Expanding Markets

Expanding Markets

By Rannvá Danielsen

Seafood exports from the UK to Asia have grown from less than £100 million in 2011 to more than £300 million in 2018.

Cutting Edge explores how UK seafood businesses can use international seafood expos to tap in to growing seafood markets and the barriers they might face.

The seafood expos are vital for growing your market

The words of David Markham, Managing Director of The Blue Sea Food Company in Devon.

UK seafood exports to China have doubled in value since 2015, with China now the number one destination for UK crab, reaching £33 million last year. And crab happens to be The Blue Sea Food Company’s speciality.

“We are lucky. Crab is particularly well liked, especially in China,” David says, confirming the story that export data is telling us about China’s appetite for UK crab.

The Blue Seafood Company sells live and frozen whole crab, as well as crab meat. Their live crab mostly goes to China, with frozen crab going as far as Japan, Taiwan, Hong Kong and New Zealand. Our exports to Asia have grown faster in both volume and price than our UK market. “

There is a massive demand for seafood in Asia, partly driven by population growth. The UN predicts that the world’s population will reach 8.5 billion people by 2030. China, with its population of 1.4 billion – and growing by 5 million a year – accounts for a large chunk of that.

With this growing population and an evident taste for species that UK processors can offer, David believes that the Chinese market presents an opportunity for the UK seafood industry.

The main barrier is fear.

The Blue Sea Food Company has been selling crab to Asia for a few years now. David used to live in China, so that felt like a natural place to start. “About 10 years ago, I went back to Asia to build a customer base by going to seafood shows,” he says. The main barrier is fear.

The idea of expanding beyond Europe and trying to build a customer base in far-away Asian markets might sound daunting to people who don’t have experience of living in Asia. David insists any reservations are not necessary – operating in Asia is just like operating anywhere else, including the UK.

In his experience, Asian customers are young, intelligent, IT savvy and speak excellent English, and he’s found that language barriers are more of an issue in some European countries than they are in most Asian countries. There are of course challenges, particularly with distance and payments, but ultimately the precautions you have to take are the same as in any market.

“You have to find the right businesses, so you don’t get caught out, but those same rules apply in the UK.”

Foreign currency fluctuations can be a concern and David concedes that China can be a fickle market and politics play a huge role – the trade tensions between China and the US come to mind. “But the main barriers for exporting to Asian countries are the fear factors, you know, issues around going out and finding customers,” he stresses.

Getting past the fear factor is well worth it. As well as an opportunity to increase sales, businesses can also expect to get better prices for their products. “Asia normally has better prices than Europe,” David says.

"For us, China is the most important show."

The international seafood expositions are where David makes his sales (see page 10). Attending international seafood expos is, David believes, the best way for UK businesses to connect with foreign buyers and tap into that growing market for UK seafood.

For businesses looking to take the first steps towards exporting to new markets, Seafish can provide a route into expos in China and Japan. Phillip Quirie, who helps organise the Seafish pavilions at these shows, emphasises the support that Seafish can offer.

With many seafood expos to choose from if you are looking to expand your market, David recommends finding the most appropriate show for you and then spending some money on a stand if you can. “If you can’t go yourself, there are many companies that can go on your behalf and represent you,” David explains.

“The greatest barriers stopping firms from exhibiting are often the simplest things,” says Phillip. “We can take a lot of hassle out of the process, from arranging an invitation from the Chinese minister for agriculture for visa purposes to dealing with the logistics of getting exhibitors from downtown Qingdao to the expo centre about 50km away.”

While Phillip is on hand to provide support in dealing with any practicalities that might arise during the expo, there are benefits of planning ahead.

“It is good to do your preparation,” Phillip emphasises. “We organise translators to facilitate discussions, but you can save a lot of effort just by having the catalogue of species you can offer translated in advance.”

Attending is an ongoing investment.

“I have been going to the China expo for many years now,” reflects David. “Back when we started, we were the only English company at the show.”

More and more businesses appear to have opened their eyes to the opportunities offered by Asian markets. Phillip says participation by UK companies is growing rapidly.

