Required Report - public distribution

**Date:** 12/31/2007

**GAIN Report Number:** CH7094

CH7094

**China, Peoples Republic of**

**Fishery Products**

**Annual**

**2007**

**Approved by:**

![](media/image1.wmf)William Westman

AgBeijing

**Prepared by:**

Jorge Sanchez, Wu Xinping and Angie Han

**Report Highlights:**

In 2008, China\'s aquatic production is forecast at 56.2 MMT, up from
the estimated 54.7 MMT in 2007. Production growth is mainly driven by
strong domestic consumption due to greater disposable income growth and
export-oriented aquatic processing. Aquatic trade value is forecast to
increase from the estimated \$9 billion for export and \$3.6 billion for
import in 2007 with trade surplus approaching \$6 billion. China is the
largest importer of U.S. seafood products, while the United States is
the second largest buyer of China\'s aquatic products. The new
U.S.-China Agreement on Food and Feed Safety is expected to enhance the
safety of China\'s aquatic product exports to the United States and
facilitate trade in 2008 and beyond.

Includes PSD Changes: No

Includes Trade Matrix: Yes

Annual Report

Beijing \[CH1\]

\[CH\]

Table of Contents

[**Executive Summary 3**](#executive-summary)

[Production 3](#production)

[Aquatic production is forecast to reach 56 MMT in 2008
3](#aquatic-production-is-forecast-to-reach-56-mmt-in-2008)

[Aquatic catch production remains stable
5](#aquatic-catch-production-remains-stable)

[Aquaculture farmed area expansion continues
6](#aquaculture-farmed-area-expansion-continues)

[Aquaculture production faces new challenges
7](#aquaculture-production-faces-new-challenges)

[Aquatic processing is mainly driven by exports
7](#aquatic-processing-is-mainly-driven-by-exports)

[Consumption 8](#consumption)

[Trade 10](#trade)

[Aquatic product trade is expected to continue growing in 2008
10](#aquatic-product-trade-is-expected-to-continue-growing-in-2008)

[Processing trade continues to boost imports
10](#processing-trade-continues-to-boost-imports)

[Fishmeal imports are forecast at 1 MMT in 2008
11](#fishmeal-imports-are-forecast-at-1-mmt-in-2008)

[Value-added aquatic product exports continue to increase
11](#value-added-aquatic-product-exports-continue-to-increase)

[Aquatic exports are subject to new requirements based on US-China Food
Safety Agreement
12](#aquatic-exports-are-subject-to-new-requirements-based-on-us-china-food-safety-agreement)

[Policy 13](#policy)

[China's policy favors smooth growth for aquatic production and exports
13](#chinas-policy-favors-smooth-growth-for-aquatic-production-and-exports)

[Implementation of aquaculture licensing system advanced
14](#implementation-of-aquaculture-licensing-system-advanced)

[The policy on aquatic processing trade remains unchanged
14](#the-policy-on-aquatic-processing-trade-remains-unchanged)

[Domestic aquatic catch is restricted
14](#domestic-aquatic-catch-is-restricted)

[Trade Related Issues 14](#trade-related-issues)

[Marketing 15](#marketing)

[Chinese aquatic consumption pattern
15](#chinese-aquatic-consumption-pattern)

[Healthy, nutritious and safe seafood
15](#healthy-nutritious-and-safe-seafood)

[Variety 16](#variety)

[Competition 17](#competition)

[Trade Tables 18](#trade-tables)

[Trade of Certain Aquatic Products (Volume: MT; Value: \$ Million)
18](#trade-of-certain-aquatic-products-volume-mt-value-million)

[Aquatic Products Trade by Country of Origin (Value: \$ million)
19](#aquatic-products-trade-by-country-of-origin-value-million)

[Imports of Fish, Frozen by Country of Origin (Value: \$ million;
Volume: MT)
20](#imports-of-fish-frozen-by-country-of-origin-value-million-volume-mt)

[Imports of Flatfish by Country of Origin (Value: \$ million; Volume:
MT)
21](#imports-of-flatfish-by-country-of-origin-value-million-volume-mt)

[Imports of Cod by Country of Origin (Value: \$ million; Volume: MT)
22](#imports-of-cod-by-country-of-origin-value-million-volume-mt)

[Imports of Plaice by Country of Origin (Value: \$ million; Volume: MT)
23](#imports-of-plaice-by-country-of-origin-value-million-volume-mt)

[Imports of Salmon by Country of Origin (Value: \$ million; Volume: MT)
24](#imports-of-salmon-by-country-of-origin-value-million-volume-mt)

[Imports of crustaceans by Country of Origin (Value: \$ million; Volume:
MT)
25](#imports-of-crustaceans-by-country-of-origin-value-million-volume-mt)

[Imports of Mollusks and Other by Country of Origin (Value: \$ million;
Volume: MT)
26](#imports-of-mollusks-and-other-by-country-of-origin-value-million-volume-mt)

[Exports of Fish Fillet by Destination (Value: \$ million)
27](#exports-of-fish-fillet-by-destination-value-million)

[Exports of Prepared and Packaged Fish and Caviar by Destination (Value:
\$ million)
27](#exports-of-prepared-and-packaged-fish-and-caviar-by-destination-value-million)

[Exports of Prepared and Preserved Crustacean and Mollusks by
Destination (Value: \$ million)
28](#exports-of-prepared-and-preserved-crustacean-and-mollusks-by-destination-value-million)

[Exports of Prepared and Preserved Mollusks by Destination (Value: \$
million)
28](#exports-of-prepared-and-preserved-mollusks-by-destination-value-million)

[Exports of Shrimps and Prawns by Destination (Value: \$ million;
Volume: MT)
29](#exports-of-shrimps-and-prawns-by-destination-value-million-volume-mt)

[Exports of Shrimps and Prawns by Category (Value: \$ Million; Volume:
MT)
30](#exports-of-shrimps-and-prawns-by-category-value-million-volume-mt)

[Exports of Crawfish by Destinations (Value: \$ million)
31](#exports-of-crawfish-by-destinations-value-million)

[Exports of Eel Products by Destinations (Value: \$ million)
31](#exports-of-eel-products-by-destinations-value-million)

[Exports of All Tilapia Products by Destination (Value: \$ million)
32](#exports-of-all-tilapia-products-by-destination-value-million)

[Exports of Tilapia/Prepared or Preserved by Destination (Value: \$
million)
32](#exports-of-tilapiaprepared-or-preserved-by-destination-value-million)

[Exports of Tilapia/Fillet by Destination (Value: \$ million)
32](#exports-of-tilapiafillet-by-destination-value-million)

[Exports of Tilapia/Fillet by Destination (Volume: MT)
33](#exports-of-tilapiafillet-by-destination-volume-mt)

[Exports of Tilapia/Prepared and Preserved by Destination (Volume: MT)
33](#exports-of-tilapiaprepared-and-preserved-by-destination-volume-mt)

# Executive Summary

China's 2008 aquatic production is forecast to reach 56.2 MMT, up three
percent from an estimated 54.7 MMT in 2007. Much of this production
growth is due to the continued expansion of aquaculture which accounted
for 68 percent of total aquatic production during 2006. China's aquatic
production increase is linked both to a strong export market as well as
its growing domestic demand. China's rapid economic growth has provided
its consumers increased disposable incomes, thereby encouraging greater
aquatic product consumption. The expansion of the aquaculture area in
both costal seawater and fresh water contributed greatly to the aquatic
production growth while the aquatic catch production remains stable to
declining in the coming years. Yield increases triggered by
technological advances also boosted production. Concurrently, the
aquatic processing sector, which is mainly export-driven, is also
expected to expand further in the coming years.

Aquatic trade is forecast to grow in 2008 with China's trade surplus
expected to hit \$6 billion as a result of the dynamic processing trade
and export-oriented aquaculture. China is currently the largest
recipient of U.S. seafood exports, while the United States is the second
largest recipient of China's processed aquatic exports. Aquatic trade
between China and the United States is forecast to grow in 2008 with
"Fish/Frozen" (HS Code 0303) continuing to be the major category
imported from the United States while the export mix to the United
States is diversified and valued-added. The U.S.-China Agreement on Food
and Feed Safety signed in December 2007 is expected to enhance the
safety of Chinese aquatic product exports to the United States and
facilitate smooth trade in 2008 and beyond.

Sustained high GDP and disposable income growth rates will boost
domestic consumption of aquatic products in 2008. However, aquatic
imports for domestic consumption are growing at a rather slow pace.
Nevertheless, high quality natural aquatic products from the United
States are expected to steadily increase in volume and value.

Definition of terms: Aquatic products are both defined as cultured
(farmed) and wild caught aquatic products; Aquatic products include
fish, shrimp/prawn/crab, shellfish, algae and other; Aquatic catch
production is total volume of both fresh and sea water caught wild
aquatic products; Aquatic culture production is the total volume of both
fresh and seawater cultured (farmed) aquatic products. This report will
use Chinese terminology to maintain consistency between Chinese
statistics and product categories.

# Production

## 

## Aquatic production is forecast to reach 56 MMT in 2008

China's aquatic production for 2008 is forecast to reach 56.2 MMT, up by
three percent from the estimated 54.7 MMT in 2007. China remains the
world's largest aquaculture producer. The rise in aquatic production is
attributable to the country's rapid economic growth, rising disposable
incomes and greater consumption of aquatic products, together with
strong growth of aquatic exports. While official data is not yet
available, the 2007 aquatic production is estimated to increase by three
percent over the 52.9 MMT in 2006. According to China's Ministry of
Agriculture (MOA), aquatic production for the first three quarters of
2007 reached 32.6 MMT, up more than four percent over the previous year
to date figure. Out of total production, freshwater aquatic production
reached 14.8 MMT, up six percent, sea catch production stood at 9.4 MMT,
down one percent, and sea culture production was 8.4 MMT, up six percent
as compared to the previous year. Industry sources also show that total
aquatic production in 2007 is likely to rise by three percent over the
previous year. According to MOA's 11^th^ Five-Year (2006-2010) Plan for
the Fishery Industry (11^th^ Five-Year Fishery Plan), aquatic production
is expected to grow by more than three percent annually, reaching 60 MMT
by 2010.

China's continued aquatic production increase is driven by aquaculture
expansion which is estimated to account for 68 percent of total aquatic
production in 2006. According to MOA, the yearly aquatic production
growth rate during the 10^th^ five-year period (2001-2005) averaged four
percent. During this same period, the annual aquaculture production
growth rate, however, grew at more than six percent. Aquatic catch
production remained stagnant from 16.9 MMT in 2004 to 17.1 MMT for 2005.
Such marginal growth is attributable to the increased freshwater fish
catch of 130,000 MT. In 2006, however, both seawater and freshwater
catch declined with a combined catch production of 16.9 MMT. Such a
trend is likely to continue both domestically and worldwide in the
foreseeable future and will be limited by declining wild fishery
resources. In contrast, aquaculture production will be driven by the
further exploitation of water resources along with higher yields.

