Monday, Nov. 9, 2.13 p.m. CST
Capacity issues force move to new expo space
Last year, approximately 1,260 companies from 43 countries filled 25,600 square meters of exhibit space in all seven halls of the sold-out Qingdao International Convention Center, a 24 percent increase from 2013. That trend continued this year forcing event organizers to relocate to the larger Qingdao International Expo Center (QIEC) for its 20th anniversary.
The new expo center brought concerns over logistics as it is located 45 minutes to an hour north of downtown, but Peter Redmayne, president of Sea Fare Expositions, said the new center can accommodate capacity issues the previous one could not due to increased attendance. Shuttle buses were run from downtown hotels to the QIEC and he said they held off moving to the new center as long as possible to wait for the development of the light rail.
The light rail from downtown Qingdao to the expo center is scheduled to finish next year.
The expo is expected to grow each year and the new center can hold 6,000 booths and 10 halls. There were several safety and visual advantages to the new center as well, such as pillar-free halls and no exposed wiring or cords.
Redmayne told IntraFish the preliminary numbers show net space of overseas exhibitors is 8,000 square meters, up from 6,000 square meters last year and net space of Chinese exhibitors is about 17,000 square meters.
The expo show's success continues in not just attendance levels but also sales.
The Canadian booths spanned a large prominent space and preliminary numbers show Canadian companies raked in hundreds of millions in anticipated sales, said Ben Berry of Agriculture and Agri-Food Canada, according to Redmayne.
--Kim Tran
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Friday, Nov. 6, 4.10 p.m. CST
Processor: 2015 ‘most difficult’ year for pollock
This year has probably been the “most difficult” one for Chinese processors, especially on Alaska pollock, Eva Ye, vice president at Dalian Tianbao Green Foods, told IntraFish.
There’s still “a lot of competition” in Europe, especially in Germany, with buyers squeezing on price.
The volatile currency situation is playing its part, Ye said. “It’s not easy. Buyers buy in US dollars but then sell it for less in euros. The exchange rate was very low but it’s getting better.”
A number of processors in the Qingdao area had to shut, after not being able to get loans from banks.
But Ye is seeing this as an opportunity for the ones who persist.
“The financial issues might mean a chance for the bigger players; it will result in less competition,” she said.
Dalian Tianbao Green Foods’ advantage is its “strong financing capability” – it was listed on the Shenzhen Stock Exchange in 2008 – its wide customer structure and diversified products.
While Alaska pollock is still the biggest species in terms of volumes – but not in value as Ye pointed out – it is getting bigger on flounder, sole, salmon, crab and cod.
The company invested in a shareholding in a flounder and sole fishing vessel in Alaska “to secure supply,” Ye said.
“Our strategy is to diversify, we don’t want to depend on one species,” she told IntraFish, adding that’s one mistake some Dalian processors made.
Dalian Tianbao Green Foods’ main markets are split out between the United States, Europe – with Germany, France, the United Kingdom, the Netherlands and Sweden – as well as in Japan.
It supplies both supermarkets and secondary processors.
--Elisabeth Fischer
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Friday, Nov. 6, 3.55 p.m. CST
Hake: an early contender
Nearly all hake entering China historically goes to reprocessing for export because there are no VAT taxes.
However, British Columbia-based Aqualine Seafoods is seeing a sudden shift.
"Just recently, we saw a change in the domestic market, just in the last few months," said Jesse Bray of Aqualine Seafoods, adding it's too early to measure how the domestic growth will play out in China.
Chinese consumers are asking for hake in the form of steaks or or to use in dumplings. So far it's picking up in the frozen retail sector in China.
Due to existing partnerships Aqualine has with its Chinese processors, there have been no issues with getting its product into retail.
The processors simply reroute a portion of Aqualine's hake into the domestic market.
"Our predictions are hopeful" because for Aqualine, hake is its largest export species. The MSC-certified wild caught fish is available most of the year, other than two months in the winter. Hake is frozen at sea on Aqualine's two vessels.
Last year, Aqualine harvested 20 million pounds of hake.
--Kim Tran
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Friday, Nov. 6, 3.40 p.m. CST
Next year: bigger and Baader
Ten years after Seafood processing equipment firm Baader came to the Asia Expo, the company continues to grown off its established relationships and looks to return next year with a larger booth and more equipment.
The company heavily invested in 2005, the first expo Baader participated in. After creating inroads and relationships, the company "began to take off in China five years ago."
"Now we're seeing a growing demand among our clients for food safety, quality and consistency. Historically, China reprocessed its imported seafood, but now there is a shift to the local market. So our main focus now is equipment for exports as well as domestic processing."
Over the years, Baader has followed the changing processing needs in Asia, from catfish to salmon and now Alaskan pollock.
The Baader 588 equipment at the Asia Expo garnered much interest. It processes whitefish, cod and Alaska pollock. He estimated equipment for aquaculture will grow in the near future.
Returning to the Asia expo each year is important because "Chinese companies recognize that loyalty and commitment."
Also keeping consistent is Baader's red dragon logo for the Asian market, which it has used since they started at the Asia Expo.
To match the company's growth, it's opening another office in Asia. It currently has one office in Beijing. Also, most of its global offices are staffed with Baader's European employees.
"With our Asian offices, we want to get locals in there and grow a team environment. We also have a strong service team and customer support. We follow up with equipment service and want to invest more resources and energy into the Chinese market."
--Kim Tran
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Friday, Nov. 6, 3.20 p.m. CST
China’s processing sector still in turmoil
China’s processing sector continued to struggle into 2015, with several “big processors shutting down,” one executive at a local $30-million turnover Alaska pollock, cod and salmon processor, told IntraFish.
“The biggest issue is the financial situation and the market situation,” the source, who didn’t want to be named, said.
A number of companies are still facing financial difficulties on the back of a “slow market,” especially in Europe, and rising labor cost.
Competition, however, is getting less.
Despite the problems, the source is convinced that China “will still be here in five to 10 years. No one has the ability to take over China’s role.”
Know-how and the existing logistics network will be the reasons for that.
The company, which has a capacity of about 20,000 metric tons, is looking for a “fair play” going forward.
In the future, “we hope this market will not be a price-oriented market, but that everybody involved should play fair,” the source said.
--Elisabeth Fischer
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Friday, Nov. 6, 3.01 p.m. CST
Cabomar finds new red shrimp path in China
Spanish shrimp producer Cabomar is finding a growing market for Argentina red shrimp in the Chinese market, both whole round and tail.
"We're trying to promote here and we're getting good feedback and a lot of interest," said Guillermo Casquero of Cabomar.
The growing domestic demand is helping their shrimp sales as well as cod and squid, he told IntraFish.
Currently Cabomar exports 60 percent of its seafood, mainly to Europe, and only 5 percent of that is to China. However, Casquero said that percentage is growing quickly now.
The company also sources raw material from China.
--Kim Tran
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Friday, Nov. 6, 2.45 p.m. CST
ASMI starts roe promotion in China
Alaskan species in high demand include king crab, snow crab, black cod and high quality salmon and most go to foodservice.
However, retail is growing, said Robin Wang who heads up marketing for Alaska Seafood Marketing Institute (ASMI).
Cod fish and pollock roe are newer Alaskan species entering the market.
"Pollock roe is traditionally sold to Japan, but we're pushing it hard and looking to market this to the Chinese market," said Wang, adding roe meets a lot of consumer demands for food saftey, nutrition, omega 3, high protein.
"We're promoting it in foodservice and have had good feedback. We hired a chef to create recipes for Chinese consumers."
If consumers don't know how to use it and cook it, they don't buy it. The chef-inspired recipes show other ways of using roe outside of traditional sushi, such as in rice and noodle dishes.
