Prices are up this summer at northern China’s biggest seafood market, but customers are still buying.
Salmon prices have increased sharply, with imports being scrutinized closely as part of China’s efforts to contain the COVID-19 epidemic. Claiming to have found live traces of the virus on the packaging of imported seafood, China’s customs authorities have increased the frequency and thoroughness of their inspections, with the knock-on effect of slowing down the flow of foodstuffs into the country.
Vanessa Jiang, supply chain manager at Qingdao, China-based CAWM West Coast Market (CAWM refers to China Supply and Marketing Agricultural Production Wholesale Market Holding Co.), said the COVID-19 epidemic has caused “cargo detention and squeezing of seafood supply” in China.
“The unqualified inspections of suppliers in some countries around the world have also caused some domestic single products to skyrocket and run out of stock, which also has a certain impact on our market,” Jiang said.
However, the triggering of the Chinese population’s concern over food safety has been a net positive for the country and for her company, Jiang said.
“Strict supervision by various government departments, combined with our market management standards, hardware standards, and traceability system has ensured the safety of the market staff and logistics personnel while keeping the flow of goods going,” Jiang said.
In the short-term, that has meant higher prices for seafood, including salmon. Frozen salmon is now selling at CNY 50 (USD 7.50, EUR 6.50) per kilogram, while chilled salmon is selling at CNY 130 (USD 19.50, EUR 16.90), according to Jiang. China's average import price for salmon in 2019 was USD 4.65 (EUR 3.96) per kilogram, meaning prices have risen sharply. But even with the higher prices, the market is still doing a brisk business in salmon, as well as cod, vannemei shrimp, and crab, she said.
“[The] margin of increase is within the level of tolerance of consumers,” she said.
The 350,000-square-meter market’s operating company, Qingdao Zhong Nong Modern Agriculture Development Co., signed a cooperative agreement with the Global Seafood Alliance (formerly the Global Aquaculture Alliance) on 7 August. Under the agreement, the market aims to jointly promote Best Aquaculture Practices-certified products. The alliance with the GAS will offer quality assurance to consumers, Jiang said. Demand from marketing channels recognize the importance of aquaculture certification and quality assurance, she explained.
“The BAP certification helps guarantee the healthy development of the aquaculture industry. BAP concepts on traceability [and] zoning are coherent,” she said. “It is very important to maintain healthy and sustainable development [of aquaculture].”
The agreement is part of a strategic effort by the company to modernize the trading of seafood in Northern China, Jiang said.
“[We want] to build a comprehensive service platform integrating bonded inspection, warehousing, logistics, and merchant transactions for Northeast Asia to serve agriculture, rural areas, and farmers,” she said.
The Qingdao municipal government invested CNY 850 million (USD 127.5 million, EUR 110.5 million) in building the first phase of the giant CAWM West Coast Market. Phase two of the is set for completion in September. Earlier this year, Wang Peng, the chief executive of the Zhong Nong Modern Agricultural Development Co., which runs the market, predicted three million tons of seafood will be traded at the market annually once it’s fully operational.
Photo courtesy of Pataporn Kuanui/Shutterstock
