China Bans Seafood Imports From Japan | China Seafood Analysis | Seafood Import Export

On August 24, 2023, Chinese customs announced that it would stop importing all fish products originating in Japan - meaning the ban could restrict marine products other than seafood, such as sea salt and seaweed.

In a statement, the customs department said the move was aimed at preventing "the risk of radioactive contamination of food safety from the discharge of nuclear-contaminated water from Fukushima, Japan" and protecting the health of Chinese consumers. This will have a significant impact on Japanese seafood exports.

China's seafood imports grow 35% to $19.13 billion in 2022, a figure that comes on the heels of weaker imports in 2020 and 2021 and surpasses the previous record of $15.8 billion in 2019, a new record that suggests that COVID-19's stringent import agreements have had a lower-than-expected impact on consumption. Seafood imports rose 21% to 4.19 million tons, slightly below the 2019 record of 4.4 million tons.

In response, experts said that China, the second largest importer after the U.S., will continue to grow its market in the coming years. Chinese imports grew in all four quarters of 2022, while U.S. imports declined in the third and fourth quarters. Strong import figures in the first two months of the year are encouraging.

This record underscores the resilience of Chinese demand, although strict COVID-19 import agreements and nationwide embargoes suggest limited spending. Sales in wholesale channels and supermarkets appear to have declined, but this was offset by increased sales in new channels such as e-commerce, group buying and live streaming.

1. China's source of seafood product imports

Ecuador was the largest supplier to China in 2022. The country is the world's largest shrimp exporter and has exported $3.56 billion worth of seafood to China. This is a 63% increase from 2021.

It is closely followed by Russia at $2.76 billion, up 48% year-on-year. Vietnam was another big supplier, worth $1.7 billion, ahead of India at $1.26 billion. Canada and the United States, the main suppliers of Boston lobster, recorded strong growth of $1.23 billion and $1.14 billion, respectively. Norway, the world's second largest seafood exporter, was a surprise seventh, due in large part to sluggish salmon imports from China.

The top five countries produce the most important species, such as warm-water shrimp, balsa, king crab, snow crab and lobster, which are all major species in China.

2. By type of imported seafood products

Analyzing China's imports by species yields a clear picture of the importance of crustaceans to Chinese seafood buyers.

In 2022, China's imports of crustaceans (codes 0306 and 1605) are valued at $9.8 billion, up 37% from 2021. In terms of volume, crustacean imports grew 34 percent to 1.126 million tons.

Last year, China imported $5.65 billion worth of warm-water shrimp, most of which was farmed, which is a 53 percent increase from 2021. Imports rose 43 percent to 874,000 tons, the highest direct import volume on record.

There are many reasons why shrimp is so popular in China, and the decline in China's domestic shrimp production has been a boon to importers. The country is expected to become increasingly dependent on shrimp imports.

Another attractive shrimp import is cold water shrimp (Customs code 030616). Despite higher market prices, the value of imports increased by 108 percent to US$542.6 million and the volume of imports increased by 69 percent to 72,000 tons.

China also imports large quantities of crabs and lobsters. live, fresh, or frozen crabs, code 030633, increased by 6 percent to $1.3 billion in 2022 compared to 2021, and volume increased by 7 percent to 74,597 tons. Most of China's imports of large crabs come from Russia, supplying $710 million worth, up 10 percent. After the US and Europe banned or restricted imports of Russian king crab in June last year, more live king crab was exported to China and South Korea than frozen king crab to the US and Europe.

However, a significant increase in supply from Russia has affected prices. Prices for Russian king crab, snow crab, and Russian cold-water shrimp have declined over the last year. But lower prices mean more demand for consumers in China, Japan and South Korea, encouraging imports.

Rarely, China imported fewer Boston lobsters. in 2022, China imported $614.4 million worth of live or frozen Boston lobsters, down 10 percent, and imports fell 9 percent to 23,341 tons.

2021 was a good year for lobster imports. 2022's most important market, Shanghai, was closed for two months, and lobster imports resumed in the second half of 2022.

On the other hand, imports of live, fresh or frozen rock lobster, code 030631, increased significantly. imports valued at $892.3 million in 2022 increased by 43 percent, and the volume of imports increased by 57 percent to 16,932 tons.

China also imported $5.1 billion worth of whole frozen fish, equivalent to 2.06 million tons. Compared to 2021, this represents a 45 percent increase in value and a 28 percent increase in volume. Of course none of this is really for domestic consumption; 80 or 90 percent of this fish is imported, processed and re-exported.

Last year, China's largest supplier of frozen whole fish was Russia, with exports valued at $1.78 billion, up 71 percent, while Russian exports were 886,000 tons, up 54 percent.

Chinese salmon imports also grew less than expected. Last year, China imported $736.7 million worth of whole fresh Atlantic salmon, an increase of 26 percent. However, imports fell by 8 percent to 49,018 tons.

3. Status of China's imports of Japanese fish products in 2023

Decrease of 30% compared to the same period in July 2023.On August 18, 2023, China Customs released the latest statistics showing that China's imports of aquatic products from Japan in July totaled more than 32 million U.S. dollars, or about 4.7 billion yen, which is a decrease of about 30% compared to the same period in 2022.The latest statistics show that China's imports of aquatic products from Japan in July totaled more than 32 million U.S. dollars, or about 4.7 billion yen. The amount of imports also fell by more than 30 percent compared to June.

Preliminary analysis suggests that this decline is related to China's tightening of controls on Japanese fish imports. Particularly after Tokyo Electric Power Company's Fukushima Daiichi nuclear power plant announced that it was discharging diluted and treated nuclear wastewater into the ocean, customs authorities across China have been conducting stricter inspections for radioactive substances in Japanese aquatic products. The stricter inspection and approval process has led to an increase in the time cost of importing fresh fish and other Japanese fish products, thus affecting their import volume.

According to Japan's Ministry of Agriculture, Forestry and Fisheries (MAFF), Japan's fish exports to China reached 87.1 billion yen last year, ranking first among all countries and regions. However, this year's exports have decreased significantly, which in turn has affected the supply of ingredients to some Japanese restaurants in China. Restricted by the decline in imports, some restaurants have had to turn to Chinese ingredients to meet market demand.

Japan officially discharged nuclear effluent, and China's General Administration of Customs issued a notice deciding to suspend all imports of aquatic products (including edible aquatic animals) originating from Japan from August 24, 2023 onwards. This move will affect the global import and export of aquatic products. According to Tendata data, the popular markets for aquatic products are mainly: the United States, Vietnam, China, the Philippines, and Russia. The popular origins are: Vietnam, Argentina, Thailand, China, India, Pakistan, Japan, South Korea, Ecuador, Indonesia. China abandons the Japanese aquatic market for imports and can turn to the local aquatic market and neighboring countries for aquatic products. Seafood food importers and exporters, should adjust the trade strategy in time to seize new opportunities.

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