Fair Trade: Certification of a yellowfin tuna handline fishery in Indonesia

Rui Bing Zheng Ashley Apel Sven Blankenhorn Fair Trade USA

Deirdre Elizabeth Duggan Jaz Simbolon Yayasan Masyarakat dan Perikanan Indonesia (MDPI)

Helen Packer Anova Food

Fair Trade enables greater equity in value chains and ensures the benefits of trade and export are spread among producers. For a fishery to receive Fair Trade Certification, it must first comply with the Capture Fisheries Standard and its core objectives of fisher and worker empowerment, economic development of communities, social responsibility, and environmental stewardship. This case study outlines the ways in which the Fair Trade model aligns with several provisions laid out in the Voluntary Guidelines for Securing Sustainable Small-Scale Fisheries in the context of Food Security and Poverty Eradication. The recommendations pertain particularly to Chapter 7 of the SSF Guidelines on value chains, post-harvest, and trade, through the case of the certified Indonesia Western and Central Pacific Ocean yellowfin tuna handline fishery.

Keywords: Small-scale fisheries, Indonesia, yellowfin tuna, handline, Fair Trade, social responsibility, community development, empowerment, fisheries management, certification.

In 2014, Fair Trade USA adapted its model of certification and market-based incentives to support small- and medium-scale capture fisheries, as well as shift the seafood industry toward more socially and environmentally sound practices. For a fishery to achieve Fair Trade Certification, it must comply with the Capture Fisheries Standard, a progressive socio-economic and environmental standard for wild capture fisheries. The standard is aligned with several of the provisions laid out in Chapter 7 of the SSF Guidelines regarding value chains, post-harvest and trade. This case study documents how Fair Trade’s intervention has affected the Indonesia Western and Central Pacific Ocean yellowfin tuna handline fishery (Fishery Progress, 2018), and the relevance these interventions have to Chapter 7 of the SSF Guidelines.

Indonesia is the world’s largest island nation with over 17 000 islands and 54 000 km of coastline. Its fisheries play an important role in providing employment and income. According to the Food and Agriculture Organization of the United Nations (FAO), over six million people are involved in the Indonesian seafood sector, and an estimated 95 percent of fishery production comes from small-scale fisheries. Indonesia is also one of the main producers of tuna globally. The approximate annual volume of yellowfin tuna (Thunnus albacares) produced is 200 000 tonnes, with over 30 percent (61 000 tonnes) caught by handline. Highly graded raw material is exported, with the rest destined for local markets such as food service and hospitality.

Eastern Indonesian archipelagic waters are an important region for yellowfin tuna fishing. For many coastal communities in the region, tuna fishing is a major source of income and one of the few economic opportunities available. Small-scale tuna fishery operations are often carried out in remote communities, where accessibility, education and socio-economic conditions range from variable to poor (Duggan and Kochen, 2016, p. 31). As yellowfin tuna is a highly sought-after export commodity, sourcing from Indonesian handline fisheries for export markets has been established for many years and the number of buyers sourcing and volume of fish being exported from the area are steadily increasing.

Handline fishing is the dominant method in Eastern Indonesian archipelagic waters. Due to the nature of the fishery, handline fishing generates more jobs per volume of fish landed, compared to other, more mechanized methods. Handline fishers use homemade kites attached to their fishing lines, which cause the bait to move erratically, a characteristic which adult yellowfin find alluring. The amount of fish caught depends on the equipment the fishers can afford (e.g. small boats with 15-horsepower engines) and the distance from anchored fish aggregating devices, which act as a secondary option if no free-swimming schools are found during a fishing trip. While the chances of catching fish are higher near these devices, the tuna caught are often smaller in size and there is a higher risk of harvesting juveniles.

The Fair Trade Certified supply chain is located between the Maluku and North Maluku Islands as well as in Central Sulawesi in Eastern Indonesia. Approximately 100 handline fishers in Assilulu and Waepure villages on Ambon and Buru islands were engaged in 2013 to field test the Capture Fisheries Standard. The group achieved certification in 2014.

