GLOBEFISH - Chinese Fish Price Report - 01/2021

GLOBEFISH

Chinese Fish Price Report Issue 1/2021

Issue 1/2021

Chinese Fish Price Report

The Chinese Fish Price Report Editorial Board Audun Lem John Ryder Marcio Castro de Souza

Editor in Chief Marcio Castro de Souza

Contributing Editors Maria Catalano Helga Josupeit William Griffin

Coordinator Weiwei Wang

Contributing Partner China Aquatic Products Processing and Marketing Alliance (CAPPMA)

Graphic Designer Alessia Capasso

EDITORIAL OFFICE GLOBEFISH Trade and Markets Team Fisheries Division (NFI) – Natural Resources and Sustainable Products Food and Agriculture Organization of the United Nations Viale delle Terme di Caracalla 00153 Rome - Italy Tel. +39 06 5705 57227 E-mail: fao-globefish@fao.org www.globefish.org

REGIONAL OFFICES Latin America, Caribbean

Africa

Arab Countries

Europe

Asia

China

INFOPESCA, Casilla de Correo 7086, Julio Herrea y Obes 1296, 11200 Montevideo, Uruguay Tel: (598) 2 9028701/29028702 Fax: (598) 2 9030501 E-mail: infopesca@infopesca.org Website: www.infopesca.org Eurofish, H.C. Andersens Boulevard 44-46, 1553 Copenhagen V, Denmark Tel: (+45) 333777dd E-mail: info@eurofish.dk Website: www.eurofish.dk

INFOPÊCHE, BP 1747 Abidjan 01, Côte d’Ivoire Tel: (225) 20 21 31 98/20 21 57 75 E-mail: infopeche@aviso.ci infopech@gmail.com Website: www.infopeche.ci

INFOFISH 1st Floor, Wisma LKIM Jalan Desaria Pulau Meranti, 47120 Puchong, Selangor DE Malaysia, Tel: (603) 80668112/80603734/ 80603738, E-mail: info@infofish.org Website: www.infofish.org

Cover photo: ©unsplash/yuesu

2

INFOSAMAK, 71, Boulevard Rahal, El Meskini Casablanda 20 000, Morocco Tel: (212) 522540856 Fax: (212) 522540855 E-mail: info@infosamak.org infosamak@infosamak.org Website: www.infosamak.org INFOYU, Room 901, No 18, Maizidian street, Chaoyang District, Beijing 100125, China Tel: (86) 01059195186 E-mail: infoyu@agri.gov.cn Website: www.infoyu.net

Issue 1/2021

Chinese Fish Price Report

Contents Policy updates -

Yangtze River Protection Law to be enforced “Preventive and Thorough Disinfection Programme for Imported Cold-Chain Foods” launched Notice on the Tariff Adjustment Plan for 2021 Guidance on Promoting Loss Reduction and Efficiency in Agricultural Products Processing Five Actions on Green and Healthy Aquaculture Measures to boost green development of E-commerce Technical Guide for Pandemic Prevention and Control in Wet Markets

04 04 04 04 04 05 05

Industry news -

Cold-chain food traceability programme launched by the State Council China to build the largest fish farming vessel Gansu Province exports its rainbow trout eggs for the first time 2020 China Tilapia Industry Development Conference China’s first high sea moratorium ends 2020 China Seafood Summit successfully held in Xiamen, Fujian province

06 06 06 06 06 07

Latest trends - Tilapia - Grass carp - Largemouth bass - Chinese snakehead - Abalone

08 - Hybrid grouper - Whiteleg shrimp - Prussian carp - Turbot - Mandarin fish

08 09 10 11 12

13 14 15 16 17

Prices - Largehead hairtail - Japanese seabass - Largemouth bass - Squid - Common carp - Silver carp - Grass carp - Bighead carp - Prussian carp - Swimming crab - Pacific oyster - Scallop - Chinese razor clams - Nori

18 - Large yellow croaker - Turbot - Mandarin fish - Snakehead - Asians swamp eel - Abalone - Redclaw crayfish - Chinese mitten crab - Chinese softshell turtle - Channel catfish - Tilapia - White leg shrimp

18 18 18 18 18 19 19 19 20 20 20 21 21 21

21 21 22 22 22 22 23 23 23 23 23 23

All reports are based upon news occuring until January 2021.