Freshwater and seawater culture production both increased in 2006, up
seven percent and two percent over the previous year, respectively. MOA
reported that in the first nine months of 2007, freshwater aquatic
production reached 14.8 MMT, up six percent; and seawater culture
production was 8.4 MMT, up six percent as compared to the previous year.
This growth contributed to the total aquatic production growth.

**Table 1 China's aquatic production (Unit: Metric Ton)**

  ----------------------- ------------ ------------ ------------ ------------ ------------
  **Category**            **2003**     **2004**     **2005**     **2006**     **2007\***

  Total Aquatic           47,061,064   49,017,671   51,016,530   52,904,031   54,700,000
  Production                                                                  

  -Seawater Aquatic       26,856,182   27,677,907   28,380,831   28,876,758   29,500,000
  Production                                                                  

  \--Seawater Catch       14,323,121   14,510,858   14,532,984   14,420,359   14,400,000

  \--Seawater Culture     12,533,000   13,167,049   13,847,847   14,456,399   15,100,000

  -Freshwater Aquatic     21,339,764   22,635,699   22,635,699   24,027,273   25,200,000
  Production                                                                  

  \--Freshwater Catch     2,419,792    2,551,045    2,551,045    2,544,168    2,500,000

  \--Freshwater Culture   18,919,972   20,084,654   20,084,654   21,483,105   22,700,000

  Source: Ministry of                                                         
  Agriculture 2006 China                                                      
  Agriculture Statistics                                                      
  Report; 2007\*                                                              
  Estimated by                                                                
  FAS/Beijing                                                                 
  ----------------------- ------------ ------------ ------------ ------------ ------------

## 

Cultured fish production stood at 20.2 MMT in 2006, up seven percent
from the 18.9 MMT in 2005. It remains the largest category, accounting
for 56 percent of the total cultured production, followed by shellfish
and crustaceans at 32 and seven percent, respectively. Freshwater
cultured fish reached 19.5 MMT, accounting for 97 percent of the total
cultured fish production. Carp is the most popular cultured freshwater
fish with a total production at 15.1 MMT in 2006, accounting for 77
percent of total freshwater cultured fish production. Tilapia production
grew rapidly to more than 1.1 MMT in 2006, up 14 percent over 2005's
978,135 MT. Industry sources reported that Tilapia production is likely
to increase in the near future in response to strong demand for China's
tilapia in the United States. Catfish production continued to grow
rapidly in 2006 to be 170,766 MT, as compared to the 101,096 MT in 2005,
up 69 percent. Its production is likely to exceed 200,000 MT in 2007 and
continue growing in 2008. Shellfish is the largest group of sea-cultured
species with 2006 production reaching more than 11.1 MMT, and accounting
for 77 percent of total sea cultured production. Cultured crustacean
production in 2006 was 2.4 MMT from the 2.1 MMT in 2005, up 14 percent.
In all, freshwater production represented 60 percent of the total
cultured crustacean production in 2006.

**Table 2 China\'s seawater and freshwater aquatic production by
category (Volume: Metric Ton)**

  ------------------------- ------------ ------------ ------------ ------------ ------------
  **Category**              **2003**     **2004**     **2005**     **2006**     **2007\***

  Seawater Fish Production  10,250,563   10,172,677   10,388,209   10,373,719   10,400,000

  Seawater Shrimp, Prawn,   2,980,610    3,124,022    3,240,594    3,408,520    NA
  and Crab                                                                      

  Seawater Shellfish        10,659,370   11,094,019   11,560,628   12,039,765   NA

  Seawater Algae            1,413,128    1,505,216    1,541,754    1,534,626    NA

  Seawater Other            1,552,511    1,781,973    1,649,646    1,520,128    NA

  Freshwater Fish           17,941,904   18,934,217   20,093,959   21,246,597   22,200,000

  Freshwater Shrimp, Prawn, 1,389,270    1,533,884    1,637,505    1,833,841    1,90,000
  and Crab                                                                      

  Freshwater Shellfish      537,496      534,581      539,629      570,396      NA

  Freshwater Algae          6,055        4,666        6,028        8,102        NA

  Freshwater Other          332,416      330,157      358,578      368,337      NA

  Source: Ministry of                                                           
  Agriculture 2006 China                                                        
  Agriculture Statistics                                                        
  Report; 2007\* Estimated                                                      
  by FAS/Beijing                                                                
  ------------------------- ------------ ------------ ------------ ------------ ------------

In 2006, Shandong, Guangdong, and Fujian provinces continued to be the
three largest aquatic product producers mainly because of their large
sea cultured production. Hubei, Guangdong and Jiangsu provinces rank as
the top three in terms of freshwater production.

**Table 3 China\'s aquatic production by provinces in 2006 (Volume:
Metric Ton)**

  ------------- ------------------ ---------------- ----------------------
                **Total            **Sea            **Freshwater
                production**       production**     production**

  **Total**     52,904,031         28,876,758       24,027,273

  Shandong      7,459,120          6,309,106        1,150,014

  Guangdong     7,239,648          4,105,176        3,134,472

  Fujian        6,000,309          5,288,478        711,831

  Zhejiang      4,853,411          4,005,231        848,180

  Liaoning      4,398,404          3,705,615        692,789

  Jiangsu       4,050,447          1,190,755        2,859,692

  Hubei         3,313,870          0                3,313,870

  Guangxi       2,964,282          1,769,508        1,194,774

  Other         12,624,540         2,502,889        10,121,651

  Source:                                           
  Ministry of                                       
  Agriculture                                       
  2006 China                                        
  Agriculture                                       
  Statistics                                        
  Report                                            
  ------------- ------------------ ---------------- ----------------------

Freshwater aquaculture exists nationwide, particularly for carp.
However, some species' production is limited to certain regions due to
available resources and climate conditions. For instance, tilapia
production by three provinces Guangdong, Guangxi, and Hainan in 2006
continued to dominate, accounting for 81 percent of the total, as
compared to the 77 percent in 2005. Catfish production, on the other
hand, is located primarily in Hubei, Sichuan, and Jiangsu, collectively
produced 56 percent of the national total. Shrimp and prawn culture are
conducted both in fresh and seawater with the largest producers in
Guangdong, Jiangsu, Guangxi, Zhejiang, and Hainan provinces. Guangdong
continued to be the largest shrimp producer with Penaeus uannamei
production at 376,770 MT in 2006. Eel production is concentrated in
Fujian, Guangdong, and Jiangxi provinces with much of it destined to the
Japanese market. The combined cultured shellfish production of Shandong,
Fujian, Guangdong, and Liaoning provinces accounted for 80 percent of
the 2006 total.

## Aquatic catch production remains stable 

The total 2008 catch production is forecast similarly to 2007's
estimated 16.9 MMT. According to MOA, annual seawater catch between 2002
and 2005 averaged approximately 14.5 MMT and accounted for 85 percent of
the total catch. Freshwater catch production remained small at about 2.5
MMT in the past few years. Industry sources report that total catch is
unlikely to increase significantly in the foreseeable future due to
limited freshwater and seawater natural resources. Though seawater catch
data for other territorial seas is not officially released, most
industry insiders believe it is difficult to increase production
significantly.

## 

## Aquaculture farmed area expansion continues

The total aquaculture area continued expanding in 2006, reaching 7.8
MHA, up more than three percent over 2005. The combined freshwater and
seawater areas increased by 247,000 HA, with 168,000 HA for freshwater
and 80,000 HA for seawater respectively between 2005 and 2006. Liaoning,
Hebei, Guangdong, Guangxi, and Shann'xi provinces collectively added
132,520 HA of culture area in 2006, mainly expanding in seawaters
together with freshwater lakes/reservoirs. Seawater culture area is
likely to grow moderately in the coming years. Freshwater culture area
is also expected to increase because some reservoirs/lakes are not fully
utilized for aquaculture purposes due to growth constraints such as lack
of transportation and technical service. However, MOA indicated that
limited water resources and environmental concerns pose new challenges
to aquaculture area expansion and additional production gains shall be
achieved through technology dissemination and innovation.

**Table 4 China\'s Aquaculture Area Resources (Unit: Hectares)**

  ---------------- ------------------- ----------------- ------------------
  **Year**         **Total**           **Freshwater**    **Seawater**

  2007\*           7,940,000           6,150,000         1,790,000

  2006             7,792,501           6,018,382         1,774,119

  2005             7,545,019           5,850,488         1,694,531

  2004             7,281,252           5,663,800         1,617,452

  2001             6,648,760           5,362,302         1,286,458

  Source: Ministry                                       
  of Agriculture                                         
  2006 China                                             
  Agriculture                                            
  Statistics                                             
  Report; 2007\*                                         
  Estimated by                                           
  FAS/Beijing                                            
  ---------------- ------------------- ----------------- ------------------

**Table 5 China\'s Seawater Aquaculture Area Resources in 2006 (Unit:
Hectares)**

  ------------- ----------- ---------- ----------- ---------- --------------- ----------- -----------
  **Area**      **Total**   **Fish**   **Shrimp/   **Crab**   **Shellfish**   **Algae**   **Other**
                                       Prawn**                                            

  Total         1,774,119   87,314     247,359     82,868     1,127,285       94,225      135,068

  Tianjin       5,511       833        4,304       374        0               0           0

  Hebei         102,302     7,809      23,591      1,545      67,460          0           1,897

  Liaoning      485,800     3,539      25,295      1,015      368,815         12,449      74,687

  Shanghai      80          0          80          0          0               0           0

  Jiangsu       180,680     4,631      10,537      12,654     137,016         14,506      1,336

  Zhejiang      109,055     6,247      14,344      21,066     57,610          9,045       743

  Fujian        152,298     12,157     16,544      8,668      84,223          30,430      276

  Shandong      420,258     8,826      61,567      20,084     262,294         22,562      44,925

  Guangdong     234,635     39,774     58,743      14,533     111,205         3,091       7,289

  Guangxi       64,336      1,834      20,397      1,594      36,669          34          3,808

  Hainan        19,164      1,664      11,957      1,335      1,993           2,108       107

  Source:                                                                                 
  Ministry of                                                                             
  Agriculture                                                                             
  2006 China                                                                              
  Agriculture                                                                             
  Statistics                                                                              
  Report                                                                                  
  ------------- ----------- ---------- ----------- ---------- --------------- ----------- -----------

**Table 6 China\'s Inland Fish Breeding Area Resources (1999-2007;**
Unit: Hectares)

  ------------- ----------- ----------- ---------- --------------- ------------ ------------
                **Total**   **Pond**    **Lake**   **Reservoir**   **Stream**   **Others**

  2007\*        6,150,000   NA          NA         NA              NA           NA

  2006          6,018,382   2,531,048   978,244    1,909,580       391,766      207,744

