Glitnir Seafood Team
China Seafood
Industry Report
November 2006
Glitnir Seafood Industry Report - China
Contents
• Foreword and Report’s Main Findings ...............................................
3-4
• China – Investment Considerations ..................................................
5
• China Overview .............................................................................
6-9
• China – Seafood Industry
1)
2)
3)
4)
Seafood
Seafood
Seafood
Seafood
Production ............................................................
Processing ............................................................
Consumption ........................................................
Sales and Trade ....................................................
10
20
23
27
-
19
22
26
32
• Investment Opportunity in Focus
5) Tilapia Culture & Processing ................................................
33 - 40
• Glitnir Seafood Stockwatch .............................................................
41 - 43
• Glitnir Bank – General Information ..................................................
44 - 45
• Glitnir Bank – Global Seafood Team .................................................
46 - 49
2
Glitnir Seafood Industry Report - China
Foreword
Dear Reader,
It is our pleasure to present the latest issue of Glitnir's Seafood Industry Report. In this issue we focus on the
Seafood Industry in China. We are now in our third year of publication and are grateful for the good feedback we
have received from our industry partners. We will issue 5 reports altogether this year, focusing on one country or
region in each report.
In March 2006 Íslandsbanki (ISB) became Glitnir in a global group rebranding, unifying our national and
international operations under one brand.
In China, fish is a sign of affluence. As one decade of marvelous economic growth brings China unprecedented
prosperity, its significance in the global seafood industry has also reached a new height. Today, China is by far
the world’s largest supplier of aquatic products, both by means of capture and aquaculture. At the same time,
China is also one of the most important consumer markets for seafood, with a fast growing appetite for exotic
and high-end seafood products. Its seafood processing industry continues to attract substantial investments
from around the world. In short, the vastness of Chinese seafood industry presents many opportunities to
foreign investors, in virtually all of its sectors. This report aims to give an analytical overview of the current
Chinese seafood industry and present our understanding of its likely future developments.
We trust you find this report of benefit. We at Glitnir are proud of our strong team of seafood industry experts
and look forward to working with you in our quest to make the seafood industry even more dynamic, efficient
and profitable.
You can contact the seafood team via [email protected] and www.glitnir.is/seafood
Best regards,
Glitnir Seafood Team
3
Glitnir Seafood Industry Report - China
Main Findings
• China is the largest producer of seafood in the world, representing some 35% of the total global seafood
production.
• Freshwater and seawater species represent 44% and 56%, respectively of all aquatic production in China.
• Total aquatic production in China stood at 49 MMT in 2004, approx. 64% of this volume comes from
aquaculture farming. This makes China the largest aquaculture nation in the world and the only country in
the world where farmed fish production exceeds wild catch. In 2004 farmed freshwater species represented
59% of all farming in China while seawater species accounted for 41%.
• Main farming species are shellfish (seawater) and carp (freshwater).
• Shandong province receives the largest portion of foreign investment in seafood processing, the majority of
which comes from Japan and Korea.
• Japan is the major export destination for Chinese aquatic product exports, taking more than half of all China’s
seafood exports in recent years.
• All three sectors of the Chinese food market (retail, wholesale and foodservice) has experienced significant
growth in recent years and we believe that this development will continue as purchasing power increases.
• Seafood consumption is expected to increase substantially in coming years. Seafood consumption in China
was 25 kg per capita in 2004 and is expected to reach 36 kg per capita in 2020.
• Looking into the future, tilapia is likely to surpass other cultured species in importance.
• Production of tilapia worldwide is likely to expand robustly in coming years, as a result of strong investment
in that sector.
• China continues to be the world’s main producer of tilapia and the main export market for Chinese tilapia is
the U.S.
4
Glitnir Seafood Industry Report - China
Investment in the Chinese Seafood Industry
The purpose of Glitnir’s China Seafood Report is to assist our current and potential clients in creating value by
making sound investment decisions in the seafood industry in China. The value-chain of the industry is shown
below:
Supply of Raw
Materials
Catch / Culture
Processing
Primary / Secondary
Distribution
Retail
Trading /
Import & Export
Consumers / Marketing
& Sales
A business may choose to devote its effort to one, several or all of the sectors in this chain. A sound
investment decision, however, must always be based on a clear understanding of each sector in which the value
is created. The first part of the Report is dedicated to this purpose. It provides a general overview of the
development and current status in aquatic catch and culture, seafood processing, distribution and retail in
China.
Based on this understanding, a section in this Report named “Investment Opportunity in Focus” aims to identify
potential investment opportunities in various sectors of the Chinese seafood industry. In each issue, Glitnir’s
China Seafood Report focuses on different investment potentials in the industry. In this issue, the focus is on
the culture and processing of tilapia in China.
5
Glitnir Seafood Industry Report - China
China Overview
6
Glitnir Seafood Industry Report - China
Economy at a Glance
• Area: 9,596,960 sq km
• Population: 1,313,973,713 (July 2006 est.)
• Administrative Divisions: 23 provinces, 5 autonomous
regions, and 4 municipalities
• GDP (PPP): $8.859 trillion (2005 est.) – Ranked the second in
the world
• GDP composition by sector: agriculture: 12.4%, industry:
47.3%, services: 40.3%
• GDP per capita: $6,800 (2005 est.), ranked 117th in the world
• Inflation Rate (Consumer Prices): 1.8% (Q2 2006)
• Unemployment: 9% official registered unemployment in urban
areas in 2004.
• Exchange Rate: CNY per USD – 7.98 (2006e) 8.1943 (2005),
8.2768 (2004), 8.277 (2003), 8.277 (2002), 8.2771 (2001)
• Real GDP growth (%): 10.7 (2006e), 9.9 (2005)
• Country risk rating (EIU CRS)*: Sovereign (BBB stable)
Currency (BBB stable), Banking Sector (B stable), Political (B),
Economic structure (BBB)
• Foreign trade ($m Q2 2006): export fob 231,360; import cif
193,396
• FDI ($bn): 14.2 (Q2 2006), 14.3 (Q1 2006), 17.1 (Q4 2005),
14.7 (Q3 2005), 15.2 (Q2 2005), 13.4 (Q1 2005)
Source: CIA World Factbook, the EIU
*the Economist Intelligence Unit Country Risk Services
7
Glitnir Seafood Industry Report - China
Recent Economic Development
• Central bank introduced flexibility to the RMB in 2005
2000-2005 GDP, FDI & Consumption
allowing its appreciation against major currencies.
• Shift of focus starting in 2006 from an investment-driven
economy to a consumption-driven one.
n
Looming fears of overinvestment still present
-
-
n
n
Investment partially boosted by rise in money
supply and thus in the available funds for
lending.
Efforts to curb overheating such as interest rate
& reserve requirement hikes have been
unsuccessful.
Fixed asset investment in real estate slowed although
rebound in total FAI has been led by investment in
manufacturing (especially consumer goods), natural
resource processing and export-oriented industries.
Household Consumption
(USD 10bn)
GDP
FDI
250
8
223
200
6
5
166
150
142
100
4
127
118
108
3
87
50
7
52
55
59
2000
2001
2002
2
71
64
1
0
0
2003
2004
2005
Household consumption on slow but steady rise.
• Transition from power intensive industrial focus to increased
1992-2004 Growth Rate of Consumption (Value)
emphasis on the service sector both in terms of the sector’s
market share in the economy and employment.
• Inflation and interest rates on the rise but expected to stay
low.
