Prince Edward Island Fishermen's Assoc.

REPORT
2011 CHINA SEAFOOD SHOW AND TRADE MISSION

SUBMITTED BY MICHEAL MCGEOGHEGAN – PRESIDENT
PEI FISHERMEN’S ASSOCIATION

*pictures will be featured in the Photo Gallery section of the peifa website

Overall, the November 2011 China Trade mission was a success in promoting premium PEI seafood product to prominent Chinese buyers and markets. There is huge potential in exports particularly in seafood to China. I feel there is a lot of opportunity in China for PEI, not the only international opportunity but it’s certainly a promising market for our products. The following points help to summarize the experience of the 2011 China Trade mission including specific information on lobster and tuna.

CANADIAN SEAFOOD IN CHINA:
• One of the major differences noticed in the 2010 China trade mission trip and the 2011 trip was the major increase in Canadian seafood advertised in local street markets and restaurants. In 2010, we only seen Canadian seafood in 5-star restaurants and hotels. But we also need to note the huge potential in these seemingly smaller street markets and restaurants (Figure 1 &2). For example, one small store in the local street market sold $100,000 worth of frogs each day which seemed unbelievable for such a tiny space. This shows the huge potential in not only the bigger restaurants and hotels but also in the local market and restaurants within China.

Figure 1 & 2: A local Chinese market featuring Canadian lobster
• In 2011, Chinese buyers seem more anxious to do business with Canadian and PEI companies. There is certainly an increased interested in our fishing products particularly lobster. Tuna, herring, mackerel, crab, etc. were all discussed by buyers at the seafood shows.
• In terms of infrastructure and wealth in China, it is very impressive to witness the growth of these provinces within China and subsequently the growth in seafood markets as well.

LOBSTER:
• In terms of Canadian lobster, China seems to be going through a learning curve in terms of getting use to another type of lobster other than the Australian lobster which is without claws.
• The major seafood shows were impressive to attend and fish buyers were also impressed with the Canadian and PEI products. Two chefs assisted in cooking frozen lobster meat in various ways to suit the Chinese customer (Figure 3 &4). Many felt the product was fresh and buyers seemed to love the flavors and presentation of the lobster.

Figure 3&4: PEI Booth at the 2011 China Seafood show
• In terms of price, it seemed as though some Canadian Companies were setting the price of the lobster too low in comparison with the high value Australian lobster.
• Some Chinese buyers had taken the PEI delegation to their respective restaurants where Canadian seafood was advertised. In terms of lobster, we lacked the information on price of our product in order to proceed with any type of sale or link for future sale. One of the PEI Mussel Companies was able to offer a stable price and deal with the Chinese buyer on the spot, thus securing future sales on the spot. If another trade mission is to go ahead in 2012, having a fixed price on lobster would help acquire these types of markets.
• As part of the PEI (and Canadian) delegation, I constantly promoted the PEI Lobster as well as all our important seafood and fisheries. We spoke of the superior taste and quality. We promoted the clean Canadian waters in which our seafood flourish and explained the sustainability of our fisheries. I was able to answer specific questions in terms of how the product was fished.

BLUEFIN TUNA:
• One of the most memorable experiences in China was the trip to a tuna auction at one of the larger seafood auctioning sites in the Province. The Canadian group arrived on site at 4 A.M. in the morning to watch hundreds of tuna from all over the world go through the auctioning process, and for some the butchering process (Figure 5&6). The auction was highly organized; quick paced and was certainly a cultural experience. The auction was complete before 6 A.M. with all traces of the auction and fish out of sight.

Figure 5 & 6 : Tuna Auction in China
• We watched as two Canadian Bluefin tuna were put through the auction and one of the tuna was from PEI. These tuna were auctioned quickly and were carefully and precisely butchered.
• The large building which currently housed the action was about to be replaced by another massive building being constructed across the river where it was believed to be a better location for the auction and could accommodate more fish and buyers.
• Upon return to Canada, it was reported that a tuna had been auctioned in China for $775,000 Canadian dollars!

On behalf of the PEI Fishermen’s Association, I would like to thank Innovation PEI for the opportunity to take part in the 2011 Trade Mission to China. For further information on my experience to China, please feel free to contact me at (902) 566-4050.

Sincerely,

Michael McGeoghegan
President
PEI Fishermen’s Association