W10: Weekly Seafood Update

Crab

Russia: The List of Vessels Supplying Crab From Russia to Saudi Arabia Has Increased by 7 (Mar 9)

The State Food and Drug Administration of the Kingdom of Saudi Arabia has expanded the list of approved Russian vessels by granting access to the domestic market to 7 crab production vessels. Currently, 39 Russian organizations are included in the lists of enterprises that have the right to supply processed and unprocessed fish products to the kingdom. Rosselkhoznadzor will continue to expand the list of Russian suppliers to Saudi Arabia.

China: Chinese Port of Ningbo-Zhoushan Has Opened for the First Time to Import King Crab From Russia (Mar 7)

The Chinese port of Ningbo-Zhoushan has opened for the first time to import king crab from Russia, in addition to ports in Shanghai and Tianjin that already handle crustaceans. On Feb. 5, a Russian ship docked at Ningbo Zhoushan Port and offloaded 74.3MT of blue crab for customs clearance. The crab was to be shipped mainly to Shanghai, Guangzhou, Shenzhen, and other cities in mainland China, as well as to the Hangzhou seafood trade market. Live Russian king crabs sell for up to USD 110/kg in markets in China.

Lobster

Vietnam: The Chinese Market Eats Lobster Strongly (Mar 7)

Cam Binh commune (Cam Ranh city) is one of the main lobster farming areas in Khanh Hoa province. Currently, the whole commune has more than 400 rafts, and about 15K cages with an output of about 300MT/year, mainly green lobster. According to the records, from January 8, when China reopened the land border gate after 3 years of temporary closure due to the impact of the Covid-19 epidemic, the trading of fresh lobsters in the area of Cambodia was vibrant again. Especially near the Lunar New Year, the consumption demand of the Chinese market increased, and businesses received many orders, hence stepping up the purchase of lobsters to supply. Meanwhile, according to lobster farmers, before January 8, when China did not open, the consumption of lobster was slow because it was mainly consumed domestically. There was a time when the price of blue shrimp dropped sharply to only USD 23.33/kg (VND 550K) (type 3 fish/kg). However, from January 9 onwards, the price of blue lobster began to be purchased by traders inching up, sometimes up to USD 36.06/kg (VND 850K).

Octopus

Indonesia: Prices of Frozen Giant Octopus Increased in East Java in W10 (Mar 9)

Due to low availability and changing weather in the East Java region in Indonesia, frozen giant octopus (species: Octopus cyanea) processed in the form of whole cleaned flower shape with 90% net weight and 10% glazing is being offered at a higher price and, especially as demands from Europe and some Asia countries like South Korea are picking up. Supplier is offering at USD 5.30/kg, USD 6.80/kg, USD 810/kg, and USD 8.30 for each respective size 500- 1Kgr, 1K-2Kgr, 2K-3Kgr, and 3Kgr CFR Europe for W10. The prices increased more than in the previous week when prices stood at USD 4.70/kg, USD 6.20/kg, USD 7.50/kg, and USD 7.60/kg for each similar size mentioned.

Salmon

Russia: Russia and China Will Discuss the Restoration of Sturgeon and Salmon in the Amur and Ussuri (Mar 7)

Russia and China will discuss issues of joint protection of sturgeon and salmon species in the border waters of the Amur and Ussuri rivers. Sergey Mikheev, a representative of the Federal Agency for Fisheries in China, told TASS on Mar 7 that these consultations will be held as part of the 31st session of the Russian-Chinese mixed commission on cooperation in the field of fisheries.

Norway: Cermaq Warns of Salmon Tax Consequences (Mar 8)

A senior Cermaq executive has spelled out several likely consequences if the Norwegian government decides to implement its salmon tax without changes. Lars Galtung, head of sustainability and communications at the company, accused the government of rushing through its proposals for a so-called “ground rent” tax without due consultation. He hoped the Finance Ministry would appreciate that cultivating salmon was not like producing oil, gas, or wind power. Galtung said; “The salmon is created, nature is reproduced, at a cost of around USD 4.75/k (NOK 50). Production is not tied to one place in the same way as the aforementioned natural resources; it is relatively mobile and can be moved on land, at sea, or other places where farming takes place close to the coast.” He warned that the proposed tax levels would kill competitiveness and force industry leaders to move out of the country.

Turkey: Target for Food Exports to Japan Is USD 1B in the Long Term (Mar 10)

Turkey aims to reach USD 500M in the short term and USD 1B in the long term for food exports to Japan. For 7 years, Turkey has been implementing the Turquality Project, which includes Far Eastern countries such as South Korea, Japan, and China. Turkey is a dominant player in the Asia-Pacific market for seafood, dried fruits, cereals, legumes and oilseeds, fruit and vegetable products, olives, and olive oil. Turkey stands for its quality of product quality and affordable prices.