There are now over 800 small-scale fishers registered in 38 Fair Trade Fishers’ Associations across multiple islands and districts. Fishers harvest yellowfin tuna on daily fishing trips from small vessels with a maximum crew of two people. They target large yellowfin tuna by following dolphins, which indicate the presence of tuna, and may catch the fish at the surface or further below. The fish is landed and then hand- processed into clean loins at designated stations, before delivery to a central processor in the city of Ambon or Bitung.

BOX 6.1

FAIR TRADE USA

Fair Trade USA, a non-profit organization, was founded in 1998 and is the leading certifier of Fair Trade goods in North America. The organization reaches nearly one million producers globally and has delivered USD 551 million in additional profits to farmers, workers, and fishers since its inception, through its market-driven model.

Fair Trade as a movement emerged as a response to the adverse conditions faced by small-scale producers in developing countries, such as lack of market access, price volatility, and poor bargaining power. The model improves the conditions of these producers through three main interventions:

1. Certification using a comprehensive social, economic and environmental standard;
2. Delivery of Fair Trade Premium funds into the hands of producers for product sold on Fair Trade terms; and
3. Increased market access and product differentiation through the Fair Trade label.

Capture Fisheries Standard

Since its inception, Fair Trade’s Seafood Program has delivered over USD 1.5 million in Premium funds to fishing communities on top of the price of their catch. The Capture Fisheries Standard has benefited over 5 000 fishers and fishworkers in eight fisheries globally through adherence to stronger standards, greater organization, and collective action.

Given the success and replicability of Fair Trade’s Agriculture Program, which certifies fresh produce, coffee, tea and other consumer goods globally, the organization began research on the seafood sector, resulting in the development of the Capture Fisheries Standard (CFS) in 2014 to test its model in fisheries. The CFS provides the opportunity for fishers to incorporate core elements of Fair Trade in their practices, while receiving support to further commercialize their product.

Fair Trade USA and partnering Conformity Assessment Bodies audit and certify supply chains to help ensure that fishers and processing workers are paid fair prices and wages, work in safe conditions, protect the environment, and receive Fair Trade Premium funds to improve their livelihoods. The CFS framework follows the Fair Trade agricultural standards closely, specifically the requirements concerning basic human rights, wages, working conditions and access to services. Several criteria have been modified to apply to a marine setting, but the tenets and model remain the same. A number of technical documents including the International Labour Organization’s Core Conventions and the FAO Code of Conduct for Responsible Fisheries were referenced in the development of the standard.

The CFS is a progressive standard beginning at Year 0 and extending to Year 6. The criteria become more rigorous annually, leading to comprehensive socio-economic and environmental improvements over time. After Year 6, the fishery is audited against the same Year 6 criteria to ensure improvements are maintained. In-person, third-party audits are held on an annual basis. Upon certification, all traders of the certified product are also required to abide by Fair Trade USA’s Trade Standard, the chain of custody standard ensuring traceability and fair trading practices. The main organizational objectives of the CFS are as follows.

• Empowerment: The CFS supports fishers in developing the necessary skills to effectively negotiate with supply chain actors regarding the purchase, processing and marketing of their products. The empowerment process includes organizing a Fair Trade Fishers’ Association, electing a Fair Trade Committee, creating a Fair Trade Premium Plan, and determining how to spend the premium in the community (as further detailed in section 6.1.4).

• Economic development: The CFS aims to improve the stability of fishers’ incomes by ensuring a transparent and stable trading relationship with their buyer(s) and by requiring payment of a Fair Trade Premium on every Fair Trade Certified product sale. The standard also establishes requirements to ensure adequate wages and wage growth for workers. For instance, by Year 3, employers are required to meet with waged crew members and worker representatives annually to discuss how wages and productivity can be improved, including ideas for how to move toward living wages over time. Additionally, the resource management section of the CFS aims to strengthen and stabilize fish stocks to ensure that local communities can continue to depend on them for their livelihoods.

