B.C.’s marine bounty attracts Asian buyers

British Columbia has set a new record for exports of farm-raised salmon in 2015, and is on track to scale new heights in 2016 as well.
The most encouraging numbers in the final data released by Statistics Canada are those that show an emerging appetite for farm-raised salmon in China, with exports from British Columbia more than doubling over the previous high in 2012.
China is now B.C.’s second most important market next to the United States, which has historically been the sector’s primary export market, and remains so today.
Trade with Asia overall is up 38% over the previous record in 2013 with B.C. exporting fresh farm-raised salmon for the first time to South Korea, a market that shows great potential as Canada and South Korea implement the Canada-Korea Free Trade Agreement.
Overall, B.C. exported a record 54.4M kilograms of farm-raised salmon to 11 countries, seven from Asia.
“Demand for salmon raised in B.C. has never been higher,” said Jeremy Dunn, Executive Director, BC Salmon Farmers Association.
“The United States remains our most important trading partner, and will be so for some time, however we are encouraged at the market diversification and the prospects for growing demand in the future – particularly in Asia.”
Meanwhile, industry publication SeafoodSource reported that Canadian farmed salmon price is expected to rise again in the second half of 2016 because of Chile’s massive toxic algae bloom and port protests that are halting exports.
Canadian farmed salmon prices doubled for some sizes from 1 January through Easter, partly driven by the Chilean algae bloom, Dave Mergle, managing director of Ocean Quality North America, the sales organization for Grieg Seafood and Bremnes Seashore, told SeafoodSource.
“We are starting to see the start of a big market move. I expect that won’t stop until 2017,” Mergle said. The higher overall farmed salmon prices could cause consumers to purchase other proteins. However, salmon is “still one of the lowest-priced proteins and will continue to be a big protein – even with prices being what they are – because it is such as staple,” Mergle said.
The global increase in farmed salmon prices is a “horrible situation for Chile and is bad for salmon aquaculture globally,” said Jeremy Dunn, executive director of the British Columbia Salmon Farmers Association.
“A short-term price increase is helpful in many businesses; but, long term, it is going to be an affordability challenge for many people who want to eat salmon on a regular basis and for people wanting to carry it in their restaurants and retail stores,” Dunn said.
As a result of the Chilean problems, demand for B.C. farmed salmon jumped in the first quarter of 2016 – but was also much higher in 2015, when production soared to 75,000 metric tons. 
The increased shipments to China resulted from increased marketing by salmon suppliers as well as an improving economy in the country.
“Both Marine Harvest and Cermaq in B.C. have put an increased focus on that marketplace. Cermaq being bought by Mitsubishi has opened up some avenues for that company in Asia,” Dunn said. 
“If we had more fish to sell, I believe that marketers would be selling more to China.”
Because of the improving economy in China, “You have people wanting to pay more for high quality proteins,” Mergle said. ”We are really keen on expanding our business to China as much as we can.”

By the numbers

$9.2 million - New record exports to China: 1,250mT (a value of $9.2M CAD) – An increase of volume of 140% from the previous high in 2012.

$404.9 million - New record exports to the United States: 52,150mT (a value of $404.9M CAD) – A 2% increase in volume from the previous record in 2012, but a 40% increase in export value from the previous high in 2012.

30% - B.C. accounts exported 2,839mT to Asia in 2015 with a total value of $20.5M CAD a 30% increase in trade value over the previous record in 2013.
63% - B.C. accounts for 63% of the Canadian export value to the U.S.

$431.6 million - B.C.’s total 2015 farm-raised salmon export value is $431.6M CAD

5,000 - Salmon farming has a total economic impact of $1.1-billion in British Columbia and accounts for more than 5,000 total jobs.

 19  - Salmon farmers are working closely with coastal First Nations with 19 economic impact benefit agreements in place counting for 78% of all salmon raised in B.C.