sea of species covered by the Convention have to be authorised through a licensing system. Each Party to the Convention must designate one or more Management Authority in charge of administering the licensing system and one or more Scientic Authority to advise them on the eects of trade on the status of the species. The species covered by CITES are listed in three appendices, according to the degree of protection they need. Arapaima gigas is listed in appendix II and implies that: 1. an export permit or re-export certicate issued by the Management Authority of the State of export or reexport is required. (see annex II); 2. an export permit may be issued only if the specimen was legally obtained and if the export will not be detrimental to the survival of the species; 3. a re-export certicate may be issued only if the specimen was imported in accordance with the Convention;
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Arapaima farmed in outdoor ponds at the IIAP of Pucallpa / Peru

Arapaima produced by a private farm in Tarapoto / Peru

Arapaima produced in cages in the Laguna de Imina by the IIAP of Iquitos / Peru

4. in the case of a live animal or plant, it must be prepared and shipped to minimise any risk of injury, damage to health or cruel treatment; and 5. no import permit is needed unless required by national law (see annex II).

3.

CITES Trade statistics analysis, current status of global Arapaima trade

Within the Convention, the establishment of statistics recording all export/imports from the member countries gives a complete overview of the Arapaima trade and that of its derivative products. All gures of this chapter are based on the trade statistics 1977-2004 of the CITES.

3. 1.

Arapaima gigas products and by-products exported and imported globally

Arapaima gigas oers a large array of export possibilities but the most exported product is not its meat, but live Arapaima for ornamental purposes and scales. Since 1977, 87,045 ornamental Arapaima and more than 2 million scales have been exported. Trade statistics 1977-2004 Cites / all products exported and recorded Product live whole sh meat scales skins quantity 87,045 38 30,868.9 2,235,848 1,909.2 1,250 units

kg scales kg

3.1.1. Arapaima as an ornamental sh

Arapaima is highly appreciated by aquarium hobbyists around the world, but due to its rapid growth and important size, the number of people able to purchase this species is limited. Nevertheless from 1977 to 2004, approximately 87,000 Arapaima were sold globally. The average price of Arapaima in South of America is between USD 15 and 20 per piece and represents a turnover of USD 1.74 million since 1977. Main exporters of living Arapaima The 3 most important exporters of Aragaima are Brazil, Colombia and Peru, where Arapaima is living naturally. Brazil leads the market with 32 % of total exports, followed by Colombia with 21% and Peru with 16%. Taiwan is ranked fourth, with 11,608 shes exported since 1982. Given that only 1,800 shes have been imported into Taiwan since 2001, we can conclude that Arapaima gigas is being produced locally. This country is well known for its expertise in aquaculture and the ornamental sh industry. The USA and Singapore are also exporters of Arapaima, but all shes were imported from the main producers and re-exported.

source: trade statistics 1977-2004 of the CITES

Evolution of living Arapaima exports Since 1981, Arapaima exports have slightly increased with irregular exports from year to year. Exports are most likely driven by the production capacity of the exporters as opposed to demand. In 2001, an important increase of exports from Brazil was observed with 13,873 shes exported (approximately 50% to China) with no indicator to the reason of this phenomenon.
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source: trade statistics 1977-2004 of the CITES

Main importers of living Arapaima Japan is without a doubt the biggest importer of live Arapaima, with 61 % of all exports since 1977. The second biggest importer is the USA, with a share of 18 %, directly followed by China with 10%. The main importers are all located in Asia, with the exception of the USA. Asian people are known for their interest in ornamental sh. Furthermore, sh in Asia is closely associated with prosperity, and a big sh at home can bring good luck to its owner (fengshui). Arowana, which belongs to the same family (osteoglossidae) and which is bred more easily, can reach incredible prices in Singapore (EUR 12,500 for a gold Arowana of 20-25 cm).

source: trade statistics 1977-2004 of the CITES

source: trade statistics 1977-2004 of the CITES

Evolution of Japanese imports of living Arapaima Since 1984 the Japanese market has imported approximately 2,500 Arapaima per year and the market, despite uctuations most likely due to irregular production, remains relatively stable.

3.1.2. The trade of Arapaima scales

Arapaima is covered with tough scales which can reach 6 cm in length, protecting the sh against caiman and other predators. Arapaima is used in many ways by local populations and scales are made into sandpaper or nail les. Amazingly, scales are one of the most important by-products exported globally. Since 1977, 2,235,997 pieces and 1,444.2 kg of scales have been exported.

source: trade statistics 1977-2004 of the CITES

Main exporters of Arapaima scales The main exporter of scales is without doubt Brazil with 96% of total exports since 1977. The USA ranks second with 4% of re-exported scales. Colombia and Peru, with 0.36 % and 0.20% respectively, are occasional exporters.

source: trade statistics 1977-2004 of the CITES

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Main importers of Arapaima scales The USA has imported 94 % of total exports since 1977. 4 % has been imported by Italy and 2% by France.

3.1.3. Arapaima meat trading

Given the quality of the esh of the Arapaima, recognised by all connoisseurs for its high quality, it was a surprise to discover that very little meat has been exported, as is known. Between 1993 and 1994, Brazil ocially exported 31 tons of Arapaima meat to the USA. From 1982 to 2001, 38 whole Arapaima have been exported, principally to Japan (25 units in 1982). No other exports have been reported. Product meat whole sh country Brazil Brazil quantity units 308,689 kg 38.00 unit
source: trade statistics 1977-2004 of the CITES

3.1.4. Arapaima skins

Thanks to its large size and long body shape, Arapaima oers good perspectives for the trade of its skin. In 1989, Brazil exported 1,250 skins to the USA; no other exports have been recorded since.

Main tendencies and perspectives 1. Arapaima meat is not currently globally exported. Peru could be the rst. 2. Arapaima as an ornamental sh could probably be an alternative for future Arapaima ngerling producers and must not be neglected. 3. Scales and possibly skins are an important by-product and further research is necessary to explore this market.

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4. Buyers interest and requirements / analysis of the survey sent to Swiss, French and UK buyers.
In order to evaluate the interest of sh buyers for Arapaima, we prepared a short presentation on this sh and on the main characteristic of its meat, illustrated with some pictures of the whole sh and llets (see Annex II). The presentation was complemented with a short questionnaire. The questionnaire was available in English, French and German and sent to 81 Swiss buyers, 196 French buyers and 120 UK buyers, chosen among importers, supermarket chains and retailers (complete list available on demand). In order to receive the maximum number of answers, the questionnaire remained short with a stamped-addressed envelope enclosed. The level of response was high in Switzerland at 32%, but rather low in France and UK with 6% and 5 % respectively. The higher Swiss rate could be explained by the fact that the author of the survey was well known to the buyers. The number of positive answers (willing to buy Arapaima) was 74 % in Switzerland, 55 % in France and 67% in the UK. The questionnaires received have been analysed and the results are as follows.

4.1.

Farmed or wild Arapaima

Buyers were questioned on their preferences regarding the origin of the sh: wild or farmed Arapaima. Often consumers have a bad perception of farmed animals and often prefer an animal caught in the wild to avoid antibiotic residues. Fish buyers didnt show this tendency, and the majority of them were not concerned about the origin of the sh, particularly in UK. In France, some buyers even preferred Arapaima from aquaculture, due to a more stable supply and better sustainability. Only in Switzerland did some companies prefer wild Arapaima; for Swiss consumers it is still a criterion of quality (no antibiotic residues).

source: mailing to sh buyers CH/F/UK 2005

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4.2.