Retail Sales of Consumer Goods
Living Exp
Consumption
40%
35%
• Increasing emphasis on quality of growth at the expense of
the growth rate for the coming years.
n
Emphasis on strengthening structure rather than
increasing size of industries (increasing efficiency).
n
Heavier funding towards research and development to
encourage technological innovation.
• Concentration of investment in East China begins gradual
30%
25%
20%
15%
10%
5%
0%
1992
1994
1996
1998
2000
2002
2004
shift to Central and Western China.
8
Glitnir Seafood Industry Report - China
Seafood Giant of the World
• China remains by far the largest producer of seafood in the world, representing some 35% of the total global
seafood production.
• The country has seen a rapid growth in aquatic production in the last 25 years, averaging an annual growth rate
of 15.22% from 1980 – 2004.
• Total aquatic production in China stood at 49 MMT in 2004, approx. 64% of this volume comes from aquaculture
farming. This makes China the largest aquaculture nation in the world and the only country in the world where
farmed fish production exceeds wild catch.
• Fish farming has grown more rapidly in recent years, at a CAGR of 6% from 1999 to 2004.
1980 – 2004 Growth in China’s Aquatic Production
Millions
50
45
40
50
45
40
35
35
30
30
25
25
20
20
15
15
10
10
5
5
-
Capture
19
80
19
81
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
Ca
na
da
Ic
el
an
d
N
or
w
ay
Th
ai
la
nd
U
SA
Ja
pa
n
In
di
a
Ch
ile
In
do
ne
sia
Pe
ru
-
Ch
ina
Millions
2004 World’s Aquatic Supply (in million tonnes)
Inland waters
Marine waters
Source: FOA Figis database
Aquaculture
9
Glitnir Seafood Industry Report - China
1) China Seafood Production
Supply of Raw
Materials
Catch / Culture
Processing
Primary / Secondary
Distribution
Trading /
Import & Export
Retail
Consumers / Marketing
& Sales
10
Glitnir Seafood Industry Report - China
China’s Aquatic Production
2004 Breakdown of China’s
Aquatic Production
• Total aquatic production for 2004 was 49 million tonnes, up by 4.2% over the year
Freshw ater
Products
44%
before. The industry estimates the similar growth rate for 2005 and 2006.
Between 2001 and 2004, the growth rate averaged 5.3%.
• Facing depleting wild fish stocks and serious environmental damages resulted from
Seaw ater
Products
56%
over fishing, the Chinese government continues to restrict marine and inland fishery
and focus on development of aquaculture.
• Fresh and seawater culture production increased by 6.6% and 5.1% respectively in
2004.
Wild Capture
36%
• Seawater catch increased by 1.31% in 2004. Freshwater catch, however,
decreased by 1.72%.
• Seawater fish output decreased by 0.76%, yet freshwater fish output increased
5.53%.
2001 – 2005 Growth in Wild Capture and Aquaculture
Aquaculture
64%
Millions
(in million tonnes)
40
35
Seawater Catch
29%
34
30
32
25
27
Freshw ater Culture
38%
30
29
20
15
17
17
17
17
17
10
Freshwater Catch
7%
5
Seaw ater Culture
26%
2001
2002
Wild Capture
2003
Aquaculture
2004
2005
Source: USDA Foreign Agricultural Services GAIN Report 2005
11
Glitnir Seafood Industry Report - China
Shandong Province – the Largest in Seafood
In 2004
No.1 Total Aquatic Production: Shandong Province (7.2
million tonnes, 6.1 million tonnes from seawaters and 1.1
million tonnes from freshwaters).
No.1 Seawater Catch: Zhejiang Province (3.2 million tonnes).
No. 1 Freshwater Catch: Hubei Province (393 thousand
tonnes).
No. 1 Seawater Culture: Shandong Province (3.4 million
tonnes).
No. 1 Freshwater Culture: Guangdong Province (2.7 million
tonnes).
2004 Top Regions in Aquatic Production
7,2
6,6
7
5,9
6
4,9
5
4,0
4
3,7
3,0
2,7
3
1,7
2
1
1,7
1,6
1,4
0,9
G
ua
ng
xi
H
ai
na
n
H
un
an
G
ua
ng
do
ng
H
ub
ei
Ji
an
gx
i
Sh
an
do
ng
Fu
jia
n
A
nh
ui
Ji
an
gs
u
Zh
ej
ia
ng
Li
ao
ni
ng
0
H
eb
ei
million tonnes
(in million tonnes)
8
Source: Ministry of Agriculture, China
12
Glitnir Seafood Industry Report - China
Wild Capture and Marine Resources
• There are over 1700 kinds of fishes and about 300
kinds of economically exploitable fishes.
• In addition, there are about 2000 kinds of
seaweeds, 300 kinds of shrimp and crabs, and 200
kinds of economically exploitable molluscs.
• China’s natural marine resource is mainly divided
among three sea areas.
Yellow Sea & Bohai Gulf Area
East China Sea Area
South China Sea Area
2004 Distribution of Wild Capture in China
Others; 8,96%
Freshwate Catch;
14,29%
Bohai Gulf; 7,39%
South China Sea;
21,29%
Yellow Sea; 18,73%
East China Sea;
29,34%
Source: USDA Foreign Agricultural Services GAIN Report 2005
13
Glitnir Seafood Industry Report - China
Yellow Sea & Bohai Gulf
East China Sea
• Small yellow-fin tuna
• Hairtail
• Ling
• Big yellow-fin tuna
• Pacific herring
• Small yellow-fin tuna
• Prawn
• Cuttle fish
• Hair shrimp
• Pomfret
• Jellyfish
• Moray
• Kelp
• Shuttle crab
2001-2004 Wild Capture in Yellow Sea & Bohai Gulf
2001-2004 Wild Capture in East China Sea
(in ‘000 tonnes)
(in ‘000 tonnes)
3.500
25%
3.000
20%
2.500
Thousand Tonnes
Thousand Tonnes
Decreasing Output in Seawater Catch
5.500
33%
5.400
32%
5.300
31%
5.200
15%
2.000
5.100
1.500
10%
1.000
30%
5.000
29%
4.900
5%
500
-
0%
2001
Bohai Gulf
28%
4.800
Yellow Sea
2002
2003
Bohai Gulf % of total catch
2004
Yellow Sea % of total catch
4.700
27%
2001
2002
East China Sea
2003
2004
East China Sea % of total catch
Source: USDA Foreign Agricultural Services GAIN Report 2005
14
Glitnir Seafood Industry Report - China
Freshwater Catch on the Rise
South China Sea
Freshwater (or Inland water)
• Sardine
• Redfish (northern regions only)
• Tunny
• Codfish (northern regions only)
• Bonito
• Carp
• Swordfish
• Naked carp
• Shark
2001-2004 Wild Capture in South China Sea
2001-2004 Freshwater Catch in China
(in ‘000 tonnes)
(in ‘000 tonnes)
3.720
22,20%
3.700
22,00%
3.680
3.660
21,80%
3.640
21,60%
3.620
Thousand Tonness
Thousand Tonnes
• Loach
2.500
15,00%
2.450
14,50%
2.400
2.350
14,00%
2.300
2.250
3.600
21,40%
3.580
13,50%
2.200
2.150
21,20%
3.560
3.540
21,00%
3.520
13,00%
2.100
2.050
12,50%
2.000
3.500
20,80%
2001
2002
South China Sea
2003
2004
South China Sea % of total catch
1.950
12,00%
2001
2002
Freshwater Catch
2003
2004
Freshwater % of total catch
Source: USDA Foreign Agricultural Services GAIN Report 2005
15
Glitnir Seafood Industry Report - China
Aquaculture in China
2004 Aquaculture area & production in %
• Total culture area reached 7.28 million hectares for 2004,
up by 2.5 percent over 2003.
