In W44 in the salmon landscape, the global production of wild salmon reached its highest point of 1 million metric tons (mmt) in 2023. Russia took the leading position with a production of 600 thousand metric tons (mt), followed by Alaska in the United States (US), with approximately 300 thousand mt. Japan's estimated production is between 70 thousand mt and 80 thousand mt.
As a result of the bumper harvest, the prices of head and gutted (H&G) pink salmon have dropped significantly to less than USD 2,000/mt, leading to a 56.52% year-on-year (YoY) decrease. North American processing companies show little interest in buying goods as they need more confidence in the future market. It is estimated that only 30% of the wild salmon has been processed in US processing plants, and most stocks are still with the fishing companies. This is posing a challenge in terms of selling off the remaining stocks before the new catch starts in May-24. Despite the challenges, the industry actively seeks new opportunities. Some Russian companies, in particular, are exploring the Chinese market to expand their business.
According to the Alaska Department of Fish and Game (ADF&G), Alaskan fishermen had a bumper harvest this year, catching over 919.7 million pounds (lbs), representing a 43% YoY increase. Despite the abundance of fish, this year's overall salmon harvest value dropped to USD 398.6 million, a significant 45% YoY decrease. The decrease was mainly attributed to the weak international market that had a significant impact on ex-vessel and wholesale salmon prices. Furthermore,2023 has proven to be financially challenging for Alaska processors as salmon prices have taken a major hit.
In Russia, the 2023 salmon season is closing, with only some areas continuing their fishing operations. As of August 22, 2023, the Pacific salmon catch in Russia reached 545 thousand mt, resulting in a 169% YoY increase and a 16.4% increase compared with the last odd year. The actual salmon catch for this year has surpassed the initial forecast of Russia’s Federal Agency for Fisheries (RFAF) of 512 thousand mt. Moving into the second half of the season, it is expected that fishery activities will decrease.
The Kamchatka region has remained the leading producer of salmon in the Far East, catching over 475 thousand mt, resulting in a 12.5% YoY increase and accounting for about 87% of the total Far Eastern salmon catch. The Sakhalin region also had a successful year, with a catch of 32 thousand mt, twice as high as last year. Similarly, Khabarovsk saw an increase in production with over 20.5 thousand mt, resulting in a 39% YoY increase. In the Magadan region, the catch volume exceeded 14 thousand mt, representing a 48% YoY increase.
Lastly, the drought that hit the British Columbia (BC) province of Canada this summer had a severe impact on the province's rivers, which in turn affected the already vulnerable salmon population. It is crucial to take immediate measures to protect the salmon from the drought plaguing the West Coast. Even as of October 24th, more than 40% of BC's water basins are still experiencing Level 5 drought (the most extreme rating), highlighting the situation's urgency. It is essential to consider the long-term effects of climate change on the environment and the salmon population.