Source: “Storage tanks for contaminated water at the Tokyo Electric Power Company’s (TEPCO) Fukushima Daiichi nuclear power plant, Okuma, Fukushima prefecture, January 20, 2023. © Philip Fong, AFP”
Why is Japan discharging nuclear wastewater from Fukushima?
In 2011, Japan experienced one of the strongest earthquakes in history. The aftermath resulted in 15,899 fatalities, with 2,572 people still missing and presumed dead, over 6,000 injured, and many towns wiped off the map. Significantly, the earthquake devastated the Fukushima nuclear power plant located near the coastline. The tsunami that followed completely damaged the cooling systems for nuclear fuel, leading to a severe nuclear disaster. It contaminated the surrounding residential areas with radiation, and even today, many places remain uninhabitable ten years later. To prevent further catastrophe, workers pumped water into the reactor cores to cool down the overheated nuclear fuel, which quickly became contaminated with nuclear particles. While the Fukushima plant’s reactors are no longer operational, they still require cooling, which is why wastewater continues to accumulate. In the years since the accident, groundwater has also seeped into this area and become contaminated. Managing this radioactive water volume poses a significant technical challenge for the Japanese government. According to national authorities, there are approximately 1.3 million tons of nuclear-contaminated wastewater stored in over 1,000 tanks. These tanks are nearly full, which is why the water needs to be discharged.
Japan’s Discharge of Nuclear Wastewater into the Sea
Japan has initiated the first discharge of treated nuclear wastewater from the Fukushima Daiichi plant into the Pacific Ocean, amid reactions from neighbouring countries and fishermen. At 13:00 (14:00 Sydney time), Japan began discharging treated nuclear wastewater from the Fukushima Daiichi plant through a one-kilometre-long underground tunnel into the sea. The Tokyo Electric Power Company (TEPCO) is responsible for this operation, which is taking place under stable sea and weather conditions. TEPCO plans to discharge a total of 7,800 tons of water into the sea over the next 17 days, continuously, 24 hours a day, starting today. This is the first of four planned discharges in the 2023 fiscal year (from now until March 2024), with an expected total of 31,200 tons to be discharged. International Atomic Energy Agency (IAEA) inspectors are present at the plant to oversee the procedures. TEPCO staff will collect water and fish samples for analysis, with results expected to be announced “as soon as tomorrow.” Japan’s discharge plan has faced opposition from its own fishing unions and neighboring countries like China and South Korea. After Prime Minister Fumio Kishida announced the start date of the discharge, China summoned the Japanese Ambassador to “express stern representations” and warned that Beijing would “take necessary measures to protect the marine environment, food safety, and the health of the people.” Japanese Ambassador Hideo Tarumi expressed regret over China’s stance but affirmed that Tokyo was ready to maintain communication with Beijing even after the discharge.”
Reactions from Neighbouring Countries?
Japan’s commencement of discharging 1.3 million tons of treated nuclear wastewater has raised concerns worldwide about potential long-term consequences. Some neighbouring countries of the Land of the Rising Sun immediately expressed apprehensions regarding this program. On August 24, as soon as Japan began discharging treated wastewater into the sea, nations faced certain trade restrictions. Notably, China imposed a ban on importing all seafood originating from Japan.
The project to discharge nuclear wastewater has been under research for several years. In July, the International Atomic Energy Agency (IAEA) approved the discharge plan, which would be executed from August 24 if weather and sea conditions permitted. Greenpeace expressed concerns in a press release on August 22, stating that the Japanese government had chosen a solution that could lead to mistakes. Discharging nuclear wastewater could result in radiation pollution in the marine environment for decades, especially at a time when the world’s oceans are already under pressure due to climate change.
China’s Foreign Ministry spokesperson, Wang Wenbin, also remarked, “The ocean is the common property of humanity, not a place where Japan can freely discharge contaminated wastewater.”
During the Regular Press Conference of the second quarter of 2023, on July 19, Pham Van Toan, Deputy Head of the Radiation and Nuclear Safety Bureau, stated that to handle the accumulated wastewater at the Fukushima Daiichi nuclear power plant, Japan’s discharge plan had been reviewed by the International Atomic Energy Agency (IAEA) and top nuclear safety experts recognized internationally from 11 countries since April 2021.
The conclusion of Japan’s plan to discharge treated radioactive water into the sea aligns with IAEA’s safety standards. “According to the IAEA’s assessment, the concentration of radioactive agents in the water at a distance of 30 km from the planned discharge location ranges from 10^-6 to 10^-10 Bq/l (becquerels per liter),” the representative of the Radiation and Nuclear Safety Bureau explained. “This is a very small proportion compared to the natural radioactive concentration in seawater.”
It is known that under normal conditions, seawater already contains naturally occurring radioactive concentrations within the range of 0.1-1 Bq/l, which hardly has any radiological impact on the marine environment. This level has also been stipulated in Directive No. 19/2021/TT-BKHCN signed on November 8, 2012, by the Minister of Science and Technology, which includes provisions for controlling and ensuring radiation safety in occupational exposure.
The Ban on Importing Seafood from Japan and Opportunities for Vietnam’s Seafood Industry
In response to Tokyo’s decision to commence the discharge of treated radioactive wastewater from the Fukushima nuclear power plant into the sea, China has declared a ban on all seafood imports from Japan. This move could inflict significant damage on Japan’s seafood exporters and further strain the already tense relationship between the two countries.
