SEAFOOD TRADE ADVISORY GROUP

BULLETIN

10th February 2020

China Market Update 

This Bulletin is provided by STAG to its subscribers as an industry market intelligence service.  Every effort is being taken to ensure that the information is verified, however this is difficult given the current market situation, particularly in China.  Please make your own enquiries before taking any action based on the information provided here.

Summary of the current market situation

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

• There is widespread dysfunction within China at the moment, with road closures and inability to process paperwork / export documentation etc. due to an increasing number of workers staying home.  Freight in and out of ports and road transport are heavily affected, with ongoing delays expected.  A high level of administrative dysfunction will have significant affects on all trade partners.
• Alternate markets across Asia are also affected by weaker than expected CNY and no Chinese tourism numbers.
• Australian and New Zealand exporters have shipped limited quantities into the market from 6th to 8th eta.
• Chinese importers have taken product to Shanghai and Xiamen in preparation for the end of the extended holiday period.
• Sales are reported to be slow even at heavily reduced prices.
• No signs of repeat orders at this stage.
• Competing species such as Mexico have also started supplying also in limited numbers
• Our major wet markets are still open and functioning with limited logistics suppressing consumption outside of importing city. Exception is Beijing which was closed on the 7th.
• Some payments are being received from Beijing and Guangzhou importers however there is still significant money owed for product sent prior to CNY from Shanghai importers
• All banks in China opened from 10th February.

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  Details will not be published without permission.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

Quantifying and documenting Australian seafood business impacts

Fisheries management agencies in all jurisdictions are working with industry sectors to minimise impacts. However, it is important to document and communicate 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. 

Action: Complete the form in the first instance by clicking here and then emailing your completed form to Jane Lovell, CEO Seafood Industry Australia at jane@seafoodindustryaustralia.com.au

Austrade support

The Chair of the STAG met with Austrade last week.  Here is a summary of the key points discussed:

• Austrade has advised that they are still functioning in China and able to help.
• All Australian Austrade staff are being repatriated home (under advice from DFAT). All Chinese nationals who are Austrade staff remain in China to work from home.
• Australian seafood can use Austrade’s communication network in China which extends to trade/retail/F+B to send key messages out that we are ready to support them with quality product when the situation improves.
• There are a range of Austrade programs planned for China during 2020 that may be useful as the industry recovers from this market disruption.  In particular a Festival of Australia event is currently scheduled for August is still booked to go ahead. Key industries involved are Health/Education and Agriculture (Diary/Wine/Beef). Tourism Australian will also run campaigns around this event.  Seafood participation and representation would be welcomed.
• There are also continued efforts to establish a national Australian Brand.  Consultation sessions are being planned for SA and WA.  This initiative was initiated in about 2017 as a result of a recommendation in a Foreign Trade White Paper recommending a national program of developing a core Australian brand to use in trade and marketing.

If you wish to contact Austrade directly please contact Ms Amanda Hodges  ph +61 7 3364 7706  Email: Amanda.Hodges@austrade.gov.au.  She will be able to provide exporting businesses or industry affected by Coronavirus with assistance in accessing alternative markets – both to overcome hurdles in the immediate future and to diversify into the longer term. 

Action: If anyone has stories/material or videos to underpin these message please forward it to the STAG at admin@seafoodtradeadvisory.com.  The material should be human focused and have Chinese translation (subtitles are acceptable).  The STAG  will coordinate and make sure that the material gets to the right people in Austrade. 

Action: If there is a desire to look at a collaborative Australian seafood presence at Austrade events please register your interest with the STAG at admin@seafoodtradeadvisory.com or with SIA at jane@seafoodindustryaustralia.com

STAG Bulletins are available at http://www.seafoodtradeadvisory.com

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.