PARTNERSHIP ASSURANCE MODEL INDIA - Resonance Global

PARTNERSHIP
ASSURANCE
MODEL
INDIA

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

INTRODUCTION

               ●

               ●
               ●

               ●

               ●

OVERVIEW OF THE
L. VANNAMEI INDUSTRY

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
●
●

●

●
●
●
●

REFERENCES