Live Marine Fish Trade and
Mariculture in Hong Kong
Louise
W. H. Li[1]
Abstract
Fish is a major
component of the diet in Hong Kong, where live fish are naturally selected
because of their freshness and flavour. Rapid economic growth over the past
decades has fuelled demand for these quality fishes. The market is
restaurant-based and dominated by the steady demand from medium-priced
restaurants where the majority of the population can afford to eat. However,
the demand for certain reef fish has expanded to become a significant part in
the trade, particularly the premium sector. Some of these fish may be captured
using cyanide in producing countries, resulting in destruction of coral reefs.
The government has implemented an action plan to help combat such destructive
fishing methods locally and internationally. Apart from importation by foreign
countries, mariculture also plays a significant role in the supply of live
marine fish for consumption in Hong Kong. Cage culture has been the only method
practised and is regulated under the Marine Fish Culture Ordinance which
requires all operations to be performed under licenses within designated Fish
Culture Zones (FCZs). It is anticipated that mariculture may experience a
period of slow growth in the near future mainly attributed to lack of suitable
land and water space, lack of fish fry or fingerlings, competition from foreign
imports, self pollution and fish disease outbreaks. One viable solution to
support steady and sustainable mariculture production, as well as supply to the
restaurants would be to introduce open sea culture system in exposed sites in
the territory, coupled with the use of improved feed formulation and better
monitored husbandry practice.
Introduction
Situated at the
southeast coast of the People's Republic of China (PRC), Hong Kong covers a
total land area of 1,100 sq km and territorial waters of 1,700 sq km. Local waters
are influenced by the Pearl River discharge in the west and the offshore
oceanic flow regimes in the east associated with winter and summer seasons
which are characterized by distinctive currents. The waters are subtropical
with high summer water temperatures at a range of 20-30oC, and
minimum winter temperatures ranging from 10oC to 16oC
(EPD,1994). Fish farms are located in
fairly sheltered conditions mainly in eastern and southern areas protected from
prevailing winds (Figure 1).
Fish is a major component
of the diet in Hong Kong which has a population of 6.2 million people. Hong
Kong people being devoted fish eaters, live fish are naturally selected with
priority to fresh, chilled or frozen ones not only because of their freshness
and flavour. Under the free trade policy, rapid economic growth and the growing
affluence over the past decades has fuelled demand for these quality fishes.
Recent health awareness promotions such as the preference of low cholesterol
content in marine fish have boosted its market demands.
The current total
annual consumption of all fisheries products amounts to 282,000 tonnes or 46kg
in per capita term, which has steadily increased from an average of about 40kg
per capita in 1980s. The majority of consumption
includes marine products. Separately, fisheries is one of the significant
primary industries in Hong Kong although these contribute less than one percent
of the gross domestic production (GDP). At present, local capture fisheries and
aquaculture produce about two-fifth of the total fisheries consumption which
has decreased gradually from about one-half in the 1980s. Marine fish culture
currently constitute about one-third of the total consumption of live marine
fish in Hong Kong, and the rest of the demand would be supplemented mainly by
imports including cultured and captured species. Beginning in the 1970s, marine
fish culture in Hong Kong has the shortest history among the three sectors of
the aquaculture industry which also includes oyster culture and freshwater pond
fish culture.
Figure 1. Location of the culture farms in Hong Kong
Demand
Fish is a symbol of
prosperity and good fortune in Chinese culture. In fact, the word
"fish" in Chinese is suggestive of abundance and wealth. Fish named
with the word "Red" are popular as the colour itself symbolizes luck
and happiness, for example, the red grouper (Epinephelus akaara). Hong
Kong people, mostly Cantonese in origin, enjoy eating marine fish that are
alive until moments before reaching the dining table. It is believed that live
fish can retain the sweet flavour and soft texture before the fish has gone
through rigour. Consuming freshly-killed fish is also believed to bring vigour and
good health to the body. The desired Cantonese cuisine is to steam the fish
whole in order to avoid changing the flavour and tenderness. Therefore, species
like groupers with low fat content, a firm taste of flesh, and fine-grained
skin are preferred. In addition, wild caught fish can fetch significantly
higher prices than farmed fish owing to their superior appearance and the
perceived flavour and texture. During peak seasons, prices of wild caught
groupers for species such as the green grouper (Epinephelus coioides)
can rise up to 30% higher than farmed ones.
