Rahayu Ningsih May 10, 2017 This is part of the TPSA Internship - - PowerPoint PPT Presentation

Strengthening Indonesia’s Exports of Fish and Processed Fish Products to Canada:

How do Canadian food safety standards affect Indonesian fish and processed fish product exports?

Rahayu Ningsih

May 10, 2017 This is part of the TPSA Internship Program

The aims of the presentation:

• 1. What Indonesian fish and processed fish

products are currently important or have potential in the Canadian market?

• 2. What are the standards and regulatory

challenges Indonesia faces when exporting fish and processed fish products to Canada?

• 3. How can Indonesia better access the Canadian

market for fish and processed fish products?

Objectives

• Qualitative and quantitative
• Review of literature and academic journals
• Site visits and discussions with Canadian food

safety stakeholders.

Methodology

The aims of the presentation:

• 1. What Indonesian fish and processed fish

products are currently important or have potential in the Canadian market?

• 2. What are the standards and regulatory

challenges Indonesia faces when exporting fish and processed fish products to Canada?

• 3. How can Indonesia better access the Canadian

market for fish and processed fish products?

Objectives

Canadian Imports of Fish Products (HS 03), by Country

Rank Exporter Trend (per cent) Growth (per cent) Share (per cent) 2012 2013 2014 2015 2016 2012-2016 2015-2016 2016 World 1,891,645 2,041,997 2,166,282 1,980,564 2,089,289 1.70 5.49 100.00 1 United States of America 734,780 761,370 775,812 760,149 855,697 3.08 12.57 40.96 2 China 331,082 342,584 351,944 310,270 344,319

• 0.21

10.97 16.48 3 Vietnam 106,786 133,383 169,502 146,774 141,282 6.77

• 3.74

6.76 4 India 59,949 80,623 109,801 100,067 103,033 13.87 2.96 4.93 5 Thailand 151,090 97,658 93,015 79,563 87,188

• 12.23

9.58 4.17 6 Chile 108,832 124,818 154,716 110,169 80,932

• 6.92
• 26.54

3.87 7 Norway 62,915 74,376 97,637 82,154 72,864 4.01

• 11.31

3.49 8 Canada (re-imports) 15,907 26,853 18,883 22,874 32,077 13.23 40.23 1.54 9 Iceland 15,907 22,299 23,056 23,642 27,740 12.42 17.33 1.33 10 Taipei, Chinese 21,774 25,473 25,173 22,570 25,983 2.35 15.12 1.24 11 Russian Federation 25,734 67,493 26,475 28,069 24,712

• 9.14
• 11.96

1.18 12 Indonesia 16,959 21,507 32,394 23,931 23,518 7.90

• 1.73

1.13 Rest of the World 239,930 263,560 287,874 270,332 269,944 2.65

• 0.14

12.92 Total Value (USD, 000s)

Canadian Imports of Fish Products (HS 03) From the World

• 200

400 600 800 1,000 HS 2012 2013 2014 2015 HS 0301 - Live fish HS 0302 - Fresh or chilled fish HS 0303 - Frozen fish HS 0304 - Fish fillets HS 0305 - Fish, dried, salted, smoked HS 0306 - Crustaceans HS 0307 - Molluscs HS 0308 - Aquatic invertebrates

USD, Millions

Canada’s world import of fish products dominated by Crustaceans and Fish fillets with total import in 2016 respectively $ 806 million and $ 567 million.

Canadian Imports of Fish Products (HS 03) From Indonesia

5000 10000 15000 20000 25000 2012 2013 2014 2015 2016 HS 0301 - Live fish HS 0302 - Fresh or chilled fish HS 0303 - Frozen fish HS 0304 - Fish fillets HS 0305 - Fish, dried, salted, smoked HS 0306 - Crustaceans HS 0307 - Molluscs HS 0308 - Aquatic invertebrates USD, Millions

Canada’s import of fish products from Indonesia dominated by Fish fillets and Crustaceans with total value in 2016 respectively $ 11.6 million and $ 9.8 million.

