Most of the maritime countries of East Asia have a strong tradition of seafood in their cuisine and, as their economies have developed in the late 1970s and 1980s, their markets for high quality seafoods have expanded significantly reflecting the increase in disposable income for luxury items.
Per caput consumption of fish products has traditionally been high in most of these countries and small changes in per caput consumption disguise the fact that expenditure on seafood either within the home or increasingly in restaurants has risen more rapidly through a tendency towards increased use of exotic rather than basic commodity items.
The prime quality seafood sector in East Asia encompasses a wide range of products from live fish, crustaceans and molluscs to specially processed items such as shark fins, dried scallop meat, jellyfish and sea cucumber. The earliest amongst these to be traded live were bivalve shellfish, crabs and spiny lobsters which are those marine organisms easier to keep alive for human consumption.
It can be assumed that fishermen later became adept at keeping alive a range of shrimps and marine finfish (freshwater fish are considerably hardier and for centuries have been traded live for human consumption).
Despite increasing consumer preference in many markets for the special taste of live seafood there has been little progress in methods of handling wild captured higher organisms from the sea. This has resulted in significant increases in their prices in response to greater demand for live fish compared with the price for dead specimens of the same species. Price increases have been compounded by a general levelling-off in the capture fisheries production of many countries in the region, leading to a widening deficit of supply over demand.
In this situation, aquaculture has been able to develop a viable position in the production of alternative sources of live seafish for a well established market. In a few cases aquaculture has become so efficient as to serve market sectors which do not require live products, but generally in cases where there is no competing supply from the lower production cost capture fisheries. Coastal aquaculture production in the region is shown in Table 1.
A concise summary of the regional marketing picture for aquaculture products is given in the section for product development and marketing in Priority Areas for the next intersessional period in the report of the Seventh session of IPFC Working Party on Aquaculture, Bangkok, 1–6 August 1988:
“Considerable evidence … that production of certain aquatic organisms nears domestic and/or international marketing limits in many countries of the region. It was generally agreed that product development and market promotion efforts were required for the domestic market. International markets do not yet play an important role in the marketing of aquaculture products, except for shrimp and those seaweed species which are used as industrial raw materials. The development of domestic markets, however, has received inadequate attention till now. These markets are not very homogeneous, and their study is exceptionally time-consuming and expensive. Domestic marketing problems are in many cases price-related as the consumption of a commodity usually depends on the income level of the consumer. In other cases the inflexibility of consumer habits may rapidly lead to market saturation once aquaculture starts mass-producing a new commodity. Participants agreed that attention in the intersessional period should be concentrated on domestic market studies and product development should receive as much support as the further increase of production.”
Although there is a clear market segmentation at the trading level between live and fresh, chilled or frozen forms of the same species, national statistics seldom allow a differentiation and most production statistics aggregate live disposals with fresh or chilled and on occasions even frozen products.
The price paid for the live product varies between countries and national aggregate statistics must be examined with caution in determining the supply condition of individual markets. Thus, in Hong Kong, the market price for three grouper species in live form is determined by the relative amount of each species in live form and to a lesser extent the amount of live snappers or sea breams, rather than by fluctuation in the much larger volume of sales of fresh, chilled or frozen grouper. Changes in supply of one species in its various dead forms on the market will have little or no effect on the price of live fish of the same species.
Despite the above this survey will consider as premium finfish the total production in live, fresh, chilled or frozen form of any species of whose production is commonly traded in live form. Segmentation of the market for such a species by product form will be commented upon as appropriate.
Table 17 shows the latest annual regional production of the range of species/groups thus defined together with several other types displaying a high value when sold fresh that can be considered substitutes on the fresh market.
A review follows of fisheries production and supply in countries of the region with emphasis on the market for seabass and for grouper.
Thailand
Thailand has had one of the most vigorous fishery sectors in the region for some years. The marine capture fishery developed strongly in the 1960s with the adoption of trawl fishing in the Gulf of Thailand. Capture fishery production growth stalled in the 1980s and aquaculture production took its place as a growth sector, total production including freshwater reaching 152 000 t in 1987 (Poonsap, 1989). Mariculture output dropped sharply to 39 100 t in 1986 from 60 600 t in 1985; bivalve yields decreasing from 42 000 t to 18 900 t.
