The Caribbean has a rich resource – its marine and coastal environment. From fish to seaweed, there’s plenty to trade beneath the waters but it’s vital that these type of exports are done sustainably, especially as the demand rises for applications in food, pharmaceuticals and personal care products. As blue bio-exports increase across the Eastern Caribbean, responsibly harnessing the power of the blue economy is helping governments diversify their economies and grow their domestic aquaculture.
Trading potential
By 2030 the global ocean will be worth US$4.5 trillion and employ over 40 million people, according to the Caribbean Development Bank and the UN Development Programme. In the Caribbean, the blue economy (which covers all economic activity either directly or indirectly associated with the marine environment) is worth US$407 billion, according to the OECS, and, in some Caribbean countries, employs up to 30 per cent of the work force.
Addressing a recent UN Trade Forum, OECS Director General Dr Didacus Jules stressed the importance of marine resources as part of a wider strategy of economic diversification throughout the region, saying: “Notwithstanding the vast potential of the ocean’s economy, the sustainable use and trade of coastal and marine based biodiversity products and services remain largely untapped, partly due to limited awareness among policy makers and businesses on their opportunities and value.
“Essentially, seizing blue trade opportunities has the potential to accelerate sustainable economic growth, export diversification, and create new avenues for both domestic and foreign direct investment.”
Some countries have been better than others at exploiting their blue potential. Most notably, St Vincent and the Grenadines boosted its fish exports from EC$1.7 million in 2016 to EC$10.3 million in 2018. And the Eastern Caribbean has more to offer than fish – mollusks (such as conch), sea moss, and crustaceans are all in high demand also.
According to the OECS, the global algae products market was worth US$3.4 billion in 2017 and is expected to total US$6 billion by 2026. The OECS is developing a project with the United Nations Conference on Trade and Development (UNCTAD) to help member states exploit the trade potential of its ocean economy. “The partnership between UNCTAD and the OECS is a symbiotic one,” explains Stephen Fevrier, Head of the OECS Permanent Delegation to the United Nations. “On the one hand, the OECS countries possess all the necessary natural resources to benefit more fully from the blue economy, and on the other hand, UNCTAD has the required track record and technical expertise to help the OECS to realise the benefits.”
Fevrier says the strategy will encompass “priority products”, including queen conch and algae-based exports, and adds: “Algae-based products have less value per weight but have a much higher potential for growth, R&D and product development. For example, sea moss drinks, fertilizers and personal care products can be derived from sargassum. Sargassum is an invasive species so the idea is to use as much volume as possible and transform it into value added products.
“OECS countries have been trading small volumes of these marine products with low levels of value addition. The idea is to ensure that there is sustainable harvesting, increase value addition by local communities, enhance product diversification and find markets for these products. However, the potential is largely untapped due to limited awareness among policy makers and businesses on its opportunities and value.”
Hoping to tap into this value, the OECS project will be undertaken in two phases, the first focusing on algae-based products and the second on queen conch. Both will take two years and run consecutively, ending in 2024. “It is expected that at the end of the project, OECS Member States will be in a better position to produce and export high-quality, niche and sustainably harvested coastal and marine products to world markets,” says Fevrier who stresses that the benefits will be felt at every level of coastal communities.
“The idea is that small producers at the lower end of the value chain are trained and supported by higher levels of the value chain. The higher level of the value chain in this case is willing to share benefits and train providers so that they can comply with the requirements in terms of quality and volumes. There is a mutual interest that the value chain is sustainable as a whole and that all actions benefit the relevant stakeholders, leaving no one behind.”
Community benefit
The OECS is also collaborating with the Caribbean Natural Resources Institute (CANARI) to draw up an OECS Regional Green-Blue Economy Strategy and Action Plan. Both this initiative and the UNCTAD project have sustainability at their core.
CANARI Senior Technical Officer Alexander Girvan explains: “Native blue biodiversity provides significant value to the region in the trade of sea moss, lobster, conch, food products, as well as numerous shells and other materials for artisanal and craft products. In many cases, rural communities have managed these ‘blue industries’ in a sustainable way with positive, social environmental outcomes, and generating significant value. Unfortunately, over time, many other cases have emerged where outside pressures and demands for these products have made their production methods or associated practices unsustainable.”
Another vital principle for CANARI is economic equity. Aquaculture in the islands is dominated by small operations which face greater challenges than large-scale processors. As the industry grows, it’s important to ensure it is not exploited and that the benefits are felt at the grassroots level. “If the economic benefit of the trade goes mainly to external actors, this becomes unfair to Caribbean people and, in particular, local communities and resource users. By definition, blue bio-trade should operate under criteria of environmental, social and economic sustainability,” says Girvan.
The OECS strategy, supported by CANARI, will look at regulation, financing and other programmes to specifically support micro, small and medium enterprises, with the ultimate aim of empowering island communities.
Girvan says: “Wealth creation is most valuable where it improves the lives of those most vulnerable to environmental change and those most in need of economic support. The OECS Regional Green-Blue Economy Strategy and Action Plan should have components focused on supporting MSMEs, growing rural economies and livelihood development for improving people’s well-being. By focusing efforts on helping these most vulnerable, we make positive outcomes for those in most need, more likely.”
