(Photo : NHK)
Japan PM Kishida
- The ban led to a 43.8% plunge in exports to China, affecting scallops the most.
- Japan is boosting seafood exports to Asia, the U.S., and Europe due to a Chinese import ban.
- JETRO is establishing new commercial channels, redirecting 20-30% of lost scallop exports.
Despite challenges, Japan sees potential growth in emerging markets and is optimistic about its seafood industry's future.Japan is intensifying its efforts to boost seafood exports to more destinations in Asia, the U.S., and Europe, in a bid to fill the sales gap left by a year-long Chinese import ban.
The Chinese market, previously the largest for Japanese seafood exports, imposed a ban on purchases of Japanese-origin seafood citing the risk of radioactive contamination. This followed the release of treated water from the damaged Fukushima nuclear power plant into the Pacific Ocean by Tokyo Electric Power in August 2023.
The ban has had a significant impact on Japan's seafood exports. In the first half of 2024, the country's exports of agricultural, forestry, and fishery products fell for the first time since 2020, with exports to China plunging by 43.8%. Scallops were the most affected, with a year-on-year drop of 37%.
Despite these challenges, Norihiko Ishiguro, the chairman of the Japan External Trade Organization (JETRO), remains optimistic about the potential for growth in Japanese seafood exports. We haven't yet fully compensated for the loss from China in volume, but exports to the U.S., Canada, Thailand, and Vietnam are increasing, significantly boosting momentum in alternative markets, he said.
JETRO's Efforts and Government SupportTo further diversify export destinations for scallops and other products impacted by China's curb, JETRO, a government-backed trade body, is establishing 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 revealed.
The Japanese government has also shown its support for JETRO's efforts, providing an additional 5 billion yen budget. With these funds, JETRO has supported 170 events in the past year to promote scallops, yellowtail, and other fishes in more than 70 cities in Japan and abroad, including Davos, Switzerland, and San Francisco.
In addition to these promotional events, JETRO has invited renowned chefs, influencers, and buyers from abroad to tour fish markets and fisheries in Japan. Campaigns in Thailand have promoted Japanese seafood in non-Japanese restaurants like Thai, Italian, and Chinese. Missions have also been sent to Vietnam and Mexico to explore alternative processing sites for scallops, aiming to replace China's supply chain.
Potential Growth in Emerging MarketsIshiguro also noted the potential for growth in emerging markets like Eastern Europe and the Middle East, pointing out that there are 2,000 Japanese restaurants in Poland alone. The weak yen and the boom in Japan tourism are also contributing factors, he said, adding there is no longer any reputational risk linked with Japanese seafood outside of China.
The situation Japan is currently facing is reminiscent of the 1986 Chernobyl disaster, where a nuclear accident in the former Soviet Union led to widespread contamination and a subsequent ban on food exports from the region. Similar to Japan's current strategy, the Soviet Union had to seek alternative markets and reassure the international community about the safety of its exports.
In conclusion, despite the challenges posed by the Chinese import ban and other factors such as the COVID-19 pandemic and a decrease in domestic demand, Japan is making concerted efforts to boost its seafood exports. Through the diversification of export destinations, promotional events, and the establishment of new commercial channels, the country is gradually filling the sales gap left by the Chinese ban.
With the support of the government and the potential for growth in emerging markets, the future of Japanese seafood exports looks promising. The country's resilience and strategic approach to this challenge serve as a testament to its commitment to maintaining a robust seafood industry.
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