--Kim Tran
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Friday, Nov. 6, 2.34 p.m. CST
Alaskan exports to China top $1 billion
The common trend continues among exhibitors.
"The Chinese market changed a lot in the last three to four years, from a lot of processing [for export] to more local demand," said Robin Wang who heads up marketing for Alaska Seafood Marketing Institute (ASMI).
He said Alaskan seafood going into China increases every year and now there's a growing demand for higher quality products among domestic consumers.
Last year, $1 billion worth of Alaskan seafood was exported into the Chinese market.
Alaskan export to China usually target first tier cities, but now he said interest is now spreading to second tier cities due to growing middle class.
Most is exported frozen to ensure wild-caught seafood is available in the off-season, "but we're working with Chinese airports to get fresh seafood over when it's in season."
--Kim Tran
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Friday, Nov. 6, 2.12 p.m. CST
Clearwater, MacDuff to tackle growing Chinese demand
Clearwater's acquisition of MacDuff Shellfish in October "was great because of their wild seafood and shellfish."
"The Chinese market is big and we have the channels but need more product," said Dianne Hu, Clearwater marketing director in China. "The wild seafood supply is limited in China so with MacDuff, we're able to get more product into the market, which means more opportunities. We are also continuing efforts in sales and marketing."
She added Clearwater launched new products this year in the Chinese market, Arctic cockle clams.
These wild clams are caught in the north Atlantic and "they're sushi grade and great for sashimi. The price and supply is stable and the quality is high, which is what Chinese consumers are now demanding."
Clearwater and MacDuff products go mainly into foodservice in China, but "we just started going into retail," said Hu.
Of Clearwater's exports, 20 percent go to China and its business in the Chinese market continues to boom and is expected to double in the next five years.
--Kim Tran
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Friday, Nov. 6, 1.52 p.m. CST
Multiexport develops plan to take on China long-term
Producer Multiexport has the second largest Chilean salmon exports to China, behind New World Currents, which is comprised of four Chilean companies.
"China is very important for us. It's where our company plans to grow, especially in the fresh business," said CEO Ricardo Grunwald A.
"Customers are asking for high quality now. We feel Asia is where the growth will be in the near future."
About 8 to 10 percent of Multiexport's current 2015 harvest went to China, specifically to wholesale distributors. He said year-on-year growth for the company in the Chinese market is 15 to 20 percent.
"We're still developing our marketing plan in China and want to make sure we do it properly. We're looking for a long-term commitment."
He also hopes for China to improve its distribution chain with time to improve market access in the retail side.
--Kim Tran
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Friday, Nov. 6, 1.40 p.m. CST
Mitsui pumps another investment into Multiexport
Chilean salmon company Multiexport recently received another investment from its new partnership with Japanese seafood giant Mitsui .
Multiexport has had a long-running relationship with Mitsui since 1995, but three years ago, Mitsui formally invested in Multiexport and invested again recently, said CEO Ricardo Grunwald Aravena.
"We hope to strengthen our position in Asia with them," Grunwald said. "Mitsui will help us become one of the stronger Chilean companies in the long term. They offices all over the world."
He sees great opportunity for Multiexport to expand, not just in Asia, but worldwide with Mitsui's global presence.
"That will allow us to become the strongest marketing company for Chilean salmon in the world."
--Kim Tran
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Friday, Nov. 6, 1.36 p.m. CST
Organic trout – made in China
Looking at the pictures of farming cages in LonYangXia's leaflet – promoting its organic trout – one could easily think they're somewhere located in Norway: the water is surrounded by snowy mountains, the cages look top-notch.
But it's actually in China, based in the first dam of the thousands of miles long Yellow River, Longyang Gorge.
"We're pioneers in farming rainbow trout in China," Mirko Marinovic, international trade manager at LonYang's holding company Dunan, told IntraFish.
The company, which started up the project in 2004, has been farming at five locations, he said, with all the tech supplied from Akva Group in Norway.
"Everything is fully automated," Marinovic said.
This year, the company will produce 5,000 metric tons, and next year production is expected to hit 10,000 metric tons.
The plan is to build more sites, and to invest in a new production facility, he said. "We're growing much faster than expected."
--Elisabeth Fischer
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Friday, Nov. 6, 12.12 p.m. CST
Weakening US, EU buying power prompts processor to shift market focus
Taiwanese shrimp and crab processor Gallant Ocean is shifting its focus to the domestic market, as the buying power in its main markets the United States, Mexico and Europe is decreasing.
“Last year was very good but this year the market is very soft -- and we’ve got high targets,” Joy Wu, vice sales manager at the company, told IntraFish.
Prices for both shrimp and soft-shell crab have gone down significantly this year, she said, after seeing “very high” levels in 2014.
For soft-shell crab, which it sources from farmers in Myanmar, prices decreased by 20 percent year-on-year, mainly because of an overproduction in the country, coupled with the soft demand.
The company reported export sales of about $125 million in 2014, but Wu said this target won’t be reached this year.
“People [in the United States, Europe and Mexico] are simply not eating as much seafood. Maybe they prefer chicken,” Wu said.
Gallant is now eying the domestic market to make up for the losses. “Now the share is very small but we’re thinking of shifting to the Taiwanese market,” she told IntraFish.
In addition, it is mulling over entering other Asian markets such as Vietnam and Thailand, where “buying power is very strong.”
It currently fetches about $18 to $20 per kilo of cleaned soft-shell crab, Wu said.
Gallant has production facilities in China, in Taiwan, in Myanmar, Thailand and Vietnam and has continually expanded after being set up in 1984.
The next big investment will be in a new processing facility in Taiwan, Wu told IntraFish. “The one we have now has been running for 30 years so we’re thinking of building a new one,” she said.
--Elisabeth Fischer
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Friday, Nov. 6, 10.45 a.m. CST
Vietnamese firm pushes new pangasius oil
International Development & Investment Corporation (IDI) has an edge over its competitors in the Chinese market.
The Vietnamese pangasius company has a diversified export business, which includes Brazil, Columbia, the EU and more.
"A few years ago, IDI sent several employees to China to learn the market, get trained and build relationships," said Nguyen Thi Ngoc Thanh. Thanks to that, the company established inroads into the Chinese market.
Currently, 40 percent of IDI's exports go to China.
"We have contracts with larger retailers who have high quality standards we can meet. We sell to both foodservice and retail, but mostly retail, 70 percent," she said.
Currently, IDI is pushing a new product into the Chinese marketplace produced by its sister company AFO.
"A new factory was built a few years ago but last year we introduced the product," she said. "We want to export to many companies, but right now we're focusing on China because there is big potential in the domestic market."
--Kim Tran
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Friday, Nov. 6, 10.32 a.m. CST
Thailand's TIP report status pushes up shrimp prices
Ecuadorian shrimp producer Santa Priscila expects to expand in China as the market is expected to grow 30 to 40 percent in general.
"We exported 2,000 containers worldwide and in China we export more into retail over foodservice, around 70 percent to retail," said Freddy Auching of Santa Pricila.
He added its business is with larger retailers, who are now demanding more and more high quality shrimp.
Shrimp prices are higher than normal right now.
When Thailand was hit with news of the TIP report for issues revolving slave labor in its seafood supply chain, Auching said supply from Thailand into the worldwide market dropped, which forced prices up.
"One country affects the entire industry."
--Kim Tran
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Friday, Nov. 6, 9.37 a.m. CST
Vietnamese shrimp farmers 'not making any money'
Demand for Vietnamese shrimp has picked up since September, after seeing a very sluggish first eight months of the year, Ngo Quoc Tuan (Tony), vice president and CCO at Quoc Viet, said.
