Developing a niche market for Australian wild caught Eels in China
The Eel fishers in NSW have been trading their product with China for many years.
This has been done by individual fishers selling their product to an exporter who then sells it to importers in China. Under this arrangement there is no contact with the market and the only feedback and discussion between the exporter and the fishers has been about price. Impending changes in export arrangements means the Eel fishers need to find another route to market.
With the China Australia Free Trade Agreement coming into full force in 2019 the opportunity is for the fishers to work collaboratively to develop a niche market in China targeting the emerging consumer class who are looking for clean green and healthy seafood products. The advent of e-commerce in China provides additional opportunity for the Eel fishers to get closer to the market and to establish a market intelligence system, providing feedback about product quality, price and information about what consumers are looking for.
What is needed now is a feasibility study to determine
How the fishers can collaborate by sending consolidated shipments to China via an established B2B (Business to Business) e-commerce platform, and
What the market opportunities are in China for Australian wild caught Eels, including consumer demand patterns, competitor analysis, channel and supply chain partner identification, and product formats
The study will need to consider the economics and logistics requirements of the fishers and the supply chain (in both Australia and China) and should include provision to monitor some trial shipments to test supply chain effectiveness in meeting the market requirements.
The fishers have agreed in principle to collaborating on further developing the market should the commercial feasibility be demonstrated.
This website provides a place for all stakeholders to obtain information, important documents and progress reports in relation to the project. The 6 initial steps planned for the project are available here or via the Project Stages button below:
China, has a population that is approaching 1.4 billion people, a rapidly growing middle class (expected to be 400million people by 2020), rising household income, and an increasingly open business environment. Seafood is big business in China, China alone is expected to consumer more than 50% of the world's seafood production by 2020
The old business model is dying, the digital landscape has changed the way that China does business and opened opportunities for direct access to consumers
There is an opportunity here for Australian wild caught eels to create a niche market, focusing on the well traveled mid-high income, luxe focused consumers, looking for new experiences and safe food.
For further information about the China opportunity and the project goals please download the workshop information here