Hotter summers in China’s key growing region are driving sea cucumber prices in China to record highs.
Unusually high temperatures last summer “stunted, killed, or adversely impacted” 92 percent of sea cucumber stocks in Liaoning Province, resulting in stocks for farmed sea cucumber trading at an average CNY 160 (USD 23.72, EUR 20.74) per kilogram, according to Kang Jingdong, an analyst covering the sector at Chinese brokerage firm Xin Da Securities (also known as Cinda Securities).
One of the firms Kang covers, Homey Aquatic Development Co., reported revenue in the third quarter of 2018 rose 78.9 percent to CNY 367 million (USD 54.4 million, EUR 47.6 million) attributable to higher prices, according to Kang.
“Marketing costs dropped by 59 percent as there was such demand for stock,” added Kang, who predicted that higher prices will persist through 2019.
Sea cucumber prices jumped to CNY 200 (USD 29.65, EUR 25.93) per kilo, up 25 percent year-on-year, in early October. By contrast, average prices for other high-end favorites edged downward, with abalone priced at CNY 140 (USD 20.76, EUR 18.15), and shrimp at CNY 180 (USD 26.69, EUR 23.34) per kilo, according to Kang.
Sea cucumbers are a popular species in China’s high-end gift market and prices have been volatile in recent years as new producers flooded into the sector. Prices fell from a high of CNY 200 (USD 29.65, EUR 25.93) per kilogram in 2011 to CNY 80 (USD 11.86, EUR 10.37) per kilogram in mid-2016 before recovering again to their current health. Key players are mostly clustered in Liaoning and Shandong provinces. China also imports large quantities of sea cucumber.
