International seafood exports reached
US$ 52 billion in 1995, up from US$ 35.8 billion in 1990. The share of exports from developing countries has grown from 44 % in 1990 to 51 % in 1995 and their net receipts of foreign exchange rose from US$ 10.4 billion to US$ 18 billion in the same period. The rapid growth in aquaculture production has made the sector important to the economy of many developing countries and, in the case of some traded aquatic products, the sector has become either an important source of supply or themain supplier. In these cases, fluctuation in production of farmed products has significant impact on price trends. In general, however, aquaculture products have helped to stabilize supplies of traded products and to bring down prices over the years. This has made what was previously luxury products available at lower prices and helped expand markets.

The extent of regional and international trade in aquaculture products is difficult to analyze because trade in many aquaculture products is not yet well documented in the main producing countries, and since international trade statistics do not distinguish between wild and farmed origin. Thus, the exact breakdown in farmed and wild origin in international trade is open to interpretation. This situation will change gradually, as producers associations emerge in main producing countries and begin to keep records and in response to various trade regulations/pressures which distinguish between farmed and fished products.

The main traded products from aquaculture in 1995 were shrimp and prawns, salmon and molluscs. Other species showing strong growth in trade are tilapia, seabass and seabream.

Crustaceans. The most prominent product from aquaculture in international trade is marine shrimp and aquaculture has been the major force behind increased shrimp trading during the past 7-8 years. Shrimp is already the most traded seafood product internationally, and in 1996 about 25 % or 700,000 mt came from aquaculture (Rosenberry, 1996). Since the late 1980s, farmed shrimp has tended to act as a stabilizing factor for the shrimp industry. Therefore, the major crop failures in Asia and Latin America

International Trade

Products

A. Lem¹, and Z. H. Shehadeh²

²Fishery Resources Division

during the past few years have had an impact on overall supply, demand, prices and consumption trends. For example, shrimp consumption declined in the US in 1995 due to lower imports caused by declining supplies from Asian countries.

The major markets are Japan, the USA and, to a lesser extent, the European Union (EU), and the largest exporters of farmed shrimp (during the first nine months of 1996) are Thailand, Ecuador, Indonesia, India, Mexico, Bangladesh and Vietnam (Branstetter, 1997). The contribution of farmed shrimp to total domestic shrimp production in these exporting countries is shown in Table 1. Demand for shrimp and prawns is expected to increase in coming years. Asian markets such as China, Korea Rep., Thailand, Malaysia, will expand as local economies grow and consumers demand more seafood. This trend is already reducing the availability of shrimp to traditional importers and will eventually put upward pressure on prices if supplies do not expand. Increase in prices will encourage new entries into shrimp farming; if sustainable methods of production are practised that would help avoid production crashes, national curbs on production expansion, or trade embargoes.

Trade in crab species has increased with growing aquacultural production (1995: 98,000 mt ). Especially important have been the exports of China ( 21,000 mt in 1995) to Hong Kong and Japan.

Finfish. In terms of total aquaculture output, finfish production ranks first with 14.7 million mt produce

or about 53 % of the total production from aquaculture. The major part of this is carps (69% of total finfish production in 1995) which are consumed locally in the producing countries (mainly China and India).

International trade in farmed salmon has increased from virtually zero to more than 500,000 mt (1996) in less than a decade. The traded species are mainly Atlantic salmon and, to a much lesser extent, coho salmon, which accounted for 87 and 11 % of production in 1995 respectively (FAO, 1997a). Growth in trade has followed the growth in salmon production, as the bulk of production is concentrated in a few countries with limited domestic markets — Norway, Chile and the UK. Norway is the main exporter of Atlantic salmon, and Chile is the main exporter of coho salmon and second largest exporter of Atlantic salmon. The EU is the main market for Norway (70% of exports) and Japan and the US are the main markets of Chile (60% and 30% of exports respectively). Norway has targeted Asia as the future growth market in addition to further penetration of the European markets, and more than US$ 7.25 million was spent in 1996 on promoting salmon and trout. Chilean producers foresee strong growth in the USA and Latin American markets and more emphasis in the industry on fillets and value-added products (FAO, 1996; Lem and Di Marzio, 1996).

With increased production volumes, costs and prices have been driven down, and at current levels (US$ 3.50-4/kg CIF) salmon has become a relatively medium priced product in international seafood markets (Figure 1).

