The value of Chilean fishes in Japan market

The value of Chilean fishes in Japan market

Masatoshi FUTAGAWA / CORDUNAP

May 1, 2012

Market price is one of the most important factors to select culture species.  Starting from the price, establish business model which combine marketing and technology. For example, distance to market (transporting time and cost), size of market (maximum production volume which maintain market price) and potential of market expansion, products forms (live, fresh, frozen, boiled or dry), buyers (wholesalers, supermarket, restaurant or direct to individual consumer). Production location and methods are selected according to market price to take maximum profits. For example, seed production method (intensive, semi-intensive or extensive), culture methods (cage, tank or releasing) and feeds kinds (fresh, moist pellet or dry pellet). Growth speed is the very important which minimize risk and cash flow cycle during the operation. 

Japan market is one of the biggest market in the world which dealt 527,541 ton and 5,734 million USD (fish, shellfish, weeds and processed foods, 477 items) in Tokyo in 2011 according to Tokyo wholesales markets report. Japan market price depends on quality, quantity and sustainability. For example, products should standardize in appearance (size, weight, color, form), says “Japanese eat by eyes”, and contents (taste, texture, flavor). High present of market share and constant supply without quality fluctuation keeps high price.

The average volume and price (JPY and USD) of fish from 2008 to 2011 which are similar to useful Chilean fish at Tokyo wholesale markets as shown in Table 1. Annual average Japanese Yen (JPY) is converted to USD by annual average exchange rate (TTL). It should remind that some fish prices are fresh fish base, not frozen that export from Chile to Japan possibly, and frozen fish price lower than fresh one except tuna. USD price increased due to decreasing exchange rate (25 % from 2008 to 2011) even JPY price decreased in 2011. Also wholesaler charge 5.5 % from the sales for handling in the market. In case of Chilean producers exporting to Japan, who deal with Japanese trading company and offer depending on the wholesale price, quality, quantity and availability of products. Useful Chilean fish are as follows.

1)      Southern bluefin tuna (Thunnus maccoyii)  Indo maguro (JP) same as Atun azul (CL)

Frozen SBT market shows very attractive, sold around 3,700 ton and 24 USD/kg annually and compare to fresh one sold 610 ton and 23 USD/Kg.  The demand is expanding due to Japanese cuisines boom. However, natural resources of SBT is decreasing due to overfishing, it was classified as Critically Endangered on the IUCN Red List in 1996. Thus, the price will rise.

It was a good business that captured young SBT grow-out to adult within months and export to Japan from South Australia in 2000’s (1^st generation business model). Now tuna culture business shifts to 2^nd generation which closing life cycle, hatchery made juvenile grow to broodstock and reproduce products. Mass seed production method is researching at Japan (T. orientalis), Australia (T. maccoyii), Panama (T. albacares), Hawaii (T. obesus) and Mediterranean countries (T. thynnus). Kinki University closed lifecycle in 2006 and produced around 40,000 products at present.

In Chile some SBT are available at off-Iquique but biological data are unknown like biomass, seasonal availability, size etc. It is necessary to do field survey and capture juveniles, not adult, which has advantages that do not require big transport system and higher survival during transporting and rearing. The juvenile grow to broodstock within 2 years and those are acclimatized to artificial condition during rearing in tank or cage.

2)      Yellowtail amberjack (Seriola lalandi) Hiramasa (JP) same as Dorado (CL)

Y. amberjack (fresh, wild) market shows approximately 260 ton and 9 USD/Kg annually. The fish is minor in jacks market. For example, Japanese amberjack (S. quinqueradiata) Hamachi or Buri (JP) sold 13,150 ton (wild, cultured, live or fresh) and 9 USD/Kg and Grater amberjack (S. dumerili) Kampachi (JP) sold 7,140 ton (wild, cultured, live or fresh) and 14 USD/Kg. In addition to that, frozen J. amberjack sold 150 ton and 8 USD/Kg.  Dorado (frozen) price will 8 USD/Kg same as frozen J. amberjack (wild) possibly because both are very similar.  Chilean product needs some advantage to compete in the jacks market like “Olive Hamachi” which fed by olive leave powder and improved meat quality. Moreover, Japan export Buri fillet to USA, Hong Kong and EU for Sushi restaurant as 74.3 million USD according to MAFF White paper 2010. There are markets not only Japan but also closer countries in Chile.

