December 22, 2003

 

 

Analysis of China's Aquatic Products Market Performance for the First Three Quarters of 2003  

 

An eFeedLink Exclusive Report

 

Compared to the same period last year, China's production of aquatic products during the first three quarters of 2003 continued to increase at a steady pace. The speed of increase for the third quarter was apparently faster than the first half of this year. The retail consumer price for aquatic products went down compared to the same period last year, but the level of consumer price increased in the third quarter.

 

Market prices of aquatic products in China dropped versus the same period last year, mainly influenced by the big drop in prices of freshwater products. During the first three quarters of this year, the exports of aquatic products increased significantly, but imports dropped.

 

1.  Production of Aquatic Products Continued to Increase; Faster Growth in the Third Quarter

 

China's production of aquatic products from January to September totaled 28.86 million tons, showing an increase of 4.4% compared to the same period last year. Of these, the output of pelagic fishing totaled 9.298 million tons, a drop of 0.44% compared to the same period last year. The production from marine aquaculture totaled 7.121 million tons, an increase of    10.4% compared to the same period last year. The production from freshwater aquaculture totaled 12.444 million tons, an increase of 5.3% compared to the same period last year.

 

China's production of aquatic products began to pick up during the third quarter of this year, and the overall production has risen by 1.7% over the fist half of this year. Out of which, the production from marine aquaculture and freshwater aquaculture increased by 2.4% and 1.6% respectively during the third quarter. Due to the fact that all marine districts have generally resumed their fishing activities during the third quarter, the decreasing output for fish haul in the third quarter has correspondingly slowed down, compared to the first half of this year. The output of pelagic fishing remained stable, with a slight drop in production during the third quarter. Marine aquaculture has developed at a relatively faster pace during the third quarter.

 

2.  National Retail Consumer Price Rises; Consumer Price of Aquatic Products Drops
 
The national retail consumer price from January to August has risen by 0.6% compared to the same period last year. Out of which, the consumer price of aquatic products dropped by 0.5% compared to same period last year.

 

Based on monthly statistics, consumer price of aquatic products in China fluctuated by a bigger margin during the first three quarters of this year. Due to the influence of Chinese New Year holidays in February this year, a large volume of aquatic products entered the market, and this caused the consumer price of aquatic products to drop by a big margin compared to January. After the Chinese New Year holidays, the consumer price of aquatic products improved gradually, and has reached a higher level in April.

 

In May, due to the influence of SARS outbreak, the cross-territory traffic of aquatic products was obstructed. As a result, consumer price of aquatic products dropped to a new low in May. However, the consumption has gone up rapidly after May, and the consumer price of aquatic products reached the highest for this year in August.

 

As a whole, consumer price of aquatic products for rural residents was relatively lower than that of urban residents. But, due to the influence of SARS outbreak in May on urban residents' consumption, consumer price of aquatic products for urban residents was therefore lower than that of rural residents in May.

 

3.  Index of Prices of Aquatic Products Decreases Compared to Last Year
 

According to the website of China's aquatic product market, (http://www.cnfm.gov.cn), which scrutinized the prices of 20 aquatic products, average price of aquatic products for the first three quarters of this year was RMB9.89/kg, showing a fall of RMB0.32/kg  or 3.1% compared to the same period last year.

 

Compared to the same period last year, except for February, monthly average price of aquatic products for the first three quarters of this year dropped generally but by a different degree. Monthly average price of aquatic products for the first half of this year went down basically at a same level. In July and August, the monthly average price slowed down its rate of decrease and was apparently lower than that of first half of this year. In September, the decrease in monthly average price reached 8.6% versus the same period last year, which was the lowest for this year. From the analysis of the price trend of different aquatic products, it can be seen that the main reason for the overall drop in prices of aquatic products was the drop in prices of freshwater products. 

 

The overall price level of freshwater products for 2003 remained steady, and the price fluctuation in each month was small. The overall price level of marine products continued to slide by a small margin for 2003. During the beginning of the third quarter, prices of marine products returned to a level close to the highest in February, which was also the highest for this year. However, prices of marine products began to slide rapidly in August and September, reaching a lowest of this year.       

 

3.1  Market Prices of Marine Products Rise Slightly; Prices in the Third Quarter Apparently Higher Than Last Year

 

Average price of marine products for the first three quarters of this year was RMB17.32/kg,     showing an increase of RMB0.33/kg or 1.8%, compared to the period same last year. This increase was mainly due to the significant price hikes during the third quarter of this year, versus the same period last year. Out of which, July saw a year-on-year increase of 10.6 % and 9.9% in August. However, prices in September registered a drop of 1.6% compared to the same period last year.