  2005          5,850,488   2,495,361   964,088    1,808,027       381,533      201,479

  2004          5,663,800   2,429,479   939,667    1,689,623       377,432      227,599

  2000          5,277,732   2,219,976   894,861    1,620,978       378,097      163,820

  Source:                                                                       
  Ministry of                                                                   
  Agriculture                                                                   
  2006 China                                                                    
  Agriculture                                                                   
  Statistics                                                                    
  Report;                                                                       
  2007\*                                                                        
  Estimated by                                                                  
  FAS/Beijing                                                                   
  ------------- ----------- ----------- ---------- --------------- ------------ ------------

## 

## Aquaculture production faces new challenges

## 

Despite the fast growth of the aquaculture sector, the industry's
expansion has mainly relied on increasing the production capacity and
farming area. According to MOA the new challenges facing aquaculture
production include: low technical innovation by the industry;
genetically improved aquatic species accounting for only 16 percent of
cultured species (far below the norm for crops and domestic animals);
the occurrence rate of aquatic diseases increased in recent years; the
lack of specialized aquatic vaccines and drugs resulted in the use of
inadequate drugs; feeding natural fish/shrimp (instead of industrialized
feed) in seawater culture resulted in waste of resource; and water
utilization efficiency remains low (because more than 80 percent of the
industrialized aquatic farms adopt the "all in, all out" method of water
exchange). Of all challenges listed above, the most serious one is the
use of unapproved drugs/chemicals in aquaculture (including nitrofuran,
malachite green, gentian violet, and flouroquinolones). To ensure the
quality of aquatic products, particularly goods for export, MOA and
China's Administration for Quality Supervision, Inspection and
Quarantine (AQSIQ) adopted a licensing system for export-oriented farms
and processing establishments. MOA and AQSIQ conduct frequent field
audits of export-oriented aquaculture farms. Aquatic products for export
are subject to mandatory inspection and must be accompanied by AQSIQ
inspection certificates.

## 

## Aquatic processing is mainly driven by exports

According to MOA, the total number of aquatic processing facilities
continued to increase in 2006, reaching 9,549, up by 421 over 2005.
Processing capacity also rose to 18 MMT from the 17 MMT in 2006. The
number of cold storages facilities increased to 6,552, up 224 over 2005.
The total aquatic products processed in 2006 reached 16.3 MMT as
compared to the 15.5 MMT in the previous year. This accounted for about
30 percent of the total aquatic production in 2006, slightly higher than
in 2005. Total processed aquatic product volume stood at 13.3 MMT, of
which 8.2 MMT was frozen or frozen processed goods. Industry sources
indicate that this situation reflects the domestic consumer's enduring
preference for live aquatic products. Processing capacity expansion is
therefore mainly driven by export market demand which led to the
construction of new production facilities.

The dynamic processing trade also spurred greater investment. Industry
sources estimate that the processing trade accounts for more than 38
percent of China's aquatic product export value and is expected to
steadily increase. Processed aquatic products using domestic raw
material (mostly cultured products) is also mainly export driven.
Domestic consumption of processed aquatic products remains relatively
small compared to the total aquatic consumption. Although some consumers
in large cities have begun purchasing processed aquatic products, most
Chinese consumers still prefer live or fresh aquatic goods. Despite
complaints of foreign trade barriers on Chinese aquatic products, MOA
acknowledged that the barriers also forced the sector to invest more in
producing value-added, quality products.

Aquatic processing bases are set up within or near major aquatic
production regions. Out of the total 9,549 processing facilities, 6,657
(or 70 percent) concentrate in Zhejiang, Shandong, Fujian, and Guangdong
provinces. These provinces are also major aquaculture producers and are
equipped with port and cold storage facilities. Many foreign traders
have also entered the processing trade industry in these provinces.

# 

# Consumption

China's per capita aquatic product consumption is forecast to continue
increasing in 2008. Based on National Statistics Bureau (NSB)
information, per capita consumption for urban dwellers in 2006 was 13
kg, up slightly from 12.6 kg in the previous year, while for rural
people it was 5 kg, up 0.1kg. In 2007, consumption of aquatic products
is expected to increase as a result of the continued income growth for
consumers and higher price for pork and other meat products in 2007.
Urban per capita aquatic product consumption exceeded 13 Kg in 2002 and
2003, but fell in 2004 mainly due to higher prices (CH6098). Industry
insiders believe per capita consumption will continue to increase
steadily with the growth potential for the rural population larger than
that of the urban because of the current rural consumption is relatively
low.

**Table 7** Per Capita Consumption Trends for Aquatic and animal
products

  ------------- ----------- --------- ----------- ----------- ---------- ------------
  Per Capita                                                             
  Consumption                                                            
  Trends for                                                             
  Aquatic                                                                
  Products                                                               

                2002        2003      2004        2005\*      2006\*\*   2007\*\*\*

  Urban         13.2        13.4      12.5        12.6        13         13.2

  Rural         4.4         4.7       4.5         4.9         5          5.1

  Per Capita                                                             
  Consumption                                                            
  Trends for                                                             
  Pork, Beef,                                                            
  and Lamb                                                               

  Urban         23.3        23.7      22.9        23.9        23.8       23.8

  Rural         14.5        15        14.8        17.1        17         17.2

                                                                         

  \* Urban                                                               
  population of                                                          
  561.57                                                                 
  million.                                                               
  Rural                                                                  
  Population of                                                          
  744.71                                                                 
  million. \*\*                                                          
  Urban                                                                  
  population of                                                          
  577.06                                                                 
  million.                                                               
  Rural                                                                  
  Population of                                                          
  737.42                                                                 
  million                                                                
  \*\*\*                                                                 
  Estimated by                                                           
  FAS/Beijing                                                            

  Source: 2006                                                           
  China                                                                  
  Statistical                                                            
  Yearbook                                                               
  Table 10/9                                                             
  and 10/29                                                              
  ------------- ----------- --------- ----------- ----------- ---------- ------------

MOA statistics show that average wholesale price for aquatic products in
the first three quarters of 2007 increased by more than three percent
from the previous year. While prices for egg and poultry products
increased by 26 and 29 percent respectively; pork prices continued
growing in the first few months and soared to record high in August
2007---up 86 percent compared to the same period in 2006. According to
NSB, China's CPI in November 2007 increased almost seven percent with
prices for pork, poultry and products up 56 and 39 percent respectively,
compared to the same month in 2006. The price for aquatic products,
however, only increased by less than seven percent. The stable to
slightly increasing price for aquatic products implies that supply and
demand are growing simultaneously. Many industry sources expect aquatic
consumption by both urban and rural residents to grow in 2007 and
continue in 2008. Based on MOA's 11^th^ five-year plan, the nationwide
per capita aquatic product consumption is expected to reach 12 Kg by
2010.

**China's CPI and Prices for Major Consumption Goods in November 2007**

![](media/image2.wmf){width="5.043055555555555in"
height="1.6611111111111112in"}

Note: Growth Rate (%) in November 2007 VS November 2006

The per capita consumption of aquatic products in coastal provinces is
higher than in other regions. Apart from obvious geographic differences,
coastal city residents' high level of disposable income influences
consumption patterns as well. Table 8 lists the top ten provinces and
municipalities with the highest expenditures on aquatic products in
2006. This ranking is virtually unchanged from 2005. Clearly, they are
either located in coastal regions or rank high in disposal income.
Consumption is also related to dietary tradition as people in western
provinces prefer other types of animal protein. Most Chinese consumers
are still price sensitive when purchasing aquatic products. Freshwater
cultured products such as carp and shrimp/prawn are popular for
consumption at home and restaurants due to the affordable price and
freshness. Seawater products, including yellow croaker and ribbonfish
continue to be favorites to most people in North China. Processed
shellfish/shrimps/prawns and tilapia fillet are also increasingly
popular among consumers in large cities. High quality imported seafood
such as lobster, geoducks, salmon, and crab, however, are widely used by
hotels and restaurants for high-end consumers. Along with the growing
middle-class in large cities and coastal regions with booming economies,
the potential for these products remains promising as Chinese families
opt for a more diversified diet.

A typical example is the increased strong salmon imports since 2005.
Salmon imports continued to be high valued at \$244 million in the first
ten months of 2007. Although salmon processing trade increased rapidly
(the volume of re-exported processed salmon is not available), industry
insiders believe a large share of salmon imports are for domestic
consumption. Fresh or chilled salmon meat is served in many restaurants
and hypermarkets in larger cities. The United States continued to be the
largest supplier in volume and value in the first ten months of 2007.

**Table 8 Per Capita Annual Aquatic Expenditure of Urban Resident by
Region in 200**6

  ------------------------ ------------- -------------- -------------- --------------
  **Region**               **Aquatic     **Aquatic      **Disposable   **Disposable
                           Product       Product        Income Rank**  Income RMB
                           Expenditure   Expenditure                   Yuan**
                           Rank**        RMB Yuan**                    

  Fujian                   1             670            7              13,753

  Shanghai                 2             595            1              20,668

  Zhejiang                 3             552            3              18,265

  Hainan                   4             434            21             9,395

  Guangdong                5             414            4              16,016

  Tianjin                  6             293            5              14,283

  Jiangsu                  7             286            7              14,084

  Liaoning                 8             256            11             10,370

  Guangxi                  9             237            16             9,899

  Beijing                  10            183            2              19,977

  Nation Average           NA            203            NA             11,759

  Source: 2006 China                                                   
  Statistical Yearbook                                                 
  Table                                                                
  10/15,10/16 \$1=RMB7.6                                               
  Yuan                                                                 
  ------------------------ ------------- -------------- -------------- --------------

Because Chinese consumers prefer live products to fresh and frozen
products, most restaurants keep fish tanks that allow customers to
choose their own fish, shrimp, lobster, crab, and other aquatic products
when dining out. Most wet markets and some supermarkets also allow
consumers to purchase live aquatic products. This tradition appears to
be changing due to the increasingly fast-paced life of cities, as many
families prefer ready-to-cook aquatic products to save time. Processed
products, including processed fish, shellfish, mollusks, and
shrimps/prawns, are therefore becoming increasingly popular in
hypermarkets in large cities.

# 

# Trade

## 

## Aquatic product trade is expected to continue growing in 2008

China's aquatic trade value and volume are expected to continue growing
but at a moderate level in 2008. Total aquatic trade value for 2007 is
estimated at \$12.6 billion with imports valued at \$3.6 billion and
exports at \$9 billion, up seven, thirteen and five percent respectively
over the previous year. The trade surplus is expected to hit \$5.4
billion, almost unchanged from 2006. Aquatic exports continued to be the
largest category in all-agriculture exports. Increased prices for
aquatic resources in the global market also attributed to growth of
total trade value. According to the World Trade Atlas (WTA), aquatic
export volume increased by less than three percent in the first ten
months of 2007, down significantly from the 17 percent in 2006. Industry
sources explained that the reduced growth was attributable to the import
control imposed by the United States since June 2007, followed by strict
inspection on Chinese aquatic exports by other major importing
countries. Meanwhile, China's export quality control agency, AQSIQ also
implemented tight inspection/control measures since June, resulting in
lower exports.