Advantages of this species are fast growth compare to other Chilean fish, able to mass production with sea cage and culture facilities and skill use for tuna culture in a future.

3)      Barred knifejaw (Oplegnathus fasciatus) Isitai (JP) and Spotted knifejaw (O. punctatus) Isigakitai (JP) similar to Pacific beakfish (O. insignis) San pedro (CL)

Barred knifejaw (fresh, over 500 g) market shows annually 29 ton and 20 USD/Kg, and live fish (or newly killed) was 35 ton and 26 USD/Kg approximately. San pedro is similar to Isitai or Isigakitai. The size of Japan market is very tight even high price. It is recommendable to supply products to several markets like North and South America, EU and Asian countries, especially S. Korea shows 50 USD/Kg (wild, live).

B. knifejaw grow slow, it takes 3 years to grow to 600 g and this fish added to mono-culture of sea bream or jacks, in order to clean floating cage in Japan. San pedro grow to 140 g within 2 years in my lab. It could improve growth to change feeds formulation. The production cost reduces by combination of SISP (Semi intensive seed production) and Marine ranching.

4)      Darkbanded rockfish (S. inermis) Mebaru (JP) similar to Grape-eye seabass (Hemilutjanus macropthalmos) Apañado (CL)

Darkbanded rockfish (fresh) market shows 470 ton and 14 USD/Kg annually in Japan. Apañado similar to Mebaru but it grow bigger (40 cm). Rockfish has good price due to white tender meat. D. rockfish grows to 15 cm (50 g) within 2 years and 20 cm (150 g) in 4 years. Thus, those fishes are cultured by Stock enhancement (releasing), not intensive culture, to minimize risk and cost in Japan. Possibly, Apañado grows faster than Mebaru because it grows bigger.

Rockfish (S. oblongus) Takenoko mebaru (JP) similar to False jacopever (Sebastes capensis) Cabrilla española (CL)

Rockfish (S. oblongus) market is not big as there are not much catch. Even so, the price is same as D. rockfish because of the meat quality is similar. Cabrilla española is similar to Takenoko mebaru in terms of appearance and meat quality.

Korean rockfish (S. schlegelii) Kurosoi (JP) similar to (Graus nigra) Mulata (CL)

Korean rockfish (fresh) market price shows similar to D. rockfish but the price jumps to 40 USD/kg over 30 cm. The fish are cultured more popular in Japan due to fast growth and attractive price.

There are no Japanese popular fish which similar to Mulata. Possibly Kurosoi, grows to 60 cm, similar to Mulata which grows bigger as 90 cm.

Basically, rockfishes grow slow except K. rockfish that grows 16 cm (100 g), 26 cm (300 g) and 36 cm (700 g) in each year. According to Nakagawa, the fish mature at 15 ̊C and birth (ovoviviparity) at 12 ̊C (142 thousand larvae by 43 cm at once a year). Each fish has particular embryogenesis cycle, when it fertilizes inside body, that it birth particular term every year. Thus, a birthday is expected by embryogenesis stage and WT in individual fish. Growth and WT has positive relation until 1.5 years old. Stock enhancement shows that 10 cm (TL) juvenile group had highest recovery rate (16 %) among the 5, 6 and 8 cm.

5)      Japanese flounder (Paralichthys olivaceus) Hirame (JP)

J. flounder market shows 780 ton (fresh, domestic) and 16 USD/Kg annually. Also, live J. flounder shows 1,260 ton and 19 UD/kg in Tokyo market.

J. flounder is one of the most popular fish in Japan. Total consumption was 15,400 ton, consisted captured 7,300 ton (48 %), cultured 4,200 ton (27 %) and imported 3,900 ton (25 %) in 2008 according to Kijima report. J. flounder imported from South Korea cultured around 40,000 ton annually, through Shimonoseki (South of Japan) and Osaka ports to Osaka wholesales market by truck with live condition. The imported price, producer price, shows around 11 USD/Kg in 2008 but the price dropped to 8 USD/Kg due to Lehman incident since November 2008.

