Live Fish Markets in China, Hong Kong & ASEAN Presented by Fatima Ferdouse & Sudari Pawiro INFOFISH The importance of fishery trade in developing countries “The net export revenues earned by developing countries from their fish and fishery products is higher than the entire sum of all other food commodities combined”,--reported FAO. PRICE TREND FOR FISH PRICES The overall narrowing in the global economy is having negative impact on foreign fishery trade. FAO Fish price Index: (2002-2004=100) Demand has been weak in most of the customary western markets. 2012 Export prices and profit margins are under pressure, particularly for aquaculture products. FAO Fish Price Index indicated that farmed species reached record high levels in April 2011 at 161 but dropped to 119 in October 2012. International prices of high value shrimp, salmon have stayed low throughout 2012. In comparison , prices of varieties from capture fisheries have fared better, dropping from 167 in August 2011 to 150 in October 2012. However, in Malaysia seafood prices remain high Farmed vannamei shrimp 60-70pc ; RM 25/kg Salmon steaks : RM 99/kg The high side seafood market : Imported Organic Seafood in Malaysia, Singapore, Thailand Frozen Cod: US$70 Organic smoked salmon: US$ 100/kg Organic salmon, US$ 150/kg Breaded Organic Cod: US$200/kg World’s Top Ten Fishery Exporters (in billion US$) Country 2008 2009 2010 2011 China 10.10 10.24 13.36 16.97 Norway 6.63 7.08 8.71 9.23 Thailand 6.50 6.17 6.98 8.42 Vietnam 4.51 4.20 5.03 6.11 USA 4.53 4.00 4.13 5.12 Chile 3.64 3.58 3.34 Thailand 4.41 Spain 3.50 3.18 3.25 4.23 Canada 3.68 3.18 3.78 4.14 Denmark 4.61 3.54 3.64 3.87 Netherlands 3.41 3.42 3.42 3.84 China GLOBAL FISHERY IMPORTS, BY CONTINENT 140.0 bill. US$ IMPORTS : 120.0 Europe is the largest market area , followed by Asia and North America. 100.0 This year , import growth slowed down in the developed countries but remained stable in the developing regions. 80.0 60.0 EXPORTS: With higher value fishery exports included live food fish, Asian producers dominated supplies in the international trade. 40.0 20.0 0.0 2010 2011 2012 OCEANIA AFRICA LATIN AMERICA NORTH AMERICA EUROPE ASIA LATIN AMERICA NORTH 12% AMERICA 8% AFRICA 4% OCEANIA 2% ASIA 41% EUROPE 33% 2011 EXPORTS Import demand has been higher in developing markets 8 7 China (in billion US$) RP Korea Hong Kong 6 Thailand Canada 5 Russia Australia 4 Brazil Singapore 3 Malaysia Taiwan 2 Indonesia Mexico 1 India 0 2008 2009 2010 2011 ---and there are better opportunities in Asian Markets January -September 14000000 2010 12000000 2011 10000000 2012 8000000 January - August 18000000 6000000 16000000 4000000 2010 14000000 2000000 2011 12000000 0 2012 10000000 8000000 6000000 Jan-July 4500000 4000000 2010 2011 2012 4000000 3500000 3000000 2000000 0 EU (Extra Trade) USA Australia Taiwan Canada Singapore France 2500000 2000000 This year, the global financial crisis has had its impacts on the emerging markets but imports into Malaysia increased , indicating strong domestic demand 1500000 1000000 500000 0 Spain Italy UK Malaysia India 2012 Fishery Export Trend January-July MALAYSIA 2010 US$ HS codes 0301 Live Food Fish Total Fishery Exports 0301 ton 46,427,014 429,788,895 Total Fishery Exports ton 7,900 43,411,437 145,070 467,473,109 2010 US$ Live Food Fish US$ 2012 US$ ton 9,096 40,106,207 7,559 151,137 452,022,463 134,552 January –June INDONESIA HS codes 2011 2011 ton US$ 34,333,577 5,463 24,548,814 1,227,716,164 488,395 1,446,355,580 2012 ton 3,924 US$ ton 30,988,280 5,776 419,875 1,766,667,467 495,025 High Value Aquaculture and Seafood Trade Now a days , it is rather difficult to draw a clear line between low , medium and high value species . Marine fin fish such as groupers, sea bass , snappers , abalone , sea cucumber are the higher value aquaculture products with growing demand With a different name ‘Siakap’ (Asian seabass) has a better image . When marketed as “barramundi” , it sells well at a higher price in Asian and western markets . soft-shell crab farming is taking over many brackish water shrimp ponds in the region due to better market opportunities. Imports of high value seafood continues to rise in Asia . EAST ASIA IS THE LARGEST MARKET FOR