PARTNERSHIP ASSURANCE MODEL INDIA - Resonance Global
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TABLE OF CONTENTS Introduction .3 Overview of the L. Vannamei Industry ...4 Existing Shrimp Aquaculture Initiatives in Andhra Pradesh 10 Supply Chain Maps 16 Social Dynamics Influencing L. Vannamei Supply Chains ...19 Social and Labor Considerations ..32
INDUSTRY STRUCTURE AND ORGANIZATION GOVERNMENT BODIES The Coastal Aquaculture Authority (CAA) regulates coastal aquaculture in India and was established in 2005. The CAA makes and enforces regulations on farm construction, operation, and inspection and sets standards for farm inputs and outputs. All coastal aquaculture farmers must register with the CAA, which lasts for five years. The CAA can close and fine unregistered coastal farms. Marine Products Export Development Authority (MPEDA) is a division of the Government of India under the Ministry of Commerce and Industry that is charged with promoting marine product industries, especially those focused on export markets. MPEDA regulates and ensures the quality of exports. Registration of farms with MPEDA allows farms access to stipends and extension services and enables traceability by processors. MPEDA registration, while required for exporting to Western markets, is not required for exports to China.
National Center for Sustainable Aquaculture (NaCSA) is an outreach organization of MPEDA that aims to build the capacity of small-scale aquaculture farmers. It organizes farmers into societies, provides technical assistance, and supports food safety testing. Currently there are three NaCSA extension centers in Andhra Pradesh where farmers can attend trainings and test for antibiotics. The Government of Andhra Pradesh, under the new leadership of Chief Minister Y.S. Jaganmohan Reddy, has prioritized supporting small farmers and reducing corruption. The state has its own Fisheries Policy of Andhra Pradesh 2015-2020 and is planning to launch a direct cash transfer program, Rythu Bharosa, to pay registered farmers Rs 12,500 per year. Export Inspection Council (EIC) is a government body that ensures the quality and safety of exports. It does this through five Export Inspect Agencies, four of which deal with fishery products; 24 sub-offices; 6 accredited laboratories; and 12 laboratories run by MPEDA (European Commission, 2018). Andhra Pradesh 20,103 E. Godavari 5,153 Odisha 10,384 Nellore 3,959 West Bengal 4,114 Krishna 3,832 Tamil Nadu 1,942 Guntur 2,382 Kerala 1,286 Prakasam 2,122 Gujarat 864 W. Godavari 1,997 Karnataka 311 Srikakulam 521 Maharashtra 296 Visakhapatnam 125 Others 129 Vizianagaram 12 Total 39,429 Total 20,103
SUPPLY CHAIN ACTORS Hatcheries Maintain broodstock and supply postlarvae to farms. Some hatcheries are integrated; others operate independently. In Andhra Pradesh, farmers typically visit hatcheries to test seed and then purchase directly. Small farms receive seeds via agents. Feed Mills May be owned and run by an integrated company or can be independent. They provide feed to farms via dealers and sub-dealers. Input Dealers and Sub-dealers Middlemen who purchase inputs from manufacturers and sell to farmers. Dealers and sub-dealers sell feed on credit to farmers and sometimes connect farmers to processors. Producers Farmers sell products directly to integrated processors, agents, or to traders at the local market. In Andhra Pradesh, most shrimp producers are smallholders (
ASSOCIATIONS AND CIVIL SOCIETY ORGANIZATIONS Farmer Societies are clusters of farmers in a specific geography that are legally recognized under the State Registration Act. The societies are intended to facilitate collective bargaining, reduce production costs by coordinating resources and timelines, and access technical and financial assistance. However with the rise of L. vannamei production, which has a higher price, the practical focus of societies has shifted from collective bargaining to technical capacity building. The Prawn Farmers Federation is a national association of shrimp farmers that engages with government agencies and research institutions on famer-oriented policy and development. The federation has two point people in Andhra Pradesh with whom MPEDA interacts on policy and development matters. However, the federation does not cover many actors and is minimally active in supporting farmers. The All India Shrimp Hatcheries Association is a non-governmental national association of shrimp hatcheries. The association engages with MPEDA and government bodies on policy matters through their one president, as well as regional presidents throughout the country. The association covers all species of shrimp in India and is well organized—all large hatchery producers are members. The Seafood Exporters Association of India (SEAI) is a non-governmental association of exporters that develops international trade, promotes the interests of exporters both domestically and abroad, and increases resources for exporters. The SEAI has regional offices, including one in Andhra Pradesh and is well organized and influential in India. The SEAI establishes facilities like landing centers and water treatment plants and ensures exporters have the knowledge and resources to meet safety assurance needs.
PROMINENT CERTIFICATION STANDARDS ASC currently certifies 91 farm sites in India, with the majority in Andhra Pradesh. ASC plans to continue to work with large companies to get their farms certified and extend their focus to smallholder farms in the future. Best Aquaculture Practices (BAP) certifies multiple actors in the supply chain, including hatcheries, feed mills, farm sites, and processors. Currently there are 15 feed mills, 34 hatcheries, 359 farm sites, and 90 processing facilities certified to BAP standards. Fifty-four processors are associated with entirely BAP certified supply chains.
