EXPORTS GRIDLOCK

THE CORONAVIRUS outbreak in China continues to cause trouble for Otago and New Zealand businesses as crayfish, wool and tourism are being affected.

The new coronavirus has infected more than 8000 people globally and claimed 213 lives.

Exporters say they have had to move quickly to deal with the outbreak rattling their biggest market; customs clearance has ground to a halt due to new China border controls.

A local seller of crayfish said people in the industry were losing money due to China not buying it.

‘‘We’re helping out to try and move a glut of fish that’s in the system,’’ he said.

Crayfish were being sold on special for about $35 each at Harbour Fish in Dunedin and Queenstown.

Fiordland Lobster Company chief executive Alan Buckner had been in meetings all day and was not available for comment.

The company exports about 98% of its live crayfish to China and was expected to have sent about 1.5 million live crays there in 2019.

ASB Bank economists said seafood was the most exposed export commodity, as it was a luxury item unlike meat and dairy.

‘‘Already, the export of live crayfish (rock lobster) has ground to a halt, with reports of domestic prices falling to $80/kg from the usual market price of around $130/kg,’’ the bank said.

In Waitaki, the effect of the virus was being felt in the tourism sector.

“Locally, cancellations are being received at the Oamaru Penguin Colony and other local attractions for group tours only. Free independent travellers from China are still arriving and enjoying Oamaru and the greater Waitaki region,’’ Tourism Waitaki general manager Margaret Munro said.

‘‘The group cancellations are currently impacting our February bookings at this stage.

‘‘The cancellations will have a ripple impact on the accommodation sector, tour coaches, various prearranged activities and attractions and the hospitality sector who deal with the Chinese group market.”

The Otago Daily Times understands Oamarubased Catto Wools has had exports to China held up as a result of the crisis. Stuart Catto, of Catto Wools, did not respond to a request for comment yesterday.

Waitaki Mayor Gary Kircher said whether the effect would flow into other areas of the district’s economy was ‘‘speculation’’ at this point.

Silver Fern Farms, the New Zealand’s biggest meat exporter, faced delays in getting its product to market due to congestion at ports and the extended Lunar New Year holiday, chief executive Simon Limmer said.

‘‘In the past 24 hours we have resolved some early challenges this placed around balancing cold storage and processing capacity and are back on track with our product flow at this time,’’ he said.

‘‘This should set us up well for when Chinese consumers look for trusted and safe food options in coming months.’’

Meat Industry Association chief executive Tim Ritchie said there would not be an immediate shock, but the outbreak would have an impact.

‘‘It is not likely to be a bang or a crash, it is more a slowing down of activity then picking up again, as things get under control,’’ he said.

‘‘There probably has been some impact, but how it will evolve probably just depends on the extent to which they get it under control quickly.’’