18 MARCH 2015 • WORLD AQUACULTURE • WWW.WAS.ORG general increase in consumption of aquatic products in recent years (Bai et al. 2013). This trend is attributed to concern for personal health; consumers now prefer to eat aquatic foods as alternatives to the meat of land animals because of the health benefits of consuming these aquatic products (Bai et al. 2001). As a result of the improved purchasing power of consumers, with a concomitant improved standard of living, the demand for high-value species, such as olive flounder and Korean rockfish, has also increased. Demand for shrimp and other seafood (e.g., sea cucumber) has likewise increased. Koreans enjoy seafood in various states such as fresh, chilled and frozen, while raw fish and derived products such as sashimi (Fig. 6) are in high demand and fetch premium prices in different parts of the country. A favorable business environment has encouraged expansion of seafood throughout the country. Due to a large number of working women, demand for precooked, preserved and ready-to-eat seafood products has also expanded, opening the door for multi-million dollar businesses at various levels. Furthermore, growing urbanization has generated concern among consumers about freshness, place of origin, taste, cost and safety of seafood. Domestic fish production will not be sufficient to meet the mounting demand. The Korea–U.S. Free Trade Agreement, implemented in 2012, has opened the door for further expansion of the seafood market in Korea. Because marine aquaculture products basically follow the same distribution systems as captured products, trends in marketing of capture and aquaculture products are the same. Several measures are being taken by the Korean government to ensure stable market prices for fishery products through the establishment of a “Price Stabilization Fund.” The fund is intended to cover ten items of fishery products, including dry seaweed, frozen squid and frozen hairtail fish. Fishery marketing systems have been improved through the expansion of market facilities and upgrading of the consignment system at landing sites and of the distribution capacity to areas with a large consumer population. Five direct-sale market facilities (Fig. 7) have been established in large urban areas to strengthen distribution and handling capacity. The improvement includes the reduction of distribution and handling steps and marketing margins, and the promotion of direct shipping to consumers by fishermen’s cooperatives. Consumer Trends, Preferences and Buying Patterns As previously mentioned, there has been an increase in demand for aquatic products including marine foods. Similarly, the demand for high-value species among marine products has been on the increase. This increase is due to increased purchasing power of consumers, concern for personal health, popular beliefs and other factors (Bai et al. 2013). For instance, many consumers go for raw fish, mainly of olive flounder, for the nutritional value of the product. In the same manner, many Koreans eat Japanese eel, one of the popular species, for the purported aphrodisiac properties of the species. Besides the preference for high-value species of fish, there has also been a trend towards selection of value-added products. To respond to the buying pattern of consumers, efforts are now made to establish a consumer-oriented supply of cultivated high-value marine products. Processing capacity is being developed to produce value-added products. Import-Export Aquatic products are consumed at various locations in the country with distinctions being hardly ever made between cultured and captured products. As most of the aquaculture farms are located in coastal areas due to their reliance on natural seawater, aquaculture products basically follow the same distribution systems as fishery products which are also available in these areas. Marketing and distribution of the products at landing ports take place through fishery co-operative auction markets and common fish markets which are always located at harbours. Distribution to consumption areas is made via wholesale markets, inland joint sale and direct-sale markets and retailers. The final consumers usually get their supplies from conventional markets, supermarkets, discount stores, department stores and seafood wholesale markets. Korea imports aquatic products from China, Russia, Vietnam, the USA, Japan, Norway, Thailand, Taiwan, Chile and Hong Kong for domestic consumption and re-export (Bai et al. 2013). China is the largest supplier followed by Russia and Vietnam. The distinction between imported and domestically cultured products is never made when reporting total export quantities and values. In 2012, Korea ranked ninth in the top ten of fish and fishery products importing countries (FAO 2014). The average annual growth of imports from 2002 to 2012 was 7.2 percent. In 2013, the value of fish and fishery product imports (US$ 3.49 billion) was nearly twice that of exports (US$ 1.96 billion) (KOSTAT 2014). Almost US$ 200 million was earned from exports to the USA. A trade deficit in fish and fishery products occurred for the first time in 2001 and the imbalance of trade has continued (Bai et al. 2013, FAO 2014). Korea exports processed aquatic products to Japan, the USA and Europe. Much of the secondary processing is done in China because of comparatively low labor costs (FAO 2005). Both imported and locally cultured products from Korea are shipped to China where FIGURE 7. Jagalchi fish market, Nampo, Busan.
RkJQdWJsaXNoZXIy MjExNDY=