New Zealand's seafood sector is worth around NZD$2B in export receipts every year. That makes us a key part of the primary sector, but our international exposure also means we are vulnerable to changing global trends.
At the Seafood NZ Conference earlier this month, we were lucky enough to hear from delegates from around the world, who shared their insights into how politics, economics and other consumer trends are impacting the seafood industry. We wanted to share this information, beyond just those lucky enough to go to Conference. So here are some of the key takeaways and insights from these major trading partners that we can learn from.
The United States
Simon Marks, president and chief correspondent of Feature Story News, says the future of New Zealand's exports to the US depends on the country's election results in November 2024. A second presidential term for Donald Trump would make the situation "transactional" plus Trump has pledged to introduce sweeping tariffs on imports. Whereas a victory by Vice President Kamala Harris would be a continuation of a more "orthodox" trade discussion, balancing our seafood provenance story with quality and volume offered.
Meanwhile, Gavin Gibbons, the Chief Strategy Officer for the US's National Fisheries Institute (NFI), the US's largest seafood trade association, says they're currently facing three primary challenges:
- Economic issues,
- Trade policy issues, and
- An uncertain political climate.
Although seafood has experienced less inflation than other foods in the US, Gavin says, the average price per kilo of seafood is still higher than the 'big three' animal proteins (beef, chicken and pork). As a result, current sales are down compared to the two-year average, even among shelf-stable products like tinned tuna.
With price concerns potentially dampening consumer demand, Gavin says "quite frankly, and this is not an overstatement, Americans eating less seafood is a public health concern."
This perception is playing out in the media as well. "Ninety-five percent of media stories are positive about seafood's health benefits, but the perception is skewed by the 5% of stories that say it's too expensive," Gibbons said. Americans only eat an average of 9.3 kilograms of seafood per capita - a "wild underconsumption" of a healthy protein. Though public gains have been made in promoting seafood's health benefits and consciously pushing back against misconceptions, there's still work to be done on the political side.
Australia
Angela Williamson and Veronica Papacosta are leaders in Australian seafood. Veronica is the CEO of the Seafood Industry Australia group and Angela is a director at Blue Economy CRC. They have worked together on the 18-month Futures of Seafood study. Their view is that collaboration between industry and government is essential as competition for ocean space intensifies. Currently, they're at the mapping stage, tracking the implications of positive and negative trends (such as climate change, emerging conflicts and consumer preferences) on Australia's seafood industry to develop modelling tools to test potential future scenarios. It's an example of how collaboration between industry, government and business leads to productive solutions for everyone.
Their study will use data to profile and map Australia's seafood footprint.
Veronica says "[Seafood] is part of our national identity, but it's not a given. We need to collaborate and work with government to make sure it continues."
China
Primary industries are a large focus for New Zealand's embassy in Beijing, China. Ambassador Grahame Morton says that in 2023 Kiwi goods accounted for over NZD$18B in exports, including dairy, forestry/wood, meat, seafood and fruit. New Zealand seafood has a reputation among China's chefs, food service professionals and high-end consumers for its environmental stewardship and management (though many species are sold under local Chinese names).
Practical actions New Zealand's seafood industry can take are to engage with a range of buyers and sellers in attendance at market expos - such as the China Fisheries & Seafood Seafood Expo.
European Union
Lisette Reymer is a senior correspondent in international and national affairs with ThreeNews and Stuff. When New Zealand's historic free trade agreement with the EU came into effect, the seafood industry unlocked savings of NZD$19.6M a year. But ongoing crises in Ukraine, Israel/Gaza and the key Red Sea transport corridor are impacting fuel prices and shipping for the worse - which knocks-on to New Zealand's primary industry exports. Lisette spoke to the risk of escalating conflict on Europe's doorstep - one of the many things New Zealand exporters cannot control, but must be aware of.