“2014 was a very good year for Vietnamese shrimp farmers but since the beginning of the year demand was slowing down due to high inventories [of buyers] and higher production,” he told IntraFish.
As a result, prices dropped significantly through August and the industry was at a point where “couldn’t make any money,” he said.
Demand picked up again in September, he said, but there might be a shortage of raw material ahead as many farmers stopped seeding their ponds on the back of the low prices.
“We are worried that there is not enough raw material around” to cater to the increasing demand, he said.
One tendency he also noticed is that Chinese companies are more and more buying directly from Vietnamese farmers. “But the quality is low,” he said.
Quoc Viet expects a 30 percent drop in its turnover this year, even though volumes are “quite similar” to 2014.
“Prices are just down,” he said.
To secure raw material for its processing factories, and a sustainable supply chain, the company has working on setting up exclusive partnerships with farmers (see previous blog post).
“In the last 20 years, since we started exporting to Japan, the United States, Europe and other countries, we’ve seen a lot of up and downs,” Ngo told IntraFish.
“It’s not easy to operate in the shrimp business, there are a lot of challenges in the supply chain.”
Quoc Viet currently sells 55 percent of its products as VAP, the rest is made up by commodity products.
--Elisabeth Fischer
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Friday, Nov. 6, 9.30 a.m. CST
Quoc Viet ploughs $9 million into processing upgrades
Vietnamese shrimp processor Quoc Viet invested around $9 million this year in upgrading its processing factories “from floor to ceiling,” Ngo Quoc Tuan (Tony), vice president and CCO at the company told IntraFish.
New machinery was installed and the company now has a processing capacity of 45,000 metric tons.
“We keep expanding,” Ngo said.
In addition, the company keeps investing in securing its raw material supply from Vietnamese farmers.
It is working with more than 2,000 small-scale farmers in Ca Mau and Dat Mui – covering about 11,000 hectares – to improve farming conditions there.
The company invested in education and upgrading hygienic standards toward more sustainable farming models and “organic certified systems,” he said.
These measures will increase the actual production output, help farmers get more competitive pricing and protect mangroves in the area, Ngo said.
“It’s good for the country’s industry, it’s good for our company – we’re part of the system.”
--Elisabeth Fischer
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Friday, Nov. 6, 7.01 a.m. CST
El Nino hurting giant squid harvest
Fishmeal and fish oil giant Pesquera Exalmar is looking forward to next year when conditions will stabilize. The company's main export to China is cooked giant squid, which is sold under the Triskel Mar brand and this year the harvest ran into problems with El Nino.
"Captures went down a lot this year because of El Nino," said Sebastian Quidiello, general manager at the firm, adding the weak Russian ruble had an indirect impact.
The company sells boiled raw material to Chinese processors who then sell a final product to Russia. However, Russia's weakened currency had a reverse "domino effect" that went back to Pesquera Exalmar this year.
"Last year we exported 300 to 400 containers, 27 tons per container, to China and we expect growth next year. Under normal circumstances, we see an average of 25 percent growth per year in this market."
The company projects an estimated 400 to 450 containers of giant squid to be exported to China next year.
The species is available year-round, but during certain times of the year, it moves away from shore, which lowers its abundance for in-shore fishermen.
Right now, harvests are low because of that in the months of November through January and giant squid will return in numbers in February.
--Kim Tran
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Thursday, Nov. 5, 4.46 p.m. CST
Bouncing back from a yellow card
The yellow card issued by the European Commission hurt Papua New Guinea whose largest tuna market is the EU.
"There were issues with IUU fishing and sustainability but mainly illegal fishing," said Vimuru Bisambi, marketing officer of the Papua New Guinea's National Fisheries Authority.
"We had six months to address this and we put in a new tuna management plan. They withdrew the yellow card last month."
The new plan reduces allocated fishing days from 44,000 days to 30,000.
Other challenges the fishery has faced include climate change and the fact that tuna is a very migratory species.
There are five privately owned processing companies on Papua New Guinea, mainly Filipino. The country also produces shrimp, lobster and redfish, whole and fillets.
--Kim Tran
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Thursday, Nov. 5, 4.04 p.m. CST
Norway, China woes continue
Norwegian salmon companies are in big attendance again this year, but selling? That’s not going to happen.
One visitor, who has close ties with the industry, told IntraFish all the Norwegians can do this year is meet customers from other regions, but China remains a no-go to them.
Currently, no salmon is flown into China directly, he said, and that’s probably not going to change any time soon.
“It’s a meeting place but they’re not selling anything.”
Many of the firms are even thinking about not coming next year should the situation continue, he said.
“It just makes no sense,” he said.
--Elisabeth Fischer
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Thursday, Nov. 5. 4.03 p.m. CST
Salmon gains ground in China
Since the mid-90s, the buying power and consumer habits changed drastically in China, according to one American producer, who has attended the Asia Expo since 1998.
He told IntraFish there were only one to two salmon exhibitors in 1998, a big change compared to today. However, it took some years for salmon to make inroads.
"Salmon didn't take off in China until the late 2000s," he said, adding he's also seeing a recent demand increase in surimi blocks, which use Alaska pollock and Pacific hake, as well as yellowfin sole.
He said most yellowfin sole harvested in Alaska go to China, either for domestic consumption or for processing before heading back out into markets such as the United States or Europe.
A unique aspect of yellowfin sole is the fact it's a flatfish.
"Alaskan ships have machines to process and fillet pollock because it's a round fish," but yellowfin sole is flat, which Alaska does not have the right equipment for. On top of that, the labor in China is so much lower, even to slice and process the yellowfin sole by hand over using a specialized machine.
Employment for many in China is restrictive, "many only have the option of working for little pay in a factory or they can farm their own food," he said.
--Kim Tran
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Thursday, Nov. 5, 3.47 p.m. CST
Peruvian supplier eyes 30% growth in China’s squid market
Known for fishmeal and fishoil product, for Hayduk Corp., the Chinese market is different.
Eduardo Gabriel Amorrotu Garland, sales coordinator at the company, said the demand is high and growing for cooked giant squid in China.
"China is our main client." The year-round species is "slow right now" but demand continues to boom.
To address this, the company is on the hunt for a China-based warehouse "to help tend to the market faster."
The company found two and plans to pick one by 2016.
"The new warehouse will allow for easier distribution and serve smaller companies who can't import the whole container."
Only 30 percent of the company's giant squid products will go through the warehouse because most Chinese clients are larger and import whole containers.
Hayduk exports 5,000 - 6,000 tons of cooked giant squid per year to China and "we want to grow that by 30 percent," said Amorrotu Garland.
--Kim Tran
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Thursday, Nov. 5, 3.40 p.m. CST
MSC: Small but steady steps in China
The MSC got a lot of attention this week in China, with the Zoneco trip and its Sustainability Forum on Tuesday.
An Yan, country manager China at MSC, said things are moving in the right direction. “We’ve been getting a lot of attention from partners,” she told IntraFish.
After seeing the first Chinese tuna longline fishery certified earlier this week, the MSC is involved two to three pre-assessment programs, but several fisheries improvement projects are popping up across the country.
Nicolas Guichoux, global commercial director at MSC, added he was “super-excited with this week. We’re seeing a lot of enthusiasm.”
He described China as a country “where things can go very fast. It’s dynamite.”
Yan said two years ago companies were still “driven by international market” but now companies do see the need to change their practices.
“They’re taking a long-term perspective,” she said, adding demand for sustainable products is growing at a consumer and retail level.
But there are challenges. “There’s no real awareness of MSC label,” Guichoux told IntraFish. “It’s early days.”
But with stronger competition in the market, with innovation and new product forms being key for growth also in China, “MSC is part of the mix,” he said.
He hopes for something similar to happen when discounter Lidl approached the MSC in Germany in 2006, saying it wants to use the label on all of its products to differentiate itself.