Whole or processed Arapaima

Buyers were questioned if they prefer to buy whole Arapaima, llet or both products. The results were quite similar between Swiss, French and UK buyers, with approximately 50 to 59 % of buyers only interested in llet, and between 50 and 33% interested in both products.

source: mailing to sh buyers CH/F/UK 2005

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4.3.

Whole Arapaima fresh or frozen

Buyers were questioned on their preferences regarding their preferences in buying whole Arapaima. Between 42 and 75 % of the buyers were only interested in frozen products and between 25 to 50 % were interested in fresh or both (fresh and frozen).

source: mailing to sh buyers CH/F/UK 2005

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4.4.

Fillet fresh, frozen or smoked

Preferences are quite similar in France and the UK, with roughly half of the interviewed buyers preferring only frozen llets, a quarter willing only fresh llet and a quarter interested in both. In Switzerland 62 % are interested in both and 38 % only in frozen llets. Buyers were questioned about smoked Arapaima. 75 % of UK buyers answered positively, 31 % in Switzerland and 20 % in France.

source: mailing to sh buyers CH/F/UK 2005

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4.5.

Fillet portion or whole

For this question all buyers were unanimous with between 67 to 75 % preferring a portion of llet. The majority would like portions from 150 to 200g and blocks between 1 and 4 kg each.

source: mailing to sh buyers CH/F/UK 2005

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4.6.

Aordable price

It was important to get some idea about an aordable price for this product on the markets. In general, Swiss buyers readily agreed to answer this question based on pictures of the Arapaima meat. Unfortunately, it was not possible to make a presentation with samples of Arapaima. The price varied from USD 4.55 to 12.7 per kg of frozen llet with an average of USD 9.8. The dierence came from the type of buyers interviewed. The two supermarket chains that answered this question both proposed a price of USD 11.40. Few French buyers answered this question arguing that it was not possible to quote the product without samples. The supermarket chain Auchan, to which we had sent a sample of Arapaima in a previous survey, said they would be able to charge EUR 8 to 10 per kg. We also received a few answers from UK. The supermarket chain Sainsbury said they would be able to sell Arapaima at a retail price of GBP 9.99 (USD 17.13) per kg of llet. Another buyer said that the aordable price would be the same as Nile perch.

4.7.

Aordable quantity

Buyers were interviewed about the quantity they could possibly import. It was a dicult question given that in general buyers do not want to answer such questionnaires without having the chance to test the product. However, the rate of answers received was quite good, especially in Switzerland. The majority of buyers said they would buy from 1 to 20 tons of llet per year in order to initially test the market. Only one company would be interested in 200 tons per year. The nal results in Switzerland gave the following quantities: Frozen llets Whole Arapaima Smoked 243 tons / year 6 tons / year 0.1 tons / year

In France, two supermarket chains said they would commit themselves to 50 tons of llet (Auchan) and to between 10 to 100 tons of llet per year (Intermarch). No UK buyers answered this question.

4.8.

Organic or eco-friendly label

Consumers are more and more sensitive to environmental and sustainability issues. Therefore buyers were asked the question about the importance of product labelling. The large majority of the buyers said they preferred a product with a label. It was a surprise to see that in Switzerland, where consumers are known for their interest in organic and eco-friendly products, 33 % of the buyers were not interested in labelling. This could be explained by the reason why some of these buyers were only working with restaurants that were less concerned by this problem. It was also a surprise to discover that all buyers from France and the UK without exception were interested in certied products.

source: mailing to sh buyers CH/F/UK 2005

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source: mailing to sh buyers CH/F/UK 2005

4.9.

Premium

The certication of products is restricting for the producers and always implies higher production costs. In order to compensate, certied products are always paid with a premium varying among products from between 20 and 100%, and sometimes even higher. In general, this premium is well accepted in countries like Switzerland where this market is well developed and where people can aord it. The results of the questionnaire conrmed this fact with 58 % of the buyers willing to pay a premium for such a product. In France and the UK the percentage of buyers who agreed to pay a premium decreased to 20 % in France and 25 % in UK.

We believe that these results reect a general tendency for certied products. In the future producers must see certication as a marketing strategy to help them to dierentiate their products in markets. However, this cannot be seen as a solution to get a better price for their products.

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source: mailing to sh buyers CH/F/UK 2005

Main tendencies and perspectives 1. Wild and farmed Arapaima are both appreciated, with no discrimination against farmed Arapaima. 2. Portions of IQF llet are preferred and this is an essential condition to be able to export large quantities to Switzerland, France and the UK. 3. Smoked llet: this option must be explored given the relatively high rate of positive answers. 4. Aordable average price for frozen llet ranges from USD 9/kg for importers/wholesalers and approximately USD 12/kg for supermarket chains in Switzerland. Same prices can be expected from supermarket chains in France. Lower prices can be expected from big importers in France and the UK (EUR 4.5 to 5.0). 5. A label (organic or eco-friendly) is a must but a premium could only be expected in Switzerland. Labelling must be considered as a marketing strategy in France and UK.

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5.

The sh markets in Europe and Switzerland

The knowledge of each market as well as future developments is important and key to the successful introduction of Arapaima as a new product.

5.1.

General trends of sh consumption

The new European consumer is young, has a relatively high purchasing power and is open to new cooking tendencies. They are attracted to exotic cooking and have less and less time to cook at home. Consequently there has been the development of convenience food and exotic ready-to-eat products. The market share of frozen value-added products is constantly on the rise. On the other hand, the percentage of the elderly population is increasing and the market dedicated to seniors is growing too. Seniors prefer to buy fresh sh. General sh consumption in Europe continues to grow in France and Italy, and it has been relatively stable for 10 years in the UK, Germany, Switzerland, Belgium and Holland. However, all these markets have seen an important increase in value-added products. We also saw an important shift in the distribution scheme: the progressive change in role of importers and wholesalers who no longer act solely as intermediary but as developer of new value-added products for supermarket chains. Supermarket chains such as Delhaize, Wall-Mart or Sainsbury are oering more and more elaborated products based on a select number of low-value species. Commercial catering becomes an interesting outlet for high-value species. The development of labels to inform consumers on environmental or social issues (organic and fair trade) are on the increase. This is a direct consequence of all the scandals (dioxins, antibiotics, ESB) which have aected consumers recently. Many private and state-owned labels already exist, but important supermarket chains are also developing their own labeling system in parallel.

5.2.

Swiss, French and UK Market perspectives for sh in general and freshwater sh in particular

In order to get a clear overview of the Swiss, French and UK markets we analysed the trade and customs statistics of the Swiss Customs Oce through the data bank of Swiss-Impex (https://swiss-impex.ssl.admin.ch) and the online trade statistics of the European Community EUstats (http://europa.eu.int/comm/trade/issues/global/).

5.2.1 The Swiss market

Over the centuries, the Swiss have never been big sh eaters. However, the somewhat recent development of the sh market in Switzerland in the last 50 years has mainly been due to the surge of immigrants from Italy, Spain and Portugal in the middle of the last century. Since this period, the Swiss have become bigger sh eaters. They also travel a great deal and have learnt to appreciate sh from all around the world. Nevertheless, Swiss consumers prefer sh with white esh and a very mild taste. This is in contrast to Southern European consumers who eat sea sh and prefer products with a more distinctive taste.