GLOBEFISH Market Reports are available from the GLOBEFISH website: www.globefish.org. All rights reserved. No part of FAO/GLOBEFISH Chinese Fish Price Report may be reproduced, stored in a retrieval system, or transmitted in any form or by means (electronic, mechanical, photocopying or otherwise), without prior permission. Requests for use for this material (including purpose and extent) should be addressed to: GLOBEFISH-Fisheries and Aquaculture Department - Food and Agriculture Organization of the United Nations, Viale delle Terme di Caracalla, 00153 Rome, Italy.

The Chinese Fish Price report is in collaboration with CAPPMA. CAPPMA is an independent association. registered by law, consisting of seafood producers, processors, distributors, suppliers, and institutions for fisheries research and education. It was founded in 1994 and it is a national non-profit organization directed under the supervision of the Ministry of Agriculture and Rural Affairs of the People’s Republic of China.

3

Issue 1/2021

Chinese Fish Price Report

Policy updates Yangtze River Protection Law to be enforced The Yangtze River Protection Law of the People’s Republic of China was approved at the 24th session of the Standing Committee of the 13th National People’s Congress and was enacted on 1 March 2021.

The law contains nine chapters, including General Provisions, Plans and Control, Resource Protection, Prevention and Control of Water Pollution, Ecological and Environmental Remediation, Green Development, Safeguard and Supervision, Legal Liability, and Supplemental Provisions, totalling 96 articles.

It is stipulated that fishing activities will not be allowed in any aquatic life reserves nor the main stream, riverconnecting lakes, and important tributaries along the Yangtze River Basin.

“Preventive and Thorough Disinfection Programme for Imported Cold-Chain Foods” launched The “Preventive and Thorough Disinfection Programme for Imported Cold Chain Foods” was launched by the State Council’s Joint Prevention and Control Mechanism against COVID-19 on 9 November 2020, following the existing overall precautions.

Imported cold-chain foods should be preventively disinfected in the critical control points during the logistical chain, such as port inspecting, transporting, storing, and retailing, before being handled by domestic workers.

Notice on the Tariff Adjustment Plan for 2021 As per the newly released “Tariff Adjustment Plan for 2021”, from 1 January 2021, 883 commodities (excluding tariff quota commodities) are imported under a provisional import duty rate, including over 20 fisheries and aquaculture species like Atlantic salmon, plaice, herring, Alaska pollock, etc.

China usually updates provisional duty rates for certain imported goods annually in order to boost imports and meet domestic demand, and rates are lower than the most-favored nation (MFN) duty rates.

Guidance on Promoting Loss Reduction and Efficiency in Agricultural Products Processing The Ministry of Agriculture and Rural Affairs published a guidance on “Promoting efficiency in agricultural processing” on 25 December 2020. By 2025, the loss rate of agricultural products in processing is required to be below 5%, and below 3% by 2035.

The guidance highlighted the importance of infrastructure construction and industrialization for agricultural products, as well as promoting the overall utilization of by-products. Moreover, the guidance stressed the importance of developing technical specifications, operating manual and standards for the processing of fresh and live agricultural products such as fruits, vegetables, livestock, and aquatic products.

Five Actions on Green and Healthy Aquaculture The Five Actions on Green and Healthy Aquaculture seek to: accelerate the transformation of farming methods, continuously improve the ecological environment, enhance quality development, and promote the green development of aquaculture.

4

Issue 1/2021

Chinese Fish Price Report

The Actions are: 1. Promote the ecological and healthy farming models 2. Improve the treatment of aquaculture effluents 3. Reduce drug use in aquaculture 4. Explore the usage compounded feed to replace forage fishes 5. Introduce new species accommodating the local conditions Measures to boost green development of E-commerce The General Office of the Ministry of Commerce issued a Notice on the Green Development of E-commerce Enterprises on 11 January 2021. The notice focuses on four areas: • Call for sustained industrial development with less energy but more efficiency • Green supply chain management for parcel packaging • Cultivation and fostering of eco-friendly awareness through the platform companies • Institutional support and safeguard measures E-commerce companies are encouraged to innovate delivery models like group-orders to reduce the usage of packaging, in particular the non-degradable ones.

