Trade

At the IFFO’s annual conference in Cape Town, the latest statistics on marine ingredient production and consumption were revealed. According to IFFO’s market research director, Dr. Enrico Bachis, India has experienced a significant surge in fishmeal exports, becoming the fourth-largest exporting country. Meanwhile, Vietnam has also seen notable growth, while Peru faced a decrease due to La Niña.

In terms of consumption, aquaculture remains the predominant consumer of fishmeal. Crustaceans, particularly shrimp, accounted for the highest proportion of fishmeal consumption, followed by freshwater species in Asia and China, replacing marine fish.

For the pig meat market, China is grappling with high feeding costs, impacting feed formulations. In the poultry sector, consumption trends remained consistent with previous years. In the global pet food sector, fishmeal consumption was estimated at 200,000 tonnes in 2022.

Regarding fish oil, Peru led in exports but with a smaller share compared to 2021 due to reduced production. Norway maintained its position as the largest importer in 2022. Aquaculture accounted for over 70 percent of fish oil usage, followed by nutraceuticals and pet food, with salmonids being the largest consumers by species.

Maggie Xu, IFFO’s China director, presented a comprehensive overview of the Chinese marine ingredient market. The Chinese economy faces challenges, with capital flows impacting the RMB against the USD. The marine ingredient market in China grapples with oversupply and financial losses in the pig and aquaculture sectors.

Fishmeal inclusion rates in aqua and piglet diets were lowered due to sluggish farm gate prices and tight fishmeal supplies. Future growth points include land-based RAS, offshore farming, and notably, the P. vannamei shrimp market.

Regarding China’s marine ingredient output, Xu noted a less promising current season with a reduction in tilapia by-products. Fishmeal production might be slightly lower than 2022, but fish oil outputs are expected to grow in 2023.

In terms of consumption, China’s aquaculture industry dominates fishmeal consumption at 89.6 percent, with the pig sector consuming the majority of the remainder. In fish oil consumption, aquaculture leads again, accounting for 68.4 percent.

Despite overall losses and oversupply in the aquafeed sector, low prices are driving a focus on innovation and business viability in the industry.

Source: The Fish Site

Aquatic products from Northwest China’s Xinjiang are experiencing a surge in popularity, propelling the local fishery industry into rapid development. Successful ecological management in recent years has contributed to this growth, and the region’s seafood gains traction amid concerns over seafood safety following Japan’s decision to release nuclear-contaminated wastewater into the sea.

In Altay, Xinjiang, workers recently initiated the fishing season for this year’s first batch of crabs, destined for shipment to East China’s Jiangsu Province. Notably, Xinjiang’s landlocked location has become an advantage in the Chinese market, with seafood gaining favour amidst worries about Japanese seafood safety.

Xinjiang’s seawater aquafarming is thriving, with Bosten Lake alone anticipating a bumper harvest of over 4,000 tons of crabs this year, available approximately 10 days earlier than traditional crab-producing provinces like Jiangsu. Additionally, the region’s South American white shrimp, salmon, and other aquatic products are experiencing significant yields.

Fan Xubing, an aquatic industry insider and analyst, emphasizes that Xinjiang’s growing popularity in seafood provides an opportunity for the local seawater aquafarming industry to expand production and attract more investment. The Chinese government’s commitment to ecological management and water body restoration has laid the groundwork for the fishery industry’s development in Xinjiang.

The Japanese government’s decision to dump nuclear-contaminated water led to the suspension of Chinese seafood imports from Japan. Xinjiang’s rapidly developing seafood industry has stepped in to fill the gap, showcasing the region’s potential to meet the growing demand for fishery products.

Source: Global Times

American Shrimp Processors Association (ASPA) has filed trade petitions seeking additional antidumping and countervailing duties on imported shrimp. The ASPA aims to combat dumping and alleged illegal subsidies, specifically targeting frozen warmwater shrimp from Ecuador and Indonesia.

The U.S. International Trade Commission (USITC) recently upheld antidumping duties on shrimp from India, China, Thailand, and Vietnam, a move applauded by the ASPA. However, the association claims that the influx of imported shrimp continues to negatively impact the domestic shrimp industry, leading to historically low prices and reduced market share.

U.S. domestic shrimp prices have remained near historic lows in 2023, despite a slight increase in catches in some states as imports rose. The ASPA’s petitions focus on Ecuador, India, Indonesia, and Vietnam, collectively responsible for 90 percent of all imported frozen warmwater shrimp in 2022.

The ASPA alleges that dumping margins, particularly for Ecuador, could be as high as 111 percent. The association also asserts that numerous government subsidy programs in the targeted countries enable shrimp farmers and processors to maintain low prices, putting domestic producers at a competitive disadvantage.