• About 22 percent of the total culture area is in seawaters,
Seawater
22%
78 percent is in freshwaters. However, production is
divided more evenly – 41% from seawater and 59% from
freshwater.
Seawater;
41,03%
Freshwater;
58,96%
Freshwater
78%
• Culture area expansion is expected to slow down, as the
priority has been shifted to increase of productivity and
efficiency, rather than expanding blindly.
Area Resources
2001-2005 Aquaculture Production in China
2001-2004 Development of China’s Aquaculture Area
Resource (in ‘000 hectares)
(in million tonnes)
25
6.000
20
20
19
15
10
11
18
17
16
12
13
13
14
Thousand hectares
Million Tonnes
Production
5.000
4.000
3.000
2.000
1.345
1.286
5
5.664
5.571
5.470
5.362
1.532
1.617
1.000
-
2.001
2.002
Seawater culture
2003
Freshwater culture
2004
2005(e)
2001
2002
Freshwater
2003
2004
Seawater
Source: USDA Foreign Agricultural Services GAIN Report 2005
16
Glitnir Seafood Industry Report - China
Shellfish - the Most Cultured Product in Seawater
2004 Seawater Farming Area by Products
(% of total hectares)
total farmed production, followed by algae (10%), crustaceans,
(5.5%) and fish (4%).
8% 5%
6%
• The leading species are molluscs, accounting for approx. 78% of
15%
• Growth in seawater farming is relatively slow. Production yield per
5%
Fish
Shrimp/Prawn
Crab
Shellfish
Algae
Other
61%
2004 Seawater Farming Area Resource by Selected
Products & Regions
(in ‘000 hectares)
hectare has not been improved significantly in recent years. Yet the
expansion of seawater culture areas starts to result in damage to
the marine eco-system. Therefore growth in seawater farming is
expected to slow down further.
• China’s largest seawater farming area, in the terms of hectares, is
in Liaoning province in Northern China. It is followed by Shandong
province, with close to 24% of the total farming area.
2004 Total Seawater Farming Area by Regions
Algae
7% 2%
15%
16%
Crab
4%
7%
Hebei
Liaoning
Shrimp
Jiangsu
Guangxi
Guangdong
Shangdong
Fish
0
10
20
30
40
50
60
70
Thousands Hectares
26%
Zhejiang
23%
Fujian
Fujian
Shandong
Zhejiang
Guangdong
Jiangsu
Liaoning
Hebei
Guangxi
Source: Ministry of Agriculture, China
17
Glitnir Seafood Industry Report - China
Freshwater Farming Areas
• Freshwater fish farming is dominated by small and medium-sized individual farms located primarily in
the provinces of Hubei, Anhui, Jiangsu, Hunan and Heillongjiang.
• Largest pond farming:
Hubei province (340,015 hectares).
• Largest lake farming:
Anhui province (193,279 hectares).
• Largest reservoir farming:
Jiangxi province (132,559 hectares).
• Largest stream farming:
Jiangsu province (113,014 hectares).
2004 China Inland Culture Area Resources by Type
2004 China Inland Culture Area Resources by Regions
(percentage of total area in hectares)
(Ten top provinces as percentage of total area in hectares)
3%
5% 5%
22%
34%
7%
9%
5%
23%
13%
Source: Ministry of Agriculture, China
16%
Pond
Lake
Reservoir
Stream
Rice Paddies
Others
15%
9%
14%
9%
11%
Source: Ministry of Agriculture, China
Hubei
Jiangsu
Anhui
Hunan
Heilongjiang
Guangdong
Jiangxi
Shandong
Zhejiang
Henan
18
Glitnir Seafood Industry Report - China
Carp - 79% of Total Freshwater Culture Output
• The dominant form of freshwater farming in China is
Estimated freshwater production by farming environment
pond farming, which occupies 34% of the total
freshwater farming area and produces a little over
70% of the total output.
5%
5%
6%
• Carp account for the majority of the output. They
10%
Ponds
contributed more than 79% of all the output of the
1999 freshwater aquaculture output (the distribution
today is deemed to be similar), which is equivalent to
47.2% of the total Chinese aquaculture output or
27.4% of the total fisheries output.
• In 1999, carp were valued at CNY74.39 billion at the
important place in the freshwater aquaculture in
China. In 1999, it represented approximately 4% of
the freshwater culture output (or 561,794 tonnes)
and 3.61% of the total value (CNY3.61 billion). The
production of tilapia is expected to increase further.
Reservoirs
71%
Lakes
Rivers/canals
Rice paddy
Other
Source: FAO: Aquaculture development in China 2001
price of that year, representing 49.8% of the total
value of China’s freshwater culture output, or 29.4%
of its total fisheries output value.
• Apart from the carp family, tilapia also occupies an
3%
Freshwater culture output by species
1%
9%
1%
1%
1%
1%
3%
33%
4%
1%
9%
14%
22%
Source: FAO: Aquaculture development in China 2001
Silver carp & Bighead carp
Grass carp
Common carp
Crucian carp
Black carp
Tilapia
Chinese bream
Eel
Chinese mitten handed crab
Mandarin fish
Macrobrachium rosenbergii
Soft shelled turtle
Others
19
Glitnir Seafood Industry Report - China
2) Seafood Processing in China
Supply of Raw
Materials
Catch / Culture
Processing
Primary / Secondary
Distribution
Trading /
Import & Export
Retail
Consumers / Marketing
& Sales
20
Glitnir Seafood Industry Report - China
Development of Seafood Processing in China
• Traditionally, most aquatic products sold in the
2002 Major Freshwater fish Products Processed
(tonnes & percentage of total processed)
Chinese domestic market are fresh. In 1999, total
processed aquatic products amounted to 6.2 million
tonnes, accounting for only 15.1% of total aquatic
production.
1296000;
21%
Dried
• In recent years, however, seafood processing industry
in China has seen significant growth.
• The Chinese Ministry of Agriculture reported that in
2004 the total number of aquatic processing facilities
in China was 8,745, an increased from 8,287 in 2003.
• The total processing capacity reached 14.2 million
tonnes, representing a 9% increase from the previous
year. In 2004, approximately 10.3 million tonnes
were actually processed, increased by 13.2% from
2003.
Frozen
3258000;
53%
707000; 11%
Smoked
Canned
93000; 1%
632000; 10%
21000; 0%
Surimi
Products
Fish Meal
235000; 4%
Source: FAO - Aquaculture
development in China 2003
Others
Marine Aquatic Products Processing
(‘000 tonnes)
12.000
10.000
• The majority of the processed aquatic products comes
from seawater; freshwater products accounted for a
little less than 8% of the total processed quantity in
2004.
• Most of the processing facilities are located in the
Chinese costal regions, mainly in Shandong, Zhejiang,
Liaoning, Fujian and Guangdong provinces.
Processing
Capacity
(thousand
tonnes/per
year)
8.000
6.000
4.000
Total Output
of
Processed
Product
(thousand
tonnes)
2.000
0
1995
1996
Source: China National Bureau of Statistics
1997
1998
1999
21
Glitnir Seafood Industry Report - China
Outsource Seafood Processing to China
• As seafood processing is a labour-concentrated industry, the lower labour cost in China attracts a large amount of
foreign investment into this sector. Often, tax incentives provided by the Chinese government also play a big role.
