Add textIMPACT OF COVID-19

ON THE SEAFOOD MARKET IN ASIA - A NEW WAVE

Shirlene Maria AnthonysamyDirector

WORLD TRADE TRENDS

Source: WTO Secretariat

• World trade is expected to fall by between 13% and 32% in 2020 as the COVID-19 pandemic disrupts normal economic activity and life around the world.

• Decline will likely exceed the trade slump brought on by the global financial crisis of 2008-09

• Estimates of the expected recovery in 2021 are equally uncertain, with outcomes depending largely on the duration of the outbreak and the effectiveness of the policy responses.

• Disruption of China seafood trade(Jan–Mar)• Closing down of restaurants and food service sector.• Cancellation of International flights to and from China• Exporters to China were concerned (mud crabs, salmon, lobster,

shrimp, and fish from Russia, Canada, Ecuador, Chile, Australia, New Zealand, India & Vietnam)

• China started to recovered slowly however the rest of the countries were affected

• Devastating loss in the seafood industry • Increase in unemployment• Production has been affected (social distancing & stay home)• Relaxation of trade regulation

WHAT HAPPENED IN ASIA?

• Disruption in distribution channels/supply chain/seafood value chain disruptions

• Lower overall seafood production• Seafood demand and supply imbalance• No access to retail markets/wet

markets/supermarkets etc• Lower restaurant traffic, increase retail

sales (supermarkets and e-commerce deliveries)

• Low demand for luxurious seafood products

• Seafood price declines

Production and supply

CONSUMERS• Demand for seafood remained strong

• Choice of the seafood formats - fresh, frozen, canned- shift in consumer preference/ready to eat, ready to cook meals

• Suspension/Disruption of exports/imports

• Strong domestic markets

• Seafood supply chain is disturbed Transport restrictions affects supply chain Shortage of labour

• Consumers spending to direct channels for seafood dropped due to movement restrictions

• Rise in E-Commerce sales

- increase in usage of online platforms for seafood buying (fresh and frozen products

- increase in wholesalers/processors are selling directly to consumers (traditional customers are drying up))

TRADE AND MARKETS

• New markets sought/Supply diversification• Exports of processed, ready-to-serve and canned seafood -

highly demand in the retail level • Relaxation on the regulations• New ways of reaching consumers

INTERNATIONAL TRADE% Change in Export of Fish and

Fishery Products during January-May 2020 (COVID-19) against 2019

*: excluding ornamental fish Source: TDM

Market share increased from other producers exporters as exports dropped from major

exporters

%Δ 2020/19

Volume ValueChina -18.83 -17.54Norway 2.05 -5.58

United States 6.28 -8,41Russia -5.15 -2.66Malaysia 642.07 -2.77Chile 16.02 -7.25Thailand 10.69 -2.8Spain -0.7 -11.68Ecuador 8.28 5.98Indonesia 23.35 -2.66Peru -55.57 -52.87Myanmar 16.07 11.73

% Change in Imports of Fish and Fishery Products during January-May 2020 (COVID-

19) against 2019

*: excluding ornamental fishSource: TDM

%Δ 2020/19

Volume ValueChina -1.24 -10.65

United States 3.79 -0.2Thailand -7.07 -10.65Japan -6.36 -14.23Spain -2.9 -10.54

South Korea -9.54 -10.79France -9.84 -13.19Indonesia 15.97 -0.34Russia -3.86 0.12Norway 7.54 -4.0

Philippines -33.62 -24.33Malaysia 7.62 -3.47

• People went into lockdown, quarantine work from home, people still wanted to eat and they still want to eat good food

• Technology to tackle pandemic-related disruption food supply chain

• Increase in door to door sale of fresh and frozen fish to reduce congestion in the markets

• Supplies were getting to consumers through all kinds of means using technology

• Grab food, Shopee, Lazada, Tmall, Ali baba etc

• Increase in wholesalers/processors are selling directly to consumers

• Orders through the fishermen co-operations/associations collaborated with mobile apps developers and have their fish delivered right to their doorsteps.

TECHNOLOGY FACILITATED

• Overall consumption declined because of the almost total shut down of restaurant and catering trade worldwide

• However, demand for seafood remains robust• Significant increases in retail grocery sales and takeout delivery• Raw material shortages in the producing countries, social distancing rules and

other control measures continue to hamper processing and shipments of the existing import orders

• Era of online seafood trading• Demand for retail/consumer packs for frozen products, norm in the near future• Increase organic seafood sales, sustainability • It is forecast that a global recession, imminent,

rising unemployment, lower disposable income, demand for some products in 2020 expected to weaken significantly both in developed and developing markets.

OUTLOOK

Take away message

“Covid-19 is a catalyst of digital transformation in Southeast Asia,” Lazada Group CEO Pierre Poignant said. “When consumers build a habit, it doesn’t easily go away.

E-commerce will become a way of life.”

BID