Issue 15/01/2009

Live Fish Trade in Asia (Part 1)

By Sudari Pawiro-INFOFISH
Keeping fish alive for sale till the time of consumption, is financially most rewarding.
There is a growing market for live fish in East and Southeast Asian countries especially
where there is a large population of Chinese descendants.

Despite the seafood industry increasingly moving towards more value added and convenience
processed products, live food fish trade in Asia is still very much a growing sector for various
reasons; the demand for live food fish by restaurants is growing rapidly as a result of the
booming tourism sector and improving consumers’ disposable income; in Asia, especially in
Southeast and Far East Asia, traditionally there is a strong preference for live and fresh fish
instead of frozen fish; increasing supply, especially from aquaculture, resulting in affordable
price levels of live seafood; growing number of modern retail outlets like supermarkets that also
sell live food fish; technological developments that have improved packaging and transportation
methods for live food fish making it possible for live fish to reach distant destinations in shorter
time with low mortality.
There is also financial incentive to bring fish alive to the market as it means higher price than
other forms. For example, fresh/frozen red grouper in Hong Kong may fetch US$3.00 – 5.00/ kg,
while live one is priced between US$30.00 – 40.00/kg. Fresh/chilled red tilapia in supermarkets
in Malaysia is sold at around US$2.00/kg, but a live tilapia is priced at US$6.50/kg. So selling
fish in live form is actually the most rewarding value addition process which is a unique case in
the fishery industry, unlike selling a rooster or cattle in live form.
The popularity of live food fish can be witnessed in most of the seafood restaurants and big
supermarkets in Southeast and Far East Asia as the main markets for live food fish, especially
where there is a large population of Chinese descendants. The live food fish market in selected
Asian countries namely China, Hong Kong, Taiwan, Singapore and Malaysia, are explored.

China, PR

China is not only the largest producer of fishery products in the world, it is also the largest
market for seafood including live food fish. The bulk of the local farmed fish production,
especially freshwater species like carp is sold live to the domestic market. China produced
around 21 million mt of freshwater fish in 2004, which was largely sold live in the domestic
market and some exported live to neighbouring markets like Hong Kong (carps), S. Korea (carp
and eel) and Japan (eel).
In addition to the traditional wet market as the main outlet, almost all major supermarkets and
hypermarkets like Carrefour, ParkNShop, Trustmart, CRC Vanguard, Makro, Lianhua etc. also
sell a variety of live food fish, mainly from local sources. Imported high value live seafood like
grouper, lobster, geoduck and crabs are mainly targeted for high-end seafood restaurants in
major cities in China such as Shanghai, Guangzhou and Beijing.
 Before reaching the retail market, live food fish is usually channelled through fish wholesale
markets, which play a very important role in the seafood distribution system. There are some
wholesale markets which only deal in live food fish. Among them are Tong Chuan wholesale
market in Shanghai, Huangsha and Buji wholesale markets both in China’s southern province,
Guangdong which distribute high value imported live food fish.
Tong Chuan live fish wholesale market is claimed to be the largest in the Eastern part of
China, with around 100 000 mt sold annually and the daily turnover is said to be around RMB10
million (US$1.22 million). About 50% of the fish sold in this market goes to Shanghai city while
the rest is distributed to other cities in China.
The main species sold are shrimp, turtle, crab, lobster, geoduck, bivalve and freshwater
fishes like carps and eel. Imported live fish, mainly comes through other cities, such as
Guangdong and also from Hong Kong. Only a small amount is brought directly into Shanghai,
due to the high import tariff on live fish and strict inspection procedures in Shanghai compared
to other provinces in China.
Located in the centre of Guangzhou city, the capital of Guangdong province, Huangsha
wholesale market is the largest live food fish market in China with more than 160 000 mt of fish
traded and the turnover is around RMB7 billion (US$853 million) annually. The market, built in
1994 was recently upgraded to accommodate more traders and provide better facilities. While
the bulk of the fish sold is locally sourced, only around 10% is from imports. The main imported
species are lobster (mainly from Australia), geoduck and crab (Canada) and blue swimming
crab and grouper (Southeast Asia). Imported live fish is brought in via Hong Kong and also
directly through Guangzhou airport.
Meanwhile Buji wholesale market, located in Shenzen city, is an important distribution centre
for imported live food fish from Hong Kong through Yantian port to other cities in China.
Currently around 7 mt of high value live fish like grouper and lobster enter China through
Yantian port daily.
As there are many entry points for live food fish into China from Hong Kong and also from
neighbouring countries like Vietnam and Myanmar a lot of imports are unrecorded. Thus,
China’s statistics show very little import of live food fish which does not reflect the actual
quantity.
Direct import of live food fish into China is expected to increase in the coming years as a
result of the on-going trade liberalisation and growing domestic demand for high value fish in the
country.
China is also the largest fish exporter in the world and the country's is exports of live food fish
(eel and finfish only) in 2004 grew by 8% in quantity and 47.9% in value, amounting to 105 520
mt worth almost US$300 million. The growth was mainly attributed to the sharp increase in live
eel exports to Japan which reached more than 11 000 MT valued at US$102 million,
representing an increase of 95% in quantity and 158% in value over 2003. Exports of other live
fish, mainly bream, basses and other marine finfish, especially to Hong Kong and Japan went
up by 2.8% and 20.8% respectively in terms of quantity.