• Social responsibility: The CFS protects the fundamental human rights of those involved in the fishery. Health and safety measures are established to protect fishers and processing workers from work-related injuries. Fishers are encouraged to use the Fair Trade Premium to improve access to and quality of health care and education in their communities.

• Environmental stewardship: Registered fishers must adopt responsible fishing practices and work to protect fishing resources and biodiversity. This includes data collection and monitoring to provide better information on the state of fish stocks and to mitigate the impacts of fishing. For small- and medium-scale fisheries that face challenges with data availability and management, the CFS builds the capacity of fishers to meet the resource management criteria over time.

With these main objectives in mind, the CFS is organized into six sections addressing different aspects of fishing, processing and facility management, and group administration (Figure 6.3).

The requirements under each section apply to the Certificate Holder (the entity responsible for the implementation of the CFS), fishers and crew members on fishing vessels, and/or workers in processing plants. The standard may be viewed in its entirety on Fair Trade USA’s website: https://www.fairtradecertified.org/business/seafood.

The development of Fair Trade Associations and Committees, and the management of the Fair Trade Premium led by fishers, embodies the SSF Guidelines recommendations 7.4 (“efforts to support associations of fisher and fish workers and to promote their capacity to enhance their income and livelihood security, as well as marketing mechanisms”) and 7.9 *("*efforts to ensure adverse impacts by international trade on the environment, small-scale fisheries culture, livelihoods, and food security are equitably addressed").

To participate in Fair Trade, fishers who are registered must form at least one democratically run Fishers’ Association (unless they already belong to a legal cooperative, in which case the cooperative serves as the association). Through the cooperative or association, they coordinate responsibilities on resource management, vessel safety, and trade relationships with buyers. The association represents the fishers on any matters affecting their fishing activities, including CFS requirements, laws, fishery regulations, and fishery-related infrastructure.

From the associations, individuals are elected into one or more Fair Trade Committees to manage the use of the Fair Trade Premium funds. These committees are then responsible for managing and spending the funds on behalf of the participants, and for tracking and reporting their use.

For every kilogram of product sold on Fair Trade terms, a Fair Trade Premium is paid by the local processor (often the Certificate Holder), or the importer within the country of the product’s final destination. The premium rate is set per species and, if necessary, per region; all rates are publicly available online.¹ The premium is paid directly into an account managed by the Fair Trade Committee for the realization of common community goals. A spending plan (Fair Trade Premium Plan) must be developed in accordance with the CFS, and is based on a needs assessment outlining community gaps and priorities, which is conducted in the first year. The committee may choose to fund activities that its members agree are relevant for their priorities. Long-term projects are encouraged, and not all Fair Trade Premium funds must be spent each year.

At least 30 percent of the Fair Trade Premium funds must be used toward environmental projects that contribute to the sustainability of the fishery and/or marine ecosystem, such as developing or improving waste management systems and facilities, creating or enforcing a marine or terrestrial protected area, developing an environmental education programme, or fisher training and data collection efforts.

Collated primary and secondary evidence was used to create the case study. In 2018, Fair Trade USA contracted the Charmelian consulting group (based in the United Kingdom of Great Britain and Northern Ireland) to conduct an independent evaluation of the programme’s socio-economic and environmental impact from 2014 to 2018. The methods and findings for this case study draw heavily from that report, with additional follow-up and research focused on the tuna fishery in Indonesia. The data sources used in reference to both the evaluation and in this case study include:

• Audit reports and applications: Data from audits were collated to show the change in the number of fishers, vessels, and workers over time, from the time of certification.

• Household surveys: Surveys with fishers were carried out in 2015, 2016 and 2018. Survey questions covered income sustainability, environmental sustainability, individual and community development, and empowerment. (Appendix 1 for a list of survey questions.)

• Transaction data: Transaction data sourced from purchase and sales reports of certified fish included product information, price per unit, volume, species, transaction date, and type of contract.