The most dramatic growth recently has been in marine shrimp farming which, despite recent marked decreases in prices achieved, is expected to produce more than 100 000 t in 1989 (Far Eastern Economic Review (FEER), 1989), from a level of only 16 000 t in 1986. Marine finfish have been farmed successfully for several years by a variety of methods; for instance, seabass in marine cages, brackish ponds and even in earthen freshwater ponds. Within 10 years the number of marine cages had exceeded 20 000 (Csavas, 1989); species farmed include seabass, groupers and snappers.
A marked feature of the aquaculture sector is the wide distribution of technical skills for a number of farmable species. Many small hatcheries have the capacity to produce fry of several different target species. Thus the grow-out sector is able to change its species at relatively short notice according to market demand. This flexibility makes it difficult to assess, in the medium term, the production capacity for a given species.
Despite its dominant effect on the market for fish, the marine capture fishery benefits aquaculture by providing an abundant source of cheap trash fish for feed. An extensive high speed road system also facilitates the delivery of inputs and outputs over a wide area.
Most finfish produced in aquaculture is consumed domestically although both seedling and market-sized fish are commonly exported.
Seabass: Thailand was one of the first countries in which artificial propagation of seabass was extended into the private sector. As such its history of culture is one of the longest; aspects of the techniques used especially in cage farming are given in Anon. (1988). Farmed production by year is shown in Table 2.
Seabass are grown in earthern freshwater ponds, in brackishwater ponds or in marine cages. Such forms of aquaculture suit a variety of species and the existence of a strong private hatchery sector capable of multi-species fry propagation enables fish farmers to switch easily between a variety of freshwater, brackish or marine species according to market demand, and the profitability of respective specific cultures. This is the probable reason for the apparent decline in farmed seabass production in the later 1980s.
Production of farmed seabass peaked at 1 059 t in 1983 but has since halved. In 1984 farm production was 28% of a total 1 710 t of seabass produced in the country. By mid-1989 prices for seabass were only just above break-even levels (personal observation).
Farmed seabass is marketed fresh or alive. Consumption of seabass is widespread in seafood restaurants where it is one of the most popular fish, and commands top prices. The farm price for live and fresh seabass is almost the same (Kongkeo, personal communication) reflecting the fact that a higher price for live seabass at the retaurant is offset by a higher cost of transporting live fish to the buyer.
In mid-1989, farmed seabass realized a price about three times that of wild-caught seabass. However, this reflects the greater demand for plate-sized fish of up to 900 g. Wild-caught fish are reportedly 1.5 kg and upwards and are generally used for filleting rather than as a whole tablefish.
Buyers consider fish grown in earthen ponds to have a muddy taste and inferior colour to that produced in brackish or marine farms: this results in a Baht 10 premium for the latter (Kongkeo, personal communication).
In 1983 the producers' price in the southern province of Phang Nga averaged Baht 63/kg. In mid-1989, the farm price for marine seabass of up to 1 kg had risen to Baht 90/kg or $US 3.60/kg (personal observation).
Production and demand seem to be in reasonable equilibrium. Farm inputs do not appear to be limiting, except locally, e.g., parts of Phang Nga Province where small cage operators have to compete with domestic consumers for fish for feeding (Drewes, 1986): trashfish prices are some of the lowest in Asia, and hatchery capacity is widespread.
Market imbalances may arise, however, from competition for the use of increasingly scarce brackishwater areas and marked switches in the attention of hatchery operators towards alternative species. Thus the expansion of marine shrimp farming from an output of 16 000 t in 1986 to a forecast exceeding 100 000 t in 1989 could result in a marked diversion of resources from seabass culture. Should this happen it might result in a modest rise in output market prices which in the mid-1980s were reportedly close to output costs. Thai seabass production fell by almost 60% between 1983 and 1984 as a result of limited marketability (i.e., presumably a market price affording unattractive profitability) but recovered after 1985 because of rapid expansion in the regional market for live fish (Kungvankij, 1987).
In Thailand, as elsewhere, seabass commands a market price lower than that of the volume-farmed groupers: Baht 63 against Baht 85 as reported by Drewes (1986). Shortages of seabass on the domestic market are therefore unlikely to push prices up significantly unless they coincide with shortages in live grouper supplies. The production of farmed grouper was about 20% that of seabass in 1985 and 1986 (see Table 2). Snappers are the only other premium marine fish reported to be farmed in Thailand though a number of high-value freshwater fish, such as marbled goby, are produced.