“There has been quite significant growth in the number of UK businesses attending. We’re also seeing greater representation from the pelagic side alongside shellfish, which is welcome as there is a demand for mackerel in China, for example.”

With a culture, particularly in Japan, which considers that deals are best done face to face, investing the time to return year after year pays dividends. “For the companies who go out there, attending is an ongoing investment,” adds Phillip. “They do stress that the exponential growth comes from going back and re-meeting with contacts.”

Market export guides with intelligence on a variety of international markets are among the areas of support that Seafish can offer to exporting businesses looking to trade internationally.

“We want to support the seafood industry to trade internationally,” says Lynn Gilmore, head of International Trade & Regions at Seafish.

“Our presence at these important global events provides opportunities for businesses in the seafood supply chain to join us, investigate new markets and make new trading contacts. We would encourage anyone who is interested to get in touch and find out how they can get involved.”

The future

The global market might be characterised by uncertain times and changing political landscapes, but David sees time and confidence as the key ingredients for success.

Taking heed of David’s words may pay off. After all, billions of people around the globe are going for supper tonight, and they all need to get their food somewhere.

You don’t need any prior knowledge of the market. All you need is time and confidence

David Markham, managing director of The Blue Sea Food Company

Chinese demand is driving growth

Total worldwide exports of UK seafood have grown more than 50% in value in the last decade, exceeding £1.9 billion in 2018.

The increase in volume was less than 25%, but that is good news for the UK seafood industry – it means the average price of exports has gone up.

A big driver for this growth is the increased appetite for UK seafood in Asia.

China is responsible for a large part of that growth. Seafood exports to China alone were worth nearly £150 million last year.

South Korea, Taiwan, and Vietnam are also among the countries driving this growth.

Export data indicate that the Chinese and Vietnamese favour salmon, crabs, rock lobster and crawfish. South Koreans like molluscs while Taiwan buys mainly salmon.

Beyond Asia, Australia is increasingly sourcing fishmeals and fish flours from the UK. Export values to France have also increased quite dramatically in the last few years. France is by far the largest market for UK seafood, reaching £487 million and 80,000 tonnes in 2018.

T4 – Trade & Tariff Tool in Tableau

Seafish’s T4 gives easy access to trade and tariff data for the first time.

Containing trade data from 2010 on seafood for human consumption, as well as current tariffs, the user friendly tool is designed to give businesses the information they need to make informed business decisions.

Seafish Chief Economist Arina Motova, who developed the tool said:

Our main objective was to create a simple, visual tool that would save people time. From overviews of new markets to volume, value and tariffs on exporting specific species, the Trade and Tariff Tool provides detailed information in just a couple of clicks, leaving exporters able to focus on how to best use this data.

International Seafood Expos: Where sellers meet buyers

International seafood expos are generally organised around national pavilions, often featuring cookery demonstrations and product sampling, as well as individual booths for companies to showcase and sell their product. There are many seafood expos to choose from but three of the big ones are listed here.

China Fisheries & Seafood Expo

Taking place during the first week of November, the China Expo is the world’s largest attracting more than 1,500 exhibitors and 33,000 attendees from over 100 countries. Seafish has a UK seafood pavilion featuring a demonstration kitchen and chef. UK companies can network in an open-plan meeting area with translators provided and pay for individual exhibition booths to showcase their products.

Seafood Expo Global

Europe’s biggest seafood trade expo with more than 2,000 exhibiting companies and 29,000 buyers, sellers and seafood professionals from 89 countries attending in 2019. Held in Brussels in April/May, UK companies can access a meeting room – suitable for private meetings or hosting briefings – and open plan meeting space on Seafish’s stand.

Japan International Seafood & Technology Expo

Four expos in one: fishery, aquaculture, sushi, and seafood technology, it is usually held in August and attended by more than 30,000 people. Seafish and Seafood Scotland have a UK seafood pavilion including Seafood Scotland’s demonstration kitchen. UK companies can access a translator and conduct business in an open-plan area.

For more information, please contact lynn.gilmore@seafish.co.uk or phillip.quirie@seafish.co.uk