In the live marine
fish trade, three sectors may be identified, namely, the domestic home
consumption market, the medium-priced restaurant market, and the premium-priced
restaurant market (Table 1). Household demand for marine fish largely relies on the supply from retailing stalls.
These stalls mainly sell fresh, chilled and frozen fish of mainly demersal
species with a retailing price range of US$2-20 per kg. Common live fish
species, usually sold by weight, include gold-lined seabream (Rhabdosarga
sarba), brown-spotted grouper (Epinephelus bleekeri), and mangrove
snapper (Lutjanus argentimaculatus). The retail price range is around
US$9-28 per kg and the size range is about 0.4-0.8kg. These are mainly
harvested from local mariculture and supplied from imported culture species;
while some other low-priced live fish such as rabbitfish, rockfish and
tigerfish which seldom exceed 0.2kg are collected from inshore capture
fisheries.
The live fish
market is restaurant-based and dominated by the relatively steady demand from
medium-priced restaurants where the majority of the population can afford.
Dining out is important socially as well as in business. A typical restaurant
banquet meal would include a dozen courses, one of which is fish, and take
several hours to finish. The steamed fish often becomes the focused seafood
dish of a conventional wedding banquet with each table seating 12 guests. Each
wedding usually caters for a few hundred guests and requires 15-30 fish of
optimal size of 0.6-1kg. In fact,
demand for live marine fish is believed to be closely linked to events on the
Chinese lunar calendar. It generally peaks at festivities like the Chinese New
Year around February. Various species of groupers, snappers and seabreams are
popular in this sector. They are supplied by mariculture, capture fisheries,
and import. Recently, there has been an increasing trend of demand for other
reef fish such as parrotfish (Scaridae), wrasses (Labridae), and coral trout (Plectropomus
spp.) which are seldom cultured. Preferable sizes of fish range from 0.5 kg
to 1.5 kg. Fishes that are above 1 kg, seldom exceed 2 kg, would be usually
sold by piece instead of weight. The wholesale price range is around US$9-40
per kg depending upon factors such as purposes of consumption, sources of
supply, different species, desirable sizes, and availability at a particular
season.
In the 1960s, live
seafood was regarded as luxury product that few could afford. The most
important species was the red grouper (Epinephelus akaara), or Hong Kong
grouper, which was the most popular fish species used for steaming as a main
dish in wedding banquets. Usually a couple of fish would be served in one dish
for the fortune of the bridge and groom. The fish could be caught at a marketable size of 0.4 kg along the
east coast of China or cultured locally with the supply of wild caught fry or
fingerling from China. However, in the 1970s, adult stocks were severely
depleted. This influenced fry supply to
the local culture industry leading to the collapse of the market for this
fish. Coral reef fishes mainly from
Indo-Pacific regions then gradually dominated the premium market. The recently
improved long-distance transport collapse of the market for this fish. The
premium market was then gradually dominated by coral reef fishes mainly from
Indo-Pacific regions. With the recently improved long-distance transport
technique for live fish, the amount of marine live fish imported to Hong Kong
has increased tremendously supplying to seafood restaurants particularly
company-based chain restaurants. Some of the preferred species are humphead
wrasse (Cheilinus undulatus), giant grouper (Epinephelus lanceolatus),
highfin (humpback) grouper (Cromileptes altivelis) and leopard coral
trout (Plectropomus leopardus). The demand of these fish is also partly
supplied from offshore capture fleet. Desirable sizes of fish varies with
species. For example, the giant grouper (Epinephelus lanceolatus) can be
found in the market of up to 30kg, or above, of which the split portions are
usually shared among 10 to 20 tables.
Preferred sizes for other species like leopard coral trout (Plectropomus
leopardus) would be around 1-2kg. The wholesale prices per kg in the
premium market range from US$37 to US$80. The trend of demand is dynamic as
different species may become fashionable from time to time.