Canadian Imports of Processed Fish Products (HS 16), by Country

Rank Exporters Trend (per cent) Growth (per cent) Share (per cent) 2012 2013 2014 2015 2016 2012-2016 2015-2016 2016

World 1,370,897 1,492,113 1,590,503 1,439,632 1,385,522

• 0.15
• 3.76

100.00 1 United States of America 903,144 1,009,682 1,080,741 1,009,014 951,950 1.05

• 5.66

68.71 2 Thailand 284,566 271,016 235,889 220,278 214,660

• 7.42
• 2.55

15.49 3 China 48,274 43,918 60,226 46,118 53,745 2.67 16.54 3.88 4 Viet Nam 24,698 35,448 74,482 56,158 42,116 16.50

• 25.00

3.04 5 Italy 8,033 8,928 12,349 12,898 16,059 19.16 24.51 1.16 6 Brazil 19,152 14,553 16,660 6,276 16,054

• 11.25

155.80 1.16 7 Indonesia 15,842 15,415 13,051 12,115 13,067

• 6.07

7.86 0.94 8 Philippines 10,592 10,692 6,739 9,056 11,876 0.63 31.14 0.86 9 India 7,867 29,869 41,886 21,073 10,097 1.51

• 52.09

0.73 10 Germany 743 2,082 3,433 2,128 6,073 52.56 185.39 0.44 Rest of the World 47,984 50,510 45,047 44,519 49,825

• 0.51

11.92 3.60

(USD Thousands)

Note: Includes a very small amount of other processed food (e.g., meat)

Canadian Imports of Processed Fish Products (HS 16) From the World

Canada’s world import of seafood products dominated by Prepared or preserved fish and Crustaceans, molluscs prepared or preserved with total import in 2016 respectively $ 336 million and $ 186 million.

• 100

200 300 400 500 2012 2013 2014 2015 2016

HS 1603- Extract and juice of fish HS 1604 - Prepared or preserved fish HS 1605 - Crustaceans, molluscs prepared or preserved

USD, Millions

Canadian Imports of Processed Fish Products (HS 16) From Indonesia

4000 8000 12000 16000 2012 2013 2014 2015 2016 HS 1603 - Extract and juice of fish HS 1604 - Prepared or preserved fish HS 1605 - Crustaceans, molluscs prepared or preserved USD, Millions

Canada’s import of seafood products from Indonesia dominated by Crustaceans, molluscs prepared or preserved with total value in 2016 $ 13 million.

Indonesian Fish and Processed Fish Products With Potential in the Canadian Market

• Frozen shrimps and prawns (HS 030617),
• Cuttle fish (HS 030749),
• Crabs, even smoked, fresh, chilled, dried, salted or in brine (HS 030624),
• Frozen fish meat (HS 030499)
• Prepared or preserved tunas, skipjack and Atlantic bonito, whole or in pieces (HS

160414)

• Shrimps and prawns, prepared or preserved, not in airtight containers (HS 160521)

This result is based on an ITP indicator that is greater than US$40 million.

The aims of the presentation:

• 1. What Indonesian fish and processed fish

products are currently important or have potential in the Canadian market?

• 2. What are the standards and regulatory

challenges Indonesia faces when exporting fish and processed fish products to Canada?

• 3. How can Indonesia better access the Canadian

market for fish and processed fish products?

Objectives

• Meeting standards and requirements,

including food safety-related standards and certifications

• Meet buyers’ expectations on environment,

sustainability, organics, social welfare and justice, and gender.

Challenges Entering the Canadian Market

Federal Health Canada, CFIA, Agriculture and Agri-Food Provincial and Territorial (e.g., Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA), Ontario Ministry of Health and Long-Term Care (MOHLTC)) Municipal (Ottawa Public Health)

• Establishes federal policies and standards

relating to the safety and nutritional quality of food

• Enforces the policies and standards
• Conducts all federal food inspection

activities

• Oversees legislation for specific food

commodities

• Determines food safety standards for

retail, food service, and food processing establishments

• Regulates construction standards and

basic sanitary requirements of certain establishments within their borders

• Conducts food premises inspections and

conduct enforcement activities

• Provides food handler education
• Canadian Regulatory Framework
• n Food Safety

Federal:

• Food and Drugs Act
• Consumer Packaging and Labelling Act
• Food Safety and Quality Act
• Safe Food for Canadians Act
• Fish Inspection Act

Provincial/Territorial:

• Fish Interim Audit Program (Fish Inspection

Act)

Food Safety Regulations on Fish and Processed Fish Products

• Safe Food for Canadians Regulations (SFCR).