EXISTING SHRIMP AQUACULTURE INITIATIVES GOVERNMENT NATIONAL CENTER FOR SUSTAINABLE AQUACULTURE (NaCSA) ● ● ● ●
NON-GOVERNMENTAL ORGANIZATIONS SOLIDARIDAD ● ● ● IDH, THE SUSTAINABLE TRADE INITIATIVE ● ASC IMPROVER PROGRAMME • • •
GLOBAL AQUACULTURE ALLIANCE • • PRIVATE SECTOR AQUACONNECT • • PARTIALLY INTEGRATED COMPANIES IN ANDHRA PRADESH
DEVI SEAFOOD Production Sourcing from East Godavari, West Godavari, Krishna, Prakasam, Guntur, and Nellore Processing Tanuku in West Godavari and Singarayakonda in Prakasam Certifications Two BAP, BRC, and IFS-certified processing plants, two ASC- certified corporate farms, 60 smallholder farms under BAP Group certification, two BAP-certified feed mills, one BAP-certified hatchery Export Mostly to the US, Canada, Middle East, China, and the EU APEX FROZEN FOODS Production Apex supplies 15-20% of its raw material needs though corporate farms, the remaining is sourced from smallholder farmers Processing Apex has a processing unit in Kakinada, East Godavari District and processes shrimp at Royale Marine's processing plant in Bapatla, Guntur District Certifications Apex's facilities are certified with BRC Food Grade, BAP, HACCP, and ASC SANDHYA MARINES Hatchery Sandhya Marines' hatchery in in Tuni, East Godavari District Production Sandhya's farms are located close to the processing plant in West Godavari District Processing Sandhya Marines' main processing plant is near Bhimavaram in West Godavari and an additional facility is in Chirala, Prakasam District Certifications Sandhya Marines follows BAP, BRC, and HACCP among others Export 80% of Sandhya's exports go to the US
CPF Feed CPF produces its feed for Andhra Pradesh in facilities in Visakhapatnam, Bhimavaram, and Rajahmundry (East Godavari District) Production CPF sources L. vannamei from 800-1,000 farmers in Andhra Pradesh CPF has eight corporate farms in Andhra Pradesh: five in Kakinada, East Godavari District, and three in Nellore, Nellore District Processing CPF has two processing facilities in Andhra Pradesh: one in Nellore and one in Visakhapatnam, Visakhapatnam District Certifications CPF provides assurance through BAP, HACCP, FSSC:22000, and ISO Export CPF exports its peeled and deveined products primarily to the US and EU while it exports its head-on shell-on and headless shell-on products to Japan and China Avanti Feeds Limited Feed Avanti produces feed in three facilities in West Godavari District Most input sales (70-80%) go to Andhra Pradesh, mostly to East and West Godavari. Avanti Feeds Limited is in joint venture agreement with Thai Union Processing Avanti's processing unit, which is operated by the subsidiary Avanti Frozen Foods Private Limited, is located in East Godavari District Certifications Avanti's facilities are BAP, HACCP, BRC, and USFDA certified Export Avanti exports largely to the US, European, Japanese, and Chinese markets
Growel Feed Originally a feed company, Growel Feeds Pvt. Ltd. is based in Krishna District Production Growel sources most of its shrimp from smallholders in East Godavari, West Godavari, and Krishna Districts Processing Growel has a processing facility in Krishna District, run by the associate company Growel Processors Pvt. Ltd Certifications Growel's feed mills and processing facilities are HACCP and BAP certified
SUPPLY CHAIN EXPORT MARKETS - PARTIALLY VERTICALLY INTEGRATED
EXPORT MARKETS - NON-INTEGRATED
DOMESTIC MARKETS
SOCIAL DYANMICS INFLUENCING L. VANNAMEI SUPPLY CHAINS INTERNAL SUPPLY CHAIN ACTORS INPUT PROVIDERS
INPUT DEALERS AND SUB-DEALERS
SMALL PRODUCERS SUPPLY CHAIN NETWORKS KNOWLEDGE TRANSFER RISK MANAGEMENT
FARMER SOCIETIES MIDDLEMEN
AGENTS COLLECTORS TRADERS
PROCESSORS
EXTERNAL SUPPLY CHAIN INFLUENCERS
GOVERNMENT ORGANIZATIONS NON-GOVERNMENT ORGANIZATIONS SOLIDARIDAD BEST AQUACULTURE PRACTICES
AQUACULTURE STEWARDSHIP COUNCIL TECHNOLOGY PROVIDERS
SWOT OF L. VANNAMEI SECTOR AND SOCIAL DYNAMICS
STRENGTHS Some societies are formed, and farmers share information and knowledge Large export industry with strong processors NaCSA a foundation for technical extension Technology providers work with farmers and producers on improvement WEAKNESSES Limited experience with middlemen Loss of value during handling and transportation Lack of neutral technical assistance
Inadequate antibiotic testing OPPORTUNITIES Desire to distinguish Indian shrimp Engage influential supply chain stakeholders Lead processors interested in PAM Andhra Pradesh favors pro-poor projects PAM can foster communication, collaboration, and coordination across the supply chain
THREATS COVID-19 Difficult to trace Informal antibiotics Profits and premiums don’t reach farmers PAM is still unknown to many supply chain actors
SOCIAL AND LABOR CONSIDERATIONS ANDHRA PRADESH DEMOGRAPHICS ● ● ● ● ● ● SOCIO-ECONOMIC RISKS IN ANDHRA PRADESH ● ● ● ● SOCIAL AND ECONOMIC ISSUES IN L. VANNAMEI SUPPLY CHAINS ●
● ● ● ● ● SOCIAL AND ECONOMIC BENEFITS FROM L. VANNAMEI AQUACULTURE ● ● ● ● ● ● ●
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