Although Thai seabass fry and fingerlings are a recognized export commodity, there are few data on the volume of near-market size export of seabass. Kungvankij (1987) noted that the total exports of all live fish species from Thailand in 1985 were only 155 t of which two-thirds were sent to Hong Kong 1. Malaysia imports both fry and market size fish from several southern provinces.
The prospects for farmed seabass in Thailand are thus for stable production determined as much by the prospects for other target farmed species as by changes in market demand.
Malaysia
Malaysia's principal fishery has been that using trawl to exploit the Malacca Straits on the west side of Peninsular Malaysia and substantial gathering of blood cockle in the same area. Declining catches from a peak of 792 000 t in 1981 to 599 000 t in 1987 were partly instrumental in the introduction of marine fish culture in the late 1970s. Aquaculture production totalled 51 650 t in 1986 from Peninsular States (that from Sabah and Sarawak is unrecorded) of which 91% was derived from brackish or marine sources (Othman, 1988). Seabass was the most valuable species comprising 20% of all farmed finfish, marine or freshwater.
Seabass: In Malaysia seabass is produced mainly in floating cages where in 1988 production combined with grouper and several other types totalled 1 579 t (provisional data in Anon., 1989, and Table 3). There is also some brackish pond production.
Seabass farming began in the mid-1980s with a ready supply of hatchery fry and fingerlings from neighbouring Thailand. Despite production of 36 million hatchling fry at the sole government hatchery most cage culture still relies on imported seed from Thailand (Anon., 1989).
Cage culture is concentrated in the west coast of Peninsular Malaysia and most of its production is destined for the live market. Production has been stimulated by the growth of live-seafood restaurants which are widely distributed even in smaller towns, and appeal particularly to the sizeable Chinese component of the population.
Normal grow-out is to a size of 450–750 g fetching a price (1987) of $M 6–10/fish, approximately $US 3.50/kg. Frequent market gluts occur when farmers leave fish to grow to 1.5–2.0 kg, a suitable size for the chilled rather than live market, but realizing a price of only $M 7.0/kg (INFOFISH, 1987).
In addition to the domestic market, much production is exported. Of 1 850 t of live fish (all species) for which export permits were issued in 1987 (Anon., 1989), a substantial proportion would have been seabass. The principal market is Singapore which is within several hours travel time by boat from production areas like Kukup in Johore. Such exports are live fish in bulk, often destined not for live but fresh distribution via Jurong wholesale market, Singapore.
Locally produced seabass competes with cheap imports from Thailand, in those states close to Songkhla from which the Thai product can be transported by road.
Landings of wild seabass are of the same order as cage or pond reared production.
Market saturation for the typical live product is foreseen in that high handling costs prevent it attracting a wider-based consumer population (Anon., 1989). Some product diversification into pre-packed chilled fish of 600 g for the supermarket trade has been noted (INFOFISH, 1987). Nevertheless, Government programmes envisage an expansion in cage production to 4 000 t by the year 2000 (Ubaidillah, 1986, quoted in Othman, 1988) and Government programmes are directed towards promotion of this and other farmed finfish.
In summary, Peninsular Malaysia has a well-developed cage-farming industry centred on seabass for both domestic and export markets. Reported constraints are largely in marketing: consumer demand at current supply prices is limited.
Singapore
Singapore is one of the principal seafood centres in the Far East and the most accessible to Indonesian exporters. The market has been summarized by Elsy (1987). High labour costs and lack of space have restricted its ability to produce the bulk of its fish needs. Fisheries imports dominate the local market and domestic production capacity is concentrated on particular, fairly sophisticated forms of aquaculture, generally for high-value products.
Though a net importer of fisheries products, Singapore has considerable local processing facilities and is a major entrepot for seafood, redistributing production from a wide area.
Singapore has a population of 2.5 million, one of the highest per caput incomes in the region and a high per caput consumption, 36 kg/year of fish. Consumer seafood preference is strongly towards marine and especially live items.
Domestic capture fisheries production is falling (see Table 4) while that from aquaculture is increasing.
Comprehensive figures on the volumes of specific types of fresh or live fish that pass through the respective market channels are not available. Official figures indicate 1988 imports of all marine foodfish at 73 200 t and exports at 27 200 t (Anon., 1989b).