“Let’s see if it works,” he said.
--Elisabeth Fischer
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Thursday, Nov. 5, 3.20 p.m. CST
UK finds a place in China
The main imports into the UK from China are cod, haddock, tuna, salmon and shrimp. As for exports, the UK mainly ships pelagics to China,
However, a recent change in Chinese consumer demand is opening new doors for UK seafood suppliers.
Chinese demand has historically skewed toward quantity over quality.
However, "in China, there is a greater demand for high value species and premium quality products, which the UK can provide," said Malcolm Large, head of international trade and regions for Seafish.
UK suppliers are finding more and more demand for shellfish, such as crab, lobster and langoustine.
"Also helping with this growth is increasing awareness in the Chinese market. Our products are finding a place over here."
He added that one of the roles Seafish plays is taking trade inquiries from Chinese companies, bringing those inquiries back to the UK to match with potential suppliers.
The steady growth of UK seafood in China shows physically. After a decade of having a presence at the Asia Expo, Seafish's booth has grown each year and this year, its pavilion is 25 percent larger than last year. Large hopes this is a sign of continued success.
--Kim Tran
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Thursday, Nov. 5, 3.12 p.m. CST
No time for bullshitting when you’re brand-building in China
Bjorg Finnbogadottir has big dreams: Building up a brand for North Atlantic fish and seafood in China.
She founded Pure North Atlantic in Shanghai three years ago and has been working hard to launch the first products into the market since then.
“I’m hoping to start with the first products next year,” she told IntraFish. “China is a long-term game; it takes time.”
She’s targeting high-end retailers in the Shanghai area to start off with, using California-based Everfish International’s distribution network into the country.
The key to her success will be good relationships both with suppliers in Iceland and Europe as well as buyers in China.
She’ll be sourcing “speciality products” such as Icelandic cod, organic salmon, langoustines, haddock, monkfish and “maybe some smoked fish” and sell them under the Pure North Atlantic brand.
“In retail you can distinguish yourself with packaging and marketing,” she said, adding only then it’s possible to build up a brand.
“The market is changing so fast, it’s all about the consumer now. It’s a big difference to when I started three years ago,” Finnbogadottir said. “The most important thing is to target the right consumers, to know what they want and to bring value to them. It’s all about the right message.”
Finnbogadottir, who has a partner in Australia too to build up a similar venture there, said she’s trying to “keep things simple.”
So far, she’s financing the venture herself. “I haven’t gone on the look-out for financing yet but it will come. It’s a long-term thing.
“It’s a good time in China for people who want to do real business, and not bullshit,” she said.
--Elisabeth Fischer
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Thursday, Nov. 5, 2.10 p.m. CST
#SeafoodSelfie
It's been a busy Qingdao show so far but the IntraFish team is having fun nevertheless. Here's our mandatory #SeafoodSelfie -- as Twitter and any other social media don't work in China, we'll just have to post it on here.
--Elisabeth Fischer
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Thursday, Nov. 5, 1.11 p.m. CST
Dutch herring processor remains acquisitive
The Netherlands-based matjes and herring processor Haasnoot Fish Group remains acquisitive, and is in advanced talks to “cooperate” with a Dutch fish player.
Martin Haasnoot, director at the firm, declined to name the targeted firm to IntraFish, but said the deal is expected to go through in the next one or two months.
“Our plan is to grow and with have to continue with it,” he said. “Especially on retail you need to have a wider range of products.”
The plan is to grow with the addition of smaller companies to its portfolio, something Haasnoot kick-started in 2013 with the acquisition of Vergro Fish.
“The size is not always the most interesting thing, it’s the products,” Haasnoot said.
Haasnoot Fish will report a turnover of around €50 million this year.
“But we have to grow a little bit more, it’s necessary for the future.”
That’s also why the company is attending the expo in Qingdao. “It’s a big market,” he said, even though it makes up only around 1 percent of total exports.
“We have an agent now; we built up contacts last year. China takes time but it will grow,” he said.
Holland, Germany and Belgium are still the company’s biggest markets with about 80 percent of total sales.
Haasnoot is also making inroads in the Polish market, where it nabbed listings with discounters Biedronka and Lidl through local distributors.
“We’re turning our company around at the moment,” Haasnoot said.
--Elisabeth Fischer
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Thursday, Nov. 5, 12.15 p.m. CST
Chilean salmon finds fast growth in China
New World Currents' four companies -- Blumar Seafoods, Australis Seafoods, Yadran, Camanchaca -- account for 23-24 percent of the farmed salmon production in Chile.
New World Currents currently has 25 to 27 percent of the Chilean salmon market share in China.
"We're the only ones in Chile with an established distribution channel in China," said Eduardo Goycoolea, executive director at New World Currents.
This year, New World exported 4,500-5,000 metric tons of salmon to China. He estimated the total 2015 world wide farmed salmon imports going into China at 70,000 metric tons and mostly for local Chinese consumption.
Last year New World Currents grew 40 percent in export volume in the Chinese market, 30 percent this year with a projected 30 to 40 percent growth next year.
The company flies its salmon daily but due to high demand, it also has to supplement with additional flights out of Buenos Aires, Argentina.
One of the challenges of coordinating four companies under one new brand is consistency.
Its shipped boxes to China have the New World Currents logo, not individual companies, so the quality and consistency needs to "harmonize" among the four companies and their multiple processing plants.
Goycoolea said he feels New World Currents has "a bright future. We're getting requests from other companies to join, but we want to develop the brand and value added products first."
--Kim Tran
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Thursday, Nov. 5, 11.38 a.m. CST
Chile's New World Current readies for retail
Just two years after launching as a new commercial venture in October 2013 among four Chilean salmon companies, New World Currents is pushing forward into the Chinese market quickly.
Eduardo Goycoolea emerged from retiring from 25 years at Blumar to take over the reins at New World Currents in April as the executive director.
"I wanted to stay connected to the industry so I left retirement. I'm very excited about the next few years."
And he should be.
Last year, New World Currents developed the frozen market in China and this year "we're focusing on the fresh salmon market."
This year, the venture exported 4,500 to 5,000 metric tons of salmon to China, 30 percent of which was fresh and 70 percent frozen.
Last year and this year's targets were wholesale foodservice, so next year the company plans to tackle retail.
"We're developing the strategy for that now. We're also looking into internet sales and e-commerce in China as well as value added products."
He added that before New World accepts requests from other companies to join, it needs to firm up its value added products first. New World Currents' four companies are Blumar Seafoods, Australis Seafoods, Yadran and Camanchaca.
The company has a sales office in Shanghai and this year moved its headquarters to Shenzhen for close proximity to Hong Kong. It plans to open a third sales office by the year's end in Qingdao.
--Kim Tran
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Thursday, Nov. 5, 10.47 a.m. CST
Ecuador shrimp beats out bananas in China
For the first time, shrimp exports overtook banana exports from Ecuador into China. Bananas historically took the top spot in Ecudorian exports to China for the last 30 years but demand pushed shrimp into first place this year, said Andres Armas, who heads up the commercial section embassy for Ecuador.
"We estimate one-third of Ecuador shrimp goes to Asia, mostly China. Demand in China is growing exponentially."
He estimated Ecudorian shrimp exports worldwide last year at $2.5 billion -- $750 million to Asia and of that, $150 million to China. He also estimated shrimp prices to increase next year.
In 2013, Ecuador exported 223,000 metric tons of shrimp; in 2014, 300,000 metric tons and through just August this year, 227,000 metric tons. Although it's on track to surpass last year's export volume, "we have to wait and see what happens with El Nino."
One of Ecuador's advantage is its mild weather, which allows for a year-round supply of shrimp into China. Armas said one potential challenge is the upcoming El Nino.
