27-1-2024 (SINGAPORE) Southeast Asian countries are increasingly vying for a share of China’s lucrative lobster market, with analysts suggesting that the trend is set to intensify as long as Beijing’s ban on Australian rock lobsters persists.
China’s primary source of rock lobsters is now New Zealand, constituting almost 40 per cent of the total market share, followed by Mexico and the United States at 20 and 16 per cent respectively, according to the General Administration of Customs.
In response to Australia’s calls for an inquiry into the origins of the coronavirus, Beijing imposed a ban on lobster imports from Australia nearly three and a half years ago. Despite recent improvements in bilateral ties, the ban remains in effect, prompting ASEAN countries to capitalize on China’s continued demand for crustaceans.
Indonesia, Thailand, and Vietnam, three members of the Association of Southeast Asian Nations (ASEAN), have made significant efforts to capture a larger market share in China, particularly as the middle class in the region expands.
Customs data indicates that Indonesia ranked as the fifth-largest lobster exporter to China, with shipments valued at US$18.27 million in 2023, marking a nearly 44 per cent increase year-on-year.
Similarly, Thailand witnessed a remarkable surge in lobster shipments to China, rising from US$88,123 in 2019 to US$14.1 million in 2023, or a 2.2 per cent market share.
However, Vietnam experienced a sharp decline in lobster exports to China last year due to insufficient farming procedures and violations of animal protection laws.
While the United States has also increased its lobster exports to China, the ban on Australian lobsters has created a substantial void in the market, with China’s rock lobster imports declining from US$900 million before the ban to around US$600 million since 2021.
Efforts to resolve the trade dispute between China and Australia remain ongoing, with hopes that Australian lobsters will be reintroduced to the Chinese market in the future.
The Australia China Business Council has advocated for the resumption of the live lobster trade, emphasizing the exceptional quality and value that Australian products offer to Chinese consumers.
As China explores local cultivation of overseas lobster varieties, the dynamics of the lobster market continue to evolve, posing both challenges and opportunities for exporters across the region.
