Secrets and Prospects of Chinese Fish Processing Through Eyes of Russian Seafood Professional
"I've visited more than a score of large fish processing factories in China. Not all the largest ones, but most of them". That is how one of Russian fish industry professionals started his talk with http://www.megafishnet.com/ on this highly interesting subject for the seafood community.
The general impression of the factories is not quite a revelation. Our Chinese friends sincerely believe that palefaces were created to be cheated, and don't even try to conceal it. Not disclosing commercial secrets, just recall - at one of factories an American buyer and I observed a worker cutting with scissors a dark strip from a fillet. Even before I started to ask, the production manager explained that he is producing deep skin fillet. Actually, DS differs with PBO because skin is to be removes with 5 mm fat layer. The product is leaner than usual fillet. At the same time the dark strip of meat is removed - that strip the Chinese worker thoroughly removed. The American didn't actually get that he observed production of a counterfeit product. This technology I've seen at least at half the factories I visited, i.e. in every plant where I've seen production of DS fillet.
Surely, Chinese factories are provided with plenty of certificates, EU numbers, etc. Let's leave the question how they pass inspections and audit to experts. But even using common sense it is clear that there are problems at every factory which should normally prevent EU registration. Don't think the condition is obviously insanitary, of course not. But clothes disinfection by hanging in open air, sterilization of changing rooms by opening windows ("why use ultraviolet light or ozone - frost kills bacteria" - words of a production manager) are really impressive. There are also minor things, like taps which workers open with hands, insanitary condition of joint (unisex) toilets, and so on. When we asked how tables are disinfected, technologists frankly say: "put a solution for half a minute, wipe with a cloth and rinse". Nobody checked them, they could easily lie. Even explanations that the solution is to be kept on the table for 30 minutes didn't convince the professionals.
Chinese implementation of HACCP system is a witty mockery at the very idea of it. Normally there are two CCPs per workshop: raw material check and a metal detector before packing. At some factories there is just one (!) control point, the detector. At a number of factories production manager could not say how many CCPs they use, but rest assured they do have HACCP plan and the necessary certificate.
An unexpected revelation for a person coming across Chinese for the first time is incompetence and absence o professional curiosity. Chinese well know that their country is the center of the Universe, and don't even think to clarify information at the source. They could ask in February: "You know, we have LONG rumors that your Pollock quota has been cut almost twice, and the American one increased dramatically. We are VERY concerned, could you clarify the situation". When you explain that the quotas have been fixed and published months ago and ask in return why don't they google, or visit sites of NFMS or Russian Fishery Agency, they don't really understand. Why should we look for it? It's not our way. Definitely, it's not their way either to ask a partner by phone or email, as it is much easier to discuss rumors. It's simply another world.
It is worth noting that Chinese work really hard. Usually the workers come from distant (a day or two by bus) villages and live in a dormitory at the factory. Ten hours shifts, 300 days a year. Days off are Sundays, two public holidays (May, 1 and October, 1) and Lunar New Year vacation. Managers and specialists enjoy somewhat better life. The New Year holidays are shorter - just a week, but they are entitled for a vacation. For young ones (less than 10 year experience) five calendar days are granted. The older ones - enjoy ten days. Not all Saturdays are business days for them. Well, while Chinese work this way we have no chance to compete.
However, the further - the more difficult it is to find those willing to sweat their guts out. Every year no more than 60-70% of labor force return after New Year holidays. The rest look for better life and better jobs in electronics, toys and other industries. To keep and attract workers factories increase wages 10-15% every year, but it doesn't really help.
It is well known that APO processing is not a very profitable business. A factory is squeezed between fillet prices at the consuming destinations, that don't really grow, and raw material prices, which depend on growing oil price. Calculations say that both the Chinese processors and traders earn very little on Pollock, and volume is the only stimulating factor. Every time Russian fishermen try to stabilize prices Chinese refuse trying to play with prices and earn at least something.
The above two facts drive us to a simple conclusion. Nothing is eternal, including Chinese fish processing. I heard tales that once upon a time Japan was the fish processing center in Asia Pacific. Some time later, along with wages growth, the processing (not only fish processing) was moved to the neighboring Korea. There are some people on ships who remember Pusan anchorage crowded with hundreds of Russian trawlers. However with time the life standard in Korea grew up, and today trampers deliver fish from the fishing grounds to Qingdao and Dalian. It looks like it's high time to go for a new processing location, or make European consumers accept a new price level. It is difficult to say where the industry will move. India, North Korea, Vietnam, Bangladesh - that are the countries discussed among seafood professionals. Or maybe it will be Africa?