As the global population continues to rise, the demand for aquaculture products has surged, establishing the industry as a vital pillar of global food security. The potential for aquaculture is immense, with diverse ecosystems and extensive coastlines providing opportunities for sustainable growth. Yet, realizing this potential requires responsible management to protect ecosystem health, ensure sustainable cultivation of aquatic organisms, and address the challenges of disease, pollution, and traceability within seafood supply chains.
Since 2010, aquaculture production has consistently surpassed capture fisheries production, contributing about 68.4% of Indonesia's total fishery production until 2019, with an average growth rate of 16% per year from 2000 to 2019 (Aquaculture Mag: 2023). However, this impressive growth comes with the following significant challenges:
Environmental Impact: The rapid expansion of aquaculture, if not managed sustainably, poses significant risks to our environment, including habitat destruction, water pollution, and biodiversity loss. According to our Head of Sector, Sarah Harding, shrimp farming has been a major driver of mangrove deforestation over the past 25 years. This practice has resulted in the large-scale clearing of these vital ecosystems to make way for shrimp production ponds.
The consequences of this deforestation are severe, leading to the loss of biodiversity, increased coastal erosion, and the disruption of mangroves' critical carbon storage functions. Between 35% and 50% of global mangrove forests have disappeared in recent decades due to shrimp farming, with Southeast Asia experiencing the highest rates of loss (IDDRI: 2019).
Without immediate action, the continued loss of mangroves will not only exacerbate environmental degradation but also threaten the livelihoods of communities that depend on these ecosystems for their economic and social well-being.
Disease Management: High-density farming increases the risk of disease outbreaks, which can devastate local ecosystems and economies. The higher the density of organisms per cubic meter, the greater the risk of disease formation and transmission. This is primarily due to the increased amount of waste, such as feces and uneaten feed, which raises the nutrient content in the water and affects the water condition, creating conditions ripe for disease outbreaks. "In many aquaculture operations, particularly in Asian countries, the wastewater from these farms is often released directly into the environment without proper filtration. This unfiltered water can then enter natural waterways and estuaries, bringing the risk of disease into contact with wild ecosystems and organisms, potentially causing widespread ecological harm," said Sarah.
Supply Chain Transparency: The complexity of global supply chains makes it challenging to trace the origin, handling, and social impact of aquaculture products. A lack of transparency can lead to food safety issues, fraud, environmental concerns, and human rights abuses. A report indicates that enhancing traceability throughout the entire seafood value chain could increase global seafood profits by 60%. However, the 2021 Seafood Stewardship Index reveals that 50% of the world's most influential seafood companies still lack a comprehensive commitment to safeguarding human rights in their operations (Client Earth: 2023). This highlights a significant opportunity for the industry to not only improve ethical standards but also realize substantial financial gains by prioritizing traceability and human rights.
Climate Change: Climate change impacts aquaculture both directly and indirectly. Direct effects involve changes to the physical condition and physiology of finfish and shellfish, while indirect effects influence ecosystem productivity, input supplies, and product costs (Global Seafood Alliance: 2021). Rising sea temperatures and ocean acidification, for example, can alter habitats, leading to shifts in species distribution and the availability of key resources. These environmental changes not only disrupt established aquaculture practices but also increase the uncertainty and risks associated with future production.
In addition to the mentioned challenges, public perception and regulatory frameworks pose further obstacles to aquaculture's future. Concerns over sustainability and food safety can sway market demand, while inconsistent regulations often hinder the adoption of responsible practices. These challenges, alongside the issues of disease management, supply chain transparency, and climate resilience, underscore the complexity of achieving a truly sustainable aquaculture industry.
Recognizing these challenges, it becomes essential to adopt practices that ensure food safety and transparency throughout the supply chain. In line with sustainable practices, the US Food Safety Modernization Act (FSMA) regulations highlight the importance of traceability for all fresh produce items on the FDA's Food Traceability List, including aquaculture products. This regulation mandates that tracebacks to product origins must be completed within 24 hours, ensuring quick identification of contamination sources and improving transparency in the supply chain (Food Safety: 2024).