Technical Guide for Pandemic Prevention and Control in Wet Markets The Ministry of Commerce issued the “Technical Guide for the Prevention and Control of Pandemic in Wet Markets” (Second Edition) on 5 January 2021, clarifying that the person in charge of the market is responsible for pandemic prevention and control.

Produce in the stalls should be displayed separately according to their categories: fresh, live, raw, cooked, dry, and wet. Areas for seafood, including live fish, are physically separated in the trading and processing areas. The stall operator shall conduct comprehensive cleaning and disinfection every day and maintain records.

5

©unsplash/patwhelen

Issue 1/2021

Chinese Fish Price Report

Industry news Cold-chain food traceability programme launched by the State Council In January 2021, the State Council launched a programme to check the food traceability of cold chains. The service is available on a hosted app, with access enabled to the provincial data.

The service provides convenience to both individual consumers and cold-chain companies as consumers can check the traceability information during shopping, while cold-chain operators can efficiently upload relevant information to the platform.

China to build the largest fish farming vessel In December 2020, China initiated a project to build the largest fish farming vessel named “Guoxin 1” in Qinghai City.

The vessel is designed to be 249.9 metrers long, 45 metres wide, and 21.5 metres deep. It has a draft of 12 metres, with a load capacity of about 100 000 tons and a displacement of 130 000 tons. The vessel is intended to have a speed of 10 knots and will be fitted with 15 aquaculture tanks, each holding 80 000 cubic meters water.

The vessel will be able to avoid typhoon and algae bloom dynamically and operate in different sea conditions globally.

The vessel is scheduled to complete segmented manufacturing, merging, testing, and system and equipment debugging in 2021. The expected delivery date is March 2022.

Gansu Province exports its rainbow trout eggs for the first time In January 2021, a batch of 110 000 rainbow trout eggs, after the inspection and quarantine at the customs, for the first time, was successfully exported to Nepal.

Gansu province is China’s main cold-water trout farming area, with more than 500 acres and an annual output of over 3 000 tons. It has the only national-level trout breeding farm in China, annually producing more than 10 million eyed eggs, with other farms lagging far behind.

2020 China Tilapia Industry Development Conference The 2020 China Tilapia Industry Development Conference hosted by China Aquatic Products Processing and Marketing Alliance was successfully held in Maoming, Guangdong Province on 15 December 2020.

Chinese tilapia production reached over 1.6 million tons in 2020. As the world’s most important tilapia producer and major exporter, China has maintained a stable export volume over the years.

Due to the pandemic, the profit of tilapia exports has dropped. The focus has shifted to exploring the potential of domestic markets to accelerate the integration with various catering industries.

China’s first high sea moratorium ends China’s three-month high-sea fishing moratorium ended successfully on 30 November 2020, during which all vessels were evacuated to effectively implement fishing ban measures. This was China’s first high sea fishing ©unsplash/Alex Duffy ban, and it included a large number of influential pelagic fishery enterprises.

6

Issue 1/2021

Chinese Fish Price Report

The ban on the high seas of the Southwest Atlantic involved 60 pelagic fishery enterprises, over 300 squid jigging vessels, trawlers, and auxiliary carriers, whereas the ban on the high seas of the East Atlantic involved over 60 pelagic fishery enterprises, nearly 600 squid jigging vessels, and auxiliary carriers.

2020 China Seafood Summit successfully held in Xiamen, Fujian province On 23 November 2020, the 2020 China Seafood Summit hosted by China Aquatic Products Processing and Marketing Alliance (CAPPMA) was held in Xiamen, Fujian province. Nearly one thousand representatives from domestic seafood processors, distributors, importers and exporters, catering companies, e-commerce platforms, fresh cold chain logistics, and other related companies attended the meeting.

The theme of the summit was innovation, cooperation, and win-win. The conference featured four themes: global economic trends in the post-pandemic era, the transformation of business management, trends in seafood consumption, and changes in the seafood market.