Source: Seafood Export Council (EFF), Norway

Figure 1: Norwegian salmon production and export prices

Source: Wholesale prices, fish market, Milan, Italy

Figure 2: Sea bream production and price development

and Thailand) and the USA and Japan. There is also modest trade between Jamaica and the UK. The biggest exporter, Taiwan PC, supplies Japan with high quality tilapia fillets for the sashimi market and ships frozen tilapia to the American market, with total exports of 16,000 mt in 1996. Taiwan PC exports about 35% of its domestic tilapia production and supplies 79% of the US tilapia imports (1996) (Table 2). Thailand and Indonesia export less than 5 % of their production (Dey & Eknath, 1997). Vietnam has also recently entered the world tilapia market and China exported the fresh weight equivalent of 122 mt to the USA in 1996.

Tilapia is now the third most imported aquaculture product by weight in the USA (1996 imports of 19,000 mt), after shrimp and salmon. USA imports were up 21% by quantity in 1996, following an increase of 33% in 1995, and are forecast to increase further in 1997. Long term tilapia prices are expected to decrease and this should lead to greater exports to the USA as well as to Europe which presently is undeveloped as a market for tilapia.

In Europe, the seabream/seabass industry intends to copy the success of salmon growers. Production reached about 60,000 mt in 1996 of which nearly 90 % was exported, mainly to Italy and Spain (FAO, 1997a). The main exporter was Greece, with about 70 % of domestic production exported. Italy has been almost the exclusive market for Greek production. However, as a result of market development efforts, about 15% of Greek exports in 1995 went to new markets (UK, Germany, France, etc.) and the share of new markets is expected to grow (Stephanis, 1996). At the opposite end, trade in fingerlings was from Italy, Spain and France to farms in Greece, Malta and Croatia.

International trade in trout is much less that in salmon, with exports reaching 55,000 mt in 1995 out of a total production of 384,000 mt. Consumption is concentrated in trout producing countries, but Norway and Chile have been able to farm particular qualities of large-sized heavy pigmented trout for the Japanese market (Japanese 1996

trout imports: 36,500 mt).

Tilapia is another species which has shown a tremendous growth in output (production of 660,000 mt in 1995). International trade is limited but growing, especially between Central America (Costa Rica, Ecuador and Colombia) and the USA, and between Asian producers (Taiwan PC, Indonesia

As output of seabass/seabream has grown, costs have been driven down, and market prices have almost been halved during 1990-1997, from US$ 16/kg to around US$ 8/kg. The rapid saturation of the market and the parallel rapid decline in prices (50 % in five years, compared to 50 % in ten years in the case of Atlantic salmon) is attributed

Table 1. Contribution of aquaculture to national shrimp production (1995)

Source: FAO, 1997b,c

international trade. China, the major producer, has started exporting seaweed as food to Korea Rep. and Japan. Korea Rep. in turn exports some quantities of Porphyra (red seaweed) and Undaria (brown seaweed) to Japan (total Korea Rep. 1996 exports: 21,000 mt). Significant quantities of Eucheuma (red seaweed), are exported by the Philippines, Tanzania and Indonesia (total Indo-nesian 1995 exports: 18,000 mt) to the USA, Denmark and Japan. Total EU imports of seaweed in 1995 amounted to 58,000 mt with the Philippines, Chile and Indonesia as the biggest suppliers.

Molluscs. International trade in molluscs is relatively limited compared to total output with less than 10 % of total output traded. Major importing markets are Japan, USA and France, and major exporters are China and Korea Rep.The contribution of farmed products to trade is uncertain.

Farmed mollusc production volumes are fairly evenly split between oysters, clams, mussels and scallops, but in international mollusc trade 70% of value is concentrated in scallops and clams (fresh and frozen). Total fresh and frozen scallop imports have grown  from

Table 2. U.S. tilapia imports by
country in 1996 (quantities = fresh weight equivalent)

Source: USDA, 1997

American catfish is now the fifth most consumed fish in the USA (0.36 kg/capita edible weight in 1995). Exports are limited as the production is aimed at the domestic market, but producers have recently started exporting to Europe. The reason for the success of catfish is similar to that of tilapia: consumer demand for white, easy-to-prepare fillets.

28,000 mt in 1985 to 60,000 mt in 1995, reaching US$ 493 million. Clam imports have grown from 33,000 mt to 178,000 mt in the same period, valued at US$ 295 million. Mussel imports wereshowing a downward trend after a peak of 175.000 mt in 1992 but have now levelled out at 130.000 mt or US$ 188 million.Oyster imports have been growing steadily from below 10,000 mt in 1985 to 30,000 mt in 1994 and seem now to have stabilized at this level (1995: 27,000 mt, US$ 140 million.).

