Fisheries
5. What is the amount of fishery products traded?
- 5.1 What are the general trends in trade?
- 5.2 In what form are fishery products traded?
- 5.3 How does this trade affect the economy of various countries?
- 5.4 What are the markets for specific types of fish products?
5.1 What are the general trends in trade?
The source document for this Digest states:
In 2002, total world trade of fish and fish products increased to US$58.2 billion (export value), representing a 5 percent increase relative to 2000 and a 45 percent increase since 1992. In terms of quantity, exports were reported to be 50 million tonnes (live weight equivalent), having grown by 40.7 percent since 1992, but showing a slight decline (1.0 percent) compared with 2000 levels. The quantity of fish traded has remained stagnant over the last few years following decades of strong increases. Many of the economic factors responsible for the high growth in world fishery trade in the previous decade have now diminished in importance or are not strong enough to sustain past performance levels. While preliminary estimates for 2003 indicate a slight increase in the value of fishery exports, it is unlikely that the trends of pre-2000 years will be repeated in the short term, especially given setbacks resulting from geopolitical tensions.
In 2002, China overtook Thailand for the first time to become the world’s main exporter of fish and fish products, with exports valued at an estimated US$4.5 billion. Notwithstanding this achievement, China’s fishery exports represented only 1.4 percent of its total merchandise exports and 25 percent of its agricultural exports (excluding forestry products). China has experienced remarkable increases in its fishery exports since the early 1990s (average growth of 11 percent per year in the period 1992–2002) and in particular since 1999 (average growth of 24 percent in 1999–2002). These increases are linked to growing production, as well as to the development of China’s fish-processing industry. The latter offers competitive labour and production costs. In addition to exports from domestic fisheries production, China also exports reprocessed imported raw material, creating a strong value-addition in the process. Imports of fish and fish products have increased significantly over the last decade, rising from US$0.7 billion in 1992 to US$2.2 billion in 2002, making China the world’s eighth largest fish importer. The growth was particularly marked in the last few years, with a 94 percent increase in imports from 1999. With its accession to the World Trade Organisation (WTO) in late 2001, China had to commit itself to lowering its import duties, which decreased from an average import tariff as high as 15.3 percent in 2001 to 11 percent in 2003 and 10.4 percent in 2004.
In 2002, Thailand, which had been the main exporter of fish and fish products since 1993, reported export values of US$3.7 billion, 9 percent lower than in 2001 and 16 percent below 2000 values. Norway was the third largest exporter with exports valued at US$3.6 billion, followed by the United States (US$3.3 billion), Canada (US$3.0 billion), Denmark (US$2.9 billion) and Viet Nam (US$2.0 billion). As a result of the growth in its aquaculture production, Viet Nam has significantly increased its exports of fish and fish products in the last decade (from US$0.3 billion in 1992 to US$2.0 billion in 2002), with a more accelerated growth (29 percent per year) since 1999. In 2002, the main target markets for Vietnamese exports were China, Japan and the United States. Forty-eight percent of the country’s exports consisted of shrimps (mainly in frozen form).
World fish imports reached a new record of more than US$61 billion in 2002. Developed countries accounted for about 82 percent of the total value of imports of fish products. Despite the 12 percent decrease in imports from 2000 levels, Japan was once again the largest importer of fish and fish products, with a 22 percent share of the world import value in 2002. Japanese fishery imports (US$13.6 billion) accounted for 4 percent of its total merchandise trade. The United States, besides being the world’s fourth largest exporting country, was the second largest importer, with imports remaining relatively stable at US$10 billion since 2000. In 2002, the EU further increased its dependency on imports for its fish supply by 10 percent since 2000. Spain, with US$3.9 billion, was the world’s third largest importer of fish and fish products, followed by France (US$3.2 billion), Italy (US$2.9 billion), Germany (US$2.4 billion) and the United Kingdom (US$2.3 billion). Preliminary data suggest that in 2003 major importing markets increased their imports of fish and fish products by about 10 percent.
In 2002, a large share of fish production entered international marketing channels, with about 38 percent (live weight equivalent) exported as various food and feed products. Developed countries exported more than 22 million tonnes of fish (in live weight equivalent) in 2002; although a part of this trade may be re-exports, this amount corresponds to nearly 70 percent of their production. Exports from developing countries (28 million tonnes) were around one-quarter of their combined production.
