Chinese aquaculture firm Dahu Aquatic received a boost from the news that pearl prices are up by between 10 and 20 percent due to a squeeze in supply in the southeasterly province of Zhejiang, the center of Chinese and global cultivation.
The acreage of pearl-producing mussel beds has fallen by half over the past three years due to tighter enforcement of environmental regulations, according to financial analysts following Dahu. The firm’s subsidiary, Dongting Aquatic Pearl Co. Ltd., is a major producer of pearls.
Traders reached at the giant Hua Dong Pearl City complex –a global hub in the industry – suggested the squeeze on acreage will continue as officials in the surrounding Zhuji County, near the city of Shaoxing, have targeted freshwater mussel cultivation for pearl production as a major source of pollution. Traditional cultivation practices, such as the use of poultry manure in mussel cultivation, have been stamped out and farmers ordered to install water treatment plants as part of an environmental crackdown by the government.
China accounts for 90 percent of global freshwater production of mussels for pearls with production centered in Zhejiang Province, which is also home to major manufacturing cities like Yiwu, a city that receives frequent visits from pearl wholesalers from the Middle East and Russia. Other Chinese aquaculture firms, including Guolian Aquatic, also have units in Zhejiang producing pearls.
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