"El Nino may be an issue, but even if it is, it will not have a significant impact."
At the Asia expo, the country has 14 shrimp companies represented. The expo's timing benefits the shrimp industry as sales will increase in November to January with the holiday season in the United States and United Kingdom, followed by Chinese New Years in February.
"Shrimp is well-known in China, so it sells itself. There's no need for much marketing."
He noted that Chinese buyers are asking for and willing to pay for better quality and taste, which Ecuador can deliver with its farmed white vannemai shrimp.
--Kim Tran
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Thursday, Nov. 5, 9.36 a.m. CST
Huon: Lower densities, happier fish
Tasmanian salmon farmer Huon Aquaculture is nearing the completion of the “world’s biggest” salmon pens at one of its sites, Scott Nolan, general manager sales, marketing and processing and Abby McKibben, brand manager at the company, said during a pit stop at the IntraFish booth.
The pens’ circumference is 240 meters. Huon is not actually upping the stocking density of the cages but is banking on lower densities with the new structures.
“The more room, the happier the fish,” McKibben said. “It also allows us to move further offshore.”
In addition, the pens are sturdier, sorting the issue of seals, Nolan added, describing the cages as “fortress pens.”
The pens were all created in-house, they said. “Innovation is one pillar of Huon,” McKibben said.
Huon Aquaculture currently produces around 21,000 metric tons of salmon annually.
“We plan to expand but the plan is to grow with the market,” Nolan told IntraFish.
The domestic Australian market is still the most important one for the company, “but we’re seeing potential in China,” he said.
Huon is currently trying to push its brand, especially in the Chinese and Asian markets, McKibben said.
“We distinguish ourselves through our location [Tasmania],” she said, and Nolan added also through the general quality of the fish and “the way we harvest.”
The opening of the new processing plant in summer this year is also opening up further opportunities to get “extremely fresh” salmon to the market.
“That’s a huge value point to our customers,” McKibben said.
--Elisabeth Fischer
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Thursday, Nov. 5, 9.22 a.m. CST
EU buyers vying for ASC tilapia
Grobest-owned tilapia farmer Hainan Sky-Blue was one of two first Chinese tilapia companies to nab ASC certification – and it’s already paying off, Yang Hua Ying, executive vice president at the company, told IntraFish.
“We started the assessment process earlier this year [March] and already then we’ve been approached by a lot of EU buyers,” he said through an interpreter.
Straight after when the certification was announced Tuesday, requests started coming in with buyers in Germany and The Netherlands showing interest.
“With this certification we can expand our customer base,” Yang said, adding it “provides a platform for us to enter new markets.”
These new markets will be in Europe especially. “Right now the EU market only accounts for a small percentage so we do hope it will increase our sales there,” he said.
The certified farm produces about 3,000 metric tons of tilapia. In total, Hainan Sky-Blue has an annual capacity of 22,000 metric tons with an annual turnover of CNY 200 million (around $30 million).
Hainan Sky-Blue plans to get certification for additional farms in the future.
The United States is the biggest market for the company, accounting for about 80 percent of total exports, followed by Canada.
Yang is also predicting a further shift toward the domestic Chinese market, which currently makes up about 10 percent of total sales.
“The future projection is 30 percent for the domestic market and 70 percent for exports,” he said.
--Elisabeth Fischer
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Thursday, Nov. 5, 7.00 a.m. CST
Eastern Fisheries looks to double Chinese lobster sales
Eastern Fisheries normally processes flatfish in China to export to the US and European market -- species such as yellowfin sole, rock sole, Alaskan plaice, Pacific cod -- but this year, it looked into importing into China under its China-based company Dalian Far Eastern Shores Seafood Co.
"This year we expanded to the Asian market with live and frozen Boston lobster," said Paulo Machado, who heads up international sales for Eastern Fisheries.
To keep a year-round supply, the company also sources Canadian lobster.
"The market is big in terms of volume. In Asia, they sell aggressively so the profit margins are small, but we make up for that with high volume," he told IntraFish. "We hope to double that [volume] in 2016."
In order to do that, Dalian Far Eastern plans to expand its sales territory.
It currently sells to cities nearby its plant, but hopes to spread farther to cities such as Shanghai, Beijing and Qingdao. These cities appeal to Dalian Far Eastern due to the high populations.
"We're testing the logistics now with the areas close by. [Importing and transporting lobster] the challenge is keeping the mortality rate low. But we're doing well with the mortality so we're thinking about expanding."
He added that Eastern Fisheries hired a long-time industry veteran just to look into supply and logistics.
This expansion holds great opportunities because the prices of lobster have jumped 300 percent in the past few years. Despite this price increase, the import duty and VAT rate is still an additional 28 percent cost.
"We also plan to bring other species into the Chinese market. We're doing lobster now, but hopefully, we can add scallops next year."
The company plans to bring scallops over from Japan, tapping into a 30 percent stake it has in a Japanese scallop trading company.
--Kim Tran
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Wednesday, Nov. 4, 5.10 p.m. CST
Big, fresh changes at Sanford
New Zealand fishing firm Sanford is embarking on a new customer-focused brand strategy, and just launched a new logo, highlighting the “pristine” origin of its seafood.
“We’re moving away from a focus on fishing and farming to a customer-focused strategy and the food we produce at Sanford,” Volker Kuntzsch, CEO at the firm, told IntraFish.
Traditionally, Sanford produced “commodities. We had inventories and people would just come and tell us what they need,” he said.
This is now changing, and the company is “busy creating two categories” and sales channels: fresh and frozen.
The latter will still include the group’s commodity business but fresh is something completely new.
Sanford is beefing up its sales department and is currently on the lookout for someone suitable for the newly created role of chief customer officer (CCO), Kuntzsch said.
Fresh is a completely new segment, and Sanford will initially target the domestic market, as well as the Australian and Australasian ones. “Europe would be fantastic too,” Kuntzsch said.
The decision to embark on this new strategy, with the tagline ‘Beautiful – New Zealand - Seafood,’ was made soon after Kuntzsch took over as CEO early last year.
Sanford’s vision entails that it only deals with sustainable resources, creates value with the resources it uses and is less commodity-focused, and to get the Sanford brand out there.
All this also played into the recent decision to pull out of the Pacific tuna business, Kuntzsch said.
“Tuna comes with quite a bit of noise, it just didn’t feel right with the uncertainty around it,” he told IntraFish.
--Elisabeth Fischer
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Wednesday, Nov. 4, 4.55 p.m. CST
China’s growing hunger for seafood
When Icelandic Group initially entered China it was mainly for processing, and to re-export to markets such as Japan and Korea and Europe.
But about five to six years ago, a shift started and domestic demand was picking up, Haiqing Zhang, general manager at Icelandic China, who’s been with the company for more than 10 years, told IntraFish.
“And today, about one third or one half of our total Asian turnover comes from the Chinese market,” he said.
The picture Zhang is painting for the future is one many are predicting: domestic demand will just continue to grow.
One challenge Icelandic is facing is to actually get foreign seafood on Chinese dinner plates.
“We need introduce foreign seafood to consumers and teach them how to cook it in a Chinese way,” Zhang said.
E-commerce is another area Icelandic will be looking at in the future. “We haven’t started experimenting with e-commerce yet; there’s still a logistical challenge we’re facing.”
--Elisabeth Fischer
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Wednesday, Nov. 4, 4.46 p.m. CST
Bakkafrost faces Chilean competition
Faroese salmon producer Bakkafrost has established a presence in China for quite some time now. It sells to wholesale importers, which go into retail.
But "we're seeing more fish come in from Chile," said Simun Jacobsen, senior sales manager at the company.
To address this, the company is looking to push marketing.