ASPA President Trey Pearson expressed pride in filing the cases on behalf of the industry, citing support from nearly 800 shrimp harvesters representing over half of all domestic landings. The move aligns with ongoing efforts to address the trade imbalance, as seen in a bill introduced by U.S. Senator Bill Cassidy to counter Indian government subsidies.

Trade counsel to the ASPA, Elizabeth Drake, and Eddy Hayes emphasized the necessity of the petitions to counter unfair trade practices. If successful, the imposition of antidumping and countervailing duties is expected to provide relief to the domestic shrimp industry by offsetting the alleged dumping and subsidies, fostering a much-needed market correction.

Source: Seafood Source

The Indian seafood industry is grappling with uncertainties for the current year despite achieving a record $8 billion in exports during FY23. The principal concern revolves around tepid global demand for shrimp, falling prices due to excess stock, and a subsequent decline in local production. Shrimp constitutes a significant portion of India’s seafood exports, and industry leaders express a lack of optimism regarding a swift recovery in the coming months.

Jagdeesh Fofandi, the national president of the Seafood Exporters Association of India, cites a 15 to 20 percent drop in shrimp prices, with sluggish markets in the US and reduced Chinese buying. Payment issues with Chinese importers further compound the challenges. Despite last year’s peak in seafood exports, the industry faced difficulties throughout most of the year, with only a recent uptick in the last few months.

According to global shrimp expert Willem van der Pijl, large volumes of shrimp harvested in the final quarter of 2022 bolstered exports in the last quarter of FY23. However, prices started to decline from December 2022.

The global downturn in prices has impacted major shrimp producers worldwide. Rabobank’s research report forecasts a 14 percent increase in Ecuador’s shrimp output in 2023, while India, the second-largest shrimp producer, experienced a 4.7 percent decline in 2022 due to various factors.

Despite India’s record seafood export of 17,35,286 tonnes valued at Rs 63,969.14 crore ($8.09 billion) in 2022-23, the decline in shrimp quantities led to a 12 percent reduction in their share in the total seafood basket and a 7 percent drop in value.

Experts predict a challenging year for Indian shrimp production, expecting a decline from around 9 lakh tonnes to 6-7 lakh tonnes. Overstocked US markets and higher supply than demand may hinder price improvements until the beginning of 2024.

While the export of vannamei shrimp from India has dropped, there is a silver lining as the indigenous black tiger prawn gains increased demand, particularly from Japan. FY23 saw a 74 percent YoY increase in black tiger prawn exports to 31,213 tonnes, providing a positive trend for the current year despite challenges in vannamei shrimp cultivation.

Source: Money Control

Agriculture Insurance Company of India (AIC), currently holding a 50 percent market share in crop insurance under the Pradhan Mantri Fasal Bimal Yojana (PMFBY) scheme, is expanding its portfolio. A top official from AIC announced that the company has obtained the necessary license from the Insurance Regulatory and Development Authority of India (IRDAI) to introduce insurance products for the livestock, aquaculture, and sericulture sectors.

Girija Subramanian, the CMD of AIC, disclosed that the license for these new insurance products was secured in May of the previous year. AIC is currently in the development phase of these products and plans to launch them once the process is complete. Speaking at an ASSOCHAM event, Subramanian highlighted AIC’s commitment to extending its services to support various sectors within the agricultural industry.

Established in 2000 with a capital base of Rs 200 crore, AIC’s capital contributions come from GIC Re at 35 percent, Nabard at 35 percent, and the remaining percentage from four public general insurers: National Insurance, United India Insurance, New India Assurance, and Oriental Insurance.

Addressing queries about capital needs, Subramanian clarified that AIC does not require an immediate capital infusion. However, the company will undergo the bidding process to secure business under the PMFBY scheme. Additionally, AIC has obtained a license for retail crop insurance, a segment that involves reaching farmers in remote areas. Developing this aspect of the business is expected to take some time.

Under the PMFBY scheme, farmers contribute a percentage of the premium, with 2.5 percent during the kharif season and 1.5 percent during the rabi season. The remaining premium is evenly split between the central and state governments. Subramanian noted that AIC actively participates in tendering processes for similar schemes initiated by state governments not adhering to PMFBY guidelines.

Union Fisheries, Animal Husbandry, and Dairying Minister Parshottam Rupala have highlighted the potential of the Andaman and Nicobar Islands to emerge as India’s largest export hub in the fishery sector, particularly for live marine assets such as ‘Groupers,’ ‘Tuna,’ and ‘Snappers’ fishes. The minister emphasized that international air connectivity and the promotion of cargo facilities will play a crucial role in facilitating the export of these fishes, both live and frozen, to neighbouring countries.

