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IMPLEMENTATION OF COLD CHAIN TECHNOLOGY IN

FISHERY PRODUCT INDUSTRY IN INDONESIAN

Thomas DarmawanChairman of AP5I / Chief of Fisheries APINDO

Chairman of Food & Beverages Industries KADIN Indonesia.

Presentation Paper on International Conference on Food for Quality Life , IAFAT/PATPI and IPB.

JIEXPO, Kemayoran, Jakarta, 15-16 October 2014

GLOBAL FOOD DEMAND From 7 billion world population, 1,1 billion people

income less than US$1/day, malnutrition, hunger. Consume only fiber, carbohydrate & dried fish.

2,7 billion people <US$2/day. Consume only fiber, carbohydrate, plant protein&canned fish/salted/dried

If their income more than US$2/day, malnutrition & hunger can be improved. Consume: carbohydrate, fiber, plant protein, eggs, fresh fish/canned/dried.

If the income >US$ 5–10/hr, consumption more onmeat, milk, fresh fish, processed/shrimp, fruit/veg.Food requirement’s more variety & increased

Income more >US$ 10/hari, more food with animal protein & fishery product that already processed, packed with more value added such: sushi, sashimi, fillet, steak, tempura, nugget & eat at resto/hotel.

Industry ready to fulfill the food neccessity for poor and medium class with safe and affordable food.

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World fish consumption per capita & per year

MARKET ACCES EASIER TO THE HIGH CONSUMPTION COUNTRIES

source: FAO ‐ Cai (2011) 7

POPULATION & FOOD SECURITY IN ASEAN+6 (RCEP)

1,354 M1,258 M 127 M

50 M 27 M

247 M96 M

89 M

70 M

49 M

29 M

14 M

6 M5,2 M

0.4 M

•N.Z.5 M

ASEAN = 600 million; ASEAN+6 = 3.400 million

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Indonesia Fisheries More than 17,500 islands along the equator (12 months

growing season, no snow/typhoon), 5,8 million km2 of sea, National seawater +/- 3,1 mil km2, ZEE :+/- 3,0 mil km2

Coastline : 95,181 km, Brackish water/tambak : 1,2 mil ha, Freshwater/kolam : 627.000 ha.

Indonesia has the largest potential of fisheries production (65 million tons/year) in the world.

Population 245 million (2013) --> 300 million (2025) Fish Consumption 35,62 kg/cap/yr (2013) -> 38 kg (2015).

Need additional of 1 million ton of fish within 2 years. Provides 65% of total animal protein intake to Indonesian diet (Chicken:8kg, meat:2,5kg, eggs:87pc, milk:11,5 lt/cap)

Global : AFTA (2005), CAFTA (2010), AEC (2015) Long-term seafood market growth drivers :

The rise of middle income class in Asia Pacific Countries

2.86

3.52

3.93

4.16

5.65

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

2010 2011 2012 2013 * 2014 *

USD

Milia

r

30.48

32.25

33.89

35.62

38.00

30.00

31.00

32.00

33.00

34.00

35.00

36.00

37.00

38.00

39.00

2010 2011 2012 2013 * 2014 *

Kg/ka

pita

Value of Fisheries Export Fish Consumption per Capita

PERFORMANCE 2010-2012 & TARGET 2013-2014

THN TOTAL US $ mil

SHRIMPUS $ mil

FISH US $ mil

TunaUS $ mil

CrabUS $ mil

OthersUS $ mil

1 2008 2.699 1.165 734 347 214 2382 2009 2.466 1.007 723 352 156 2253 2010 2.863 1.056 898 383 208 3174 2011 3.521 1.309 1.100 498 262 3495 2012 3.854 1.304 965 749 329 505

6 2013 4.181 1.614 857 764 359 587

INDONESIA FISH EXPORT2008 - 2012 (value – in US $ million)

Sources : DJ P2HP - 2014 & BPS

Live Fish : Grouper, Lobster Hongkong, Singapore& China

Fresh Product : Important Economic Fish Singapore, Malaysia Tuna (loin) Japan, EU, USA

Frozen Product All Importing Countries Shrimp/Prawn Tuna Cephalopode : sotong, gurita & squid Fish:Tilapia,Snapper, Baramundi, Milkfish, Patin Kekerangan; Soft shell crab

Canned Product (tuna, mackarel, sardine, shrimp, cephalopode, pasteurized crabmeat, baby clam)

Dried Product : Anchovy, salted fish & ell Japan Value-added products USA, Japan, EU

Breaded (tempura, fish ball, etc) Fillet : tilapia, snapper, patin / pangasius, Tuna loin, steak, sashimi, sushi.