Live Seafood. Asia is rapidly increasing its consumption of live seafood as a result of cultural preferences and growing

to the much smaller traditional market for these species (Southern Europe), compared to Atlantic salmon, lack of diversified products, inadequate market development, and absence of technological advances (e.g. genetic improvement; efficient feeds and feeding strategies, etc.) which could significantly improve productivity. The substancial drop in price of these species should help open new markets and expand existing ones, provided acceptable profit margins can be sustained at the production end through improvements in productivity and diversification of products

American catfish is now the fifth most consumed fish in the USA (0.36 kg/capita edible weight in 1995). Exports are limited as the production is aimed at the domestic market, but producers have recently started exporting to Europe. The reason for the success of catfish is similar to that of tilapia: consumer demand for white, easy-to-prepare fillets.

Seaweed. Farmed seaweed production has been growing in the last decade (6.1 mmt in 1995) and is now 86 % of total seaweed supplies. Most of output is utilized domestically for food, but there is growing

Seaweed. Farmed seaweed production has been growing in the last decade (6.1 mmt in 1995) and is now 86 % of total seaweed supplies. Most of output is utilized domestically for food, but there is growing interna-tional trade. China, the major producer, has started exporting seaweed as food to Korea Rep. and Japan. Korea Rep. in turn exports some quantities of Porphyra (red seaweed) and Undaria (brown seaweed) to Japan (total Korea Rep. 1996 exports: 21,000 mt). Significant quantities of Eucheuma (red seaweed), are exported by the Philippines, Tanzania and Indonesia (total Indo-nesian 1995 exports: 18,000 mt) to the USA, Denmark and Japan. Total EU imports of seaweed in 1995 amounted to 58,000 mt with the Philippines, Chile and Indonesia as the biggest suppliers. (total Indonesian 1995 exports: 18,000 mt) to the USA, Denmark and Japan. Total EU imports of seaweed in 1995 amounted to 58,000 mt with the Philippines, Chile and Indonesia as the biggest suppliers.

(total Indonesian 1995 exports: 18,000 mt) to the USA, Denmark and Japan. Total EU imports of seaweed in 1995 amounted to 58,000 mt with the Philippines, Chile and Indonesia as the biggest suppliers.

affluence. The live seafood market is largely restricted to the restaurant trade and to consumers with a relatively high disposable income. Major market expansion is anticipated due to good demand in China, but expansion is also expected in Malaysia, Singapore and Taiwan PC, as well as in parts of North America with large Chinese communities. The potential for aquaculture to supply the market is promising. The sector is already supplying large amounts of shellfish and limited quantities of grouper, crabs and other species. Technological developments in the culture of preferred livefood species will increase the contribution of aquaculture to supplies (Riepen, 1997).

Seed supplies. There appears to be significant regional and international trade in seed of cultured aquatic organisms, mainly from aquaculture sources, but this is poorly documented at present in most instances. Mention has been made above of regional trade in Mediterranean seabass and seabream, but there is also trade in glass eels (eg. recent large purchases of European eel elvers by China), post-larvae of various

cultured shrimps, Indian and Chinese carps, and others. There is also limited trade (in terms of quantity) in broodstock. Documentation of trade in seed will improve gradually as in response to concerns about spread of diseases and the movement of genetic material.

Issues Affecting Future Trade in Aquaculture Products

Average tariffs on imports from developing countries are now estimated at 4.8 %, a cut of 27 % from previous levels (FAO,1995). The long term trend, with growing membership in the World Trade Organization will lead to further reductions in tariffs.

Food security. As the major part of total output from aquaculture is consumed internally by producing

nations, aquaculture is an important source of seafood. Aquaculture has also become a significant source of foreign currency to many developing nations as the products exported usually are the more valuable ones and destined for markets in the developed world. These revenues allow the countries to import other less costly protein, and as such, aquaculture can be considered important to food security even when the output is exported.

Externalities. Environmental and social concerns have already influenced farmed shrimp exports to North America and Europe in 1997. The importance of sustainable aquaculture with no or limited externalities will force many exporting countries to adopt more sustainable production practices. The introduction of eco-labeling schemes will further increase this trend.

Quality. With growing concern about food safety, increasing efforts have been undertaken to improve the quality of aquaculture products. International codex standards cover aquaculture products, and the introduction of mandatory HACCP requirements for exports to the USA and the European Union in 1997 will heavily impact trade in aquaculture products in the near future. Some countries have developed comprehensive HACCP plans for selected aquaculture products; for example, the USA has now plans for catfish, crawfish and molluscan shellfish. In other countries, individual aquaculture producers undertake voluntary certification (ISO 9000) for control as well as marketing purposes.

Tariffs. Despite steady reductions in tariffs on fish and aquaculture products in recent years, tariffs as well as import licenses continue to represent barriers to trade in many countries. This is especially the case in many fast growing economies in Asia, but important markets such as Japan, the European Union as well as the USA all give competitive advantages to domestic producers of many species, especially in the case of processed products.

USDA. 1997. Aquaculture Outlook, March 4, 1997.