The hourly pay of Chinese factory labour is estimated at $0.5 (RaboBank estimate).
• Shandong province receives the largest portion of foreign investment in seafood processing, the majority of which
comes from Japan and Korea. Fujian province, ranked the second, receives foreign funds from a wider range of
regions, including Taiwan, Hong Kong, Japan, Korea, the U.S., Argentina and Denmark.
About Seafood Processing in China
Local Supply of Seawater Raw material for Processing
Currently, Homey Group, located in Shandong, is the largest
aquatic processing company in China, with total sales of
US$230 million in 2004. The joint venture between Shanfu
Group and Japan Nippon Suisan is building its annual capacity
toward 40,000 tonnes in 2007, with the aim of becoming one of
the largest processing companies by then.
(‘000 tonnes, 1999)
Hainan
Guangxi
Guangdong
(RaboBank – China’s aquaculture industry 2005)
Shandong
Major U.S. fisheries, including Trident, Pacific Seafood, Premier
Pacific Seafood and many more, outsource processing to China.
Seafood products processed there include Salmon, Dungeness
crab, Alaskan Pollock.
Fujian
Zhejiang
Jiangsu
(Bloomberg News – July 19, 2005)
Agreement Signed between Chinese and Icelandic companies
on construction of a 150,000-ton storing house for frozen
seafood at the city of Qingdao in East China's Shandong
Province.
Liaoning
Hebei
0
500
1000
1500
2000
2500
3000
(Xinhua New Agency – May 22, 2005)
Thousand tonnes
Fish
Shrimp, Prawns, Crabs
Source: China National Bureau of Statistics
Shell fish
Algae
Other
22
Glitnir Seafood Industry Report - China
3) Seafood Trade and Sales
Supply of Raw
Materials
Catch / Culture
Processing
Primary / Secondary
Distribution
Trading /
Import & Export
Retail
Consumers / Marketing
& Sales
23
Glitnir Seafood Industry Report - China
China, a leading exporter of aquatic products
• In recent years China’s imports and exports of seafood have seen a rapid development. The export value of aquatic
products is the highest in the export of agriculture products. The growth has also been driven by growing capability of the
fish processing industry.
• The export value of aquatic products mostly occur in provinces along the coast. Coast areas such as Shandong,
Guangdong, Liaoning, Zhejiang and Fujian makes up 92% of the total.
• The majority of China’s exports are processed seafood products, consisting of prepared, preserved or frozen product. The
leading export products are eel, processed or preserved shrimp and cuttlefish.
• Japan is the major export destination for Chinese aquatic product exports, taking over half of all China’s seafood export
over the recent years.
• Given the size of China’s seafood production and its efficient processing industry, China’s accession to the WTO has had an
impact on the world seafood market. Accession has allowed China to be subject to the ‘most favoured nation’ tariffs, which
applies only to WTO members. This has assisted increases in seafood export from China to other WTO members, raising
supply in world markets.
Exports of Aquatic Products from China by Destination
Exports of Aquatic Products by Main Category
(US$ billion)
(US$ billion)
2,5
2,0
1,4
2,24
2,03
2,20
2,03
1,2
1,75
1
1,5
1,10
Source: SNF-report nb. 20/05
0,8
1,0
1,0
0,5
0,8
0,4 0,4
0,5
0,6 0,6
0,4
0,2
0,2
0,4
0,3
0,2
0,6
0,8
0,7
Japan
Source: SNF-report nb. 20/05
2000
America
2001
2002
Korea
0,82
0,62
0,45
0,4
0,2
0,0
1999
0,54
1,16
2003
Hong Kong
0
Fish, frozen
Molluscs and
other
Source: USDF GAIN Report, 2005
Crustaceans
Prepared or
packaged fish
and caviar
Prepared or
packaged
crustaceans and
mollusks
Fish, fillet
24
Glitnir Seafood Industry Report - China
Increasing Demand for Seafood in China
• China was the world’s eighth largest importer of aquatic products in 2003, with an import value of $2.5 bn.
• China’s two main imports were cod (mainly from Russia) and Fish meal (mainly from Peru).
• The seafood trade surplus was $3 billion for 2003 with imports valued at about $2.5 billion and exports at $5.5 billion.
• Much of the imports are destined for re-export following processing in China. Beside the re-export, an increasing share of
imports is destined for the domestic market, as the emerging upper class is creating demand for imported seafood.
• China has reduced its tariffs on seafood products since joining the WTO in 2001.
• China also influences the demand side of the world seafood market. Lower tariff barriers have reduced import costs and
resulted in greater seafood imports by China.
Import of Aquatic Products into China by Origin
Import of Aquatic Products into China by Main Category
(US$ billion)
(US$ billion)
0,8
1,4
0,7
0,7
0,7
0,6
1,20
1,2
1
0,5
0,5
0,4
0,4
0,3
0,63
0,3
0,3
0,2
0,8
0,4
0,4
0,2
0,2
0,1
0,1
0,1
0,6
0,3
0,1
0,4
0,2
0,2
0,2
0,1
0,1
0,1
0,2
0,26
0,29
Molluscs and
other
Crustaceans
0,11
0
0,0
1999
2000
Russia
Source: SNF-report nb. 20/05
2001
Peru
2002
America
2003
Other
Fish Meal
Fish, frozen
Japan
Source: USDA GAIN Report, 2005
25
Glitnir Seafood Industry Report - China
China’s Domestic Food Market on the Rise
2000-2004 Market Structure
2004 Market Structure
(US$ billion)
Foodservice
Food Retail
13%
Food Wholesale
100
93
74
80
Foodservic e
44%
Food Retail
91
74
65
60
43
40
Food
Wholesale
43%
28
19
15
20
0
Source: National Bureau of Statistics of PRC
Note: 100% = USD 212bn
2000
2002
2004
Source: National Bureau of Statistics of PRC
• All the three sectors of the food market have experienced a significant growth in recent years and we believe that this
development will continue as purchasing power increases. Seafood consumption is expected to increase substantially in
coming years. Therefore we expect that the position of seafood in the food market will be strong in the future.
• Food retail is on the rise due to consumer’s increasing willingness to spend on foods as a result of growing concerns over
food safety and health.
• With urbanisation and marketisation, lifestyles become increasingly fast-paced resulting in growing convenience food and
foodservice markets.
• Rapid growth in food wholesale sector could be attributed to the sudden rise of large-scale, national supermarket and
hypermarket chains in food retail as well as the increasing preference of consumers to buy in bulk (facilitated by the rise in
car ownership).
• Increased purchasing power in recent years has contributed to fast growth in the foodservice sector, including the seafood
sector.
26
Glitnir Seafood Industry Report - China
4) China Seafood Consumption
Supply of Raw
Materials
Catch / Culture
Processing
Primary / Secondary
Distribution
Trading /
Import & Export
Retail
Consumers / Marketing
& Sales
27
Glitnir Seafood Industry Report - China
High Consumption of Seafood
• Seafood consumption in China has increased at a high rate from 1990-1998.
• Asia and the Pacific region has countries with the highest per capita consumption of fish.
• Seafood consumption in China was 25.4 kg per capita in 2004.
• Seafood consumption increased heavily from 1990 – 1998 but has remained relatively stable since then.
