Delisting from EU HACCP certification: Analysis of the Philippine seafood processing industry
This paper employs firm level benefit-cost and supply chain analyses to explore the reasons why a majority of Philippine seafood processing firms discontinued EU HACCP between 2004 and 2005. Results indicate that only 38% of firms remained certified, as they gained significantly from retention of EU markets, gained access to US markets, captured new buyers, and reduced product wastage. However, 62% of the initially certified firms abandoned certification, as they did not realize most of the anticipated benefits from certification and continuing certification was not economically viable. Delisting by some processors led to profit losses among their raw fish and input suppliers amounting to $4-6 million per year, representing approximately 6-9% of the value of Philippine seafood exports to the EU and mainly affecting small aquaculture fish suppliers.
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