The Challenges Faced by Japan’s Fishing and Aquaculture Industry
Japan’s fishing industry is facing numerous difficulties as prices drop and instability increases with the Chinese government imposing a ban on the import of Japan’s seafood products in response to the decision by Tokyo to release treated radioactive wastewater from the Fukushima nuclear facility into the Pacific Ocean. This move could inflict significant damage on Japan’s seafood exporters and further strain the already tense relationship between the two countries.
According to trade statistics from the Japanese government, China is the largest market for Japan’s seafood exports, with a trade volume of 87.1 billion yen (600 million USD) last year. Among these, the most common products include scallops, tuna, sea urchins, salmon, and sea cucumbers. The price of fresh Aomori tuna at the Toyosu market on August 25th dropped by 24% compared to the previous day, reaching 9,383 yen/kg, according to data posted on the website of Tokyo’s central wholesale market. A Hokkaido-based company specializing in exporting seafood to China and Hong Kong plans to shut down and lay off 20 employees, according to an anonymous employee.
China’s reaction reflects public concern, although the International Atomic Energy Agency (IAEA) has stated that Japan’s actions comply with global safety standards and have a minimal impact on humans and the environment. Gen Komori, the president of Housen, a seafood trading company based in Tokyo, stated that exports to China have been severed. The company must shift its focus to Europe, the United States, and Southeast Asia.
“It is indeed challenging, but we must try,” he said. “It’s much more difficult for companies that export to China.”
A representative of Hashiguchi Suisan, a company that farms and processes yellowtail and tuna in Nagasaki Prefecture, said the company exports about one-tenth of its total volume to China, and the latest developments will result in the company’s revenue decreasing by hundreds of millions of yen. He hopes the Japanese government will consider support policies for fishermen related to maintenance and storage costs.
In fact, exports of fresh fish from Japan to China have decreased since July when China tightened inspection standards. However, this time, frozen products and processed products have also been removed from the vast Chinese market. “Products exported to China must be sold domestically or exported to other countries such as Thailand, Vietnam, and Singapore,” said seafood analyst Momoo Odaira. “As competition intensifies in other countries, prices may decline.” China has already banned food imports from ten provinces, including Fukushima, but expanded the comprehensive ban after Tokyo Electric Power Company began releasing treated Fukushima nuclear wastewater this week.
Japanese Finance Minister Shunichi Suzuki called on China to immediately lift the ban and said the Japanese government should seriously consider measures to assist fishermen.
Takahide Kiuchi, an economist at the Nomura Research Institute, said that exports of seafood to China and Hong Kong account for only 0.17% of Japan’s total export volume and have a “very limited” impact on Japan’s exports and economy. However, if China’s trade restrictions on Japan expand into other areas, Japan’s economy will suffer more significantly.
According to research from the Denwa Institute, half of Japan’s seafood exports go to China, Taiwan, and Hong Kong. Fishermen will lose 50% of their overseas sales
Opportunities for Vietnam’s Seafood Industry
China (Mainland China and Hong Kong) is currently the largest seafood import market for Vietnam in the first half of this year, with an import value of $716 million, accounting for 17% of Vietnam’s total export revenue. Vietnam currently exports seven seafood products to China officially, including shrimp, crab, salmon, squid, tilapia, snowfish, and pangasius.
Among them, shrimp is the most imported product by China, with a value of $338 million (accounting for 47% of total export revenue) in the first seven months of this year. Over 90% of Vietnam’s seafood exported to China is frozen products. According to some seafood industry experts, China’s ban on seafood imports from Japan will create more favorable conditions for Vietnam’s seafood industry, but the level of impact may not be “very significant” due to differences in the product structure of Vietnam and Japan’s exports.
Shrimp is expected to benefit the most from this situation, as the absence of Japanese crustacean products in the market will stimulate Chinese consumers to seek alternatives from other countries, including Vietnam. Data from China’s Customs Agency shows that warm-water shrimp imports by China in the first six months of this year reached over 502,600 tons, with a value of $2.84 billion, an increase of 49% in volume and 29% in value. This indicates that China’s demand for shrimp consumption remains high despite the economic challenges it faces. According to seafood industry experts, shrimp prices have hit rock bottom, and the reduced supply of shrimp from many major producing countries around the world, combined with the upcoming year-end holiday season – the peak consumption period for shrimp and seafood in general, will stimulate importers to increase their purchases. In addition, deep-processed products, which are the strengths of Vietnam’s shrimp products, tend to be better consumed during the holiday season.
Furthermore, China has been the largest catfish import market for Vietnam since 2020, with high growth rates. After a continuous decline from September 2022 to January 2023, the average export price of catfish to the Chinese market has gradually stabilized but remains low.
According to data from SSI Research, the average export price of Vietnamese catfish to China in the first six months of this year is only $2/kg, compared to $2.5/kg for the whole of 2022.
Currently, the Vietnam Association of Seafood Exporters and Producers (VASEP) predicts that from August onwards until the end of the year, China’s demand for Vietnamese seafood imports will increase significantly to serve the Mid-Autumn Festival, National Day, and other year-end holidays.
In the stock market, in response to China’s decision to stop seafood imports from Japan, seafood stocks surged, with many stocks experiencing significant gains during the trading session. At the closing of the market on August 25th, among catfish stocks, ANV shares of Nam Viet Corporation increased by 4.8%, and IDI shares of Multi-National Investment and Development Corporation increased by 6.8%. In the shrimp stock group, CMX shares of Camimex Group increased by 3.9%, and FMC shares of Sao Ta Foods increased by 2.2%.
Source: Thufico News
