Kylie Petherick is the CFO of Australian tuna-farming company Stehr Group, which has seen demand for its products soar in China recently.
Established in 1972, the family-owned Stehr Group specializes in the offshore ranching and grow-out of southern bluefin tuna from its base in Port Lincoln, South Australia.
In July, Stehr signed an agreement with seafood distributor Shanghai Xinjiangyang Supply Chain Management, making the latter the company’s exclusive agent and marketing partner in China.
Despite weaker consumer sentiment in China overall, the company is aiming to further grow sales of its southern bluefin tuna – the name given by the industry to tuna farmed in South Australia – in China through the connections it has built up to this point.
Petherick recently discussed her company’s efforts in the Chinese market with SeafoodSource.
SeafoodSource: What prompted you to enter the Chinese market?
Petherick: We have been exploring the Chinese market for a number of years, having first sold fresh products to the Chinese market in 2017. We believe there is a market for our premium-quality product outside of our traditional market – Japan – and have targeted China as a potential large consumer.
SeafoodSource: How did you find your local Chinese marketing partner, and how has the relationship been?
Petherick: We have an agent in China who understands the Chinese market, and he has been promoting our product for the past five years. In this time, we have seen sales gradually increase. The partnership we now have with Shanghai Xinjiangyang is a culmination of consistent effort throughout the market and the ability to change and adapt to the needs of the Chinese market.
SeafoodSource: What kind of growth – or deceleration – have you seen in your sales to China this year and last?
Petherick: Our sales volume to China has tripled in 2024 compared to 2023. In 2024, we have shipped fresh southern bluefin tuna every week, compared to some fresh but mostly frozen products in 2023.
SeafoodSource: How does the current downturn in consumer mood and slowed growth in consumer sentiment affect your marketing plans?
Petherick: Initial predicted volumes for 2024 were higher than what actually played out, which reflects the change in consumer demand; however, our strategy to continue supplying fresh southern bluefin tuna to the Chinese market – and other potential markets – 52 weeks of the year provides us with market differentiation.
Continuity of fresh supply has not previously been available, so as marketing and awareness increases, we expect to see an increase in weekly demand going forward.
SeafoodSource: What kind of growth are you aiming for in 2025 in your sales to China?
Petherick: We expect 40 percent growth in China sales for 2025, as we will have product available every week from 1 January onward. Traditionally, farmed fresh southern bluefin tuna is only available from around March or April through to July. We expect this to provide us with an advantage in the market.
SeafoodSource: What is unique about the Chinese tuna market compared to other key markets you supply?
Petherick: China is proving to predominantly be a fresh market and values consistent supply, whereas our supply to Japan is almost all minus 60 degrees Celsius frozen and harvest occurs in June and July each year.
SeafoodSource: Are you worried about geopolitical risks like Australian live lobster exporters have experienced over the years in accessing the Chinese market?
Petherick: There are risks in all markets; for us, it is about having a close relationship with our customers and engaging with our relevant government departments to keep abreast of the market landscape.
SeafoodSource: Is there a price premium in China for your tuna?
Petherick: Pricing is not relevant as we are selling a different type of product to the Chinese market versus our traditional Japanese market.
SeafoodSource: Does your fresh tuna come at a price premium compared to bluefin farmed tuna offered in China by countries like Malta?
Petherick: Our fish are smaller than the Mediterranean fish and, therefore, are priced at a lower value for sashimi-grade tuna.
