Fishery sector hopeful of smoother waters ahead after strenuous attempts to get house in order

However, they are optimistic that the fishery industry this year can move towards sustainable growth and continue to have unfettered access to every market, following strenuous attempts by the government and the private sector to tackle problems during the past 12 months.

Businesses in the sector – medium and large-sized companies, in particular – stress they have already adjusted their operations and developed new supply chains as part of their commitment to comply with international standards.

Although it has not yet been severely affected by the IUU regulations or the TIP report, the Thai fishery sector accepts that the EU and US measures have had a psychological impact on the image of the country’s fishery products.

The Kingdom’s frozen-food industry employs about 300,000 workers. Seafood exports in 2014 totalled US$6.42 billion (Bt231 billion), with about 24 per cent being shipped to the US and 12 per cent to the EU market.

According to the Commerce Ministry, Thai fishery exports dropped 15.3 per cent to $4.52 billion during the first 10 months of last year.

However, fishery companies have said this was due to the global economy and an overall slowdown in trading, as opposed to IUU or TIP-related issues.

Fishery products accounted for 2.5 per cent of overall Thai export value during the period.

Enterprises insist they have already eliminated elements of their supply chains that were found to have been involved with illegal employment or forced labour.

While they acknowledge it is difficult to ensure that 100 per cent of their supply chains are free from forced labour, companies say they have already learnt to adjust and committed themselves to meeting international standards.

Somsak Paneetatyasai, president of the Thai Shrimp Association, said the government and private enterprises had been working strenuously over the past year to solve the problem of illegal employment.

He said some small plants in the supply chain, such as peeling sheds, may use forced labour, but once large enterprises or members of the Thai Shrimp Association or the Thai Frozen Foods Association (TFFA) recognise the problem, illegal operations were immediately cut from the supply chain.

Somsak said since many small enterprises were involved in the supply chain – from hatcheries, shrimp farmers and suppliers of feed-meal, to medical-equipment providers and fishery exporters – it was difficult to investigate every subcontractor.

However, if any enterprises were found to be involved with illegal employment, they were immediately eliminated from the supply chain, he stressed.

As an immediate measure to eliminate illegal labour, the TFFA has moved to eradicate third-party pre-processing operations from the shrimp supply chains of its members, a step that took effect at the end of last year.

All members of the TFFA must now bring shrimp pre-processing operations in-house in order to exercise full control over the work conditions of employees in the extended supply chain.

TFFA president Poj Aramwattana-non said that in support of the transition, the association would work with local non-government organisations to offer employment opportunities to workers who were previously employed by external pre-processors.

Moreover, he added, TFFA companies have signed on to strict rules regarding employment conditions aimed at eradicating human trafficking and illegal labour practices.

"As an association and a representative of Thailand’s seafood industry, we are committed to fighting against human-rights violations and illegal labour in the supply chain," he said.

Poj added that enterprises would continue to work with all stakeholders to address critical issues for the industry.

In a significant initiative that will help to strengthen oversight of the Thai shrimp supply chain, any association members that continue to source from external pre-processors will face the severe consequences of losing their membership and the ability to export their products, he said.

Large enterprises have also promised to operate their own supply chains from upstream to downstream, so that foreign buyers and the government can easily investigate the supply chain to ensure that employment is not coerced.

Seafood companies have said they are ready to undergo inspections by any international organisation over their handling of illegal fishing and human trafficking.

Close cooperation with authorities

Companies have also expressed a commitment to continue working closely with Thai authorities to tackle such issues, even if Thailand is removed from the bottom Tier 3 of the TIP report, or if it is upgraded from the EU’s current yellow-card status under IUU regulations.

Rittirong Boonmechote, president of the Global Shrimp Business Unit of Thai Union Group, said businesses would not only take steps to comply with international standards related to the fishery industry, but would also focus more on the sustainable growth of the sector, which would in turn ensure environmentally friendly production.

Thai Union Group and other seafood producers will lend full support to the government to tackle illegal fishing and human trafficking in order to retain the US and the EU as major markets, he said.