Alaska Seafood in China
Joe Jacobson
International Program Director
November 2, 2012
What is the Alaska Seafood
Marketing Institute?
• Partnership of public and private sectors
• Public corporation that fosters effective
alignment with industry marketing efforts
• Governor-appointed Board of Directors:
five processors, two commercial harvesters.
• Alaska’s official seafood promotion arm,
supports Alaska seafood industry through
promotion of Alaska seafood products,
education and research in the U.S. and key
overseas markets including China.
Alaska waters produce more than
50% of U.S. seafood
Total Alaska exports in 2010: $2.35
billion
The seafood industry is the State of
Alaska’s largest employer
ASMI Mission:
Increase the economic
value of the Alaska
seafood resource
China Seafood Market Overview
• China is world’s largest aquatic
product producer
• 2011 total aquatic production
forecast at 53.6 MMT
• Future growth driven by aquaculture
• Major species: carp, tilapia,
pangasius (catfish), shrimp/prawns
China Seafood Market Overview
• 2010 seawater aquatic production
(aquaculture) estimated at 14.5 MMT
• 2010 freshwater aquatic production
(aquaculture) estimated at 23.5 MMT
• Total aquaculture production=38
MMT (72% of total aquatic
production)
China Seafood Market Overview
• Wild capture fishery production
stagnant or in decline, unlikely to
increase
• Salt water catch (2010) = 12.4 MMT
• Freshwater catch (2010) = 2.1 MMT
• Total: 14.5 MMT (28% of total
production)
Major Production/Processing Regions
(2009)
•
•
•
•
•
•
•
•
Shandong—7.536 MMT
Guangdong—7.026 MMT
Fujian—5.675 MMT
Jiangsu—4.432 MMT
Zhejiang—4.403 MMT
Laioning—4.006 MMT
Hubei—3.339 MMT
Guangxi—2.623 MMT
China Seafood Market Overview
• Huge middle class with greater disposable
income
• Per-capita aquatic consumption increasing…
14.7 KG/year (2009)
• RMB’s steady appreciation against the dollar
makes AK products more competitive
• Average wholesale price for aquatic products
increased 10% YOY in 2010; salt-water
products increased 14%
Market Trends and Opportunities
 Hypermarket and Restaurant Growth
– 75% of seafood consumed at home
– As income grows, the amount of food
purchased at supermarkets (especially
processed food) increases significantly
– Young people (18-34 years) dine out much
more frequently and are more likely to
purchase fast/convenience foods
Consumer Expenditures on Food
(U.S. $Billion)
700
600
500
400
300
200
100
Source: Global Insight’s Global Consumer Markets Service
20
20
18
16
14
12
20
10
08
06
04
02
20
00
98
96
94
92
0
19
90
Real food expenditures (bil 1997 $)
Between 2003 and 2007, consumer expenditures on food
jumped to more than 36.7% of total expenditures
(Projected to double by 2020!).
Per-Capita Annual Seafood Expenditure, Urban
Residents, by Region (2009)
•
•
•
•
•
Fujian—954 RMB/year
Shanghai—728 RMB/year
Zhejiang—623 RMB/year
Hainan—619 RMB/year
Guangdong—594 RMB/year
• National Average—301 RMB/year
• (Beijing = 246 RMB/year)
Alaska Seafood Exports to China, 2001-2010, ($1,000)
$600,000
$500,000
$400,000
$300,000
243,905
205,025
$200,000
204,368
176,808
168,189
140,432
95,910
$100,000
47,296
40,578
$2001
2002
2003
2004
2005
Value (000)
2006
Volume (MT)
2007
2008
2009
2010
Alaska Seafood Exports to China, 2010
NSPF
3%
Molluscs
1%
Crab
6%
Flatfish
22%
Salmon
37%
Groundfish
28%
Herring
3%
Major Products Exported to China/H.K.
(2010)
MT
Value (000)
Snow Crab
3,401
$
28,786
Chum Fr/Fz
19,385
$
63,682
39,349
$
113,175
Sockeye Fr/Fz
5,346
$
25,002
Cod
25,373
$
68,186
Pollock Fillet
12,479
$
31,008
Pollock
13,620
$
26,562
Sole
66,041
$
81,565
Other Flatfish
22,305
$
35,673
NSPF
7,271
$
18,043
Pink Fr/Fz
Processing Sector (Export)
Aquatic export processing = 33% of total aquatic
product export market value
Processing sector grew strongly in 2010 (1015%)
However, processors challenged by:
• Rising production costs
• Labor shortages
• Raw material fluctuations
• Slow global growth
Processing Sector (Domestic)
Domestic processing sector growing quickly
As foreign market growth slows, companies
turning inward to focus on China
Even those with a background in aquaculture
interested in importing wild-caught seafood
from around the world (including Alaska)
Major Products Exported to China/H.K.
for Domestic Consumption (2010)
Species
Volume
Value
Snow Crab
3,401
$
28,786
King Crab
330
$
5,448
Black Cod
897
$
7,234
Salmon Roe
258
$
2,580
Halibut/Turbot
2,150
$
5,811
NSPF (Fishmeal)
7,271
$
18,043
Cod
25,887
$
69,777
Pollock Fillet
12,479
$
31,008
Pollock
13,620
$
26,562
Sole
66,041
$
81,565
Market Trends and Opportunities
 Food Safety
– Food safety is the primary concern among consumers,
especially regarding domestic food products sold in the
market.
