Domestic price of fish and other seafood

IBISWorld forecasts the domestic price of fish and other seafood to climb by 3.7% in 2024-25, to total 120.8 index points. Growing health consciousness among New Zealanders has stimulated demand for fish and seafood, which are perceived as a healthier option, as they have nutrients like omega-3 fatty acids and are leaner compared to other sources of protein like red meat. New Zealand's fish and seafood are also popular in export markets, especially in Asia-Pacific. New Zealand's fish and seafood market is small compared to other countries in export markets like China, Indonesia and India. As a result, a smaller proportion of domestically caught fish and seafood will be available for the local market, causing a rise in prices. High inflationary pressures over the past few years have heightened costs in the fishing sector, including fuel costs for boats, compliance and quota costs, wages for workers and transportation costs for both domestic and overseas export markets, leading to increased domestic prices of fish and other seafood.

The Quota Management System (QMS) maintains an effective floor on prices by setting limits on supply. The QMS restricts the quantity of certain species of seafood that can be harvested within defined time periods. Where limits for a particular species are reached, prices increase dramatically as no further harvests can be made during that period, contributing to growth in the index. Conversely, where catch volumes for certain seafood under the QMS are raised, supply tends to increase, placing downward pressure on domestic prices.

The domestic price of fish and other seafood has fluctuated significantly over the past five years. An overall depreciation in the New Zealand dollar over the period has lifted the price of imported fish and seafood for domestic buyers. This has allowed local fisheries and aquaculture farms to lift prices as well. The pandemic also caused significant turmoil in the movement of seafood prices on the domestic market. Price growth slowed significantly in 2020-21 as demand from China collapsed during the pandemic. As export demand from Chinese buyers rebounded following the pandemic and wider inflationary pressure fed into the price of fish and other seafood, prices surged in 2021-22 and 2022-23. Overall, IBISWorld forecasts the domestic price of fish and other seafood to increase by a compound annual rate of 4.5% over the five years through 2024-25.