In 2004, Switzerland imported 26,000 tons of sh (whole and llets fresh, frozen). Since 2000, the sh market has been rather stable and has seen an increase of just 2.56%.

source: Swiss-Impex 2000-2004

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In 2004, the majority of imported sh in Switzerland was in the form of fresh and frozen llets with a share of 56 %, followed by frozen raw sh with a share of 33%. It is no surprise that Swiss consumers prefer llets. The Swiss consumer has high purchasing power and prefers to buy ready-to-eat, high-quality products. In this regard, the Swiss market is often seen as a good indicator of the future evolution of other European markets, indicating future trends. The high percentage of certied products compared to other European markets is a good example of this.

source: Swiss-Impex 2000-2004

Freshwater sh The freshwater sh imports have shown the strongest increase since 1994 among all imported products. Between 1994 and 2004, imports grew 63 %, and since 2000, 21%. The Vietnamese Pangasius is very popular in Switzerland due to its white esh and its mild taste. Nile perch has also been introduced to the Swiss market but its success has been jeopardised by environmental issues. Supermarket chains like COOP that have removed this product from their shelves following the press scandals and the recent movie made by a Swiss screen writer on the Nile perch industry (http://www.darwinsnightmare.com).

source: Swiss-Impex 2000-2004

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source: Swiss-Impex 2000-2004

5.2.2 The French market

French consumers are known for their love of sh, especially sh originating from the south of France. In 2004, France imported approximately 564,000 tons of sh (fresh, frozen and llets). This is the biggest sh market among the three countries we examined in this study. The sh market has grown 25% since 2000, despite the drop of imports in 2002 following the events of September 11.

source: EUstats 2000-2004

In 2004, France imported a majority of sh llets with a share of 48 % of all imports. Imports of fresh raw sh represents an important share too of 39%.

source: EUstats 2000-2004

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Freshwater sh In 2004, France imported 19,800 tons of freshwater sh representing 3.5 % of total sh imports. Between 2000 and 2004, freshwater sh imports grew by 87 %, approximately three times the increase of total imports.

source: EUstats 2000-2004

Fresh and frozen llets represent a majority of total imports with shares of 50 % and 19% respectively.

source: EUstats 2000-2004

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5.2.3 The UK market

Despite the fact that UK inhabitants are not known to be big sh eaters, in 2004 they imported a total of 333,000 tons of sh. Since 2000, the market has been in a state of uctuation. Since 2001, the UK market for sh has seen a signicant drop, probably inuenced by the known international events. Since 2000, the market has increased by 17.6%.

source: EUstats 2000-2004

The market share of imports in 2004 show a similar pattern to the French market, with 50% of total imports represented by fresh and frozen llets.

source: EUstats 2000-2004

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Freshwater sh
The freshwater market in the UK is surprising, with a sharp and continuous increase of imports. Since 2000, the market has seen a progression of 95%! 13,641 tons of freshwater sh were imported in 2004, representing 4.1% of total sh imports.

source: EUstats 2000-2004

The market share of imports in 2004 reveals interesting information. Frozen raw freshwater sh represents 87% of the market, followed by frozen llets with 12% of the market.

source: EUstats 2000-2004

The following graph compares French and UK imports of freshwater sh. Both have seen a heavy increase since 2000, but the French market shows an even greater increase for 2004. The reason for this signicant increase is not unknown. In 2004, the main exporting countries responsible for this increase were the Netherlands and Uganda respectively. We can therefore conclude that it was mainly Nile perch. Uganda is one the main producers and the Netherlands is one of the main importers in Europe with companies such as Anova.

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source: EUstats 2000-2004

Main tendencies and perspectives 1. Fish imports in Switzerland, France and UK are constantly growing. Switzerland: 2.4% between 2000 and 2004 France: 25% between 2000 and 2004 UK: 17.6% between 2000 and 2004 2. Freshwater sh imports in Switzerland, France and UK have shown an important increase and are always superior to the whole sh market increase tendency. Switzerland: 21% between 2000 and 2004 France: 87 % between 2000 and 2004 UK: 95% between 2000 and 2004 3. Fresh and frozen llets are the main products imported in Switzerland and France, with 91% and 69% of total imports respectively. 4. Switzerland prefers frozen llet. 5. France prefers fresh llet. 6. UK imported mainly raw frozen freshwater sh with a share of 87%. Freshwater sh are imported from Myanmar, Bangladesh and Indonesia. We can assume that in the UK freshwater sh are most likely consumed by ethnic minorities who prefer whole sh.

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6.

Possible competitors (other countries/continents) and possible substitutes (other sh)

Where there is the goal to farm and/or exploit wild stocks of a new species, it is important to evaluate the potential competitors. There are two kinds of competitor: those with similar products already on the market, and possible future producers of Arapaima who would be able to compete in the same markets.

6.1.

Similar products on the market

The market for tropical freshwater sh in the EU is mainly shared by three products: the Nile perch (Lates niloticus) from Kenya, Uganda and Tanzania, the Basa (Pangasius sp.) from Vietnam, and the Tilapia (Oreochromis niloticus) mainly from Taiwan, China, Brazil and Ecuador. In 2004, the leader was Nile perch with 56,000 tons imported (20% more than in 2003), the second product was the Basa with 20,000 tons imported in 2004, and nally the Tilapia with a modest import of just 7,000 tons in 2003 (2004 data are still not available). Due to antidumping in the USA, Vietnam has exported the majority of its production to Europe which has greatly aected the tropical freshwater sh market. The low price of the Basa is its main advantage (EUR 2.16/kg of llet 2005 Globesh) and forced the Nile perch unit price to fall to EUR 3.43/kg in 2005.

In Switzerland, the tropical freshwater market is led by the Vietnamese Basa; the Nile perch and Tilapia have never experienced the same success as they have in Europe.

Based on discussions with sh importers, there is no doubt that the closest product on the market at the moment is the Nile perch (Lates niloticus). The case of the Nile perch is particularly interesting and can oer useful information to Arapaima producers as to how such a product can rapidly become a market leader. source: Globesh 2004 Nile perch could in fact be seen as a competitor product on the market, but it could also be considered as an opportunity for Arapaima producers to partially replace a product.

6.1.1 The Nile perch (Lates niloticus) case

Nile perch (Lates niloticus) are large freshwater sh found in the rivers and lakes of Africa. The Nile perch were introduced to Lake Victoria in the late 1950s, where they have been commercially shed ever since. The introduction of Nile perch to Lake Victoria and several other lakes in Africa caused severe devastation and has led to the loss of many native species. The three main bordering countries of Lake Victoria are Tanzania, Kenya and Uganda. These are the main exporters of this sh to Europe providing a major source of revenue for local shermen, processors and exporters. Nile perch is now accepted by consumers in many European markets as a regular whitesh product with the exception of the United Kingdom. Nile perch is imported to Europe through Belgium and the Netherlands, the main importers. Nile perch is re-exported mainly to Spain (the biggest market in Europe) and Portugal where it is headed and gutted and to Italy, Germany, Austria and France as llets. Nile perch is mainly exported fresh; out of 36,200 tons exported in 2003, only 9,000 tons were frozen. Weekly consumption in Europe is estimated between 600 to 800 tons of llet. Since 1997, the exports from Tanzania, Uganda and Kenya have grown by 80% reaching 45,000 tons of llets exported to Europe. In 1999, exports dropped to 8,433 due to an EU ban, but since then have rapidly recovered.
27