"We plan to promote our quality. We believe our quality is higher than Chilean salmon."
Features of the Bakkafrost salmon the company hopes to push includes no antibiotics, non-GMO feed, a natural diet rich in marine resources, omega-3 rich diet and more.
--Kim Tran
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Wednesday, Nov. 4, 4.32 p.m. CST
Pacific Seafood preps oysters for China market
Pacific Seafood started exporting its oysters, frozen and live, from the United States into the Chinese market this year and it's "going better than expected," said Brendan McKenna, export sales manager.
The oysters go to wholesale importers and ultimate head to foodservice in China.
Pacific Seafood's live Dungeness crab continues to be a success in China. Meanwhile, its frozen Dungeness crab is gaining in the Chinese market after overcoming an obstacle.
Consumers were struggling because they were trying to prepare whole cooked frozen crab like they would fresh crab.
Sales improved after "we educated them on better cooking techniques."
Another main push behind increased demand for frozen Dungeness crab was pricing.
"With live crab, the price fluctuates a lot." However, the Chinese market, particularly foodservice, benefitted from the more stable prices of frozen crab.
--Kim Tran
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Wednesday, Nov. 4, 4.10 p.m. CST
India aims high -- $6 billion high
India has high goals for its seafood export industry.
The Marine Products Export Development Authority (MPEDA) is targeting a $6 billion goal for its 2015-2016 exports, mainly shrimp. It adjusted its 2014-2015 goal from $5 billion to nearly $5.5 billion.
Currently its largest market is the United States, followed by the European Union, southeast Asia and Japan.
K.J. Antony, joint director at MPEDA, told IntraFish it expects growth to these countries and despite poor economies, the demand is still there.
It also exports indirectly to China through middleman countries, such as Thailand and Vietnam because China will only accept imports from these countries.
He added there are no current disease issues among its shrimp farmers.
--Kim Tran
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Wednesday, Nov. 4, 3.47 p.m. CST
Vietnamese firm to push convenience
Almost a decade old, Vietnamese importer and exporter CL Panga Fish Corp. is looking to break into a new market.
Its main export market is Europe and recently "started exporting to China, mainly butterfly pangasius," said Le Phuoc Thien, sales manager.
"Because of the population growth. Day by day, it's growing and the consumers are busier with their jobs and lazier with their food. They want convenient frozen food."
CL Panga plans to fill these demands. Right now they're exporting frozen pangasius to Chinese wholesale retailers.
As for projected export growth, "we expect to maybe double next year," he added.
--Kim Tran
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Wednesday, Nov. 4, 3.30 p.m. CST
P&P growing 20% year-on-year
Diederik Parlevliet, CEO of Dutch giant Parlevliet & Van der Plas, was coy about sharing figures when asked by this IntraFish reporter about current turnover targets.
Just after the company acquired shrimp processor Heiploeg less than two years ago, it targeted sales of €800 million annually.
Parlevliet didn’t say, if this figure has been reached. “What I can say is that we’re having annual growth of about 20 percent.”
Heiploeg and the recently acquired Lenger Seafoods are now making up the company’s shrimp division.
“It’s an important leg of the company now,” Parlevliet said. “It’s quite a big piece of our turnover now,” and doing well under the lead of CEO Dirk-Jan Parlevliet.
The group will keep looking at opportunities to expand further both in terms of costumers and potential acquisition.
“We’re always looking,” Parlevliet said.
--Elisabeth Fischer
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Wednesday, Nov. 4, 3.12 p.m. CST
Camanchaca eying fresh salmon, abalone sales to China
With frozen salmon already established in the Asian market, Chilean salmon company Camanchaca is looking to expand its fresh salmon offerings.
"Through New World Current, we're growing fresh salmon products in China's market. We ship it by air," Alvaro Cortese Fernandez, sales and export manager for Camanchaca, told IntraFish.
He added that, as the largest abalone farmer in Chile, Camanchaca is looking to push abalone into the Chinese market as well.
"We produce 250 [metric] tons per year and our main markets are Japan and the US. We're willing to open markets here in China to grow in this category."
He's currently promoting canned abalone and frozen, shell-on and off at the expo.
The abalone is frozen alive using nitrogen and all its shellfish carries Camanchaca's value of vertical integration.
"Controlling the whole supply chain, buyers like it because it's reliable and offers safe security."
--Kim Tran
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Wednesday, Nov. 4, 2.40 p.m. CST
Canada can’t keep up with Chinese demand
Nova Scotia-based Fisher King Seafoods is seeing continued regular growth in China.
"We've seen huge growth, especially in lobster, snow crab and Greenland halibut, in China," John Andrews, export sales manager at the firm, told IntraFish.
However, because of the fast growth, "there's more demand than supply," he said.
The Canadian government echoed similar sentiments, saying the growth has been fast.
"We see a growing middle class. Lobster is seen as a luxury food item and Canada has good volume. It's sustainable and safe fishery with high quality products," said Nadia Bouffard, general director of external relations and strategic policy for Canada's Department of Fisheries and Oceans (DFO).
However, she said the supply issue is not quite the problem that it seems because "we're exporting less volume but better quality to China."
She added the sustainable fisheries and aquaculture industries in Canada appeal to Chinese buyers who want a long-term and steady supply.
Like Sherry Lee, general manager of Blue Star Seafood, Bouffard said the logistics in China are difficult as is educating consumers on buying frozen seafood over fresh.
"Exporting and getting seafood there is a challenge, but so is internal distribution within China," Bouffard told IntraFish, adding frozen seafood travels well but there is "a negative connotation with frozen seafood.
“However we flash freeze seafood on the boat," which seals in its quality and can be better than fresh because fresh seafood travels poorly.
But technology in China is ahead of the curve, which offers an efficient e-commerce market, said Marco Valicenti, executive director, market access coordination and market access secretariat of Canada's Agriculture and Agri-Food Canada.
"It's a great platform for our seafood products," he told IntraFish.
--Kim Tran
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Wednesday, Nov. 4, 2.30 p.m. CST
Sustainable seafood’s big e-commerce chance
China’s e-commerce sector is still booming, and industry leaders are convinced sustainable seafood will be the next big thing on platforms such as Alibaba’s Tmall.
The proportion of nation-wide online seafood sales will exceed 10 percent this year, Ying Jung, seafood manager at Tmall, told delegates at the MSC Sustainability Forum on Wednesday.
Total online sales in 2015 are expected to reach more than CNY 3,700 billion (€531.5 billion/$583.9 billion) this year, with more than 70 percent of consumers now shopping on their phone rather than on a PC, he said.
Click here to read the full story.
--Elisabeth Fischer
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Wednesday, Nov. 4, 2.20 p.m. CST
PE investment gives growth boost to Singapore smoker
Singapore’s one and only smokehouse – Fassler -- got snapped up by a private equity fund last year, and has big ambitions to grow under the new ownership.
Credence Partners acquired a 100 percent stake in the company in 2014 “for full control,” its first acquisition in the food industry, Mellissa Chen, chief executive officer at Fassler, told IntraFish.
“What we saw was a lot of potential. It’s a well-known company in Singapore through its factory outlet it always ran,” she said.
Click here to read the full story.
--Elisabeth Fischer
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Wednesday, Nov. 4, 2.10 p.m. CST
A year of change
2015 has been a year of change for logistic equipment Promens: In May, RPC Group acquired the Icelandic firm, and it is now operating under RPC-Promens.
Asia is a completely different story altogether: With the new owners, Bob Adams took over as the region's managing director – and the company is now actually operating under Saeplast in the region.
"It's the original name for these products," Adams told IntraFish. "We strategically want to push the Saeplast brand a lot harder."
China makes up about 25 percent of the company's total turnover in Asia.
