United Arab Emirates occupies a total area of about 83,600 square kilometers (32,400 square miles), along the south-eastern tip of the Arabian Peninsula between 22°50 and 26°N and between 51° and 56°25 E. The UAE has 1 318 km of continental coastline along the Persian Gulf. The inflation rate, exchange rate and currency stability are important factors to consider in International trade, economically, the UAE has a 4% of GDP growth in 2012 with a lower inflation rate of 1. %, In terms of days and cost of import procedure (United Arab Emirate). The Urbanization rate of the region is 84% (UAE) which would contribute to the product awareness in necessary part of the region since the urbanization rate is high. The common languages in UAE are Arabic (official), Persian, English, Hindi, and Urdu with major religion is Islam. Note English is also common language in this region because of presence of foreign expatriate working over there (Languages spoken in Dubai).
The major natural resources that contribute to the GDP of the region are petroleum and natural gas. The fisheries of the UAE are entirely artisanal in nature and there is no major aquaculture industry in the country. The Country is arid nature; there are no inland fisheries in the UAE. In the UAE seafood is eaten as part of everyday meals and for special occasions, and additionally both the quickly growing UAE population and the increase in tourism and major developments drive increased seafood consumption, The demand from the U. A. E. oodservice sector for seafood has grown by 42% and reached US$158 million by 2012 which can also increase (Agri-Food Trade Services) The UAE is a highly rule-oriented country with rigid and strict laws, rules, regulations and values of Islam while it also has a very friendly and favourable trading environment, ranking the 5th worldwide in the factor of Trading Across Borders by Word Bank. There is no Nontariff Barriers on most of imported product, especially on seafood providing they comply with Muslim laws and traditions. Company Clearwater’s headquarter office is in Bedford, Nova Scotia.
Its fleet harvests for all Clearwater’s seafood product in the North Atlantic region, and 7 land-based holding facilities which integral links vertically integrated structure are the locations for primary processing (Processing Facilities). The organization of the company is well integrated; the headquarter has functions of HR, IT and finance are integrated under the management of VP Finance and CFO (Chief Financial Officer), and the COO (Chief Operating Officer) manages purchasing, quality control, logistics and monitors operations of 7 land-based holding processing facilities also the COO will be in charge of the exportation to UAE.
Each factory’s manager should report to COO and its own departments of HR, accounting, QA, and logistics are guided by the corresponding departments (Clearwater Fine Foods Inc). Clearwater revenue would increase if UAE is considered for the export business based on the fact that there is increase in demand of seafood in UAE especially live crabs, which is sold almost triple the price in UAE compare to Canada.
Clearwater has existing business including partnership in Europe, Asia, North America (Clearwater Seafood Incorporated); the company is planning to expand to UAE to increase company’s revenue and make the reputable seafood company known in this part of the world. Lobster The UAE is a niche market for Canadian lobster, in 2011; the total export value of lobsters (live or frozen) from Canada to the UAE reached $2. 3 million, an increase of 657% and 77% from 2000 and 2008 respectively. According to a recent Statistics Canada report, in 2011 Canada exported 91,231kg of lobster (live and frozen) to the UAE.
It can be seen that there is a huge potential in Canadian lobster market in the UAE (The National). Therefore, it can be calculated that the average unit price of lobster exported to the UAE is $25/Kg or $11. 3/lb. This price point for Canadian lobster is justified in the UAE. Its absolute price in the UAE is almost at the same level in Canada’s retail market while the former is more favorable if measured in PPP considering the Disposable Income per Household of Canada is only 47. 6% of that of the UAE in 2010 (World Consumer Income). Scallop
Canada began exporting scallops to the United Arab Emirates in 2004, when there were only CAD $84,973 of scallops i. e. live and frozen exported. However in the next four years, the trade of scallops saw a tremendous growth and the total export of scallops from Canada to the UAE. From 1994 to 2009, the export value of Canadian scallop, all supplies and nations of destination combined, has varied between $14. 65 and $21. 39 per kg (average $16. 83). Also, from 2000 to 2009 the annual landings averaged around 7,000 tonnes (meat weight, not including shells) in the offshore scallop fishery.