## Processing trade continues to boost imports

Aquatic imports are forecast to continue growing in 2008 from the
estimated 2.4 MMT imports in 2007, up by nine percent over 2006.
However, growth rate did slow in comparison to the 13 percent in 2006.
The 2007 imports are valued at an estimated \$3.6 billion, up 13 percent
over the previous year. There is no official data on the share of
aquatic imports destined for processing trade (re-export after
processing). Industry insiders believe that out of the total aquatic
export value, the export value of processing trade accounts for 40
percent, while the export value of domestic aquatic products (used
domestically produced raw material) stands at 60 percent. Imports for
domestic consumption are also growing but at a rather slow pace. It is
likely that aquatic imports will continue to grow in 2008, partially to
supply the growing processing trade. Government policy continues to
favor the expansion of the processing industry which can absorb much of
the growing labor force. Total aquatic import volume in the first ten
months of 2007 reached 19.5 MMT as compared to the 17.7 MMT in the same
period in 2006. According to WTA, in the first ten months of 2007,
imports by category are characterized by the rapid increase of mollusks
and other (HS 0307) and frozen fish (HS 0303), up 21 and 9 percent in
volume respectively; frozen fish and Mollusks imports accounted for 75
and 11 percent of the total imported value respectively. Large imports
are likely destined for re-export with a strong combined export volume
of fish/fillet (HS 0304) and prepared or packaged fish (HS 1604), at
more than 1.1 MMT, accounting for 51 percent of the total.

Based on WTA, salmon imports also increased slightly in the first ten
months of 2007 with a total import value reaching \$244 million and
volume of 117,311 MT, up two percent and one percent respectively, from
the same period in the previous year. Japan, Russia, and the United
States continue to be the three largest suppliers in 2007. Industry
sources indicate most processed salmon enters China in the category of
processing trade.

Russia is expected to continue to top the list of origins of China's
aquatic product imports, which it has headed for the past consecutive
seven years, distantly followed by the United States and Japan. Total
imports from Russia are estimated to exceed \$1.3 billion in 2007, up 11
percent from the previous year. These account for 38 percent of China's
total 2007 aquatic imports.

Imports from the United States continued growing during the first ten
months of 2007. The import value totaled \$429 million and is expected
to exceed \$450 million for the whole year, up 10 percent from 2006. The
United States has been the second largest supplier since 2004. In the
first ten months of 2007, frozen fish remained the largest category,
accounting for 88 percent of the total import value. Imports by species
include plaice (\$123 million out of the total \$127 million for all
flatfish) followed by salmon (\$113 million), cod (\$58 million), and
mollusks (\$30 million). It is worth noting that salmon imports from the
United States are expected to soar to \$125 million in 2007, up 60
percent from the previous year. Excluding the export-oriented processing
trade, strong salmon imports are also driven by domestic demand. It is
difficult to quantify the volume of salmon imported for domestic
consumption, but salmon is increasingly popular among middle class
consumers at home or dining out in Japanese restaurants or hotels in
large cities including Beijing, Shanghai, Guangzhou, etc. Industry
insiders believe China will become one of the world's largest salmon
markets in the near future. Despite improved cold storage in
hypermarkets in large cities, the cold chain needs to be improved in
order to shorten the delivery time to reach end-users. China's demands
for other high quality and natural seafood are also expected to grow
steadily along with income growth and improved health awareness.

Qingdao and Dalian continue to be the two largest arrival ports for
aquatic products, accounting for 85 percent of the total imports.
Well-established facilities, including processing factories in Qingdao
and Dalian, will likely solidify the two cities' status as the largest
seafood import hubs in China in the foreseeable future.

## Fishmeal imports are forecast at 1 MMT in 2008 

Fishmeal imports in 2008 are forecast to pick up slightly to 1 MMT from
the estimated 930,000 MT imports in 2007. This is much lower than the
1.58 MMT imported in 2005. In May 2006, fishmeal prices skyrocketed to
more than \$1,300 from \$850 per metric ton in March. High prices
continued through late July before falling to \$1,000 per metric ton and
fluctuated at this level through May 2007. As a result, consumption
dropped to less than 1 MMT in 2006 and is expected to be approximately 1
MMT in 2007. Feed industry sources reported that other protein meals
were added as substitutes in order to reduce costs. Fishmeal use was
also reduced in part by the weak animal husbandry since late 2006.
Domestic fishmeal production stands at about 300,000 MT per year with
ending stocks for 2007 expected to be small. The current fishmeal price
ranges from \$850 to \$950 per metric ton. Imports for 2008 are likely
to pick up moderately given the demand by large-scale animal and
aquaculture industries, though price and fishmeal availability may
restrict imports. Peru remains the largest fishmeal supplier. Imports
from the United States for 2007 and 2008 are expected to be similar to
past years at approximately 70,000 MT.

##  

## Value-added aquatic product exports continue to increase 

China's exports of aquatic products for 2007 are expected to reach \$9
billion, up five percent from the \$8.6 billion in the previous year.
This growth rate is notably lower than the 14 percent realized in the
previous two years. According to WTA, in the first ten months of 2007,
the total aquatic export value was \$7.1 billion, up five percent as
compared to the previous year, despite high growth of 23 percent for
prepared or packaged fish and caviar, the prepared crustaceans and
mollusks have seen no growth, while fish/fillet increased by seven
percent as compared to the same period in last year.

According to WTA, as of the end of October 2007, three major categories,
namely Fish/Fillet (HS Code 0304), Prepared or Packaged Crustaceans and
Mollusks (HS Code 1605), and Prepared or Packaged Fish and Caviar (HS
Code 1604), continue to dominate the export market, accounting for 79
percent of the total export value, up from the 76 percent. The 23
percent growth rate for prepared or packaged fish and caviar export
value (\$1.8 billion), compared to the seven percent growth for fish
fillet reflect that by adding more value to fish products increasingly
enhance the industry. This trend is likely to continue in aquatic
processing in the future and will be made possible through the
advancement in technology and management, as businesses strive to meet
changes of consumers worldwide. The unchanged export value for prepared
and preserved crustacean and mollusks is mainly attributed to the small
exports of shrimps and prawns to the United States.

Exports of cultured species showed a different picture in the first ten
months of 2007. Shrimp and prawn exports dropped by four percent, mainly
due to a sharp fall of exports to the United States which plummeted to
\$136 million from the \$243 million for the first ten months in 2006.
The combined exports to other Asia and Pacific destinations, including
South Korea, Malaysia, Australia, and Taiwan, remained strong at \$232
million, a 26 percent increase over the first ten months in 2006.
Exports to Japan continued smooth growth in 2007 making Japan again the
number one export destination with exception of 2006 when the United
States surpassed Japan as the largest destination. Industry sources say
the impact of Japanese "Positive List System," enacted in May 2006,
remains limited. Shrimp and prawn exports are forecast to maintain
steady growth and destinations are likely more diversified in 2008.
Reduced export prices in 2007 also attributed in part to the reduced
export value. According to WTA, the average export price in the first
ten months of 2007 was \$25 per metric ton, lower than that of the
previous year. Prepared and packaged shrimp and prawn continue to
dominate, accounting for 82 percent of total shrimp and prawn exports in
2007. This trend will maintain in 2008 supported by strong consumer
demand and China's commitment to adopting its production practice to
meet the market trend.

In the first ten months of 2007, tilapia exports soared to \$385
million, exceeding the \$369 million in the full year of 2006. The bulk
of this growth came from increased exports of prepared and preserved
tilapia which skyrocketed to 153,887 MT, up 694 percent over the whole
year of 2006. The export value of prepared and preserved tilapia
accounted for 94 percent of the exports of all tilapia products.
However, tilapia fillet exports declined sharply with total export value
at \$10 million merely from the \$85 million in the previous year.
Frozen tilapia also dropped notably to \$15 million. The strong growth
of tilapia exports (in particular the prepared and preserved) also
indicate that the industry continued expansion and shifted to value
added products. The United States remains the largest destination for
China's tilapia products, accounting for 62 percent in export value and
58 percent in volume in 2007. Tilapia exports to Russia showed great
potential and are expected to exceed \$45 million in value in 2007
although there were no exports before 2006.

Crawfish exports in 2007 are expected to fall to \$150 million from the
\$175 million in the previous year. Exports to some leading buyers
mainly Belgium and Demark fell by 59 and 15 percent respectively,
although exports to the United States, the largest importer, remained
almost unchanged. In the first ten months of 2007, eel product exports
increased four percent in value with stable exports to Japan and rapid
increase to Russia and Hong Kong. Although eel exports began to decline
in 2005, their slow recovery in the recent two years was still mainly
attributable to the "positive listing" imposed by Japan in May 2006
which raised the threshold for eel products entering the Japanese
market.

**Aquatic export destinations became more diversified**

It is expected that China's aquatic export value to fifteen
countries/regions will reach \$100 million and with fifteen more
countries/regions in 2007. Japan continued to be the largest export
destination, distantly followed by the United States and South Korea.
The United States is the largest destination for China's fish/fillet,
tilapia products and crawfish, accounting for 27, 62 and 83 percent in
value, respectively, in the first ten months of 2007.

# 

## Aquatic exports are subject to new requirements based on US-China Food Safety Agreement 

On June 28, 2007, the United States Food and Drug Administration (FDA)
announced a broader import control of farm-raised catfish, basa, shrimp,
dace (related to carp), and eel from China. In what FDA calls as "trade
alert", they detained these products at the board and run tests for
antimicrobial residues that are unapproved and hazards human health. The
shipments are detained until proven to be free of residues from
unapproved drugs and antimicrobials such as nitrofuran, malachite green,
gentian violet, and flouroquinolones.

The Department of Health and Human Service (HHS) of the United
States/FDA and the Chinese regulatory agency (AQSIQ) conducted a series
of consultations at the policy and technical level in order to resolve
the trade issue. On the 3^rd^ US-China Strategic Economic Dialogue held
in December 2007, HHS and AQSIQ signed a Memorandum of Agreement on Food
and Feed Safety. The key terms of the agreement are as follows:

New Registration and Certification Requirements. To enhance the safety
of products sold in the United States, Chinese authorities will
implement two programs, both subject to an audit by FDA within HHS. The
first will require exporters to the United States to register with AQSIQ
and agree to annual inspections to ensure their goods meet U.S.
standards. AQSIQ will notify HHS/FDA of those that fail inspection, and
why. HHS/FDA will maintain an online list of registered companies. AQSIQ
will also notify HHS/FDA of all companies AQSIQ suspended or that have
lost their registered status. To better contain and resolve safety
problems, AQSIQ will implement a system to trace products from the
source of production or manufacture to the point of exportation. Second,
new certification requirements will help ensure products exported from
China to the United States meet the U.S. food standards. Once AQSIQ's
Inspection Bureau confirms a shipment meets HHS/FDA requirements, it
will issue a certificate that carries a unique identifying number which
AQSIQ must also file with HHS/FDA. To avoid counterfeit certificates,
technical experts from both countries will work together to implement a
secure electronic system. AQSIQ will also develop a testing program that
provides, as determined by HHS/FDA, a high level of statistical
confidence in the quality of products exported to the United States.
HHS/FDA will explore mechanisms to notify AQSIQ when shipments of
products exported to the United States are not certified, or come from a
company not registered with AQSIQ.

