International Trade Is a Key Component Of The Australian Seafood Industry

 Australia exports about half of its annual fisheries and aquaculture production by value, specialising in high unit value products for the growing Asian market. As a trade-exposed industry, the seafood sector is subject to trends in world markets, global market disturbances (such as COVID-19), key trading partners and the effect of Australia's exchange rate on the price received for exports and for competing imports.1

 

One of the most significant threats to Australian seafood exporters is the current lack of market diversification.

 

Dependence on limited Asian export markets carries significant commercial risk as was evident during the Severe Acute Respiratory Syndrome (SARS) outbreak in 2003 and more recently the COVID-19 outbreak. The Australian seafood sector is increasingly looking to further develop alternative global export markets such as the United Kingdom, the European Union, the United States and India in order to minimise risk exposure.

 

Australian seafood exports

In 2019-20, seafood exports totalled $1.4 billion or about half of the total value of production.2 Seafood exports were down eight per cent on the previous year largely as a result of the effect of COVID-19 on global trade in the second half of the reporting period and ongoing trade tensions with China.

 

Four key export markets accounted for 84 per cent of total Australian edible and non-edible seafood exports in 2019-20. They included:

 

China $770 million (54 per cent)

Japan $215 million (15 per cent)

Hong Kong SAR $136 million (10 per cent)

United States $71 million (five per cent).

 

Five seafood products accounted for 79 per cent of total Australian edible and non-edible seafood exports in 2019-20. They included:

 

Rock lobster $544 million (39 per cent)

Salmon $189 million (13 per cent)

Tuna $146 million (10 per cent)

Abalone $144 million (10 per cent)

Prawns $98 million (seven per cent).

 

Australian seafood imports

Australia's level and composition of seafood production means imports are required to fill the gap between Australia's seafood consumption and local seafood supplier in Australia . Whereas Australian fishery and aquaculture exports are dominated by high unit value products such as Rock Lobster, Atlantic Salmon, Southern Bluefin Tuna and Abalone. Imports of fishery and aquaculture products largely consist of lower unit value products such as canned or frozen finfish but also include higher unit value products such as prawns and salmonids.3

 

Despite the importance of Australian seafood exports to the profitability of the industry, Australia is a net importer of seafood. In 2019-20 Australia imported seafood valued at $2.1 billion from 97 countries. Six key countries accounted for 72 per cent of total Australian seafood imports. They included:

 

Thailand $482 million (23 per cent)

China $341 million (15 per cent)

Vietnam $301 million (14 per cent)

New Zealand $181 million (nine per cent)

Indonesia $126 million (six per cent)

Norway $93 million (five per cent).

 

Six seafood products accounted for 77 per cent of total Australian edible and non-edible seafood imports in 2019-20. They included:

 

Fish (generic) $497 million (24 per cent)

Prawns $393 million (19 per cent)

Tuna $341 million (16 per cent)

Salmon $223 million (11 per cent)

Cuttlefish $88 million (four per cent)

Pearls (including imports) $64 million (three per cent).