TED Analysis Cases

CASE STUDIES OF SEAFOOD PRODUCTION

RESEARCH PAPER NUMBER: 5

RESEARCH PAPER MNEMONIC: XSEAFOOD

RESEARCH PAPER NAME: Seafood TED Cases Analysis

DRAFT AUTHOR: Dandamudi Sreenivasa Rao


I. Abstract

Seafood, around the world, is becoming increasingly popular for health reasons. Unfortunately, the production of seafood has some environmentally damaging affects. The analysis of the following five case studies shows both the benefits, as well as the damaging consequences of seafood production. These cases encompass: aquaculture in India; mangrove protection; shrimp and sea turtles; tilapia, trade and the environment; and Thailand shrimp.

II. Issue Background

Because it is a healthy alternative to other forms of meat, seafood has become increasingly popular over the past two decades. This increasing popularity in the world market has slowly created a scarcity for some seafood products. There is currently an on- going depletion of worldwide seafood resources. This depletion has caused many fishermen to search for alternative methods of harvesting fish. One such alternative is aquaculture. Aquaculture is practiced throughout the Third World and is discussed in four cases: the Thailand shrimp case; the mangrove protection case; the aquaculture in India case; and the tilapia, trade and the environment case. However, before jumping into aquaculture, it is best to begin with the shrimp and sea turtles case. This case deals with traditional methods of harvesting shrimp from the ocean.

According to the National Marine Fisheries Service (NMFS), catching shrimp in the ocean is considered to be the greatest threat to the survival of five species of turtle. These five species are the hawksbill, green, leatherback, Kemp's ridley, and loggerhead. The problem in this situation is that turtles often get trapped in shrimp trawls and drown. In order to rectify this problem, the NMFS has produced the turtle excluder device (TED).

TEDs are cage-like fixtures that are placed on the neck of a trawl. They do not allow for the passage of turtles and large fish. Instead, these larger animals are forced out of the cage through an escape hatch. The United States has passed legislation requiring TEDs on all domestically caught shrimp. It is also encouraging other governments to do the same. Mexico is looking into such a requirement on its fishermen after the embargo of Mexican tuna imports by the United States when precautions were not taken by Mexican tuna fishermen to protect dolphins.

As late as 1984, Thailand produced 90% of its shrimp from the ocean. Now, over half of the shrimp produced in Thailand comes from aquaculture farms. Many of these new aquaculture farmers are former rice farmers who converted their lands for the use of aquaculture. This is because rice farmers who were making about $500 a year suddenly began to make between $20,000 and $40,000 a year in aquaculture. Unfortunately, proper measures have not been taken to protect and irrigate these shrimp farms. Therefore, the average life of these farms is between two and four years. Because of a lack of proper irrigation, many of the shrimp began to choke in their own excrement as well as a build-up of antibiotics and fertilizer.

In addition to not protecting themselves, these shrimp farms are the result of the destruction of many mangroves. At least 640,000 of the country's 960,000 acres of mangroves have been destroyed for aquaculture. Of these lost mangroves, each 40,000 acres that is no longer available for use is estimated to cost about $200 million in yearly economic loss. In addition to being unusable for aquaculture, these destroyed mangroves affect seafood catches in the ocean because about two-thirds of the fish caught for human consumption are dependent on mangrove ecosystems.

In addition to environmental obstacles, aquaculture, as a long-term investment project, faces economic uncertainty. For instance, in 1989, world shrimp prices dropped dramatically and forced many investors in Thailand's upper three provinces to terminate operations. However, in 1990, prices rebounded, causing new excitement in aquaculture. Eventually, this excitement caused Thailand to replace the United States as the world's largest seafood exporter.

Related to the Thailand shrimp case is the MANGROVE case. This case deals with the protection of global wetlands. As mentioned above, this is a big problem in Thailand, where mangroves are destroyed for aquaculture. The reason for concern over global wetlands is expressed in the preamble of the Convention on Wetlands of International Importance as Waterfowl Habitat ("Ramsar"; signed by member countries on 2 February 1971). The preamble states that "wetlands constitute resource of great economic, cultural, scientific, and recreational value, the loss of which would be irreparable..." Thus, Ramsar was formed to protect global wetlands.

Despite its intent to protect global wetlands, there is some concern over Ramsar. For instance, while eleven Asian countries have signed onto Ramsar, many countries like Malaysia, the Philippines, and Thailand, which have extensive wetlands, have not signed onto this agreement. Another concern about Ramsar is that there are only three vague guidelines which need to be followed by signatories. Not a single one of these guidelines is legally binding.