The 2020 China Seafood Summit covered the entire chain of the seafood industry from the perspectives of seafood processing and preservation technology innovation, development of standardized food, optimization of the distribution chain, sharing of live broadcast delivery, brand building experience, etc.

7

Issue 1/2021

Chinese Fish Price Report

Tilapia

Oreochromis spp.

© Fish Biology Laboratory Xiamen University

Tilapia prices have been increasing in major producing areas by CNY 0.2-0.4 per kg as of mid-January. The price of raw fish (0.5-0.8 kg per piece) in processing plants in Hainan province increased from CNY 7.6 per kg to CNY 8. The price in processing plants in west Guangdong was CNY 8.6 per kg, an increase of CNY 0.4 per kg compared to the previous month. However, according to industry insiders, it is not a good start of the year for the tilapia market as the current price is still relatively low.

Tilapia prices usually demonstrate a steady rising trend before the Spring Festival, but this year trading volume was limited. The number of commercial-sized fish that can be sold on the market is scarce due to the current situation and fish prices are expected to increase.

8

Issue 1/2021

Chinese Fish Price Report

Grass carp

Ctenopharyngodon idellus

© Fish Biology Laboratory Xiamen University

Driven by the rising price of pork and the consumption of Pickled Fish (a traditional Chinese dish popular at HORECA sector), the market demand for grass carp was relatively strong in mid-January 2021. However, the inventory of grass carp decreased significantly over the country compared with 2020. Due to the impact of cold weather, it was difficult for farmers to harvest in many areas of the country. As a result, grass carp was in short supply and the price rebounded.

Fish prices in some areas increased by about CNY 2 per kg compared with the end of December 2020.

Starting from January 2020, market demand for grass carp became quite strong in contrast to the reduced stock of adult grass carp and this led to a price hike. Currently the price hits CNY 12 per kg. The price of fish (1-1.5 kg per piece) was quoted at CNY 12.6 per kg in Zhongshan city, which is CNY 3 per kg higher than 2020.

The sharp rise in grass carp prices led to the simultaneous recovery of grass carp farming. It is expected that the price of grass carp will continue to rise in the short term.

9

Issue 1/2021

Chinese Fish Price Report

Largemouth bass Micropterus salmoniodes

© Fish Biology Laboratory Xiamen University

Affected by the cold weather in January, farmers were unwilling to sell fish in order to reduce the risk during harvest.

Moreover, demand for Largemouth bass over 0.4 kg per piece dropped in the Northern market and the price was quite weak in most areas of the country. Fish at 0.4 kg per piece in Guangdong province was only quoted at CNY 20 per kg.

Due to the Chinese New Year, demand for large-size fish increased. Compared with 2020, the stock of Largemouth Bass decreased in East China. Combined with strong demand from distributors, some farmers are quite optimistic about the future market so they would like to hold stocks.

10

Issue 1/2021

Chinese Fish Price Report

Chinese snakehead Channa spp.

© Fish Biology Laboratory Xiamen University

Chinese snakehead prices have been showing a roller coast trend due to COVID-19. Until the end of January in midJanuary 2021, prices demonstrate a moderate to low trend.

Usually, farmers have to sell their inventory in order to pay the rent and other costs which leads to a market glut, and as a result, fish prices drop. However, in 2020, prices of snakehead began to rebound by the end of December with fish (1 kg per piece) sold at over CNY 16.8 per kg and large-sized fish gained more popularity.

But this peak did not last long. With the decrease of post-holiday consumption and the sporadic occurrence of COVID-19, the large-sized fish became hard to sell by the middle of January 2021. The overall price dropped by CNY 0.4-1.6 per kg.

The market players are closely monitoring the situation, it is hard to predict the future movements of prices.

11

Issue 1/2021

Chinese Fish Price Report

Abalone

Haliotis Linnaeus

© Weiwei You, Xiamen University

Affected by the COVID-19 and excessive production in the culture cycle, the prices of large-sized (10 pieces per kg) and small-sized (20 pieces per kg) abalone dropped dramatically in the first half of 2020. Both farmers and dealers have suffered great losses as abalone was selling at prices even below cost.