Without allowance for product conversion but allowing for local production of 15 100 t and assuming 17 000 t of tuna exports are derived from imported fresh fish, domestic food finfish consumption would be about 44 000 t or 18 kg per caput.
The nominal catch of a selection of high value fishes: groupers, snappers, seabass, pomfrets, king mackerels, etc., declined by 50% in three years to a 1987 level of 1 064 t (FAO, 1987). It is reasonable to assume that annual high value imports are of the order of 5 000–10 000 t/year (author's estimate) or 2–4 kg per caput, i.e., 12–25% of total finfish imports. Within the high value market the demand for live fish is probably 15–25% of the total supply or 1 500–2 500 t.
Seabass: Market preference is for fish of 800 g for banquet use rising to 1 000 g for hotels and restaurant buffets. Most live fish is consumed in restaurants since there is a consumer reluctance towards preparation of live fish in the home (Cheong, personal communication). Nevertheless, supermarkets are reported to stock live seabass as well as fresh pre-packed fish retailing at $S 11 and 8/kg ($US 5.80 and 4.20/kg) respectively (INFOFISH, 1987), while hawker stalls (casual out eating places) are beginning to stock live fish for their customers.
Fresh fish is normally sold at Jurong wholesale fish market, through one of the wholesale firms who have pitches on the market floor. Seabass is delivered there regularly from nearby Malaysian production areas in traditional shrimp trawlers converted to live well carriers. Several tonnes of such fish enter the fresh fish market channel daily. Supplies and market floor prices are, however, subject to considerable fluctuation: in April 1989 the reported price on consecutive days for fresh (dead) seabass ranged from $S 7 to 10/kg. Wholesale margins are reportedly quite high, ranging from 8% to 20% (Elsy, 1987).
Recent prices for seabass in various parts of the distribution chain are given in Table 5. It is notable that there is relatively little difference in the prices for the live and fresh product. The ice for live fish is approximately 1.5 times the price of fresh fish. This probably reflects the limited market for live seabass as opposed to the more popular groupers which wholesale live at price levels double those for seabass.
Small fresh seabass, less than 500 g, appears to occupy a high market position among marine fish retailed through supermarkets where it may be priced 50% higher than red snapper, and even higher than similar sized wild grouper and white pomfret. It is believed that considerable volumes of wild-caught snapper, grouper and pomfret are imported fresh either as direct landings by foreign fishing vessels, or by surface or air shipment from abroad. The availability of these alternatives and their prices must have a considerable influence on the market demand for fresh seabass.
Prospects for the live/fresh high value market sector appear to be good. There is little scope for expansion in the mature capture fishery sectors, domestic or external, supplying this market even though the premium sector is only a small proportion of overall catches. Indonesian exports to this market sector have risen strongly in the late 1980s (Indonesian exports to all destinations of fresh, chilled, frozen redfishes, basses, congers rose from 12 t in 1984 to 414 t in 1987 (FAO, 1987). Strong domestic markets for quality captured fish in Thailand and Malaysia are unlikely to permit a diversion of much of their production to Singapore.
The market will thus be looking to overseas culture activities as well as the Indonesian capture sector for increased supplies. Cost of delivery is likely to be a major factor in determining the shares taken by respective exporting countries. Thailand and Malaysia both have proven potential to produce seabass beyond the needs of their domestic markets.
However, the market is thought to be price-sensitive and consumers are unlikely to accept price levels for premium fresh fish out-of-step with inflation before they consider substitutes.
Philippines
Like Indonesia, Philippines is an archipelagic country with a large small-scale fisheries sector and a growing aquaculture industry.
Total aquaculture production reached 602 200 t in 1988 out of a national total catch of 2.3 million t (Abella, 1989). Brackishwater ponds form the major sector occupying 210 500 ha. Milkfish and shrimp are the major products from brackish water. There is a limited production of seabass which is recognized to have a strong commercial potential in view of high demand in both local and overseas markets.
Cage-farming of groupers has been introduced in recent years and serves a live market in the hotels and restaurants of Manila (Abella, 1989). The capture fishery, however, is the major producer of the 25 200 t of grouper (1987) landed annually, itself more than half the regional nominal catch of groupers (see Table 10). Live grouper is also exported to Hong Kong while natural grouper fry have been exported regionally to a number of countries for grow-out. Kungvankij (1987) reported exports of live fish (all species) totalling 23 t for 1984 1.
