Taiwan Frozen Squid Exports Fall 61% YoY in 2022 as Exports to China Plummet

Taiwanese exports of frozen squid and cuttlefish (HS Code 030743) totaled 38.9 thousand mt, down 61% compared to 2021's total of 98.7 thousand mt, according to Taiwan Trade Statistics. Meanwhile, exports of this product to China totaled 22.6 thousand mt, down 70% YoY from the 75.1 thousand mt recorded in 2021. This means that out of the 59.8 thousand mt drop in total exports during 2022, 52.5 thousand mt -or 88% of the total- corresponded to the decline in exports to China. In terms of export value, Taiwan's total exports of this product totaled USD 112 million, down 44% year-over-year (YoY). Exports to China totaled USD 54 million, down 59% YoY.

This comes on the back of China rejecting Taiwanese shipments of this product on the grounds that the exporters didn't comply with newly issued regulations. In fact, December 2022 reports mentioned that the trade restrictions escalated to a point that 99 out of 100 export applicants to China were rejected, according to Taiwan’s Council of Agriculture.

Source: Tridge

Indeed, preliminary data from Taiwan Customs for January 2023 showed that there were no exports of HS Code 030743 (Cuttlefish and squid, frozen, with or without shell) to China, compared to 286 mt in 2021 and 507 mt in 2022.

In terms of value, the potential loss of this market to Taiwan’s squid exporters, considering 2021’s export volume and 2022’s average export prices, is roughly USD 180 million.

Other large markets for Taiwanese frozen squid include the United States, the European Union, Vietnam, Japan, Canada and South Korea. It’s likely that Taiwan will seek to divert some of its exports to these countries during 2023. It’s worth noting that, in 2022, all of these locations provided a higher export price than China for this product, which could compensate for a potential decline in exported volume. For example, exports to Japan were sent at an average value of USD 4.03/kg, compared to China’s USD 2.39/kg.

In 2022, total Taiwanese exports of HS Code 03 products, which includes live, fresh or frozen fish and crustaceans, molluscs, and other aquatic invertebrates, to all countries totaled USD 1.57 billion, practically unchanged from 2021, as higher export prices offset the decline in exported volume. China’s share in Taiwanese exports of these products fell from 17% in 2021 to 10% in 2022, and is expected to decline further with the current trade restrictions. Other major seafood products affected by China’s bans (partial or total) include Pacific saury and frozen mackerel. The restrictions aren’t limited to seafood, however, as there are other products, such as citrus fruits, currently banned to be exported from Taiwan into China.