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Biggest Fish Market, Big Potential For Maine
“It was a significant investment on Bill [Atwood’s] part,” said Ben in reference to the trade mission. After a 13 hour flight (Chicago-Tokyo) he visited Tsukiji Fish Market, a 55 acre site owned by Tokyo’s Metropolitan Government, where the tuna auction begins at 5:30 a.m. One hundred thousand pounds of headless tuna, graded by provenance and size, sat thawing on pallets lining the trading floor as licensed buyers and wholesalers carrying, what Metivier described as “a whole host of knives,” surveyed the goods. Brass bells rang as post-it-notes were slapped onto bellies of purchased fish. Buyers carried phones, speculating events (weather surrounding fishing grounds, demand, supply) affecting value and availability of fish. Logistics, refrigeration, communications and computer technology are the lifeline for Tsukiji. Traders connected directly to boats fishing Maine, Mediterranean and Gloucester waters, arranging transport. Ben Metivier summed up Tsukiji as “organized chaos.” NOAA’s U.S. commercial specialist Tomohiro Asakawa guided Metivier through Tokyo’s Metropolitan Central Wholesale Market with Wade Merritt of Maine’s International Trade Center, Jeffrey Porter of the U.S. Dept. Of Commerce, Portland, and Ned Porter of Maine’s Dept. Of Agriculture, Food, and Rural Resources. At Tsukiji At Tsukiji, the global price for tuna is set before the rest of the world has had coffee. When it’s 8 am, U.S., it’s 10pm in Japan. By then, shipments are arriving at Tsukiji by land, air and sea. Almost five million pounds of seafood moves through Tsukiji per day. Japan consumes an estimated 33% of the world tuna catch, and 11% of total world fisheries imports. Within Asia’s “westernized lifestyle” thrives a growing market for prepared foods and restaurant supply. Japan’s Marine Stewardship Council’s COC (Chain of Custody) and Marine Eco certification labeling assures conscientious Asian consumers that fish were harvested using ecologically sustainable fishing methods. Atlantic bluefin tuna quotas were recently cut by 25%, and southern bluefin by 50% in Japan, where 630,000 tons of tuna (almost 1/3 of the world’s catch) was consumed in 2005. With a decline in local fisheries, heavy enforcement of exclusive economic zones and fishing regulation, Japan is a top importer of U.S. seafood (ahead of Canada, China Korea and Germany). The Japanese spend 20% of their annual income on food, while that percentage rises to 23% in South Korea (Americans spend 10%). As Japan’s retail stores consolidate, they rely increasingly upon farmed fish bought directly from wholesalers and importers, not Tsukiji’s auctions, for controlled supply. The worst drawback with farmed tuna is the pressure put on herring, a staple feed for ranched tuna, bringing into question sustainable practice issues. Wild-caught fish draw the highest bids at auction. An Insatiable Desire For Luxuries “The Koreans and Japanese have an insatiable desire for luxuries,” said Ben Metivier. In Japan the average savings account tops $100,000, and the disposable income hovers around $4,000, monthly. “They are sophisticated, and they’re very familiar with American lobster.” The Japanese have shown a preference for fine American art, American cigarettes, Levis, transcendental literature, Elvis and baseball. In March 2008, the Boston Red Sox opening game will happen in Tokyo. Lobster rolls would meet Japan’s COC standards before Fenway franks would. Metivier saw the most trading potential in Korea where the group toured the Noryangjin Fish Market operated by Korea’s Department of Agriculture, Forestry and Fisheries. “There was a tremendous demand for seafood, and no way to harness it. The Free Trade agreement between Korea and the U.S. will be beneficial,” said Ben. Korea imports 70% of its food. From Seoul, Metivier hopped on a plane to China, after learning the Fisheries and Seafood Expo was going on in Dalian. What did he hear regarding American lobster there? “Not a word,” he said. In 2006, China imported $4 billion worth of seafood and exported $8 billion. China recently imposed a “zero growth” policy on her fishing fleet in the interest of conservation. As their primary use is processing (at Qingdao and Dalian), then re-exporting processed seafood, foreign businesses are considering processing in China. Metivier said an interesting dynamic is happening with U.S. exports and a weaker dollar—increased interest in buying from the U.S. “We need to bring higher quality to the market and to diversify.” When Asia Thinks Lobster, They Think Canada Ben Metivier points out the advantages of heavy lobster promotion funded by the Canadian Government. While U.S. exports to Japan totaled $6.6 million (live lobster) and $305,996 (frozen), Canada’s exports totaled US$13.6 million for live product and $14.9 million for frozen lobster. Although Atwood Lobster is one of five licensed processors in Maine, “it’s really expensive,” says Metivier, citing overhead costs. To stay competitive in the global market, U.S. lobster dealers handling large volume buy from Canada, and always have. Atwood lost a significant contract when he filled in an order for shipment to France with some Canadian lobsters and local fishermen objected. He lost the order to a Canadian firm, which had the inventory. “The Maine Brand is a solid promotion, but it doesn’t work for the lobster industry,” explained a concerned local lobsterman. “When the dealer’s hands are tied, he’s limited, and we all lose. Canada doesn’t blink an eye at filling in orders with Maine lobster— that’s why they’ve got the business they do.” Atwood ships to Germany, Spain, Belgium, Italy, France, Switzerland and Portugal. As Atwood’s crew loads cargo containers destined for Europe via American Airlines onto one of their trucks, Metivier is focused on the lobster smack BAJUPA, as he integrates what he saw in Japan, South Korea and China, figuring how it will apply to Maine’s lobster industry. |