The share of developing countries in total fishery exports was 49 percent by value and 55 percent by quantity. A significant share of these exports consisted of fishmeal. In 2002, developing countries contributed about 66 percent, by quantity, of world non-food fishery exports. Developing countries have also significantly increased their share in the quantity of fish exports destined for human consumption, from 43 percent in 1992 to 49 percent in 2002.
In many countries there is considerable two-way trade in fish products. The trade surplus is significant in Africa, China, Oceania and Latin America and the Caribbean. In 2002, 95 countries were net exporters of fish and fishery products, with Canada, Chile, Norway, Thailand and Viet Nam reporting net export values of more than US$1.5 billion each and with Denmark, Iceland, India, Indonesia, Peru and Taiwan Province of China each having net exports worth more than US$1 billion. Although there is a strong trade in fish and fish products among the more developed economies (mostly demersal species, herring, mackerel and salmon), trade tends to flow from the less-developed to the more-developed countries (mainly tuna, small pelagics, shrimps and prawns, rock lobsters and cephalopods). In 2002, about 74 percent of the import value was concentrated in three main areas: the EU, Japan and the United States. In terms of quantity, developed countries imported over 32 million tonnes (live weight equivalent), of which 68 percent was fish for human consumption, while developing countries imported 19 million tonnes (live weight equivalent), of which 47 percent consisted of fish for food.
The maps shown in Figure 30
indicate trade flows of fish and fish products by continent for the period 2000–02. The overall picture presented by these maps, however, is not complete. Although the countries that reported their imports over this period (some 158 countries) account for 98 percent of the estimated world total, some continental groups are not covered completely (e.g. about one-third of African countries did not report their trade in fish products by country of origin/destination). In this case, the data indicated should not be taken to represent the total trade flow of the continental groups to which they refer.
Source & ©: FAO "The State of World Fisheries and Aquaculture, 2004"
Part 1: World review of fisheries and aquaculture, Fish trade
5.2 In what form are fishery products traded?
The source document for this Digest states:
Because fish is highly perishable, more than 90 percent of internationally traded fish and fish products are in processed form. In terms of quantity, the share of live, fresh or chilled fish has increased during the last decade from 9 percent in 1992 to 10 percent in 2002. This growth is a result of improved logistics and technology and increased demand. Live fish is particularly appreciated in Asia and in niche markets in other countries, mainly among immigrant Asian communities. In these countries, aquariums and tanks displaying live fish have become relatively common in seafood restaurants, supermarkets and retail outlets. Trade in live fish has increased in recent years due to technological developments. An elaborate network of handling, transport, distribution, display and holding facilities has been developed to support the live fish trade. New technological systems include especially designed or modified tanks and containers, as well as trucks and other transport vehicles equipped with aeration or oxygenation facilities to keep fish alive during transportation or holding/display.
Exports of frozen fish have increased during the last decade, rising from a share of 28 percent of the total quantity of fish exports in 1992 to 35 percent in 2002. Exports of prepared and preserved fish were 6.2 million tonnes (live weight equivalent) in 2002, representing a share of 12 percent of total exports (10 percent in 1992). Exports of cured fish accounted for 5 percent of total exports in 2002, but this share had declined slightly over the preceding decade. In 2002, exports of non-food products represented 36 percent of total exports in terms of quantity, a large share of which originated from Latin American countries.
Despite a slight decline in exports, shrimp continues to be the main fish commodity traded in value terms, accounting for about 18 percent of the total value of internationally traded fish products in 2002. The other main groups of exported species were groundfish (10 percent: e.g. hake, cod, haddock and Alaska pollock), tuna (9 percent) and salmon (8 percent). In 2002, fishmeal represented around 4 percent of the value of exports and fish oil less than 1 percent. Products derived from aquaculture production accounted for an increasing share of the total international trade in fishery commodities, with an estimated 22 percent of the export quantity. It is not currently possible to quantify the exact amount of fish trade originating from aquaculture because most countries do not specify the farmed origin in their fishery trade statistics.
Source & ©: FAO "The State of World Fisheries and Aquaculture, 2004"
Part 1: World review of fisheries and aquaculture, Fish trade
5.3 How does this trade affect the economy of various countries?
The source document for this Digest states:
For many economies, and in particular for developing nations, trade in fish represents a significant source of foreign currency earnings, in addition to the sector’s important role in income generation, employment and food security. In a few cases, fishery exports are crucial for the economy. For example, in 2002 they represented more than half of the total value of exported commodities in the Faeroe Islands, the Federal States of Micronesia, Greenland, Iceland, the Maldives and Saint Pierre and Miquelon.
