Rock Lobster Vietnam, Korea and Taiwan

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David JamiesonSenior Global Engagement Manager

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Agribusiness Expansion Initiative

Suite of services to help

clients expand and

diversify

Comprehensive

sector/market info

online 24/7, self serve

Events and activities

specifically for the agri-

food sector

Boots on the ground to

work with you in

multiple markets

Working with peak bodies and government agencies on agreed priorities and for seamless service

Vietnam

Rebecca BallSenior Trade Commissioner

Market Overview

2018 import increased to 1,556.8 TNS, A$114.32m (live, fresh and chilled)

Live trade reopened Jan-Feb21

Exports Feb-April ~ A$10m

Indonesia A$57.7mCanada A$6.3m

US. A$4.3mSingapore A$1.m

Market access contingent on

importer initiated requests

Coastal tourism COVID down

Cool chain improving

More importers, retailers, home

delivery, HORECA

2021 prices for Australian product

relatively high

• 0% tariff applied to imported Australianlive and frozen lobster

Meeting market expectations

Consumer demands Distribution channels Product specs

• Seafood consumption ~40kg• Food safety paramount (82%)

over price (16%)• Perceived as healthy,

nutritious• Urbanites pay a premium for

quality / safe products.• Preference for larger sized

lobsters.

• ‘Reds’ popular as ‘lucky’.

• Growing demand for live over frozen product for high end consumers and 4* HORECA ~ prestige and popular for weddings and celebrations.

• Growing demand for ready meals for home delivery

• Limited number of live seafood importers in the market ~ 10 but growing due to increased domestic demand.

• Few traders direct to retail ~ majority selling through wholesale and HORECA channels.

• Seafood importers moving online ~ same day delivery

• Importers focus on 1-2 NEW live seafood species per annum

• Distribution through importers to wholesalers, and then on to hypermarkets, department stores, hotels, food service and online platforms.

WRL live ~ market price per kg• 0.6 – 0.85kg ~A$68• 0.86 – 1kg ~ A$75• 1.01 – 1.3kg ~ A$85• 1.31 – 1.8kg ~ A$95• >1.8kg ~ A$100

SRL live ~ market price per kg• 0.6 – 0.8kg ~A$68• 1kg – 1.5kg ~ A$77• 1.5 - 2kg ~ A$83• > 2kg ~ A$85

• Market price set by US & Canadian lobsters

• Domestic supply of Tropical RL

Examples In-market

In February and March 2021, the Western Rock Lobster (WRL) and Southern Rock Lobster (SRL) were

approved for live import to Vietnam - creating new market potential for these two species.

Retailer: Hai San Hoang Gia (Western Rock Lobster)

Retailer: DaoHaisan.vn (Southern Rock Lobster)

E-commerce: Tiki.vn(Southern Rock Lobster)

To remember

Top 3 takeaways Drivers of success

~ 10+ Vietnamese importers currently sourcing live lobsters from Australia

Australian seafood products ‘trusted’ and growing in demand ~ especially at peak periods.

Growing number of live seafood specialty retailers and dedicated space in supermarkets.

Invest in branding ~ don’t simply trade as a commodity

Need to educate Vietnamese importers and consumers of differentiation from US / Canadian product (value).

Consider partnering with an established seafood retailer with an end-to-end supply chain.

KoreaHelen OhTrade Commissioner Seoul

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Market Overview

4,222 TNS (2020 total import volume

of lobsters)

Proactive approaches by

Australian exporters

12 TNS of spiny lobster imports in

2020

3-4 Korean importers testing

marketability

Higher price points compared to

Northern American Lobsters

Significant sales growth in 2020-21

for both live and frozen

99% of imported supplies are

Homarus species

Increasing sales in retail stores

Meeting market expectations

Consumer demands Distribution channels Product specs

• Luxury hospitality food service outlets prefer frozen lobster tails over live lobsters for value-for-money – used for wedding banquets and buffet menu.

• Japanese restaurants use small volume of live lobsters.

• Market price set by Canadian lobsters.

• Live Australian lobsters online selling at KRW 58,000 (AUD$57) per 900g-1kg.

• Small size lobsters: <1kg per single serving or jumbo size (>5kg)

• Frozen cooked lobsters: 450g-500g or 600g-700g

• Live lobsters: 800g-900g or 900g-1kg

• Lobster importers shifting focus to online channels during COVID – digital and TV home shopping

• Next day delivery

• 30-40 lobster importers in Korea.

• 12-15 small/specialized seafood importers can handle complex transport and customs requirements.

• General traders/importers only import frozen cooked products at low price points.

• Distribution through importers to wholesalers, and then on to hypermarkets, department stores, hotels, food service and online platforms.

Examples In-market

Emart (the largest

retail store chains)

and Hyundai

Department stores

(premium stores) buy

live lobsters from

specialised

importers, instead

of importing directly

TROPICAL

FROZEN

KRW

44,000500-600gapprox AUD

$51

KRW 286,000

5kgapprox AUD

$331

KRW 58,000

900-1kgapprox AUD

$67

TROPICAL

LIVE

KRW

64,500800-900gapprox AUD

$74

To remember

Top 3 takeaways Drivers of success

4-5 Korean importers currently sourcing Australian live lobsters

More competitive pricing to appeal to Korean importers.

Positive consumer feedback on unique shape and brand story – mostly served as sashimi or steamed.

Show long-term commitment to Korea.

Need to educate Korean importers on how to minimize mortality rates.

Need to educate Korean consumers on the quality of Australian rock lobsters – use TV home shopping platforms.

TaiwanBrent MooreSenior Trade Commissioner

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Market Overview

60:40Rock Lobster vsBoston Lobster

37%of Rock Lobster

imports are frozen

107%increase in YTD live rock lobster imports

#2Market for final

consumption - YTD

84%AUS mkt share YTD:

live rock lobster

$A37.6average $/kg in 2021:

Live Rock Lobster

$23.4average $/kg in 2021:Frozen Rock Lobster

A$94mtotal market size

Meeting market expectations

Consumer demands Distribution channels Product specs

• Lobster consumption up 10% Y-O-Y

• Current COVID outbreak to dampen sales

• Consumption driven by special occasion eating

• Businesses and chefs prefer frozen lobster

• Australia seen as preferred choice of rock lobster

• Demand increases sharply at lower price points

• 550 – 650g small• 800 – 1000g medium• $25-40 per kg• Live or frozen raw or cooked

• e-Commerce and home TV shopping suitable to off-premise consumption

• Majority of trade through specialty importers (30-50)

• Imports focused on port of Kaohsiung

• Banquet halls and hotels

• Teppanyaki

Examples In-market

To remember

Top 3 takeaways Drivers of success

Australian lobsters can continue to increase share at right price

Taiwanese are brand, status and relationship conscious buyers

Co-invest in promotion and marketing – avoid transactional relationships

Consider long-term strategy to supply @ <$40

Rock lobster understood to be a premium product over ‘boston’

Support of executive chefs is vital

Q&A

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What’s next?

Reach out to your Tradestart or Global Engagement Manager

• 13 28 78New to Austrade? Get in touch to see how we can help and ask specific questions about grants, programs and services

• export.business.gov.auTry the Guide to Exporting tool to identify, understand and prioritise markets

• agriculture.gov.au

• austrade.gov.auRead more about the $72m Agribusiness Expansion Initiative

• austrade.gov.au/news/newsletters

Keep informed about the latest agribusiness news

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