CC BY-NC-ND
0Available online at www.sciencedirect.com
ScienceDirect
Procedia - Social and Behavioral Sciences 91 (2013) 497 - 504
PSU-USM International Conference on Humanities and Social Sciences
Some issues of consumer preferences for eco-labeled fish to promote sustainable marine capture fisheries in peninsular
Malaysia
Lucie Reczkovaaa, Jamalludin Sulaimana, Zakaria Baharia
aSchool of Social Sciences, Universiti Sains Malaysia, P. Pinang 11800, Malaysia
Abstract
The fisheries sector in Malaysia is one of the main contributors to the Gross Domestic Product (GDP) and fish products are a main source of food and protein for the Malaysian population. While domestic and international demand for fish and fish products are growing, marine capture fisheries are on the decline. This situation requires and urgent solution. This paper aims to discuss the possibility of eco-labeling as a tool to promote sustainable fisheries in Malaysia. Some serious concerns are price premiums, impacts of certification on prices of fish and consumers' willingness to pay the price premium in order to obtain an eco-labeled fish. Other issues include high cost of certification, possible barrier for trade and non-suitability for multi-species fisheries. Eco-labeling in marine fisheries is quite of recent interest. Some studies have used willingness to pay (WTP) for eco-labeled marine capture fish to identify the factors influencing individuals to accept eco-labeled marine capture fish. The paper aims to answer the following questions: (1) what are the benefits of eco-labeling? (2) What is the status of the fishery sector in the country? (3) How will eco-labeling contribute to sustainability in fisheries in Malaysia?
© 2013 TheAuthors.PublishedbyElsevierLtd.
Selection and peer-review under responsibility of Universiti Sains Malaysia. Keywords: eco-labeling; consumer preferences; fish; sustainability; choice experiment;
1. Introduction
In general, eco-label also called environmental label can be defined as a logo, symbol, text, or seal of approval given to the product, which inform consumer about higher ecological quality of the product, in other words, less impact of the product on the environment [1-8]. Eco-labels thus convey to consumer unobservable information
* Corresponding author. Tel.: +604-6534618; fax: +604-6532907. E-mail address: lucie_reczkova@hotmail.com
1877-0428 © 2013 The Authors. Published by Elsevier Ltd.
Selection and peer-review under responsibility of Universiti Sains Malaysia.
doi: 10.1016/j.sbspro.2013.08.447
about the environmental attribute of goods and thus may influence consumer-purchasing decision towards products environmentally friendly [9,10]. In addition to environmental impact, eco-labeling creates market-based incentives as price premium to reward producers to supply environmentally friendly goods and encourage government and other agents to enhance the environmental standards of the products [9,11]. Briefly, the benefits of eco-labeling besides the environmental impact and price premium are an expanded share on already existing markets and assistance to access a potential markets[9].
Eco-labeling programs can be mandatory or voluntary. Governments only support the mandatory eco-labeling schemes. However, voluntary eco-labeling can be funded and supported by both private sector and government [5]. Voluntary eco-labeling is recently becoming an important competitive factor on many markets and also as a tool to stimulate environmental improvement as well as reduce stress on the environment [2]. Certification process, which is behind the eco-label, sets standards against which the applicant will be evaluated and if the candidate for eco-label complies with these standards, he/she is awarded an eco-label, which is then placed on the evaluated product [12].
The impact of eco-labeling of fisha has become an important issue after recognition that international regulation such as Food and Agriculture Organization's (FAO) Code of conduct) for responsible fisheries may
not be sufficient to adequately deal with many challenges fisheries management is facing today, mainly overexploitation and illegal, unreported and unregulated fishing [4,7,13]. Sustainable harvesting of fish resources or in other words, exploitation of fish at lower rate than naturally replenishing rate keeps marine resources renewable. Fish eco-labeling may help to achieve sustainable harvesting of fish, if consumers accept eco-labeled fish products and producers improve their fishery management [7]. Eco-labeling of fish products has been in use since the beg^mg of 1990's and started with "Dolphin Safe" label. Today, the worlds' leader in fish eco-labeling Marine Stewardship Council (MSC) -started in 1997. MSC is the most used and known one. While, MSC established its procedures and criteria based on FAO guidelines [10,12]. However, even though recently MSC incorporated program for fisheries in developing world [7], it has been condemned for not incorporating the particular situations of developing countries [7,12]. Fisheries awarded with MSC logo have to meet MSC environmental standards for sustainable fishing, which are based on the following principles: sustainability of harvested fish stock, maintenance of the ecosystem, the fishery is depending on, and responsible and effective management. MSC also included chain of custody in their program to prevent illegal fishing practices [14]. FAO has published in year 2005 a guidelines of fish eco-labeling to promote more sustainable fisheries [15]. According to these guidelines, the activity has to meet the minimum substantive requirements to be awarded an eco-label (the impact of the fishery on the ecosystem, the status of the harvested stocks and the fishery management system). In general these requirements assure credibility and in particular sustainability and well-managed fishery [16].
