Fresh and frozen seafood markets retract on Easter Holidays

Seafood

Brazil

Market & Price Trends

Caio Alves

Published Apr 16, 2022

Retail of fish and hake is expected to decline by 20% this Easter holiday, compared to the 2021 season. According to the Brazilian Association of Fish Industries (Abipesca), the loss of purchasing power has reshaped the consumption choices of protein traditionally consumed during the period.
A similar case was perceived in the cod business as the consumer has opted for lower quality items, in which the sale of chips or similar species has grown. Abipesca assessed that the pessimism with sales caused 30% of the sector's production to be stored in cold rooms, far from the market reach, to hit retail gradually. As the consumer did not buy as much fish as usual, the behavior resorting led buyouts to chicken meat instead. On the other hand, classes E and D (less purchasing power families) consumed more canned fish, often the only protein possible to subsidize. Not only opening a path for new business joints for canned goods but also putting further pressure on aluminum based packages.
This marks the third year of decline in sales since the pandemic started. The sector expected a recovery this year, however, the impact of inflation on household consumption did not support estimates.
According to Fundação Getúlio Vargas (FGV), in addition to unemployment, the number of workers who receive up to one minimum wage has grown, while those with an income greater than one salary has suffered a sharp reduction.
The price of traditional Easter foods, such as olive oil and cod, did not even rise much in price, but they are more expensive than the average for the most common foods, scaring consumers away. Accumulated inflation accounts for 11.3%. In reference April 2021, the sames accumulated index was only 6.5%.