The purpose of this section is to summarize the findings during the short visit to INFOFISH, Kuala Lumpur. Given the limited time available, the purpose of the visit was to identify priority areas for further research in a number of markets. This section does not refer to the markets for Eucheuma, as they are discussed specifically in section 2.4.
Given the targets for finfish production offered in the development plan and allowing for these to be increased, there is no difficulty anticipated in placing these profitably in the markets described. It will however, be necessary to develop sales to Hong Kong in order to obtain the best prices. If exporters do not do this, the traders in Singapore will do it themselves to maintain the stability of their own market, as well as to capitalize on the higher prices available in Hong Kong.
As the most readily accessible market, this has been the traditional selling place for a wide range of Indonesian seafoods for many years. As a regional and international trading centre, Singapore has also been a recognized transit point for Indonesian products destined for other markets, notably Hong Kong.
Imports of fresh and live fish exceed 40 000 t, though about 10 percent of this total is re-exported. The market for high value species, including Epinephelus spp., Siganus spp., and Lutjanus spp., is considered to be one of the best in the world with premium prices offered for top quality fresh product and very high prices for live fish. It is estimated that this category could account for nearly 20 000 t/year.
The seasonality of the market is determined by the monsoon which reduces landings between November and February. High prices are also offered during both the Chinese New Year and the wedding season from August to October.
Ninety percent of all fish landed is handled through the Jurong market. The names of some of these traders are found in Appendix 6. The market is well organized by a limited number of traders who enjoy relatively high profit margins in the region of 25%.
Prices tend to be very high relative to the Jakarta market, with special premiums offered for live grouper, which start at $US 4.50/kg and can rise to over $US 50/kg under certain circumstances. The price of Siganus canaliticus is also susceptible to increase during the Chinese New Year period. A sample of recent prices is included in Appendix 4.
There are no prospects identified for project shellfish in the market and in the case of green mussels, it is reported that the market is probably over-supplied.
The Singapore market continues to offer excellent prospects for top quality fresh and live finfish of the species previously described. With air freight rates of $US 0.45–0.50/kg, depending on the port of embarkation in Indonesia, and surface freight rates of $US 0.20/kg in the Riau archipelago, together with the frequency of the service, it will remain the main destination for exporters.
While some Indonesian products enter into the Hong Kong market, this tends to be the result of trans-shipping in Singapore rather than of any direct exports.
The high value finfish market was last estimated in 1980 to account for about 53 000 t, and in 1983, allowing for re-exports, the market imported a total of just under 100 000 t. It is estimated that 24% was live fish.
Although there are no studies available more recent than 1983, it is clear from the statistics that this market is continuing to grow at a very high rate. Per caput consumption of fish has increased from around 35 kg in 1981 to over 39 kg in 1983.
The species considered to be high value include most of the project species: Epinephelus tauvina, Plectropomus leopardus, Lutjanus sanguineous, L. argentimaculatus, L. johni, Lates calcarifer and Siganus canaliticus.
While high prices are common for fresh products (Appendix 4), top prices are paid for live fish, particularly marine species. These are perceived as signifying very high status and are served on festive days and important business occasions.
Prices are seasonally affected by the monsoons, when the landings decline between June and October, and December and January.
Prices for fresh fish of the species referred to previously start at around $US 2.00/kg for the Lutjanidae and rise sharply to over $US 2.00/kg for the Serranidae. These were recorded during October at a time of good supply to the market. Live marine fish prices commonly exceed $US 10.00 and will rise significantly from that level for festive occasions. Some sample prices are recorded in Appendix 4.
Limited information is available on molluscs, and the import data are not disaggregated sufficiently to allow analysis. Some 3 600 t are imported, of which nearly 50% come from PRC, and 1 600 t of salted and dried oysters are imported from Japan.
The continued growth in this market, combined with the fact that products of Indonesian origin are known to have been shipped there via Singapore, require that further research be undertaken at the earliest opportunity. Attention should focus on the live fish market and certain species such as P. leopardus which are reported to command high premiums over other high value finfish.
While published material on other markets was not available during research, informal discussions and past experience suggest that attention be directed toward a number of other countries.
The US market for fresh marine fish, notably the markets in Hawaii and California have proved profitable for a number of the Pacific island exporting countries in recent years. Demand remains very strong; the limiting factor facing these countries is the weak supply available for export. The introduction of direct flights by Garuda makes these markets as accessible as those in the region. Research initially should focus on establishing the acceptability of the species, and clear colour photographs should be used in order to minimize any misunderstanding.
Given the proximity of Australia and the frequency of the air service, some attention should be given to desk research on the prospects there for the fresh marine fish, green mussels and oysters. One source did indicate that frozen green mussel meat might be accepted, though there are some doubts over its ability to compete with the temperate product from New Zealand, for which markets have been successfully developed in recent years.
Exports from Sumatra to Malaysia, notably Penang are traditional and are understood to have increased as Malaysia has become a net importer of seafood products. The deficit for 1985 is estimated to be over 32 000 t of non-canned product, though it is fair to assume that a significant volume of unrecorded exports would help to redress that balance. Indonesia exports around 7 000 t of fresh (including live) product. Six thousand tons of molluscs are imported, fresh or frozen, and 2 000 t, dried and cured. With only 10 t recorded for 1985, Indonesia has no significant share in the market. In general terms, it is unlikely that there are any prospects for developing a profitable business in Malaysia.
Further desk research, in the early stages, is necessary on all of the above markets, including Japan. FAO has commissioned studies on most, if not all of these in the recent past, though they were undertaken on behalf of specific national governments and it is not certain that access to the reports may be given. Further research should include use of the facilities and expertise offered by INFOFISH.
The desk research should include establishing costs of freight and availability of service, gathering of contact lists and, with the use of clear colour photographs, initial testing of the levels of interest in the markets. This process should help decide on an order of priority before any field work is undertaken. The use of development agency underwritten trial shipments to priority markets, should be considered as this has proven to be a very effective way of gaining initial acceptance and of avoiding the costly mistakes of misunderstanding the relative worth of various species.