The rest of the paper is organized as follows: section two provides information about an issues and state of fisheries in Malaysia. Then section three presents an attributes of consumers' demand function for eco-labeled fish. Next, methodology followed by data collection and analysis and finally the last section is conclusion.
2. State and issues of fisheries in Malaysia
The fisheries sector has for many years played important role in the Malaysian economy. Besides contributing to Gross Domestic Product (GDP) and bringing foreign exchange, it is also an important source of employment, while fish is also a main source of protein supply to Malaysian population. The fishing sector in Malaysia can be divided into marine capture fisheries, inland fisheries, aquaculture and ornamental fisheries [17]. Marine capture
a Unless defined, the word "fish" include finfish and other seafood like crustaceans and mollusks.
fisheries can be further divided into inshore (coastal) and deep-sea fisheries, where inshore fisheries of peninsular Malaysia will be subject of this paper.
Great diversity exists in fisheries of Peninsular Malaysia due to environmental conditions, geographical location and multi-species, multi-gear and multi-stocks nature [2,18,19]. The marine resources consist of high number of commercial species and species groups. Annual Fisheries Statistics of Malaysia [18] listed 70 species. The huge number of species can be generally divided into demersal finfish, pelagic fish, crustaceans, mollusks and mixed fish composed of commercially less important species as well as trash fish [18,20].
In 1981 the Department of Fisheries Malaysia introduced the Fisheries Licensing Policy to allocate fishing grounds for three main purposes [23]:
• To insure sustainable exploitation of resources
• To improve productivity and right allocation of resources
• To keep traditional fishers employed and minimize friction between commercial and traditional fishermen [19,21-23].
The fishing grounds are divided by the size of the vessel; type of fishing gear and the ownership status to four zones (refer to Table 1). New permits are not issued for zone A, B and C [19,24,25].
Table 1. Fishing grounds
Zone Distance from shore in nautical miles Type of fishing gears and ownership status Vessels size in gross register ton
A from shore to 5 traditional fishermen and anchovy purse seine vessels 20
B 5 to 12 commercial trawl and purse seine < 40
C 12 to 30 commercial trawl and purse seine 40 - 69.9
C2 30 to the Exclusive Economic Zone (EEZ) commercial deep-sea fishing vessels operating trawl and purse seine > 70
Since 1990, the inshore fisheries have been contributing the highest production of fish compared to all other fisheries sectors. Production is still increasing, although slower. In inshore fisheries landed 1,096,663 tons of fish valued at RM 5,184.45 million in 2009, which constitute 78.71 per cent of national fish production. As shown in Fig. 1, inshore fisheries of peninsular Malaysia recorded growth during 1990s and 2000s.
900000 800000 700000 600000 3 500000 I 400000 300000 200000 100000
Fig. 1. Volume of Landings of inshore fisheries of peninsular Malaysia
However according study of Alam, et al. [19], Islam, et al. [18], Saharuddin [25] and Stobutzki, et al. [26] the inshore waters of peninsular Malaysia are overexploited, namely the severe exploitation is recorded for demersal fish, while pelagic fish are better off. Subsequently, trawlers and traditional vessels reported low productivity (1990 to 2005), and calls for immediate reduction in fishing activities to ensure sustainability.
Malaysian consumes fish and fish products highest compared to all other South-East Asia countries. The last three decades witnessed gradual increase from 44 kg in 1980 to 51.8 kg in 2009 [27,28].
While the fact that most of the fisheries are on decline is well-known there is not enough research on consumers' acceptance and willingness to pay for eco-labeled fish to promote sustainable fisheries in Malaysia. Studies on consumer preferences for eco-labeled fish have been extensively carried out in developed countries [710,13,29-32]. Therefore, there is lack of scientific research on factors influencing consumers' acceptance of and willingness to pay for eco-labeled fish in Malaysia. Most of the studies conducted in Malaysia were concentrated rather on measuring productivity of fisheries [18], management strategies [15,22,25,33] or sustainable fisheries development [19]. Only few research papers have investigated regional pattern of consumer demand for fish in a disaggregated manner [28,34].