Figure 31:Exports Agricultural Products The net receipts of foreign exchange derived from fish in developing countries (i.e. the total value of their exports less the total value of their imports) increased from US$11.6 billion in 1992 to US$17.4 billion in 2002 (Figure 31
), despite the 3 percent decline in net receipts since 2000 – these figures were significantly higher than those for other agricultural commodities such as rice, coffee and tea. LIFDCs play an active part in the trade of fish and fish products; in 2002, they accounted for more than 20 percent of the total value of fishery exports, with net export revenues estimated at US$8.2 billion. Trade in developing countries is gradually evolving from the export of raw material for the processing industry in developed countries to high-value live fish or value-added products. Some countries are also importing raw material for further processing and re-export. Many developed countries have invested in processing facilities in developing countries, where costs are lower. Also, numerous projects have been assisting fish-processing companies in several developing countries to produce more sophisticated products through further processing in order to increase the companies’ profitability and the contribution of the fisheries sector to the gross national product. The results of these projects have often been unsatisfactory, largely because of inadequate importer–customer relationships, little or no advantage in terms of quality and price, and the failure of products to meet the needs of consumers – shortcomings resulting from inadequate market research. Experience has shown that the key to success lies in strong customer partnerships, sound market research, excellent quality of the product, reliability in supply, a constant drive for improvement, price competitiveness and attractive packaging.
In addition to value-addition and third-country processing in developing countries, other major issues concerning international trade in fish products that have been prominent in recent years include changes in quality and safety control measures in the main importing countries; the introduction of new labelling requirements and the concept of traceability in major markets in developed countries; chemical residues in aquaculture products; the general public’s concern about overexploitation of certain fish stocks, especially groundfish; the sustainable development of aquaculture, including its future feed requirements; IUU fishing; international trade negotiations in the WTO; the expansion of regional trade areas and the increasing number of new bilateral trade agreements. With the entry of China into the WTO in 2001, all major fishery countries other than the Russian Federation and Viet Nam (which have started negotiations to become members) are now members of the organization. Parallel to the increase in the WTO’s membership, a number of bilateral trade agreements with strong relevance to fish trade have been signed. The full impact and long-term effects of these agreements, in addition to or as a substitute for broader multilateral agreements, remain to be seen.
Source & ©: FAO "The State of World Fisheries and Aquaculture, 2004"
Part 1: World review of fisheries and aquaculture, Fish trade
5.4 What are the markets for specific types of fish products?
5.4.1 Salmon
The source document for this Digest states:
2003 was a positive year for salmon producers and traders worldwide. Increased prices particularly benefited European producers in Ireland and the United Kingdom. Chile and Norway enjoy a comparatively lower cost structure and can operate profitably at lower price levels. They were therefore profitable in earlier years when the European industry generally was experiencing heavy losses. Chile, however, was to some extent hurt by a weaker dollar in the United States, which is the major market for its fresh products.
Source & ©: FAO "The State of World Fisheries and Aquaculture, 2004"
Part 1: World review of fisheries and aquaculture, Fish trade
5.4.2 Tuna
The source document for this Digest states:
Japan is the top world market for sashimi-grade tuna. However, as in the case of shrimp, demand has declined in recent years or shifted to lower-priced species. The farming of bluefin tuna has had an important impact on the sashimi market in Japan, resulting in an overall decline of prices. The reduction of the EU canned tuna import tariff (from 24 percent to 12 percent) for a quantity of 25 000 tonnes from countries such as Indonesia, the Philippines and Thailand, was not welcomed by the main European tuna canners.
Figure 32:Prices Skipjack Tuna On the other hand, Spanish canners are outsourcing and new canning plants have been installed by Spanish companies in Central America (El Salvador and Guatemala). The concentration of the world tuna industry in fewer hands is continuing. Canned tuna consumption is rising in European countries, which now represent the main outlet for canned tuna. By contrast, the United States market for canned tuna is declining, while that for pouch (as opposed to rigid plastic) packs is increasing. Prices of skipjack tuna in Africa, Thailand and the United States are shown in Figure 32
.