The value of Nile perch llet reached nearly EUR 5.00 in 2002 and dropped to EUR 3.20-3.00 in August 2004 (wholesale price EUR 4.50 to 5.00) due to competition with cheap products, such as Pangasius from Vietnam (EUR 2.50/kg). Nile perch are mainly sold in supermarket chains in retail packs of 200 to 400g at the high price of EUR 20/kg. Market perspectives It is believed that Nile perch imports in the EU continue to grow, but increasing competition with low price products from Asia (Pangasius, Tilapia) could impair this. Environmental issues can signicantly aect the marketing of this sh, and the recent movie, entitled Darwins nightmare by Hubert Sauper showing the tracking of weapons and prostitution associated with the trade of Nile perch, will probably also aect exports considerably. The supermarket COOP in Switzerland has already stopped selling this product following customer complaints. In this regard, the discussion we had with Auchan, the French supermarket chain, about Arapaima was very interesting. Auchan currently imports 1,000 tons of Nile perch llets per year and is looking for a product to substitute Nile perch caught in the Oubangui river it due to the problems of future in the Republic of Central Africa sustainability and supply. Auchan informed us that Arapaima could be the product they are have been looking for if supply can be guaranteed.

source: Globesh 1997-2003

source: Globesh 1997-2003

28

6.1.2 The case of Basa (Pangasius sp.)

The river catsh Basa is farmed in Vietnam in the Mekong River located in the An Giang province. Fish are farmed in cages or enclosures directly in the Mekong at high densities (80-100 kg/m3). Basa reaches 1 to 1.5kg with 8 months of intensive culture. Basa farming is rapidly expanding and in the rst 9 months of 2005, Vietnam exported 89,300 tons of sh which generated USD 212.3 million (globesh.org). This represents a 58% increase compared to the same period of 2004.

Pangasius breeder in Long Xuyen / Vietnam

Pangasius farmed in an enclosure in the Mekong An Giang Province / Vietnam

37.3 % of its production is currently exported to the EU and it is believed that this share will continue to grow. The main advantage of Basa is its low price which has a big impact on the Nile perch and Tilapia market. The price of Nile perch decreased from EUR 5/kg in 2002 to around EUR 3/kg in 2004. Basa producers now need to invest to update their processing and exporting facilities in order to meet EU requirements in terms of food safety and traceability, which will probably aect prices in the future. Basa producers are also intending to propose new value-added products; the rst organic Basa farms were certied by Naturland in 2004.

Tilapia (Oreochromis niloticus) farmed in Benin / West Africa

29

6.1.3 The Tilapia (Oreochromis niloticus) case

Tilapia is a market leader in the USA where it reached record highs in 2004. In the EU ,Tilapia is beginning to grow, but unfortunately the huge increase in Basa imports have hindered its development. According to globesh.org investigations, the main markets in Europe seem to be the UK and, to a lesser extent, France and Belgium. Imports are mainly whole frozen sh, but llet imports are increasing. Taiwan and China are the main importers. The imports have been rather stable since 2001, with approximately 7,000 tons. Data are still not available for 2004, but the imports are believed to have decreased due to strong pressure from Basa imports. The Tilapia market in Europe was estimated at 10,000 MT per year, but its development will most likely be jeopardised by Vietnamese imports.

6.2.

Status of the Arapaima gigas aquaculture outside Peru

6.2.1 Arapaima farming in South of America

Information on Arapaima farming projects in Brazil, Colombia or anywhere else it is farmed in its natural habitat in South of America is scarce. A project called the Clear River Aquaculture Project (Projeto Rio Limpo) was launched in Brazil to farm Arapaima in cages by an entrepreneur in the region of Campo Grande, but the project seems to have failed. In 2002, a British company called Superfresh Ltd advertised Arapaima imports from Brazil on the web. This company was contacted for a quotation for such imports, but they gave no response. Furthermore, no imports appeared in the CITES statistics. The problem encountered in Peru to produce ngerlings on a regular basis is probably faced by all farmers in this area and is preventing development on a larger scale.

6.2.2 Arapaima farming in the rest of the world

Arapaima are produced in Taiwan (11,608 Arapaima exported since 1982), Singapore and Thailand for ornamental purposes. Arapaima ngerlings are produced in outdoor ponds as in Peru. There is currently no production of Arapaima for human consumption in Asia. However, if demand continues to grow we can expect Asian farmers to begin to do so in the near future. Furthermore, atmospheric conditions in the South East of Asia are similar to those of the Amazon region. Arapaima, due to its air breathing capacity and strong growth potential, could be seen by some European or American sh farmers as a good candidate for intensive breeding in a recirculating system. In Europe and the USA, some producers are equipped with sh farming facilities that recirculate the water making it possible to farm warm-water sh like Tilapia or stripped bass. Some ow-through farms exist in Europe and the USA, which re-use warm water from nuclear plant cooling towers. There is a risk that in the future Arapaima will also be farmed in the northern hemisphere, but production potential would be limited to a few hundred tons and production costs would be much higher.

Main tendencies and perspectives 1. Arapaima can be compared to tropical freshwater sh, which are already on the EU and Swiss markets. These products are Nile perch, Basa and Tilapia respectively. 2. These products are well established on the markets and benet from being sold at a very low price. The quantity imported is considerable and will continue to increase. 3. The market leader, Nile perch, is under stress due to environmental and social issues linked to its production in Africa. 4. There is a risk that in the future Arapaima will not only be produced in Peru but quite likely in South America, Asia and, to a lesser extent, in Europe and USA.

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7.

Arapaima farming / shery and sustainability issues

Arapaima gigas is an endangered species and is listed in appendix II of the CITES convention. Environmental issues are therefore of prime importance for the farmers and everyone involved in its exploitation and marketing. These issues can be considered as a handicap by some, but we rmly believe that the development of Arapaima production in Peru cannot be done without taking sustainability aspects into account and therefore must be viewed and marketed as such to its advantage in EU and Swiss markets. European and Swiss consumers are highly environmentally aware. The development of this awareness is a direct consequence of all the problems that the agro-industry has faced over the last few years, such as BSE of bovines, dioxin contamination of chicken, antiobiotic residues in sh, environmental pollution, and so on, all of which have signicantly aected consumer habits. Since the 1990s, another direct consequence has been the development of labels informing consumers on the method of production and quality of what they eat. The most renowned and established label is the organic one, which can only be applied to farmed animals (Naturland, Bio Suisse, AB, Soil Association, etc). Other labels exist, such as the MSC label (Marine Stewardship Council) that promotes responsible shing practices, and fair trade labels that promote fair trade and socially acceptable conditions to farmers in developing countries (FLO, Max Havelaar, Transfair, etc). All these labels are now well established in the UK, French and Swiss markets and are carried by the major supermarket chains. This has been conrmed by the high level of interest in labelling seen in the questionnaires sent to sh buyers in Switzerland, UK and France. Today, despite the growing demand of certied products, they still suer from a lack of standardisation. Each country has its own labels known by its consumers. For example, it would dicult to sell an organic product certied by a German certication body like Naturland on the Swiss market given that Swiss consumers only know the Bio Suisse label. Therefore, it is very important that the producer who wants to certify his products choose the right label for the right market. Consumers or buyers sensitivity can also vary from one country to the other. It seems that French consumers are more sensitive to social rather than environmental issues; this is not true for UK and Swiss consumers.

7.1.1 Organic labels

Organic labels only apply to farmed products and are based on the way they are produced. Organic certied aquatic organisms are reared according to rigorous animal welfare standards and given a diet of natural feed. Use of chemical, pesticides and antiobiotics are also prohibited. (For more information about organic standards: http:// www.naturland.de/englisch/n2/NL-Stand-Aquaculture_01-2005.pdf ). There are no unied procedures for organic certication for aquaculture and each country has their own regulations and labels. The majority of organic labels are private initiatives but some, such as AB in France, are state-owned labels. In Switzerland, the most recognised label is the Bio Suisse label, in France the governments AB label and in the UK the soil association label. Re-certications are possible between certiers meaning that a product certied by Naturland can obtain the Bio Suisse label due to a certiers agreement; however, this unfortunately is not always the case.

