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EU to review ban on seafood import - Naveed Yaseen - 09-26-2009 06:20 AM
By Humair Ishtiaq
DESPITE an import ban by the European Union, the country’s seafood export has seen a 12 per cent growth in each of the last two financial years. With an EU delegation expected to visit Karachi to review the decision, things are looking even better for the industry.
Till about five years ago, as much as 50 per cent of seafood exports went to European destinations, but gradually dropped owing to lack of quality control in the local processing units which were finally de-listed by the EU in April 2007.
Out of the total volume of $194 million in 2005-06, exports to EU at $50.06 million were worth over 25 per cent. The same was the case in 2006-07 when the overall exports by the sector went down to $188.32 million. It also happened to be the last year before the axe fell. However, despite the suspension, seafood worth $211.64 million was exported in 2007-08 – a hike of 12.3 per cent over a year ago. The figure rose by another 11.78 per cent to $236.58 million in the year ending June 2009.
The increase is said to be due to the setting up of 30 new fish processing units along the Balochistan Coastal Highway – from Hub, Damm, Ormara, Pasni, Jevani and Gwadar. These units mainly export Indian mackerel to the Far East, especially to Malaysia, Indonesia, Singapore and Thailand. Some 5,000 containers of 27 tonnes each are being exported to these countries for the last couple of years.
The mackerel – locally known as the ‘Bangra’ – is now fetching more than double the price from these countries than was the case earlier, because of the higher demand. It used to sell for 0.38 euros per kilogram, but now fetches as much as 1.54 euros.
Abrar Ahmed, a leading seafood exporter, pointed out Egypt as another major market that the country has been able to locate in order to offset the EU setback. Exports to Egypt have gone up by almost 400 per cent in the last two years, he said.
Industry sources also disclose that element of ‘black export’ in the sector. It relates to the undocumented export of seafood to a neighboring country that generates around $3-4 million a year. The activity benefits boat-owners and fishermen who relay on local sales alone and often face problems in meeting even voyage costs on the basis of that revenue.
Exports to fresh destinations, increase in quantum to longtime clients and the so-called black market are the three factors that have virtually offset the negative impact of EU ban on exports. But only apparently because exporters still remember the good, old days of Euro-centric exports. They have still not overcome the loss of per unit price they have suffered in the last two years.
They point out the fact that the volume of exports has risen much more than the value of exports. Besides, there has been addition of varieties, like, say, the jelly fish. “Exporting the same volume to Europe would have taken the figures beyond $300 mark in 2008 and even further in the last fiscal,” added Abrar Ahmed. He made a particular reference to kidney shrimp which does not get a good price in other markets, but was rated pretty high by the EU.
“At best, we received half the price of our seafood exports in other markets in comparison with what we used to fetch from the EU in terms of unit price,” said another exporter who preferred anonymity.
Besides, export to EU was also considered a benchmark in other countries. “Even firms in a country like China ask for an export registration number for the EU market,” said another individual in the know of things.
The recent dispatch to the EU of a list carrying the titles of certain processing units for re-inspection, as such, has provided a ray of hope to exporters. The list cites nine units that have been upgraded by owners and brought in line with EU standards, said Moazzam Khan, who heads the Marine Fisheries Department (MFD) of the ministry of food, agriculture and livestock.
At the time of the imposition of the ban, EU veterinary inspectors had detected serious problems with the supply chain, MFD controls and processing plants. There were also issues with the standard of cleanliness at the harbour and in the fishing vessels which did not have proper refrigeration to keep the catch fresh. Under the cold chain, temperature has to be six degrees Celsius for fresh fish and -12 degrees Celsius for frozen fish. Subsequently, the EU de-listed 10 processing plants and halted the issuance of health certificates for new shipments.
The EU’s directorate of Food and Veterinary Products had submitted its 25-page findings to Pakistani authorities, which, among other issues, raised objections against the lack of traceability of the catch.
According to Mr Khan, issues related to the harbour have been taken care of. Minor, last-minute touches are under way and would be over much before the EU delegation decides to come for inspection, he added.
Some 75 vessels have been fully modernised and by the end of next month, another 140-150 would join the ranks, he said, adding that about 150 other vessels had been upgraded by private owners themselves, which means about 300 equipped and modernised vessels would be there for EU inspection.
“Our biggest achievement, however, is in terms of ensuring traceability of the catch. To day we are able to trace the area from where a fish has been caught, its timing and the boat that netted it. We are quite hopeful that the EU mission will feel satisfied and open its doors once again for Pakistani seafood exports,” said Mr Khan.
Though Pakistan does not feature on the list of planned EU inspections for 2009, a mission is expected to be here sometime next month as a special case. The MFD and the community of exporters are looking up to Federal Minister of Livestock and Dairy Development Mir Humayun Aziz Kurd who made efforts to get the ban lifted.
http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/in-paper-magazine/economic-and-business/eu-to-review-ban-on-seafood-import-199