Agriculture & Food

According to the observation report on the import and export data of Huacheng, according to the annual fish report of the European Association of Fish Processors and Traders (AIPCE-CEP), the EU has been highly dependent on the import of marine products for many years, and its self-sufficiency level will drop to a historical low in 2021.

AIPCE said that due to the reduction of EU's catch and the UK's withdrawal from the EU, the EU's seafood production will decline in 2021, and the self-sufficiency rate will fall to a historical low of about 35%, while the 10-year average level will exceed 42%. This year, the self-sufficiency rate of EU seafood is expected to further decline to 33%.

According to the observation of Huacheng's import and export data, among the 12.5 million tons of total supply in 2021, imports accounted for 9 million tons, or 72%, while the domestic supply of the EU dropped to 3.5 million tons. By 2022, AIPCE predicts that the total supply will further decline by 7% to 11.6 million tons, and both imports and domestic output will decline. AIPCE said that although the worst impact of the new crown seems to have eased in Europe, many related supply chain problems are still unable to recover to the previous terms of trade.

Due to the conflict between Russia and Ukraine, along with the unprecedented rise in energy and fuel prices, this has also affected other raw materials and input costs in the global food market. According to the report, EU sanctions on Russia also make it more difficult to purchase seafood from Russia. Processors may face a significant uncertainty, further complicating planning and investment decisions. He said that by 2022, processors will face additional challenges brought by fuel prices, energy costs and the rising exchange rates of the US dollar and the euro.

Fishery and trade experts from the Dutch Fish Federation (Visfederatie) said: "All these things will have an impact on the procurement of raw materials and their transportation into the EU for processing and final consumption."

According to the Huacheng Import and Export Data Observation Report, as more and more European consumers seek healthy food from natural resources, the seafood industry has a promising prospect. However, analysis shows that foreign imports are crucial to meeting consumer demand.

A typical example is white fish, especially Alaska pollock. The EU relies 100% on the supply of the United States, China and Russia.

The EU's total demand and import of Alaska pollock will reach 808000 tons in 2021. The United States accounted for 38% of the total supply, followed by China (35%) and Russia (25%). However, AIPCE-CEP said that more than 95% of Alaska pollock imported from China came from Russia.

Similarly, the EU relies heavily on other countries for cod, and 95% of its demand comes from imports. In 2021, the EU's own cod fishery will only account for 5% of the supply, amounting to 41000 tons. The other 850000 tons are mainly imported from Norway, Iceland and Russia, and Huacheng's import and export data observation report.

With various sanctions imposed on Russia by the EU, the UK and the US, "you have seen changes in procurement," he said. But for Alaska pollock, it is difficult to purchase from other countries except Russia.

Despite its dependence on imports, the EU still hopes to increase its domestic production to maximize the supply of seafood. "We should step up efforts to improve the production of fisheries and aquaculture in the EU, because we need these raw materials for the processing industry, and also take into account the increasing competition in global seafood imports," he said. Huacheng Import and Export Data Observation Report.