Saeweed & Carragenan China, EU, Philipina

FISH PRODUCTS & MARKET DESTINATION

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TARGET OF FISH FOR CONSUMPTION & EXPORT

INDICATOREstimate Target Target

2013 2014 2015 2016 2017 2018 2019Consumption (Kg/Cap) 35.62 38.00 40.01 42.12 44.35 46.69 49.16Total population (million people) 248,4 252,1 255,9 259,7 263,6 267,5 271,5Total fish demand for  consumption (million ton)

8,9 9,6 10,2 10,9 11,7 12,5 13,3

Total raw material req’t for industry  & export (million ton)

2,1 3,0 3,3 3,7 4,1 4,6 5,1

Valueoffisheriesexporf(USD billion) 4,16

5,65 6,19 6,82 7,55 8,41 9,43

VolumeofFisheriesProcessedproduct(millionton)

5,20 5,60 6,00 6,50 7,00 7,50

Singapura, Malaysia, Thailand, Filipina & China had prepared their HRD, SME,s & Industries for ASEAN-China FTA.

Bank Interest rates in ASEAN lower than in Indonesia Distribution cost of good in Indonesia on main road more

expensive (US$34 cent/km) than in Mal, Viet, Thai, Cina : US$22 cent/km, (The Asia Foundation). Also the cost of Sea freight.

Thailand, Vietnam & China had developed large complex for their Seafood Industrial Centre, large size & integrated as trade centre for export & local market (Mahachai, Samut Sakorn in Thai and Zhanjiang, Tianjin, Dalian, Zhou-san in China).

China has developed the largest complex in the country for cold storage with the capacity will soon be 1 million ton of storage (2015) in Dalian.

Chinese eat about 1 billion tons of perishable food each year & over 50% of that should be transported through the cold chain.

Indonesia has the “Minapolitan” for development of capture fisheries & aquaculture. Also the SLIN (Fisheries Logistic)

CHALLENGES OF ASEAN – China FTA CHALLENGES OF ASEAN – China FTA

CHINA : Pengolahan ikan trout & salmon import dari luar & hasilnya diexport ke negara lain, shg value added ada disana & industri berkembang.

Typical situation…….

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VIETNAMTANTANGAN EKSTERNAL : Persiapan Negara Lain PANGASIUS PROCESSING IN VIETNAM (FROZEN FILLET)

SEAFOOD PRODUCT FOR RETAIL & RESTAURANT

Processing Procuct Storage

Consumtion

Retail & export

TransportStorage

Collector

Farmers Fisherman

Supply chain for fish products is

long & complicated important to have product standard,

certification & traceable

Fish/shrimp processing industry create employment (1.000 people to process 2.000 ton fish/shrimp). Not including the employment on farm, traders, feed mill, hatchery also the fisherman.

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Canned Seafood Frozen Seafood

Fresh Seafood Dried seafood

Processing

Marine, Aquaculture & Seafood Chain

•Retail & Wholesale

•Feed Mills •Fishmeal •Fish Oil •Food Supplements

•by products

•Carrageenan•Seaweed

• Fishing Vessel

• Fishing Gear• Collecting &

Handling• Fishing PortSea Caught

• Breeding• Hatchery• Pond culture• Harvesting

Aquaculture‐

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Jawa Sumatera Bali‐Nusatenggara

Kalimantan Sulawesi Maluku‐Papua

•(ton)

Ket:*)Datatahun2012

CAPTUREFISHERIESPRODUCTIONinJAWA&Outside JAWA

•27,8%

•19,4%

•6,2%•9,1%

•17,8%•19,7%

Jawa Outside Jawa

THE SEAFOODPROCESSINGUNITin JAWA‐LUARJAWA

CAPTUREFISHERIESPRODUCTIONinJAWA only19,4%, butthe PROCESSINDUnitconcentratedin Jawa

•Sumber:DitjenP2HP,2012

•Ja

tim

PERKEMBANGAN UNIT PENGOLAH IKAN 2008–2011

No UPI 2008 2009 2010 2011 Pertumbuhan (%)

1. Udang 161 150 145 150 (- 6,80)2. Non

Udang 271 273 356 420 24,19

Jumlah 432 423 501 570 13,6

Sumber : DJ P2HP  ‐ 2012

UMKM pengolahan ikan +/- 103.973 unitREGISTERED EXPORTERS TO MAIN DESTINATION COUNTRIES

NO COUNTRY TOTAL Exporter1 USA 235 UNIT2 UNI EROPA 190 UNIT3 CANADA 150 UNIT4 CHINA 335 UNIT

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•GARA TIMUR

• Produksi Centre, industri and Distribusi• Production Area

THE POTENTIAL CONECTIVITY AMONG PRODUCTION, DISTRIBUTION & INDUSTRY

•KETERANGAN :

•Sumber: Policy Brief Pokja Masterplan SLIN, DJ P2HP, KKP-2012

Medan 

Pakanbaru

Palembang

LampungJakarta

Surabaya Makasar

Kendari

Banggai

Ambon

BitungTernate

SorongBalikpapan

Toli‐Toli

BanyuwangiJember

Semarang

Tasikmalaya

Serang

LamonganBandung

SukabumiBogor

Bau‐BauButon

Aceh

LIN UP4BMP3EI

MINAPOLITAN, MP3KI‐PENINGKATAN KEHIDUPAN NELAYAN

BERBASISKAWASAN & PRODUK UNGGULAN

Ket :  20132014Tahap selanjutnya

Timika

Merauke

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Pasar Pasar Pasar PasarPasar

SENTRAPRODUKSI

SENTRA PASAR

SENTRA PASAR

operator

Nelayan/ Pembudidaya

Pengumpul Besar

Buffer stock

Distributor

Pemasar

PELAKU

Konsolidasi bahan baku + industri

antara

DEVELOPMENT OF SLIN / NATIONAL FISH LOGISTIC SYSTEM

Distributor

Distributor

OPERATOR OPERATOR

A B C

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CHALLENGES IN IMPLEMENTATION SLIN

UPSTREAM : Supply of capture fisheries with good quality and with

reasonable quantity; Continuity of supply on capture fisheries.

