US Frozen Crab Imports Declined 24% in Jan-Nov 2022 as Sanctions to Russia Hit

Published 2023년 1월 9일

US imports of frozen crab fell 24% YoY in Jan-Nov 2022, breaking a streak of 3 years of annual growth. The bulk of the decline came from Russian-origin imports, which were affected by trade sanctions following the Russia-Ukraine conflict. Despite a lower supply, prices have fallen considerably, which signals demand has also weakened.

According to the latest data from USDA's Foreign Agricultural Service (FAS), the US imported 68.7 thousand mt worth $2.14 billion of frozen crab (HS Code 030614) during January-November 2022, reflecting a decline of 24% year-over-year (YoY) in volume and 17% YoY in value. 2022 was the first time in four years that the imported volume registered an annual decline.

Meanwhile, the average import price (or value per kg) during the Jan-Nov 2022 period was $29.56/kg, up 3.4% YoY. It's worth noting that the average value per kg reached a multi-year high of $50.22/kg in January 2022, but fell 66% through the year to $17.17/kg in November.

Volume imported from each of the five major origins: Canada, Russia, Mexico, China, and Norway all registered annual decreases. However, the quantity imported from Canada, the largest origin, declined only 3% YoY to 44.7 thousand mt, while imports from Russia, the second largest origin, declined 60% YoY to 11.9 thousand mt. Thus, Canada's share in the US frozen crab import market rose to 65% of the total from a previous 51%, while Russia's share declined from a previous 33% to a share of 17%. The cause of this much sharper decline in Russian-origin imports is the result of the trade sanctions imposed by the US on Russia after the start of the Russia-Ukraine conflict in early 2022.

Source: Tridge and USDA FAS

Meanwhile, Russia’s frozen crab exports in the majority of 2022 were redirected to other markets such as China, Japan, and South Korea, which all saw YoY increases in imports, according to a report from the Russian Association of Fishing Fleet Owners issued in December 2022. The same association reported that frozen crab production in 2022 was practically the same as in 2021, amounting to 91 thousand mt.

In addition to the decline in US imports of frozen crab, the domestic supply of several types was also lowered , such as the case of Alaskan snow crab, for which the government canceled the 2022-2023 fishing season in October 2022 due to lower stock than the regulatory threshold. In 2021, total Alaskan snow crab landings had totaled 20 thousand mt.

Despite a lower total supply, import prices are currently trading below the 5-year average. This indicates that US demand for frozen crab has fallen due to a substitution effect for cheaper seafood products.