– Quality natural imported products are increasingly entering
the market, which has spillover benefits for the marketability
of Alaska Seafood products.
 Health-conscious
- Organic foods are quickly rising in popularity.
* Organic food sales have increased by 50% at Carrefour
in China between 2007/08
– Following the health trend, rising popularity of organic
foods mean consumers are more receptive of healthy
products such as Alaska seafood.
Market Trends and Opportunities
 HRI Growth
– Restaurants
• Clean fast food of certified quality
• Quick service restaurants expanding rapidly;
KFC now has over 3200+ outlets in 650+
cities, 1 new outlet per day, target of 20,000
outlets
– Hotel and Catering Industry
• The hotel and catering industry recorded retail
sales of US$18.3 billion, up 26.3% from 2007
• As disposable incomes increase, Chinese
consumers spend more eating out
Market Challenges
• Entrenched live or fresh fish preference
• Distribution network outside of first-tier
cities
• Vast country with diverse tastes and
preferences
• NE a reprocessing for re-export center
• Prominence of farmed salmon/Russian
product
• Trade barriers
• IPR Infringement
ASMI China Activity
In order to further expose Alaska seafood, encourage more traders and
consumers to purchase or use the products and to increase the sales of
Alaska seafood to China, ASMI China has devoted the utmost attention for
these promotional effort in the Chinese Market.
Market Strategy
• Focus efforts in the four major cities of Shanghai, Beijing,
Guangzhou and Hong Kong. However, ASMI will selectively
expand into the most promising second and third-tier cities as
opportunities present themselves, particularly in nearby satellite
cities that have access to first tier cities’ distribution chains
• Strengthen the brand image through the promotion of the distinct
natural and pure features of Alaska Seafood and proper labeling
• Work with processors that produce for the Chinese domestic
market, including major fast-food chains and producers of frozen
convenience food sold at the retail level. With changing lifestyles,
prepared, pre-cooked or ready-to-eat fishery products are now in
high demand
Some of the ASMI materials currently
available in the Chinese language:
• Alaska Salmon Buyer’s Guide
• Alaska Whitefish Buyer’s Guide
• Alaska Seafood Fact Sheets for several
species of Alaska Seafood
• The Nutrition Story
• Roe Guide (Pollock and Salmon)
• Alaska’s Harvest – Natural, Sustainable,
Pure
• Alaska Seafood Suppliers’ Directory
• Alaska Seafood’s Sustainability Brochure
Consumer Sector
 Working with new partners like RT-Mart, City Shop and
Jenny Lou’s etc. to carry Alaska seafood through
promotional activity efforts.
 Price-point products like sole and pollock are being
featured on a more frequent basis during the consumer
promotions.
Consumer Sector
Consumer PR and Recipe Development
 Posted billboards in HK and
Guangzhou.
 Placed advertising and advertorials
in lifestyle magazines and newspapers.
 Produced 4 segments of TV shows
targeting audiences of 300 millions.
 Organized 3 consumer club activities
(Shanghai, Beijing & Guangzhou).
 Press coverage campaigns generated over
150 articles with a value of $155,000.
 2 different recipe categories have been
developed, with 24 recipes per category .
Press Coverage of Alaska Seafood
Trade Sector
Trade Shows
 HOFEX
 China Fisheries and Seafood Expo
Now the largest seafood show in Asia
Trade Sector
Trade Education
 Trade gatherings were held in Beijing, Guangzhou and
Hong Kong.
 Organized retail education seminars with retain chains
like Metro in East & North China, RT-Mart in East China
and Vanguard in South China to teach stores buyers how
to differentiate wild Alaska seafood from farmed seafood
as well as emphasize sustainability of Alaska seafood.
HRI Sector
Food Service Promotions
 Worked with high-end hotels/restaurants across China. First time
cooperation with around 70% of the promotional partners.
 Products being used were not only high-end Alaska seafood
items like sockeye salmon, king crab, snow crab, black cod and
halibut, but also pollock, cod and sole as well.
 Most of the promotional partners are still using Alaska seafood
after the promotions such as White Swan Hotel, Radisson Plaza
Hangzhou, Dong Fang Hotel Guangzhou, Greenery Café and La
Seine Restaurant Guangzhou.
HRI Sector
Chef Seminars
 Organized hands-on chef seminars (Qingdao, Beijing and
Macao) and 3 normal chef seminars (HK, Dalian &
Shenyang).
 220 local chef participated in these events, and some hotels
like Rose Hotel Shenyang, Trade Hotel Shenyang, InterContinental Hotel Beijing and Venetian Resort Macao have
started to use Alaska seafood after the seminars.
HRI Sector
Training School Program
 Conducted training programs with five culinary schools in
Shanghai, Beijing, Nanjing and Chengdu.
 Over 2,200 students attended the training programs.
HRI Sector
Chef Forum
 Organized a two part chef forum (chef competition and
nutrition seminar) in Guangzhou and a chef competition in
Shanghai
 Over 200 chefs attended both events
Upcoming Activities
Trader Focus
 Organize outbound trade mission to China focusing on new
trade partners in south China..
 If you want to do business in China, you need to invest time
and effort in developing relationships