The SFCRs will replace the current regulations under the Canada Agricultural Products Act, the Fish Inspection Act, the Meat Inspection Act, and the food-related provisions of the Consumer Packaging and Labelling Regulations Upcoming Regulations

• Marine Stewardship Council (MSC)
• Aquaculture Stewardship Council (ASC)
• Best Aquaculture Practices (BAP)
• Friend of the Sea (FoS)
• Responsible Fisheries Management (RFM)
• Global GAP
• Fisheries Council of Canada (upcoming)

Voluntary Standards

• n Fish and Processed Fish Products

Factors that influence buyer decisions:

• Certified environmentally sustainable providers

(88 per cent)

• Women-owned businesses (87 per cent)
• SMEs that employ women (79 per cent)
• Improving the supplier country’s natural resources

and environment (76 per cent)

• Product quality (72 per cent)
• Price (56 per cent)
• Reliability of long-term supply (44 per cent)

Canadian Demand and Buyer Expectations

Based on Canadian Food Trade Survey Results, Center for Food in Canada, The Conference Board of Canada.

The specific arrangements on safety of fish products are regulated under the following laws and regulations:

• Law No.45/2009 on Fisheries (amended to No. 31/2004);
• Government Regulation No.28/2004 on Food Safety, Quality, and Nutrition;
• Government Regulation No.57/2015 on Quality Assurance System of Fishery
• Products. The derivative regulation is Ministerial Decree No.72/2016 on

Requirements and Procedures for Feasibility Certificate of Processing.

Requirements and Standards for Indonesian Exporters

Provisions Kinds of Requirements Specific Measurements Administrative Requirements Trade License (SIUP) Registered Tax Payer (NPWP) Warehouse License Exporter ID (KTP) Tax Compliance Receipt (last 2 years) Certification Health Certificate (viable consumed for fisheries products) Standard Sanitation Operating Procedures (SSOP) HACCP, GMP, GHP, ISO 22000 (Food Safety Management System ) Quality Requirement and Quality Control Trade Standards (SNI)

• Mandatory
• Voluntary

Inspection Microbiology, chemical/contaminant, and physical testing Other Requirements Packaging, Labelling and Good Distribution Practices

• Licensing
• Sourcing product
• Import product notification, control, storage, and identification
• Product inspection process
• Service fees
• Health and safety investigation and notification
• Records in English or French at an address in Canada for a period
• f three years minimum.

Requirements and Standards for Canadian Importers of Fish and Processed Fish Products

Most Widely Adopted Voluntary Standards in Canada

MSC and ASC have wide-ranging adoption in the Canadian market, since most large retailers such as Loblaws and Sobeys require them.

The aims of the presentation:

• 1. What Indonesian fish and processed fish

products are currently important or have potential in the Canadian market?

• 2. What are the standards and regulatory

challenges Indonesia faces when exporting fish and processed fish products to Canada?

• 3. How can Indonesia better access the Canadian

market for fish and processed fish products?

Objectives

Key elements to be considered by Indonesia:

• Export quality infrastructure (laboratory and

accredited certification body)

• Regulatory support (e.g., quota of products

caught at sea)

• Private sector engagement in developing

standards and regulations

• Cooperation between government and private

sector

Steps Forward

Best Practices on Strengthening SMEs to Comply with Food Safety Standards

At the micro level, the role of Food Starter as an incubator for food startup businesses, through the provision of standardized facilities for the process of food production and packaging , will create a more conducive atmosphere for business development in the food sector. Food Starter’s success story in supporting Canada’s food safety system, can help inform Indonesian food producers to develop food processing sectors, particularly for SMEs who pursue exporting of their products overseas. Food Starter can be adopted to improve quality and competitiveness of processed food products hence comply with international standards.

Government:

Federal (Health Canada, CFIA) Provincial and Territorial (e.g., OMAFRA, MOHLTC) Municipal (e.g., Ottawa Public Health)

Standards and Certification Body:

(e.g., National Standard Foundation (NSF), Canada Halal, Canada GAP)

Industries:

Farmers, Food Manufacturers, Food Distributors, Food Services Establishments, Retailers (e.g., Loblaws, FarmBoy)

Others:

Consumers Training Agencies (e.g., Food Processing HR Council) Start-Ups Incubator (e.g., Food Starter)

Best Practice: Stakeholder Engagement in Canada’s Food Safety System

• Indonesia is not the main supplier to the Canadian

market (even though there has been a Mutual Recognition Agreement on Inspection and Control System between Indonesia and Canada).

• Indonesian fish and processed fish products still face

many obstacles in the global market indicated by frequent cases of rejection caused by non-compliance with food safety standards in destination market.

• One well-known strategy to penetrate the Canadian

market is to ensure that producers and suppliers in Indonesia comply with international standards, both voluntary and mandatory.

Conclusion

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