Russian Crab Company joins business alliance to seek out more sales in China
The leading supplier of king crab to China has joined a business alliance to extend its reach into the premium end of the Chinese seafood market. The Russian Crab Company Group, which claims to be the largest crab harvesting company in the Far East, became a member of Russian-China Business Council (RCBC) to bolster its logistics capabilities in China.
New logistic chains and centers creation as a priority area will expand the geography of crab consumption in China," Russian Crab Company General Director Alexander Sapozhnikov said in a statement.
Despite logistical difficulties, Russia managed to increase its shipments by 15 percent year-on-year in 2020, with 14,500 metric tons shipped. Demand for king crab in the Chinese market has surged recently, with 1.5- to two-kilogram product from Russia fetching CNY 1,299 (USD 207, EUR 168) in the run-up to Chinese New Year, compared to CNY 599 (USD 96, EUR 78) in 2018. Russias enjoys geographical proximity to China, but theres plenty of competition too in the premium end of the crab market. Live two-kilogram Alaska king crab are selling for CNY 1,588 (USD 254, EUR 206) on leading retailer Tmall. com, which is also selling frozen two-kilo king crab from Chile sell for CNY 488 (USD 78, EUR 63).
The Russian Crab Company has a fleet of 19 vessels and a 2021 quota of 12,860 metric tons (MT) in the northwestern subzones of the Pacific Ocean, which is the largest share of quota in the Far East Basin. Last year, the firm accounted for 22 percent of Russian crab shipments to China, the largest share of any individual firm, according to the company. The 3,100 MT of crab it shipped to China is a doubling of its 2019 sales in China.
The Russian-China Business Council was established in 2004 during a visit to China by the Russian President Vladimir Putin. Russias trade with China is largely dominated by energy sales and the members of the RCBC include the largest buyers of sellers of gas and oil in China and Russia. In addition to representing energy companies, the RCBC is also involved in the construction of infrastructure like a cross-border railway bridge over the Amur River into China. We are glad to welcome Russian Crab to the business council, RCBC Executive Director Yevgeny Markin said. It is highly important that companies operating in the real sector of the economy share the interests of the business council.Original