Landings and total allowable catches declined from 2000 to 2005 but have been increasing since the increased by 770% and reached $742,544 in the year 2008 (Statistics Canada, 2009). Snow crab The snow crabs are seen as safe to eat because they are taken from wild fisheries that are completely managed. Snow crab has not been exported to UAE since 2005, this serve as an opportunity for Clearwater in UAE. The largest snow crabs weigh about five pounds, the meat of snow crabs is more fibrous than any other crab. It is sold $40-$110(USD) in restaurant (Restaurant Reviews), at 35AED ~$10. 02 CAD per kilogram at grocery store and 25AED~ $7. 6 CAD per kilogram at fish market (Deira Fish Market). The price of snow crab in Canada is lower compare to the price in UAE.
Products It is certified by MSC (Marine Stewardship Council) and proud of being absolutely a product of Canada. Clearwater Seafood a Canadian with different line of products for shellfish, but the company will only export 3 products to UAE; snow crab, lobster and scallops. These 3 products are unique and distinct compare to product from other competitors: Lobster Clearwater’s lobster is wild homarus americanus/ American Lobster or clawed lobster, living in cold sea water of East Canada. Lobsters can be very aggressive animals, and fight with other lobsters for shelter, food and mates. Lobsters are highly territorial and establish a hierarchy of dominance within the community of lobsters that live around them; the lobsters are generally a reddish-brown or greenish color, although there are occasionally unusual colors, including blue, yellow, orange or even white (Jennifer). Its meet is sweet and tender with clean taste and meaty texture. The lobsters should be stored in styrofoam or cardboard boxes, completing with gel or ice packs to maintain a low temperature.
On the package should be marked “Perishable”, “Product of Canada” and Up Arrow. Scallop Sea scallops are bivalve molluscs and are one of Canada’s most commercial shellfish. Scallop meats have creamy, beige, light blonde color. Some female sea scallops may have a slight orange color which does not affect odor or taste. The meats become white in color when cooked. The scallop is possibly best known for its beautiful and distinctive circular-shaped shell that can reach up to 20 cm in size. “Scallop meats freeze well, frozen meats should be maintained at 0 oF or lower. They should be thawed in the refrigerator.
Refreezing scallops results in loss of the firm texture and nutritional benefits” (ISSC). The product will be de-shelled and refrigerated in Canada and packed in a box in other for easy handling and transportation. Snow crab The snow crab or chionoecetes opilio is a crustacean with a flat, almost circular body, and five pairs of spider-like legs, all longer than the width of its orange-brown shell can be found only on the West and East Coats of Canada and Alaska, though some can be found near Russia and Japan, as well which make our product unique due to the low content of mercury (Seafood Selector).
The snow crab also known as Queen crab has edible meat in the body, legs and claws, tender, succulent meat making it a more satisfying meal overall. The stringy, lean, white flesh is highly prized because it is only found in the claws and legs, which only account for about a quarter of the crab’s total weight. The crab’s liver and the creamy substance under its shell are also edible. The snow crab legs found on the market are categorized by number of claws per pound which is bigger than the female, the male crab can weigh up to 1. 5 kilogram and, it is the only crab harvested(Metro). Labeling and packaging Labeling requirements for seafood in terms of name and address, product name, qualifying words, pictorial representations, the net mass declaration, storage instructions, date of manufacture, keep refrigerated, indicate that it is perishable products, protect from heat including minimum and maximum temperature expiration date and factory code, country of origin, substandard, directions for use, labels and marking of master cartons ( Seafood Export Profile).
The language for labelling is Arabic and English. Conclusion Delivering Sustainable Seafood Excellence is Clearwater’s long-term strategy. Clearwater does not only provide sufficient and premium seafood supply but also build it a reputable company with excellent Corporate Social Responsibility which will bring more added values to its UAE customers.
The products will be shipped in a insulated Styrofoam boxes with coolant such as gel pack, dry ice and wet ice by air transportation in order for survival of the snow crab and lobster upon arrival the product will be cleared within 48hrs, the products can survive 4-5 days as long as the humidity for lobster is 100% (Shipping of live Lobster) and for snow crab is 70%, Clearwater scallops are already processed from Canada and it will be shipped refrigerated not frozen, it will packed into acceptable package and measurement in UAE.
The products adaptability is necessary before shipping and arrival of the products during packaging the lobster claws has to be pegged to avoid cannibalism, and snow crabs protected with raffia to avoid cannibalism as well, after arrival the weak snow crab and lobsters will be processed and packed in Styrofoam pad and the weight will be indicated on it (APEC Air Shipment, 36, 39). The products will be sold to final consumers based on the metric measurement i. e. price per kilogram.