COVID-19 Impact on Fisheries and Aquaculture in the Food and Beverages Industry
OVERVIEW:
Fisheries and aquaculture is the process of cultivating saltwater and freshwater populations which include fish, aquatic plants, algae, shellfish, molluscs, crustaceans, and other populations found in the water environment. Fisheries and aquaculture play an important role in the development of the economy. According to FAO, the global demand for fish and fish products has never shown signs of slowing down and the sector has expanded at a very faster rate over the past decade. According to FAO, major facts related to fisheries and aquaculture include.
• In 2018, the fisheries recorded the highest production of 96.4 million tonnes which was 5.4% higher than the average of the past three years
• Global aquaculture production experienced a growth of 527% from 1990 to 2018
• Global fish consumption experienced growth of 122% from 1990 to 2018
• The top capture producers in 2018 include China, Indonesia, Peru, India, the Russian Federation, the United States of America, and Vietnam. These countries account for 50 % of total global capture production
• In 2018, the world aquaculture production was 114.5 million tonnes with a sales value of USD 263.6 billion
• Fisheries and aquaculture is an important source of employment. In 2018, around 59.5 million people were engaged in this field. 39.0 million people were employed in fisheries and 20.5 million people were employed in aquaculture
THE IMPACT OF COVID-19
The dynamics and nature of COVID-19 impacts are manifold. Economically, the International Monetary Fund (IMF) projected that the global GDP is expected to decrease by 3% in 2020 from 2.9% growth in 2019. Asia which is the largest producer of fisheries and aquaculture is also expected to have COVID-19 impact. According to, the Asian Development Bank (ADB), the growth in developing Asia will be 2.2% in 2020 which was 5.5% before the COVID-19 pandemic. This slowdown is expected to lead to widespread unemployment, food insecurity, and exacerbation of social inequities.
Fish products and fish are an important component of a healthy diet and are safe to eat. Fishes are not responsible for an epidemiological role in spreading COVID-19 to humans. But, people misleading perceptions in some countries about fish and the spread of COVID-19 have to lead to decreased consumption of fish products.
There was an immediate impact on the aquaculture business. Lockdowns subjected the value chain to certain international and domestic transport disruptions for raw materials for processing, production inputs, and finished products for export and domestic consumption. Strict imposition of restrictions on the movement of people and materials including workers, farm-made inputs such as seed, feed, unavailable. Small fish farmers experienced a business loss because they had to sell the products at lower prices or could not sell their harvests. Due to lockdown in the majority of the countries, fish farmers were not able to harvest and also could not start a new production cycle resulting in reduced fish supply in the next few months and also loss of downstream and upstream sources of employment.
The export of fish of major countries such as China and the EU were affected to lockdown. The closures of schools and offices also impacted the demand for fresh fish and they are relying on prepared meals. The shutdown of restaurants and hotels has also decreased the demand for live and fresh high-value fish. E-commerce has helped to offer the products, but sales are still lower than pre-pandemic.
Closures of offices and schools have also affected the demand for fresh fish. The busy lifestyle of people in urban centers makes them rely on prepared meals. These meals often include fish products and are served by small vendors and restaurants for take-away or on-site consumption. The shutdown of tourism and related businesses, such as hotels and restaurants, has also decreased demand, especially for high-value fresh or live fish. E-commerce has helped absorb the products, but sales are still far lower than before the pandemic.