Seabass: The capture fishery production of seabass in 1984 was 2 000 t while none was recorded from aquaculture in that year (Kungvankij, 1987).
The existence of a strong brackish aquaculture sector means that seabass farming could be expanded with relative ease should market demand dictate. No details are available, however, on the capability of hatcheries or the marine environment to produce commercial quantities of seed. Polyculture of seabass with Tilapia and/or milkfish has been moderately successful (Fortes, 1986). The relative profitability of Tilapia and milkfish brackish culture is likely to be the major determinant in any significant expansion of seabass farming.
At recent production levels seabass commands a higher price than milkfish or Tilapia but there is no assessment of the volume of demand at such price levels.
Hong Kong
Hong Kong may be regarded a pivotal market for seafood in the region. Situated almost on the Tropic of Capricorn mid-way between the tropical countries of Southeast Asia and the more temperate countries of the Northwest Pacific, it has access to tropical, sub-tropical and even temperate species of seafood.
Its highly industrialized population of 5.6 million (mid-1987) has a per caput GDP (1986) of $US 6 500 and in 1987 a per caput consumption of 42 kg of fish products. The population is concentrated in a small maritime area of only 400 mi2 with excellent transport facilities, both internal and external.
Fisheries have long provided the major source of animal protein and up to the 1950s together with agriculture, provided significant employment. Industrialization from the 1960s onwards led to a reduction in the size of the fishing fleet but an increase in its sophistication and in the size of the domestic market as the population grew from less than 2 million to its current level.
The domestic appetite for seafood is extremely diversified both in the type of organism used and in product form ranging from live finfish and crustaceans to dried jellyfish and seaweeds. As in Singapore, the strong domestic market for seafood and excellent trading facilities make Hong Kong a major entrepot for trade in this sector (see Table 6). However, unlike Singapore, Hong Kong has substantial domestic production of fisheries products.
Premium products are particular live marine fish and specific dried goods such as shark fin, fresh fish and crustaceans. Prices for live fish are considerable, being at least three and up to five times those for fresh fish of the same desired species. Because of this, production is generally geared either to the live or the fresh market. In reality there is little trade in fresh form of many of the finfish species important in the live trade other than disposal of fish whose viability in live form is in doubt (author's observation). The size of the market for premium fresh fish seams to be of the order of 100 000 t; some 70% is commonly thought to pass through the Fish Marketing Organization (Table 19 gives species breakdown).
The dominant marine fish in this market are groupers, pomfrets, king mackerel, snappers, sea breams and several other demersal fish. Squid, cuttlefish and shrimp are also important. It should be noted that fresh fish sales of groupers, seabreams and snappers encompass a range of sizes and species different from those traded live.
Centuries-old extensive polyculture for freshwater carps in coastal plains on the northwestern side of the territory has been largely replaced by more intensive forms of pond culture requiring less of an increasingly scarce and expensive resource: available flat land. Snakehead, catfish and Tilapia are grown thus, while mariculture has developed with the cage culture of various fishes in the many enclosed bays of the indented coast line to satisfy a growing demand for live seafood.
Cage farming of marine fish has evolved out of the practice by some types of fishing vessel of storing part of their catch live either in live wells or in bamboo cages suspended from the vessel while at anchor. As the demand for live fish increased with increasing prosperity of the community at large, such fishermen found it practicable to hold their fish longer to select the best time for sale and indeed to increase the value of smaller specimens by on-growing with trash fish to a more marketable size.
The current system of cage operation has developed from such small beginnings and has extended throughout the waters of the territory to cover 28 allocated areas within which its operation is governed specific legislation. Systems of seed supply and feeding have evolved along similar lines. The bulk of seed is derived from naturally caught fry or fingerlings, nowadays obtained by fishing operations especially designed for such purposes. No hatcheries are operated locally but fry are imported from other countries by air and fingerlings usually by sea.
Centred on the premier world market for live groupers, the Hong Kong cage-farming sector reacts swiftly to changes in market demands and the relative costs of imported inputs. Individual farmers change target species and their position in the chain from fry to market size according to their assessment of short-term prospects. Many larger operators engage in growing-out, stock-holding and trading at various levels in the distribution chain.