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The market for organic products For 10 years, organic certied products have been one of the fastest growing sectors of the agro-food industry. In 2002, the most important markets for organic products were (source: International Trade Center) the USA at USD 11.75 billion, Europe at USD 10.5 billion and Japan at USD 0.35 billion. In 2003, within the EU market, the UK ranked second place in the EU markets just behind Germany with an estimated turnover of between USD 1,550 and 1,750 million (source: International Trade Center). France ranked fourth place, behind Italy. with a turnover of between USD 1,200 and 1,300 million. Switzerland ranked fth, despite its small size, with a turnover of between USD 725 and 775 million but with the highest percentage of total food sales of between 3.2 and 3.7 %. The most optimistic estimates for future annual growth of organic markets for the UK, France and Switzerland are between 5 and 15 % per year. Sales channels for organic products At the beginning of certication, a product certied as organic was mainly distributed at farm gates or in small specialised shops. However, with the increasing success of this sector, supermarket chains are now the main distributors of these products. In Switzerland, 75 % are distributed by two of the biggest supermarket chains (50% Coop and 25% Migros respectively). In France 42% were sold through retail chains, 28 % through specialised organic shops, and 23 % through weekly markets and direct sales. In the UK, 80% is sold by retailers, 11% by Independant/ Health Food shops and 9 % through local and direct sales (source SIPPO/FiBl).

source: SIPPO/FiBl

Consumer prole Buyers of organic products are well educated and economically well-o. The motivation of these consumers is driven by environmental concerns and health issues, as shown in the following graph. In Switzerland ,17% of customers purchase organic products several times a week, 38% of consumers purchase organic products at least once a week, 28% less than once a week and 17% never buy organic products.
food scandals

9 11 18 31 34

support producers

not harmful to environment

taste/quality

humane animal husbandry

health

46 51
0 10 20 % of interviewees 30 40 50

fewer chemicals/toxins

source: COOP/Benguerel

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Organic aquaculture status Organic labels were originally only applied to agricultural products. However, given the increasing interest in aquaculture, many initiatives have been launched to certify sh, shrimp and shellsh around the world. The volume of certied products is still low, and organic aquaculture is still in its infancy. Salmon is currently the most certied of products on the organic market.
Certified organic farms/farmers fgroups [n] 1)

Area [ha]

Production [t] 2)

Market

Salmon (Ireland, Scotland)

6 (2 groups)
n. a.

5.000

Domestic markets, Austria, Benelux, France, Germany, Switzerland, (USA)

Carp and Trout (Austria, Germany, Switzerland, UK)

ca. 40

400

500

Domestic markets, Switzerland

White Shrimp (Ecuador, Peru)

9

2.000

1.000

Germany, Switzerland, UK

Black Tiger Shrimp (Indonesia, Vietnam)

2 (>300 farm units)

2.200

500

Sweden, Switzerland

Black Tiger Shrimp (Thailand) Microalgae (USA, Taiwan a.o.) Mussels (Ireland, New Zealand) Sea bass and- bream (France) < 500

Europe, USA

2)

1) without hatcheries for shrimp: head-on; for fish: round weight

source: Naturland 2005

Naturland, the German organic certication body, is currently the most advanced regarding certied aquaculture. Nevertheless, other organic certication bodies, such as AB in France, Soil Association in the UK, Bio Suisse in Switzerland and Biogro in New Zealand, among others, also have certied aquaculture products.

7.1.2. Other labels

The Fairtrade label Consumers are not only sensitive to environmental issues but also to social problems encountered by small producers around the world. Many associations like Max Havelaar, FLO, Transfair and World Shops are oering fair trade certication of products like coee, tea, cocoa, fruits and honey. Currently no products from aquaculture or sheries are certied under these schemes, but the interest is there and FLO is now working on a possible certication for shrimp farmers. This kind of certication is particularly well adapted for small-scale farmers and artisanal shermen, and could be also considered for the case of Peru. The combination of both certications, organic and fair trade, can make a product more attractive to EU consumers. Marine Stewardship Council (MSC) label The MSC is an independent, non-prot organisation set up to nd a solution to the problem of over shing. MSC was created by Unilever, the biggest buyer of sh in the world, and WWF. Its goal is to promote sustainable and wellmanaged sheries. Standards have been developed with scientists, sheries experts, environmental organisations and are based on the following principles:
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Principle 1 The condition of sh stocks. This examines whether there is enough sh to ensure that the shery is sustainable. Principle 2 The impact of the shery on the marine environment. This examines the eect that shing has on the immediate marine environment, including other non-target sh species, marine mammals and seabirds. Principle 3 The shery management systems. This principle evaluates the rules and procedures that are in place, as well as how they are implemented, to maintain a sustainable shery and to ensure that the impact on the marine environment is minimised. Today, 223 products bear the MSC label in 24 countries. Fisheries such as Alaska Pollock Bering Sea and Aleutian Islands, Alaska salmon, Burry Inlet Cockles, New Zealand Hoki, Loch Torridon Nephrops, Mexican Baja California Red Rock Lobster, South African Hake, South Georgia Toothsh, South West Mackerel Handline, Thames Herring and Western Australian Rock Lobster have been certied. MSC has never certied freshwater small-scale sheries and the certication of wild Arapaima would be certainly attractive to the producers, as well as to MSC. The BioTrade Initiative This program was launched by the United Nations Conference on Trade and Development (UNCTAD) in 1997 following the new challenges set by the Convention on Biological Diversity (CBD). Dierent programs and national initiatives have been launched since then on three continents involving companies that produce sustainable BioTrade products such as owers, cocoa, ingredients and ornamental sh. The program has developed a set principles that BioTrade products need to full as follows: 1. Conservation of Biodiversity. 2. Sustainable use of biodiversity. 3. Equitable sharing of benets derived from the use of biodiversity. 4. Socio-economic sustainability (management, production and markets). 5. Compliance with national and international legislation and agreements. 6. Respect for the rights of actors involved in Biotrade activities. 7. Clarity about land tenure, use and access to natural resources and knowledge. As mentioned in the discussion paper elaborated by Pi Environmental consulting 2006, the producers taking part in the program have expressed their willingness to be recognised by the market for their eorts as this is currently done through a conventional certication program. Given that it would be dicult for a new label to establish itself in the market among the multiple labels that already exist, it would more cost eective and meaningful to rely on existing certication schemes such as organic, fair trade, and so on. Today, it is particularly dicult for a producer to choose the right label given that market and buyer requirements can vary considerably between countries. Furthermore it is not unheard of for a buyer to ask for two labels on the same product, such as organic and fair trade. It is particularly expensive and dicult for a producer to achieve this goal. The BioTrade Principles cover all aspects of existing labels with a varying range of compatibility, depending on the product, as mentioned in the Pi study.

34

The BioTrade Initiative, in search of ag-ship products, could use Arapaima in the shery sector and develop BioTrade guidelines compatible with the organic and fair trade certication, for example. It would be particularly useful for producers to full only one set of requirements allowing multiple certication at once. Development of such guidelines is possible as demonstrated by this study with the technical guidelines established for scallop farmers in Peru that are recognised by Naturland. This kind of initiative could be easily accepted by existing certication organisations, without creating competition in the markets and beneting from their existing image.