In an interview, Minister Rupala stated, “The place (Andaman and Nicobar Islands) has the potential for the biggest export hub. Here you will get an abundance of ‘Groupers’ and ‘Snappers,’ and these fishes are in high demand in live conditions in Thailand, Malaysia, and Indonesia.”

Highlighting efforts to boost exports, Rupala mentioned that the reporting time for vessels carrying fish from the Andaman and Nicobar Islands to Thailand has been reduced from 72 hours to 36 hours, a move aimed at promoting direct exports by vessels to Thailand.

Under the centrally sponsored scheme ‘Blue Revolution,’ the ministry has approved a project cost of Rs 18.25 crore for the Andaman and Nicobar administration, with a central share of Rs 6.89 crore released from 2015-16 to 2019-20. Additionally, under the Pradhan Mantri Matsya Sampada Yojana (PMMSY), an investment of Rs 218 crore, with a central share of Rs 138 crore, is planned for the region.

The Department of Fisheries is also working on constructing a fishing harbor for deep-sea fishing vessels on the Andaman coast to promote deep-sea fisheries in the islands. A significant allocation of Rs 200 crore has been earmarked for the genetic improvement program of commercially important aquatic species, including ‘Scampi,’ ‘Trout,’ ‘Prawn,’ and ‘Carp.’

Furthermore, a financial support of Rs 12 crore is extended to the Marine Products Export Development Authority (MPEDA) for the ongoing genetic improvement program of Giant Tiger Prawn in the Andaman and Nicobar Islands under PMMSY. Minister Rupala also highlighted the National Surveillance Programme on Aquatic Animal Diseases (NSPAAAD) Phase two, stating that baseline data has been collected and compiled from freshwater fish farms, and scientific advice has been provided to farmers based on investigations of 18 disease cases in fish and shellfish.

Tyson Foods, one of the world’s largest food companies, has secured a double deal with Protix, a leading producer of insects protein As part of the agreement, Tyson Foods will acquire a minority stake in Protix through a direct equity investment, facilitating the funding of Protix’s global expansion initiatives. Additionally, the two companies have entered into a joint venture to operate and construct a pioneering insect ingredient facility in the continental United States.

Upon completion, the facility is poised to be the first at-scale operation of its kind, focusing on upcycling food manufacturing byproducts into high-quality insect proteins and lipids. These insect-derived products will find applications primarily in the pet food, aquaculture, and livestock industries.

John R Tyson, Chief Financial Officer of Tyson Foods, highlighted the strategic importance of the partnership, stating, “Our partnership with Protix represents the latest strategic investment by Tyson Foods in groundbreaking solutions that drive added value to Tyson Foods’ business. The insect lifecycle provides the opportunity for full circularity within our value chain, strengthening our commitment to building a more sustainable food system for the future.”

Protix’s CEO, Kees Aarts, expressed enthusiasm about the collaboration, emphasizing its role in advancing sustainable protein production. Aarts said, “Tyson Foods’ and Protix’s strategic partnership advances our joint work towards creating high-quality, more sustainable protein using innovative technology and solutions. Moreover, we can immediately use their existing byproducts as feedstock for our insects. This agreement is a major milestone for Protix and significantly accelerates our ambition to grow through international partnerships.”

The forthcoming U.S. facility is designed to incorporate an enclosed system supporting all stages of insect protein production, including breeding, incubation, and hatching of insect larvae. The processed larvae will serve as essential ingredients for the aquaculture and pet food industries, with potential applications in livestock and plant feed.

Protix, currently producing and processing 14,000 tonnes annually in its Netherlands facility since 2019, serves major global companies in pet food, aquaculture feed, livestock feed, and organic fertilizer industries. The partnership reflects a strategic response to the growing demand for sustainable insect-derived ingredients.

Indian vegan seafood startup Seaspire has entered the direct-to-consumer (D2C) market after successful foodservice trials in major cities across the country. Launched in 2021, Seaspire gained attention with its innovative bio-printed whole-cut vegan snapper and has now introduced plant-based fish fingers, a fish burger, and fish mince for home cooking applications through online channels.

The D2C offerings, featuring a base of eight ingredients, including pea and rice protein, water, sunflower oil, and algal extracts, are aimed at meeting the demand of early adopters seeking easy access to vegan seafood. The move comes after positive feedback from trials and pop-up events, where the company observed a growing interest in alternative seafood products.

While the exclusive whole-cut snapper remains in foodservice channels, Seaspire’s foray into the D2C space focuses on online stores, as physical retail is deemed less promising in India due to inventory costs and supply chain challenges. The company plans to use its increased market presence to introduce more whole-cut plant-based seafood products in the first quarter of 2024.

Seaspire, describing the Asia-Pacific region as an untapped opportunity for vegan seafood, is also eyeing expansion into Australia, the UAE, and potential markets like Singapore. Despite a challenging fundraising market, the startup has received support through accelerator financing and grants in India and New Zealand.