Faroe Island: Faroes Government Moots Tax Hike for Salmon Farmers (Mar 10)

The new Faroe Islands government is proposing a big rise in its salmon ground rent tax, doubling the rate to 20% at the top end. The surprise news was disclosed last night by Bakkafrost, the country’s largest salmon farmer which said the proposal has gone out to the industry for consultation before it is voted on by the Faroese parliament. The rise is higher than that suggested by the previous administration but Faroe Islanders elected a new Social Democrat-led government in December. The new proposal consists of 9 tax rates which range from 0.5% to 20%, calculated around the Fish Pool price index and production costs. At the highest level, the rate will be 20% if the Fish Pool price exceeds the equivalent of USD 11.30/kg (NOK 119) which is the price Norwegian buyers were paying for the best quality fish in W9.

Shrimp

India: Farmers Are Delaying the Harvest of Shrimps for US Demand (Mar 9)

Since February 2023, Indian exporters have been getting good demand from China for Vannamei HLSO (51/60 counts). During W8-10, the prices were around USD 5.80-6/kg as many exporters have already finished their supply. The packers are waiting for the next harvest in April 2023, but there is speculation in the market as many Indian farmers expect to delay harvest in anticipation of the US demand. All these factors are expected to keep the prices bullish until the next harvest arrives in the market.

Argentina: The Provincial Water Season of Wild Shrimp Is Ending During W10 (Mar 6)

In Argentina, the Provincial water season of wild shrimps is ending during W10. Most exporters ended the season, and vessels are returning to the ports. The season presented a 30% volume increase compared to 2022. The prices are under pressure due to the volume and slow demand. Exporters expect to start the National waters season early and empty the cold storage as soon as possible.

Squid

Argentina: One Month Suspension of Argentinian Squid Season Starting in W10 (Mar 6)

The Argentine squid season that began in January will be suspended for a month, starting on W10. The low level of captures and the money loss on every tide are the main points to analyze a suspension of the season. Fishermen have asked the Argentine government to open the North zone in an attempt to improve the level of catches, and the government has stated it's too early for the proper development of the species. Fleets return to the port, waiting for the opening of the north season or season improvements. Catch volumes were 5-6MT per day on vessels that required 18-20MT.

Falklands Island: 2022 Was a Boom Year for Falklands Squid and Finfish Fleets (Mar 11)

Fisheries authorities in the Falkland Islands have said that 2022 was a bumper year for the squid and hake fishing fleets licensed by the territory. 16 ships caught a remarkable 101.17K MT of loligo squid; a catch that was exceeded only in 1989, when 118.12K MT were landed, although that record catch was achieved by almost three times as many ships. The haul of hake in 2022 was even more remarkable. Trawlers netted 62.83K MT of the finfish species, making it the highest catch of this species since the Falklands established its exclusive economic zone in the mid-1980s. The latest figures for the third important catch, Illex squid, are not yet in, as the season is ongoing. But the authorities in Pt Stanley reported that the migratory Illex squid had moved into the Falklands-controlled zone early, and the jigging ships, which are owned by companies in the Far East, had been authorized to begin fishing on 10th February.

Tuna

Ecuador: China Ramps up Tuna Supplies to EU (Mar 7)

Between 2015 and 2022, Ecuador's share of this market declined from 32% to 26%, while China's share rapidly increased from 9% to 24%. Europe's purchasing policy of increasing its autonomous quota every two years (importing tuna from other countries without an agreement) worries the Ecuadorian industry because, as Bruno Leone, president of the National Chamber of Fisheries (CNP), explains, partially undermines the tariff incentives that Ecuador and the European Union materialized in a trade agreement signed in 2017. The Ecuadorian sector planned to bring this issue up for discussion, taking advantage of a visit to the country by the European Commission, which is seeking to test the efforts that Ecuador is making to improve its production practices and combat illegal fishing.

Thailand: Police Want South Korean Ship Sent Home for Illegal Fishing (Mar 9)

The South Korean vessel “Sunflower 7” will be asked to leave Thailand as soon as possible because it is suspected of using illegal fishing gear and fishing in waters it had no permission to fish in, Deputy National Police Chief General Surachet Hakparn said on Mar 9. “We all have the responsibility to show the world that Thailand does not support illegal, unreported, and unregulated fishing,” Surachet said. The vessel has been docked at Bangkok Port in Khlong Toei district since January 24, where it has tried to unload more than 4K MT of tuna worth USD 7.22M, said Surachet, who supervises the police task force on illegal, unreported, and unregulated fishing. A joint investigation by police and the fisheries department found that the ship might have been using fish aggregating devices prohibited by the Western and Central Pacific Fisheries Commission. The devices often used to attract tuna, are banned because they attract other species, like dolphins, as well as immature fish to nets.