Demand for fish among Malaysian has been growing over the years. A large part of the growth is due to change in lifestyle and healthier eating habits [28]. According to Din, Newby, and Flapan [35] fish and especially oily fish contain high levels of minerals, vitamins, protein, and omeaga-3 fatty-acids which help to lower the risk of stroke and coronary heart diseases. Another reason for higher demand are population growth, expansion in income and urbanization [34]. For example, in 1980s average consumption of fish was 44 kg, while in 1990s increased to 54 kg and between years 2000 and 2002 jumped to 58 kg per capita [28]. According to Kawarazuka [27] the consumption per capita was 51.8 kg in year 2009. Therefore fish play important role in the protein intake which accounts 37.2 per cent from all protein consumed per capita. The average expenditure on fish of Malaysian household is 21 per cent from total expenditure budget [34].
The response to the growing demand for fish is increase harvesting effort which leads to severe exploitation of fish resources [18]. Since the inshore fisheries supply the highest amount of fish they need to be managed in responsible and sustainable way to keep track with growing demand for the future. Malaysia responded to increasing harvest effort by establishing Fisheries Licensing Policy and by adopting FAO's Code of conduct for
responsible fisheries. Nevertheless, these two approaches may not be sufficient to adequately deal with overexploitation and illegal fishing [7,13,19,22,23]. Common problem oppressing license limitation programs is the inclination of the remaining fishing vessels to use unregulated inputs to increase their fishing capacity. Furthermore fishing pressures may not be lowered by reducing the number of fishing vessels. Eco-labeling as a new environmental instrument could be a successful way to solve the above mentioned issues [29].
On the other hand, there are worrying concerns regarding the costs of eco-labeling, because it is perceived to be costly. However, Roheim et al. [9] argue that the transition process from fishery, which is not managed for sustainability to sustainably managed fishery cost much more than certification process and to obtain an eco-label.
In summary eco-labeling will help manage fisheries responsibly and sustainably and deal with illegal, unreported and unregulated fishing practices. Moreover, it will create market benefits such price premium, added value to traditional products and assistance to access already existing and potential markets [2]. To make eco-labeling program achieve its goals, consumers must hold preferences for environmental improvement and preservation. By utilizing environmental attribute in the consumers' demand function, it will provide an incentive and reward in form of price premium for fisheries managing their resources in sustainable and responsible way [13,29].
3. Attributes of Consumers' Demand Function for Eco-labeled Fish
Understanding the attributes of Malaysian consumers' demand for eco-labeled fish will provide foundation for policy makers and for government authorities.
There are a number of studies done in developed countries. Brecard et al. [7] studied eco-label demand for fish in Europe. In their study, influence of information, intrinsic motivation, socio-economic factors and localization were investigated on demand for an eco-labeled fish. Findings show a significant relationship between the above factors and the ecological issue regarding fisheries. Production process characteristics (wild vs. farmed, origin, level of natural stocks) and inaccurate regulation had all significant relationship with the acceptability of seafood eco-labeling. They concluded the educated and young consumers living in non-coastal area have higher demand for eco-labeling.
Evidently, no study addressing consumer preferences for eco-labeled fish in Malaysia has been done. However, few empirical studies have been exploring the characteristics of Malaysian demand side of fisheries industry with no eco-labeling perspective. A recent study of Tan & Lee [28] on the effect of socio-demographic factors on demand for seafood products in Malaysia found that age, family size, race and income have significant and positive influence on demand for seafood products. On the other hand, education level, strata and gender were found not significant. Dey et al. [34] investigated patterns of demand for fish consumption in nine Asian countries included Malaysia. The results show importance of species, cultural responses of consumers and sources in fish demand.
4. Methodology
Prediction of consumer choice behavior can be done through discrete choice models, which belong to choice modeling. The choice modeling constitute of tools that allow to elicit and model consumer preferences, approximate discrete-choice models, apply the models to predict choices and place non-monetary and monetary values on specific attributes that explain choices [36].
In this study, a binary model will be used, because consumers will make discrete choices from sets of alternatives. While using a binary model, environmental good (eco-labeled fish) is valued based on its attributes. If one of the attributes has monetary value, estimates of marginal utility can be translated into estimates of willingness to pay for changes in level of attribute [37,38].
5. Data collection and analysis
Based on the previous researches, the respondents will be consumers who buy and consume fish. The targeted population for this study is the consumers in Penang, Malaysia. The survey will be carried out in places, where actual purchases take place, like local markets and fish sections of hypermarkets (e.g., Jusco, Tesco, Carrefour, and Giant). The sample size will be minimum 400 respondents. The survey will be divided into two parts. First part will be a choice experiment, when respondents will have to choose between alternatives. The second part will consist of the main questionnaire.