LIVE FOOD FISH • Regional import and domestic markets for live food fish and crustaceans are expanding • While China is the growing outlet for live marine fishery products, freshwater species are gaining popularity in other markets. • Pink tilapia has replaced wild red snapper in many seafood restaurants since 1997 economic recession • Restaurant demand for live freshwater prawn has also increased, replacing black tiger shrimp Asian Live fish market China including Hong Kong is the largest import market …nearly 20, 000 tons were imported in 2008 . Marine fin fish and shellfish categories are the main product groups. Freshwater fish , such as Marble Goby’ also fetches high price in southern China and south east Asian markets Live fish and seafood are widely sold in China’s retail and restaurant trade. East Asia While demand for wild fisheries which are more natural - will continue …..., demand for certified farmed fish and shellfish will gains consumers acceptance in developing Asian markets “High retail prices” of healthy food is not always a factor as far as fish is concern . many Asians do not mind paying higher prices for their preferred species or products ……..Norwegian salmon and cod are the perfect examples! GLOBAL FISHERY SUPPLY 2010 90.0 Marine 30% 80.0 Fresh water 62% 70.0 60.0 OCEANIA NORTH AMERICA 50.0 Brackish water 8% AFRICA 40.0 EUROPE LATIN AMERICA 30.0 2005 ASIA 20.0 Marine 35% 10.0 0.0 2009 2010 CAPTURE 2009 2010 AQUACULTURE Brackish water 7% Freshwater 58% Short term market forecast for Developing countries------During the last quarter of this year, the World Bank has reviewed its 2012 growth forecast for developing countries in East Asia and the Pacific to 7.2% , pulled down by China’s lower economic growth forecast at 7.7% this year down from 9.3% in 2011. This is the slowest rate since 1999. The lower economic growth , coupled with reduced activity in the fish processing sector are slackening China’s demand for a number of imports, including fishery products .Export prices of some fishery products to China are already showing weakening signs . Even so , the FAO forecast for 2012 on global fish trade is still positive at +3% in value compared with 2011; volumes could show lower variation at around +0.5% from the previous year. In the long run -----Asia will increasingly dominate global fishery supply as well as demand The population in Asia is nearly 4 billion, of which 524 million are classified as middle class comprising 28% of the world’s middleclass population. They spend between US$ 10 and US$ 100 a day ,supported by the rising income . Their preference for healthy food is high including fishery products What the world financial watchdogs say about Asia’s economies Royal Bank of Canada: “ The number of wealthy Asian surpasses that of North Americans” Asian Development Bank: “Some 3 billion Asian could rise to affluent status by 2050 , if the continent sustains its present growth momentum and avoids being trapped at middle income level”. PAX Survey: Wealthy Asians would rather travel (----enjoy fine food) than invest. As the market develops, its more affluent individual have started to develop a taste of finer things in life” …including fine dinning and traveling in first class and business class. In future , sustainability will remain the key factor in global fishery supplies. For international and domestic markets, food safety and quality assurance are the important issues that need to be strengthened in the producing countries. LIVE MARINE FOOD FISH MARKET LIVE FISH MAJOR MARKETS IN ASIA • • • • China Hong Kong Taiwan South Korea • • • • • • • • Singapore Malaysia Japan Thailand, Vietnam, Indonesia • • • • Mainly local production + imports Imports Local production Local production + Imports (from China) Imports + local production Local production + imports Local Production Local production Live fish imports into HK in 2011 (36676 tons) Malaysia Thailand 2% 7% Other marine fish, 6561 Grouper, 7395 Others 4% Indonesia 6% China 74% Freshwater, 22720 Philippines 7% Live marine fish traded in HK Over 60 species of marine finfish are traded in the market, • - Species Epinephelus coioides E. bleekeri Lutjanus argentimaculatus E. polyphekadion