EP 642 | AIRED 05/29/2023
China Update: EU Buyers Show Increased Interest, Chinese Plants Struggle with Orders, Processing Opportunities in China
May 29th, 2023 - Good momentum was carried out from the Barcelona Seafood Show with increased visits from EU buyers showing interest in purchasing, indicating a positive trend.
Chinese plants have started receiving orders, although insufficient to maintain full production, many plants are reluctantly processing to maintain their workforce.
Some plants have stored products in cold storage in China, while others have placed inventory in EU bonded warehouses.
It’s being said that some companies in the EU and North America have breached long-term contracts due to a slow market and plants have been compelled to accept demands for lower prices to avoid order cancellations.
There is talk that one plant has plans to build a new facility 500 kilometers inland from Qingdao as a part of cost saving initiatives.
Large U.S. companies are also said to be moving production back to China from Vietnam also as a part of cost saving initiatives.
Pollock raw material prices have remained steady with the majority available from March harvest, however finished goods have seen downward price pressure.
Haddock prices have decreased slightly as the start of summer fishing approaches.
The Swai market has performed well compared to other whitefish with significant orders placed by EU and US buyers.
China lifting all COVID-19 restrictions has increased sales of large fish to Chinese restaurants.
Squid raw material supply is limited, resulting in high prices. Buyers are awaiting raw materials for their orders, making squid a highly sought-after item.
There will be some tremendous processing opportunities out of China this year.
Our recommendation is to connect with your Tradex Foods rep to discuss Asia Production Programs.
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