30
11.5
11.6
13.2
15.5
18.0
20.7
22.6
24.0
Per capita / kg / year
25
1,0
0,7
0,8
20
0,7
15
10
5
0
0,8
0,7
2,2
0,8
2,0
2,1
2,1
4,5
4,5
0,8
2,6
3,5
5,5
6,1
5,1
2,7
3,1
4,4
25.4
25.9
25.8
25.5
25.5
25.4
1,2
1,2
1,1
1,1
1,1
1,1
1,1
5,9
6,0
6,2
6,3
6,2
6,2
6,2
2,0
1,9
2,1
1,7
1,7
1,7
1,7
10,3
10,6
10,8
10,9
10,8
10,8
10,7
2,6
6,9
7,8
9,8
8,9
2,5
2,7
3,1
3,0
2,7
2,8
2,7
2,7
2,7
2,2
1,1
1,2
1,3
1,4
1,8
1,1
1,3
1,6
1,8
2,1
2,3
2,7
2,7
3,0
3,0
3,0
3,0
3,0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
0,9
1,1
Crustaceans
Demersal fish
Total
2,6
2,4
2,3
5,5
5,3
25.2
Freshwater and diadromous fish
Marine fish, other
Molluscs
Other
Source: FAO, FAOSTAT, Rabobank
28
Glitnir Seafood Industry Report - China
Increased protein consumption
• Followed by high growth in recent years protein consumption has increased substantially.
• Seafood’s average historical share in consumption of red meat, poultry and seafood is 33%. The peak was in
1996 when it reached 37%. The share in 2004 was 31%.
• The average share of meat and poultry is 55% and 12%, respectively. Over this period the share of poultry has
steadily increased from 9% to 14%, while meat has lost a share of 4%.
37.4
39.6
43.8
49.0
54.7
59.5
61.3
67.9
72.1
73.4
76.0
76.9
78.3
80.3
25,8
25,9
25,7
10,3
10,5
10,9
82.3
Total
80
Per capita / kg / year
70
60
25,1
20,8
22,6
18,0
15,4
40
11,5
3,3
11,6
4,0
13,2
4,5
5,5
6,1
7,3
11,1
9,0
9,8
10,6
38,2
39,6
40,7
42,1
45,9
38,0
43,9
35,6
1997
1998
1999
2000
2001
2002
2003
2004
8,3
7,3
20
10
25,3
24,0
50
30
25,4
25,5
26,1
28,1
31,9
31,4
24,0
30,6
22,6
1990
1991
1992
1993
1994
1995
1996
0
Red Meat
Poultry
Seafood
Source: FAO, FAOSTAT
29
Glitnir Seafood Industry Report - China
Regional Trends in Consumption
• There is significant difference in seafood consumption between rural and urban areas in China.
– In 2002, seafood accounted for 4.4% of total food consumption in rural areas while it accounted for 13.2% in urban
areas.
• Consumption is higher in coastal provinces and in provinces with high level of disposable income.
– The top 5 provinces that had the most expenditure on seafood products in 2004 were: Fujian, Shanghai, Zhejiang,
Hainan and Guangdong.
• More expensive marine fish is consumed by the affluent population in coastal cities of China, while freshwater fish
is consumed throughout China.
Source: Rabobank, GAIN, Agri-Food Trade Service
2004 Top Ten Aquatic Product Expenditure Per Capita & Disposable Income
(US$ billion)
20000
500
15000
400
300
10000
200
5000
100
l
na
at
io
N
Be
ijin
g
Gu
an
gx
i
Lia
on
in
g
jin
Aquatic Product Expenditure (in CNY)
Ji
an
gs
u
an
Ti
Gu
an
gd
on
g
H
ai
na
n
Zh
ej
ia
ng
0
Sh
an
gh
ai
0
Income CNY per capita per annum
25000
600
Fu
jia
n
Expenditure CNY per capita per annum
700
Disposable Income (in CNY)
Source: USDF Gain Report 2005
30
Glitnir Seafood Industry Report - China
Chinese Consumers Prefer the Fresh and Wild Captured
• The Chinese consumers typically prefer live seafood product to chilled or
frozen, and wild caught to farmed.
• However, ordinary Chinese consumers are price sensitive when buying
seafood products.
• Farmed freshwater species such as shrimps, tilapia and carps are mainly
consumed at home. Their appeals to the Chinese consumers are
freshness and economic price.
• Imported high quality and therefore more expensive seafood such as
salmon and crab are mainly absorbed by the food service sector.
• Consumers in China often prefer smaller fish, i.e. 200-500g.
• Wet markets, where seafood is sold fresh or alive, are popular among
the older generations. However, the younger and more affluent city
dwellers tend to go to supermarkets nowadays for their food supply.
Some of the larger modern supermarkets/hypermarkets are furnished
with columns of water tanks to accommodate live seafood for sale.
Source: GAIN, Agri-Food Trade Service
• Products like fish heads and bellies usually discarded elsewhere, are
popular in China.
31
Glitnir Seafood Industry Report - China
Seafood Consumption: Strong Fundamentals
• We expect a strong seafood consumption growth and
a strong demand for high quality seafood. Main
reasons for that are:
Forecast of Seafood Consumption Trend in China and the World
40
– According to FAO seafood consumption in China
– The higher consumption of seafood in urban
areas, compared to rural areas, indicates that
the increased urbanization will lead to increased
consumption of seafood.
– Dramatic rise is expected in China’s middle class
in next 5-10 years. In 2005 the middle class
accounted for 90 million inhabitants but is
projected to account for 650 million in 2015.
Therefore, increased purchasing power is likely
to result in higher seafood consumption.
Per capita / kg / year
is projected to be 35.9 kg/year per capita in
2020, an increase of 41% compared to the 2004
consumption.
36
35
30
20
15
10
25
24
25
16
16
17
1997
2004
2020e
13
12
8
6
5
0
1973
1985
China
World
– Chinese consumers are sensitive to product
quality regardless of low disposable income,
compared to developed countries. Demand for
high quality seafood is therefore expected to
increase as purchasing power increases.
Source: FAO, Rabobank, Dep. of agriculture, fisheries and forestry (Australia), Goldman Sachs
32
Glitnir Seafood Industry Report - China
5) Investment Opportunity in Focus:
Culture & Processing of Tilapia in China
33
Glitnir Seafood Industry Report - China
Important Aquaculture Product of the 21st Century
Tilapia is one of the most widely cultured species in the world. FAO reports production in 85 countries, including China.
• Wild catch is being replaced by aquaculture. Tilapia is most often farmed in:
–
–
–
–
–
Ponds
Cages
Raceways, round tanks, re-circulating systems
Ranching (lake releases)
Freshwater, Brackish water, estuarine and marine
• Tilapia grows well in most production systems.
– Polyculture with shrimp, catfish, and carp
– Could be herbivorous and/or omnivorous
– Good growth in fertilized ponds
– Many by products can be used in prepared feeds
– Simple hatchery technology
– Disease resistant
– Grow well at high densities
• There is an established and growing market demand for tilapia.
– Accepted in many national dishes
– Popular in many forms (live, whole, fillets, fresh, frozen, smoked, surimi)
• Tilapia will surpass other cultured species in importance.
– Production constraints being reduced, and costs decreasing
– Markets are still expanding
– Market price is steady
– Ecologically sustainable and environment friendly
– Consumption not restricted by religious observances
– Mild flavour preferred by many consumers
– Carp: markets are limited
– Salmonids and shrimps need high levels of fish meal, limited ingredients for diets
– Most other species need higher water quality, competition for sites
Source: Kevin Fitzsimmons, Ph.D. Tilapia Aquaculture in the 21st Century, University of Arizona
34
Glitnir Seafood Industry Report - China
Soaring Tilapia Market In the U.S.
• The U.S. market is estimated to import approx.
