Kiwi ‘dragon’ crayfish in hot demand in China
Bad blood between Canberra and Beijing has put Aussie seafood on the back-burner and created an unexpected boon for New Zealand exports, writes Jennifer Eder.
Dennis Burkhart has been pulling craypots out of the sea off Marlborough’s east coast for decades, but he’s never had a year of fishing quite like this.
‘‘As kids, we didn’t have TV and nobody could beat me at Monopoly . . . so I’ve been doing this all my life.’’
He and his brother Trevor’s side earner has grown over 50 years, these days producing a third of New Zealand’s live lobster exports, an industry that employs 2500 people and earns $320 million a year.
The 69-year-old crayfisher still gets out on the boats to battle salt spray and handle heavy machinery before dawn.
Though this time of year is usually quiet, a shift in global politics has made for a busier November and December than expected. A diplomatic stoush saw China refuse various Australian exports, including live crayfish, also known as ko¯ura or rock lobster.
Suddenly Chinese buyers are paying a lot more to get hold of New Zealand crays.
The extra cash has been a welcome boost, after the industry’s $38m loss during lockdown.
‘‘China is a very big market for us,’’ Burkhart says. ‘‘We have other markets but China takes the most volume and pays the best prices. The Chinese love red dragons, and that’s why they love our crayfish – it’s the dragon of the sea. And we have premium grade lobster, there’s no better lobster on the planet.’’
Pre-Covid, more than a third of New Zealand’s seafood exports went to China, which paid about 40 per cent more than the next highest-paying markets, had a larger population with higher demand, and was closer to freight to than other markets like Europe.
China cancelled all export arrivals in January 2020 amid pandemic freight restrictions and restaurant closures, leaving New Zealand exporters with more than 150 tonnes of live rock lobster waiting to go in pots and tanks. Some were released back to the sea.
Burkhart Fisheries had the largest family-owned crayfish quota in the country, and its distributing parent Fiordland Lobster Company made up about 35 per cent of New Zealand’s live lobster exports, delivered by aeroplane from its export centre in Auckland.
‘‘ In February, we had 60 tonnes for Chinese New Year that had to be flown in, and we got rid of it in the end, but we took a massive hit, ’’ Burkhart said.
Live exports of rock lobster slumped by 82 per cent between February and April, compared to the same period in 2019, provisional trade data from Stats NZ showed.
But by April China was reopening restaurants with fewer seats, and started importing crayfish again.
Working through export pandemic precautions from both countries was ‘‘a logistical nightmare’’, with delays, paperwork and increased expenses. But both economies were recovering well after their aggressive lockdowns, to Burkhart’s relief.
Then, after tension had been building between Australia and China for months, things reached a peak just before Christmas after Australia signed a landmark defence treaty with Japan in November, China’s deputy ambassador posted on social media about alleged war crimes by Australian soldiers, and a leaked Chinese government document listed 14 Australian ‘‘ antiChina’’ policies , including its call for an investigation into the origins of Covid-19.
China, Australia’s biggest export market, blocked Australian imports including wine, barley, beef, timber, lamb, coal and live lobster. Australia had previously exported about 90 per cent of its lobsters to China.
Australian lobster exporters were forced to move stock destined for China back into domestic markets, with the glut of crayfish reportedly selling for as little as $20 each.
Usually a luxury item, international media reported Australian supermarkets were having to put a limit on crayfish of four per purchase, as ‘‘incredible customer demand’’ cleared shelves.
In the meantime, New Zealand exporters were only too happy to supply their crays to China. Burkhart said the increased demand was on par with Chinese New Year, and National Day of the People’s Republic of China on October 1.
‘‘For New Zealand, I’d say conservatively, it’s had at least a 30 per cent positive impact on value for this time of year,’’ Burkhart said, saying one crayfish could sell for up to $ 100 in China. ‘‘ So has it been good for us? Bloody oath. It’s made a huge difference.’’
Burkhart doubted it would last long, as he was optimistic Australia and China could work out their differences. And he cautioned New Zealand from getting too involved.
‘‘My personal experience is the Chinese are the best traders. They’re loyal, they’re real family businesses. I’ve had the same customers since the 80s, now I’m dealing with their sons and grand-daughters.’’
‘‘For New Zealand, I’d say conservatively, it’s had at least a 30 per cent positive impact on value for this time of year. So has it been good for us? Bloody oath. It’s made a huge difference.’’ Dennis Burkhart