Tamer tariffs brighten tilapia business in Guangdong province

The fish trade in southern China went from flat to flourishing this week after China and the United States agreed to reduce tariffs on each other following recent trade talks in Geneva, Switzerland, sending a wave of optimism through Guangdong province.

In Maoming, a coastal city known as China's tilapia capital, farmers and traders rushed to meet surging demand from North America, mostly from the US, Canada and Mexico.

A local business representative surnamed Xie said the tariff relief between China and the US is good news for the tilapia traders and farmers.

"It will help stimulate tilapia farming and trade," he said.

Ahead of the lighter US tariff on Chinese tilapia, which took effect on Wednesday, prices had already climbed in Maoming after signs of improved trade ties emerged earlier this month. Local processing plants began boosting orders in anticipation of a more favorable export climate.

"We are now loading more than 65,000 kilograms of fish for export," said Wang Kangru, an independent broker based in the city.

"Many fish farmers are waiting for prices to rise even more."

The price for a half-kilogram of tilapia has risen to 4.1 yuan ($0.58) from a mid-April low of 3.6 yuan, Wang said, attributing the earlier slump to previously announced tariffs. He noted that the breeding cost of half a kilogram of tilapia is around 4 yuan.

"There is already a supply shortage in the market, and so it's believed that the price of tilapia will jump significantly soon," he said.

Cao Luoding, deputy president of Guolian Aquatic Products Co, said though North America was the biggest destination for the fish, the latest China-US tariff dispute has prompted local producers to broaden their markets. "We believe it is a step-by-step process to shake off our dependence on the US," Cao said.

"Our products are continuously expanding in non-US markets."

Du Xiaoting, sales manager for a fish procurement platform on JD.com, said agreements have been reached with various companies to purchase more than 10 million yuan worth of fish this year. The platform has created a dedicated channel for "transferring exports to domestic sales" to bolster the local market.

Even if trade with the US improves, Guangdong Universal Aquatic Products Co will continue to explore alternative markets, said Huang Xiaoxia, the company's director of domestic sales.

Maoming, located in western Guangdong, produced more than 270,000 metric tons of tilapia last year, accounting for 31.5 percent of the country's total. According to data revealed by Zhanjiang Customs, the city's tilapia exports reached 660 million yuan in the first four months of this year, a year-on-year increase of 38.6 percent, with major exports to Mexico, Colombia, Costa Rica and Peru.

zhengcaixiong@chinadaily.com.cn