The ecological environment in the North Yellow Sea is complicated and constantly changing, Zoneco Group said in its statement
Chinese producer losses USD 43 million due to 'mysterious' scallop deaths
Wednesday, November 13, 2019, 00:00 (GMT + 9)
- Zhangzidao Group says 80% of scallops were found dead
- Chinese producer estimates USD 43 million of scallops affected
(Bloomberg) --A scallopocalypse is laying waste to the popular delicacy in the Yellow Sea.
Giant Chinese seafood supplier Zhangzidao Group on Tuesday (Nov 12) said it found more than 80 per cent of scallops at a farm in the sea between China and Korea had died due to "unidentified" causes.
The book value of the affected mollusks is CNY 300 million (USD 43 million), the company said in a statement to the Shenzhen stock exchange. It is still assessing the damage, and the cause of death is unknown though believed to be natural, it said.
Zhangzidao's "ocean ranch" supplies more than 50,000 tonnes of scallops a year, according to its official website. Just over 100,000 tonnes of the bivalve were traded globally in 2018, according to the Food and Agriculture Organisation of the United Nations, with China accounting for one third of both imports and exports.
The ecological environment in the North Yellow Sea is complicated and constantly changing, Zhangzidao said in its statement. Scallops accounted for 6 per cent of total revenue in the first nine months of this year, it said.
Shenzhen-listed Zhangzidao Group, which calls itself an "undersea bank", has come under fire in the past for its declining scallop output. The average yield for the mollusks that started seeding in 2018 is expected to have dropped to about 3.5kg as a result of the deaths, down from 25.61kg per mu (about 675sqm) in the first ten months of this year, the company said.
Zhangzidao's shares tumbled by their daily trading limit of 10 per cent in Shenzhen on Tuesday. They are down 17 per cent this year.
Author: Alfred Cang / Bloomberg