Developing an International Standard for the Trade in Live Reef Food Fish - SEAFOOD Ecolabelling: Principles and Practice - page 164

live-fish transport vessels to declare imports arriving by sea. Records of LRFF
imported by sea are thought to document less than 50% of all shipments. Using
available data and some best guesses, recorded imports into Hong Kong in 2002
were estimated to be 18 000-22 000 tonnes (Petersen et al. 2004). In the years since
2002, annual imports have increased by 27.5% (Muldoon, unpublished data). As
much as 60% of imports into Hong Kong are re-exported to PRC in order to avoid
costly tariffs on imported fish into the PRC (AFCD, personal communication).
Based on government data on imports and Hong Kong retail prices, the gross value
of the trade in Hong Kong is around US$600 million per year. Using regional trade
estimates, the region-wide retail value of the LRFFT could be as high as US$800
million per year.
While volumes of LRFF traded remained stable during most of the 1990s, the
LRFFT contracted sharply in the wake of the financial and economic crisis in East
and SE Asia that began in 1997. Prior to 1997 trade data were coarse, with both
marine and freshwater live fish categorised broadly as either food or ornamental
fish. After 1997, a Harmonised Code System was adopted which enable clearer
identification of live reef food fish categories by key species and country of origin
for those live fish transported by air to Hong Kong. The data show that from a peak
of around 22 000 tonnes in 1998 'declared' imports declined by almost one-third
in 1999, and have failed to recover markedly in subsequent years. After 1999, the
LRFFT became increasingly focused on fewer species - primarily the high-value
and mid-priced groupers (Sadovy et al . 2003). The 'other marine fish' category
contribution to the total trade declined from 54% in 1999 to less than 37% in all
years to 2003. In contrast, high- and medium-value species ('high-value' category
in the data) trebled to more than 22% of total imports by 2002, and in 2005 imports
of the 'high-value' category were still two and a half times greater than in the years
prior to 1999 (Figure 8.2).
Some of the factors thought to have contributed to this change in market demand
include:
overall weaker retail prices making the purchase and transport of lower-priced
fish, that previously made up the bulk of imports, financially unviable;
health concerns such as severe acute respiratory system (SARS) and ciguatera
which impact on consumer prices in Hong Kong and have an even greater impact
on exports from source countries; and
increased access to reliable air transport leading to increased imports of high-
value species via this, 'lower risk' transport mode.
As noted above, Hong Kong and China make up about 75% of the regional con-
sumption of LRFF. Domestic consumption of LRFF in source countries is difficult
to estimate but is likely to be insignificant compared to export quantities. Even
in Australia where disposable incomes are considerable, almost all of the annual
production of 1200 tonnes of LRFF is exported to Hong Kong (Muldoon 2006).
One exception to this is the live-fish fishery of California on the US west coast.