• Interviews with programme participants: Interviews were conducted with key supply chain and Non-governmental Organization (NGO) stakeholders to collect qualitative information on experiences with the Fair Trade Seafood Program in Indonesia.

Fair Trade USA conducted an analysis of the Capture Fisheries Standard to compare how it overlaps with the SSF Guidelines recommendations on value chains, post- harvest and trade. Other published articles and secondary evidence were also reviewed to analyse the impacts in Indonesia, such as Borland and Bailey’s 2019 article “A tale of two standards: A case study of the Fair Trade USA certified Maluku handline yellowfin tuna (Thunnus albacares) fishery” and Duggan and Kochen’s **"**Small in scale but big in potential: Opportunities and challenges for fisheries certification of Indonesian small- scale tuna fisheries", published in 2016.

Prior to sharing the results of the Fair Trade Seafood Program analysis, it is important to identify two partners who played critical roles: Yayasan Masyarakat dan PerikananIndonesia (MDPI) and Anova Food.

MDPI is an NGO that works with small-scale fishers in Indonesia to support responsible and sustainable fisheries. At the inception of the CFS project, MDPI was an extension of Anova’s Fishing & Living Initiative and was thus a natural partner to handle the CFS aspects involving producers. Today, MDPI is an independently registered organization, partnering with multiple industry stakeholders in tuna fisheries to implement traceability and sustainability-focused initiatives. It remains the main implementation partner for the Fair Trade programme in Indonesia.

Anova was an early market partner and supporter of Fair Trade. Participation in the programme enabled it to be a “prime mover” in product differentiation and in fulfilling its social and environmental commitments (Pollard et al., 2018, p. 41). As a result, Anova has been able to sustain relationships with its current buyers and double its supply volumes with others (Pollard et al., 2018, p. 45).

The fisher-led management of the Premium funds is a tangible example of Fair Trade’s alignment with SSF Guidelines recommendation 7.4 to support fishers’ associations and build their capacity to enhance their income and livelihood security. Sales of certified product have earned Indonesian fishers USD 280 000 (as of December 2018) in cumulative Fair Trade Premium funds on top of the price paid for their catch**.** Funds have been applied at a community level toward a variety of social and environmental projects, such as:

• Savings accounts for children’s education;
• School supplies;
• Illness and bereavement funds;
• Donations to local community centres and mosques;
• Education on endangered, threatened and protected (ETP) species;
• Waste management facilities;
• Improvements to landing sites and gear;
• Trainings on topics such as post-harvest handling to improve product quality.

BOX 6.2 Fair trade fisher spotlight

There are numerous Fair Trade Fishers’ Associations in South Seram. It is an important fishing area given the proximity to central processors in Ambon. Following participation in the Fair Trade programme, fishers report higher rates of engagement with other fishers and in negotiations with buyers.

La Tohia (in yellow) is a 38-year- old fisher from South Seram and the head of the Fair Trade Committee. He spends his time assisting the associations in various ways, including negotiating with the National Electric Company, installing lights at the landing sites, and training fishers to record fishing trips and interactions with ETP species in their logbooks (data collection is a requirement of the CFS).

His local association, Tuna Yapana, have used Fair Trade Premium funds to pay for fishing gear, school supplies for children, and renovations to the local mosque. They have also used funds to purchase meal containers and thermoses for fishing trips to reduce plastic waste (a requirement of the CFS). In the future, La Tohia hopes the group will develop Fair Trade Premium projects with mid- to long-term impact, such as registering fishers with the government health care and labour pension plan, and the creation of a children’s fund that supports education up to the university level.

In this way, Premium funds are also increasing fishers’ status as contributors to society and lessening the extractive effects of international trade on small-scale fisheries. This is a conditional stipulation of paragraph 7.9, which states that “assessments ... [should] ensure that adverse impacts by international trade on the environment, small-scale fisheries culture, livelihoods and special needs related to food security are equitably addressed.”