DOWNSTREAM : Storage of product for good quality product and for food

safety; Good Distributions Practices with the implementation of

Good cold chain system; Support of logistic services (transportation / distribution

with reasonable cost (low cost), eficient & on time; Stability of prices; Transparant criteria for the seafood processing unit/UPI.

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11/7/2014 GAPMMI presentation 29

BUILDING THE “FUTURE“ FOR TRACEABILITY

Key International Standards:Codex Standards (CAC)ISO Standards (9000, 9001,14000, 22000, 26000), SNIHACCP, GMP, GAP, GRASS, etc.

Key Legal Requirements:EU Food LawFDA Regulations

JAPAN FOOD SANITATION LAWAUSTRALIA BIOSECURITY ACT

Key Commercial Standards:Global Food Safety Initiative (GFSI), BAP

EUREPGAP, BRC, IFSSQF (FMI)

NGO (MSC, ASC, Dolphin free)

Capture Primary Handling/

ProcessingManufacturing Wholesale RetailAquaculture

• GhdP• GAP,• GlobalGAP• Organic• Product Cert.

• GMP• Organic• BRC• Product Cert.

• GMP• BRC• SQF 2000• Product Cert.

• Non Spec • Supply Chain Inspection

HACCP / ISO 9001 / ISO 14001 , Monitoring residue/contaminants, Ecolabel (MSC)

ISO 22000 (FSMS), Traceability (a buyers’ requirement) •Tab

le /

Fork

EU Catch Certification Interrelated support Traceability data

Requirement Traceability From Farm / Sea to Retail

FUTURE PRODUCTS• New innovation: design & products• Ready to cook/to eat & “convenience” (cooked

shrimps, value added seafood, frozen meals, pizza)• Value added product & packaging -> standarditation• Trained people/HRD & Competency based certified• Sushi, tempura, breaded, surimi Future product• Cold chain & fresh / frozen food become popular

VALUE ADDED PRODUCT

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Awards yang diterima oleh Eksportir Udang

PRIMANIYARTA AWARD :Kementerian Perdagangan Repuplik IndonesiaSebagai eksportir global/ berkinerja :

2012 – PT. INDOKOM SAMUDRA PERKASA

2013 – PT. SEKAR BUMI Tbk.

2014 – PT. SEKAR BUMI Tbk.

Frozen Value-Added Seafood Products:Frozen ShrimpFrozen FishOther Frozen Seafood

Frozen Processed Food Products:Dim Sum Fish Ball & Other Seafood BallsMini Wonton, Spring Roll, Crispy SeafoodMartabak, Samosa, PuffSausagesNuggetsCashew Nuts

• Retail Packaged Products

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Aktivitas AP5I Shrimp Forum Zhanjiang & MUO di Shanghai AP5I

dng CAPPMA sign MOU kerjasama u informasi, investasi, trade. Pengusaha2 Perikanan China ingin beli 1 juta ton udang & ikan dari Indonesia krn naiknya konsumsi D.N & export produk value added

ESE/BRUSSEL, THAIFEX, VIETFISH. Ikut aktif dlm pameran di Brussels Belgia, Boston USA, Bangkok, Vietnam & China.

Aktif di ASEAN SEAFOOD FEDERATION, Kerjasamaantar Asosiasi Processor Ikan & Udang di ASEAN, menjelang AEC 2015& krn ASEAN produsen terbesar Udang dunia (60%) & Pangasius (96%).Persyaratan ditentukan pembeli Barat. Ada pembagian tugas : Produksi&Teknologi, Food safety & quality standar, marketing, logistik, investasi& supply bahan baku. Sd disiap kan ASEAN GAP. Pameran bersama diLN & ASEAN. AP5I sbg ketua ASF (2013-2014)

Pameran FIS Expo & FHI ; Jakarta & SurabayaSarana promosi produk2 perikanan pd konsumen Indonesia. Demomasak seafood bagi institusi horeka. Kampanye Gemar Makan Ikan ukonsumen & prod. pangan. Menarik minat investasi di perikanan

TEMU BISNIS ANGGOTA & MOU dg KADIN,Bahas produk:Fish&Co dg petani patin, Training dng CBI/KKP di SSC.MOU dg ASPURA & Surindo/Nobel (chitosan,chitin). MOU dg KADIN untACTIVE & EIBD (EU-Indonesia Bussines Dialogue), PINSAR udang /ikan

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Kita Bisa &Harus Cerdas

Untuk JadiProdusen &

EksportirHandal dan

Feed The World & Feed

Indonesia