Table
1. Demand for marine live fish for
consumption in Hong Kong
Demand
|
Purposes
|
Price Range (US $) |
Preferred Size Range (kg) |
Common species |
Supplier
|
Domestic |
Household
consumption |
|
|
Gold-lined
seabream (Rhabdosarga sarba) Yellow-finned
seabream (Sparus latus) Red pargo
(Pagrosomus major) Brown-spotted
grouper (Epinephelus bleekeri) Yellow grouper (E.
awoara) Mangrove snapper
(Lutjanus argentimaculatus) Russell’s snapper
(L. russelli) Pompano
(Trachinotus blochii) Rabbitfish
(Siganus canaliculatus) Rockfish
(Sebasticus marmoratus) Tigerfish (Terapon
spp.) |
Mariculture Importer (cultured species) |
Medium-priced
restaurants |
Wedding banquet |
|
|
Gold-lined
seabream (Rhabdosarga sarba) Pampano
(Trachinotus blochii) Brown spotted
grouper (Epinephelus bleekeri) Green grouper (E.
coioides) Malabar grouper
(E. malabaricus) Tiger grouper (E.
fuscoguttatus) Flowery grouper (E. polyphekadion) Wrasses (Labridae) Coral trout
(Plectropomus spp.) |
Mariculture Importer (cultured species) Capture fisheries |
Premium-priced
restaurants |
Tourists
attractions Wedding banquet Business
entertainment Hosting
celebrations Checking-out
eateries |
37-80 per kg (wholesale) |
1-2 kg or above |
Humphead wrasse (Cheilinus
undulatus) Highfin grouper
(Cromileptes altivelis) Giant grouper
(Epinephelus lanceolatus) Leopard coral
trout (Plectropomus leopardus) Red grouper
(Epinephelus akaara) Stonefish
(Synanceidae) |
Importer (capture fisheries) Offshore fishing fleet |
The patterns of
various distribution channels for live marine fish in Hong Kong involves the
primary distributors’ network, in addition to the major supplies, importers, capture
fishermen and mariculturists (Figure 2).
In local waters, collector boats transport fish from marine fish farms
and inshore fishing boats in relatively remote areas to landing ports near
potential markets. These family-based boats are usually about 8-18m in length
and equipped with live fish holds with a capacity of a few tonnes. At the
landing ports, fish are either transferred to live fish transporting trucks
provided by primary distributors or they are loaded to nearby retailing stalls.
Live fish trucks are equipped with aerators and conditioned water in order to
distribute the fish to various markets and restaurants where similar stocking
facilities are available for keeping the fish alive before selling or cooking. Separately, it is not uncommon to find
direct supply from inshore fishermen to households as they may directly load
and sell the fish at better prices at their own retailing stalls close to the
landing ports.
Primary
distributors are playing a more significant role in marketing the fish with
their integrated networks. Some primary distributors collect fish directly from
mariculturists as they may have their own collector boats and retailing stalls
in addition to live fish trucks. They also collect live fish from various
sources including importers and be able to provide fast delivery to restaurants
and retailers, as well as re-export to China. However, some large restaurants
may collect fish directly with their own trucks from these primary distributors
with abundant sources of supply of live reef fish.
The live fish
market, however, is recently dominated by import supplies through air or sea
transport mode. In particular, the
special live fish transport vessels possessed by some large fish traders may
also be connected with established distribution or marketing networks, namely
restaurateurs, fish retailers, fish
farmers or those involved in re-export trade.
In the early 1990s, about one-fourth of the collected live reef fish was
re-exported to China which has increased currently to around two-fifth. Hong
Kong re-export of live reef fish remains as the major supply to the growing
demand from China, mainly in places such as
Shenzhen, Guangzhou, Shanghai and other southeast coastal areas.
The live fish transport
vessels are purposely built for collecting fish directly from fishermen or
middlemen from countries of origin such as Indonesia and the Philippines. These
vessels, commonly over 25m in length, can travel for months at sea with advance
navigation and holding facilities of carrying up to 10-15 tonnes of live fish.
The fish, upon arrival, are usually kept at mariculture farm cages owned by
fish traders for temporary stocking before selling to distributors. During the
January-February cold period, traders tend to use land-based holding facilities
to avoid losses due to losses associated with temperature fluctuations. The
survival rate of transporting fish in such manner is high as compared to air
packing, which requires the use of anaesthetics and, thus, a higher mortality
rate. A large variety of sizes and
species are transported widely in this manner in contrast to the limitations of
airfreight transportation.
