Table 8A. Malaysia: Imports of dried beche-de-mer, 1997 - June 2003 (Q=tonnes; V=RM).

Source: MATRADE, Ministry of Trade and Industry, Malaysia

Malaysia

The Malaysian population is multi-racial with the Chinese as the second largest group. As of 1994 about 35 % (6.65 million) of the 19 million Malaysians were ethnic Chinese. The country's population has increased since then to 23 million in 2003, but the ratio has declined as the average family size of the people of Chinese origin has reduced. Hence the market for sea cucumber in Malaysia has shrunk. The other races, namely Malays and Indians, do not have a liking for sea cucumber.

Consumption of sea cucumber among the ethnic Chinese in Malaysia is not as high as Singapore or China Hong Kong SAR. The market imports a small volume of fresh/chilled and frozen sea cucumber from neighbouring Indonesia, but dried products are the predominant type. Nearly half of the imported sea cucumber is re-exported to other markets. Imports in 2002 were low at 160 tonnes compared to over 500 tonnes in 1998 (Table 8A). The major share of supplies came from Indonesia followed by China Hong Kong SAR and China PR. Dried sea cucumbers were re-exported from Malaysia to China Hong Kong SAR, Taiwan PC, Singapore and Thailand (Table 8B).

Table 8B. Malaysia: Imports ofbeche-de-mer (live/fresh/chilled/frozen), 1997 - June 2003 (Q=tonnes; V=RM).

Source: MATRADE, Ministry of Trade and Industry, Malaysia.

Table 8C. Malaysia: Exports ofbeche-de-mer (live/fresh^/chilled/frozen), 1997 -Jan-June 2003 (Q=tonnes; V=RM).

Source: MATRADE, Ministry of Trade and Industry, Malaysia.

Table 8D. Malaysia: Exports of dried beche-de-mer, 1997 -Jan-June 2003 (Q=tonnes; V=RM).

Source: MATRADE, Ministry of Trade and Industry, Malaysia.

Local consumption is related to the festive season and occasions (weddings, birthdays, etc.) due to the price factor. Households buy processed/soaked products particularly during the Chinese New Year for the family dinner. These are sold at traditional wet markets, some supermarkets and also at Chinese wholesale shops which sell other dried fishery products and Chinese herbs.

In Malaysia the import and domestic markets are dominated by Chinese traders.

Other Markets

Sea cucumber is relatively less popular in Japan, Korea Rep. and other Southeast Asian countries. In Japan, sea cucumber is not a preferred species. Thus the annual import is limited to 3-4 tonnes of frozen and dried products.

Korea Rep. imports 15-20 tonnes of dried sea cucumber annually and the preferred species are curryfish imported from Singapore, China Hong Kong SAR and Taiwan PC. However, the market demands premium quality products.

In Thailand, preference for sea cucumber again is limited to the tourism industry. The Thai people seldom like this species.

In the western markets, namely the USA, Canada, the United Kingdom, France, Belgium, etc., sea cucumber is imported for the ethnic Chinese population living in these countries. However, it is popular or used mostly by the elderly and middle aged people. Sea cucumber does not have much appeal to the younger Chinese generation living in these countries. Thus consumption in general is declining.

Product preference and price trends

In terms of market preference and commercial value, sea cucumber species are classified into four categories:

• High value: Sandfish, white teatfish, black teatfish, prickly red teatfish (coldwater).

• Medium value: Stonefish, Surf redfish (good quality), greenfish (good quality), curryfish.

• Lower medium value: Deep water redfish, surf redfish, blackfish, greenfish.

• Low value: Brown sandfish, lollyfish, pinkfish, elephant trunkfish, amberfish, tigerfish.

Due to the large market size and varied purchasing power, China PR imports a wide variety of sea cucumber. However, the mainland Chinese market is increasingly demanding good quality products irrespective of the species and consumers are willing to pay better prices for quality products.

Consumers in China Hong Kong SAR have preference for good quality sea cucumber as for those in the southern provinces of mainland. China Hong Kong SAR imports all sizes and species, but the local market generally takes large and medium sizes products. The remaining is re-exported, mostly to China PR. High value best quality species are sold through retail specialty shops in consumer packs. During the Chinese New Year, expensive gift packs of sea cucumber are exchanged by the rich class and large Chinese companies.

For the Taiwanese, the coldwater species are the most preferred, as market preference is more for large size spiky sea cucumber. Taiwanese consumers are extremely quality conscious, hence the market demands high quality products.

Singaporeans' preference for sea cucumber is slightly different to those in other Chinese markets. Good quality smoked, cleaned, dried sandfish is the preferred species; retailers are the main outlets for this product and households are the main user of this product type. Consumers in Singapore do not like calcium coated sea cucumber. Reprocessed wet products are sold to local markets in insulated boxes using medium quality and low quality products.