In this research, exploratory factor analysis will be used. Data will be analyzed by using SPSS software version 18.0. Multiple regression analysis will be applied to test the hypothesis of the study. In order to confirm the analysis of our data the study will use confirmatory factor analysis by using software AMOS 18.0.
6. Conclusion
The main objective of this paper is to introduce a conceptual idea, how can eco-labeling of fish through demand side of fisheries sector contribute to sustainable development of fisheries in Malaysia. Eco-labeling as a new environmental tool will help to manage fisheries in responsible and sustainable way to stop overexploitation while keeping supply of fish for this and next generations. Moreover it can fight illegal and unreported fishing, creates price premium to reward fisheries, asses to access a new markets and expanding share of existing markets. However, to achieve these goals, consumers have to demonstrate preferences through their willing to pay for eco-labeled fish. The contribution of this study will help researchers in understanding consumers' behavior towards eco-labeled fish. Moreover, the results arising from this study will help the Malaysian government to consider the adoption of eco-labeling program and its principles.
References
[1] Bonilla, A., "Eco-labeling for Change: The Marine Stewardship Council and the Creation of Sustainable Fisheries?," Master of Arts M.A. dissertation, Urban and Environmental Policy Planning, TUFTS University, United States - Massachusetts, 2008.
[2] Bjerner, M., Boonyaratapalin, M., Mungkung, R., and Wennberg, N., "Study on Eco-labelling of Aquatic Products: General view and future considerations for the ASEAN region," Bangkok2006.
[3] Vitalis, V., "Private Voluntary Eco-labels: Trade Distorting, Discriminatory and Environmentally Disappointing," presented at the The 9th Round Table on Sustainable Development, Paris, 2002.
[4] Potts, T. and Haward, M., "International Trade, Eco-labelling, and Sustainable Fisheries - Recent Issues, Concepts and Practices," Environment, Development and Sustainability, vol. 9, pp. 91-106, 2007.
[5] Deere, C., Eco-labelling and sustainable fisheries: IUCN: Washington, D.C. and FAO: Rome, 1999.
[6] Gardiner, P. R. and Viswanathan, K. K., "Ecolabelling and fisheries management," The WorldFish Center Studies and Reviews2004.
[7] Brecard, D., Hlaimi, B., Lucas, S., Perraudeau, Y., and Salladarre, F., "Determinants of demand for green products: An application to eco-label demand for fish in Europe," Ecological Economics, vol. 69, pp. 115-125, 2009.
[8] Brecard, D., Lucas, S., Pichot, N., and Salladare, F., "Consumer Preferences for Eco, Health and Fair Trade Labels. An Application to Seafood Product in France," Unpublished, 2011.
[9] Roheim, C. A., Asche, F., and Santos, J. I., "The Elusive Price Premium for Ecolabelled Products: Evidence from Seafood in the UK Market," Journal of Agricultural Economics, pp. 1-14, 2011.
[10] Salladarre, F., Guillotreau, P., Perraudeau, Y., and Monfort, M., "The Demand for Seafood Eco-Labels in France," Journal of Agricultural & Food Industrial Organization, vol. 8, 2010.
[11] Gallastegui, I. G., "The use of eco-labels: a review of the literature," European Environment, vol. 12, pp. 316-331, 2002.
[12] Washington, S., Ecolabels and Marine Capture Fisheries: Current Practice and Emerging Issues: Food and Agriculture Organization of the United Nations, GLOBEFISH, Fishery Industries Division, 2008.
[13] Jaffry, S., Pickering, H., Ghulam, Y., Whitmarsh, D., and Wattage, P., "Consumer choices for quality and sustainability labelled seafood products in the UK," Food Policy, vol. 29, pp. 215-228, 2004.
[14] Marine Stewarship Council. (2011, 13. June). Our Solution. Available: http://www.msc.org/healthy-oceans/our-solution
[15] Thrane, M., Ziegler, F., and Sonesson, U., "Eco-labelling of wild-caught seafood products," Journal of Cleaner Production, vol. 17, pp. 416-423, 2009.
[16] Sainsbury, K., "Review of ecolabelling schemes for fish and fishery products from capture fisheries," FAO Fisheries and Aquaculture Technical Paper, vol. No. 533, p. 93, 2010.
[17] Department of Fisheries Malaysia. (2009, 7. June). Annual Fisheries Statistics 2009. Available: http://www.dof.gov.my/641
[18] Islam, G. M. N., Noh, K. M., and Yew, T. S., "Measuring productivity in fishery sector of Peninsular Malaysia," Fisheries Research, vol. 108, pp. 52-57, 2011.
