GLOBEFISH - Chinese Fish Price Report - 02/2021

GLOBEFISH

Chinese Fish Price Report Issue 2/2021

Chinese Fish Price Report

Issue 2/2021

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

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Chinese Fish Price Report

Issue 2/2021

Contents Policy updates -

China unveiled ‘No. 1 central document’ for 2021 MARA: Ensure the sufficient supply of aquatic products MARA: Quality improvement and efficiency of fisheries and aquaculture industry National Health Commission issued guidance on monitoring of SARS-CoV-2 in wet markets National Bureau of Statistics of China (NBSC): China’s aquatic products production totalled 65.45 million tonnes in 2020

04 04 04 04 05

Industry news - South China Sea biological germplasm resources bank programme initiated - “Yellow Sea Cold Water No. 1” starts construction, with capacity for 1 million fish - China and New Zealand have agreed to upgrade their free trade agreement (FTA)

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

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

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- 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

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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

All reports are based upon news occuring until March 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.

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Chinese Fish Price Report

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Policy updates China unveiled ‘No. 1 central document’ for 2021 On 21 February, the State Council issued the No. 1 central document, stressing efforts to comprehensively push forward rural vitalization and accelerate the modernization of the agricultural industry and rural areas. It is required that poverty alleviation be effectively connected with rural revitalization.

In addition to the general requirements of the agriculture system as a whole, the document has laid down specific guidance for the fisheries and aquaculture industry: 1. Speeding up the construction of a modern aquaculture system and promoting green and healthy practices; 2. Improving the construction and management reform of the ports; 3. Enhancing the conservation of aquatic biological resources and promoting fishery law enforcement in the Yangtze River. To guarantee the implementation of the ten-year fishing ban.

MARA: Ensure the sufficient supply of aquatic products On 14 January 2021, the Ministry of Agriculture and Rural Affairs (MARA) issued a Notice on ensuring the supply of agricultural products in medium/high-risk areas to meet the needs of urban and rural residents.

Grains, oils, vegetables, meat, eggs, milk, and aquatic products are considered as daily necessities during the prevention and control period of the pandemic. The industry associations, leading enterprises, and farmer cooperatives in low-risk areas should be more actively organized to ensure the supply and circulation of products.

MARA: Quality improvement and efficiency of fisheries and aquaculture industry On 25 February 2021, MARA announced its key tasks in 2021. The requirements for fisheries and aquaculture development is to improve quality and efficiency, as well as to: 1. Establish demonstration areas for healthy and ecological aquaculture and develop ecological farming in circulating water, deep seas and large water surfaces as well as saline aquaculture; 2. Develop and formulate integrated rice-fish farming; 3. Improve port construction and management reform, and build a port economic zone; 4. Conduct stock assessment and formulate governance strategies scientifically, and steadily implement a fishing quota system in order to build marine pastures and carry out fisheries enhancement and restoration.

5. Encourage the development of processing and recreational fisheries, and develop distant fishing in an orderly manner.

National Health Commission issued guidance on monitoring of SARS-CoV-2 in wet markets On 23 February 2021, the National Health Commission issued guidance on monitoring the virus, and recommended that wet markets should focus on monitoring stalls that operate fresh, chilled, frozen, imported products, and live animals. In addition, special attention should be paid to wet markets that are poorly ventilated and semi-enclosed. The establishment of monitoring points should be decided upon according to local status.

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National Bureau of Statistics of China (NBSC): China’s aquatic products production totalled 65.45 million tonnes in 2020 On 28 February 2021, NBSC announced China’s GDP reached 101.6 trillion yuan in 2020, up by 2.3% compared to 2019 and China was the only major economy in the world to achieve positive economic growth.

Specifically, the annual production quantity of aquatic products reached 65.45 million tonnes, with an increase of 1 percent compared with the previous year. Of the total amount, aquaculture contributed 52.15 million tonnes, an increase of 3 percent. Tonnage from capture was 13.3 million, a decrease of 5 percent.