Similarly, on a global scale, traceability has become a cornerstone of sustainable aquaculture. For instance, the European Union enforces stringent traceability requirements to ensure that seafood products are safe, sustainable, and legally sourced. These regulations are crucial in combating illegal, unreported, and unregulated (IUU) fishing, a significant issue in many regions around the world.
Realizing the need to align with these regulations, countries in Asia, such as Japan and South Korea, are advancing their traceability systems to meet both domestic and international demands for sustainable aquaculture products. Technological innovations, including AI and QR codes, are being integrated into supply chains to provide real-time data on the origin, handling, and distribution of seafood, further enhancing transparency and accountability.
Leading the Way in Aquaculture Sustainability with a Robust Traceability Platform, KoltiTrace MIS
We were founded in 2013, and are now operating in 61 countries covering 58 commodities. Since 2018, we have expanded into seascapes, providing expertise and services in producer mapping and surveying, traceability support, training and coaching, as well as facilitating financial inclusion through financing management and disbursement. In supporting businesses in adopting sustainable practices and adhering to increasingly stringent regulations, we provide a reliable mechanism for exchanging precise information across the entire supply chain.
This is where KoltiTrace plays a vital role. As a digital traceability solution, KoltiTrace meticulously records every aspect of the product journey, directly addressing consumer concerns and enhancing trust in the industry. Through KoltiTrace MIS, we have registered more than 6,000 producers and 120 businesses within key aquatic sectors like seaweed, sea salt, and shrimp in countries such as Madagascar, Indonesia, and the Philippines. We also track more than 6,800 production plots, covering approximately 4,600 hectares of verified production areas. This meticulous registration and verification process not only aligns with sustainability standards but also strengthens the producers' position in the market. By ensuring that products are certified and traceable, KoltiTrace enables producers to meet the demands of markets that prioritize transparency and sustainability. With KoltiTrace, the entire supply chain becomes transparent, reducing the risks of food fraud, enhancing food safety, and reinforcing the overall integrity and sustainability of the seafood industry.
KoltiTrace MIS is a management information system designed to deliver end-to-end transparency through seamless integration of various applications. This advanced traceability platform offers a comprehensive suite of features accessible through both the web and mobile applications, ensuring robust and reliable traceability information for all stakeholders. Key features include:
Supplier and Producer Data Management
Effective supplier and producer data management is crucial for achieving traceability and transparency in the seafood industry. This involves comprehensive oversight of producer profiles, training metrics, supplier registration, surveys, and interactions. As Sarah highlighted, accurate supplier and producer data is the foundation for transparency and traceability—without it, these goals cannot be achieved. Our tool integrates traceability data with environmental and social metrics, providing a complete view of the supply chain. This detailed data management ensures that all stakeholders have access to reliable, transparent information, fostering trust and accountability across the industry.
Transactional Traceability
Crop production traceability with complete producer profiles and verified digital transactions from pond to table. KoltiTrace provides real-time transactional traceability, offering full visibility of Key Data Elements (KDEs) during Critical Tracking Events (CTEs) and monitors product movement and transformation throughout the supply chain. This comprehensive coverage spans aqua-input manufacturers and shops, producers, buying stations, trading, processing, and manufacturing, all the way to retail and end consumers. By focusing on collecting and monitoring data up to the processing stage for various commodities like shrimp and seaweed, KoltiTrace showcases the potential for full end-to-end traceability. It is not just a tool for tracking products but a powerful platform for enhancing transparency, accountability, and trust across the entire supply chain.
Geolocation & Mapping Features
Precise farm locations with exact pinpoints and polygons of farms enable accurate tracking of seafood sourcing. This helps verify the origin of the products and ensures they come from approved and sustainable suppliers. The geolocation and mapping process in KoltiTrace involves farm field agents physically walking around ponds with our app to accurately record the polygon and geolocation data of each farm. This hands-on approach ensures that we capture precise farm boundaries, which is crucial for verifying the exact origin of seafood products. By pinpointing these locations, we can confirm that the products are sourced from approved and sustainable suppliers, thereby enhancing traceability and transparency within the supply chain. While the specific data collected may differ depending on the type of commodity—whether it's shrimp or seaweed—the fundamental process of capturing geolocation and mapping remains consistent across all aquaculture operations. This consistency is key to maintaining the accuracy and reliability of the traceability data, which is essential for supporting sustainable practices and meeting regulatory requirements. The use of these precise geolocation and mapping features not only aids in the tracking of goods but also plays a vital role in ensuring that the aquaculture industry adheres to environmental and sustainability standards.