"But we do agree that the market in China is not growing as fast; it's stumped," he said.
The fish industry is experiencing a certain period of depression which comes with the general slow-down in the Chinese economy, which "is not as strong as it was.
"People are tightening their belts. But it will swing back."
While this slow-down has a "knock-on effect" on all industries, Saeplast is still getting a lot of interest for its products, with customers realizing food safety and security is increasingly a must.
Saeplast is also jumping on the e-commerce bandwagon and now offering smaller tubs and more customized products.
At the same time the company is increasingly pushing into other Asian markets, including Indonesia, Korea, Philippines and Vietnam.
--Elisabeth Fischer
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Wednesday, Nov. 4, 1.15 p.m. CST
Cooke sees potential in China, Thailand and India
Andrew Lively of Canadian farmed salmon company Cooke Aquaculture, said the company is branching out its other products in the Chinese market.
"We've had a lot of interest for North American products," he said, especially for products under the Cooke Seafood USA line, which includes Argentina king crab, shrimp and scallops.
He added that China is their primary focus at the show, but they are seeing interest from customers from other parts of Asia, such as Thailand and India.
"We're seeing that demand for higher value, better quality and a traceable product grow in China," Lively said. "There's a lot of opportunity to expand in this market."
--Kim Tran
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Wednesday, Nov. 4, 12.58 p.m. CST
Blue Star to grow 30% in 2016
Founded in 1995, Blue Star Seafood exports mainly to Europe and North and South America. The company's revenue is an estimated $189.3 million with a projected 2016 growth rate of 30 percent -- in the domestic market.
"In Europe, we're not sure how it will perform because the economy is not great," Sherry Lee, general manager of Blue Star, told IntraFish.
She added that despite this, Europe is still its main market because "they will pay for quality" while the United States still goes by quantity and lowest price.
--Kim Tran
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Wednesday, Nov. 4, 12.45 p.m. CST
Chinese wet markets, the frozen industry's headache
Five years ago, Blue Star Seafood started imports under a new frozen seafood brand, Blue Snow, for foodservice wholesale in China. The brand broke into the Chinese retail market with the opening of its new processing facility last year in December in the port of Ningbo.
"We're marketing in the Chinese market and are looking to build the Blue Snow brand with the new facility," said Sherry Lee, general manager.
The new 6,000 square-meter facility is in the free trade port area with a capacity of 30,000 metric tons of cold storage. The initial investment was more than CNY 200 million (€28.9 million/$31.6 million) and has in-house quality control.
The brand's main products are Argentinian red shrimp, Patagonian toothfish, black cod, cold water shrimp, Chilean salmon, shrimp meat, Chilean king crab, Canadian lobster, Greenland halibut, Ecuador shrimp, Alaska pollock and more.
Lee sees this as a big opportunity as "the middle class in China is increasing," but there are issues with changing consumer habits, which will take a lot of time.
"Most of the consumers who buy seafood in China get it fresh from wet markets. It will take time to introduce our frozen products. We need to educate households on how to cook frozen seafood. Inland China, the people there do not have much exposure to seafood. It will take more time in these areas to educate consumers. The retail market is not quite ready yet."
She told IntraFish that people traditionally buy seafood at wet markets, not supermarkets, where Blue Snow is sold. "This is our headache."
However, she said "step by step" the new generation of consumers born in the 80s and 90s are building families on different values.
"These generations are new parents and they don't have the time to go to wet markets and buy fresh seafood daily and part of it, they're too lazy too. They also feel it's too dirty, so they are more and more going to supermarkets." She estimated wet markets may phase out in five to 10 years.
With China's large and diverse geographic makeup, it highly varies from region to region the economies, eating habits and cooking techniques.
"We plan to use different marketing strategies and products to target each region differently."
Right now, 30 percent of Blue Snow goes to retail.
"In China, the logistics are poor so we have 13 offices across China."
The Blue Snow brand has offices in 13 Chinese cities, including Shanghai, Beijing, Shenzhen, Guangzhou, Shenyang, Dalian, Ji'nan, Qingdao, Yantai, Wuhan, Chongqing and Chengdu with plans to add more going forward.
--Kim Tran
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Wednesday, Nov. 4, 11.55 a.m. CST
A 'good wedding'
Roy Cunningham, managing director of MacDuff Shellfish, looked very happy this Wednesday morning.
And there's a good reason: Last Friday, the acquisition by Clearwater went through.
"I'll let Clearwater do the talking from now on," he told IntraFish. "The deal was only just closed on Friday and it's all still very new.
"But it's a very good union. We share similar values, a similar vision and similar products," he said. "It's a very good wedding."
--Elisabeth Fischer
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Wednesday, Nov. 4, 11.00 a.m. CST
Zoneco looks to overseas expansion
Chinese shellfish giant Zoneco will be looking at further acquisition opportunities overseas, Hougang Wu, chairman at the firm, told IntraFish.
"It's an ever-lasting process for any company," he said through an interpreter.
One necessity, he said, is that growth comes with sustainable projects. "The markets are open, the economy is open and information is travelling quickly so being sustainable is absolutely needed," he said.
Any deals would be made to secure further "offshore supplies," Wu said, adding Zoneco is also looking to increase trade relationships with overseas partners.
The company is looking at buying from Japan, Singapore, Italy, Hong Kong, Germany, France, the United States and Canada – with an increased focus on value-added products for the Chinese market, he said.
Wu stressed Zoneco will keep working on its sustainability goals, saying his aim is to launch certified products "effectively and efficiently in all our markets," he said.
He also said he will continue to bring the MSC's word out there "to make other companies within China aware and to make it the standard."
Zoneco is "well aware that the MSC is very powerful in offshore markets" and somewhat lagging behind in China.
But China's "seafood power" is so big that even "that small percentage that is buying MSC products is extremely powerful," Wu said.
"We want to grow with this," he told IntraFish.
--Elisabeth Fischer
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Tuesday, Nov. 3, 3.30 p.m. CST
First Chinese tilapia farms scoop ASC certification
Another milestone for Chinese seafood sustainability was announced this afternoon in Qingdao, with the first two Chinese tilapia farms achieving the ASC stamp: Hainan Xiangtai and Hainan Sky-Blue.
Chris Ninnes, CEO of ASC, described the certification as a "truly important tipping point for the ASC in terms of our expectations, our hopes and aspirations of truly becoming a global partner in helping to improve the sustainability of aquaculture around the world."
He described the certification process as a "long process" which was achieved together with CAPPMA and WWF. The work started in August 2012, he said.
Yang Huaying, vice director of Hainan Sky-Blue Ocean Foods, described as the "start of a long journey."
--Elisabeth Fischer
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Tuesday, Nov. 3, 2.45 p.m. CST
First Chinese longline tuna fishery nabs MSC stamp
Liangcheng Overseas Fishery has become the first Chinese albacore tuna fishery to nab MSC certification, it was announced at a press conference this afternoon.
Founded in September 2002, the company operates 65 tuna longline vessels in the Pacific Ocean, catching bigeye, yellowing and albacore tuna, as well as swordfish.
The company has its main markets in the United States, Japan, Europe and China.
The certified fishery is located in the Cooke Islands.
"After two years and six months going through this process, finally in June this year we achieved MSC certification," said Samuel Zhou, president of Liancheng.
To reach certification, the company installed new management systems for the fleet and its crew, vessel monitoring systems (VMS), and made major steps in terms of scientific research and catching techniques.
"In the future, we will develop and promote our brand with the MSC certification," Zhou said. "We also hope that more Chinese companies will undergo MSC assessment process in order to protect our marine resources."
The process, however, doesn't stop there, he said, adding Liancheng will continue to explore innovations and "take it upon ourselves to promote sustainable fishing measures."