©unsplash/ chengwei

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©unsplash/patwhelen

Chinese Fish Price Report

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Industry news South China Sea biological germplasm resources bank programme initiated On 2 March 2021, the South China Sea Biodiversity, Biological Germplasm Resource Bank and Information Database Construction Project was officially launched. The project has a total investment of CNY 22 million and will be completed in 2023. It aims to obtain basic data on marine biological resources and provide the necessary scientific basis for the protection, development and utilization of biological resources in the South China Sea. “Yellow Sea Cold Water No. 1” starts construction, with capacity for 1 million fish On 24 February 2021, Qingdao Municipal Marine Development Bureau, Qingdao West Coast New Area Management Committee, and Shandong Marine Group Co., Ltd. signed a cooperation agreement to jointly build the Qingdao National Deep-Sea Green Aquaculture Pilot Zone.

According to the agreement, Shandong Marine Group Co., Ltd. and Qingdao government will cooperate in the exploration and development of ocean cold chains, ocean pastures, and deep-sea aquaculture technology.

Qingdao Municipal Ocean Development Bureau and West Coast New District Management Committee will provide institutional and policy support.

At present, the “Deep Blue No. 1” project has raised 200 000 salmon, and the “Yellow Sea Cold Water No.1” project with a capacity of 1 million fish, has started construction.

China and New Zealand have agreed to upgrade their free trade agreement (FTA) On 26 January 2021, an upgrade agreement of the FTA was signed by China and New Zealand. The simplified customs clearance procedures and improved imports and exports transparency will benefit New Zealand aquatic food exporters as accessing the China market will be further eased. It is mentioned that 98 percent of New Zealand goods will enjoy preference from China. New Zealand’s perishable foods, especially seafood and dairy products, will have customs clearance time reduced to less than 6 hours. New Zealand exporters can designate focal points to liaise with Chinese ports to resolve any customs clearance issues.

©unsplash/Alex Duffy

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Tilapia Oreochromis spp.

© Fish Biology Laboratory Xiamen University

The price of tilapia in some producing areas has increased compared with the price before the Spring Festival.

The inventories of large size tilapia are quite low, the price of fish sized above 0.5 kg per piece was about CNY 8-8.4 per kg in March, and the purchase price of the factory and the first-hand price of tilapia have both increased by CNY 0.2 per kg. The price of fish size over 0.5 kg per piece in Guangdong has been stable at CNY 8.4 /kg.

The large-sized fish are in short supply in early March and their sizes are mainly 0.8-1 kg per piece. In addition, the market trend of tilapia tends to stabilize, as some processing plants have not yet resumed operation. The demand for fresh tilapia is relatively stable.

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Chinese Fish Price Report

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Grass carp Ctenopharyngodon idellus

© Fish Biology Laboratory Xiamen University

Traditionally, the price of grass carp will decline slightly after the Spring Festival along with decreased consumer demand. However, this year, the wholesale price of grass carp in the Wuhan market has reached the highest level of the past six years. The wholesale price of grass carp above 1 kg per piece reached CNY 15-16 per kg.

Industry insiders said the main reasons are: firstly, less farming activities this year as fish prices remain low over the past five years; secondly, the production of grass carp dropped by 10-20 percent last year due to climate reasons; finally, farmers have already sold their stocks when the price level was high before the Spring Festival.

All the above factors combined contributed to the shortage and resulted in a price increase.

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Largemouth bass Micropterus salmoniodes

© Fish Biology Laboratory Xiamen University

Prices of Largemouth Bass rose sharply in early March as large size inventories were quite restricted. The peak was CNY 9 per kg higher than before the Spring Festival. Farmers are also optimistic about the future market and are holding inventories. Distributors have to raise the purchasing price many times in order to attract farmers, which also increases the price.

With the acceleration of circulation, the stock of large size Largemouth Bass has decreased, and most of the fish inventories have not reached the market specifications. The supply will continue to exceed demand and the market outlook is promising for farmers.

