Australian lobster shipments to China and latest seafood market news
STAG NEWS BITES is produced for Australian Seafood Exporters, containing important updates and informal translations of news from Asian media sources. Any information provided as part of this trade news service is general in nature. Before acting on any information provided, you should consider its appropriateness to your circumstances and business objectives.
Australian Lobster Export Update
Australia’s rock lobster fishers and exporters are working hard to restore trade with
China as soon as possible. A respectful and stable relationship is fundamental to the
interests of both Australia and China.
The industry’s sole focus is to resume normal trade. That is why as an industry we are
not making public statements but rather working behind the scenes with our
customers and the relevant authorities.
Members of the Seafood Trade Advisory Group are in regular discussions with our
Federal and State governments to ensure they understand the importance of the
strong relationship we have developed over decades with our importers. These trading
relationships are underpinned by mutual trust and respect and need to be supported
by governments.
We appreciate the right of countries to implement border inspection processes that
ensure food safety for their citizens. Australia has a world-class reputation for
premium wild-caught rock lobster that meets the highest standard of food safety and
quality of any government compliance system.
Demand for Australian wild-caught rock lobster is still evident in China and our
industry remains fully committed to supplying our Chinese customers so they can
celebrate their special occasions with our premium wild-caught rock lobster.
The risk of this trade disruption continuing is hundreds of family-owned businesses in
both countries may lose a valuable source of income and opportunity for economic
growth. We just want our family businesses to return to fishing and supporting their
coastal regional communities.
Further updates will be provided as details become known. To register for these updates
straight to your inbox please contact us admin@seafoodtradeadvisory.com
MAA China: Significant delays for consignments of rock lobster
Source: Department of Agriculture, Water and Environment
To read the official market access advice from the Department about the current situation in China with delayed rock lobster consignments please click here
Expressions of Interest in the Australia – UK FTA
Valued at US$4.4 billion, the UK is the sixth largest global importer of seafood behind the EU US$59.3 billion, USA US$22.6 billion, Japan US$15.3 billion, China US$14.5 billion and South Korea US$5.9 billion. UK seafood trade is characterised by high import tariffs typically ranging between 12 – 26% and, of the major global markets, is considered by industry as heavily regulated and an expensive market to access.
Australia and the UK launched negotiations for a FTA on 17 June 2020. The negotiation offers a - once only - opportunity to negotiate a reduction in tariff and non-tariff barriers affecting Australian seafood exports to the UK.
In preparation for the negotiations, the Australian Government has invited formal submissions from industry sectors, interested individuals and groups, regarding potential opportunities and impacts of an FTA with the UK. Individuals, organisations and groups that make formal submissions are registered as stakeholders by DFAT for further consultation and follow up, as appropriate.
The FRDC has engaged Jim Fitzgerald & Associates to consult with Australian seafood industry stakeholders and prepare a formal industry submission, by 30 November 2020. In addition, Jim Fitzgerald & Associates will provide technical assistance to the negotiations in support of the Australian seafood industry and provide regular updates to industry stakeholders. This will allow industry a formal channel to input directly into the negotiation process.
A positive outcome from the Australia – UK FTA negotiations would:
- significantly lower the cost of exporting to the UK for a majority of seafood exports
- provide a clear commercial advantage over other global competitors exporting seafood to the UK, as Australia will be one of the first countries to conclude an FTA
- diversify export market options and reduce the commercial risk caused by the dependence upon a few key Asian markets
- provide a gateway to the European Union market
- potentially put upward pressure on prices for select Australian seafood exports through increased market competition and
- provide the opportunity for regular dialogue with the UK on a range of market access and trade issues following the negotiations, including export regulations, food safety standards and environmental measures.
To register your interest:
Contact Jim.fitzgerald@frdc.com.au to register your interest in receiving regular updates on the progress of negotiations and/or to raise issues that you would like addressed in the formal industry submission to the Australian Government.
Note: Industry stakeholders previously registered to receive updates from the Australia – European Union FTA negotiations have already been included on the stakeholder distribution list.
M A R K E T N E W S
Beijing launches platform to trace imported cold-chain food
Source: News Day, 2nd November 2020
The origin and flow of all imported cold-storage meat and aquatic products available on the market in Beijing will now be traceable to put food under effective supervision for COVID-19 control and prevention.
All businesses dealing with imported cold chain food in Beijing will be required to upload data on their products, including the origin and flow, onto a new platform. Businesses that have already established their own traceability systems will need to connect those with the platform.
To read more, click here
COVID consolidating seafood distribution channels in China
Source: Seafood Source, 2nd November 2020
The current COVID-related fall in demand for seafood in China could lead to a shake-out of the Chinese seafood distribution scene in favour of large, state-owned trading firms.
To read more, click here
China will ensure food security at all costs
Source: China Daily, 2nd November 2020
Given its limited cultivable land and huge population, China has always emphasised the importance of preventing food wastage from the harvest, transportation, storage and food processing stages to the dining table.
In an official document released after the conclusion of the Fifth Plenary Session of the 19th Communist Party of China Central Committee, it was highlighted the necessity of saving food and preventing food wastage.
To read the full article, click here
Chinese seafood buying preferences - shift from food service to retail
Source: Seafood Source, 28th October 2020
Vendors must work hard to win back consumer trust with a small share of the consumer base now not eating seafood because of the reported links to COVID especially if it’s frozen product.
In response, some seafood importers have diversified away from the restaurant sector by processing some of their imported product for retail.
To read the full article, click here
Hong Kong economy -first signs of revival
Source: The Straits Times, 31st October 2020
Hong Kong's economy showed the first signs of emerging from a crippling recession sparked by political unrest and the global pandemic.
Gross domestic product (GDP) declined 3.4% in the third quarter from a year earlier, better than the median estimate of a 5.6% contraction. On a quarter-on-quarter basis, the GDP rose 3%.
Read the full article here
Fisheries and aquaculture statistics
Source: Department of Agriculture, Water and Environment, 9th October 2020 and FAO 6th October 2020
Recently a number of reports have been released to the public that provides interesting information and statistics relevant to the seafood industry. Click the below links to access.
STAG News Bites is a resource for Australian seafood exporters, currently funded by the Abalone Council Australia Ltd, Southern Rocklobster Ltd, Australian Abalone Growers Association, Western Rocklobster Council and the Fisheries Research and Development Corporation. We acknowledge past funding from the Australian Government Department of Agriculture and Water Resources, through the Package Assisting Small Exporters.
This STAG publication contains informal translation of foreign and Asian media. Any information provided as part of this trade news service is general in nature. Before acting on any information provided, you should consider its appropriateness to your circumstances and business objectives.
Copyright © 2020, Seafood Trade Advisory Group. All rights reserved.