In a household survey of participants conducted in 2016, 63 percent of respondents knew how the Fair Trade Premium was spent and 73 percent were satisfied with the results. In compliance with the CFS, fishers have also been given safety-at-sea and first aid training, with first aid kits now available at all landing sites – a small but measurable change in isolated villages that are often far removed from health care facilities.

The structural community components of the Fair Trade model, such as the creation of fishers’ associations and committees, have also become increasingly important to fishers, as demonstrated by the findings of the survey conducted in 2015 and again in 2016 (Figure 6.4). In 2015, 68 percent of respondents rated the Fair Trade Premium as the most important benefit of the Fair Trade model. In 2016, that rating decreased to 48 percent, while the fishers’ perception of the benefits of having a Fair Trade Fishers’ Association increased from 12 percent to 20 percent.

Prior to certification, all fishers operated independently. With the introduction of Fair Trade Associations, fishers were now formed into groups based on geography. In addition to Fair Trade Premium management, the associations began meeting regularly to exchange information, assess community needs and communicate with their intermediaries. This platform allowed fishers to engage in broader community and political issues, which they found valuable. The survey data in Figure 6.5 also shows an increase in fishers raising their concerns with association leadership year on year, pointing to greater levels of producer engagement and agency.

Fair Trade Certification also covers workers in the processing plants, with annual audits to ensure CFS requirements on human rights and working conditions are met, such as:

• Discrimination and abuse prevention;

• Freedom from forced labour;

• Protection of minors;

• Freedom of association;

• Wage protection and transparency on conditions of employment;

• Occupational health and safety;

• Access to health care and other services.

CFS resource management criteria detail the requirements for data collection, stock health, governance structure and proper waste management, which are key components to achieve a sustainable, responsible fishery. The implementation of Fair Trade’s resource management requirements bring SSF Guidelines recommendation 7.8 into practice by ensuring “that effective fisheries management systems are in place to prevent overexploitation driven by market demand that can threaten the sustainability of fisheries resources, food security and nutrition.”

The Indonesian supply chain, led by Anova with fisher programmes implemented by MDPI, was already part of a Fishery Improvement Project (FIP) when it entered the Fair Trade assessment. Both FIP and Fair Trade requirements have led to improvements in data collection and product traceability, with increasingly higher numbers of fishers completing logbooks as mandated by the CFS. This has contributed to a wider understanding of fishers’ impact on the yellowfin tuna stock as well as secondary and bycatch species. According to the CFS, a data collection system must be in place by Year 1, with increasingly rigorous documentation on catch data required by Years 3 and 6. In addition, by Year 1, logbooks of registered fishers must reflect an estimated catch of primary species of at least 50 percent of total fishing trips. That number increases to 75 percent by Year 3 and 90 percent by Year 6. Notably, although the demand for certified handline tuna is increasing, there are CFS safeguards in place to ensure the tuna is not overfished by registered fishers.

Fishers have also received training on ETP species status and conservation needs, in particular dolphins and seabirds, which they encounter regularly. Moreover, several groups have taken it upon themselves to promote knowledge and protection of ETP species within the wider community, using Fair Trade Premium funds. Although not a direct outcome of the trainings, Fair Trade registered fishers have uniformly abandoned the widespread practice of turtle egg consumption and are actively educating family and friends to follow their example. The enhanced awareness of marine sustainability among fishers has prompted direct actions to protect natural resources, as supported by Fair Trade seafood sales (SSF Guidelines recommendation 7.9*).*

For producers, it is an ongoing challenge to meet the rigorous environmental standards required by Fair Trade, which includes developing a fisheries management plan. This is especially difficult due to the limited scientific understanding communities have of the impact created by different management measures. Furthermore, the governance structure places handline fisheries outside of international quotas, and there is limited historical data on catch. To meet this challenge, MDPI staff are utilizing a simplified method to train fishers in basic stock management measures and assist them in articulating basic approaches, such as limiting fishing activity via “no fishing Fridays.” Such actions could be acknowledged by local government and enshrined in a simple harvest control rule (Pollard et al., 2018, p. 49). In addition, Fair Trade requires that 30 percent of the Fair Trade Premium be spent on environmental projects – a criterion that helps ensure stock health and environmental sustainability.