Apart from wild
caught reef fish species, cultured species commonly collected by live fish
transport vessels are malabar grouper (Epinephelus malabaricus) and
green grouper (E. coioides) which are also imported by air freight from
countries like Thailand and Philippines. Other species commonly imported by air
freight are leopard coral trout (Plectropomus leopardus) from Indonesia
and Australia. In general, for imports by air, the fish are mainly dealt and
transported by a separate group of traders. To provide an optimal condition for
air transport. about a dozen of fish of 1-1.5kg are contained in a small box
added with minimal anaesthetics dissolved in conditioned water of about 16-18oC
supersaturated with oxygen.
Local Capture
Fisheries
Figure 2. Distribution channels of marine live fish in Hong Kong
Recently, Hong Kong
has been identified as one of the major demand areas for certain species of
reef fish, notably humphead wrasse (Cheilinus undulatus) that may be
captured with the use of cyanide by fishermen from producing countries,
resulting in adverse impacts on coral reefs and nearby village communities. as
a responsible consumer economy, Hong Kong has been taking proactive steps to
help combat destructive fishing, including the use of cyanide. They are
integrated into an action plan which includes improvement in enforcement,
monitoring, education, as well as publicity and lobbying (Appendix 1).
Apart from the
importation of other countries, local mariculture also supply live marine fish
for consumption in Hong Kong. The Marine Fish Culture Ordinance was implemented
in 1982 to protect and control marine the fish farming industry which has
developed rapidly in recent years. This legislation requires all marine fish
culture operations to be practised under license within gazetted Fish Culture
Zones. The majority of these FCZs are situated in eastern waters away from
development sites, urban population and navigational fairways, and usually
sited to the west of islands or in sheltered bays for protection from dominant
easterly prevailing winds and the associated high waves. Rearing prime species
of groupers, snappers and seabreams from fry or fingerling to marketable size
is performed in floating cages suspended by wooden rafts for 18-24 months. Cage
culture methods remains the only method of marine fish farming in the territory
since its early establishment in 1970s. This floating netcage system requires
good water quality in which the important parameters to be considered are Biological Oxygen Demand (BOD<5.0mg/L),
Dissolved Oxygen (DO>4mg/L), Ammoniacal nitrogen (free ammonia<100mg/L)
and Suspended Solids (SS<50mg/L) (Wilson,1995).
There are currently
26 FCZs with some 1,600 licensed operators occupying a total sea area of 210
ha. The annual production in 1995 was 2,950 tonnes valued at HK$180 million, or
US$23 million (Figure 3). The production has increased three fold to a peak of
3,860 tonnes in 1991 since the implementation of the legislation. Most farm
units are still family-based consisting of few rafts with areas ranging from 100-1,000
m2 (Wong, 1994). Economic profiles show that about one-half of the
total operating expenses for marine fish culture are for purchase of fish fry
and feed. Labour cost increased substantially at around 29% per year from 1987
to 1990 and then the increase showed down to 8% per year from 1990 to 1993,
which is comparable to the inflation rates. These small-scale operations are
becoming less profitable since it would take six years for the initial capital
investment to be recovered in 1993 while only two years were needed for such
return in 1990. The farmer, thus, can only make a living if unpaid family
labour is used. Separately, there are only about 20 larger company-run farms
which are partly used for temporary stock keeping of imported fish. These
farmers may also own their restaurants and retailing stores. The high return
from guaranteed market for the products, would improve culture operations and
make the farm more economically viable.
Supply of fish fry
or fingerling
Seedstock for
marine fish culture are therefore either collected from the wild or imported
from neighbouring countries, but the supply is very variable. Common fish
species currently cultured in Hong Kong are numerous (Appendix 2). The fry of
purple amberjack (Seriola dumerili), seabreams and grunts can be
collected by seine nets from local waters during late winter and early spring.
Gold-lined Seabream is also popularly cultured as it can clean up the nets and
provide good anti-fouling effect, in particular, when mix cultured with
carnivorous species. Although red pargo (Pagrosomus major) fry are found
naturally in Hong Kong waters, they are seldom cultured locally because the
texture of the flesh means the fish does not fetch good prices in the steamed
fish market. Similarly, purple amberjack (Seriola dumerili) is not
considered a preferable species due to its high fat content resulting in loose
texture after steaming. Recently, farmers have reared fry of purple amberjack
and red pargo to approximately 6-10 cm and sold to Japanese traders for culture
in Japan. These traders come to Hong Kong by their live fish holding vessels
and purchase the fry at high prices since these species can also fetch high
prices in the Japanese sashimi market.
