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- Editors Note
- SWF Featured
- Innovate, Disrupt, Protect
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- W-E Focus Gallery
*Editors Note: Fish 2.0 is a business competition that connects sustainable fishing and aquaculture businesses with potential investors.
How do fishermen and entrepreneurs create a viable seafood business? This question comes up often and the answer is unfortunately, is not a simple one. A sustainable seafood business relies on the business itself, whether that focuses on harvest, production, processing, storage or sales, and on partners in the supply chain.
We may conjure up an image of a fisherman on the water, but we rarely think about the full path that fish took on its way to our plates. Similarly, when we hear about environmental innovations in seafood, it is often around specific changes to how we catch or farm fish – use of turtle excluder devices, changes in fishery quotas, or new aquaculture feeds, for example.
Without businesses throughout the supply chain that value and differentiate sustainable seafood from pirated, illegal, or wastefully processed products, there is no market incentive for fish farmers or fishermen to change their production or capture practices and no path for products harvested and produced by responsible players to get to markets that care.
It is also important that businesses that value sustainability demonstrate that they are successfully carving out market share from traditional sources, providing investors with confidence in these businesses’ ability to succeed and grow – and encouraging them to provide the capital needed to scale their operations.
For example, a sustainable fisherman or farmer must have accurate data and sustainable cost-effective options for their own gear and supplies. This enables them to fish and farm most sustainably. Then they must be able to sell their products up the supply chain – to a distributor or processor – that values sustainability enough to differentiate the sustainable fish from other fish that looks the same but was not captured or farmed sustainably.
In turn, this distributor must be able to partner with or sell to a processor or another distributor who also values, upholds the integrity, and who ideally pays a bit more for sustainable seafood. If any piece of the chain does not value or distinguish sustainable seafood from traditional products, it is difficult for the businesses at the beginning of the chain to survive and compete in the marketplace.
To help visualize how these pieces fit together, we developed a simple schematic, dividing the supply chain into six stages:
Opportunities to capture market share from traditional businesses exist in each of these areas, as well as in the connections among them. Entrepreneurs from around the globe are working hard to build on these opportunities.
We saw many examples of this entrepreneurial activity in the 2013 Fish 2.0 business competition: enterprises like Organic Ocean and Real Good Fish (formerly Local Catch) help responsible fishermen get their products to chefs and markets that care about who caught their seafood and how it was caught; Cryoocyte has new technology that freezes fish eggs which optimizes production cycles for aquaculture worldwide; and WildFish Marketing LCC uses waste from existing processors to create new products.
Public interest in the oceans, sustainable products, and healthy foods continues to drive demand for sustainable seafood. To be sure that this end demand will truly influence large-scale fishing and farming, we must continue to grow and connect these types of businesses that value and enhance social and environmental sustainability.
Momentum is building in this arena, and we are excited to see more innovative business ideas in Fish 2.0 2015. If you know of a business or investor interested in growing and disrupting sustainable seafood supply chains, please have them connect with us at www.fish20.org.
-Featured Image by Hope Longacre, "Umbertide Market".