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Chinese snakehead Channa spp.

© Fish Biology Laboratory Xiamen University

The price of Chinese snakehead has been increasing since the beginning of spring, and has risen constantly from February to March. At present, the price of Chinese snakehead is over CNY 1 per kg per in Guangdong is about CNY 20 per kg.

Industry insiders said that future prices would rise, as the stock is quite limited this year. Sellers breach the contract from occasionally because expected prices of Chinese snakehead also increased. In addition, individual feed factories in the Pearl River Delta have raised the feed price for snakehead by up to CNY 500 per tonne since March.

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Abalone Haliotis Linnaeus

© Weiwei You, Xiamen University

Due to the weak market in 2020, farmers was reluctant to sell and kept their inventories in anticipation of recovered prices. A large number of farmers are expected to take advantage of holiday consumption during the Spring Festival to repay the loan. However, this led to market oversupply and the price decreased. Although the eased pandemic and Spring Festival did bring some benefits to the market, the abalone price failed to rise significantly in the first quarter of 2021, and it is expected to remain low in the coming months.

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Hybrid grouper Epinephelusfuscoguttatus & Epinepheluslanceolatus hybrid

© Fish Biology Laboratory Xiamen University

At the end of January 2021, due to low stocks, shortage of supplies, and cold weather, the price increased significantly. As the Spring Festival approached, prices continued to rise. During the Spring Festival, the price kept rising, with the highest price reaching CNY 100 per kg. After the Spring Festival, the market adjusted and prices remained high for nearly two weeks. In early March, the price of grouper rose again to CNY 104 per kg due to the supply shortage,and exceeded the highest point during the Spring Festival.

The increased price benefited very few farmers because at this stage farmers either have no fish or under sized ones. It is expected that the next batch of fish will soon be on sale, and the price of fish may be adjusted.

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Chinese Fish Price Report

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Whiteleg shrimp Penaeus vannamei

From January 2021, the stock decreased, coupled with the price increase caused by holiday consumption. The monthly average price has been CNY 60 per kg.

After the Spring Festival, the price of white shrimp remained stable for nearly two weeks, and began to decline in March, mainly because the consumption became weak.

So far, shrimp prices steadily declined with slight adjustment, while domestic stocks bottomed out again. It is expected that prices will rise steadily.

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Chinese Fish Price Report

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Prussian carp Carassius gibelio

The Prussian carp market began to rebound as the supply of large fish decreased after January. The price went up due to increased consumption during the Spring Festival, and then gradually went flat after the holiday. It was relatively stable in March.

It is forecasted that the Prussian carp market is still bullish. Rising feed prices and disease in the early spring have raised the cost. Combined with the scarcity of large Prussian carp, prices will likely continue to increase before more supply in the second half of the year.

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Turbot Scophthalmus maximus

© Fish Biology Laboratory Xiamen University

In January, the supply and demand of turbot were balanced, and the price was stable. In February, as the winter vacation, Spring Festival and other consumption tides approached, the price reached a peak at CNY 52 per kg.

After the holiday, consumer demand decreased and prices fell in line with the normal easing trend.

Early March is the seedling season for turbot and the normal breeding factory had already stocked, so storage is limited. The increase of feed price led to the increase of breeding cost, making farmers reluctant to sell. It is expected that the price will rise again

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Mandarin fish Siniperca chuatsi

© Fish Biology Laboratory Xiamen University

Since January 2021, the price of mandarin fish stopped falling and rebounded, with an increase of CNY 18 per kg. At the beginning of March, the price of fish kept fluctuating around CNY 73 per kg. The inventory decline in Guangdong, coupled with the fact that Hubei and Jiangsu almost ended supply led to the market shortage.

In early March, the stock continued to decline. Large mandarin fish above 2.4 kg is particularly in short supply.

The price is expected to rise and is likely to break records in 2021.

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THE CHINESE FISH PRICE REPORT

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