The Malaysian market imports medium quality and medium size sandfish and teatfish for local Chinese consumers. Relatively good quality processed products are available in Chinese specialty shops; local supermarkets sell smaller size wet (processed) products, whereas the traditional wet market sells low grade products.

Price trends

Prices of dried sea cucumber in the international (Table 11) as well as domestic markets vary according to the species (high, medium and low value), sizes and quality of the species. While sandfish fetches the highest prices, the lowest are offered for lollyfish.

Over the decade the ranking of the species has also changed. Some medium value species have moved to the category of high value species as supplies of sandfish, the traditional high value species, are getting scarce due to low supplies.

Table 11. Prices of sea cucumber in the international market, October 2003.

Source: INFOFISH Trade News, 1 October 2003.

In the China Hong Kong SAR market (Table 12), the average import prices of Australian origin sea cucumber have been the highest in recent years due to the species and quality factor. A similar trend is also observed for the sea cucumber originating from Pacific countries.

The China Hong Kong SAR market also controls international market prices of sea cucumber. However, quality is the main factor that determines prices of sea cucumber in general.

Outside China PR the difference between the import and retail prices varies widely for all categories of sea cucumber. For example, in the Malaysian market the retail price of quality dried sandfish is around US$ 110/kg. The retail price of processed frozen wet sea cucumber is US$ 23-24/kg.

A similar trend is also noticed in the other markets in Asia.

Table 12. Hong Kong: Average import prices of sea cucumber, 2001 -January/June 2003 (US$/kg).

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

Conclusion

• In the international trade for seafood, sea cucumber is regarded as a specialty product. While supplies of these species are coming from many parts of the world, the market is dominated by China PR and China Hong Kong SAR on the trading side.

• Global supplies of sea cucumber have declined over the years mostly due to the over exploitation of resources in many countries. On the other hand, the opening of the largest market, China PR, has contributed to an increasing demand for these species. New supplies are showing up from Africa and the Middle East, but the quality and quantity of these supplies are not able to match the demand which is steadily growing in China PR.

• Consumers in China PR nowadays demand an increasing volume of quality products. However, currently the availability of a wide variety of seafood on the Chinese market has taken away the focus on sea cucumber. Therefore, sea cucumber is not in the list of top choices for seafood. Nonetheless, demand for these species has increased in medium and lower income groups in the recent years. Cheaper restaurants in China PR nowadays prepare sea cucumber based dishes. These dishes used to be reserved for the expert chefs in high priced restaurants.

• Demand for sea cucumber in other traditional Asian markets is shrinking as the average Chinese family size is becoming smaller. Being an expensive product, consumption of sea cucumber is linked with the socio-economic situation and consumer's disposable income.

• Consumption of sea cucumber in western countries, where the niche markets exist, is also showing a declining trend as the younger generation has less interest in this seafood product.

• In the international trading for sea cucumber, China Hong Kong SAR will continue to play an important role. Most of the low volume exporters find it difficult to sell these products directly to China PR as consignments are usually small.

• Moreover, if the proposed free trade arrangement between China Hong Kong SAR and the mainland takes place, more seafood including sea cucumber will be imported into China PR through China Hong Kong SAR.

• Strong ethnic linkage in Asia will continue to support the intra-regional trade for sea cucumber in the coming years. Free flow of trade between the ASEAN nations will allow more trading between Indonesia (a producing country), Singapore, Malaysia, Thailand and Myanmar, irrespective of the market size.

• Product quality is the factor that needs urgent attention in sea cucumber producing countries. A major share of sea cucumber exports from many developing producing countries consist of low quality, under sized products. As a result, the products fail to fetch higher prices in the international market. On the other hand, resources are becoming depleted which also affects the livelihood of fishermen in producing countries.

• Improved post harvest handling and processing and creation of awareness on market requirements for good quality sea cucumber will alleviate the problem of resource depletion to a great extent. It will also increase fishermen's income generated from these species.

References

FAO. 1990. The fishery resources of Pacific island countries, Part 2: Holothurians, by C. Conand. FAO Fisheries Technical Paper No. 272.2. Rome. 143pp.

INFOFISH. 2003. INFOFISH Trade News, 1 October 2003.

FAO. 2003. Commodities trade and production, 1976-2001. Available in: Fishstat Plus (Universal software for fishery statistical time series) ver. 2.30. http://www.fao.org/fi/statist/fisoft/fishplus.asp and CD-ROM of April 2003. FAO Fishery Information Data and Statistics Unit. Rome.

Ferdouse, F. 1996. Improved Utilization and Marketing of Marine Resources from the pacific: Study Number 1: Beche-de-mer and Sharkfins and Other Cured Marine products Purchased By Chinese/Asian Traders. SPC Beche-de-mer Information Bulletin, 113-9.