‘This is trial balloon stuff’
Louisbourg Seafoods wants to explore potential for underutilized species at Asian expo
An ongoing effort to develop markets for underutilized species has taken Louisbourg Seafoods to a major trade show in Hong Kong.
Dannie Hansen, vice-president of sustainability with Louisbourg Seafoods, said while the company has taken part in many industry trade shows over the years, this is the first time the company has a presence at the Seafood Expo Asia in Hong Kong, which opened Tuesday.
According to the expo’s website, more than 8,800 professionals in the seafood sector from more than 65 countries are at the trade show which continues until Thursday.
“We have this strategy in the company to take part in these so that we can better comprehend just what the Asian companies are looking for and the product line that they’re looking for because we have many underutilized species that they like,” Hansen said.
Those species include sea cucumber and whelk and Hansen said the Asia market is also increasingly embracing local snow crab and lobster.
“We try to keep on top of all of these exploring markets,” Hansen said. “Not necessarily are we expecting to do big volumes, this is trial balloon stuff that we have to invest in. There is great receptiveness from all of Asia … from all of the countries that we have free trade agreements with.”
Louisbourg Seafoods employs 350-400 people.
It’s important to ensure the company is getting the proper return on its investment, Hansen said, noting that while funding programs are available to help with costs associated with these sorts of trips, they can be very expensive for businesses.
“Followup is extremely important,” he said. “These trade missions are introducing us to very good potential clients and then we as companies have to take a deep breath and we have to analyze and make sure that it’s revenue and cost-effective.”
Hansen encourages small and medium-sized businesses to form clusters and share some of the costs and the knowledge they gain.
“There’s no need for anyone in Cape Breton to compete for a customer,” he said. “If we work together on the logistics and the administration and the sales we could save ourselves hundreds of thousands of dollars.”
While trade missions are useful, Hansen said companies need to maintain secure foundations with easier sales.
Another exhibitor at the expo is Victoria Co-operative Fisheries Ltd. based in Neils Harbour. They have taken part in the expo in Hong Kong for the past three years, said general manager Osborne Burke, and until this year was the only Cape Breton company represented there.
He said the co-op is trying to build its brand into that market and has seen success from its participation in Seafood Expo Asia.
“We have done a substantial amount of business, in excess of $1 million with one customer in Hong Kong, which we’ve increased again this year and we’ll be meeting with them again at the seafood expo,” Burke said.
The co-operative is also moving into the Vietnamese market, with its first container of product currently on the water.
The Asian market is primarily looking for products such as processed lobster and snow crab.
He noted the Vietnamese value Canada as a source for seafood because it is regarded as a source of safe, clean product.
Premier Stephen McNeil is leading an intergovernmental delegation to Asia to promote trade and investment opportunities and will also attend Seafood Expo Asia.
A government news release noted that exports from Nova Scotia to China have more than doubled since 2013, reaching $491 million in 2016, with one of the fastest growing being seafood, valued at $254 million in 2016.
During McNeil’s trade mission, which began last week and continues until Sept. 13, he and Fisheries Minister Keith Colwell will support Nova Scotia businesses attending Seafood Expo Asia and meet with business leaders to showcase Nova Scotia’s seafood products during events and meetings.