Figure 3. Annual production of cultured marine fish in Hong Kong
There are virtually
no established hatcheries due to shortage of land and suitable water resources.
The industry relies heavily on the availability of imported fry which also
determines the species for culture and the continuity of production of a
particular species supply to the market. In 1993, expenses for fry increased
some sixty percent over 1990 costs due to the dependence on imported fry
resources, which had rapidly decreased resulting in escalated fry prices (Table
2). Fry of green grouper (Epinephelus coioides), malabar grouper (E.
malabaricus), brown-spotted grouper (E. bleekeri), russel snapper (Lutjanus
russelli) and pompano (Trachinotus blochii) are mainly imported from
Thailand, Taiwan, Philippines and China. Red grouper (E. akaara) and
green grouper (Epinephelus coioides) initially were two top ranking
species cultured in the early 1980s, but the production decreased drastically
in recent years due to difficulties in obtaining the fry. Instead,
brown-spotted grouper (E. bleekeri) culture is commonly practised in the
territory and the market demand is good. It is used as a substitute for red
grouper (E. akaara) due to its similarity and the relatively steady
supply of fry.
Feeding and
Husbandry
Feed is the other
primary expense in fish culture, although from 1987 to 1993 the price of trash
fish remained fairly stable (Table 2). Feeding trash fish resulted in high feed
losses and self-pollution, which in turn affected fish health and growth.
Recently, moist pelleted feeds have been developed to reduce environmental
impact resulting from leachate from mined fish and provide a balanced diet to
the fish. The feed conversion ratio for moist pellets is around 3:1 and for
trash fish is about 10:1. These feeds reduce mortality and improve overall fish
health. The harvest weights and profit margin on the farm can, in turn, cover
the higher costs of pellet feeds as compared to trash fish. In fact, some
farmers recently reporting doubled costs for trash fish due to shortage of
supply from local fishermen. Therefore, it is anticipated that moist pellets
will replace trash fish as the major feed used for culture in a few years.
Table 2. Cost and earnings of a fish farm in Hong Kong
Item |
1987 |
1990 |
1993 |
Capital investment |
6,120 |
79,419 (30 %) |
10,329 (30 %) |
Operating expenses (US $)
Fry and fingerlings
Feed
Labour
Others
Total |
5,314 6,024 6,491 2,482 20,311 |
5,231 (-2%) 6,687 (11%) 12,115 (87%) 3,509 (41 %) 27,542 (36%) |
8,508 (63%) 6,641 (-1%) 15,114 (25%) 4,284 (22 %) 34,547 (25 %) |
Gross Income (US ($) |
23,077 |
32,071 (39%) |
36,367 (13 %) |
Net Income (US $) |
2,766 |
4,529 (64%) |
1,820 (-60 %) |
Net Farm Income (US $) |
9,257 |
16,644 (80%) |
16,934 (2%) |
Return on Capital (%) |
45 |
57 |
18 |
Cultured fish has long
been considered inferior and less competitive to wild caught fish that have
better perceived outlook and finer-textured taste of flesh. The prices of locally
cultured fish are only 70-80% of those captured fish largely supplied from
imports (Figure 2) (Wilson, 1995). The difference is related to the quality and
quantity of feed used in fish farm, as well as the feeding and husbandry
habits. Overstocking and overfeeding have caused low survival rate and the
cultured fish are commonly underexcised and obese with unfavourably high fat
content. In addition to optimal stocking and controlled feeding, improved
husbandry techniques such as water quality monitoring and efficient aeration
are also required to reduce fish losses by oxygen depletion and disease.
