China’s unofficial ban on Australian seafood imports has prompted a move toward diversification in Australia, according to Anthony Ciconte, the managing partner of Melbourne-based Atlantis Fisheries Consulting Group.
“There is a definite move to expand into new and also dormant markets that were created by the China ‘consumption vacuum’ between 2010 and 2020,” Ciconte told SeafoodSource. “COVID-19 has recalibrated demand in many regions, mainly due to supply bottlenecks in shipping and the effect of pent-up demand created by populations staying home. Australian trade experts realize that this is an opportunity, and the government has moved swiftly and professionally to support the sector with funding for marketing programs that are bring the world to Australia.”
Ciconte said an AUD 888,000 (USD 666,000, EUR 577,200) federal grant awarded in July to trade group Seafood Industry Australia for market development and research was a linchpin of this strategy. In announcing the award, Australian Agriculture Minister David Littleproud said it will be used to investigate and analyze the potential of new markets in North Asia, South Asia, the Pacific, Europe, and the Americas “with rock lobster and abalone a key focus.”
The trade spat with China has proved to be a boon for neighboring countries like Malaysia, South Korea, Taiwan, Vietnam, Singapore, and India, according to Ciconte.
“[It] is leading to a dusting off of what was once-great trading relationships,” Ciconte said, as consumers in those markets are “now enjoying the world’s highest-quality lobster at a fraction of the price that the Chinese consumer must now pay.”
“Broadly, developing new trade agreements with the U.K and E.U, and a strengthening of the trade with the U.S are now cementing into a solid foundation for a much more distributed trade portfolio for Australian exporters,” Ciconte said. “This is definitely an exciting time for Australian seafood exporters.”
Despite the blockage, demand for Australian lobster remains strong in mainland China, according to Ciconte. Evidence of that can be seen in a booming trade in smuggled Australian seafood heading into China. In mid-October, Chinese and Hong Kong authorities seized 5,300 kilos of Australian lobster headed overland into Guangdong Province, the latest in a series of seizures of smuggled Australian seafood. Volumes of Australian lobsters into Hong Kong have almost trebled since the unofficial ban was introduced by China.
Photo courtesy of Anthony Ciconte/LinkedIn
