EXPORTS DROP:
South Korea has begun importing significant quantities of fry from China and Hong Kong, diminishing Taiwan’s market share to below 1 percent

• By Tsai Tsung-hsun and Kayleigh Madjar / Staff reporter, with staff writer

Eel production in Taiwan has slipped behind that of other East Asian nations over the past few years, leaving producers looking for alternatives to the formerly lucrative export market.

Once the regional leader in eel production, Taiwan’s release of fry into farming ponds has fallen far behind Japan, China and South Korea.

Taiwan leads off eel harvest season in East Asia, which typically runs from Nov. 1 to the end of February the following year.

Photo : Tsai Tsung-hsun, Taipei Times

To supply Japan for “unagi day” in midsummer, eel fry must be released before the middle of January, making Taiwan the best place to supply its neighbor during the high season.

However, Japanese producers have in recent years begun purchasing eel fry from Taiwan at high prices to supply their domestic market, driving down Taiwan’s eel exports and breeding industry.

As a result, the market share of Taiwanese eel in Japan and the amount of fry released into farming ponds has been falling rapidly.

Taiwan only accounted for 1.2 percent of eel fry released in East Asia, at 320kg, the Nihon Yoshoku Shimbun, a Japanese trade journal focusing on the eel industry, reported on April 7.

Japan led the industry at 49.3 percent (13,553kg), followed by China at 32.7 percent (9,000kg) and South Korea at 16.9 percent (4,639kg).

Owing to China’s recent success in the industry, South Korea has begun importing significant quantities of fry from China and Hong Kong to boost its numbers, making Taiwan’s market share likely to fall below 1 percent, the publication said.

Taiwan’s eel exports had already begun to slide before the COVID-19 pandemic. Exports fell each year between 2018 and last year, from 2,396 tonnes to 1,654 tonnes during the period.

July was the most productive month each year, ranging from 182 tonnes in 2020 to 410 tonnes in 2018.

The worst hit to fry rearing came over the past two years, from 8,143.8kg in 2020 to 4,430.49kg in 2021, and only 877.33kg last year.

This year, only 320kg has been released.

Eel farming in Taiwan is being depressed by high fry prices and dwindling exports, Taiwan Association of Eel and Shrimp Production Cooperatives chairman Tang Ching-tsung (唐慶宗) said.

As the risk is high, farmers are reducing their stock, making their exports less competitive and continuing the downward cycle, Tang said.

The way to correct the problem is to keep harvested fry in Taiwan to replenish domestic farming ponds in preparation for Japan’s “unagi day,” he said.

Farmer Kuo Hung-yu (郭紘瑜) said that he used to frequently send large eel orders to Japan, but now only sends one or two containers at lower prices.

Most eel producers are waiting to see what might happen, Kuo said, adding that his strategy is to stabilize revenue by actively pursuing domestic buyers before seeking more export opportunities.

Farmer Tang Hsin-yuan (唐昕遠), who is newer to the business, agreed that fry are expensive and exporting to Japan is not cost-effective.

He is only rearing enough this year to satisfy domestic demand and is converting idle ponds to more competitive species.

Tang said that if he stuck with only rearing eel, there is a good chance he would lose money despite the great effort required.