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July 12, 2014

China

Hairy Crab Farmers Get Hot-Weather Insurance

 

Swiss Reinsurance has teamed up with China insurer China Pacific Insurance to introduce insurance for the 3,000 crab farmers in Jiangsu and Zhejiang provinces who face the possibility of hot weather killing off their crops, worth $73 million a year.  The new policies would pay the farmers if temperature stayed above 37.5 degrees Celsius for three consecutive days.

 

Last year, Jiangsu Province, which surrounds Shanghai, had extremely hot weather. Temperatures that hit 40 degrees killed many crabs, leading to huge losses for farmers.  Yuanyong Long, vice-president of Swiss Re Corporate Solutions, said farmers could now choose to buy one-year, two-year or three-year insurance coverage against high temperatures.

 

Cheung Wing-kai, manager of the Hong Kong Lao Shanghai Restaurant, one of the city’s most popular crab restaurants, said Hong Kong customers had to pay ten percent more for hairy crabs last year because the hot summer reduced the supply.  The wholesale price of hairy crabs last year jumped to $82 a kilo from $62 a kilo.  “The hairy crabs can survive very cold weather, but they can be easily killed by hot weather.  In any summer that hits 33 degrees or above, many crabs will die,” Cheung said.  He said farmers would start harvesting crabs in late September 20 this year.

 

Information

 

Weather Indexed Insurance for the Shrimp Industry

Mitten Crab Farming in China

 

Source: South China Morning Post.  China Business/Hairy Crab Farmers Get Hot-Weather Insurance.  Enoch Yiu (email enoch.yiu@scmp.com).  July 11, 2014.

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