In the face of many obstacles – or perhaps because of them – Australian seafood suppliers are focusing their attention on the American market for a much larger share of their exports.
Australian seafood companies opted not to attend the annual International Boston Seafood Show last March, but the Australian government did send a representative.
“Fear of flying, the lobster season being low, and shrimp being at an all-time low price were key factors in Australian seafood companies not coming this year,” said Nicole Fischer, former business development manager with the Australian Trade Commission’s New York office.
Fischer’s mission at the seafood show was to arrange meetings with Australian suppliers and the U.S. buyers she feels would be a good match. Companies Down Under see more future opportunity in the U.S., not less, she said.
“With the downturn in the Asian economy, many Australian suppliers foresee the U.S. becoming a bigger market,” she said.
Australia ranks 23rd as a U.S. seafood supplier with exports at $87 million, mainly in rock lobster, abalone and tuna.
“We’re really trying to push seafood because we believe in great opportunities,” said Fischer. “There’s a lot more product that could come in, such as spanner crab, yabby, Moreton Bay bug (lobster), barramundi – unique Australian products.”
One Boston exhibitor, Bill Atwood, president of Atwood Lobster Co. in Spruce Head, doesn’t believe Australia can supply enough of its “different” species to influence Maine seafood suppliers.
“I can’t see their volumes being high enough,” said Atwood. “Australian products cost twice as much due to the importation. Canada is our biggest competitor. They can buy Maine lobster, process them and sell them back to us cheaper than we can.”
Because Australian products are so expensive, they are, for the time being, exclusive to the food-service industry that can afford the high prices. Fischer doesn’t see this as a problem.
Australia “believes the American consumer would pay a premium price,” she said. “The top end of the market is here in the U.S. In places like New York and Los Angeles, food service is huge. We have very high-end restaurants willing to pay high prices for something new and unique.”
In spite of the U.S. economic slump, the National Restaurant Association is projecting restaurant sales to increase 3.9 percent this year over 2001. With seafood making up 18 percent of all entrees, according to Fischer, this bodes well for seafood suppliers.
Increased marketing supported by foreign governments has not escaped the notice of Terry Callery, vice president of marketing with Great Eastern Mussel of Tenants Harbor. Maine companies also have stepped up marketing efforts.
“Only 3 percent of our product is sold in Maine,” said Callery. “The rest is on the Eastern Seaboard down to Florida, California and some major cities like Chicago and Detroit. The strong dollar and the desirability of the U.S. has everybody pounding for this market. At [the Boston Seafood Show], you’ll see pavilions run by (foreign) governments.
“Maine has a booth and does a good job promoting Maine seafood,” Callery said, “but nowhere near as well-funded as some governments from abroad.”
On the up side, Callery has seen increased market growth at Great Eastern Mussel.
“We set a goal of 20,000 pounds a week in new sales,” Callery said. “We achieved that goal in the spring, representing 25 to 30 new accounts since last fall. Our sales are up 18% in dollars and 10% in volume due to an aggressive sales program and highly successful public relations.”
Steve Young, vice president of sales and marketing with Ducktrap River Fish Farm of Belfast, is adjusting marketing strategy.
“The white tablecloth segment is still recovering” from the Sept. 11, 2001, terrorist attacks, said Young. “That’s one of the reasons we focus the business to maintain balance. When the economy starts to suffer, people tend to want to dine at home. At that point they’re looking for products that allow them to treat themselves. Our packaged cold-smoked salmon, trout or trout pates fall in that category.”
Consequently, Ducktrap’s retail sales have grown 10 percent to 20 percent, according to Young. Although it’s difficult to measure any loss of sales resulting from seafood promotions subsidized by foreign governments, Young acknowledges an influence.
“The Norwegian Salmon Council did such a great job years ago, to this day restaurateurs still say Norwegian salmon is the best,” said Young, “mainly because the marketing campaign penetrated their psyche. If Australia can be successful doing the same thing, you can’t quantify it, but it’s out there.”
Richard Kazimer is a journalist based in Cambridge, Massachusetts.