Hong Kong

Hong Kong, one of the main markets for high value live food fish, is also an important
distribution centre of live fish to China. Hong Kong seafood market for fish largely depends on
imports, as the local production is very insignificant. In 2004, Hong Kong imported 36 757 mt of
live food fish consisting of:

Groupers (and small amount of wrasse)

...................................... 5 780 mt
Freshwater finfish (mainly from China)
................................... 26 054 mt
Snapper............................ 39 mt
Other marine finfish.......4 884 mt

High value live marine food fish like grouper and Napoleon wrasse are mainly sold through
restaurants while freshwater fish and other low value species are mainly sold through retail
markets for household consumption. Demand is very high during the Chinese New Year and
other festive seasons such as Christmas and New Year.
In 2004, Hong Kong imported around 26 000 mt of live freshwater fish worth HK$197 million
(US$25 million) consisting mainly of carp, big head carp, tilapia, snake head, catfish etc.
However, since last September, Hong Kong consumers shunned fish products from China after
the local authority found malachite green in eel and further checks showed that eight other
fresh-water species from China were also contaminated with the chemical. Following the
findings, the local health authority requires all freshwater fish imported from China to be certified
and free from malachite green; random inspection to be done in the territory’s wholesale
markets; double inspection to be carried out at borders both in China (Shenzhen) and in Hong
Kong; and also proposes that all fish farms in China are inspected and certified.
In August 2005, the Health authority of Hong Kong tightened its control on the import of live
coral-reef fish such as grouper and Napoleon wrasse due to the increasing cases of ciguatera
poisoning. Ciguatera is a poisonous substance associated with coral reef fish that is rarely fatal
but unpleasant nonetheless. To reduce ciguatera poisoning cases, the Hong Kong government
is expected to set up a database that will show the fishing areas affected by ciguatera. Based
on information from the database, the government will not issue licenses to traders importing
fish from the affected areas. While at the same time consumers will be advised not to consume
or buy fish originating from those areas.
Despite this, a positive market trend is noted on live grouper imports. During the first nine
months of 2005, live grouper imports went up by 5.7% in quantity over the same period of 2004,
reaching 4 426 MT worth HK$415 million (US$53.5 million). A growing demand for cheaper
grouper species is seen, as indicated by the increasing imports of flower and other grouper
species, which were up by 24.5% and 54% in volume respectively last year. Meanwhile, imports
of high value species like leopard/coral trout grouper were down by 2.5%. Overall imports of live
marine finfish reached 8 296 mt worth HK$491.6 million (US$63.4 million) during the period of
January-September 2005, up 5.7% and 3.4% in quantity and value respectively.
In 2004, more than 41% of the live grouper imported into Hong Kong consisted of spotted
and leopard coral trout grouper, which accounted for 61% of the value reflecting the higher
prices of the species and volume wise followed by green grouper (26.9%), tiger grouper (5.7%),
flower grouper (4.1%) and others (23.3%).
The main suppliers of live groupers to Hong Kong are the Philippines, Thailand, Indonesia,
Malaysia and Australia which together took more than 91% share of the total imports in 2004.
Supply from the Philippines reached the highest at 1 558 mt in 2003 then slightly dropped to 1
542 mt in 2004, consisting mainly of leopard coral trout grouper, flower grouper, green grouper
and tiger grouper.
Thailand, the second largest supplier, exports mainly cultured green grouper (E. coioides),
but its exports dropped significantly from 1 385 mt in 2003 to 1 046 mt in 2004, a decline of
22.8%. Exports from Indonesia were also on a downward trend from 1 266 mt in 2001 to 988 mt
in 2003, before moving up again to 1 035 mt in 2004.
Indonesia was the main supplier of leopard coral trout and other groupers such as red and
mouse grouper. Similarly exports from Australia also declined mainly due to the strict
conservation measures enforced by the government in the Great Barrier Reef, affecting grouper
catches.
 Only Malaysia has consistently been able to increase its exports of live grouper to Hong
Kong over the years. Its exports increased from only 386 mt in 2001 to 846 mt in 2004, up by
119%. Like other Southeast Asian countries, Malaysia supplies mainly green grouper, leopard
coral trout, tiger grouper and other groupers. In value terms, however, Australia is still the
largest exporter, supplying mostly high value leopard coral trout grouper.

