China's live crab imports increase 26% to an impressive $1.63 billion in 2023; meanwhile, live lobster imports also increased by 29%, reaching 790 million USD.

'Fertile land' for seafood exporters

According to a report by the Foreign Agricultural Services Agency (United States Department of Agriculture - USDA); US live lobster exports to China in 2023 saw strong growth, up 86%, reaching 182 million USD and accounting for 1/4 of China's lobster market share, the highest level in half a decade.

The significant growth in US live lobster exports to China is partly due to a decline in lobster exports from Canada to this market.

However, Canada is still the number 1 live lobster exporter to the Chinese market. In 2023, China imported 604 million USD of live lobster from Canada, an increase of 17% over the same period last year.

China's demand for live lobsters and live crabs is increasing sharply. Photo: SS.

As for live crab, US live crab exports to China in 2023 reached 73 million USD, returning to the same level as 2021 after a decline in 2022.

The United States ranks 4th in live crab exports to China with a 4.5% market share, behind Russia (60%), Canada (10.5%) and Myanmar (5%).

Russia leads the export of live crabs to China because the country is geographically close and has stable trade connections with China. Russia's live crab exports to China increased by 138% from 2020 to 2023.

Myanmar's live crab exports to China increased 104% from 2020 to 2023, thanks in part to the Regional Comprehensive Economic Partnership trade deal and easing of COVID-related restrictions.

Chinese consumers' strong interest in imported live seafood presents a lucrative opportunity for U.S. seafood exporters; because China's seafood products do not have diversity, even though this is the largest seafood producing country in the world.

Today's Chinese consumers continue to seek high quality and internationally recognized food products.

China's average seafood consumption per capita in 2022 is 16.2 kg. However, some industry sources said that the average seafood consumption per capita in this market is up to 40.33 kg. Meanwhile, the average seafood consumption per capita in the US is only about 9.5 kg. This number shows a fairly high difference for easy comparison of demand.

Delicious dishes such as lobster, king crab, and Dungeness crab are in high demand, especially for prestigious events such as banquets and weddings.

China's demand for live lobsters and live crabs has increased sharply because consumers are increasingly aware that; Seafood is a healthy source of protein, and the convenience of e-commerce platforms has facilitated the need for quick delivery.

The report of the Foreign Agricultural Services Agency also said; U.S. seafood exporters can capitalize on this trend by offering seafood products that domestic Chinese suppliers cannot match in quality and variety.

In addition, major holidays such as Lunar New Year and Mid-Autumn Festival are also peak seasons to increase revenue from selling live seafood. American seafood exporters benefit significantly when tapping this market during this festive period.

Vietnam's lobster and crab exports surged strongly

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), by the end of the first quarter of 2024, Vietnam's seafood export turnover reached 1.95 billion USD, an increase of 6.5% over the same period last year. The United States, Japan, China and Hong Kong are the top 3 largest import markets.

In particular, exports to the US market had a much stronger breakthrough, growing by 14.1%, reaching nearly 324 million USD.

Exports to the Japanese market in the first quarter of this year remained at the same level as last year.

Meanwhile, exports to China and Hong Kong markets increased by 12.6% over the same period last year, reaching nearly 314 million USD. Pangasius, white-legged shrimp, lobster, anchovies and crab are the 5 most exported Vietnamese seafood species to China.

In particular, Vietnam's lobster and crab exports to this market made a strong breakthrough in the first quarter of this year, in which lobster increased 11 times and crab increased 7 times compared to the first quarter of 2023.

Many seafood experts say that the Chinese are the "king of processing", so this market loves raw materials, especially live seafood products, such as crabs and lobsters. Current workers do not have too high an income, so the demand for processed seafood is not high.

VASEP General Secretary Truong Dinh Hoe said that China has traditionally favored fresh seafood products, but currently Vietnamese seafood export enterprises when entering this market are limited by regulations on Official export of fresh seafood.

Requires management along the production chain

For live seafood, China is currently requiring management along the production chain, from farming/exploitation, to harvesting/collection, transportation, packaging and export for consumption. Especially now, the General Administration of Customs of China (GACC) is asking for comments on the draft protocol for Vietnam's live seafood exported to this market. Accordingly, China is requiring subjects participating in this process to have codes, to have farming areas, to be controlled and to be able to trace their origin...

For live seafood, China is currently requiring management along the production chain, from farming/exploitation, to harvesting/collection, transportation, packaging and export for consumption. Photo: Hong Tham.

China also requires packaging facilities to register and be on the list of those allowed to export to China in order to participate in the process of exporting live seafood to this market.

China's specific requirements for live aquatic products for export include: Exported products on the List recognized by China, 48 species of live aquatic animals and aquatic animals.

Farming facilities are inspected by local aquaculture/veterinary authorities; certification of food safety conditions/veterinary hygiene conditions; Issued code/sampled for disease monitoring during farming process (live black tiger shrimp, vannamei shrimp).

NAFIQPM appraises the food safety conditions of the facility that packages and exports live aquatic products, and sends a written request along with the facility's registration dossier to the Department of Animal and Plant Quarantine Supervision, GACC.

The Animal and Plant Quarantine Supervision Department updates the list of facilities that meet the requirements on the GACC website.

Export shipments are certified. List of daily deeds sent to China Customs (Nan Ninh) for comparison.

As for spiny lobsters, from February 1, 2021, China stipulates that spiny lobsters are on the list of endangered group 2. In May 2023, China amended the Law on wildlife protection, which prohibits catching animals on the endangered list issued in 2021. Therefore, China prohibits catching, using, and trading wild lobsters. China's way of identifying farmed lobsters is that they are not caught directly, but must go through the farming process; If the seed must be F2, if the seed is exploited from the wild, it is also considered naturally exploited shrimp.

Chinese importers who want to import giant shrimp must apply for a license from the Fisheries Department (Ministry of Agriculture of China). GACC directs the Customs system at border gates to strictly control imported wild lobsters.

Vietnamese packaging facilities on the list registered to export live seafood to China will comply with appraisal requirements; certifying live seafood shipments exported to this market in accordance with regulations in Circulars 48/2013/TT-BNNPTNT and 32/2022/TT-BNNPTNT...

According to statistics from the Department of Quality, Processing and Market Development (NAFIQPM); By the end of March 2024, Vietnam had exported 1,517 shipments of live seafood to China and currently no shipment has been warned about chemical and antibiotic residues.

According to: Hong Tham - Agriculture Newspaper