Import competition
With the rapid
development of marine fish culture in Southeast Asia, coupled with the
perfected long-distance transport technique for live fish, there has been an increase in the amount of
live cultured marine fish imported from neighbouring countries. This may cause
saturation of the demand for particular species and reduction in price as well
as profit gain for local mariculturists. An example is sited that the local
production of mangrove snapper (Lutjanus argentimaculatus) has been
dropped drastically in recent years due to the increased competition from
import of cultured fish of the same species with comparable prices and good
quality. It is believed that the culture of new species may lead to development
of new markets. The pompano (Trachinotus blochii) recently cultured
because of its resemblance to pomfret (Bramidae), has attracted favour from
consumers and gets a fairly good market price.
It is envisaged
that the demand for good quality marine live fish in Hong Kong will continue to
remain high, in particular, for wedding and business banquets in restaurants. With
the boosting demand from the mainland China, Hong Kong is expected to continue
to act as a trading centre with its established marketing networks re-exporting
high-valued reef fish to business centres and Cantonese-origin places in
China.
There is little
future for the establishment of local commercial hatchery production of
seedstocks due to the lack of suitable land-based facilities. Seedstocks will continue to be supplied from
nearby countries.
Introduction of new
species for culture is suggested to create new markets as to reduce competition
when the demand for a particular species is saturated. Alternative species for
culture, thus, should be selected based on their steamed quality and outlook
which require improvement in feed formulation and culture condition, as well as
establishment of proper promotion and marketing plan.
Local mariculture
is expected to develop within constraints for species of good market prices.
Recently, development of cage culture at exposed sites coupled with the use of moist
pelleted feeds is recommended for reducing environmental impacts associated
with conflicting uses of inshore waters and sheltered areas. Such would require
substantial financial inputs, knowledge and practical skills. Company-run farms
with strong financial support are more capable of adopting such new procedures
that improve the culture environment and product quality.
It is unlikely that
Hong Kong can cater for the growing demand for reef fish even with improved
feed formulation due to the lack of enough suitable space and technique for
commercially viable culture. Research on environmentally sustainable seedstock
production and culture techniques of high-valued reef fishermen to be a
practical solution towards alleviating the impacts of destructive fishing in
coral reef regions.
I wish to thank the Director
of Agriculture and Fisheries, Hong Kong for permission to attend the Workshop
on Aquaculture of Coral Fishes and Sustainable Reef Fisheries. I also
gratefully acknowledge the contributions of my colleagues in the Agriculture
and Fisheries Department for the information they provided for this paper.
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Appendix 1
Action Plan to Combat Destructive Fishing Hong Kong
1.
Review the Fisheries Protection Ordinance and propose to increase the
maximum penalty.
2.
Examine target species at entry points for cyanide.
3.
Conduct joint patrols with the marine police.
4.
Revise classification system for fish import declaration.
Education, Publicity and Lobbying
1.
Hold seminars to fishermen about fisheries protection.
2.
Erect signposts to publicize marine resource conservation.
3.
Raise the issue at APEC forums and request for cooperation.
4.
Organize workshop to address the issue on long term basis.
5.
Liaise with various parties including green groups, live fish traders,
legislators and the media to discuss and review the progress.
Appendix
2
Common
Marine Fish Species[2]Cultured in Hong Kong - 1996
Serranidae
Epinephelus
bleekeri ~
brown-spotted grouper
Epinephelus
coioides ~ green
grouper
Epinephelus
malabaricus ~
malabar grouper
Sparidae
Acanthopagrus berda
(Sparus berda, syn.)
~ white seabream
Acanthopagrus
latus (Sparus latus, syn.)
~ yellow-finned seabream
Pagrus major
(Pagrosomus major, syn.)
~ red pargo
Rhabdosargus sarba (Sparus sarba, syn.) ~ gold-lined seabream
Lutjanidae
Lutjanus
argentimaculatus ~
mangrove snapper
Lutjanus
russellii ~ Russel snapper
Lutjanus gibbus~ red snapper
Lutjanus
sanguineus ~ red
snapper
Others
Girella
melanichthys ~
black-tipped rudderfish
Lateolabrax
japonicus ~
Japanese seabas
Nibea
miichthioides ? ~
slaty croaker
Pomadasys
argenteus (P. hasta,
syn.) ~ head grunt
Parapristipoma
trilineatum ~
chicken grunt
Seriola dumerili/
purpurascens ? ~
purple amberjack
Siganus
canaliculatus (S. oramin, syn.) ~ rabbitfish
Trachinotus blochii ~ pampano