Taiwan

Similar scenario as in Hong Kong and China can also be seen in Taiwan where restaurants
offer live fish. Grouper, in particular, being an expensive fish, is typically found in high-class
Chinese restaurants specialising in seafood, while less expensive fish such as tilapia and Asian
seabass are more commonly found at smaller, buffet-style Chinese restaurants and streetside
food outlets. The period from October to April sees an increase in consumption of fish at the
restaurant and hotel levels as it is a season for weddings as well as year-end holiday
celebrations and festive season. As large volumes of live food fish and shellfish, including
shrimp and grouper, are consumed at such functions, the product is usually purchased directly
from seafood wholesalers.
Even though Taiwan is a major market for live seafood, their domestic production from
aquaculture is largely able to meet demand. In fact Taiwan exports large amounts of live food
fish to its neighbours, mainly live eel to Japan. Overall live fish exports from Taiwan in 2004 was
20 919 mt worth NT$5.2 billion (US$163 million), and the bulk of it (17 516 mt worth NT$4.9
billion) was live eel destined mainly to Japan.
Grouper supply from domestic production, mainly from aquaculture, increased tremendously
over the years, from only 2 104 mt in 1995 to 12 512 mt in 2004, representing an increase of
around 495% or 55% annually. The bulk of the production is consumed locally and only a small
amount is exported mainly to Hong Kong and Singapore, all in live form. Nevertheless, the
export of live grouper reached the highest at 404 mt valued at NT$33.7 million in 2004, an
increase of 44% in quantity and 3.7% in value over the previous year. Import of live groupers for
food is therefore relatively small in quantity
Though imports of live food fish have been increasing over the past few years reaching the
highest level of 12 689 MT worth NT$2.3 billion in 2004, representing an increase of 8% in
quantity and 4.5% in value over 2003, it was largely due to higher imports of live crab and
swamp eel. Thailand was the main supplier of shrimp, crab, swamp eel and bivalves. The other
important suppliers were Indonesia (shrimp, swamp eel), Australia (lobster), the Philippines
(crab), Vietnam (bivalves and crab) and New Zealand (mussel).