Dashboards and Reporting
Real-time updates in the form of dashboards and reports allow stakeholders to monitor key metrics and track performance across various stages of the supply chain. In the aquaculture sector, KoltiTrace enhances this capability by providing comprehensive visibility into producer data profiles, training metrics, and supplier interactions. Data collected from mobile apps is seamlessly integrated into the web platform, offering neat summaries and aggregated data analysis. This includes crop traceability with complete producer profiles and verified digital transactions from sea to table. KoltiTrace ensures high data quality through the automatic screening of polygons and validation mechanisms, supporting clients in managing certification cycles via the Internal Management System (IMS) menu, which includes internal audits, training, and documentation management. By mapping and monitoring supply chains in real time, our tools enable businesses to identify weaknesses, address specific issues with data-driven interventions, and not only comply with regulations but also exceed industry standards.
In essence, KoltiTrace's ability to collect data from multiple suppliers, triangulate that data, and then use it to support integrated value chain management is how we enable businesses to trace and verify product origins, ensure compliance with sustainability standards, and enhance overall supply chain efficiency. By leveraging KoltiTrace's advanced traceability solutions, the seafood industry can effectively manage sustainable practices, meet regulatory requirements, and maintain quality throughout the supply chain. This approach not only bolsters consumer confidence but also positions businesses as leaders in the global marketplace.
Centered on enhancing seafood traceability and offering innovative solutions for a robust aquaculture sector, we eagerly anticipate a future that prioritizes sustainability for our aquatic resource projects and surrounding communities. Join us in transforming this vision into tangible outcomes. Connect with us today and help shape a more sustainable tomorrow.
Resources:
Food Safety Magazine. (2023). Regulatory, industry experts share best practices around FSMA 204 and traceability efforts. Retrieved from https://www.food-safety.com/articles/9456-regulatory-industry-experts-share-best-practices-around-fsma-204-and-traceability-efforts
Aquaculture Magazine. (2023). Supporting the aquaculture of the world's largest archipelago, Indonesia. Retrieved from https://aquaculturemag.com/2023/01/16/supporting-the-aquaculture-of-the-worlds-largest-archipelago-indonesia/
ClientEarth. (2023). Tracing a line: Do businesses know the real cost of seafood? Retrieved from https://www.clientearth.org/latest/news/tracing-a-line-do-businesses-know-the-real-cost-of-seafood/
Fraser, H., Charles, A., & Mamane, L. (2020). Getting the shrimp’s share: Why governance matters for sustainable shrimp aquaculture. Institut du Développement Durable et des Relations Internationales (IDDRI). Retrieved from https://www.iddri.org/sites/default/files/PDF/Publications/Catalogue%20Iddri/Rapport/Getting%20the%20shrimp%20s%20share.pdf
Global Seafood Alliance. (2022). Climate change effects on aquaculture production. Retrieved from https://www.globalseafood.org/advocate/climate-change-effects-on-aquaculture-production/
Writer: Kumara Anggita, Content Writer
Contributor: Sarah Harding, Head of Sector
Editor: Daniel Prasetyo, Head of Public Relations and Corporate Communications
About the Writer
Kumara Anggita, serving as Koltiva's dedicated Content Writer, brings a wealth of experience from her six-year tenure in journalism in the fields of humanities and lifestyle, as well as her role as a writer in the tech industry. Her deep-rooted passion for gender equality and sustainability spurred her to enhance her reporting and storytelling skills through the EmPower Media Bootcamp by UN Women. Now, Kumara utilizes her platform to advocate for sustainable practices and gender equality through her compelling writing.
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