Despite both Japan and China agreeing to lift the seafood ban, Hokkaido Fisheries Company in Japan remains skeptical about the speed at which Beijing will resume imports. In response, they plan to continue expanding into diversified markets, entering the United States, Southeast Asia, and other regions.
According to a report by Nikkei Asia on October 20, marine food and products account for about 80% of Hokkaido’s food exports, with China being the main export destination in the past. Hokkaido’s seafood exports totaled 83 billion yen (about 555 million USD) in 2022, with over 60% (around 53 billion yen) going to China, as reported by Hakodate Customs.
Following the Fukushima nuclear plant wastewater discharge into the sea incident in August 2023, China began to ban imports of Japanese aquatic products, leading to a significant decrease in Hokkaido’s seafood exports. From September 2023 to August this year, exports decreased by 45% year-on-year. The wholesale price of scallops plummeted by 20-30% at one point. Scallops are a key Japanese product, with China previously being the largest destination, accounting for half of the total exports.
In September, the then Japanese Prime Minister Fumio Kishida stated that Japan and China had reached an agreement on handling the Fukushima wastewater discharge, with Beijing agreeing to gradually resume importing seafood from Japan. However, some companies in Hokkaido still do not trust China.
“We expect our export volume will not return to pre-ban levels,” said a senior executive at a scallop processing company along the Sea of Okhotsk, “Considering the potential risks, we will temporarily refrain from exporting to China.” The company plans to continue diversifying its sales channels.
In response to the declining demand, some companies are expanding their sales channels through e-commerce and other strategies. Kyuichi, which used to export both shelled and unshelled scallops to China, has now added e-commerce transactions and direct sales to Japanese restaurants.
Kyuichi does not plan to resume exports to China as before. “To mitigate risks associated with China, we are exploring measures such as obtaining export certifications from other countries,” said Yumiko Nakanishi, a director of the company.
Japan External Trade Organization (JETRO) is assisting Hokkaido seafood companies in expanding overseas sales channels. At the end of September, the organization held a trade exhibition in Sapporo, inviting foreign buyers to participate. Over ten companies from countries such as Thailand, the United States, the United Kingdom, and the United Arab Emirates attended the exhibition.
Representatives from companies in Thailand, Vietnam, the United States, and other places showed strong interest in purchasing scallops from Japan. Hokkaido seafood companies also understand the significant risks of relying solely on one country for business operations.
Seafood exports from Hokkaido to markets beyond China are growing. According to Hakodate Customs data, the total export value in August was 5.1 billion yen, a 6% year-on-year increase. This marks the first growth in 15 months, mainly driven by a six-fold increase in shipments to ASEAN countries, reaching 2.6 billion yen.
As of August, exports to the United States increased by 90% year-on-year, reaching approximately 11 billion yen, while exports to ASEAN doubled to nearly 17 billion yen.
In August, JETRO disclosed that California had about 5,000 Japanese restaurants (as of 2022), ranking first in scale nationwide, with an increase of over a thousand since 2010. Scallops as sushi ingredients are becoming increasingly popular, and the demand for high-quality scallops is strong.
Norihiko Ishiguro, chairman of the Japan External Trade Organization, stated to Nikkei in August: “Given the rapid growth of alternative markets, they will soon offset the decline in the Chinese market to a certain extent. There is also great potential for further growth.”
Ishiguro Hiroshi at that time said, “Even if China resumes imports, we cannot return to the original commercial distribution.”
JETRO Chairman Norihiko Ishiguro has mentioned that emerging markets in Eastern Europe and the Middle East are expected to see growth, with Poland alone having 2,000 Japanese restaurants. He added that outside of China, Japanese seafood products no longer pose any reputation risks.