The market for live marine fish is difficult to quantify because of the diversity of trading channels, sources of origin, and interaction between growing-out, stock-holding and trading. Past assessments of market size based on extrapolation from data on fresh fish sales are unlikely to be of value since there is little consumer substitution between live and fresh product forms. Lee (1980) estimated 2 690 t for 1979 or 3% of total marine fresh finfish of which 6% came from imports. Other estimates (AFD, 1988) put the recent growth in farmed marine fish at a level of 2 870 t in 1987 from 1 155 t in 1982, surpassing the production of captured live fish by 1986.
The total size of the market is of less importance to traders than its composition since a wide range of prices is paid according to species and size. At one end of the scale, small wild-caught siganids are widely hawked in live form at prices close to those for medium-quality fresh fish; at the other, specimens of green parrotfish and high-finned grouper commanded wholesale prices of $HK 170–300/catty 1 ($US 36–64/kg) in April 1989 (author's observation). Demand for the latter is strictly limited since it is their rarity which commands a high price and it is commonly held that customary buyers will desert a particular species if it becomes too abundant on the market. The status conferred by the exclusive ability to provide guests with particular prized species is as important to consumers as such factors as price or taste.
Local production of live marine fish is officially estimated at 5 150 t (AFD, 1988). This included both wild-caught and farmed sales. The market is expanded by imports from a variety of countries including China, Taiwan, Philippines, Thailand, Singapore, Malaysia and more recently Viet Nam and Indonesia. Such imports are often via channels unaccustomed to submitting import trade declarations, but even for declared imports it is impossible to disassociate live from fresh, chilled or frozen, or obtain an indication of their species composition.
It is reasonable to assume an annual per caput consumption of live sea fish of 1–2 kg/year in a total of 40 kg of fisheries products; this indicates a domestic market of 5 500–11 000 t or average throughout of 15–30 t daily. These quantities seem well within the operative capacity of local infrastructure. Exports of live trade fish are a minor but growing activity with regular air shipments to Japan (Choi, personal communication).
The composition of live market sales is no easier to determine than the total size of the market. Kungvankij (1987) estimated the breakdown of domestic production in 1986 at 420 t grouper, 260 t snappers, and 72 t seabass, and seabreams and others unspecified. Lee (personal communication) estimates that 1988 domestic production totalled 3 280 t and was made up of 35% seabreams, 30% groupers, 15% snappers and 20% the remainder including seabass and wrasse.
In April 1989 a visual assessment of fish on display in various restaurant sales, the major outlet for live fish, was 50% groupers, 20% seabreams and 30% others. Groupers are more prominent than in domestic production estimates because of their more frequent use in celebrations compared to other fish and because of their dominance in imports. An indication of the relative prices of different varieties of fish is given in Table 9.
There are a considerable number of grouper species traded alive; the principal ones include Epinephelus akaara, E. tauvina, E. awoara, E. diacanthus and E. areolatus, and Plectropomus leopardus. Several species of seabreams including Sparus latus, Mylio berda, Evynnis cardinalis and Chrysophrus major, snappers, seabass and parrotfish, Choerodon schoenlenil, are prominent in the trade. Top prices are paid for wild-caught fish which are about 10% more expensive than cultured fish of the same species and size.
Most live fish is traded through one of two groups of floating wholesale facilities located in two coastal bays. These feature extensive holding cages. Disposals from these wholesalers are via one or more levels of intermediaries (who usually have their own live transport equipment) to restaurants and hotels which are the major outlets and to specific public markets. Margins at each stage of the chain are 8–12% although the final mark-up to the consumer at restaurant levels is customarily 100%.
Wholesalers often act as importers and actively seek new sources of supply. There are 32 established wholesalers of which the larger businesses operate their own fish transporters to import bulk supplies. Both import and export by air are frequent.
The prospect for imports on the live market is good but depends on the continued prosperity of the local population. Limited water space and increasing labour costs severely restrict scope for expanded production so imports will continue to increase their contribution to total supplies. Importers are trying to establish firm relationships with businesses in the country of origin to secure consistent supplies. Market demands are, however, not limitless and if stock-holding is high traders are often reluctant to buy in even at much lower prices (Choi, personal communication). The practicality and cost of transport will largely determine which species can effectively be exported to the market. Distant suppliers such as Indonesia are unlikely to find viable economic returns from anything less expensive than the premium grouper and parrotfish species although inclusion of small quantities of less expensive species may be practice in bulk shipments.