In 2019, the North Buru and Maluku Fair Trade Fishers’ Associations of the handline yellowfin tuna fishery became the first of its kind in Indonesia to undergo a Marine Stewardship Council (MSC) full assessment. The Fair Trade Committee on North Buru Island was selected to coordinate with MDPI and other stakeholders to compile the documentation required. As remarked by Blane Olson, managing director of Anova Technical Services, “Years of data collection and sustainable fishery practices by Fair Trade fishers have set the stage for fulfilling the rigorous demands of MSC certification for this handline fishery, and we couldn’t be more thrilled” (Kearns, 2019). The implementation of the CFS provided a pathway for the fishery to work toward the MSC assessment. “It is extremely difficult to meet the MSC standard for a small-scale fishery, composed of thousands of independent one-manned vessels that operate on remote islands,” added Saut Tampubolon, Executive Director of MDPI. “The Fair Trade Committee (FTC) and Fair Trade Associations, which have been in place in North Buru for five years, give an organized structure for the MSC Unit of Assessment. This major advantage of utilizing an existing FTC makes MSC potentially possible” (Kearns, 2019).

A key factor in Fair Trade’s success in Indonesia has been its partnership with MDPI. The country’s environment, which includes the world’s second-longest coastline, is logistically complex. Implementation of the CFS required on-the-ground expertise, local knowledge, and a network of trained community organizers responsible for replicating the model in multiple islands and communities. MDPI has been responsible for introducing Fair Trade concepts and requirements to local communities since the beginning of the programme in Indonesia. MDPI staff train Fair Trade Committee members (using outside training bodies when necessary) in organization, financial literacy and bookkeeping. The organization also collaborates closely with the committee to ensure that fishers understand their roles and responsibilities and have the tools and acumen to successfully use the Fair Trade Premium to its maximum advantage. Furthermore, MDPI’s knowledgeable and dedicated staff provide the necessary local personnel to ensure both initial and ongoing certification of this supply chain. The cooperation and partnership of the local processors PT. Harta Samudra and Blue Ocean Grace International have also been essential in the implementation of the programme, as both entities abide by the CFS.

Finally, Anova Food has been a critical partner in Indonesia and within the American retail market. As the Certificate Holder and importer of the certified tuna, Anova is responsible for annual fiscal audits and on-the-ground programme implementation. Its staff and sales teams have fully supported Fair Trade Certification since its adoption in 2013 and played a significant role in delivering the product on retail shelves. Between 2015 and 2016, sales volume increased over 280 percent, and demand for the certified product has steadily increased through its marketing efforts, as well as those of Fair Trade USA (Business Wire, 2019). Anova’s ongoing support of the FIP for yellowfin tuna in Eastern Indonesia has also been an important factor in its success, allowing for synergies between the FIP and the Fair Trade programme under MDPI, such as data collection, bycatch documentation and community participation in fisheries governance.

As with many certification and/or improvement programmes, one of the most significant challenges is the ongoing cost. In this case, the Certificate Holder bears the cost of certification. Fair Trade audits are conducted annually, and those in Indonesia require several weeks to complete. This fact, coupled with the difficult geography of Eastern Indonesia and the remote location of several of the fishing villages, keep audit costs high. The demand for the product, the visibility of the Fair Trade programme, and the aggregation of fishers into organized clusters also increase the presence of opportunistic buyers. These buyers increase local competition and decrease the potential volume of Fair Trade product sold, while bypassing investment in long-term socio-economic and environmental improvements.

Significant financial resources are also needed to support MDPI and capacity building on the ground. Landing sites and processing locations have had to undergo improvements to product traceability and worker safety systems. These costs are borne by the processor and are difficult to pass on to buyers. Regarding product traceability, currently yellowfin tuna loins are tagged as Fair Trade and coded with landing site details after they have been landed. Upon delivery to central processing plants, this information is entered into a tracking system and then, in the case of the Anova supply chain, uploaded onto a blockchain platform.

