Coronavirus and China Market Update

The following information is provided by the Seafood Trade Advisory Group (STAG) as an industry market intelligence service to its subscribers. Efforts are made to verify the information however this is difficult given the current market situation. Readers should verify the information independently before taking any action based on the information provided.

STAG exporters update

Here is a summary of the current market situation as we understand it:

China consumption remains very slow with sales to restaurants still largely not open
Beijing Wet Market remains closed on order of Government
Other markets functioning but low sales
Product sold from Australia/NZ at heavily reduced levels fail to stimulate any demand
Funds from China coming in but slow as importers reporting no payments received from restaurants who are still closed.
Remains a concern for exporters
Lower priced species Lobster are slowly re-entering market
No orders of Wild Abalone reported this week to China
Alternate markets remain sluggish
Australian local market sales showing stable demand

STAG welcomes market updates from members. Details will not be published without permission. Please email your updates to admin@seafoodtradeadvisory.com

Advice on access to alternative markets

The Department of Agriculture is now known as the Department of Agriculture, Water and the Environment. There is a new address for Australian companies to contact regarding business assistance and queries about (alternate) market access.
The email is: dairyeggsfish@awe.gov.au

Impact on Australian seafood businesses

It is important to document and communicate business impacts so that appropriate assistance can be sought and where possible provided. Seafood Industry Australia is collating this information to support their ongoing discussions with the Federal Government. Please complete the form by clicking here and then email it to Jane Lovell, CEO Seafood Industry Australia at jane@seafoodindustryaustralia.com.au

Managing a potential or confirmed Coronavirus infection in the workplace

The current national health advice is that the risk of Coronavirus infection in Australia is low. However employers and employees need to consider that risk from their own business perspective and understand what their responsibilities are if there is a suspected or confirmed case. Click here for a great summary of what to consider legally.

China market news

The following information is based on informal translations from original Chinese language sources (Government and media). Readers should verify the information independently before taking any action based on the information provided.

Wild caught aquatic products (including Rock Lobster and Abalone) exempt from the ban on wildlife trade in China

From Various Sources: Ministry of Agriculture and Rural Affairs

On 6 February 2020, five Chinese central government departments made a joint Announcement No. 4 (2020) about the ban of trade for wild animals. According to the Announcement, the trade of wild animals except caught aquatic products is banned in wet markets, supermarkets, restaurants, and e-commerce platforms.

In other words, the trade of wild caught aquatic products is NOT included in the ban (ie they can be imported to China).

In China, the laws at national level prevail over all those at the provincial level/local level. Any local laws in conflict with this Announcement (published on 10 February) will cease to be effective.

Food business shifting to takeaways and new retail

Due to the ban on public gatherings, takeaway food and e-commerce transactions have grown rapidly. Laid-off workers from more than 30 catering companies in China have been hired by Hema Live and Fresh Food Supermarkets (owned by Alibaba) because of this shift to new retail.

Impact on seafood wet markets in China

The following is a summary of Chinese language media reports detailing the impact of the Coronavirus on various seafood markets in China. These reports have come from various sources.

Beijing

At Jingshen Seafood Market in Beijing, almost no customers could be seen during CNY and not a single fish could be sold in the market. The situation was almost the same throughout China. It was most difficult in all wet markets. The situation was slightly better in supermarkets.

Shanghai

In Shanghai Yangyang Seafood Market, rock lobsters at the original import price of more than 300 RMB/kg, could not be sold even when reduced by half a price. It is a similar story for imported King Crabs, Dungeness Crabs, and other live seafood. They were either dying in aquariums or frozen in cold stores. One business owner was reported to have had to put more than ten thousand cartons of swimmer crabs in cold stores. Another business owner, involved in rock lobster importing, said that the implementation of uniform measures to ban wet markets had caused heavy losses for people in the live seafood business. The minimum economic losses made by each of seafood business in Shanghai exceeded half a million RMB.

Guangzhou

In Guangzhou City Guangdong Province, all chilled salmon in the Huangsha Seafood Market have now been frozen. The holding tanks for live seafood have been shut. It was estimated that numerous seafood businesses, particularly those owing loans, would go bankrupt. One business in the market reported a loss of 600 thousand RMB from 5-tonne grouper and 800 kg abalone.

Shenzhen

In Shenzhen, all the wet markets have closed. Due to the cancellation of many bookings for banquets, there have been few orders from restaurants for seafood. Yet, there were still some orders for seafood through the “new retail channel”. Some seafood businesses in Shenzhen Luofang Market, decreased their price of imported UK razor clams to 78 RMB/500 g on 29 Jan, and then to 58 RMB on 30 Jan. The geoduck price special price was 100 RMB on 30 Jan, a drop by 50%.

A total of 90% of shops in the Shenzhen Luohu Seafood Market have closed their doors. The losses made by small-size companies reached nearly a million RMB, and several million RMB by large-size ones.

Shaoxing City

Fresh-water aquatic products made less of a loss, by only 5000 to 6000 RMB daily on average. Seafood had made more losses, by a million RMB on average. Taking Dungeness Crabs as an example, the wholesale price was 138 RMB on the first day of CNY, but plummeted to 103 on the second day, 50 RMB on the third day, and 40~45 RMB on the fourth day.

Huaxi Seafood Market

It was reported on 9 Feb 2020 that many shops were closed at the Haixi Seafood Wholesale Market in Xiamen City due to the Coronavirus situation.

One business had imported about 3000 kg of Australian Rock Lobsters. It was reported that they were only able to sell less than 50 kg each day, mostly by reducing prices. The product was supplied to the shop at 560 RMB/kg, but could only be sold at about 400 RMB/kg. More losses were made as the product continued to stay in the holding tanks. If live rock lobsters became chilled ones, their prices were further reduced 260 RMB/kg.

References:

Almost no customers to be seen in Haixi Seafood Market

Many shops at the market were closed

Australian Rock Lobsters in Xiamen

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STAG Bulletins are a resource for Australian seafood exporters.The Seafood Trade Advisory Group receives funds from the Fisheries Research and Development Corporation. The Fisheries Research and Development Corporation plans, invests in and manages fisheries research and development throughout Australia. It is a statutory authority within the portfolio of the federal Minister for Agriculture, Fisheries and Forestry, jointly funded by the Australian Government and the fishing industry.