The first guideline is that each signatory must designate at least one area of wetlands on a list for preservation. Member countries must then formulate and implement a strategy that will promote conservation of the wetlands included on their wetlands list.

The second guideline is that the Convention Bureau must be informed of any ecological changes in the wetlands. Finally, signatories must establish and care for nature reserves on their wetlands.

Moving onto India, the shrimp aquaculture in India case deals with the rising amount of shrimp farming in India. The reason for this rise is that aquaculture has provided many benefits to southern India. For instance, in Andhra Pradesh and Tamil Nadu, highly salinized land which is not adequate for traditional forms of agriculture have finally been put to use for economic productivity.

Furthermore, aquaculture provides employment. The World Bank has lent $96.8 million for the development of Indian aquaculture in order to create about 2 million jobs in India. Furthermore, these jobs are raising the standards of living in India, according to the Central Marine Fisheries Research Institute (CMFRI). According to an October 1994 CMFRI report, seed collection in shrimp hatcheries has employed 25,000 in Andhra Pradesh and significantly raised their standard of living for its employees. The high profits that aquaculture firms enjoy are shared among the villages in which they operate. For instance, Spencer's Aquaculture provides roads, schools, clean drinking water, and televisions to villages in which they have projects.

There is also a downside to aquaculture, as mentioned earlier in the Thailand shrimp case. Shrimp need salt water in order to live, therefore water is shipped in from the ocean. Furthermore, in order to keep the oxygen levels at a life sustainable level, salinized water is continually pumped into these farms from the ocean. The runoff from this salt water negatively affects nearby rice farmers as well as the villagers themselves. The rice farmers are hurt because they are no longer able to grow their crops in high saline conditions. The villages are hurt because the salinized water seeps down and affects their drinking water.

Another problem is that shrimp farmers use many pesticides, some of which are banned in other countries like the United States. Not only does this pesticide seep through and affect other farming and drinking water, but it also breaks down the immune systems of the shrimp themselves. Because of this, in addition to the aforementioned economic uncertainty in the international shrimp market, the average life of a shrimp farm in India, according to the NGO known as PREPARE, is five years. Furthermore, after this five years, the land must be unused for another seven years before enough desalinization takes place to allow for traditional forms of agriculture to again take place.

Another point is that the government is being forced to subsidize these shrimp farmers by helping pay the expense of shipping clean drinking water into these villages. Therefore, the net profit that these shrimp farmers make does not reflect the total expenses. According to Vandana Shiva, an environmental activist in Tamil Nadu, the state's shrimp export revenue of $868 million in 1994 came at the expense of $1.38 billion in job loss and environmental destruction. Therefore, Indian environmentalists argue that aquaculture is a scheme where the rich get richer while creating a negative impact in the overall national economy.

Moving away from shrimp aquaculture is the tilapia, trade and the environment case. This case deals with the growing amount of aquaculture around the world, specifically dealing with tilapia. For instance, in 1993, about 84% of total fish production in the world came from the sea. However, the amount of fishing has been decreasing. Between 1984 and 1993, aquaculture production had risen from 6 million ton to 16 million tons. As mentioned before in the Thailand shrimp case, the tilapia case discusses the environmentally damaging techniques used in aquaculture.

Tilapia is favorable for aquaculture because it is a freshwater fish, ending the problem of salinization that is normally present in shrimp aquaculture. However, another problem with tilapia is that it is carnivorous. Therefore, its introduction into various parts of the world has led to a decrease in certain indigenous species of fish. For instance, tilapia is believed to be the cause of depletion of the guapeta, a native fish of Costa Rica. Therefore, tilapia, while seen as an easy commodity to produce, can be environmentally damaging by contributing to habitat loss.

III. Relevant TED Cases

A. Case Listings

Cases
  1. INDSHRMP case
  2. MANGROVE case
  3. SHRIMP case
  4. THAISHMP case
  5. TILAPIA case
Other Cases
  1. BALLAST case
  2. GREEN case
  3. GREEKTUR case
  4. HAWKSBIL case
  5. PERCH case
  6. PHILFISH case
  7. PHILWOOD case
  8. TEDS case
  9. TUNA case
  10. VIETWOOD case

B. Comparison and Contrast

One of the ways in which these cases divide into groups is in the way in which a trade measure would relate to the environment. For instance, by affecting the industry, a trade measure may require the industry to be more environmentally sound.

In the cases of the tilapia and shrimp, the main problem is species loss. Since tilapia is a carnivorous breed, its production in aquaculture leads to the loss of other sea species. In the shrimp and sea turtles case, the practice of catching shrimp in the seas is damaging to sea turtles, which get caught in the fishing nets.