Greater Information-Sharing. Each party commits to notify the other
within 48 hours of the emergence of significant risks to public health
related to product safety, recalls, and other situations. In the past,
there was no system of notification. HHS/FDA can request a timely
investigation regarding any covered product if there is reason to
believe it could pose a health or safety risk. The agreement also
includes terms on "Increased Access to Production Facilities" and
"Implementation and Establishing Key Benchmarks" to implement the
agreement and evaluate progress.

The agreement is expected to enhance the safety of China's aquatic
products to the United States and facilitate trade. However, the
enforcement of the agreement by AQSIQ remains challenging. The U.S.
importers are advised to pay attention to the detailed requirements
based on the agreement and to select suppliers wisely.

# Policy

## 

## China's policy favors smooth growth for aquatic production and exports 

In general, China's fishery production policy remains unchanged.
Aquaculture production in 2006 and estimated production for 2007
indicate an average growth of four percent per year, higher than the
three percent yearly growth for total aquatic production set in the
11^th^ Five-Year Fishery Plan. According to the plan, total aquatic
production is expected to increase at 3 percent annually to reach 60
MMT, while aquaculture production is expected to increase by 6
percent/year to 45.5MMT by 2010. The domestic catch production, however,
is restricted to 12 MMT, down from the 14.5 MMT in 2005. The catch in
other territorial seas is encouraged but the expected production will
remain stable in general. Continued rapid GDP growth will boost domestic
demand for aquatic products dramatically, with 2010 aquatic consumption
forecast at 12 Kg per capita. Based on the plan, MOA emphasized a more
sustainable development model with rational resource utilization in 2007
through a nationwide plan on building of environment-friendly and
healthy aquaculture demonstration bases. Through the intensification of
the enforcement of relevant laws and regulations and technical
extension, the plan aimed at promoting better use of resources,
protecting the environment, producing safe products, and raising farmer
income. According to MOA, more than 260 aquaculture production bases
have been included in the plan and 200 will be awarded demonstration
bases in 2007. These bases must meet requirements stipulated by MOA and
are subject to regular supervision. Other measures included technology
extension and drug use supervision. The aquaculture development plan by
region/province remains unchanged in general. Large aquatic producing
provinces will continue to focus on their most competitive products.
Export-oriented aquaculture production/processing will continue to be
concentrated in coastal provinces.

## Implementation of aquaculture licensing system advanced

The implementation of an aquaculture licensing system continued in 2007.
According to MOA, 60 percent of counties will complete the overall water
resources development plan and 70 percent of aquaculture entities will
be licensed by the end of 2007. The implementation of licensing system
nationwide is aimed at better regulating the industry. As mentioned
above, the HHS and AQSIQ agreement signed in December 2007 will require
exporters to the United States to register with AQSIQ and agree to
annual inspections to ensure their goods meet U.S. standards.

## The policy on aquatic processing trade remains unchanged

China's government views the processing trade as an advantageous
industry due to its role of generating new employment and producing
rendered product that can be used as a feed ingredient for feed
industry. Basically, the policy stipulates that imports of aquatic
products for re-export purpose enjoy tariff and VAT free treatment.
According to industry sources, the processing trade accounted for 40
percent of China's estimated \$9 billion aquatic exports in 2007.
China's industry and official sources both claim that China is actively
becoming the world's processing center for cod, mackerel and herrings.
Industry sources note that the number of enterprises involved in
"Processing Trade" is on the rise, especially in the large fishery
provinces, Shandong and Liaoning.

## Domestic aquatic catch is restricted

The "Zero Growth" policy for domestic wild aquatic catch is to be
maintained although the overseas catch is encouraged. The two-month
summer fishing moratorium in China's seawater continued in 2007, and the
three-month spring fishing ban in the Yangtze River entered its sixth
year. In an effort to protect and restore ecological balance, the state
and provincial fishery departments conduct frequent releases of aquatic
fingerlings to waters nationwide. According to MOA, total sea catch in
the first three quarters of 2007 declined by one percent over the same
period in the previous year.

## 

## Trade Related Issues

As China's government policy favors the "Processing Trade" of aquatic
products, imports under "Processing Trade" will still be free of tariff
and value added tax (VAT), the processed products, however, must be
re-exported. Imports destined for China are subject to tariff and VAT
(CH5089).

The elimination of tariffs for trade of agricultural products and
aquatic products between China and ASEAN appears to facilitate China's
imports from ASEAN. On January 1, 2006, based on the "Framework
Agreement on Comprehensive Economic Cooperation between China and the
Association of South East Asian Nations (ASEAN)", China and ASEAN
eliminated tariffs for trade of agricultural products and aquatic
products. According to WTA, China's aquatic export value to ASEAN in
2006 increased 11 percent over the previous year. This growing trend,
however, did not continue in the first ten months of 2007, and total
aquatic export value declined by 13 percent over the same period of
2006. China's aquatic imports from ASEAN surged by 33 percent in value
reaching \$178 million in the first ten months of 2007. Major imports
are fish/frozen, crustacean, and mollusks.

No significant changes on aquatic trade have been reported as a result
of the implementation of the "Asia-Pacific Trade Agreement". On July 1,
2006, the Asia-Pacific Trade Agreement (China, India, Korea/South,
Bangladesh, Laos, and Sri Lanka) was implemented. The agreement reduced
tariffs from 5-16 to about 2.5-11 percent for trade of most aquatic
products between China and the other five countries, while tariffs for
some aquatic products traded with Laos and Bangladesh were completely
eliminated.

On October 1, 2006, based on China-Chile Free Trade Agreement, China
reduced its import tariffs for fish meal (HS 23012010) of Chilean origin
to 1.8 percent from the previous 2 percent.

According to AQSIQ, as of November 14, 2007, forty eight aquatic
exporters have been "black listed" on AQSIQ's website because of product
quality problems or illegal practices in trading. The aquatic products
included roasted eel, shrimps and prawns and fish fillet destined to
Japan, the United States and Korea/South. It is worth noting that out of
the 48 "blacklisted" exporters, twenty four were listed because of
attempting to escape AQSIQ's mandatory export inspection.

# 

# Marketing

## 

## Chinese aquatic consumption pattern

Traditionally, Chinese consumers prefer low-value, live seafood or fresh
aquatic products. However, in more recent years, the availability of
high-end aquatic products imported from overseas is increasingly
widespread. While imported aquatic products, including those from the
United States, are relatively expensive, food service operators and
consumers often view imports as safe and favor the high quality image
that U.S. aquatic products generally enjoy in the China market.

In much of inland China, such as Northwest and Northeast China, fresh
aquatic products are somewhat scarce due to geographic isolation,
underdeveloped cold chain and distribution systems, transportation
bottlenecks, and uneven weather conditions. In these more isolated
regions, aquatic products in dried, cured, frozen and other processed
forms are more popular given their longer shelf life. In some regions,
meat is often the preferred animal protein source based on historical
consumption patterns. However, in recent years, high-end seafood imports
such as salmon, black sea bass, halibut, lobster, and even fresh oysters
can be found on the menus of mid-high level restaurants in many parts of
China. The perceived superiority of U. S. seafood with regard to texture
and flavor compared to local substitutes continues to win favor with
many high-end chefs and fine dining establishment professionals.

## Healthy, nutritious and safe seafood

While price is still one of the most significant factors influencing
food purchasing decisions, it is no longer the only criteria for China's
increasingly health-conscious consumers and fine dining operators. Some
specific fishery products have benefited from medical research that
links seafood consumption with good health. This is particularly true
for deep sea fin fish, which often contain high levels of heart healthy
fatty acids such as Omega 3. Media coverage related to these findings
continues to play an important role in driving consumer demand for such
products including fish oil consumption in urban China.

A variety of food safety issues, such as carcinogens in mandarin fish,
and drug and chemical residues in fishery products, have increasingly
become important to Chinese consumers. While this is a challenge for
seafood consumption in general, it also presents an opportunity for many
U.S. seafood products. Urban dwellers in China have become much more
aware of product origin, and many consciously avoid consuming domestic
freshwater fish. Imported seafood including wild catch product purchases
are often heavily influenced by food safety. Health consciousness,
nutrition, and brand awareness all increasingly affect consumer
perception and purchasing behavior here. The HRI sector has a strong
influence on consumer behavior, especially at the high-end of the
seafood and fishery product spectrum. Effective marketing and
promotional activities promoting U.S. fishery products as safe and
versatile support consumer awareness and HRI sector knowledge. Products
with established brand recognition and reputations for positive health
benefits often enjoy strong sales in the food service sector as well as
in some retail formats. By contrast, seafood products with little or no
product origin recognition usually face a much steeper market
development curve.

Quick Service Restaurant giant KFC has focused on developing healthy
menu offerings over the past year, and their current line featuring fish
items have been a big success in the China market. Earlier this year,
the company successfully launched a deep-sea cod promotion, and
currently is running a new 'Wild Alaskan Salmon' nugget promotion. Post
understands from industry sources that if the promotion is successful in
meeting company sales objectives, KFC may add a new menu item, the
Alaska Salmon burger. Several other QSR operators in China also offer
seafood items as a regular part of their menus given the popularity of
seafood sandwiches in China.

## 

## Variety

Seafood from the United States has a reputation for superior quality,
variety, and high price. Caught from coast to coast, a large variety of
U.S. seafood is available for export compared to the more limited
supplies from third country suppliers. In addition, the high standards
related to food safety of U. S. products have helped establish a high
quality and safe product image even prior to the current raised
awareness levels related to product safety issues. The HRI sector
primarily purchases high-end fish and fishery products, even in coastal
cities famous for their own local seafood products such as Qingdao, and
Dalian, where domestic seafood is abundant. Providing focused training
and education for food service professionals supports the proper
preparation, product handling, and use of seafood products. Lifestyle
media campaigns, market development activities, and other promotional
efforts have proven successful, although the market remains small.
However, market development activities are effective tools for educating
both the HRI trade and ultimately Chinese consumers about the quality
and availability of U.S. seafood.

