Table 4. China: Imports of sea cucumber, frozen/dried/salted/in brine, 1999-2001 (Q=tonnes; V=US$'000).

Source: Bureau of Fisheries, China PR.

China Hong Kong SAR

This Special Administrative Region of China is regarded as the largest importer of sea cucumber in the international market. The market is dominated by imports of dried tropical sea cucumber of all varieties. However, a small quantity of air-freight chilled, skinless sea cucumbers are also imported from New Zealand for specialty restaurants in China Hong Kong SAR and the southern provinces of China PR. The cold water species are imported from the USA and Canada in gutted frozen form for the up markets in the mainland.

Imports of sea cucumbers declined by almost 50 % in 2000 compared to the mid 1990s. The import market has stabilized at a volume of about 4 000 tonnes per annum during the last 6 years. However, supplies declined in 1998 and 1999 due to the economic recession that engulfed Southeast Asia and the Far East in the late 1990s.

In 2002, imports recovered to 4 417 tonnes at a value of HK$ 440 million (US$ 56 million) (Table 5A).

The main suppliers were Indonesia, the Philippines, Singapore, PNG, the Solomon Islands, Madagascar and Australia. For the last few years, supplies have been dwindling from regular sources except from Indonesia. New supplies from Africa and the Middle East have entered the market. However, the quantity is not sufficient to offset the lower exports from the other sources.

A survey indicated that the domestic market in China Hong Kong SAR absorbs about 500-700 tonnes of dried sea cucumber annually. While the population growth in the territory has remained static over the years, there have not been many changes in local consumption patterns. In general, sea cucumber is perceived as an expensive product. Day to day consumption is limited to the middle-aged group, festival celebration (Chinese New Year), wedding dinners, banquets, etc. Hence, demand fluctuates according to the age group and most of all by disposable income. The market preference is similar to the mainland. Consumers in China Hong Kong SAR prefer large and medium sized dried skin-on calcium coated sandfish and teatfish, which are the high value species.

However, for China Hong Kong SAR traders the main attraction is the expanding mainland market. In 2002, China Hong Kong SAR re-exported nearly 3 000 tonnes of sea cucumber, which was 67 % of the total imports in that year.

Table 5A. China Hong Kong SAR: Imports of beche-de-mer (dried, salted or in brine), 1997 -June 2003 (Q=tonnes; V=HK$ '000).

Source: Agriculture, Fisheries and Conservation Dept., China Hong Kong SAR.

China was the largest outlet (72 %); all types of sea cucumber are exported to the China PR market mainly by road and also by sea depending on the destination. The other markets are Taiwan PC, the USA and some other niche markets (Table 5B).

Table 5B. Hong Kong: Re-export of beche-de-mer (dried/salted/in brine), 1997 -June 2003 (Q=tonnes; V=HK$'000).

Source: Agriculture, Fisheries and Conservation Dept., China Hong Kong SAR.

As direct imports to China PR are subject to high import duty and rather complicated procedures, exporters from other countries prefer to supply to China Hong Kong SAR traders. The territory still retains the status of a duty free port for imported products.

Taiwan PC

Demand for high value fish and fishery products is relatively high in Taiwan PC. This is related to high per capita income and the traditional influence of the Fijian and Teochew provinces - the origins of the Taiwanese. Household consumption of processed sea cucumber is high in Taiwan PC although the species are not popular with highlanders.

Traditionally the Taiwanese market has a preference for various kinds of spiky sea cucumber which are both tropical and coldwater species. The coldwater prickly redfish are imported from Alaska (USA) and Canada in frozen form. Taiwan PC also imports frozen sea cucumber from Peru which are processed into dried products for the domestic market. Demand for high value sandfish is rather limited, but is increasing slowly through supplies from China Hong Kong SAR.

Consumption of sea cucumber was low during the economic recession in 1998-2000. However, imports have recovered since 2001 and totalled 1015 tonnes in 2002 against 624 tonnes in 2001. Nearly 28 % of these were frozen products imported from coldwater sources (Table 6). Imports of tropical species are from India, Indonesia, the Philippines and from mainland China PR.

Table 6. Taiwan: Imports ofbeche-de-mer, 1997-2002 (Q=tonnes; V=NT$'000).

Source: Fisheries Statistical Year Book, Taiwan PC.

Import duty on sea cucumber is high in Taiwan PC. The tariffs also differ according to the species, ranging from 20-40 % on the invoice value. The spiky varieties enjoy lower tariffs compared to the other species. Import duty on frozen products is also lower than that of dried/salted products.

Unlike China Hong Kong SAR, the market in Taiwan PC is dominated by a few importers. The market also demands high quality products.

Singapore

In this trading nation where production of sea cucumber is nil, it is a preferred seafood delicacy of the highest order, a positioned shared with dried shark fins. However, sea cucumber is an expensive seafood thus follows the demand pattern dictated by the consumer's disposable income.

A large share of imports is re-exported to other destinations from Singapore. Imports fluctuated from 820 tonnes in 1997 to 629 tonnes in 2000 due to the economic recession in the region. China Hong Kong SAR was the main

supplier. The other exporters to this market were India, Yemen, the USA and South Pacific island countries. During the late 1990s, imports increased from Madagascar and Tanzania consisting of cheaper quality sandfish and some white teatfish. The best quality products come from Australia and the other Pacific sources. Imports also take place from Indonesia, but these are not reflected in the official statistics (Tables 7A and 7B).

Table 7A. Singapore: Imports ofbeche-de-mer (dried/salted/in brine), 1997-2000 (Q=tonnes; V=S$'000).

Source: National Statistics, Singapore.

Table 7B. Singapore: Exports ofbeche-de-mer (dried/salted/in brine), 1997-2000 (Q=tonnes; V=S$'000).

Source: National Statistics, Singapore.

Although the market demands high value products, the small population in Singapore (2.3 million) is not able to support the total import. Thus the lion's share gets re-exported to China Hong Kong SAR, Malaysia, Taiwan PC and Thailand. The ASEAN Free Trade Agreement also allows re-exports to the ASEAN member countries (Malaysia, Thailand, Myanmar). While exports to Malaysia consist of medium grade sandfish of different sizes and a small quantity of teatfish, high quality products are exported to Taiwan PC.

Domestic consumption of sea cucumber in Singapore has been low during the last few years. The economic recession since 1998 coupled with the SARS (Severe Acute Respiratory Syndrome) problem in 2002-2003 have affected the domestic consumption of seafood in general.