Shrimp leader Guolian further reduces reliance on US with crayfish investments at home
Leading Chinese shrimp exporter Guolian is banking that a new crayfish processing plant will further reduce the company’s reliance on a volatile export market. A new plant in Yiyang, in central China, has commenced shipping to supermarkets and restaurant chains across China.
Guolian Yiyang Foodstuffs Co. has a processing capacity of 150 tons a day of crayfish and dormitories for 2,000 workers onsite.
Guolian lifted its revenues in 2018 by 15.6 percent year-on-year while profits rose 60 percent to CNY 261 million (USD 38 million, EUR 34 million). While Guolian booked 65 percent of revenues from exports in 2018, this represents a drop on the previous year when the company got 74.9 percent of its earnings from exports.
Processing accounted for 94 percent of revenue in 2018, with feed contributing 5.1 percent of sales, and aquaculture only 0.3 percent.
China’s seafood exporters have been worried by the ongoing trade tensions between China and the U.S., and have sought to tap into strong growth in incomes at home. Crayfish has become a popular summer snack food in China, with an explosion in consumption during last year’s soccer World Cup, as fans congregated to eat and watch football.