[19] Alam, M. F., Ishak, H. O., and Squires, D., "Sustainable Fisheries Development in the Tropics: Trawlers and Licence Limitation in Malaysia," Applied Economics, vol. 34, pp. 325-37, 2002.
[20] Blackhart, K., Stanton, D. G., and Shimada, A. M., "NOAA Fisheries Glossary," Second ed: United States Department of Commerce National Oceanic and Atmospheric Administration, 2006.
[21] Haughton, M., Simmonds, J., Straker, L., and Bethel, W. G., "Comparative study mission to the Philippines and Malaysia for the study of the use of demographic and socio-economic information in coastal and fisheries management, planning and conservation," Food and Agriculture Organization 2005.
[22] Yahaya, J., "Fishery management and regulation in Peninsular Malaysia: Issues and constraints," Marine Resource Economics, vol. 5, pp. 83-98, 1988.
[23] Ooi, J. B., Development problems of an open-access resource: the fisheries of Peninsular Malaysia. Singapore: ASEAN Economic Research Unit, Institute of Southeast Asian Studies, 1990.
[24] Department of Fisheries Malaysia. (2011, 9. June). Licensing procedure and fisheries zone. Available: http://www.dof.gov.my/35
[25] Saharuddin, A. H., "Development and management of Malaysian marine fisheries : Technical conservation measures," Marine Policy, vol. 19, pp. 115-126, 1995.
[26] Stobutzki, I. C., Silvestre, G. T., Abu Talib, A., Krongprom, A., Supongpan, M., Khemakorn, P., Armada, N., and Garces, L. R., "Decline of demersal coastal fisheries resources in three developing Asian countries," Fisheries Research, vol. 78, pp. 130-142, 2006.
[27] Kawarazuka, N., "The contribution of fish intake, aquaculture, and small-scale fisheries to improving food and nutrition security: A literature review," The WorldFish Center, p. 51, 2010.
[28] Tan , A. K. G. and Lee , H. S. H., "Determinants of Malaysian household expenditures on freshfish, shellfish, and processed fish," presented at the 5th International Conference Of Asian Society Of Agricultural Economists, Zahedan, Iran, 2005.
[29] Erwann, C., "Eco-labelling: A new deal for a more durable fishery management?," Ocean & Coastal Management, vol. 52, pp. 250-257, 2009.
[30] Johnston, R. J., Wessells, C. R., Donath, H., and Asche, F., "Measuring Consumer Preferences for Ecolabeled Seafood: An International Comparison," Journal of Agricultural and Resource Economics, vol. 26, pp. 20-39, 2001.
[31] Roheim, C. A., Johnston, R. J., Greer, J., and Donath, H., "A Battle of Taste and Environmental Convictions for Ecolabeled Seafood: A Choice Experiment," Journal of Agricultural and Resource Economics, vol. 31, 2006.
[32] Wessells, C. R., Johnston, R. J., and Donath, H., "Assessing Consumer Preferences for Ecolabeled Seafood: The Influence of Species, Certifier, and Household Attributes," The American Journal of Agricultural Economics, vol. 81, pp. 1084-1089, 1999.
[33] Teisl, M. F., Roe, B., and Hicks, R. L., "Can Eco-Labels Tune a Market? Evidence from Dolphin-Safe Labeling," Journal of Environmental Economics and Management, vol. 43, pp. 339-359, 2002.
[34] Dey, M. M., Garcia, Y. T., Kumar, P., Somying, P., Haque, M. S., Luping, L., Radam, A., Senaratne, A., Khiem, N. T., and Koeshendrajana, S., "Demand for fish in Asia: a cross-country analysis," Australian Journal of Agricultural & Resource Economics, vol. 52, pp. 321-338, 2008.
[35] Din, J. N., Newby, D., and Flapan, A. D., "Omega 3 fatty acids and cardiovascular disease—fishing for a natural treatment," British Medical Journal, vol. 328, pp. 30-35, 2004.
[36] Louviere, J. J., Hensher, D. A., and Swait, J. D., Stated choice methods: analysis and applications: Cambridge University Press, 2000.
[37] Wikström, D., "Willingness to pay for sustainable coffee: A choice experiment approach," Master, Department of Business Administration and Social Sciences, Luleá University of Technology, Luleá, 2003.
[38] Hanley, N., Adamowicz, V., and Wright, R. E., "Do Choice Experiments Pass the ScopeTest? A Test of Scope in a Choice Experiment Examining the Benefits of Water Quality Improvements," in EAERE/AERE World Congress, Monterey, 2002.
