Japanese Giants Partner with Canadian Wholesalers to Boost Japanese Scallop Sales in North America

Japanese scallop factory

Introduction to the Kyokyo-COS Partnership

The collaboration between two prominent names in the seafood industry, Kyokyo and Clear Ocean Seafood (COS), marks a significant milestone in the global seafood market. This partnership has led to the creation of Pacific Scallops Limited, a joint venture set to revolutionize the distribution and availability of Japanese scallops in North America.

Kyokyo, a leader in the Japanese seafood industry, has been instrumental in domestic seafood procurement for decades. On the other hand, Clear Ocean Seafood has established itself as a robust entity in the North American seafood market, particularly known for its expertise in scallop sales. This partnership leverages the strengths of both companies to tap into a growing demand for quality seafood across North America.

Expansion of Japanese Scallops in North America

With an initial investment of 80 million yen, the establishment of Pacific Scallops Limited in Hokkaido is not just a strategic move but a significant economic push towards enhancing Japan’s seafood exports. Hokkaido, being the northernmost of Japan’s islands, is renowned for its rich marine ecosystems, making it an ideal location for scallop cultivation. The joint venture aims to utilize this geographic advantage to ensure the supply of high-quality scallops to North American consumers.

Goals of the Joint Venture

The primary goal of this joint venture is to reduce the dependency on overseas processing, which not only complicates logistics but also affects the freshness of seafood. By establishing a production line right at the source in Hakodate, Pacific Scallops Limited ensures that the scallops are processed and packaged with the highest quality standards before they are exported directly to North America.

Jingjiuyang, a key spokesperson for the venture, highlighted the increasing popularity of Japanese scallops in international markets. This venture aims to capitalize on this growing trend and make Japanese scallops a staple in North American seafood cuisine.

Strategic Benefits for Kyokyo and COS

Kyokyo brings to the table decades of experience in domestic seafood purchasing and raw materials procurement, ensuring that the best quality scallops are selected for production. Meanwhile, COS’s expertise in navigating the North American market will facilitate effective marketing and distribution strategies, ensuring that the product reaches the right consumers efficiently.

Operational Strategies and Future Outlook

The newly constructed production line at the Hakodate factory is equipped with state-of-the-art seafood processing technology. This facility is designed to handle large volumes of scallops, ensuring that the demand in North America is met without compromising on quality.

The operational phase of Pacific Scallops Limited is set to commence in September, following its establishment in July. Looking forward, Jingjiuyang has also announced plans to shift the company’s focus towards Southeast Asian markets like Vietnam, to diversify its market base and reduce the reliance on China, due to potential business risks posed by geopolitical tensions.

Implications for the Seafood Industry

This venture is expected to have a broad impact on the seafood industry in North America. By providing direct access to high-quality Japanese scallops, Pacific Scallops Limited will not only cater to the existing demand but is also expected to cultivate new consumers for this product. The local economy in Hokkaido will benefit from increased employment opportunities and technological advancements in seafood processing.

The establishment of Pacific Scallops Limited by Kyokyo and COS represents a strategic move within the global seafood industry, poised to significantly impact the market dynamics in North America. This venture not only highlights the potential for international collaborations in boosting local industries but also sets a benchmark for sustainable and high-quality seafood distribution on a global scale. As this partnership matures, it will undoubtedly continue to influence the market trends and consumer preferences in the seafood industry across North America and beyond.

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