Japan's Strategic Seafood Export Expansion: Filling the China Gap and Tapping New Global Markets
By Yuka Obayashi and Katya Golubkova
Japan's Innovative Seafood Export Strategy: How Tokyo is Navigating the Chinese Import Ban
TOKYO (Multibagger) - Japan is accelerating its promotional efforts to boost seafood exports to diverse global markets in Asia, the U.S., and Europe. This comes as a strategic move to mitigate the impact of China's year-long import ban, according to Norihiko Ishiguro, chairman of the Japan External Trade Organization (JETRO).
China, once the largest market for Japanese seafood, imposed a ban on Japanese-origin seafood citing concerns over radioactive contamination. This followed Tokyo Electric Power’s initiation of treated water releases from the Fukushima nuclear plant into the Pacific Ocean last August.
Impact on Japan's Seafood Exports
The first half of 2024 saw Japan's agricultural, forestry, and fishery exports decline for the first time since 2020, primarily due to a 43.8% plunge in exports to China. Scallops were the most affected, experiencing a 37% year-on-year drop.
"We have yet to fully offset the volume loss from China, but exports to the U.S., Canada, Thailand, and Vietnam are rising, significantly boosting momentum in alternative markets," Ishiguro stated.
Government-Backed Diversification Efforts
JETRO is spearheading efforts to diversify export destinations for scallops and other seafood products affected by China's import restrictions. These initiatives aim to establish new commercial channels in Asia, the U.S., and Europe.
"Our intensive promotional efforts have enabled us to redirect 20-30% of the scallop exports lost due to China's import ban," Ishiguro noted, ahead of the first anniversary of the Fukushima water release on August 24.
Japan exported aquatic products worth 87.1 billion yen ($592 million) to China in 2022, making it the largest market for Japanese exports. This figure plummeted to 61 billion yen in 2023 and further dropped to 3.5 billion yen in the first half of 2024.
Promotional Campaigns and New Market Penetration
With an additional 5 billion yen budget from the government, JETRO has supported 170 promotional events in the past year. These events have showcased scallops, yellowtail, and other fish varieties in over 70 cities, including Davos, Switzerland, and San Francisco, USA.
JETRO has also invited renowned chefs, influencers, and international buyers to tour Japanese fish markets and fisheries. Campaigns in Thailand have promoted Japanese seafood in diverse restaurants, including Thai, Italian, and Chinese establishments.
Furthermore, missions have been sent to Vietnam and Mexico to explore alternative processing sites for scallops, aiming to replace China's supply chain.
Emerging Markets and Global Opportunities
Growth is anticipated in emerging markets such as Eastern Europe and the Middle East. Notably, there are already 2,000 Japanese restaurants in Poland alone.
The weak yen and the surge in Japan tourism also contribute to the increasing demand for Japanese seafood. Ishiguro emphasized that there is no longer any reputational risk associated with Japanese seafood outside of China.
Breakdown and Analysis
What is this about?
- Japan is aggressively promoting its seafood exports to new markets globally to counteract the impact of China's import ban.
Why is this happening?
- China banned Japanese seafood imports due to concerns over radioactive contamination from the Fukushima nuclear plant.
How is Japan responding?
- JETRO is leading diversification efforts, promoting seafood in new markets, and organizing events to boost exports.
What are the key outcomes so far?
- Japan has managed to redirect 20-30% of its scallop exports to new markets. There is significant potential for further growth in various global regions.
How can this affect you?
- If you are an investor, this diversification strategy could stabilize and potentially increase the value of Japanese seafood companies. If you are a consumer, you might notice more Japanese seafood products available in your local markets.
In Simple Terms:
- Japan is finding new buyers for its seafood after China stopped buying it. They are actively promoting their fish in other countries, and it's working well. This could mean more Japanese seafood in your local stores and potential new investment opportunities in Japanese seafood companies.