Other labelling options

Naturland the German organic certier is currently willing to develop guidelines for sustainable small-scale sheries that could be also an option for Arapaima shers. Important supermarket chains in Europe and Switzerland (Carrefour, Auchan, COOP, Migros, etc.) are developing their own label and internal guidelines to promote sustainable products within their shops. Such a partnership could be also envisaged by Peruvian producers. We strongly believe that from the outset Arapaima producers must showcase their products as sustainable and responsible products. Arapaima will have to compete with products such as Nile perch (Lates niloticus), Vietnamese Basa (Pangasius sp.) and Tilapia (Oreochromis niloticus). All these products are caught in the wild or farmed industrially in a non-responsible way (except for a few producers that are already certied) and are sold at a price which makes it dicult for Arapaima producers to ensure long-term sustainability. This is actually an opportunity to enter the market with an attractive product which could be sold at a higher price.

Main tendencies and perspectives 1. Arapaima gigas is an endangered species and is listed in appendix II of the CITES convention. Environmental issues are therefore of prime importance. 2. Sustainable and environmentally friendly products are demanded by the EU and Swiss markets. 3. Arapaima will have to compete on the EU and Swiss markets with cheap products such as Nile perch and Basa. A certication will improve the competitiveness of Arapaima. 4. A certication can help to obtain a better price on the Swiss market and to a lesser extent on French and UK markets.

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8.

EU and CH import requirements and formalities / tari and non-tari barriers (all necessary resources and addresses can be found in Annex III) EU imports requirements and formalities

8.1.

8.1.1. Tari and duties applied by the EU for imports from Peru
Third country duty The third country duty is the normal Community rate applicable to imports from third countries. The third country tari is 8% but in the case of Peru it is reduced to 0%. Peru is a founding member of the Andean Community Free Trade Area, which it rejoined in 1997 after a period of 5 years absence. However, the country is not yet a full member of the free trade area. The EU and the Andean Community have a Framework Agreement for cooperation, signed in 1993. Since 1990, the countries of the Andean Community have enjoyed preferential duties for their exports to the EU for making eorts in the ght against drugs. These preferences were later extended to the Central American countries. Nearly 90% of Andean and Central American products, including textiles and most agricultural products, enter Europe duty-free. Additional information can be found on the TARIC database from DG TAXUD. (http://europa.eu.int/comm/taxation_customs/dds/en/tarhome.htm). Value added taxes (VAT) For the United Kingdom A tax rate of 0% applies to sh, crustacean and mollusc t for human or animal consumption. A tax rate of 17.5% applies to ornamental sh, sh for aquaria and products which are unt for either human or animal consumption. For France A tax rate of 5.5 % applies to sh, crustacean and mollusc t for human or animal consumption, as well as ornamental sh, sh for aquaria and products which are unt for either human or animal consumption. 8.1.2. Non-tari legal requirements 8.1.2.1 General formalities in the UK and France Arapaima intended for human consumption For all imports of Arapaima intended for human consumption in France and the UK (procedures are harmonised within the EU) the following requirements apply: CITES-endangered species listed in Appendix II The following procedures must be carried out: 1. An export permit must be issued by the competent authorities of the country of export. 2. A copy of the export permit must be forwarded to the EU importer. 3. Application for an import permit, attaching the copy of the export document, to the relevant EU CITES Management Authority (see Annex II for addresses). 4. Forward the original import permit to the non-EU exporter. 5. Both export and import documents must accompany the shipment and must be presented to custom services at each border control before the shipment is introduced into the EU. Health control of shery products intended for human consumption The general health requirements for importing these products into the European Union (EU) are related to: 1. Country Health Approval; 2. Approved establishment;
36

3. Health certicates; and 4. Health control. Hence, these products can only be imported into the EU if they come from an approved establishment of a third country that has been authorised to export those products to the EU, are accompanied by the proper health certicates, and have passed the mandatory control at the pertinent Member States border inspection post (BIP). Peru was given country health approval for the export of shery products to the EU (and by extension the EEA) in 1995, via Commission Decision 95/173/EC, which was published in Ocial Journal L 116 of 23/5/0995, page 41. The health certicate is set out in the Annex of this Decision and the original list of approved establishments in Annex B. The current list of approved establishments, last updated 15/7/2005, is available on the website: http://forum.europa.eu.int/irc/sanco/vets/info/data/listes/11pe.pdf. Labelling for shery products Fishery products marketed in the European Union (EU) are subject to the general labelling rules for foodstus, general labelling rules for shery products and specic labelling rules for certain shery products subject to harmonised marketing standards. In accordance with the Regulation (EC) 104/2000 (OJ L-17 21/01/2000) and Regulation (EC) 2065/2001 (OJ L-278 23/10/2000), the following information must be provided on the labelling or packaging of the shery product, or by means of a commercial document accompanying the goods: 1. Commercial and scientic designation of the species. For this purpose, Member States publish a lis of the commercial designations accepted in its territory. 2. Production method (caught at sea or in freshwater, or resulted from aquaculture) indicated by the harmonised terminology 3. Catch area: Caught at sea: one of the areas mentioned in the annex to the Regulation 2065/2001; Caught in freshwater: reference to the country of origin; Aquaculture: reference to the country in which the product is farmed. Other documents are required or recommended as commercial invoice, customs value declaration, freight insurance, customs import declaration, freight documents and a packing list. Further information can be obtained from the export helpdesk for the developing countries website of the EU (http://export-help.cec.eu.int/thdapp/index.htm). Arapaima as ornamental sh Same procedures are required especially regarding the CITES formalities but normally no health certicate is required for ornamental sh.

8.1.2.2 Formalities for beneciary countries of the EUs GSP

Products originating in the beneciary countries of the EUs GSP shall benet from the preferential duty rates foreseen upon submission of either a certicate of origin Form A or, in specic cases, an invoice declaration given by the exporter. 1. Certicate of Origin Form A This document conrming the preferential origin of the goods is issued by the competent governmental authorities of the beneciary country on application. The exporter applying for the issue of this document shall be prepared to submit, at the request of the competent governmental authorities of the beneciary country, all appropriate documents proving the originating status of the products concerned. 2. Invoice Declaration An invoice declaration may be made out by any exporter for any consignment containing originating products whose total does not exceed EUR () 6,000.
37

The exporter making out an invoice declaration shall be prepared to submit, at the request of the competent governmental authorities of the beneciary country, all appropriate documents proving the originating status of the products concerned. An invoice declaration shall be made out by the exporter either in English or French by typing, stamping or printing the text which appears in Annex 18 of Regulation No. 2454/93, as amended, on the invoice, the delivery note or another commercial document. If the declaration is handwritten, it shall be written in ink in printed characters. Invoice declarations shall bear the original signature of the exporter in manuscript. 3. Period of validity of proof of origin The period of validity is ten months. Exemptions from the requirement to present proof of origin. The maximum value limit of the exemption from the requirement to present a proof of origin for small packages sent from one private person to another is EUR 500 and for goods contained in travellers personal luggage, it is EUR 1,200, always provided that such products are not imported by way of trade.

8.2.

CH imports requirements

Import requirements for Switzerland are not so dierent from those of the EU. Bilateral agreements have pushed Switzerland to harmonise its legislation with the EU. Nevertheless some dierences do exist.