Abalone prices have recovered slightly due to the effective control of COVID-19 and the reopening of restaurants.

While abalone prices in the first half of 2020 were generally at record low levels, many farmers started to freeze and dry abalone for storage to mitigate the impact of the shrinking market. The price of raw abalone rebounded somewhat after June.

In November 2020, market prices for small-sized abalone remained stable, whereas prices for large abalone fell sharply again. With the upcoming Spring Festival, both prices and sales of abalone are expected to rise due to consumption associated with holiday consumption. However, the trend in abalone prices has become very uncertain.

12

Issue 1/2021

Chinese Fish Price Report

Hybrid grouper

Epinephelusfuscoguttatus & Epinepheluslanceolatus hybrid

© Fish Biology Laboratory Xiamen University

The overall market stayed gloomy in the first half of 2020. Farmers switched to other species or reduced the stocking capacity. The aforementioned behavior led to a shortage of supply at the end of 2020 and prices consequently rose when banquet consumption increased. These factors gave rise to the price growth rapidly. With the advent of holidays and cold weather, farmers have begun to sell but the price remains high.

In January 2021, some regional governments recommended avoiding gatherings due to the pandemic. The market is cautious and transaction volume has been greatly reduced. The price is trending downwards.

13

Issue 1/2021

Chinese Fish Price Report

Whiteleg shrimp Penaeus vannamei

From September to December 2020, prices in major producing areas stayed low. After December, the stock decreased due to cold weather. Subsequently, the overall market was in short supply and the price climbed, with a monthly increase of CNY 20 per kg.

Although white leg shrimp prices have dropped due to pandemic restrictions on catering consumption, the live shrimp stock is still insufficient. Farmers are still confident in market development and prices are expected to be stable and even follow a positive trend.

14

Issue 1/2021

Chinese Fish Price Report

Prussian carp Carassius gibelio

The prices of Prussian carp have been declining since September 2020. As the major mix-cultured species in China, the market is oversupplied since many ponds sold out at the end of 2020. In January 2021, the prices were generally higher than those in 2020.

Ponds in most parts of northern China have been frozen due to the cold weather. The overall pond stock is no longer sufficient. Since December 2020, the price has also risen. It is expected the market will continue as a result of the Spring Festival.

15

Issue 1/2021

Chinese Fish Price Report

Turbot

Scophthalmus maximus

© Fish Biology Laboratory Xiamen University

The prices from major producing areas have shown a vertical upward curve since September 2020. Since pandemic was under control in China, catering and ceremonial events consumption has gradually opened up, while demand for turbot has increased. In the first half of 2020, the seedlings reduced, and this led to low stocks of turbot. As a result, prices have been trending upward.

After December 2020, sporadic COVID-19 cases occurred in many northern provinces resulting in catering consumption to become restricted once again. Due to the current slump in the turbot market, turbot are mainly being sold to the southern market.

The market outlook for turbot seems negative due to the pandemic situation. It is expected that the first half of 2021 will not be positive but similar to 2020.

16

Issue 1/2021

Chinese Fish Price Report

Mandarin fish Siniperca chuatsi

© Fish Biology Laboratory Xiamen University

Mandarin fish prices have dropped by CNY 14 per kg and floated at around CNY 46 per kg since October 2020.

Mandarin fish prices typically decrease significantly in the last quarter interannually due to the large supply by Guangdong, Hubei, and Jiangsu provinces (some are mix-cultured with crabs), leading to an oversupply. Meanwhile catering consumption has dropped by one-third compared with previous years.

It is expected that the market will experience a drop of at least 20% in transaction value. There is little momentum for a price increase, but since it is already lower than the cost, likely, there will not be a significant decline, but stabilizing at a low level.

17

Issue 1/2021

Chinese Fish Price Report

18

Issue 1/2021

Chinese Fish Price Report

19

Issue 1/2021

Chinese Fish Price Report

20

Issue 1/2021

Chinese Fish Price Report

21

Issue 1/2021

Chinese Fish Price Report

22

Issue 1/2021

Chinese Fish Price Report

THE CHINESE FISH PRICE REPORT

fao-globefish@fao.org