New Zealand lobster exports to China halted on back of coronavirus

Wednesday, 29 January 2020

Lobster exports to China have been halted and industry officials warn there could be significant economic impacts.

The export of live lobsters from New Zealand to China stopped late last week on the back of the coronavirus outbreak in China.

New Zealand lobster is a sought-after dish in China, particularly during the current Chinese New Year period.

The coronavirus outbreak has prompted authorities to shut down transport in various China cities.

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Hotels, restaurants, and other public venues have also cancelled Chinese New Year celebrations in an attempt to contain the virus.

As a result the demand for lobsters in China has at the moment disappeared.

New Zealand Rock Lobster Industry Council chief executive Mark Edwards fully supported the restrictions Chinese authorities have in place to mitigate health risks.

However, he acknowledged it could be a major financial blow to New Zealand's lobster industry.

According to Edwards, the value of New Zealand's rock lobster industry was around $320 million annually, with about 250 vessels and around 2500 people employed directly and indirectly.

'For New Zealand exporters the timing is unfortunate because this is a peak period for demand and good prices over the Chinese New Year,' Edwards told Stuff.

'There are very significant economic impacts if solutions cannot be found. [The] industry is carefully considering its options.'

It is unsure how long the halt on lobster exports will last. 

Lobster exporters are in discussions with Fisheries New Zealand about steps that could be taken to help mitigate the economic impact of the situation. 

'The discussions with Government have been constructive, and although the issues are complex, we are hopeful of a good outcome.'

Edwards said there were lobsters that have already been harvested and they were being held in facilities around New Zealand.  

'These facilities are designed to hold lobsters in premium condition prior to export.'

Te Anau-based Fiordland Lobster Company is New Zealand's largest exporter of live lobsters, or crayfish as they are better known as in New Zealand.

Last year the company sent around one and a half million live lobsters to China.

On the back of that, Fiordland Lobster Company was announced as the supreme winner by the New Zealand China Trade Association at the 2019 NZCTA China Business Awards.

Fiordland Lobster Company chief executive Alan Buckner was unable to be reached for comment on Wednesday.

However, Buckner previously told Stuff that Southland had in other years exported about 100 tonnes of lobster for Chinese New Year celebrations.

Fiordland Lobster Company provided about 60 per cent of that figure, he said.

The Te Anau-based company operates 15 sites around New Zealand, Australia, and China.

Last week in Australia lobster prices reached a record $105 per kg.

However one of the largest suppliers, Geraldton Fishermen's Co-op, on Saturday reduced the price to $0 per kg, which effectively halted trading.

The new coronavirus, called 2019-nCoV, was first identified in Wuhan, China.

At least 106 people have died in the outbreak, and more than 4400 people have been infected in more than a dozen countries.