1999 - 2005 U.S. Total Tilapia Import by Product Form
180,000 tonnes of tilapia in 2006, compared to only
40,000 tonnes in 2000.
• Since 2001, tilapia consumption has doubled in the U.S.
(‘000 tonnes)
Thousand tonnes
160
140
120
The species is now number 6 among the top ten
seafood consumed by U.S. consumers.
100
80
• The EU market is still limited, but imports are expected
60
to increase, especially in the light of limited wild
whitefish supplies to the market.
40
20
• Production of tilapia worldwide is likely to expand
0
1999
2000
2001
2002
2003
Whole frozen
2004
2005
Jan-Jul Jan-Jul
2005
2006
Frozen fillets
Fresh fillets
US Fresh Tilapia Fillets Import by Country of Origin
US Frozen Tilapia Fillets Import by Country of Origin
(‘000 tonnes)
(‘000 tonnes)
Thousand tonnes
Thousand tonnes
robustly in coming years, as a result of strong
investment in this sector.
25
20
60
50
40
15
30
10
20
Taiwan
China
5
Costa Rica
Honduras
Ecuador
0
1999
2000
2001
2002
2003
2004
2005
Jan-Jul
2005
Jan - Jul
2006
Ecuador
Thailand
10
Taiwan
Indonesia
China
0
1999
2000
2001
2002
2003
2004
2005
Jan-Jul
2005
Jan - Jul
2006
Source: Fish INFOnetwork Market Report on Tilapia
35
Glitnir Seafood Industry Report - China
Strong Growth in the Chinese Tilapia Industry
• China continues to be the world’s main producer of
tilapia. Total production in 2006 is expected to
reach 1.07 million tonnes, representing a 10%
growth from 2005.
• The value of tilapia production in China is thus
exceeding $2,000 million.
• More than 80% of the tilapia is consumed in the
country. Main market for Chinese tilapia is the U.S.,
which takes over 70% of the exports.
• The impressive increase in tilapia is caused by
farmers switching from carp and shrimp to tilapia
production. Some 120 plants are processing, of
which 30 are specialised in this fish alone. The
average retail price of tilapia in China is $1.60/kg,
while the unit value of the exported fish is around
$2.16/kg.
1999 – 2006 Tilapia Production in China
(‘000 tonnes)
1200
1070
978
1000
897
806
800
629
600
672
707
562
400
200
0
1999
2000
2001
2002
2003
2004
2005
2006e
Source: USDA Foreign Agricultural Service China’s Tilapia Production Situation 2006
Source: Fish INFOnetwork Market Report on Tilapia
36
Glitnir Seafood Industry Report - China
Tilapia Farming is Mainly Concentrated in Guangdong
Province Farming Area (ha)
Major Tilapia Producing Regions in China
Guangdong
Hainan
Guangxi
Fujian
Others
National total
Production volume (ton)
55,000
13,000
13,000(e)
7,000(e)
22,000
110,000(e)
500,000
145,000
140,000(e)
80,000(e)
175,000(e)
1,040,000
Fujian
Guangdong
Guangxi
Hainan
Chinese Tilapia Production Distribution in 2005
6%
• Tilapia is farmed primarily in China’s warm southern provinces. In 2005
3%
3%
close to 50% of the total production is concentrated in Guangdong
Province.
• Other major provinces include Hainan, Guangxi and Fujian. There is also
10%
48%
scattered production in other provinces.
15%
• Production growth is driven by strong domestic demand as well. In
China – particularly the southern coastal provinces – tilapia is popular
because its superior taste and quality compared to other cultured fish
such as carp. Tilapia is also more affordable, compared with other highvalued, cultured species. An industry survey showed that 93.1% of
consumers favour tilapia in Guangdong, 76.3% in Zhejiang and 65.2% in
Shandong. Tilapia is also increasingly popular in large cities such as
Beijing and Shanghai.
15%
Others
Yunan
Shandong
Fujian
Hainan
Guangxi
Guangdong
Source: USDA Foreign Agricultural Service China’s Tilapia Production Situation 2006
37
Glitnir Seafood Industry Report - China
Common Business Model of Tilapia Farming in China
Importer /
Distributor
Processing Company /
Trader
Tilapia Farm
Feeds Factory
Supply feed and technical
support
Tilapia Farm
Supply breeds and
technological support
Sign contract and sell tilapia
quality and safe control
Sign contract and purchase
tilapia
Tilapia Farm
Breeding Farm
Tilapia Farm
Contract land, pond, etc. from villages
38
Glitnir Seafood Industry Report - China
The U.S. Remains Chinese Tilapia’s Largest Customer
China’s Export Mix From 2002 – 2005
• Tilapia fillet and frozen whole are the major
• Increasing tilapia exports from China bring more
opportunities for the tilapia processing industry, as
nearly all exported tilapia products are processed.
(tonnes)
Thousand tonnes
products, accounting for almost 100% of total
exported volume.
• This is mainly because of China’s relatively low cost
100
80
60
40
20
of labour and the industry’s effort to deepen
processing to add value to exported products.
0
2002
• Fillet exports are likely to increase further while the
portion of frozen whole fish is expected to continue
to diminish.
for China, which on average absorbs 77% of tilapia
fillet and 73% of frozen whole fish.
• Industry insiders believe that more attention will be
paid to diversifying its export market, in particular
in Europe and Middle East.
2003
2004
2005
Tilapia fillet
China’s Tilapia Fillet Exports by Destination
(tonnes)
Thousand tonnes
• United States remains the largest export destination
Frozen w hole tilapia
60
50
40
30
Hong Kong
20
Canada
10
Germany
Puerto Rico
0
2002
2003
2004
2005
Mexico
United States
Source: USDA Foreign Agricultural Service China’s Tilapia Production Situation 2006
Source: USDA Foreign Agricultural Service China’s Tilapia Production Situation 2006
39
Glitnir Seafood Industry Report - China
Opportunities in Tilapia Culture & Processing
• Tilapia is well suited for large-scale and poly-culture farming. The unit cost of production is expected to
decrease further as a result of ongoing consolidation among Chinese tilapia producers. This presents
international seafood companies with the opportunity for vertical integration, in order to ensure steady supply
and constant quality.
• Increasing demand for tilapia, especially tilapia fillet, in the world market encourages further growth of tilapia
exports from China. This gives rise to opportunities in the tilapia processing sector. In addition, the relatively
low cost of labour in China constitutes a major advantages in the labour intensive processing business.
40
Glitnir Seafood Industry Report - China
Glitnir Seafood Stockwatch – Europe
in cooperation with
Europe
Company
Country
M.Cap
m.USD
Current
share price
Change (%) in
share price YTD
12m EV/EBITDA
12M P/E
Marine Harvest
Cermaq
Norway
Norway
3,993
1,855
6.91
120.50
18.1%
31.0%
65
6.7
85
10.2
Austevoll Seafood
Norway
1,690
57.00
32.6%
9.8
14.0
Leröy Seafood Group
Norway
1,221
137.00
21.2%
8.0
9.7
Biomar Holding
Pescanova
Alfesca
Icelandic Group
Aker Seafoods
Denmark
Spain
Iceland
Iceland
Norway
662
546
425
301
289
333.00
31.22
4.80
6.85
35.70
34.3%
15.4%
-3.0%
-6.2%
15.9%
12.9
7.5
8.5
11.8
13.0
15.2
18.0
13.8
18.1
28.0
Nirefs (Nireus)
Greece
233
4.22
7.1%
10.6
18.9
Europe Index
121.8
Index, %change YTD
21.8%
Index, %change from March 23
-2.0%
Index: January 1, 2007 = 100
Sources: Bloomberg, Individual Stock Exchanges, Company Annual and Quarterly Reports Revenues, Glitnir. Date as of April 13, 2007, "nmf" = not meaningful, "n/a" = not available.