Papua New Guinea
In 1985 the total fish catch of Papua New Guinea was approximately 16 000 t (FAO, 1989) of which one third came from inland waters. Of the population of 3.2 million 80% lives inland. Barramundi are caught in the extensive river systems by artisanal gillnet fishing and 60% of the catch landed commercially is exported to Australia (Doulman and Kuk, 1986). Such exports fluctuated between 8 and 116 t in 1980–84. Government estimates of the potential yield, however, were 500 t while the nominal catch in 1987 was 173 t.
Australia
Living and labour costs in Australia are among the highest in the region. Its fisheries are thus concentrated in the production of high-value items such as crayfish, marine shrimp and tuna much of which enters the export market. Bulk fish commodities are generally imported.
Thus over the period 1984–86, 78 500 t of fish were exported from a catch of 161 600 t. The retained domestic catch was supplemented by imports of 176 900 t annually to sustain a per caput consumption at the low level of 16.3 kg/year. Australia ranks eighteenth among world importing countries; the value of imports was, however, considerably less than that of exports, e.g., in 1987 $US 300 million against $US 421 million (FAO, 1989).
In gross terms, annual imports of fish fresh, chilled or frozen, of about 40 000 t (product weight) comprised the largest import volume category, though canned fish imports were greater in value.
Despite radical differences in the socio-economic structure of its fishery, Australia shares with Southeast Asia a common interest in the seabass, or barramundi as it is locally known.
Seabass: Recorded landings exceeding 1 000 t in a total fishery production of 200 000 t, understate its importance as a favoured game fish in many river systems and as a favoured fish at the table.
Conflicting interests between commercial and recreational fishing have led to considerable investigation into the enhancement of natural stocks by artificial propagation and even to the development of a small cage culture sector to supply the table market.
The legal size limit for wild-caught barramundi is minimum 1.5 kg, so the bulk of the wild catch is reduced to fillet and frozen for the domestic market. Much of the production is in Northern Territory, a considerable distance from the main consumer population centres of the southern states. Culture fish are cropped at 400 g and air-freighted in chilled form to serve the restaurant market for plate-sized fish where they compete well with farmed salmon and trout.
The total market for barramundi is believed to be as much as 4 000 t/year.
In early 1989, the wholesale price for plate-sized barramundi was $A 15.50/kg cif ($US 10.50/kg) (Matthewson, personal communication). Southeast Asian producers have tried shipments of frozen fish into the Australian market but with mixed results (Schipp, personal communication). There is no record of consistent attempts to supply fresh chilled seabass from outside Australia despite the current use of domestic air routes for fresh distribution.
Indonesia
The dominant position of small-scale marine fishing in total production has already been noted: Indonesia produces the largest part of the world nominal catch of seabass largely as a by-product of activities targeted at other species together with substantial quantities of groupers, snappers and other aquaculture targets.
The mainly small-scale marine fishery yielded 17 500 t of seabass in a total (1987) production of 2.02 million t. Brackishwater aquaculture produced 1 380 t in a total 192 100 t, and there are currently minor and non-reported contributions from marine cage farming as well as freshwater ponds.
Capture fishery production of seabass has been stable in recent years and must be expected to remain so since the fishery in general is in a mature condition and unlikely to change radically in the level of its fishing effort. The fishery is generally directed towards a range of small pelagic fishes and seabass catches, usually of fish exceeding 1 kg in weight, are marketed through the normal channels for the larger demersal fishes in Java.
Brackishwater aquaculture production of seabass currently depends largely on the amount of tambak devoted to milkfish: a field trial (Danakusumah and Ismail, 1986) recorded that a milkfish pond of 1 ha yielded seabass up to 517 g from wild fry after five months and that 4.3% of the total crop of 295 kg consisted of seabass. In fact the recorded catch countrywide is less than 1% of milkfish production which may suggest an active programme to restrict the intake of predatory seabass whose ultimate yield in economic terms is less than that of the milkfish they are believed to have consumed during grow-out.
The extent of mangrove swamp and other suitable area devoted to tambak farming has increased steadily in recent years to 212 700 ha but this is still only 25% of the 840 000 ha considered suitable for conversion to aquaculture. The adoption and/or intensification of shrimp farming has been responsible for most of this increase in the late 1980s. Seabass of course are even more unwelcome as predators in shrimp tambaks than in milkfish culture in view of the stronger price differential between predator and prey as well as their influence on shrimp yields.