8.2.1. Tari and duties applied by CH for imports from Peru

Switzerland applies for countries under the GSP (Developing countries and territories) list a tari of 0%, like the EU. Value added taxes (VAT) A tax rate of 2.4% applies to sh, crustacean and mollusc t for human or animal consumption. A tax rate of 7.6% applies to ornamental sh and sh for aquaria. 8.2.2. Non-Tari legal requirements 8.2.2.1 General formalities in Switzerland Arapaima imported for human consumption CITES-endangered species listed in appendix II Same procedures as the EU. Health certicate and approved exporters According to Article 40 of the EDAV (Swiss Veterinary Services), suppliers abroad are regarded as recognised if they are in possession of a license from an EU Member State, or in the case of third countries, certication by the EU. The license or certication numbers must be entered on the health certicates. Imports to Switzerland are only permitted from countries/regions which also satisfy the criteria for imports as laid down by the authorities for animal diseases (applicable country lists can be downloaded from http://www.bvet. admin.ch). At present, Peru belongs to the list of authorised countries. Fish imports can only be done by recognised and accredited companies by the Federal Veterinary Oce in Switzerland. A health certicate must be lled in and can be downloaded directly from http://www.bvet.admin. ch/einfuhr/00243/00247/00794/index.html?lang=en. Health control of live animals (ornamental Arapaima) In Switzerland no health certicate is necessary for ornamental sh. Labelling for shery products and other requirements The Swiss government has adopted the text of the EU regulations for food safety and the new harmonised regulations
38

will be enforced from January 1 of 2006 (for more information: http://www.bag.admin.ch/verbrau/lebensmi/lmrecht/ revisionen/f/index.htm). Arapaima as ornamental sh Same procedures are required in the EU, especially regarding the CITES formalities. However, in Switzerland no health certicate is necessary for ornamental sh.

8.2.2.2 Formalities for beneciary countries of the EUs GSP

Products originating in the beneciary countries of the Swiss GSP shall benet from the preferential duty rates foreseen upon submission of a certicate of origin Form A Generalised System of Preferences, Certicate of Origin Form A as for EU imports.

9.

Conclusions and recommendations

Arapaima gigas oers without doubt great perspectives for French , UK and Swiss markets. All buyers who had the chance to see or taste the meat of this sh were enthusiastic and highlighted its qualities (colour, texture, taste, etc). This has been conrmed by the study done by Reinaldo Udewald WECO GmbH 2006 on the German market perspectives for Peruvian farmed sh. Tasting sessions held for German consumers with samples of Arapaima, Colossoma macropum (Black Pacu) and Brachyplatistoma avicans (Dorado) have highlighted the excellent and superior quality of the Arapaima meat (color, texture, taste). Opportunities by Prompex to taste this sh during the ESE fair in Brussels in 2005 conrmed these ndings yet again. Furthermore, the majority of farmed sh oer only few possibilities to develop added-value products other than llet. Arapaima, thanks to its large size, oers many possibilities to prepare portions of dierent sizes, slices, and so on. The leading products on the EU and Swiss markets for freshwater sh are the Nile perch and the Basa. These products have the big advantage of a low selling price and it will be dicult for Arapaima producers to compete with such prices. On the other hand, the environmental and social issues linked to their production, particularly Nile perch, are being increasingly taken up by consumers. Arapaima can oer a sustainable alternative to these products, especially in Switzerland where consumers are sensitive to these issues. It is dicult to make a forecast on the potential of Arapaima exports towards Europe and Switzerland, but a target could be set to replace 10% of the current Nile Perch market share, which would represent approximately 6,000 tons of llet per year. If this hypothesis is conrmed, it will represent 12,000 tons of raw sh and a conservative annual turnover of EUR 60 to 100 million. Unfortunately, Arapaima production is still in its infancy at present and the quantity farmed or caught in the wild today is not enough to oer a realistic possibility for export on a regular basis. A constant and regular supply of Arapaima is essential for the successful development of this species in Europe. Recommendations 1. All eorts must be made to support the development of Arapaima farming and wild stock sustainable exploitation in Peru to increase exportable quantities (technical support to breeding centres, improvement of processing facilities, training of exporters on EU and Swiss food safety requirements and so on). 2. All Arapaima producers in Peru must work closely together to be able to reach the minimal quantity needed to export to Europe and Switzerland as soon as possible. A producer association could be created to coordinate eorts. 3. As long as a minimal exportable quantity has not been reached by Arapaima producers, no more advertisement on international fairs and magazines should be done in order to avoid tarnishing the credibility of producers and disappointing future customers. 4. Information gathered on prices that European and Swiss buyers can aord must be used to carry out a feasibility study using the actual production costs. Discussions with actual Arapaima producers should give us information about the viability of the project and about the current constraints and prioritorisation of eorts and investments. 5. It is strongly advised that when the minimal quantity of exportable Arapaima is reached that the Swiss market be targeted rst where a higher price is expected to be achieved. This situation will favour the take-o of Arapaima
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production in Peru. 6. Development of Arapaima production in Peru can only be done in a sustainable way. National initiatives must be enforced by governments to avoid negative environmental impacts. 7. From the outset, Arapaima producers must create the image of their product as responsible and sustainable in international markets. The development of a certication program at a national level would be necessary and could be done using the framework of the BioTrade Initiative. The protection of the Amazon eco-system must be used as a marketing strategy. 8. Currently the most popular label on the market, and especially in Switzerland, is the organic one. It is therefore suggested that guidelines be developed within the framework of the BioTrade Initiative allowing an organic certication for farmed Arapaima and those caught in the wild with certication bodies like Naturland and/or Bio Suisse. At present, this would be easier given that no standards have been developed for this species and organic certication bodies like Naturland have already expressed their interest in cooperating. 9. A joint approach, together with all the countries where Arapaima naturally inhabits, such as Brazil, Columbia and Peru for example, would facilitate the development of the breeding, management and conservation of Arapaima. A Trans-Amazonian program could be established with the assistance of UNCTAD and its BioTrade Initiative.

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Annex I
Literature cited: Castello, L. (2004) A method to count Arapaima Arapaima gigas: shers assessment and management. N. Amer. J. Fish. Manag. 24: 379-389. Queiroz, H. L. & Crampton, W. G. R. (1999) Estrategias para Manejo de Recursos Pesqueiros em Mamiraua. Braslia, Brazil: Socieded Civil Mamiraua MCT-CNPq. Pereira-Filho, M. et al. (2003) Arapaima gigas: Notas Sobre Seu Cultivo No INPA. Seminario Taller Internacional de Manejo de Arapaima o Arapaima. Iquitos Peru 21 al 24 de abril de 2003, pp.93-109. Udewald Reinaldo (2006). Potential de consumo de pescado de la acuicultura peruana, mercado alemania. Weco Consult GmbH. Vallejo Nancy, Hauselmann Pierre (2006). The BioTrade Initiative and Verication / Discussion paper for dialogue on verication of BioTrade Products and Services.

For further reading: Overview of Organic Markets: An opportunity for Aquaculture Products? Globesh research program. Volume 77 (more information at www.globesh.org). The organic Market in Switzerland and the European Union / SIPPO and FIBL. (More information at www.sippo.ch).

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Annex II: Important documents

Peruvian ruling on Arapaima hunting.

42

Example of Swiss CITES authorisation

43

Example of certicate attesting to the farmed origin of Arapaima produced in Peru.

44

Example of CITES authorisation given by the Peruvian government.