The United States, which imports shrimp from other countries that do not use TEDs is looking into enforcing legislation which requires exporting countries to use TEDs in their fishing nets. TEDs allow up to 97% of turtles to leave the fishing nets unharmed while not allowing more than a loss of 2% of shrimp in the process. Mexico, a major shrimp exporter to the United States, is looking at the possibility of requiring TEDs for all locally caught shrimp so that it will not be hit with export restraints by the United States.

Tilapia is currently being bred in over 85 countries. The main problem with tilapia is that in the process of raising this fish, they prey on other species of fish. This is causing a decline in the numbers of many indigenous species of fish where tilapia aquaculture has been introduced. To demonstrate the extent to how carnivorous tilapia is, this species of fish will even prey upon its own eggs when hungry. One measure being looked into is the ban of tilapia imports by importing countries. Europe is a major importer of tilapia. The European Union (EU), for a brief period of a few months, banned the import of this fish from Africa because of reports that they were feeding on the dead bodies of people killed in the Rwandan civil war. However, this ban was lifted and tilapia continues to be a major export for many developing countries. In both of these cases, the problem with the process of these products is the loss of other species. However, in the case of tilapia, the main motivation was ethical, rather than environmental, when the EU decided to briefly ban its imports.

Two other cases which are related are the mangrove case and the Thai shrimp case. In both of these cases, the process relates to habitat loss. Actually, both of these cases deal with the destruction of mangroves. In the Thai shrimp case, mangroves are being destroyed in order to create more aquaculture projects. The mangrove case looks at this same topic. Basically, it states that mangroves are being destroyed in Southeast Asia, mainly for shrimp aquaculture. Both cases feel that it is important to protect mangroves. The mangrove case suggests that nature reserves be created for the protection of mangroves. The Thai shrimp case states that environmental groups in Europe and the United States have begun campaigning to end shrimp imports from developing countries, which are the main sources for shrimp aquaculture. Either way, the aim is to protect habitat loss.

The shrimp aquaculture in India case deals with land loss due to soil erosion. Salt water from the sea is needed to sustain shrimp. This salt water drifts away from these shrimp ponds and causes erosion of the soil, which hinders the production of traditional agricultural projects. One solution being suggested is to have the government of India designate certain areas, away from traditional agriculture and drinking water reserves, for use in aquaculture. The main goal in this situation is to end the land loss caused by salinization in the aquaculture process.

These five cases share both similarities and differences in the case of the process of production. This is evident by the three groups into which they were broken. One area in which all five cases share a similarity is in the industrial sector to which they all belong. This is the food industry. It is clear to see that the shrimp aquaculture in India, Thailand shrimp, shrimp and sea turtles, and tilapia cases all deal with food, since the main point of discussion deals with the production of a food item. Similarly, the mangrove case also deals with food, since the greatest threat to mangroves is aquaculture.

Another area worth looking into is the effect of culture on these cases. For four of these cases, culture is not considered to be an issue. However, in the case of tilapia, culture is considered to be an issue. Despite this, the effect of culture in the tilapia case may also be transferred to the other cases. For instance, in many tropical areas, most recipes call for salt water fish. For this reason, tilapia is mainly an export rather than a domestically used product. Secondly, the current trend among people of developed countries, the main importers of aquaculture products, is to eat more seafood which is considered to be healthy. Likewise, in Japan, the main importer of Indian seafood, the diet has traditionally consisted of a high seafood content. Therefore, the culture of the importing countries is an important factor in the production of this food product.

However, from the standpoint of the producing countries, shrimp is normally not a main part of the culture. In fact, shrimp is mainly sent out for export because few indigenous people can afford it themselves. Therefore, from this point of view, culture is not an important factor. The developing countries are only interested in an important source for foreign revenue and would be involved in another such activity if the market was favorable. Therefore, culture is not a clear cut issue in these cases.

The main theme which must be kept in mind when looking at a solution for the environmental problems of these cases is compromise. For instance, neither side should not be seen as completely wrong and environmentally detrimental. Nor should they be seen as a necessity for developing countries to gain foreign revenues and improve their economic situations. Compromise was suggested in both the mangrove and Indian aquaculture cases. By allowing the government to designate certain areas for aquaculture, traditional agriculture, and nature preserves, all sides may benefit. In the case of tilapia, the government may look into designating certain sections of freshwater for indigenous fish where the production of tilapia is prohibited while allowing tilapia production in other areas. In this way, both sides can stand to gain. The growing amount of aquaculture among developing countries is making the shrimp and sea turtles case almost irrelevant, since aquaculture is slowly taking over the shrimp industry. Solutions do not have to be seen as a winner-take-all situation. There is room for all sides to benefit.

IV. Further Information

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