 

3.2  Market Prices of Freshwater Products Drop Sharply; Significant Fall in the Third Quarter
 

Average price of freshwater products for the first three quarters of this year was RMB7.37/kg, showing a drop of RMB0.49/kg or 6.2% compared to the same period last year. This overall price drop in freshwater products was mainly due to oversupply. Following the gradual improvement in the living standard of urban and rural folks, the demand for freshwater products, especially the demand for low-graded freshwater products has further reduced during the first three quarters of this year. As such, prices of freshwater products experienced an overall decline, compared to the same period last year.

 

Prices of low-graded freshwater products fluctuated by a small margin during the first three quarters of this year. Prices of high-graded mandarin fish and river eel, on the other hand, showed a steady increase during the first three quarters of this year, except the prices of soft-shelled turtles and hairy crabs, which dropped by a big margin. Out of which, prices of hairy crab continued to show signs of decline and even reached the lowest in August, which was only 62% of the prices in February. Prices of soft-shelled turtle from January to April remained steady, but dropped by a great margin in May. During the second and third quarters of this year, prices of soft-shelled turtle kept undergoing correction on low price band.                 

 

4.  Exports of Aquatic Products Increase Sharply
 

According to the statistics from China Customs Authority, exports of aquatic products from January to August totaled 1.4376 million tons, showing an increase of 4.1% compared to the same period last year. The export value amounted to US$ 3.258 billion, registering an increase of 17.26% compared to the same period last year.

 

Customs data showed that the imports of aquatic products totaled 1.678 million tons, which was a drop of 5.5% compared to the same period last year. The import value amounted to US$ 1.525 billion, showing an increase of 2.6% compared to the same period last year.

 

4.1 Exports of River Eel Strengthen; The Rate of Increase Reaches 19%

 

Exports of river eel from January to August totaled US$36.7519 million, showing an increase of 19% versus the same period last year. According to the monthly statistics from China Customs Authority, exports of river eel dropped by US$ 0.941 million from February to April, registering a fall of 10.9% versus the same period last year. From May onwards, export volume began to rise again. From January to August, the exports to Japan, South Korea and Hong Kong reached US$ 36.7387 million, accounting for 99.96% of the total exports of river eel. 

• Exports of River Eel to Japan Increase Substantially
  
  From January to August, China exported a total value of US$ 23.5312 million of river eel to Japan, registering a sharp rise of 169.3% compared to the same period last year. It accounted for 64% of the total exports value of river eel and improved by 34.6% compared to same period last year. There was barely any export of river eel to Japan from May to August last year, as a result of environmental protection in the country. Hence, the margin of increase this year was extremely great due to a recovery of the export activity.
   
• Exports of River Eel to South Korea Shows Signs of Recovery
  
  In January last year, exports of aquatic products from China to South Korea were obstructed. The exports resumed in February this year. From January to August of 2003, the accumulated exports of river eel amounted to US$ 11.8846 million, registering an increase of 120% versus the same period last year.
  
  
• Exports of River Eel to Hong Kong Drop Considerably Due to SARS Outbreak
  
  Since February this year, exports of river eel to Hong Kong began to drop gradually. From January to August this year, the accumulated exports amounted to US$ 1.3229 million, showing a fall of US$ 0.3646 million or 21.6% versus the same period last year. This was mainly due to two reasons: firstly, the influence of SARS outbreak negatively affected the exports to Hong Kong; secondly, the export markets in Japan and South Korea were more favorable than Hong Kong. As such, large quantities of river eel were sold to Japan and South Korea, and the quantity exported to Hong Kong has thereby reduced during the period from January to August. 

4.2 Exports of Prawn Increase Sharply; Continual Rise in Exports to the US & Japan

 

Export value of prawns from January to August amounted to US$ 304.1546 million, showing an increase of 1.4% versus the same period last year. The main importing countries were the US and Japan, and the total exports to the both countries accounted for 85.8% of China's total exports of prawn. Exports to South Korea, Hong Kong and Thailand have also increased marginally during the period.

• The US is The Main Importer of China's Prawn
  
  From January to August of this year, exports of prawns to the US amounted to US$ 200.9537 million, showing an increase of 2.5% versus the same period last year. The US is the main importer of China's prawn; its total exports to the US accounted for 64% of China's total exports of prawns during the period.
  
  
• Exports of Prawns to Japan See a Sharp Year-on-Year Increase 
  
  From January to August of this year, exports of prawn to the Japan totaled US$59.9673 million, showing an increase of 5.6% versus the same period last year. Japan made up 20% of China's total exports of prawn during the period.