"We will continue our work and will use this certification as a launch-pad for a sustainable future," he said.
Eric Barratt, board member of the MSC, congratulated the company, saying "I welcome you to this journey. It’s a journey that never ends. You have to keep going."
Barratt called Zhou, as well as Zoneco's Wi Hougang and Haikui Aquatic Products Group Chairman Chen Zhenkui, which is currently under assessment, as the "three leaders in China."
"Next year we expect to see 10 leaders on the stage," Barratt said.
--Elisabeth Fischer
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Tuesday, Nov. 3, 2.15 p.m. CST
Asian buyers' biggest challenge: Finding 'sustainable' suppliers
There are several challenges facing sustainability-conscious buyers in Asia, delegates at this morning's sustainability forum heard.
But perhaps the biggest is to actually find "reliable and credible suppliers," Zhang Yi, sustainability manager at Shangri-La Hotels, told the audience.
"One of our challenges is how do we require reliable information on credible suppliers? We haven’t been able to find one," she said.
Japanese retail giant AEON is facing the same issue, said Yumie Kawashima, CRS manager at the supermarket chain. "We want to expand our sustainable range and work with Japanese suppliers together to reach that goal."
Public awareness and public support for MSC and Aquaculture Stewardship Council (ASC) labels is also still very low, Yi said.
"In general, people are more concerned about food safety in China but not so much about the food source or the sustainability of it," she said.
"We are also in dire need of government support" to push the sustainability agenda forward, she said.
--Elisabeth Fischer
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Tuesday, Nov. 3, 11.40 a.m. CST
Russia plans national eco stamp
A national certification system is in the works in Russia, Petr Savchuk of the country's Federal Fishery Agency, told delegates Tuesday morning.
"Sustainability is the issue number one for the agency," he said.
Introducing a national scheme will help achieving this goal, he said.
The system will focus on "ecology not marketing," will involve users across all areas of Russia's industry, including big-scale and small-scale fishermen, processors and other suppliers.
Savchuk hopes it will be shared by a wide range of participants.
He also encouraged knowledge sharing with other countries working on similar systems.
--Elisabeth Fischer
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Tuesday, Nov. 3, 11.30 a.m. CST
Aquaculture production still lagging behind wild catches
Petr Savchuk, deputy head of Russia's Federal Fishery Agency, shared some interesting stats during his address this morning, showcasing the ratio of aquaculture and wild catch production across the globe.
According to his figures, around 44 percent of the global output comes from aquaculture today, compared to 56 percent coming from wild harvest.
However, from country to country the figures vary widely.
In Russia, for instance, only 4 percent comes from aquaculture production. The United States is also in the lower level, with only 7 percent of total fish and seafood produced coming from farming.
In Japan, aquaculture accounts for 14 percent. In Thailand and Norway, 36 percent of the total production is farmed fish.
The leader is clearly China, with 76 percent of total production coming from aquaculture, the figures showed.
Savchuk was, however, also clear that this relation will change in the future.
Russia will also push ahead with its "sustainable" aquaculture development, he said.
But the country is also expected to up its wild catches by 18 percent from currently 4.2 million metric tons to about 5 million metric tons in 2017 and 2018, he said.
"Scientists recommended to increase catches in a sustainable manner," he said. At the same time, the industry has learned to "maximize the value from the existing quota."
--Elisabeth Fischer
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Tuesday, Nov. 3, 11.15 a.m. CST
US progress on tackling IUU
Abalone, Atlantic cod, blue crab, mahi mahi, grouper, king crab, Pacific cod, red snapper, sea cucumber, sharks, shrimp, swordfish and tuna will be the first species to undergo assessment under the traceability program as part of the US Presidential Taskforce in the fight against IUU, Steven Wilson, deputy director at Office of International Affairs and Seafood Inspection at NOAA, said.
The list was published on Friday, he said. The plan is to publish a traceability rule by August 2016 to come into force by September 2016.
“If you know the US government, this is very fast,” Wilson said of the progress made.
Beyond that, a further expansion of the program will be up for discussion, he said.
--Elisabeth Fischer
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Tuesday, Nov. 3, 10.35 a.m. CST
China -- a seafood sector in transition
The Republic of China's seafood industry is "under transition" and in the process of upgrading, Cui He, executive vice president at China Aquatic Products Processing Marketing Alliance (CAPPMA), told the audience at the Sustainable Seafood Forum Tuesday morning.
While it is still the biggest seafood producing, trading and consumption country, the slow-down in the domestic economy and international financial crises are making a change in the sector an "inevitable choice," he said.
The country's wild fishery has seen "zero growth," he said and a saturation of the aquaculture sector is on the horizon.
In addition, there has been a considerable slow-down in terms of processing and this year seafood trade showed a decrease "for the first time in 15 years."
To generate more value going forward, the development will have to be based on quality and sustainability, he urged.
This change has already kick-started both in terms of wild fishing, with the government destroying "tens of thousands" of illegal fishing vessels in 2014, and enforcing a summer fishing moratorium in the China Yellow Sea, East China Sea, and South China Sea.
Aquaculture is also moving from traditional extensive models to "ecologically friendly models," He said. "It's an inevitable choice. Weak exporting and stable domestic marketing requires aquaculture to turn to ecology, high quality and sustainability."
China's reprocessing sector is perhaps undergoing the biggest change, he said.
This year alone, more than 500 processing factories were closed for not complying with sewage discharge regulations. In addition, more than 100 factories "disappeared" as a result of mergers and restructures, he said.
Nevertheless, overcapacity is still crippling the sector and factories are facing issues including increasing labor cost, and processing shifted to "cheaper labor countries," he said.
To move forward the sector will have to focus on targeting the domestic market, based on quality.
With weaker demand in main markets such as the European Union, the United States and Japan and other emerging markets such as Russia, other ASEAN countries being "unpredictable" and "limited" in Africa and South America, this is the only way forward, he said.
--Elisabeth Fischer
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Tuesday, Nov. 3, 9.00 a.m. CST
MSC, Zoneco call on China's fishing industry to commit to sustainability
The Marine Stewardship Council (MSC), Chinese giant Zoneco and the China Aquatic Products Processing Marketing Alliance (CAPPMA) on Monday signed a statement demonstrating their commitment to sustainable seafood production.
During a field trip to Zoneco’s facilities on Zhangzidao Island in Dalian, China, the organizations said they would commit to complying with MSC principles and standards for sustainable fishing practices, maintain the healthy resource and conserve biodiversity ensure sustainable seafood supply for the world’s future.
Click here to read the full story.
--Elisabeth Fischer
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Tuesday, Nov. 3, 8.00 a.m. CST
Qingdao -- big, bigger, the biggest?
It's this time of the year again -- time for Asia's biggest and most important seafood gathering, the China Seafood and Fisheries Expo in Qingdao.
Seafood buyers and sellers from more than 100 countries will participate in the 20th annual show, held from Nov. 4 to 6 at the new Qingdao International Expo Center.
It has grown to become the second largest seafood show in the world after Brussels, and will feature more than 30,000 square meters of exhibit space in eight separate halls.
More than 1,400 companies will be exhibiting their products to an estimated 25,000 visitors.
Things already kick off Tuesday with a pre-show event organized by the Marine Stewardship Council (MSC) and the China Aquatic Products Processing and Marketing Alliance (CAPPMA).
The forum will look at how global efforts to improve seafood sustainability and traceability across the supply chain can benefit businesses, consumers and the environment.
A number of experts from China, Russia, Japan, the United States, Australia and the European Union are expected to attend.
IntraFish will be on the ground, so keep checking back here to get all the news from this year's events.
Click here to catch up on our coverage from the 2014 show.
--Elisabeth Fischer
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