E. fuscoguttatus Plectropomus areolatus P. leopardus E. malaboricus P. maculatus Cheilinus undulatus Trachinotus blochii E. lauceolatus English/Common Name Green grouper/orange-spotted grouper Spotted grouper/duskytail grouper Mangrove/red snapper Flower/cod grouper Tiger grouper Spotted coral grouper/trout grouper Leopard grouper Malabar grouper Spotted coral/trout grouper Humphead/Napolean wrasse Pompano Giant grouper Three Main Market Segments for Live Seafood Segment Purposes 1. Domestic 2. Medium- priced restaurants Wedding banquets Business entertainment Thanksgivings, etc. 3. Premium- priced restaurants Tourist attractions Wedding banquets Business entertainment, etc. Household consumption Preferrable Size range (kg) Common species 0.4-0.8 kg 0.8-1.5 kg <2 kg 1-2 kg, or bigger Gold-lined seabream Yellow-finned seabream Red pargo Brown-spotted grouper Yellow grouper Mangrove snapper Russell’s snapper Pompano Rabbitfish Rockfish Tigerfish Brown-spotted grouper Green grouper (E. coioides) Malabar grouper) Tiger grouper Flower grouper Parrotfish Wrasses Coral trouts Humphead wrasse Highfinned grouper Giant grouper) Leopard grouper (Plectropomus leopardus) Red grouper Stonefish (Source: WWF, Hong Kong) Importers: Capture or culture species Fish Traders Reexport to China Premiumpriced Restaurants Distribution Channels for Live Marine Fish in Hong Kong Primary Distributor s Mediumpriced Restaurants Retailers/ Domestic Consumption Hong Kong: Live seafood distribution Import trends of live grouper into HK 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 1999 2001 2004 2007 Leopard Green 2008 Total 2010 2011 Imports of live grouper in 2011 Malaysia, 782 Mt, 11% Other grp, 1255 Tiger, 877 Green, 2221 Leopard grp, 3042 Other countrie s, 6613 Mt, 89% HK: Imports of Live Marine Food-fish, January – September 2012 2011 MT US$1000 MT US$1000 High-finned grouper - 10 0.4 13 Leopard coral trout grouper 2 239 46 412 2 172.3 41 582 Spotted coral trout grouper 25 476 10.4 131 2 490 17 575 1 629.2 10 365 483 4 351 679.1 4 760 Flower grouper 27 561 33.6 625 Other groupers 889 12 645 860.1 12 112 6 153 82 030 5 351.4 69 588 5 351.4 69 588 Green grouper Tiger grouper Sub-total groupers Sub-total high value marine fish (coral reef fish) Mangrove snapper 8 24 6.0 18 Other marine finfish 1 513 13 262 1 637.9 10 849 Total Marine finfish 7 674 95 316 6 995.3 80 455 Change% (MT) +3 +52.8 +15% +9.7% CHINA-Imports of live food fish (in tons) • Huge market- but mainly supplied from domestic production 12000 10000 • Imports of live food fish is still small (6516 tons in 2011) 8000 6000 • • • Demand is growing for live grouper Supplies are mainly from HK (re-export) and Taiwan Imports dropped in 2011 but recover in 2012 4000 2000 0 2004 2005 2006 2007 Jan-Dec 2008 2009 Jan-Oct 2010 2011 2012 China-Taiwan Live Fish Trade • Economic Co-operation Framework Agreement in 2010: import tariff reduce to 5% • Direct export using live fish carrier to major cities in China • Taiwan government targets US$263 million exports by 2013 • Competition from local production (Hainan Island) China-ASEAN • China-ASEAN Free Trade Area (CAFTA) • Chinese businessmen invested in Vietnam in grouper farming • Join venture between Taiwanese company and Brunei invest in Red grouper farming (indoor) • Indonesia grouper farming centres: Bali, Situbondo and Lampung also targetting HK and China markets. • Borneo Aqua Harvest from Sabah sales directly to Xiamen Singapore Live finfish market 2000 Imports in 2011 (1871 MT) 1900 Others, 162 Vietnam, 183 1800 Malaysia Vietnam 1700 Others Malaysia, 1526 1600 1500 2009 2010 2011 Malaysia Others, 3503 Indonesia , 872 Snappers, 5237 Singapore , 2930 Thailand, 1268 Sea bass 17607 Grouper, 6306 Marine farmed fish production in 2011 (32 653 tons) Hong Kong, 2584 Live fish exports in 2011 (7918 tons, US$51 million) Trends and Issues • Increasing supplies from aquaculture (Taiwan, Indonesia, Thailand, Malaysia, Phillipines, Brunei, Vietnam) • Growing demand: China and SE Asian markets • Current high dependency on live fish market • The New trend: Air-flown freshly killed grouper for banquets from Australia • Farming: costs, feed related issues (trash fish vs pellet) Thank you