Stringent food safety procedures, advanced and controlled harvesting,
processing, and cold chain logistics all support the near fresh
conditions post catch of U.S. seafood exports. China's cold chain
facilities and logistics while improving still have a long way to go in
to meet both evolving domestic requirements as well as international
standards. Shellfish, such as scallops and oysters from the United
States often enjoy strong sales as domestic shellfish have a poor
reputation for meeting food safety requirements in large part due to
heavy metal contamination. Sea cucumber, live lobster, and Dungeness
crab reportedly enjoy strong HRI demand despite their relatively high
prices. Other popular species and varieties exported to the China
include squid, eel, salmon, tuna, cod, black cod, and snow crab.

Rapidly changing and increasingly modern, fast-paced lifestyles,
especially for those under 35, mean consumers often prefer to purchase
value-added products in supermarket or hypermarket formats. Portion
controlled, ready-to-cook, breaded, frozen or seasoned fish fillets are
increasingly being positioned to meet changing consumer needs. These
easy to prepare, high quality, nutritious and safe products continue to
grow in popularity. However, while these seafood products are easy to
prepare it is advisable to provide clear preparation and cooking method
instructions. This is important because traditionally consumers consume
fresh or live fish-fishery products and for the most part are not
familiar with value-added product preparation.

## Competition

While demand for high-quality seafood and fishery products has expanded
in China, competition has also intensified with a growing number of
international suppliers entering the market. The recent 12^th^ China
Fisheries and Seafood Expo in Dalian grew by more than 30 percent over
the previous year, suggesting domestic and international interest is
growing in the seafood sector. For example, at last years show, Canada
only had few exhibitors, but this year an entire pavilion was dedicated
to showcasing a wide range of Canadian seafood. Also, present this year
were Russia, Norway, Korea, Japan, as well as European and Latin
American suppliers who continue to develop a larger presence at the show
as well as in the China market.

Beyond third country supplier competition, local or domestic competition
is on the rise. Local products continue to gain market share with
improved quality, lower prices, and greater availability. Based on
discussions with local traders, a growing number of consumers desiring
high-end seafood products are unable to find consistent supplies
although they are willing to pay for these more expensive imports. On
the other hand, local seafood distributors and suppliers complain that
due to the higher prices of imports, many retailers are hesitant to
stock higher quality and more expensive seafood products in their
stores.

While superior quality, premium prices, and high levels of food safety
are all characteristic of U.S. seafood and fishery products, exporters
need to be aware of trade policy matters related to exporting to and
selling in China. Investment in a long-term marketing strategy to
differentiate products from domestic or other international competitors
is important in this market. Potential market entrants need to conduct
extensive desktop and preliminary research before determining if the
market is appropriate for their products. Trademark registration and IPR
protection is also strongly recommended for all U.S. product exports.
Participating in annual seafood exhibitions in China is an also a good
way to test the water and establish initial face-to-face contact with
importers and distributors. In addition, finding a suitable partner with
similar market goals supports long-term market development and sales
success.

**Imported Seafood Distribution Channels in China:**

# Trade Tables

## Trade of Certain Aquatic Products (Volume: MT; Value: \$ Million)

Imports by Category

  ---------- -------------- ------------------ ----------- ------------------- ----------- ------------------- -----------
  HS Code                   **Jan-Dec/2005**               **Jan-Dec/2006 **               **Jan-Oct/2007 **   

                            **Volume**         **Value**   **Volume**          **Value**   **Volume**          **Value**

             **Total**      1,955,813          2,904       2,192,947           3,183       1,949,033           2,944

  0302       Fish, Fresh    18,554             46          4,062               24          4,621               26

  0303       Fish, Frozen   1,579,214          2,200       1,730,681           2,418       1,507,771           2,218

  0304       Fish, Fillet   22,592             44          22,100              45          13,699              30

  0305       Fish, Dried,   7,631              31          8,415               31          7,375               28
             Salted, Brined                                                                                    

  0306       Crustaceans    93,805             290         97,155              292         76,746              257

  0307       Mollusks &     221,960            268         315,049             336         320,116             331
             Other                                                                                             

  1604       Prepared and   3,301              8           3,867               13          4,641               18
             Packaged Fish                                                                                     
             and Caviar                                                                                        

  1605       Prepared and   8,756              17          11,618              24          14,064              36
             Packaged                                                                                          
             Crustaceans                                                                                       
             and Mollusks                                                                                      

   Source:                                                                                                     
  World                                                                                                        
  Trade                                                                                                        
  Atlas                                                                                                        
  ---------- -------------- ------------------ ----------- ------------------- ----------- ------------------- -----------

**Ex**ports by Category

  --------- -------------- ------------------ ----------- ------------------- ----------- ------------------- -----------
  HS Code                  **Jan-Dec/2005**               **Jan-Dec/2006 **               **Jan-Oct/2007 **   

                           **Volume**         **Value**   **Volume**          **Value**   **Volume**          **Value**

            Total          2,378,595          7,184       2,791,776           8,600       2,259,548           7,084

  0302      Fish, Fresh    72,290             173         54,571              144         38,377              91

  0303      Fish, Frozen   429,141            571         521,458             680         352,486             495

  0304      Fish, Fillet   715,013            1,924       796,162             2,289       648,222             1,978

  0305      Fish, Dried,   50,260             212         53,855              223         44,969              187
            Salted, Brined                                                                                    

  0306      Crustaceans    131,034            508         117,062             398         81,477              270

  0307      Mollusks and   264,966            616         294,079             651         219,957             479
            Other                                                                                             

  1604      Prepared or    340,380            1,333       476,653             1,815       501,429             1,750
            Packaged Fish                                                                                     
            and Caviar                                                                                        

  1605      Prepared or    375,511            1,847       477,936             2,400       372,631             1,834
            Packaged                                                                                          
            Crustaceans                                                                                       
            and Molluscs                                                                                      

  Source:                                                                                                     
  World                                                                                                       
  Trade                                                                                                       
  Atlas                                                                                                       
  --------- -------------- ------------------ ----------- ------------------- ----------- ------------------- -----------

## Aquatic Products Trade by Country of Origin (Value: \$ million)

**Imports by Country of Origin**

  ------------------- ------------ ------------ ------------ -------------
  **Country**         **Jan-Dec    **Jan-Dec    **Jan-Dec    **Jan-Oct\*
                      2004**       2005**       2006**       2007**

  Total               2,351        2,904        3,184        2,945

  Russia              781          1,094        1,213        1,144

  **United States**   245          343          409          429

  Japan               110          171          235          152

  Canada              137          171          174          139

  Norway              130          156          160          138

  India               48           57           91           57

  Netherlands         52           65           83           80

  Korea, South        79           110          78           118

  Thailand            41           59           67           72

  Peru                32           27           64           60

  New Zealand         57           68           56           46

  Korea, North        261          93           44           24

  Indonesia           35           40           43           39

  Iceland             26           42           39           30

  Taiwan              16           22           32           45

  Other               302          386          397          372
  ------------------- ------------ ------------ ------------ -------------

**Exports by Country of Destination**

  ------------------- ------------ ------------ ------------ -------------
  **Country**         **Jan-Dec    **Jan-Dec    **Jan-Dec    **Jan-Oct\*
                      2004**       2005**       2006**       2007**

  Total               6,330        7,183        8,601        7,084

  Japan               2,609        2,642        2,802        2,209

  **United States**   946          1,259        1,738        1,361

  Korea, South        864          880          993          737

  Germany             231          277          360          310

  Hong Kong           362          332          287          232

  Spain               94           191          239          197

  United Kingdom      106          136          212          188

  Mexico              140          147          189          141

  Canada              120          153          186          166

  Malaysia            99           133          177          137

  Russia              73           119          176          261

  Belgium             46           89           116          107

  Netherlands         58           87           111          99

  Australia           60           72           103          90

  France              40           55           94           82

  Other               482          611          818          767
  ------------------- ------------ ------------ ------------ -------------

Source: World Trade Atlas

## Imports of Fish, Frozen by Country of Origin (Value: \$ million; Volume: MT)

**(Value: in \$ million)**

  -------------- -------------- ------------- ------------- --------------
  **Country**    **Jan-Dec      **Jan-Dec     **Jan-Dec     **Jan-Oct
                 2004**         2005**        2006**        2007**

  **Total**      1,517          2,200         2,418         2,218

  Russia         753            1,060         1,145         1,090

  United States  201            295           339           378

  Japan          80             140           206           125

  Norway         109            134           133           110

  Netherlands    52             64            82            78

  India          22             38            68            40

  Canada         33             60            57            42

  New Zealand    39             44            41            35

  Korea, South   28             52            40            37

  Iceland        23             39            38            30

  Thailand       20             35            34            43

  Other          158            240           235           211
  -------------- -------------- ------------- ------------- --------------

**(Volume: in metric ton)**

  -------------- -------------- ------------- ------------- --------------
  **Country**    **Jan-Dec      **Jan-Dec     **Jan-Dec     **Jan-Oct
                 2004**         2005**        2006**        2007**

  Total          1,306,202      1,579,214     1,730,681     1,507,771

  Russia         590,728        692,917       706,827       616,572

  United States  131,487        175,723       190,633       209,572

  Japan          65,983         95,801        149,979       98,329

  India          38,573         57,803        114,174       65,806

  Netherlands    96,415         87,893        108,016       108,165

  Norway         89,827         81,442        73,136        52,465

  Thailand       37,818         54,405        61,094        70,543

  Canada         27,592         43,356        38,011        30,623

  New Zealand    33,473         38,645        35,477        31,361

  Indonesia      12,428         27,643        28,710        28,443

  Korea, South   20,561         26,074        25,489        24,254

  Other          161,317        197,511       199,136       171,639
  -------------- -------------- ------------- ------------- --------------

Source: World Trade Atlas

## Imports of Flatfish by Country of Origin (Value: \$ million; Volume: MT)

**(Value: in \$ million)**

  ------------- ------------- -------------- -------------- -------------
                **Jan-Dec     **Jan-Dec      **Jan-Dec      **Jan-Oct
                2004**        2005**         2006**         2007**

  Total         153           242            255            239

  **United      56            105            112            127
  States**                                                  

  Russia        42            70             61             42

  Canada        7             17             15             12

  Taiwan        3             1              8              1

  Denmark       1             4              8              5

  Korea, South  7             5              7              5

  Greenland     3             6              5              10

  Iceland       4             5              5              5

  Norway        3             8              5              5

  Other         26            21             28             27

                                                            
  ------------- ------------- -------------- -------------- -------------

**(Volume: in metric ton)**

  ------------- ------------- ------------- -------------- --------------
                **Jan-Dec     **Jan-Dec     **Jan-Dec      **Jan-Oct
                2004**        2005**        2006**         2007**

