W4: Weekly Seafood Update
Crab
US: Market Is Facing a Shortage of King Crab Without Russian Supplies (Jan 25)
Stocks of Russian king crab in the US will run out in the next few months and there will be no viable replacement options, said Roman Tkachenko, CEO of Direct Source Seafood, a major importer. Last May, prior to the June ban, there was a sharp increase in imports of Russian king crab, and there is still some volume left for sale. “Due to the sanctions against Russia, since June, the products have not arrived. King crab will become very scarce in 2023. Then the king crab fishery in Bristol Bay will also be closed for the second year in a row,” said Janice Schreiber of Urner Barry, who was an analyst with the group. Meanwhile, US market prices for king crab are falling despite no imports since last June, when a ban on Russian products went into effect, Tkachenko said.
Indonesia: Relatively Good Pricing of Blue Swimming Crab for Season 2023 (Jan 23)
In Indonesia, the blue swimming crab is in season in January 2023. The producers of pasteurized crab meat can meet their raw material needs with relatively stable selling prices in the range of USD 4/kg (IDR 60k/kg). The producers choose to obtain from the local supply since these rates are better than import prices. Nevertheless, some manufacturers still submit applications for import permits in anticipation of the off-season, when the supply of blue swimming crab will likely decline, and the price will probably increase.
The National Agri-Food Health and Quality Service (Senasa) certified the first export of 10MT of king crab to the United States, in its presentation of the finished product direct to the gondola from the town of San Julián, province of Santa Cruz. In that Patagonian city is the processing establishment No. 5183, the only one in the country dedicated exclusively to this product, with 170MT produced in the year 2022. The export of king crab is carried out annually in large volume packages to finish its process in the country of destination, so this export constitutes a novelty as it is a finished product for direct commercialization in the retail market, which generates greater added value and employs more labor on land, creating sources of work of great importance for the town of San Julián. Senasa's Southern Patagonia Regional Center carries out safety controls and certification of fishing products in Puerto San Julián through the staff of its Office in that city.
Egypt: USD 508M in Egyptian Fish Imports in 2022 (Jan 29)
The report of the Central Agency for Public Mobilization and Statistics indicated that Egypt's total imports of fish value amounted to USD 508.83M during the month of October 2022. The report stated that the imports of crabs, lobsters and squids totaled to USD 32M.
Octopus
US: Sales of Indonesian Octopus Is Slowing Down in the US in W4 (Jan 27)
Over the years, the USA has been the primary market for frozen ball-packed Indonesian giant octopuses (Octopus sinensis & Octopus cyanea). Demand for Indonesian octopus from the USA has decreased in W4 since the end of 2022. Due to persistent slow sales and falling prices, several US importers are left with high octopus inventories. As the result, Indonesian suppliers are competing fiercely to give the best price offers to US buyers to secure sales. The majority of US buyers are still hesitant to accept fresh shipments of octopus and will either place intense pressure on prices or restrict purchases to the preferred big sizes of 2-4lb and 4-6lb and mix the octopus with other foods in a container.
Indonesia: Indonesian Supplier Providing Lower Octopus Prices to Boost Sales in 2023 (Jan 26)
Early in 2023, a supplier in East Java aggressively offered reduced prices for frozen gigantic octopus flowers with a standard of entirely cleaned 90% net weight with 10% glaze for the EU market. To boost their sales, the supplier is currently offering the giant octopus of the mentioned specifications at USD 4.70/kg, USD 6.20/kg, USD 7.50/kg, and USD 7.60 for each respective size 500-1000gr, 1000-2000 gr, 2000-3000gr, and 3000gr CFR Europe. The prices are significantly lower than in December 2022, when prices stood at USD 5.70/kg, USD 6.70/kg, USD 8.50/kg, and USD 8.70/kg for each similar mentioned size.
