Crab industry squeezed by corruption campaign

China's gourmet crab industry has become the latest victim of the authorities' crackdown on corruption, following high-end spirits and luxury cars.

The arrival of freshwater "hairy crabs" - a delicacy named for the bristles on the claws - on the market every autumn is eagerly awaited.

But the crabs have lost some of their appeal as anti-graft and austerity campaigns launched by the top leadership show little sign of abating.

China is hailed as the world's largest luxury market, but the corruption crackdown is having unintended consequences across many industries.

Management consultancy Bain & Co predicted on Tuesday that luxury spending in China will fall by 2 percent this year due to greater controls.

Banqueting fare such as crabs and expensive liquor are off the menu, while the number of luxury goods presented as gifts - but typically used for bribes - has plunged.

"Consumption (of crabs) by government officials has dropped to almost zero," said Yang Weilong, vice-chairman of a China Fisheries Association branch.

In some parts of the country, hairy crab retail prices have fallen by as much as 40 percent, Yang said, and average prices are now about 120 yuan ($20) for a 500-gram crustacean.

Demand from officials had fuelled a decade of price rises, but nowadays crab sellers can only rely on private customers.

The small green crabs are raised in eastern areas of China, but purists say the best come from the murky waters of shallow Lake Yangcheng near Shanghai.

Yang said, "It is important for major crab sellers to adjust their prices to fit general consumers, otherwise they will suffer a great collapse just like the spirit maker Moutai."

Kweichow Moutai Co, which dominates the nation's top-end liquor market, said in August: "Supply exceeds demand in the spirit sector. The whole industry continues to undergo a deep adjustment in a complex environment."

Its first-half, net profit fell slightly to 7.2 billion yuan this year, after posting growth of 13.74 percent for all of 2013.