1. Presented by Fatima Ferdouse & Sudari Pawiro INFOFISH Live Fish Markets in China, Hong Kong & ASEAN

2. 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.

3. FAO Fish price Index: (2002-2004=100 ) 2012 The overall narrowing in the global economy is having negative impact on foreign fishery trade. Demand has been weak in most of the customary western markets. 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. PRICE TREND FOR FISH PRICES

4. However, in Malaysia seafood prices remain high Farmed vannamei shrimp 60-70pc ; RM 25/kg Salmon steaks : RM 99/kg

5. The high side seafood market : Imported Organic Seafood in Malaysia, Singapore, Thailand Organic smoked salmon: US$ 100/kg Organic salmon, US$ 150/kg Frozen Cod: US$70 Breaded Organic Cod: US$200/kg

6. World’s Top Ten Fishery Exporters (in billion US$) China Thailand Country 2008200920102011 China 10.1010.2413.3616.97 Norway 6.637.088.719.23 Thailand 6.506.176.988.42 Vietnam 4.514.205.036.11 USA 4.534.004.135.12 Chile 3.643.583.344.41 Spain 3.503.183.254.23 Canada 3.683.183.784.14 Denmark 4.613.543.643.87 Netherlands 3.413.42 3.84

7. 2011 EXPORTS GLOBAL FISHERY IMPORTS, BY CONTINENT bill. US$ IMPORTS : Europe is the largest market area, followed by Asia and North America. This year, import growth slowed down in the developed countries but remained stable in the developing regions. EXPORTS: With higher value fishery exports included live food fish, Asian producers dominated supplies in the international trade.

8. Import demand has been higher in developing markets

9. This year, the global financial crisis has had its impacts on the emerging markets but imports into Malaysia increased, indicating strong domestic demand January -September January - August ---and there are better opportunities in Asian Markets

10. HS codes January-July 201020112012 US$tonUS$tonUSUS$ton 0301 Live Food Fish46,427,0147,90043,411,4379,09640,106,2077,559 Total Fishery Exports429,788,895145,070467,473,109151,137452,022,463134,552 HS codes January –June 201020112012 USUS$tonUSUS$tonUSUS$ton 0301 Live Food Fish34,333,5775,46324,548,8143,92430,988,2805,776 Total Fishery Exports1,227,716,164488,3951,446,355,580419,8751,766,667,467495,025 INDONESIA MALAYSIA 2012 Fishery Export Trend

11. 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. High Value Aquaculture and Seafood Trade

12. 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

13. 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.

14. 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!

15. GLOBAL FISHERY SUPPLY

16. 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.

17. 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 In the long run ------

18. What the world financial watchdogs say about Asia’s economies 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”. Royal Bank of Canada: “ The number of wealthy Asian surpasses that of North Americans” 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.

19. 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.

20. LIVE MARINE FOOD FISH MARKET

21. 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

22. Live fish imports into HK in 2011 (36676 tons)

23. Live marine fish traded in HK Over 60 species of marine finfish are traded in the market, SpeciesEnglish/Common Name -Epinephelus coioidesGreen grouper/orange-spotted grouper -E. bleekeriSpotted grouper/duskytail grouper -Lutjanus argentimaculatusMangrove/red snapper -E. polyphekadionFlower/cod grouper -E. fuscoguttatusTiger grouper -Plectropomus areolatusSpotted coral grouper/trout grouper -P. leopardusLeopard grouper -E. malaboricusMalabar grouper -P. maculatusSpotted coral/trout grouper -Cheilinus undulatusHumphead/Napolean wrasse -Trachinotus blochiiPompano -E. lauceolatusGiant grouper

24. Three Main Market Segments for Live Seafood SegmentPurposesPreferrable Size range (kg) Common species 1. Domestic  Household consumption 0.4-0.8 kg  Gold-lined seabream  Yellow-finned seabream  Red pargo  Brown-spotted grouper  Yellow grouper  Mangrove snapper  Russell’s snapper  Pompano  Rabbitfish  Rockfish  Tigerfish 2. Medium- priced restaurants  Wedding banquets  Business entertainment  Thanksgivings, etc. 0.8-1.5 kg <2 kg  Brown-spotted grouper  Green grouper (E. coioides)  Malabar grouper)  Tiger grouper  Flower grouper  Parrotfish  Wrasses  Coral trouts 3. Premium- priced restaurants  Tourist attractions  Wedding banquets  Business entertainment, etc. 1-2 kg, or bigger  Humphead wrasse  Highfinned grouper  Giant grouper)  Leopard grouper (Plectropomus leopardus)  Red grouper  Stonefish ( Source: WWF, Hong Kong)

25. Importers: Capture or culture species Fish Traders Primary Distributor s Re- export to China Premium- priced Restaurants Medium- priced Restaurants Retailers/ Domestic Consumption Distribution Channels for Live Marine Fish in Hong Kong

26. Hong Kong: Live seafood distribution

27. Import trends of live grouper into HK

28. Imports of live grouper in 2011

29. HK: Imports of Live Marine Food-fish, January – September Change% (MT) 20122011 MTUS$1000MTUS$1000 High-finned grouper-100.413 Leopard coral trout grouper2 23946 4122 172.341 582 +3 Spotted coral trout grouper2547610.4131 Green grouper2 49017 5751 629.210 365 +52.8 Tiger grouper4834 351679.14 760 Flower grouper2756133.6625 Other groupers88912 645860.112 112 Sub-total groupers6 15382 0305 351.469 588 +15% Sub-total high value marine fish (coral reef fish) 5 351.469 588 Mangrove snapper8246.018 Other marine finfish1 51313 2621 637.910 849 Total Marine finfish7 67495 3166 995.380 455 +9.7%

30. CHINA-Imports of live food fish (in tons) Huge market- but mainly supplied from domestic production Imports of live food fish is still small (6516 tons in 2011) Demand is growing for live grouper Supplies are mainly from HK (re-export) and Taiwan Imports dropped in 2011 but recover in 2012

31. 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)

32. 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

33. Singapore Live finfish market

34. Malaysia

35. 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)

36. Thank you