News Release Archive
NEWS RELEASE (CNS822) -->> FISHERIES--LOBSTER BREAKING INTO NEW MARKETS FISHERIES--LOBSTER BREAKING INTO NEW MARKETS ----------------------------------------------------------------- The Nova Scotia lobster, a delicacy that commands top dollar, pound, franc and yen in some of the finest restaurants in the world, is experiencing a shift in markets that is helping Nova Scotia suppliers diversify sales and build a wider customer base. Live lobster is one of Nova Scotia's top products, exported to over 40 countries. Export values reached $229.6 million in 1995, a 41 per cent increase compared to 1992. Nova Scotia suppliers continue to sell product to traditional markets in the United States, France, and the United Kingdom, but sales are shooting up in new markets, particularly in Asia and Europe. "The global market for seafood products is dynamic, always moving according to prices, availability of product, and trends in consumer tastes," said Fisheries Minister Jim Barkhouse. Nova Scotia lobster companies have been aggressively pursuing new markets. While the United States continues to be the major market, with sales valued at $136 million in 1995, Pacific rim countries have been a focus for the last 10 years. In the late 1980s, Japan was considered the fastest growing market for seafood. Per capita seafood consumption in Japan averages about 66 kilograms per year compared to the Canadian level of about seven. In the 1990s, sales of live lobster to Japan have remained steady with exports totalling $6.3 million in 1995. Now, other Asian-Pacific countries are hot spots of economic growth. Hong Kong and South Korea are two new markets that have shown phenomenal increases in recent years. The value of live lobster exports to Hong Kong grew 10 fold from less than 31,000 kilograms valued at about $500,000 in 1992 to 778,000 kilograms valued at $13.3 million in 1995. Similarly, Nova Scotia suppliers shipped slightly more than 10,000 kilograms of live lobster valued at $172,000 to South Korea in 1992. In 1995, suppliers exported 236,000 kilograms for a value of over $4 million. Europe continues to be an important market where sales represent 24 per cent of total lobster exports; however, since the beginning of the decade, the market has been shifting from northern to southern Europe. For example, the volume of live lobster to France has dropped in recent years as shippers seek markets that are less dependant on pricing. Given strong prices, however, the value of live lobster sales to France has remained fairly steady. Losses in France has been compensated by gains in Spain and Italy, two relatively new markets showing strong growth. The Spanish are shellfish lovers. All major restaurants offer live shellfish, in particular the langouste, an expensive, warm-water crayfish. Spanish consumers initially required some familiarization with the Nova Scotia product, but they are now quite receptive, and its price is very competitive against the langouste. Spain still offers excellent potential for continued market growth. Success has not come easily. Seafood suppliers have had to work hard to provide consistent supplies, ensure product quality, establish good distribution systems, and fight for air space against competitive U.S. shippers, the minister said. Nova Scotia lobster suppliers have worked hard to improve handling and packaging of the product to ensure that it arrives to the buyer in top condition. Buyers view Nova Scotia lobster as a value-priced, quality product with excellent availability. Aggressive product promotion has been the key to successful sales. Nova Scotia seafood companies travel to many new markets to get a first-hand understanding of specific needs of distributors and users and to help them become familiar on handling and preparing the product. Chefs, for instance, are more inclined to put a new product on their menu if they have a good understanding of how to handle and prepare it. Maintaining freshness is especially critical for a live product. Suppliers often find themselves educating distributors and restauranteurs on the finer points of setting up cold-water aquariums and keeping live Atlantic lobster. Equally important in the promotion of Nova Scotia lobster has been its identity as a product of Canada. Canadian seafood is recognized worldwide for its exceptional quality, and Canada has a good reputation as a reliable and trusted supplier. Federal and provincial governments team up with Nova Scotia companies on special promotional events to introduce a product to a new market. Canadian food fairs, organized in conjunction with Canadian embassies abroad and local buyers, have been especially successful in Asia. While Nova Scotia specializes in live lobster, an increasing number of companies are producing quality, frozen product such as lobster tails, claws, and canned meat. The design of new products has followed closely customer preferences and usages in these new markets. That's good news for Nova Scotia. Lobster is the number fishery in the province and Nova Scotia has the leading lobster fishery in the country, with a landed value of some $ 206 million in 1995. Lobster is the bread-and-butter fishery for coastal communities around the province. With the strides made in the marketing of live lobster and more recently value-added products, Nova Scotia is determined to remain in the lead, said Mr. Barkhouse. -30- Contact: Diane Kenny 902-424-0308 trp Nov. 20, 1996 - 10:35 a.m.