Source & ©: FAO "The State of World Fisheries and Aquaculture, 2004"
Part 1: World review of fisheries and aquaculture, Fish trade
5.4.3 Other finfish
The source document for this Digest states:
Relatively strong supplies of certain groundfish species (Alaska pollock and Argentinian hake) combined with resumed exports from China to EU markets and flat consumer demand had the effect of exerting downward pressure on frozen groundfish prices during 2003. Groundfish prices in the United States are shown in Figure 33
. With somewhat reduced Alaska pollock supplies as well as strong Russian and Chinese demand during the first half of 2004, this negative trend came to an end and prices for certain groundfish products started to increase during the first quarter of the year. A continued scarcity of Alaska pollock during the second half of 2004 is likely to mean a general upward movement of groundfish prices in international markets despite flat demand in many key markets.
Figure 33:Prices Groundfish Continuous low prices, unsolved problems related to antibiotics and dumping allegations were all detrimental to groundfish exports from Asia. The basa (catfish) industry in Viet Nam was hit particularly hard: Vietnamese exports to the United States fell by 50 percent as a result of anti-dumping duties ranging between 37 and 64 percent that have been in force since June 2003. Consequently, basa fish swamped the Southeast Asian and Australian markets, creating difficulties in the markets for other freshwater fish.
Source & ©: FAO "The State of World Fisheries and Aquaculture, 2004"
Part 1: World review of fisheries and aquaculture, Fish trade
5.4.4 Shrimp
The source document for this Digest states:
During 2003, shrimp imports in several key markets reached new highs. Sales to the world’s largest shrimp market, the United States, exceeded 500 000 tonnes for the first time – 17 percent higher than imports in 2002. Annual imports of shrimp into Japan during 2003 declined by 6 percent compared with the previous year, continuing a long-term downward trend that is a consequence of the country’s continued difficult economic situation.
Figure 34:Prices Shrimp In Europe, shrimp imports increased in 2003, as a result of a strong euro and competitive international prices. Brazil, China, Ecuador, India, Thailand and Viet Nam are under investigation for dumping in the United States, which will create some problems for their sales there in the short term. Prices remained low during most of 2003, and there are no indications of an increase in 2004. Shrimp prices in the United States and Japan are presented in Figure 34
.
Source & ©: FAO "The State of World Fisheries and Aquaculture, 2004"
Part 1: World review of fisheries and aquaculture, Fish trade
5.4.5 Cephalopods
The source document for this Digest states:
On the cephalopod market, lower Illex catches were offset by higher production of Loligo squid. Octopus catches were relatively low. The beginning of 2004 was marked by reduced squid landings, notably in the Southwest Atlantic. Spain remains the leading European squid market. During 2003, frozen imports (Illex and Loligo) increased by 7 percent over 2002 levels to almost 160 000 tonnes. This increase was the result of a 22 percent jump in Loligo imports that more than compensated for the 6 percent drop in frozen Illex imports. In 2003, the Italian squid market followed a similar trend to that of Spain, with a rise in frozen imports and a shift from Illex towards Loligo.
Figure 35:Prices Cephalopods Total imports into Italy reached 85 000 tonnes, 8 percent higher than in 2002. Japan continued to be the main market for cephalopods worldwide in 2003, but its imports were hit by low arrivals of octopus from Morocco. Imports by Japan in 2003 were 56 000 tonnes, down from 72 000 tonnes in 2002. The octopus resource in the Central East Atlantic is under stress, and no improvement to the supply situation is likely in the short term. Prices for all cephalopod products increased in 2004. Figure 35
presents cephalod prices in Japan.
Source & ©: FAO "The State of World Fisheries and Aquaculture, 2004"
Part 1: World review of fisheries and aquaculture, Fish trade
5.4.6 Fishmeal
The source document for this Digest states:
The bulk of fishmeal production – about 60 percent – is exported each year. In 2003, fishmeal production in the five major exporting countries amounted to 4.5 million tonnes, representing a 12 percent decrease from 2002. Catches of fish for reduction were low in all major fishmeal-producing countries.
Figure 36:Prices Fishmeal However, in the first six months of 2004, fishmeal production increased by 40 percent and it is likely that total production will return to normal levels. Fishmeal prices, which increased strongly in 2003, are expected to decline somewhat, but good demand, especially from China and other Asian countries, will keep them at attractive levels for the producing countries. Prices for Germany and the Netherlands are given in Figure 36
.
Source & ©: FAO "The State of World Fisheries and Aquaculture, 2004"
Part 1: World review of fisheries and aquaculture, Fish trade
