The impact on seafood sales in China of the false linkage between COVID-19 and imported salmon, triggered by an outbreak that began at a Beijing seafood market, will be “temporary,” according to Chongzuo, Guangxi, China-based Guohai Securities.
In the short-term, Chinese consumers will substitute salmon with local seafood and pork, according to a new research paper on Chinese seafood demand from the securities firm. It also predicts future growth in online sales, and increased investment in cold chain logistics as seafood sales move away from wet markets like Xinfadi, where the outbreak occurred.
Even with the Xinfadi scare, demand has remained strong for domestic supply, two of China’s better-known securities analysts – both of whom are backing domestic aquaculture stocks – have noted in recent reports.
A roasted fish craze is driving up demand for freshwater whitefish in China, resulting in hot sales and higher prices of carp and catfish, according to Wu Li, an analyst at Tian Feng Securities. Roast fish and crayfish have become summer specials, with outdoor diners flocking to outdoor terraces to eat the domestically produced seafood and drink beer.
The Tongwei Group, a leading player in animal feeds and renewable energy, is one of several local firms seeking to cash in on increased demand for domestic seafood. Zhao Xing Wu, secretary general at the China Fisheries Association, recently visited the company’s facilities and published a report on his organization's Weibo page. Per the report, Tongwei is looking to grow its footprint in aquaculture across China, claiming greater productivity and profitability from its combined aquaculture-solar parks. Tongwei claims that the solar panel installations reduce heat by one to three degrees. The firm concentrates on bass, carp, and croaker farms built out over 2,200 mu since 2018. Recently, Tongwei has also sought to incorporate leisure fishing and tourism experiences into its facilities.
However, even if demand is strong, China continues to reduce local production due to stronger enforcement of environmental rules, driving up prices and demand for imports. The island province of Hainan – a key region for tilapia farming – is reskilling 50,000 fishermen with 30 “leisure fishing” villages in a 2018-2022 plan synced with a government launch of the island as a free trade zone. Some of the fishermen are reskilling for the hospitality sector, according to a government propaganda campaign that seeks to encouraging more fishermen and boat owners to switch professions.
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