Varun Gadodia, co-founder of Seaspire, emphasized the importance of addressing the diverse preferences in the Indian consumer space, noting a modest rise in vegan consumption post-pandemic, particularly in tier one cities. Seaspire believes that catering to a broader audience, including vegetarians, is essential for long-term success.

As the company pioneers alternative seafood in India, it sees potential in the confluence of plant-based and cultivated proteins. Gadodia hinted at the rise of biotech-driven solutions, such as cell-based and synthetic biology, as a key to success in the alternative seafood sector. Seaspire aims to contribute to the growth and adoption of sustainable and innovative plant-based seafood alternatives in the region.

Following a comprehensive four-year investigation conducted by reporter Ian Urbina’s Outlaw Ocean Project, certain U.S. lawmakers are pushing for increased restrictions on seafood imports from China. The investigation exposed severe human rights abuses within China’s fishing industry, with a particular focus on the operations of the Chinese fishing vessel Zhen Fa 7.

Major American grocery stores, restaurant chains, and food service companies are implicated in receiving substantial volumes of seafood from Zhen Fa 7, where workers endured extremely harsh and sometimes deadly conditions. The probe, documented in the New Yorker, revealed that processing plants in China’s Shandong province utilized Uyghurs from labor camps in Xinjiang and North Korean laborers. The estimated export of “at least forty-seven thousand tons of seafood, including some seventeen per cent of all squid sent to the U.S.,” has raised concerns as these shipments reached entities supplying military bases and school cafeterias.

The findings have garnered attention from policymakers in Washington. The Congressional-Executive Commission on China, a bipartisan body monitoring alleged human rights abuses in China, is set to conduct a hearing with Urbina on October 24 to delve into his discoveries. Rep. Chris Smith, R-N.J., the commission’s chair, emphasized the need for immediate action: “All seafood imports processed by Uyghurs and North Koreans must stop immediately — that is the law. But everyone from big grocery chains to the U.S. government must provide an answer to why their seafood supply-chains support modern slavery.”

The Uyghur Forced Labor Prevention Act, enacted in 2021, prohibits American imports of goods made with forced labour in China, focusing on Xinjiang. A separate law from 2017 restricts goods produced with North Korean forced labour. Rep. Mike Gallagher, R-Wis., chair of the House select committee on China, urged the U.S. government to expand sanctions on Chinese firms engaged in illegal fishing practices and to “suspend imports of tainted Chinese seafood products.”

Rep. Raja Krishnamoorthi, D-Ill., Gallagher’s Democratic counterpart on the China select committee, emphasized the need for stricter enforcement of import laws, stating that if China wants to sell to U.S. markets, they must adhere to established rules.

Source: SEMAFOR

Image Credit: Chen Yongjian

Russia has decided to halt the import of all fish and seafood from Japan, citing apprehensions stemming from Tokyo’s controversial release of wastewater from the damaged Fukushima nuclear power plant into the sea.

Russia’s Federal Service for Veterinary and Phytosanitary Supervision (Rosselkhoznadzor) announced the suspension, aligning with China’s temporary restrictive measures on fish and seafood imports from Japan. The suspension, effective from October 16, 2023, is set to endure until there is “comprehensive information confirming the safety of aquatic products and their compliance with the requirements of the Eurasian Economic Union.”

The controversy surrounding Japan’s release of wastewater in August has triggered concerns about the safety of the sea and potential radioactive contamination of the local ecosystem. Russia’s move follows a similar expression of worry by China and other nations.

The Rosselkhoznadzor emphasized that this precautionary measure aims to safeguard against potential risks until the safety of Japanese aquatic products is conclusively verified.

The All-Russian Association of Fisheries reassured that the import restriction would not result in a shortage of fish and seafood in Russia, as the market share of Japanese products is minimal. In 2022, Russia imported a mere 192 tons of fish and seafood from Japan, accounting for only 0.04 percent of its total imports in this category. The figure for the first half of 2023 stood at 100 tons.

Earlier on September 26, Rosselkhoznadzor had expressed concerns about the potential radiological contamination of Japanese seawater and seafood following the release of treated contaminated water from the Fukushima-1 nuclear power plant into the Pacific Ocean. Tokyo Electric Power Company (TEPCO) discharged nearly 7,788 cubic meters of processed water, containing approximately 1.1 trillion becquerels of tritium between August 24 and September 11.

TEPCO pledged to maintain tritium concentrations below 1,500 becquerels per litre in the discharged water, asserting that such levels pose no harm to human health or the environment. The release is part of ongoing efforts to manage the accumulated millions of tons of contaminated water at the Fukushima plant.