Hello and Welcome – Thank you for joining us for The Tradex Foods - "3-Minute Market
Insight" The Monday morning “pulse report” for
seafood purchasers.
Some Fast Facts to start this week’s insight: A major Japanese producer has cancelled a
1,500 metric ton shipment of Chum Salmon to the North America market due to consumer price
resistance. The impact?
Prices MAY fall but this will not likely happen until May or June of next year.
The Sockeye salmon market has appeared to have hit its’ peak.
High prices are slowing down sales as there is a risk of end-consumers switching to alternate
proteins.
The Halibut fishery closed on November 15th. Despite low inventories high prices have wavered
and restaurants are pulling Halibut off menus in favor of sole and other whitefish.
In news this week POLLOCK The National Marine Fisheries Service has
released its’ assessment on eastern Bering Sea Pollock.
The agency recommends that the 2011 total allowable catch be 1.267 million metric tons
an increase of 15 percent over last years forecast.
Annual Alaska Pollock quotas fluctuate considerably due to the natural cyclical trend of the biomass
HOWEVER in recent years fluctuations have been more extreme.
Quotas reached an all time high in 2006 that is 1.6 million metric tons and in 2010, just
four years later, quotas dropped 49 percent an all-time low of 813,000 metric tons.
The North Pacific Fishery Management Council won’t set harvest guidelines for Alaska
Pollock until December BUT the Council has typically followed the agency’s recommendations
and next year’s quota is expected to be about 56 percent greater than in 2010.
Quotas are expected to rise even more in 2012 reaching 1.6 million metric tons.
Alaska Pollock represents 40 percent of global whitefish HOWEVER surging supply may not influence
prices as one would think. The increased quotas are coming at a time
when supply of farmed products including Tilapia and Pangasius is leveling off after years
of CONSIDERABLE growth. Reduced Asian production can be attributed
to labour shortages while Tilapia production in China is further hindered due to flooding
in the Hainan province. Increased Alaska Pollock quotas will make
up for the reduced farmed whitefish supply and will also help to meet increased demand
that is surfacing in emerging markets MOST NOTABLY China AS WELL AS Russia and Brazil.
In other news SHRIMP The coldwater Shrimp market appears to be
picking up. In 2009 Oregon produced about 22 million pounds
of Shrimp DOWN FROM over 25 million pounds in 2008.
The primary cause for reduced production last year? - POOR MARKET DEMAND.
BUT THIS YEAR two underlying factors are contributing to flourishing demand overseas:
FIRST Atlantic fisheries in both Canada and New England are cutting quotas CONSEQUENTLY
European customers who traditionally purchase the Atlantic species are switching to the
Pacific variety. Second a softening dollar against currencies
in key markets notably the euro and British pound is creating increased demand.
Oregon’s 2010 Pink Shrimp fishery closed on October 31st.
No figures are in yet BUT word on the street is that production levels have boosted in
an effort to meet the rising global demand.
SO what does this mean for purchasers?
Prices are definitely trending upwards for both Atlantic and Pacific coldwater Shrimp.
In early November frozen Pandalus borealis from Atlantic Canada was being sold for up
to 4 dollars per pound for 175-250 count. Prices for the Pacific Northwest variety Pandalus
jordani at a 250-350 count are about 10-15 percent lower than their Atlantic counterpart
due to their small size but are still higher than recent averages.