In Indonesia, Anova has partnered with MDPI and USAID to implement full chain traceability by working with all actors in the supply chain including fishers, intermediaries and processors/exporters (Fishing & Living, 2019). At the fisher level, electronic vessel monitoring systems such as Spot Trace and Pelagic Data Systems are being utilized to gather more accurate catch data. At the intermediary level, a mobile application called Trafiz developed by USAID OCEANS is progressively being deployed to contribute to traceability at landing sites by recording transactions electronically and uploading them into an online database. Finally, at the processor/ exporter level, an electronic tally system (Trace Tales) developed by MDPI and funded by USAID OCEANS has been installed in multiple processing plants. The blockchain platform will integrate a number of existing traceability tools to move toward continuous, tamper-proof traceability all along the value chain.

Blane Olson, Managing Director of Anova Technical Services, explains that “with the addition of our new blockchain technology programme, we’re able to easily access and share powerful information about the fish-to-market journey with customers and consumers, while ensuring that fish is caught from clean ocean waters by fisher[s] who operate under Fair Trade standards, which are certified by MDPI and Fair Trade USA to ensure fair wages and safe working conditions.”

Intermediaries play an integral social and economic role in these fishing communities. They facilitate production, support post-harvest processing and grading, act as money lenders, and collect and transport raw product to processors. Gaining the trust and cooperation of intermediaries as leaders of these communities has been essential in implementing the CFS and in the formation of associations (Bailey et al., 2016).

This process of building trust and cooperation with the intermediaries across all Fair Trade Certified sites was a multiyear process enabled by MDPI staff. At times, community building was challenging, as some intermediaries viewed fishers’ associations and committees as a threat to their operations and methods. MDPI worked closely with cooperative intermediaries at the beginning of the programme, in particular those who were also fishers and who had close ties to the local community, and then expanded outward. As the Fair Trade programme has adapted to the Indonesian context to involve intermediaries, likewise intermediaries have evolved to run their businesses within the bounds of fishers’ associations and involving greater levels of communication and transparency with fishers. Intermediaries who are also fishers are part of fishers’ associations. For those who do not fish, the local association has the option of including them in meetings as non-voting members.

The associations help resolve issues between intermediaries and fishers, as in a recent case involving price transparency. In a number of villages, fishers were being quoted different prices for similar products, and there was confusion about how grading affected price. In addition, certain intermediaries were claiming non-certified fish as certified to achieve higher commercial prices. Many of the fishers raised these concerns with their associations and with MDPI. Through conversations with intermediaries and with coaching and training efforts by MDPI staff, these issues were ultimately resolved.

Additional challenges occur at the American market level. While Fair Trade brand recognition is high with 60 percent of American consumers reporting they recognize the logo, Fair Trade Certified seafood is not as well known. Thus it is critical to work with Fair Trade’s brand partners and to equip their sales and marketing teams with the tools they need to grow sales and recognition of Fair Trade Certified seafood. The sustainable seafood movement has been successful over the past 20 years with American and European retailers, the majority of whom have sustainable seafood commitments for wild caught seafood (CEA, 2017). However, most of these commitments are centred on environmental sustainability. Hence Fair Trade and other NGOs involved with addressing social issues in seafood production are working diligently to modify current retailer commitments to adopt social criteria in seafood sourcing, including a commitment to Fair Trade.

A dedicated buyer willing to pay a higher price for a certified product is essential to the success of any Fair Trade Certification, as well as similar interventions. Fair Trade’s model is marketdriven, and its effectiveness hinges upon demand from an end buyer. Without sales on Fair Trade terms, there is no producer impact or price incentive that compels supply chain actors to adhere to higher levels of compliance and more equitable trade practices.

The Fair Trade Seafood Program in Indonesia is a story of continuous improvement, beginning with four Fair Trade Fishers’ Associations in Ambon and Buru and expanding to 38 Fair Trade Associations with over 800 fishers on multiple islands, each with its own logistics, cultural dynamics and local politics.