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PO box 31-CH 1373 Chavornay tel/fax ++41 24 4418391 e-mail info@ichthys.ch

Description de lespce / Beschreibung der Tierart

Nom latin / wissenschaftlicher Name: Famille / Familie: nom commun / gemeinsamer Name: Habitat / Lebensraum: Arapaima Gigas Osteoglossidae Paiche (Perou) / Pirarucu (Brsil) Amazonie / Amazonien

Le Paiche est un considr comme le plus grand poisson deau douce du Monde. Ce poisson peut atteindre une taille de plus de 200 kg. Sa population en Amazonie (Perou, Brsil, Colombie) est en regression et a t depuis 1975 introduit dans lappendice II du CITES, son exploitation est donc strictement contrle. Au Prou sa capture est autorise partir dune taille de 1,6 m et seulement de mars septembre hors de la priode reproduction. Les poissons issus dlevage ne sont pas soumis restriction. Paiche wid als der grte Swasser Fisch der Welt angesehen. Dieser Ficsh kann ein Gewicht von mehr als 200 kg erreichen. Seine Population in Amazonien (Peru, Brasilien, Kolumbien), ist in Abnahme und er ist seit 1975 in Anhang II von CITES registriert, seine Ausbeute ist also streng kontrolliert. In Peru ist seine Gefangennahme ab einer Gre von 1,6 m und nur von Mrz bis September auerhalb der Reproduktionsperiode erlaubt. Die Fische, welche aus einer Zucht stammen, unterliegen keinen Einschrnkungen.

Description du produit / Beschreibung des Produktes

Apparence de la chair: lgrement rose, blanche aprs cuisson Anschein des Fleisches: leicht rosa weiss nach Kochen Texture: ferme et stable la cuisson Konsistenz: fest und stabil nach Kochen Got: lger et dlicat Geschmack: leicht und delikat Produit apparent: Perche du Nile (Lates niloticus) Verwandtes Produkt: Nile Barsch (Lates niloticus) Composition chimique / Chemische Zusammensetzung Protine / Protein 21% Graisse / Fett 5% 72 % Humidit / Feuchtigkeit

Conditionnement du produit / Aufmachung des Produktes:

Frais ou congel IQF: Frisch oder tiefgekhlt IQF:

46

portions de 300 500 g sans arte, sans peau Portionen von 300 bis 500 g ohne Graete, ohne Haut lets de 2 3 kg (taux de letage 57-60%) Filet von 2 bis 3 kg poisson entier eviscr 10 15 kg ausgenommener ganzer Fish 10 bis 15 kg Bon produit pour fumaison chaud et froid / Gutes Produkt fr heisses und kaltes Ruchern


PO box 31-CH 1373 Chavornay tel/fax ++41 24 4418391 e-mail info@ichthys.ch

Paiche lev Tarapoto /Perou Paiche gezchtet in Tarapoto / Peru

Filet de Paiche, un trs beau produit permettant toutes les prparations Paiche let ist ein sehr schnes Produkt, dass alle Varianten der Zubereitung erlaubt

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on the behalf of UNCTAD Palais des Nations 1211 Geneva 10 Switzerland tiquette entreprise

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Annex III: Resources and addresses 1. CITES

website: www.cites.org representatives: Peru: Management Authority / Autoridad Administrativa / Organe de gestion Instituto Nacional de Recursos Naturales (INRENA) Calle Diecisiete N 355 (Los Petirrojos) Urbanizacin El Palomar San Isidro - Apartado Postal 4452 LIMA 27 Tel: +51 (1) 224 32 98; 225 98 09 Fax: +51 (1) 224 32 18; 225 98 09 Email: Leoncio Alvarez Vasquez, Jefe: lalvarez@inrena.gob.pe Ing. Antonio Morizaki Taura, Intendente Forestal y de Fauna Silvestre: amorizaki@inrena.gob.pe; forestal@inrena.gob.pe Blga. Rosario Acero Villanes, Directora de Conservacin de la Biodiversidad: racero@inrena.gob.pe Ministerio de la Produccin / Vice Ministerio de Pesquera Calle Uno Oeste N 050 Urbanizacin Corpac San Isidro LIMA 27 For species from aquaculture / Para especies provenientes de la acuicultura / Pour les espces provenant daquaculture Direccin Nacional de Acuicultura Tel: +51 (1) 224 32 47 Fax: +51 (1) 224 32 47 Email: dna@produce.gob.pe For species from natural environment / Para especies provenientes del medio natural / Pour les espces provenant du milieu naturel Direccin Nacional de Extraccin y Procesamiento Pesquero Tel: +51 (1) 616 22 22 Fax: +51 (1) 616 22 22 Email: dnepp@produce.gob.pe

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France: Management Authorities / Autoridades Administrativas / Organes de gestion Ministre de lcologie et du dveloppement durable Direction de la nature et des paysages Bureau des changes internationaux despces menaces 20, avenue de Sgur F-75302 PARIS 07 SP Tel: +33 (1) 42 19 19 03 Fax: +33 (1) 42 19 19 81 Email: sylvie.guillaume@ecologie.gouv.fr (chef du bureau) stephanie.jacquet@ecologie.gouv.fr (adjointe)

United Kingdom: Management Authority / Autoridad Administrativa / Organe de gestion Department for Environment, Food and Rural Aairs (Defra) Global Wildlife Division 1st Floor, Temple Quay House 2 The Square Temple Quay BRISTOL BS1 6EB Tel: +44 (117) 372 80 17 Fax: +44 (117) 372 82 06 Email: cites.ukma@defra.gsi.gov.uk Web: http://www.ukcites.gov.uk Switzerland: Management Authority / Autoridad Administrativa / Organe de gestion Oce vtrinaire fdral Liebefeld-Bern Schwarzenburgstr. 155 CH-3003 BERN Tel: For fauna / Para fauna / Pour la faune: +41 (31) 323 81 59; 323 82 24 For Flora / Para Flora / Pour la ore: +41 (31) 323 83 99 Fax: General / Gnral: +41 (31) 323 56 86 Permit oce for fauna and ora / Ocina de permisos para fauna y ora / Bureau des permis pour la faune et la ore: +41 (31) 323 85 22 Email: For Fauna / Para Fauna / Pour la faune: mathias.loertscher@bvet.admin.ch bruno.mainini@bvet.admin.ch thomas.althaus@bvet.admin.ch For Flora / Para Flora / Pour la ore: jonas.luethy@bvet.admin.ch http://www.cites.ch

Web:
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2. Information on markets, statistics and formalities

European Union: website: http://europa.eu.int/comm/trade/issues/global/development/thd_en.htm Switzerland: Trade statistics: http://www.ezv.admin.ch and http://www.swissimpex.ezv.admin.ch:8080/~stat/ Data base is not free of access and a demand must be apllied to the authorities. Formalities and health certicates: http://www.bvet.admin.ch/index.html?lang=en Taxes and duties:http://www.tares.ch

3. Information on labels and certication

Organic certication: Naturland BioSuisse AB Soil Association Fair Trade: Max Havelaar FLO Transfair World shops Eco-friendly label Marine Stewardship Council http://www.msc.org/ Supermarket chains labels COOP Migros Carrefour http://naturaplan.coop.ch/default_de.html?&language=DE http://www.engagement.ch http://www.carrefour.fr/ccm/content/categories/a-propos-de-carrefour/fqc.jsp www.maxhavelaar.ch http://www.fairtrade.net http://www.transfairusa.org http://www.worldshops.org http://www.naturland.de http://www.biosuisse.ch http://www.agriculture.gouv.fr/spip/ressources.themes.alimentationconsommation. qualitedesproduits.signedequaliteetdorigine.agriculturebiologique_r176.htm http://www.soilassociation.org

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If you represent a community, company or a non-governmental organisation that requires assistance in developing your own BioTrade project, please contact: United Nations Conference on Trade and Development BioTrade Initiative BTFP Palais des Nations CH-1211 Geneva 10 Switzerland Tel: +41 22 917 2052 Fax: +41 22 917 0044 Email: biotrade@unctad.org Website: www.biotrade.org

UNCTAD receives funding from the Governments of the Netherlands and Switzerland for the BTFP.