Fengyuan Seafood Skin Packaging Machine takes you to see the opportunities and challenges of China's seafood industry 2019


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Fengyuan Seafood Skin Packaging Machine takes you to see the opportunities and challenges of China's seafood industry 2019

  • Time of issue:2019-04-13 17:16
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(Summary description)Fengyuan Seafood Skin Packaging Machine takes you to see the opportunities and challenges of China's seafood industry 2019

Fengyuan Seafood Skin Packaging Machine takes you to see the opportunities and challenges of China's seafood industry 2019

(Summary description)Fengyuan Seafood Skin Packaging Machine takes you to see the opportunities and challenges of China's seafood industry 2019


Fengyuan Seafood Skin Packaging Machine takes you to see the opportunities and challenges of China's seafood industry 2019

China Seafood Enterprise E-commerce Alliance Source: Sohu News


The rapid growth of China's seafood consumer market has made it a huge market driven by continuous consumption and the development of diversified industries. However, the developing industries are facing changes, and Chinese seafood companies are also facing challenges.

China is the most populous country in the world, and has a special seafood complex since ancient times. Since the reform and opening up, especially in the past 20 years, China's marine consumer market has grown rapidly, becoming a huge market driven by consumption and diversified industrial development. However, the developing industries are facing changes, and Chinese seafood companies are also facing challenges. This article was written by Mark Godfrey, special editor of "Marine Resources", and lists the top ten problems and opportunities facing China's seafood industry in 2019.



High debt problems may be concentrated in 2019

In 2019, China's seafood private enterprises, and the majority of SMEs, are facing serious debt problems.

Since China cracked down on “shadow banking” and forced it to withdraw, the capital chain of private enterprises has generally been tense. Shadow Bank is a high-interest, informal underground lender, but it is the only source of financing for high-risk companies in China. Many businesses depend on borrowing to survive.



trade war

In the Sino-US trade war, seafood trade is part of the seafood trade, but there are still many uncertain factors as to whether the tariffs will be cancelled. China is offsetting U.S. seafood supplies by increasing shipping and air freight to other countries. This may mean that China has invested a lot of energy in free trade agreements to establish new supply partnerships, thereby reducing its dependence on any one partner. It is worth noting how China will strike a balance between the need to soothe Washington and the need to reach a trade agreement.


Consumption power: Can the consumption of the Chinese people keep up with GDP?


According to The Economist think tank, China's economic growth will slow to 6.3% in 2019 and will slow further in 2020. With the expansion of the economic scale base and the maturity of the economic model, this is an inevitable trend, but what is the impact on income and consumption growth?

In recent years, China's wage growth has outpaced GDP growth, which has been the driving force behind retail and seafood sales. From 2011 to 2018, the average wage of Chinese people doubled. For example, China's average industrial wage is more than four times that of India, which has greatly increased the demand for imported seafood, making China one of the world's largest seafood importers. At the same time, the number of Chinese outbound tourists is also increasing year by year, and the consumption of these tourists is also increasing year by year. In addition, since 2016, as China's population ages, China's workforce has stabilized, supporting wage growth.



China's Global Fisheries Strategy

China's investment in global infrastructure, especially the implementation of the Belt and Road Initiative, is increasing, creating many opportunities for Chinese agricultural and fishery investors.

These opportunities come from China's Belt and Road Initiative, which sets the policy framework for Chinese construction companies to build ports, power plants, railways and highways in Asia and Africa, many of which are state-owned enterprises. With the support of the Bank of China. This creates huge long-term opportunities for Chinese food producers, traders and retailers.

In addition to infrastructure projects such as factories and railways, Chinese companies also participate in infrastructure projects, including fishery breeding bases and transportation ports. Earlier this year, China's top fishery official confirmed that China will seek overseas aquaculture cooperation instead of increasing its seafood exports.



Marine aquaculture

China's policy increases urgency to move more aquaculture overseas

The latest sign of this trend is that from the beginning of March 2019, the Tai Lake affected by the pressure will be closed for 6 months, and the Yangtze River has implemented a similar ban.

