Increasing sales in China and building up its import business are the key strategies for leading whitefish processor Dalian Yihe, according to Neil Guo, head of international sales at the firm.
While Yihe has traditionally concentrated on Alaska pollock and chum salmon, it has recently widened its scope to cod and hake processing.
While 2016 has been a tough year so far, next year will be even tougher, predicts Guo. Competition from domestic rivals is “severe” but the broader global economic slowdown makes 2017 a “matter of survival,” says Guo.
The company’s links to international markets may give it another revenue option as it seeks to expand imports.
“There is demand for premium seafood, we want to find suppliers in Canada and Norway,” Guo said.
China is suffering from overcapacity; as low barriers to entry are creating a large number of processors competing only on price.
“It was easy to enter the industry but many of these companies have competed solely on price, while compromising quality,” Guo said.
The other avenue, domestic sales, is complicated by consumer preference for whole, fresh product, a legacy of the numerous food safety scandals that have plagued the industry in China.
“Chinese consumers want whole fish to see that it’s a complete fish,” Guo said.
However, gradual lifestyle changes bode well for processed products for younger consumers, Guo said.
“[Young people] are too busy to cook and have no time to pick the bones out of a fish,” Guo said. “They prefer processed product.”