The quality of flounder from Korea is low and it’s abundant. Chilean producer should target big (over 1 Kg) and high quality flounder, similar to wild like no black spot at white side and wide thickness, which demand for high class market. Even so, it is difficult to compete with Korean producer because it can’t send live flounder from Chile. Thus, Chilean producer seek a close market like North America and EU.

6)      Kingklip (Genypterus capensis) similar to Red cusk-eel (G. chilensis) Congrio colorado (CL)

Kingklip market shows 11 ton (frozen) and 11 USD/Kg annually. Kingklip is similar to Red cusk-eel (G. chilensis) Congrio colorado (CL). The fish is not much popular and market size is not big in Japan. In US, Golden cusk-eel (G. blacodes) Congrio dorado (CL) and Red cusk-eel are more popular and may be they have better market.

7)      Coho salmon (Oncorhynchus kisutsh), Ginzake (JP), Salmon (CL)

Coho salmon market shows 20,900 ton (frozen) and 6 USD/Kg annually which came from Chile. Japanese producer stop operation due to Tsunami accident in 2011.

Table 1. Quantity and average price of similar Chilean fish at Tokyo wholesales markets from 2008 to 2011.
Year and exchange rate (TTS, JPY/USD)	2008			104.46		2009				94.57
EN, JP, scientific, CL name	Kg	JPY/Kg		USD/Kg		Kg		JPY/Kg		USD/Kg
Southern bluefin tuna, Indo maguro (Frozen)	3,973,736	2,616		25.04		4,133,969		2,007		21.22
Thunnus maccoyii, Atun aleta azul
Yellowtail amberjack, Hiramasa (Fresh)	423,224	818		7.83		247,256		828		8.76
Seriola lalandi, Dorado
Barred knifejaw, Ishitai (Fresh)	35,439	2,507		24.00		20,739		1,689		17.86
Oplegnathus fasciatus, San pedro
Rockfish, Mebaru（Fresh), Sebastes spp.	482,559	1,391		13.32		440,721		1,328		14.04
Mulata, Apañado, Cabrilla española
Japanese flounder, Hirame (Fresh)	729,020	1,705		16.32		762,388		1,515		16.02
Paralichthys olivaceus, Lenguado japones
Kingklip (Frozen)	6,840	977		9.35		5,258		1,666		17.62
Genypterus capensis, Congrio dorado
Coho salmon, Ginzake (Frozen)	25,447,249	497		4.76		17,398,545		537		5.68
Oncorhynchus kisutsh, Salmon
Year and exchange rate (TTS, JPY/USD)	2010			88.81		2011				78.84
EN, JP, scientific, CL name	Kg	JPY/Kg		USD/Kg		Kg		JPY/Kg		USD/Kg
Southern bluefin tuna, Indo maguro (Frozen)	3,798,884	1,979		22.28		2,914,913		2,394		30.37
Thunnus maccoyii, Atun aleta azul
Yellowtail amberjack, Hiramasa (Fresh)	191,630	977		11.00		181,938		886		11.24
Seriola lalandi, Dorado
Barred knifejaw, Ishitai (Fresh)	24,290	1,572		17.70		36,582		1,409		17.87
Oplegnathus fasciatus, San pedro
Rockfish, Mebaru（Fresh), Sebastes spp.	529,709	1,244		14.01		435,229		1,283		16.27
Mulata, Apañado, Cabrilla española
Japanese flounder, Hirame (Fresh)	880,761	1,425		16.05		747,873		1,380		17.50
Paralichthys olivaceus, Lenguado japones
Pink cusk-eel, Kingklip (Frozen)	15,682	824		9.28		16,088		823		10.44
Genypterus capensis, Congrio dorado
Coho salmon, Ginzake (Frozen)	21,428,581	552		6.22		19,272,170		610		7.74
Oncorhynchus kisutsh, Salmon
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