Salmon
Prices for fresh Chilean Atlantic salmon fillets for the North American market before the end of W3 experienced an increase of USD 0.25/lb. Prices stood at USD 6.50-6.70/lb for the 2/3 lbs and USD 6.60-6.80/lb for the 3/4 lbs in W4, all FOB MIA. Despite the price increase, the industry also experienced a 4% rise for shipments during W4. The Fresh Chilean fillet market continues to be firm across all sizes. Supplies are adequate amid an active demand and noting upward pricing pressure due to the lack of salmon from the Canadian West Coast.
Canada’s Department of Fisheries and Oceans (DFO) and the Canadian Science Advisory Secretariat (CSAS) have published a peer-reviewed science response report that concludes that sea lice on farmed salmon does not impact sea lice levels on wild juvenile salmon in British Columbia. This comprehensive CSAS report adds to the nine previous CSAS science reviews (2020) on salmon aquaculture in BC, that concluded “minimal risk” to Fraser River Sockeye salmon from all relevant fish pathogens of concern. The current report indicates that there is no statistical correlation between sea lice counts on wild and farmed populations of salmon – meaning that the presence of farmed salmon does not appear to have a measurable impact of sea lice counts on wild salmon populations.
The price for Chilean fresh Trim D Atlantic salmon fillets increased by USD 0.15/lb WoW by the end of the W4 in the United States market, representing an increase of 2.3%. Prices stood at USD 5.65-5.85/lb for the 2/3 lbs, and USD 5.75-5.95/lb for the 3/4 lbs, all FOB MIA prices.
Spain: Confusion in the Smoking Industry Over a Tax on Norwegian Salmon (Jan 29)
The smoked fish industry warns of the "chaos" that is generating a tax increase on salmon in Norway. Problems with suppliers, difficulties in complying with the Food Chain Law and uncertainty despite the fact that there are good forecasts for food consumption. Norway, a leader in the export of salmon, has introduced in January a 40% income tax increase on its aquaculture production that would raise the tax rate to approximately 60%, and that worries smoked manufacturers about the costs and because it is altering the contractual relations to import it. Among its consequences, there are problems when calculating the price and an operation with little foresight that also makes it difficult to comply with the Food Chain Law, according to the Spanish Association of Manufacturers of Smoked Fishery Products (Anapa).
Turkey: Turkish Salmon to Be Introduced in Japan (Jan 23)
In the written statement made by DKİB, it was stated that the promotional activities for Turkish salmon, which is among the important export products of the Eastern Black Sea Region and raised in cages established in the Black Sea, continue intensively. In this context, a trade delegation program will be held with companies in the sector to Japan, which is determined as the target market for Turkish salmon, on January 28-February 4.
Turkey - Data Analysis: Wholesale Prices of Imported Salmon in Turkey Rise to Fresh 27-Week High (Jan 27)
In W4, 2023, wholesale imported salmon prices in Izmir, Turkey rose 12% WoW and 17% MoM to a fresh 27-week high of USD 10.91/kg. YoY, prices are estimated to be 122% higher. Turkey has increased its domestic aquaculture production of salmon, with a reported increase of 50% YoY in 2023. However, this product is mostly aimed for export. In addition, there were reports of adverse weather in the Black Sea Region this January, therefore temporarily lowering domestic supply, which caused the recent sharp rise in imported salmon prices. Turkey has ramped-up its domestic salmon production over the years, and it exported 50K MT of this product in 2022, making the top three of aquaculture exports out of Turkey last year.
Egypt: USD 508M in Egyptian Fish Imports in 2022 (Jan 29)
The report of the Central Agency for Public Mobilization and Statistics indicated that Egypt's total imports of fish value amounted to USD 508.83M during the month of October 2022. Salmon fish amounted to USD 19.36M.
