From Ocean to Opportunity: Fair Trade USA Fishers Forge Economic Independence

By: Siti Zulaeha

MDPI continues its journey to improve financial literacy and the welfare of fishing families, though there are still areas for further development. Collaboration with stakeholders, especially synergy with fishers, fuels the ongoing pursuit of sustainable fisheries.

The southern part of Seram Island in Maluku is one of four locations in Indonesia certified by the Fair Trade USA ecolabel for yellowfin tuna exports. In this area, MDPI regularly helps the Fair Trade USA fishing community in building their organizational capacity while ensuring compliance with Fair Trade USA’s social and sustainability standards.

Under the Premium Fund scheme, hundreds of Fair Trade USA-certified fishers in Seram will receive incentives as a reward for compelling responsible, sustainable tuna fishing. For a kilogram of tuna that they sell for export, and expectedly practicing all the Fair Trade USA standards, they will be incentivized USD 0.2–which annually, the amount of incentives they receive can accumulate to thousands of dollars.

Since its inception, the Premium Fund has been directed toward programs that improve fisher safety, meet fishing needs, and promote environmental sustainability. Fishers themselves, working in groups, manage the fund, identify program needs, and oversee implementation.

In the sixth year of Fair Trade USA’s presence, in 2021, MDPI guided Fair Trade USA fisher groups on Seram Island to focus on more specific standards, particularly financial literacy. The goal was to help fishing families achieve financial stability and economic well-being.

MDPI provided continuous support, gradually encouraging fishers in Fair Trade USA groups to use their Premium Fund as capital to start businesses. This idea of using the Premium Fund to build businesses didn’t happen overnight; it emerged through a process of raising awareness about financial literacy in a contextual and practical way, addressing real challenges.

The difficult path towards economic independence

The Fair Trade USA-certified fisher associations in Seram were struggling from multiple challenges: declining numbers of catch, increasingly distant fishing grounds, and rising fuel prices for fishing trips. Moreover, in 2020, the COVID-19 pandemic slammed tuna price down in Seram, adding to the list of their challenges.

After all the hardships and the pandemic, fishers managed to slowly recover and rebuild. “Effort never betrays results” is an apt proverb to describe their journey. Today, nearly all the associations have established micro-scale businesses, with profits being collectively managed for the welfare of their members.

They chose tuna trading as a relevant business option. Currently, four Fair Trade USA-certified fisher associations in Seram—Darah Tuna Haruo, Teluk Ampera, Tuna Yapana, and Tunas Beringin—run micro-scale businesses in tuna commodity sales.

Collaboration and business diversification are key!

The Fair Trade USA fisher associations in Seram began to allocate some of the Premium Fund for business capital to reach for economic independence. In 2023, they started the business with capital worth of USD 350-900—their business have now grown to be worth USD 7,500.

Remaining committed to their identity as Fair Trade USA-certified fishers dedicated to sustainable fishing, they allocate a portion of their profits as incentives for members who submit fisheries data through daily logs. Though typically only USD 0.2 per kilogram of fish sold, these incentives make a significant positive impact on the fishers’ family incomes when accumulated.

These fishers believe that transparency and mutual commitment are key to the success of their collective business. Despite facing challenges such as declining fish quality, transport disruptions due to natural disasters, limited capital, and internal conflicts, the word “surrender” isn’t in their vocabulary. Through collaboration, they see these obstacles as challenges to be tackled together.

MDPI, through its Livelihood Diversification program, supports the fishers in building successful businesses. The program emphasizes partnerships with external companies, financial transparency, product quality, and managerial responsibility. Monthly group meetings also ensure accountability in business operations.

This new source of income from tuna trading has strengthened their path towards economic independence. Yuman Sangadji, a member of Darah Tuna Haruo Fisher Association, noted, “When we were just fishers, we felt powerless when fish prices dropped. But now we have the privilege of businesspeople too. With the courage to run a tuna trading business, we can manage our own resources.”