The model has brought positive changes to communities in Indonesia through group organization, adherence to rigorous standards, and additional income for producers. Fair Trade is the only certification that guarantees a price premium. Since the Seafood Program’s beginning, over a quarter of a million United States dollars have been delivered to participating Indonesian small-scale fishers. With ongoing support from MDPI, these fishers are identifying a range of projects and investments to improve their livelihoods and the marine environment.

Additionally, the development of Fair Trade associations and committees have strengthened fishers’ capacity, enhanced their income and livelihood security, and supported data collection and fisheries management systems to prevent overexploitation of natural resources. Organized fishers’ associations, built on community input and collaboration, have provided the necessary social structure to enable stronger data collection and traceability, as well as advance progress for FIPs and toward a full MSC assessment.

Fair Trade USA and its partners have been able to replicate the successes seen in Indonesia in other fisheries and countries, specifically in Mexico, the Maldives, the United States of America and the Solomon Islands. The types of certified species and associated fishing gear have also grown, with Pacific shrimp (suripera net), Atlantic scallops (scallop dredge), Alaskan salmon (drift net and setnet), and skipjack tuna (pole and line) all certified between 2015 and 2017.

In 2020, the CFS will undergo a major revision. As part of that process, Fair Trade USA will update its standards to increase its impact on small- to medium-scale producers worldwide.

Bailey, M., Bush, S., Oosterveer, P. & Larastiti, L. 2016. Fishers, Fair Trade, and finding middle ground. Fisheries Research, 182(October 2016): 59–68 (available at https://doi. org/10.1016/j.fishres.2015.11.027).

Borland, M.E. & Bailey, M. 2019. A tale of two standards: the case of the Maluku handline yellowfin tuna fishery. Marine Policy, 100 (February 2019): 353–360.

Business Wire. 2019. Anova Food Recognizes MDPI and Indonesian Partners following Successful Blockchain Technology Program Implementation. Business Wire, 26 June 2019. (also available at https://www.businesswire.com/news/home/20190626005595/en/ Anova-Food-Recognizes-MDPI-Indonesian-Partners-Successful).

CEA (California Environmental Associates). 2017. Progress Toward Sustainable Seafood – By the Numbers. Packard Foundation, Seafood Metrics Report, June 2017. speakingofseafood.org/wp-content/uploads/2017/06/Seafood-Metrics-Report-2017.pdf

Duggan, D. & Kochen, M. 2016. Small in scale but big in potential: opportunities and challenges for fisheries certification of Indonesian small-scale tuna fisheries. Marine Policy, 67(May 2016): 30–39.

Fishery Progress. 2018. Indonesia Western and Central Pacific Ocean Yellowfin Tuna – Handline. In: Fishery Progress [online]. Fort Collins, USA. https://fisheryprogress.org/ fip-profile/eastern-indonesia-yellowfin-tuna-handline

Fishing & Living. (September 23^rd^ 2019). Retrieved from http://fishing-living.org/#sthash. SqliBrTl.dpbs

Kearns, M. 2019. Handline Tuna Fishery Becomes First of Its Kind in Indonesia to Pursue Full MSC Assessment. SeafoodSource Official Media, 27 February 2019. (also available at www.seafoodsource.com/news/environment-sustainability/handline-tuna-fishery- becomes-first-of-its-kind-in-indonesia-to-pursue-full-msc-assessment).

Pollard, I. et al. 2018. Learnings and best practice of the Fair Trade seafood program. Confidential report prepared for Fair Trade USA (unpublished).

List of fisher survey questions

Source: Zelasney, J., Ford, A., Westlund, L., Ward, A. and Riego Peñarubia, O. eds. 2020. Securing sustainable small-scale fisheries: Showcasing applied practices in value chains, post-harvest operations and trade. FAO Fisheries and Aquaculture Technical Paper No. 652. Rome, FAO. https://doi.org/10.4060/ca8402en