Sars threatens Aussie fish market

By Christian Mahne Sydney, Australia

Fresh fish is under threat

The effects of Sars are being felt right across Asia. From empty planes to silent hotels, businesses are suffering.

But in Australia the Sars outbreak is having a most unexpected impact - on the nation's seafood industry.

Selling fish isn't for the late riser. They start early at the Sydney Fish Market - by 0530 local time the fresh fish rush is well underway.

Stock is sold by Dutch auction here. Prices on large overhead displays tick downwards until a buyer jumps in.

That's the problem - the prices keep falling and the buyers aren't jumping.

Take coral trout for example: one of Australia's most popular exports to Asia. Normally the live fish will fetch US$25 (£16; 23 euros) a kilo but prices are now below $10 and still falling.

Empty restaurants

On a typical day, much of the fish on the Sydney Fish Market floor would be heading for the restaurants of Hong Kong and Singapore.

Fish prices are falling

They're usually huge buyers of Australian seafood and a mainstay of the local wholesaling industry.

But Sars means those restaurants are now empty and the major clients have simply stopped ordering.

Martin Palmer supplies fish to some of Sydney's best known restaurants.

He's now got a problem. The home market is awash with unsold fish, prices are falling and there's a real fear that the fishermen who supply him are going to go under.

"It's dreadful. Basically the last thing we want to see is people going out of business because if people go out of business we won't get the product.

Fishermen could go out of business

"It's something we're not used to dealing with because we're only used to the prices going up.

"And all of a sudden to find out that the Chinese market has disappeared - it's going to be disastrous."

Tanked up

You can see the local effects already. A typical seafood restaurant in Sydney's Chinatown has holding tanks full of cut price fish as the domestic market struggles to absorb unsold international stock.

Restaurateurs are getting plagued by suppliers desperate to offload unsold fish.

There is little demand in Sydney's Chinatown

For people out there who do need seafood, it's a buyers' market, as Golden Century Seafood owner Eric Wong explains.

"We have more bargaining power at this moment, so we can argue the price with the supplier.

"Some of them are holding a lot of stock and they need to push the live fish tank product to a weak market. You can't keep fish too long in the fish tank."

Locals may be getting the deals, but the industry relies on high spending and high profit export markets.

Unless seafood prices improve soon, many fear it's going to get a whole lot quieter on the auction floor.