East African nations sharing Lake Victoria could be forced to reduce dependency on the Nile Perch for foreign exchange earnings following a shift in consumer preferences to other species in key EU markets.
A market report for July by the Food and Agriculture Organisation (FAO) showed that EU imports of Nile Perch fillets have been falling, continuing a trend that began two years ago. Only Tanzania has kept its export levels since 2005, while Kenya and Uganda have continued reporting substantial declines in exports, the report in FAO's Globefish bulletin said.
"In 2007, however, prices declined somewhat. Some of these declines are due to a strong Euro currency, but a part of it is probably due to huge competition. Pangasius is now entering the EU market also in fresh form, thus competing directly with fresh Nile Perch fillets in markets such as Spain and Italy," the document explained.
For starters, Nile Perch and Pangasius are considered rivals in the market because they are both classified in a special category of fish with white meat. This renewed good performance by Pangasius in the key market segments adds to the woes of the Nile Perch industry that also faces a bleak future due to declining catches and prices. This state of affairs has already triggered a major shake-up in the industry with Anova, the leading importer of Nile Perch into the European markets, moving to expand its interest in the Pangasius trade.
"Lake Victoria fishing nations are well advised to strongly control fishing and fishing quotas of Nile Perch in the lake. In addition, they are wisely moving into alternative species, which includes tilapia farming around the lake," said fishery experts at the UN agency.
FAO said Kenya, Uganda and Tanzania have a chance to maximise on alternative species such as tilapia because there are already existing industry structures and trade channels in Europe that would guarantee an easy entry into the market. Tanzania could however be forced to change its export rules to enjoy the fresh opportunities. For several years tilapia exports from the nation have remained banned to guarantee food security for the local population.
"Kenya, on the other hand is trying to reduce the dependence on Nile Perch for foreign exchange earnings. Agrant worth US$7.82 million will be provided by the EU to Kenyan fishermen operating in Lake Victoria. The grant will be utilised for access roads in East Africa as well as enhance equipment for landing fish," the document said.
But even with this second option for the East African states, players in the industry would have to strive to beat other emerging challenges because fish exports from Lake Victoria will be required to be compliant with international environmental standards.
Efforts have already began in attaining such standardisation through a process known as eco-labelling, in which the products would bear a logo that indicates they have been certified and produced within set standards. Discussions are underway to explore possibilities for eco-labelling Nile perch following an agreement at a stakeholders meeting last year.
The meeting, which brought together representatives from the fish industry, governments and development partners, provided the first steps in eco-labelling for in-land fisheries with a consensus to work towards gaining a Marine Stewardship Council label for Nile Perch from the whole Lake Victoria.
It is envisaged that this would also help diminish the bad image of Nile Perch in the European market created by a controversial documentary, 'The Darwin's Nightmare,'which alleged that earnings from the lake were being used to fuel armed conflicts in the region.
The documentary also claimed that consumers in the EU were enjoying delicious supplies of Nile Perch fillets while millions of people in communities around the lake were starving to death.
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