Disclaimer: The companies on the list have been selected by Glitnir. Glitnir banki hf. hereby disclaims liability and does not accept any responsibility for such information or is giving
any advice in relation to investments in those companies.
41
Glitnir Seafood Industry Report - China
Glitnir Seafood Stockwatch – Asia
in cooperation with
Asia
Country
M.Cap
m.USD
Current
share price
Change (%) in
share price YTD
12m EV/EBITDA
12M P/E
Nippon Suisan Kaisha
China Fishery Group
Japan
China
1,760
1,216
757.00
4.72
8.3%
48.4%
12.0
16.6
38.3
24.6
Maruha Group
Japan
721
239.00
-0.4%
17.6
18.5
Thai Union Frozen Foods Group
Thailand
600
22.00
-12.0%
9.1
9.9
Pacific Andes
Nichiro Corporation
Sea Horse
Kyokuyo Co
Uoriki Co.
China
Japan
Thailand
Japan
Japan
344
292
286
231
173
2.24
212.00
3.30
252.00
1414.00
25.8%
-4.1%
-5.7%
0.0%
1.5%
8.0
Nmf
Nmf
11.6
12.1
6.5
n/a
Nmf
13.7
23.2
Japan
142
392.00
7.7%
nmf
17.6
Company
Chuo Gyorui Co.
Asia Index
112.7
Index, %change YTD
12.7%
Index, %change from March 23
0.2%
Index: January 1, 2007 = 100
Sources: Bloomberg, Individual Stock Exchanges, Company Annual and Quarterly Reports Revenues, Glitnir. Date as of April 13, 2007, "nmf" = not meaningful, "n/a" = not available.
Disclaimer: The companies on the list have been selected by Glitnir. Glitnir banki hf. hereby disclaims liability and does not accept any responsibility for such information or is giving
any advice in relation to investments in those companies.
42
Glitnir Seafood Industry Report - China
Glitnir Seafood Stockwatch – The Americas
in cooperation with
The Americas
Company
Country
M.Cap
m.USD
Current
share price
Change (%) in
share price YTD
12m EV/EBITDA
12M P/E
Connor Bros. Income Fund
Copeinca
Canada
Peru
536
402
11.86
60.00
13.0%
34.6%
9.2
8.1
10.3
16.5
Sociedad Pesquera Coloso
Chile
341
930.00
3.3%
11.9
11.4
Pesquera Iquique-Guanaye (Igemar)
Chile
271
40.00
59.4%
22.8
9.9
Invertec Pesquera (Invermar)
Pesquera Itata
Clearwater Seafoods Income Fund
Fishery Products International (FPI)
Omega Protein Corp.
Chile
Chile
Canada
Canada
US
269
264
228
183
114
616.00
230.00
4.91
14.98
6.99
30.7%
7.0%
-1.2%
97.4%
-9.6%
n/a
8.6
n/a
13.5
8.1
17.6
11.4
n/a
n/a
14.0
High Liner Foods
Canada
88
9.70
10.9%
15.7
29.4
The Americas Index
124.3
Index, %change YTD
24.3%
Index, %change from March 23
10.9%
Index: January 1, 2007 = 100
Sources: Bloomberg, Individual Stock Exchanges, Company Annual and Quarterly Reports Revenues, Glitnir. Date as of April 13, 2007, "nmf" = not meaningful, "n/a" = not available.
Disclaimer: The companies on the list have been selected by Glitnir. Glitnir banki hf. hereby disclaims liability and does not accept any responsibility for such information or is giving
any advice in relation to investments in those companies.
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Glitnir Seafood Industry Report - China
Introduction to Glitnir
• Home markets are Iceland and Norway
Glitnir’s total loan portfolio $24.7 billion*
• Focus on niche segments worldwide
Seafood Industry, Sustainable Energy & Shipping - Offshore Supply
Vessels
• Strong focus on the seafood industry since 1904
Individuals
21%
Services
25%
Other
5%
• Today 9% of the bank’s loan portfolio is in the seafood industry
Seafood
9%
• Credit ratings:
Aa3 / P-1 (Moody’s), A / F1 (Fitch) and A-/A-2 (Standard and Poor’s)
Real Estate
29%
Our services include:
Credit facilities
–
–
–
–
–
Term loan facilities
Working capital facilities
Syndicated loans
Vessel financing
Bridge loans
Commerce
4%
Industry &
contractors
7%
Mergers & acquisitions
–
–
–
–
–
–
–
Financial advisory
Acquisitions
Disposals
Minority investments
MBOs / LBOs / MBIs
Private Placements
Strategic reviews
Capital Markets
–
–
–
–
Bond issuances
FX dealings
Forward contracts
Options
Other services
–
–
Risk management advisory
Equity participation
* as of December 31, 2006
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Glitnir Seafood Industry Report - China
Glitnir’s International Platform
United Kingdom
Glitnir Luxembourg
Copenhagen Branch
• Corporate Banking
• Corporate Finance
• Centre of Excellence
Glitni China
• Corporate Banking
• Centre of Excellence
• Leveraged Finance
• Corporate Finance
Representative
Office Shanghai
•
Food industry
• Structured Finance
• Loan Syndication
BNbank
• Corporate and retail mortgage
Glitnir Bank
• Full service bank, trad. indust.
• Centre of Excellence
•
Shipping/ Offshore supply vessels
• Subsidiaries:
•
Glitnir Factoring
Glitnir Securities
Union Group
Norsk Privatøkonomi ASA
The U.S.
Glitnir Capital Corp.
• New York office: open 2007
• Corporate Credit & Corporate
Finance
• Support of Glitnir clients in the
U.S. market
Glitnir Capital Corporation,
222 East 41st Street, New
York NY 10017, U.S.
