Crayfish prices soar in China as supply fails to meet demand

World
Europe

01:31

One of China's best dishes, crayfish, is back in season. However, this year, the booming crayfish industry is struggling to keep up with demand.

To many Chinese, it wouldn't be summer if you couldn't sit outside at night with a beer and a platter of crayfish. But this year, you may have to pay more for the treat.

In the country's biggest center of crayfish trade, sales have increased by over 20 percent since last year and prices are still rising.

It is 25 yuan (about 4 US dollars) for half a kilogram, but last year it was only 18 yuan (about 3 US dollars). The soaring price is partly because supply cannot meet demand.

The extreme cold in southern China earlier this year stunted the growth of crayfish, and delayed them getting to market. China's prodigious appetite for the creature has created a multi-billion US dollar industry in the country. And more money is pouring in.

Since 2015, over 10 companies have raised capital to claw away some of the growing crayfish market for themselves.

Zhouheiya, a food giant known for its cooked and marinated duck products, launched a unit to sell ready-to-eat crayfish products last year.

"People are no longer satisfied with sitting around a table while having meals. They want to have a personalized and casual dining experience. That's why we chose to enter the crayfish market," said Hao Xiaoli, general manager of the company.

Official figures show the consumption of crayfish in China reached 137 billion yuan (21.6 billion US dollars) last year, and it increases by 30 percent every year.

It seems there might be a feeding frenzy for capital in the industry too. But for consumers, all they need is enough money to soothe their crayfish cravings.