China buyers ‘lip service’ to sustainable seafood

Demand for sustainable seafood in mainland China remains minimal, while airlines are proving more receptive to sustainable product, according to a leading sustainability-focused seafood trader operating out of Hong Kong.

“I’ve actually given up there [mainland China]. They pay lip service to sustainability. Health and safety and as such established brands drive sales. … Not sustainability,” Chris Hanselman, CEO of Pacific Rich Resources, which imports high-end seafood into Hong Kong and mainland China, told SeafoodSource.

Price, added Hanselman, “is still the driver.” This is important for importers like Hanselman, given “raw material prices are increasing, especially on certain ‘sustainable items’ as tightened quotas are impacting, and also for some species fishing has just been bad.”

Airline catering firms LSG sky chefs, CPCS and Gate Gourmet are top customers for Pacific Rich Resources “and they seem more willing to go the sustainable route,” said Hanselman. “I believe this is driven by a more knowledgeable client base. However, “it is the individual airlines through the catering companies that drive the products. They like a variety, but you can’t throw anything at them. … you need to be aware of their clients and tastes and dislikes and what fish cook best in the airline catering business. … you need to spend time developing products for them.”

Hanselman is starting a new range of Marine Stewardship Council (MSC)-certified Atlantic cod and plaice — “all single frozen and MSC(certified). … so a cracking product.” Also, he recently launched a “Totally Canadian” product line of sustainably fished or harvested Canadian seafood products which are being sold in YATA and Yue Hwa supermarkets in Hong Kong. “We have also done quite a bit of business with Canadian east coast products this last year including snow crab/ lobster/ lobster tail and shrimp. The latter are proving increasingly popular… but prices are crazy with the lack of product and reduction in quotas as mentioned.

Compared to airlines, the F&B or food service market in Hong Kong is tough, said Hanselman: chefs at top hotels like the idea of sustainable product “but purchasing managers are only driven by the bottom line. … To be honest I’m moving away from it. Most restaurants want small quantities, five kilogram or more. You can improve on this if you have more than one species they like and they might buy two 5kg lots or something like that. Apart from hotels, outlets in Hong Kong don’t like to hold inventory as basically they don’t have space. Rents are so high. Thus small food service outlets are a tough business.”

“There is certainly the business out there, but it’s small deliveries to many places. In Hong Kong travel time takes ages and parking is almost impossible. It just isn’t worth the time and effort ... unless you are established. There are a few well-established companies who have a great product base and make regular deliveries to hotels and the like. They have the market sewn up. I believe they do well but for new companies it’s tough.”

“Supermarkets still buy cheap and it is hard to get anywhere with them, as they buy cheaper products. Saying that, those with good brand outlets do ask for sustainable product, but volumes are generally low but steady.”

Overall, the concept of sustainability is not a seller, “although it is gaining traction,” said Hanselman. “Health and safety has greater impact.”

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