  Total         125,665       168,193       168,142        154,601

  **United      46,687        69,378        74,018         81,103
  States**                                                 

  Russia        40,754        53,242        43,236         32,993

  Canada        5,063         11,834        8,190          6,914

  China         5,022         1,827         6,773          1,419

  Taiwan        1,039         1,041         5,383          1,107

  Korea, South  4,873         3,134         4,714          2,793

  Denmark       1,172         2,186         4,033          2,736

  Greenland     2,609         3,895         3,543          6,016

  Norway        2,049         4,208         2,277          1,884

  Iceland       2,606         2,730         2,032          1,934

  Other         13,790        14,718        13,943         15,702
  ------------- ------------- ------------- -------------- --------------

Source: World Trade Atlas

## Imports of Cod by Country of Origin (Value: \$ million; Volume: MT)

**(Value: in \$ million)**

  ------------- -------------- -------------- ------------- --------------
  **Country**   **Jan-Dec      **Jan-Dec      **Jan-Dec     **Jan-Oct
                2004**         2005**         2006**        2007\***

  Russia        553            748            650           575

  United States 66             60             73            58

  Netherlands   30             33             40            29

  Japan         11             12             27            25

  Norway        7              11             27            29

  New Zealand   17             18             16            8

  Korea, South  12             17             14            15

  Germany       3              13             7             6

  Canada        1              2              5             4

  Chile         2              8              4             0

  United        0              6              4             1
  Kingdom                                                   

  Greenland     2              0              2             4

  Other         19             25             20            12

  Total         725            954            889           767
  ------------- -------------- -------------- ------------- --------------

**(Volume: in metric ton)**

  ------------- -------------- -------------- ------------- --------------
  **Country**   **Jan-Dec      **Jan-Dec      **Jan-Dec     **Jan-Oct
                2004**         2005**         2006**        2007\***

  Russia        411,846        499,088        396,857       293,255

  Netherlands   64,719         56,115         59,257        40,038

  United States 37,146         32,643         34,810        23,527

  Japan         14,986         15,650         25,836        22,408

  New Zealand   13,534         15,510         13,301        9,503

  Korea, South  9,499          12,339         11,833        8,868

  Norway        4,777          4,374          10,793        9,791

  Ireland       8,614          5,565          7,786         16

  Germany       6,115          8,888          5,873         6,422

  Korea, North  1,468          3,595          4,073         981

  Canada        1,140          1,503          3,491         2,674

  Other         11,891         14,520         18,366        6,687

  Total         585,735        669,791        592,275       424,169
  ------------- -------------- -------------- ------------- --------------

Source: World Trade Atlas

## Imports of Plaice by Country of Origin (Value: \$ million; Volume: MT) 

**(Value: in \$ million)**

  ------------- -------------- -------------- -------------- -------------
                **Jan-Dec      **Jan-Dec      **Jan-Dec      **Jan-Oct
                2004**         2005**         2006**         2007**

  Total         97.2           184.2          183.3          171.7

  United States 53.5           98.2           109.4          123.3

  Russia        28.5           56.7           47.1           33.7

  Canada        2.3            9.9            6.6            3.8

  Denmark       1.0            1.8            5.6            0.3

  Korea, South  4.1            3.3            5.4            1.9

  Iceland       1.1            3.1            1.8            0.3

  China         1.1            0.5            1.5            0.8

  Netherlands   0.1            0.2            1.4            0.9

  Norway        1.4            2.0            0.9            1.2

  Spain         2.2            2.5            0.6            2.3

  Other         1.9            6.1            3.0            3.2
  ------------- -------------- -------------- -------------- -------------

**(Volume: in metric ton)**

  ------------- -------------- -------------- -------------- -------------
                **Jan-Dec      **Jan-Dec      **Jan-Dec      **Jan-Oct
                2004**         2005**         2006**         2007**

  Total         89,732         138,002        132,093        121,413

  United States 45,500         67,524         72,737         79,526

  Russia        30,169         47,397         37,805         29,489

  Canada        1,905          8,236          4,603          3,244

  China         3,558          1,555          4,439          1,344

  Korea, South  3,176          2,511          4,137          1,349

  Denmark       753            1,293          2,873          356

  Netherlands   81             155            942            730

  Spain         1,773          2,768          758            1,520

  Iceland       685            1,407          685            396

  Germany       323            1,524          677            287

  Other         1,809          3,631          2,436          3,171
  ------------- -------------- -------------- -------------- -------------

Source: World Trade Atlas

## Imports of Salmon by Country of Origin (Value: \$ million; Volume: MT)

(Value: in \$ million)

  ------------- -------------- ------------- -------------- -------------
                **Jan-Dec      **Jan-Dec     **Jan-Dec      **Jan-Dec
                2004**         2005**        2006**         2007**

  Total         126            239           337            244

  Japan         44             87            115            51

  Russia        32             69            96             37

  United States 16             45            78             113

  Norway        24             20            25             30

  Chile         4              5             12             7

  Canada        3              9             8              4

  Korea, South  1              1             2              0

  Denmark       2              1             0              0

  Other         1              0             1              1
  ------------- -------------- ------------- -------------- -------------

**(Volume: in metric ton**)

  ------------- -------------- ------------- -------------- -------------
                **Jan-Dec      **Jan-Dec     **Jan-Dec      **Jan-Dec
                2004**         2005**        2006**         2007**

  Total         89,084         132,865       162,730        117,311

  Japan         35,567         45,913        54,645         26,627

  Russia        22,402         41,276        49,900         19,003

  United States 17,294         32,437        42,045         58,032

  Chile         2,268          2,881         5,617          3,794

  Norway        6,700          3,532         4,443          6,082

  Canada        2,061          4,891         3,146          2,093

  Korea, South  399            405           991            121

  Other         2,393          1,531         1,942          1,558
  ------------- -------------- ------------- -------------- -------------

Source: World Trade Atlas

## Imports of crustaceans by Country of Origin (Value: \$ million; Volume: MT)

**(Value: in \$ Million)**

  -------------- ------------- ------------- ------------- --------------
                 **Jan-Dec     **Jan-Dec     **Jan-Dec     **Jan-Oct
                 2004**        2005**        2006**        2007**

  Total          312.0         289.7         292.2         257.0

  Canada         85.3          94.3          96.7          76.0

  Russia         13.5          20.5          37.7          37.0

  Greenland      15.2          23.0          21.9          16.0

  Thailand       11.5          13.3          20.4          18.0

  India          17.3          14.5          16.8          11.0

  Japan          13.6          17.2          15.1          13.0

  Indonesia      15.0          12.2          13.4          10.0

  United States  11.5          11.2          9.3           10.0

  Australia      10.9          15.1          8.7           9.0

  Malaysia       1.5           5.4           6.2           9.0

  Denmark        9.2           8.9           5.7           4.0

  Other          107.6         54.1          40.3          44.0
  -------------- ------------- ------------- ------------- --------------

(Volume: in metric ton)

  -------------- ------------- ------------- ------------- --------------
                 **Jan-Dec     **Jan-Dec     **Jan-Dec     **Jan-Oct
                 2004**        2005**        2006**        2007**

  Total          95,870        93,805        97,155        76,746

  Canada         38,076        38,372        37,084        23,475

  Russia         3,532         5,894         12,681        12,690

  Greenland      7,602         10,793        10,922        8,083

  Japan          3,072         4,428         4,473         3,411

  Thailand       4,553         4,212         4,449         3,715

  India          4,647         3,513         4,222         2,451

  Denmark        4,701         4,760         3,431         1,851

  Indonesia      3,682         3,224         2,671         2,016

  United States  2,958         2,568         2,522         3,621

  Australia      2,082         2,412         2,024         1,302

  Other          20,965        13,630        12,676        14,131
  -------------- ------------- ------------- ------------- --------------

Source: World Trade Atlas

## Imports of Mollusks and Other by Country of Origin (Value: \$ million; Volume: MT)

**(Value: in \$ Million)**

  ------------ -------------- -------------- -------------- -------------
               **Jan-Dec      **Jan-Dec      **Jan-Dec      **Jan-Oct
               2004**         2005**         2006**         2007**

  Total        332            268            336            331

  Peru         30.6           22.6           54.4           45.0

  United       15.1           23.8           48.4           29.8
  States                                                    

  Korea, North 128.1          51.1           38.2           19.6

  Korea, South 45.4           50.1           32.1           70.5

  Argentina    0.2            1.5            23.1           14.3

  Russia       7.2            9.4            21.1           12.4

  New Zealand  14.4           21.6           13.1           10.7

  Canada       7.7            8.3            12.3           12.3

  Taiwan       4.5            3.1            11.4           29.2

  Other        79.3           76.5           81.7           87.7
  ------------ -------------- -------------- -------------- -------------

(Volume: in metric ton)

  ------------ -------------- -------------- -------------- -------------
               **Jan-Dec      **Jan-Dec      **Jan-Dec      **Jan-Oct
               2004**         2005**         2006**         2007**

  Total        253,644        221,960        315,049        342,130

  Peru         41,205         28,582         70,169         62,772

  United       17,477         24,508         47,954         19,443
  States                                                    

  Korea, North 71,833         53,513         41,652         16,678

  Argentina    498            1,621          26,130         20,365

  Korea, South 26,882         26,551         19,151         88,406

  Taiwan       8,080          6,373          18,147         55,941

  New Zealand  15,667         22,928         12,126         11,271

  Russia       4,223          3,245          12,025         2,507

  India        9,193          5,698          7,039          6,434

  Mexico       4,033          5,978          6,935          3,253

  Other        54,553         42,962         53,721         55,061
  ------------ -------------- -------------- -------------- -------------

Source: World Trade Atlas

## Exports of Fish Fillet by Destination (Value: \$ million)

  -------------- -------------- ------------- -------------- -------------
  **Country**    **Jan-Dec      **Jan-Dec     **Jan-Dec      **Jan-Oct
                 2004**         2005**        2006**         2007**

  Total          1,472          1,924         2,289          1,978

  United States  430            624           645            526

  Japan          370            423           446            366

  Germany        224            265           340            287

  United Kingdom 98             115           183            150

  Canada         61             88            107            96

  Netherlands    46             71            88             75

  France         33             40            72             62

  Poland         31             52            52             45

  Spain          19             24            47             56

  Korea, South   44             36            41             44

  Russia         5              18            39             44

  Other          112            166           229            227
  -------------- -------------- ------------- -------------- -------------

## Exports of Prepared and Packaged Fish and Caviar by Destination (Value: \$ million)

  -------------- -------------- ------------- -------------- -------------
  **Country**    **Jan-Dec      **Jan-Dec     **Jan-Dec      **Jan-Oct
                 2004**         2005**        2006**         2007**

  Total          1,190          1,333         1,815          1,750

  Japan          940            933           1,020          828

  United States  54             83            303            342

  Korea, South   46             80            80             70

  Russia         16             34            69             137

  Hong Kong      73             81            60             64

  Mexico         2              3             49             72

  Malaysia       9              22            38             22

  Indonesia      1              13            34             10

  Spain          5              8             22             24

  Italy          2              5             12             18

  Ukraine        1              4             11             17

  Other          42             66            117            146
  -------------- -------------- ------------- -------------- -------------