• Opened
Real Estate
December 2006
• Private Banking
Frederiksgade 19, Copenhagen
534 Rue de Neudorf, Lux.
Norway
BNbank:
Munkegata 21, Trondheim
Dronningens gate 40, Oslo
Glitnir Bank:
St. Olavsplass 1, Alesund
Glitnir Securities:
Haakon VII’s gate 10, Oslo
China
Denmark
London Branch
•
41 Lothbury, London City
Luxembourg
Iceland
Headquarters
• Corporate Banking
• Centres of Excellence
Kirkjusandur, Reykjavik
•
Global seafood
•
Sustainable energy
•
International core customers
• Structured Finance
• Capital Markets
• Corporate Finance
Finland
FIM Group
• Funds
• Structured Products
• Asset Management
• Brokerage
• Investment Banking
Pohjoisesplanadi 33 A,, 00100 Helsinki, Finland
Level 8, CitiGroup Tower
33, Hua Yuan Shai Qiao Road
Pudong, Shanghai
Sweden
Canada
Glitnir AB
Glitnir Canada
• Equity
Representative Office
Halifax
Trading &
Brokerage
• Opened April 2006
1718 Argyle Street, Halifax
Hovslagargatan, Stockholm
Russia, Moscow
FIM Financial Services
• Funds
• Structured Products
• Asset Management
• Brokerage
• Investment Banking
Paveletskaya sq. 2, bldg 3, 115054 Moscow, Russia
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Glitnir Seafood Industry Report - China
Glitnir Seafood Team
Iceland
Magnús Bjarnason
Executive Vice President
International Banking
Direct line: +354 440 4523
Mobile: +354 844 4523
[email protected]
Bjarni Hjaltason
Global Seafood Director
Corporate Banking
Direct line: +354 440 4788
Mobile: +354 844 4788
[email protected]
Helgi Anton Eiríksson
Executive Vice President
Investment Banking
Direct line: +354 440 4518
Mobile: +354 844 4518
[email protected]
Kristján Th. Davídsson
Managing Director
Corporate Banking Iceland
Direct line: +354 440 4517
Mobile: +354 844 4517
[email protected]
Gudmundur Ragnarsson
Senior Manager
Corporate Banking Iceland
Direct line: +354 440 4547
Mobile: +354 844 4547
[email protected]
Hjálmur Nordal
Director
Corporate Banking Iceland
Direct line: +354 - 440 4522
Mobile: +354 - 844 4522
[email protected]
Valdimar Halldórsson
Alexander Richter
Analyst
Direct line: +354 440 4638
Mobile: +354 844 4638
[email protected]
Analyst
Direct line: +354 440 4766
Mobile: +354 844 4766
[email protected]
Guðmundur Hjaltason
Executive Vice President
Corporate Banking
Direct line: +354 440 4515
Mobile: +354 844 4515
[email protected]
Ragnar Gudjónsson
Director
Corporate Banking Iceland
Direct line: +354 440 4550
Mobile: +354 844 4550
[email protected]
Ásmundur Gíslason
Analyst l Seafood
Direct line: +354 440 4768
Mobile: +354 844 4768
[email protected]
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Glitnir Seafood Industry Report - China
Glitnir Seafood – Regional Teams
North America
Jonathan Logan
Managing Director
North America
Mobile: +1 (203) 979 5275
[email protected]
Joe Fillmore
Director
Canada
Direct: +1 (902) 429 3114
Mobile: +1 (902) 237 2114
[email protected]
Ignacio Kleiman
Head of Corporate Finance
International Banking
Direct: +1 (212) 922 0228
Mobile: +1 917 578 349
[email protected]
Michael Richard
Director
United States
Mobile: +1 (508) 878 0171
[email protected]
Natasha Sideris
Associate
Canada
Direct line: +1 (902) 429 3115
Mobile: +1 (902) 441 9190
[email protected]
Asia
Jiang Zhu
Director
Glitnir Rep. Office China
Direct: +86 21 6101 0190
Mobile: +86 139 0161 1875
[email protected]
Hafliði Sævarsson
Analyst
Glitnir Rep. Office China
Direct: +86 21 6101 0191
Mobile: +86 138 1807 2218
[email protected]
Bjartur Logi Ye Shen
Analyst
International Banking
Direct: +354 440 4560
Mobile: +354 844 4560
[email protected]
Eyþór Eyjólfsson
Director – Japan and Ocenia
International Banking
Direct: +354 440 4738
Mobile: +354 844 4738
[email protected]
Grace Liu
Executive Assistant
Glitnir Rep. Office China
Direct: +86 21 6101 0191
Mobile: +86 136 6166 1660
[email protected]
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Glitnir Seafood Industry Report - China
Glitnir Seafood – Regional Teams
Europe/Nordic
Kjartan Ólafsson
Director
Glitnir Securities - Norway
Direct: +47 2287 8613
Mobile: +47 9592 6015
[email protected]
Kristján Hjaltason
Director
Glitnir Bank - Denmark
Direct: +45 - 8833 5081
Mobile: +45 - 5199 5081
[email protected]
Henning Lund
Analyst
Glitnir Securities - Norway
Direct: +47 2201 6347
Mobile: +47 9525 5839
[email protected]
Ola Övrelid
Bank Executive
Glitnir Bank - Norway
Direct: +47 7010 2026
Mobile: +47 9133 6733
[email protected]
Glenn Kristiansen
Director
Glitnir Securities - Norway
Direct: +47 - 2201 6392
Mobile: +47 – 9117 9105
[email protected]
Kurt Kvalsvik
Director
Glitnir Bank - Norway
Direct: +47 7010 2015
Mobile: +47 – 9480 9016
[email protected]
South America
Jón Garðar Guðmundsson
Managing Director
Emerging Markets
Direct: +354 440 4516
Mobile: +354 844 4516
[email protected]
Sverrir Ingi Ármannsson
Analyst
International Banking
Direct: +354 440 4528
Mobile: +354 844 4528
[email protected]
Hjörtur Thor Steindórsson
Credit Manager
International Corporate Credit
Direct: +354 440 4503
Mobile: +354 844 4503
[email protected]
Anna Rósa Róbertsdóttir
Analyst
Corporate Banking
Direct: +354 440 4554
Mobile: +354 844 4554
[email protected]
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Glitnir Seafood Industry Report - China
Glitnir Seafood Team – Other Members
Timothy H. Spanos
Executive Director
International Corporate Credit
Direct line: +354 440 4777
Mobile: +354 844 4777
[email protected]
Tim Owen
Executive Director
Head of Corporate Finance, UK
Direct line: +44(0) 20 7710 9130
Mobile: +44(0) 7843 512 092
[email protected]
Eiríkur R. Eiríksson
Senior Manager
Corporate Risk Advisory
Direct line: +354 440 4565
Mobile: +354 844 4565
[email protected]
Gísli Sigurgeirsson
Senior Manager
International Corporate Credit
Direct line: +354 440 4765
Mobile: +354 844 4765
[email protected]
Atli Rafn Björnsson
Director
Corporate Finance
Direct line: +354 440 4739
Mobile: +354 844 4739
[email protected]
Ingi Rafnar Júlíusson
Executive Director
Capital Markets
Direct line: +354 440 4459
Mobile: +354 844 4459
[email protected]
Snorri Arnar Vidarsson
Credit Officer
Corporate Banking Iceland
Direct line: +354 440 4771
Mobile: +354 844 4771
[email protected]
Davíð Stefánsson
Analyst
Corporate Finance, UK
Direct line: +44(0) 20 7710 9136
Mobile: +44(0) 788 795 4877
[email protected]
Kyrre Dale
Credit Manager | Glitnir Bank
Seafood Credit, Norway
Direct line: +47 7011 2034
Mobile: +47 9137 6551
[email protected]
Rúnar Jónsson
FX Brokerage
Capital Markets
Direct line: +354 440 4489
Mobile: +354 844 4489
[email protected]
Stefán Eiríks Stefánsson
FX Brokerage
Capital Markets
Direct line: +354 440 4483
Mobile: +354 844 4483
[email protected]
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Glitnir Seafood Industry Report - China
Legal Disclaimer
All opinions and analyses represent the views of Glitnir at the time of writing and are subject to change without
notice. Glitnir and its employees cannot be held responsible for any trading conducted on the basis of the
information and views presented here. Glitnir may at any time have vested interests in individual companies, for
example as an investor, creditor or service provider, but its opinions and analyses are produced independently by
Glitnir Region Asia & Americas, based on publicly available information on the company in question.
This Seafood Industry Report is written by
Ásmundur Gíslason – Glitnir – Region Asia & Americas [email protected]
Bjartur Logi Ye Shen – Glitnir – Region Asia & Americas [email protected]
Valdimar Halldórsson – Glitnir – Research [email protected]
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Glitnir Seafood Industry Report - China
www.glitnirbank.com
Seafood Web Pages
www.glitnir.is/stockwatch
www.glitnir.is/seafood
51
www.glitnir.is/seafood