In recent years milkfish farmers have been encouraged by government to adopt a polyculture of seabass with milkfish and even incorporation Tilapia to increase seabass food supply in order to gain a better economic return. Such polyculture is apparently currently rather limited as a result of its reliance to date on wild fry and fingerlings which are often difficult to obtain in uniform size groups suitable for stocking in ponds.
Tambak-produced seabass tend to be in the 300–500 g size range in view of the restricted period of the milkfish grow-out cycle. They are marketed through the same channels as milkfish.
In Lampung province, where extensive areas of mangrove swamp are being cleared for the construction of tambaks, partly cleared areas have been put into early use for extensive seabass culture. Wild fingerlings are caught in the inlet water canals and transferred into shallow lagoons of several hectares area. Reportedly market size fish are obtainable within four months of stocking without supplementary feeding being necessary. Yield rates are unknown but input costs (principally the labour involved in collecting fingerlings) are low once the bunds and sluices are constructed. Adoption of such practices in marginal areas which hitherto might have been used for extensive shrimp or milkfish culture require little investment, skill or scarce inputs.
Cage-farming as a potential source of supply has already been mentioned.
Besides the major net importers several regional exporters have developed domestic markets whose state has a bearing on export supply of market sized fish as well as seedstock.
Thailand
Thailand has the largest recorded farm production of groupers among net exporters in Southeast Asia, producing 161 t (1986) against a total of 2 392 t including wild capture. Total grouper output had risen modestly since 1983 but was still barely above the 1982 level.
In 1983 market preference was for larger fish farmed grouper (species not specified) of 600 g fetched Baht 85/kg while 800 g-plus fish were priced at Baht 120/kg (Drewes, 1986). These prices are rather higher than for seabass.
Kungvankij (1987) pointed out the expansion in domestic as well as export demand stimulated production in the mid 1980s but exports are not enumerated. Malaysia probably takes a significant part of the exports from southern states whilst exports are also traded to Hong Kong by air.
Availability of seedstock constrains expansion since hatchery techniques are not developed enough to achieve significant fingerling survival rates. Domestic demand may be expected to increase.
Malaysia
Farmed production of groupers, mainly from marine cages was 107 t in 1987, about a third of peak production in 1983. Including wild catches grouper landings in peninsular states totalled 2 875 t.
In 1988 live grouper (E. tauvina) 600 g/piece ex-farm in northern states for the Kuala Lumpur market fetched $M 24/kg ($US 10/kg) (INFOFISH, personal communication) at least twice that for seabass. The domestic live grouper market does not presently seem to suffer the constraint of demand limits as experienced for seabass. Better quality product is, however, exported to Hong Kong by air via Bangkok (Ferdouse, personal communication), while unquantified imports are accepted from southern Thailand. Limited availability of fry prevents further production 1.
Philippines
As mentioned earlier, Philippines produces more than half the regional nominal catch of groupers, known locally as lapu-lapu, from its capture fishery. It is not recorded what proportion is held alive for premium domestic and export markets but it can be assumed that it provides adequate seedstock for the fledgling cage farming sector. Philippines is one of the major sources of wild grouper seedstock for regional grow-out operators.
Cage farming is a growing activity but the major domestic market as well as many of the potential farming areas experiences a high frequency of typhoons which create significant extra production and distribution costs.
Taiwan
Although its demersal trawl fishery produces small quantities of groupers, Taiwan's aquaculture had not previously sought to exploit the demand, domestic or otherwise, for groupers, preferring instead a variety of other quality products such as eel and marine shrimp for their high-value, export-oriented production.
Since 1988, however, disease problems in the intensive shrimp farming sector of southern Taiwan have encouraged many hatcheries and grow-out pond farms to turn their attention to a variety of alternatives including grouper, E. malabaricus (INFOFISH, 1989). Hong Kong experienced an early flush of exports from such new operations in 1988 (Choi, personal communication) but hatcheries have been unable to produce sufficient viable seedstock for grow-out.
The thriving domestic economy has boosted the demand for top-grade seafood as well as an increase in the input costs of aquaculture. Grouper meets a ready demand, and hatchery limitations are unlikely in the short term to allow expansion of production to a level that might sustain regular exports to the nearby Hong Kong live market (Chen, personal communication).