Source: World Trade Atlas

## Exports of Prepared and Preserved Crustacean and Mollusks by Destination (Value: \$ million)

  ------------- ------------- -------------- -------------- --------------
  **Country**   **Jan-Dec     **Jan-Dec      **Jan-Dec      **Jan-Oct
                2004**        2005**         2006**         2007**

  Total         1,402         1,847          2,400          1,834

  Japan         532           657            765            605

  United States 236           323            550            340

  Korea, South  80            108            168            141

  Spain         19            91             116            49

  Mexico        100           102            111            64

  Hong Kong     111           115            100            86

  Malaysia      45            78             92             83

  Belgium       19            48             72             54

  Australia     21            22             59             58

  Russia        44            55             56             69

  Other         196           247            310            284
  ------------- ------------- -------------- -------------- --------------

## Exports of Prepared and Preserved Mollusks by Destination (Value: \$ million)

  -------------- ------------- -------------- -------------- --------------
   **Country**   **Jan-Dec     **Jan-Dec      **Jan-Dec      **Jan-Oct
                 2004**        2005**         2006**         2007**

  Total          522           719            792            651

  Japan          348           423            441            338

  United States  46            94             102            79

  Korea, South   36            56             88             65

  Russia         41            51             52             59

  Hong Kong      4             16             19             15

  Malaysia       2             11             18             11

  Canada         7             9              11             11

  Ukraine        1             3              9              12

  Korea, North   1             2              4              14

  Other          35            56             47             48
  -------------- ------------- -------------- -------------- --------------

Source: World Trade Atlas

## Exports of Shrimps and Prawns by Destination (Value: \$ million; Volume: MT)

**(Value: in \$ million)**

  -------------- ------------- ------------- -------------- -------------
  **Country**    **Jan-Dec     **Jan-Dec     **Jan-Dec      **Jan-Oct
                 2004**        2005**        2006**         2007**

  Total          1,037.1       1,086.9       1,337.7        954.9

  United States  188.7         144.8         309.4          135.5

  Japan          225.4         247.8         263.0          214.7

  Spain          8.7           103.7         118.4          78.5

  Mexico         106.8         111.6         110.4          58.0

  Hong Kong      132.6         118.9         101.7          76.8

  Korea, South   70.1          72.7          93.9           71.2

  Malaysia       46.5          68.0          72.9           67.0

  Australia      31.8          25.2          56.4           55.6

  Taiwan         14.3          20.5          29.8           38.8

  Canada         30.1          22.8          23.6           28.1

  Belgium        1.3           14.3          19.1           11.1

  United Kingdom 1.9           7.4           10.3           16.0

  Korea, North   0.0           1.9           5.4            15.2

  Russia         1.9           2.0           2.0            9.2

  Italy          1.2           8.9           10.3           8.7

  Vietnam        16.2          32.2          15.0           4.0

  Papua New      0.0           0.0           18.0           0.0
  Guinea                                                    

  Other          159.5         84.3          78.2           66.5
  -------------- ------------- ------------- -------------- -------------

**(Volume: in metric ton)**

  -------------- ------------- ------------- -------------- -------------
  **Country**    **Jan-Dec     **Jan-Dec     **Jan-Dec      **Jan-Oct
                 2004**        2005**        2006**         2007**

  Total          220,421       223,087       269,908        194,189

  United States  35,176        28,967        56,044         24,455

  Japan          36,366        36,855        41,142         40,476

  Korea, South   36,869        30,482        39,142         23,444

  Spain          2,243         26,644        28,339         20,451

  Hong Kong      30,457        24,537        20,080         14,287

  Mexico         16,940        17,780        17,247         9,375

  Malaysia       8,899         11,168        11,880         11,436

  Australia      5,899         4,887         10,441         9,371

  Taiwan         6,736         8,428         10,122         10,514

  Other          40,837        33,340        35,472         30,381
  -------------- ------------- ------------- -------------- -------------

Source: World Trade Atlas

## Exports of Shrimps and Prawns by Category (Value: \$ Million; Volume: MT) 

**Value: in \$ million)**

  ----------------------- ------------ ------------- ------------- -------------
                          **Jan-Dec    **Jan-Dec     **Jan-Dec     **Jan-Oct
                          2004**       2005**        2006**        2007**

  Aquatic Shrimp & Prawn  1,037        1,087         1,338         955

  Shrimps & prawns, inc   411          327           187           139
  in shell, frozen                                                 

  Shrimps & prawns, inc   37           33            36            20
  in live,                                                         
  Fr/Ch/Salted/Dried/In                                            
  Brine                                                            

  Shrimps & prawns,       589          727           1,115         796
  prepared or preserved                                            
  ----------------------- ------------ ------------- ------------- -------------

**(Volume: in metric ton)**

  ----------------------- ------------ ------------- ------------- -------------
                          **Jan-Dec    **Jan-Dec     **Jan-Dec     **Jan-Oct
                          2004**       2005**        2006**        2007**

  Aquatic Shrimp & Prawn  220,421      223,087       269,908       194,189

  Shrimps & prawns, inc   90,630       72,293        41,986        40,605
  in shell, frozen                                                 

  Shrimps & prawns, inc   27,979       21,870        27,279        11,287
  in live,                                                         
  Fr/Ch/Salted/Dried/In                                            
  Brine                                                            

  Shrimps & prawns,       101,812      128,924       200,643       142,299
  prepared or preserved                                            
  ----------------------- ------------ ------------- ------------- -------------

Source: World Trade Atlas

## Exports of Crawfish by Destinations (Value: \$ million)

  ------------- -------------- ------------- ------------- --------------
  **Country**   **Jan-Dec      **Jan-Dec     **Jan-Dec     **Jan-Oct
                2004**         2005**        2006**        2007**

  United States 37             29            60            48

  Belgium       13             32            48            40

  Denmark       13             24            31            12

  Sweden        11             19            19            18

  United        2              6             6             8
  Kingdom                                                  

  Germany       4              4             3             3

  Japan         1              1             2             1

  Other         7              8             7             9

  Total         88             125           175           139
  ------------- -------------- ------------- ------------- --------------

## Exports of Eel Products by Destinations (Value: \$ million)

  ------------- -------------- ------------- ------------- --------------
  **Country**   **Jan-Dec      **Jan-Dec     **Jan-Dec     **Jan-Oct
                2004**         2005**        2006**        2007**

  Total         735            589           596           509

  Japan         647            505           498           399

  Indonesia     3              6             34            10

  United States 15             17            27            25

  Russia        1              3             9             17

  Hong Kong     48             40            8             21

  Australia     2              1             2             2

  Korea, South  12             7             2             7

  Singapore     4              2             2             4

  Poland        1              5             1             6

  Germany       0              0             1             6

  Other         4              1             10            12
  ------------- -------------- ------------- ------------- --------------

Source: World Trade Atlas

## Exports of All Tilapia Products by Destination (Value: \$ million)

  ------------------- ------------ ------------- ------------ ------------
  **Country**         **Jan-Dec    **Jan-Dec     **Jan-Dec    **Jan-Oct
                      2004**       2005**        2006**       2007**

  Total               156          232           369          385

  United States       116          184           252          237

  Mexico              28           29            59           58

  Russia              0            0             12           37

  Israel              1            3             9            7

  Germany             0            2             5            5

  Belgium             0            3             4            4

  Puerto Rico (U.S.)  1            2             4            2

  Hong Kong           1            2             3            4

  Canada              2            3             3            2

  Poland              0            0             2            4

  Netherlands         0            0             2            4

  United Arab         0            1             1            1
  Emirates                                                    

  Other               6            5             11           19
  ------------------- ------------ ------------- ------------ ------------

## Exports of Tilapia/Prepared or Preserved by Destination (Value: \$ million)

  ------------------- ------------ ------------ ------------ ------------
  **Country**         **Jan-Dec    **Jan-Dec    **Jan-Dec    **Jan-Oct
                      2004**       2005**       2006**       2007**

  Total               14           28           232          360

  United States       12           23           161          228

  Mexico              1            2            37           56

  Israel              0            0            6            6

  Russia              0            0            6            36

  Germany             0            0            4            3

  Belgium             0            1            3            3

  Puerto Rico (U.S.)  0            0            3            2

  Hong Kong           0            1            2            4

  Poland              0            0            2            3

  Canada              1            1            2            2

  Netherlands         0            0            1            3

  Other               0            1            6            15
  ------------------- ------------ ------------ ------------ ------------

## Exports of Tilapia/Fillet by Destination (Value: \$ million)

  ------------------- ------------ ------------ ------------ ------------
  **Country**         **Jan-Dec    **Jan-Dec    **Jan-Dec    **Jan-Oct
                      2004**       2005**       2006**       2007**

  Total               103          163          92           10

  United States       78           133          65           2

  Mexico              20           19           13           0

  Russia              0            0            5            1

  Israel              0            2            2            1

  Germany             0            2            1            2

  Belgium             0            2            1            1

  Other               4            6            5            3
  ------------------- ------------ ------------ ------------ ------------

Source: World Trade Atlas

## Exports of Tilapia/Fillet by Destination (Volume: MT)

  -------------- -------------- -------------- ------------- -------------
  **Country**    **Jan-Dec      **Jan-Dec      **Jan-Dec     **Jan-Oct
                 2004**         2005**         2006**        2007**

  Total          36,242         53,494         31,233        3,915

  United States  27,293         43,357         21,398        716

  Mexico         7,540          6,578          4,671         142

  Russia         8              22             2,246         546

  Israel         152            595            779           346

  Germany        0              619            376           698

  Belgium        0              512            279           242

  Other          1,248          1,811          1,484         1,226
  -------------- -------------- -------------- ------------- -------------

## Exports of Tilapia/Prepared and Preserved by Destination (Volume: MT)

  -------------- -------------- -------------- ------------- -------------
  **Country**    **Jan-Dec      **Jan-Dec      **Jan-Dec     **Jan-Oct
                 2004**         2005**         2006**        2007**

  Total          7,781          14,494         90,855        153,887

  United States  6,622          10,608         58,294        89,889

  Mexico         568            1,509          18,675        28,893

  Russia         0              0              2,513         15,212

  Hong Kong      137            190            715           1,176

  Canada         409            240            498           509

  Israel         0              257            2,375         2,752

  Germany        0              53             1,356         902

  Puerto Rico    0              20             953           878

  Singapore      0              0              841           579

  Belgium        0              437            812           941

  Poland         0              52             622           1,240

  Netherlands    0              106            535           1,604

  Dominican      0              126            316           546

  United Kingdom 0              9              309           474

  Zambia         0              0              250           859

  United Arab    0              364            240           958
  Emirates                                                   

  Kuwait         0              0              221           822

  France         0              21             62            780

  Ukraine        0              0              31            790

  Other          45             502            1,238         4,080
  -------------- -------------- -------------- ------------- -------------

Source: World Trade Atlas