News in brief:
– Hokkaido scallop exports from Japan have surged by 150% to Southeast Asia and doubled to the US, driven by the need to diversify after China’s total embargo on Japanese marine products.
– Japanese fishing industry adapts to the decline in exports to China by creating new processing hubs in Southeast Asia, supported by government initiatives.
Japan’s fishing industry is witnessing a seismic shift in its export dynamics, spurred by a 150% surge in Hokkaido scallop exports to Southeast Asia. This surge comes in the wake of China’s total embargo on Japanese marine products, imposed after Tokyo Electric Power Co. Holdings (TEPCO) released treated radioactive water into the ocean from the Fukushima Daiichi nuclear power plant in August 2023.
Local farmers in Hokkaido, the main hub of scallop production, are witnessing a significant transition in their sales channels. With exports to China drastically reduced, they are swiftly adapting to the growing demand from Southeast Asian markets.
Government support in the rise of new processing hubs
In response to China’s embargo, Japan is rapidly creating new processing hubs and sales channels in Southeast Asia and the US, supported by government initiatives. Notably, marine product e-commerce companies have begun processing Hokkaido scallops in Vietnam, marking a significant departure from the traditional reliance on Chinese processing facilities.
To mitigate the impact of the embargo, the Japanese government has allocated 80 billion yen ($530 million) to support fishing operators. Compensation efforts by TEPCO, totaling 4.2 billion yen to date, aim to alleviate the financial strain on affected businesses, particularly those in eastern Japan handling scallops and sea cucumbers.
Despite efforts to lift the import ban, progress has been slow, with Chinese customers showing reluctance to patronise Japanese restaurants in Beijing. Concerns linger over the prolonged impact of the embargo, as diplomatic negotiations between Japan and China face hurdles.