According to data from the Chinese Ministry of Agriculture, 70% of the fish ponds in freshwater aquaculture in 2015 were extremely low-tech and had no proportional impact on the environment and productivity. A number of announcements on marine aquaculture are expected in 2019.

How will this trend affect China's fishery economy? A typical example is Rongcheng City, Shandong Province, where seafood is the main source. Aquaculture increased by only 0.6% and 1.3% in 2018, but benefited from a 6.7% increase in total offshore aquaculture production (up to 1.14 million tons). 28 ocean-going fishing boats brought 75% of the 300,000 tons of catch back to Rongcheng, and nearly 600,000 tourists fished in 16 recreational fisheries and 14 "provincial fisheries".


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How far will China go in the new international fishery enforcement?

In recent years, international remote monitoring technology for illegal, unreported and unregulated fishing has become increasingly advanced. In order to ensure the orderly development of China's ocean-going tuna fleet, the Ministry of Agriculture issued the "Recommendations on Strict Compliance with the Global Tuna Agreement". The Chinese government has issued a notice to tuna fishing companies operating in international waters, warning companies that have not registered with the authorities (all offshore fishing companies must be registered) to cease operations immediately, or they will face fines.

Tuna fishing is just one example. China will be in line with international fishery regulations in more areas of offshore fishing.



China's Bassfish Consumption or Global Bassfish Supply Pattern

Just as China's crackdown on smuggling will harm some Southeast Asian economies, including Vietnam, the US-China trade war has created uncertainty for tilapia producers. Industry insiders say companies that don't have enough flexibility to find other markets focus on mariculture and use half of the pond's space for fish farming.

Chinese plantation of Ba Sa has stabilized supply and raised concerns over price wars among Vietnamese producers, who may cut prices to maintain market share. China is already second only to Vietnam's high-cost producer of Bassfish

Labor costs in Guangdong are almost double the Vietnamese average. Guangdong is an important aquaculture and aquatic product processing area in China. This could mean that Chinese companies produce barbarians in other Southeast Asian countries. To this end, Indonesia, Laos, and Cambodia have increased production and benefited from trade with Chinese bassfish. This could lead to a price war that is good for Chinese consumers but not good for Vietnamese and Chinese breeders.



Chinese researchers say they will use genetic technology to solve parental shrimp problems.

In recent years, Penaeus vannamei has been a favorite food ingredient for Chinese consumers, and China itself is a large country producing white shrimp. But many consumers are unaware that Chinese white shrimp farmed shrimp fry are totally dependent on imports. This is why China's white shrimp production fluctuates greatly under conditions of weather and pests.

A leading scientific research institution in China said that the breakthrough of Penaeus vannamei gene sequencing in 2018 may help China reduce its dependence on imported seedlings and fight the diseases faced by local shrimp farmers.



Do China and Russia have competitors in overseas processing markets?

Chinese media recently reported that Russia is building 10 new processing vessels and 18 new land-based processing plants. Russia hopes to ship 225,000 tons of fillets to Brazil annually by 2025. Brazil is a developing country with a large number of cheap protein consumers and has long been a major buyer of Chinese tilapia. This obviously means that if Russia seriously considers entering the Brazilian market, Chinese processors will face challenges.


But Russia's plan seems more in line with that of China's major agricultural supplier. China's major agricultural product supplier imports large quantities of seafood to Russia from the Far East, which borders China. In addition, Russia also supplies high-end products such as king crabs in the Chinese domestic market. In 2018, live king crabs from Russia have been able to dock directly in Shanghai to supply the mainland market.



Does "redeployment" and closure of facilities have an impact on aquaculture supply?

In China, prices for many common species, such as carp and carp, have been low because agricultural companies have long been blind to environmental regulations, allowing large numbers of undocumented farmers to supply. But now, as China struggles to control long-term pollution, these regulations are being implemented. But this positive development is having a chilling effect on aquaculture producers, forcing the industry to integrate on a large scale.


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