New Zealand's Seafood and Meat Exports to be Hit by SARS Crisis

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Last updated at: (Beijing Time) Wednesday, April 23, 2003

New Zealand's Seafood and Meat Exports to be Hit by SARS Crisis

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New Zealand's live lobster trade with southern China is dead and the wider fishing industry and meat export are preparing for the worst as the fallout from the SARS crisis worsens, according to exporters.

China's mainland and Hong Kong have been main markets for New Zealand's fisheries and meat exports. Around 300 million NZ dollars (about 165 million US dollars) of seafood was exported to southern China, including Hong Kong, annually, putting it on par with the United States.

New Zealand Seafood Industry Council spokesman Simon Thomas said that the industry was watching with bated breath as the lucrative Asian market continued to be hit by the spreading severeacute respiratory syndrome (SARS) problem.

The 130 million NZ dollars (about 71 million US dollars) annualexport trade in live lobster had already been ruined, and Thomas said there was a real fear other seafood exports would be hit.

"We've been keeping a watching brief and, as southern China is one of our key markets, we're obviously very concerned about the impact of SARS on all our exports, not just rock lobster."

He said shellfish such as paua and mussels earned 36.6 million NZ dollars in export receipts from Hong Kong last year, while the fin fish ling earned another 28.6 million NZ dollars.

"The export of these species and other high value ones like eel,squid prawns and shrimps will definitely be under threat if the SARS crisis continues as the people who buy them in Hong Kong and China are simply not going out.

"It's not like noodles -- you can't stock up on fresh fish, andif there is fear of going out, the demand for fish will drop. It'sthat simple," Thomas said.

Wellington exporter Salve Vinaccio of Cook Strait Seafoods feared that the SARS crisis could be "far worse" than the 1997 financial meltdown in Asia.

He agreed that Hong Kong and Chinese mainland demand was declining, but said the problem could be countered by finding other markets.

"It isn't so bad with the wet fish species at the moment as there are other markets in Europe and the United States exporters can turn to when demand in one market drops," Vinaccio said.

But he added that the once "extremely profitable" rock lobster industry was no more.

"The demand out of Hong Kong and China has basically gone. There is no market, if there was you'd be seeing two or three shipments going but there isn't any. Everything has shut down."

Despite losing the lucrative Hong Kong market, Vinaccio said rock lobster would still be caught.

"People won't leave their quota in the water and many will haveto fish and take a bath by selling it on the local market and thenmove on," he said.

Rock lobster has been sold in Wellington recently for 49.95 NZ dollars a kilogram, down from 56 NZ dollars.

Meanwhile, Meat Industry Association Chief Executive Brian Lynch told The Dominion Post Tuesday that it was "only a matter oftime" before the drop in Chinese consumption would hurt New Zealand meat exports to Hong Kong and China's mainland.

"Beef exports to Hong Kong have already fallen and, with the continuing slump in tourism and people going out, I believe SARS will be a huge challenge to the industry," Lynch said.

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