Shrimp
According to the Vietnamese Association of Seafood Producers and Exporters (VASEP), Vietnam’s shrimp export value rose 11% (YoY) to USD 4.3B in 2022. Growth in exports to Europe, China, Japan, Korea, Australia and other countries managed to more-than-offset losses in exports to the US. Processed shrimp products experienced the fastest growth. Exports of processed vannamei shrimp increased by 11% YoY, while exports of processed black tiger shrimp rose 15% YoY. Meanwhile, exports of fresh or frozen vannamei shrimp increased by 3% YoY, while exports of fresh/frozen black tiger shrimp declined by 7 YoY%. Indeed, according to local reports from Vietnam, shrimp companies succeeded in making profits by focusing on processed products. (Continue Reading)
Russia: The Number 1 Export Destination for Iran’s Shrimp (Jan 23)
Mehdi Shakouri pointed out that nearly 20K MT of shrimp have been exported to Russia so far in 2023. In the past year, the figure was 10% of the mentioned amount, he underlined. Around 60 to 70% of farmed shrimp in the country is exported annually, which accounts for 40K to 50K MT, he added. The official went on to say that China, Vietnam, European countries, France, and Spain are among other export destinations for the product. In 2023, 61K MT of shrimp were harvested from five provinces, showing a 5% hike compared to the previous year. There has been a 30 to 90% surge in shrimp production in Sistan and Baluchestan, Khuzestan, Golestan, and Bushehr, he further noted.
Ecuador: Shrimp Prices Will Start to Decline From 2023 (Jan 24)
Average prices for Ecuadorian HOSO shrimp were USD 4.40/kg for 20/30/kg shrimp; USD 4/kg for shrimp size 30/40; USD 3.55/kg for 40/50 shrimp; USD 3/kg for size 50/60; USD 2.60/kg for 60/70; and USD 2.30/kg for 70/80; USD 2/kg for 80/100; USD 1.80/kg for 100/120; and USD 1.60/kg for 120/140 in W3 of 2023 (January 16-22). This means an increase ranging from USD 0.05/kg to USD 0.20/kg for larger sizes compared to W1 and W2. However, despite this increase, prices are still far behind previous years and are among the lowest in the world. This is a concern for manufacturers.
Japan - Data Analysis: Black-Tiger Shrimp Wholesale Prices in Japan Climb to Fresh 47-Week High (Jan 27)
Wholesale prices of imported black-tiger shrimp in Tokyo, Japan, rose 6% WoW and 4.7% MoM to USD 19.64/kg, the highest level in 47 weeks. In YoY terms, however, prices were mostly flat, with an increase of 0.4%. After plunging to their second-lowest level at USD16.03/kg in over a year in mid-October 2022, prices then began an upward trend as demand began to rise ahead of the New Year Holiday. The rise toward late January is likely due to global demand increasing for the Lunar New Year Holiday, widely celebrated in neighboring countries in Asia, including Vietnam, which is one of the main black-tiger shrimp exporters. The wholesale prices' trend has also matched the one of Japanese import prices of overall frozen shrimp, which reached a multi-year high of USD 11.35/kg (JPY 1,479) in late 2022.
According to industry sources, Bangladesh's shrimp export business has suffered another major setback as the current global economic downturn has also taken a heavy toll on the global food market. As a result, one of Bangladesh's main exports, shrimp, has lost 80% of its former demand in the world market. In addition, export prices have fallen by 40%. Exporters and traders have urged the government to approve the commercial farming of vannamei shrimp as soon as possible. Only 14 out of 61 frozen food exporters are buying shrimp from local markets in shrimp production areas, one exporter said, as a result of a sharp decline in demand over the past year. As a result, shrimp farmers and local traders suffer huge losses.
Tuna
France: Scientists From French and Spanish Institutions Discuss the Future of the Tuna Fishery (Jan 25)
Scientists from French and Spanish institutions met with European tuna producers to discuss at a European level the challenges facing stakeholders. Representatives from the Research Institute for Development (IRD) in France and the Spanish Institute of Oceanography (IEO) and AZTI in Spain attended and spoke about their needs to meet the growing challenges of science applied to fisheries, as well as their concerns. Some of them criticized that the models presented in international fisheries management bodies are becoming more and more complex, hindering further exploration of every proposal and topic.
