The aftermath of the devastating Capricorn typhoon has left the Hainan region in China struggling to recover. Factories and agricultural sites across the island have sustained severe damage, with businesses unable to even estimate their losses accurately. The impact has been particularly felt in Hainan’s thriving tilapia farming industry, where Zhejiang businessmen, who form the backbone of this sector, are among the hardest hit.
Widespread Destruction in Tilapia Farming
Hainan’s tilapia farming is a major industry, producing approximately 50% of the country’s supply. Many farms, predominantly operated by Zhejiang entrepreneurs, have faced massive losses in both infrastructure and livestock. Our source described the devastation that Capricorn left behind. Li, who manages a tilapia farm covering 400 acres, returned to find his fish ponds destroyed, aerators damaged, and entire containers of feed vanished. The estimated financial loss for his operation alone exceeds 1 million yuan, with many catties of fish likely washed away.
The Jinyun Chamber of Commerce represents more than 100 companies and 500 fish farmers, all of whom are now grappling with the aftermath of the typhoon. Collectively, these businesses sell around 2 million catties of tilapia daily, and their survival is critical to maintaining the region’s fish supply.
Supply Chain Disruptions and Price Instability
Before the Capricorn typhoon, the supply of raw materials (RM) for tilapia farming was already strained due to high demand and shortages, particularly for larger sizes. The current damage to facilities means that prices are expected to remain unavailable for some time, further exacerbating the situation for businesses relying on this supply chain.
In addition to physical damage, the storm has also left lingering issues, including potential fish residue contamination. Exporters are advised to check whether they can continue shipping products from affected regions. Companies such as Ocean Treasure are stepping in to help navigate this challenging landscape. They are offering alternative supply options, including Vietnamese products, until Chinese exports resume.
Economic Impact on Hainan and Zhejiang Merchants
Hainan’s economy has long been supported by Zhejiang merchants, who have invested heavily in agriculture and aquaculture. More than 150,000 Zhejiang people have started businesses in Hainan, with over 16,000 companies and 40,000 individual enterprises contributing to nearly 50% of the province’s off-season fruit and vegetable production and a substantial portion of tilapia farming.
The scale of destruction caused by Capricorn has jeopardized this thriving sector. With communication lines still down in many areas, and power restoration efforts ongoing, it may take weeks before the full extent of the losses is clear.
Moving Forward
Despite the massive destruction, we remain hopeful. As power is restored and the damage is assessed, many are looking to rebuild their operations. However, the road to recovery is long, and the economic impact of this typhoon will likely be felt for months.
For businesses seeking to navigate this uncertain time, Ocean Treasure offers expertise and alternative supply options. By connecting with exporters and exploring new sources such as Vietnamese tilapia, companies can continue to operate while waiting for Chinese products to become available once again.
In the meantime, the focus is on rebuilding and ensuring that Zhejiang merchants can restore their critical role in Hainan’s economy. As the region recovers from this disaster, the resilience and determination of the local business community will be key to its revival.
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