W5: Weekly Seafood Update

Salmon

Global: Supply of Wild Salmon Is Set to Increase, Except for Sockeyes (Feb 2)

Global supply of wild salmon is poised to increase in 2023, particularly pink salmon, which alternates run sizes on a two-year cycle. As a result, according to OBI Seafoods International Sales Manager Ron Risher, speaking during the salmon panel at the National Fisheries Institute Global Seafood Market Conference from 15 to 19 January in La Quinta, California, salmon runs in Alaska and Russia were down in 2022 but 2023 could see a big glut of some species. The one species in 2022 that saw large runs was sockeye, which resulted in bottlenecks at processing plants and a glut of headed-and-gutted sockeye compared to fillets. 

Canada: Salmon Farm Closures in British Columbia Trigger Record High Prices (Feb 1)

As food prices continue to soar, government decisions to shut down salmon farms in British Columbia have put the sustainably grown affordable protein out of reach for many Canadian families and grocers. Spot prices for West Coast fresh Atlantic salmon are at record highs for this time of year, up 20% over the last few years, with the price jump being driven by reduced supply of BC-grown farm-raised salmon, said the Canadian Aquaculture Industry Alliance (CAIA).

Chile: Chilean Farmed Salmon Exports in Key Markets During 2022 (Feb 2)

During W5, Chilean salmon farming producers reported shipments to the United States increased, Japan remained stable, and exports to Brazil slightly decreased amid higher prices. Chile's global salmon and trout exports increased by 3.8% in 2022, with the growth in the United States market and recovering demand in China. Shipments increased from 723,690 MT in 2021 to 751,259 MT in 2022. The value of these shipments increased by 27.3% to USD 6.6B. Exports to the United States were 251.1K MT, an increase of 4.8% in volume and 24.7% in value, USD 2.85B. Shipments to Japan increased by less than 1%, with 160.4K MT. However, exports to Brazil decreased by 3.7% in volume 122,567 MT, contrasting with a 20.4% increase in the value of shipments to USD 804M. Regarding China, shipments rose 58% to 25.4K MT in 2022, with their value nearly 83% higher than in 2021, at USD 188M. And shipments to Russia decreased by 30% at 35.3K MT.

Shrimp

Europe: EU Sets the Fishing Conditions of the Fleet That Affect the Red Shrimp (Jan 31)

The European Union (EU) has set the fishing conditions for the fleet in general for 2023 and in the Mediterranean in particular, in separate regulations published on Jan 31 in the Official Journal of the EU. One of the European Council rules establishes that, by 2023, the fishing opportunities for certain fish stocks applicable in EU waters and, in the case of European fishing vessels, in certain non-EU waters. In addition, fishing opportunities for certain deep-sea fish stocks are set for 2023 and 2024. This indicates the quota mechanism, the conditions for landing catches, fishing limitations, corrective measures and closed seasons for certain species, the prohibition of certain catches, fishing authorizations and the measures that are applied in each of the fishing zones, among other aspects. Among the species included in this second standard are the red coral and dolphinfish, the red shrimp from the Mediterranean, the anchovy and the sardine from the Adriatic Sea; European hake, Norway lobster, European sole and red mullet in the Adriatic; the Moorish shrimp, the sea bream in the Alboran Sea, and the sprat and turbot in the Black Sea

Vietnam: Why Is It Difficult for Vietnamese Shrimp to Compete With Indian and Ecuadorian Shrimp? (Jan 31)

The level of shrimp farming in Ecuador and India is growing, and if they are successful in deep processing, it will be even more difficult for Vietnamese shrimp on the journey to reach a turnover of USD 10B. According to Mr. Hoang Thanh Vu, in India, the price of whiteleg shrimp 40 heads/kg is only USD 4.90/kg (115K VND) while in Vietnam it is USD 5.96/kg (140K VND). As for Ecuadorian shrimp, 40 shrimp/kg is priced at USD 4.47/kg (105K VND) and 100 shrimp/kg is only USD 2.64/kg (62K VND) while Vietnam's 100 shrimp/kg is USD 3.96- 4.00/kg (93K- 94K VND). Why does Vietnamese shrimp cost so much more? At the seminar "Resolving difficulties for Vietnamese seafood to rise to the top of the world" held in Soc Trang, many delegates said that, due to the low success rate of shrimp farming in Vietnam, only about 40% while Thailand is 55% and India is 47-48%, leading to very high cost of shrimp farming. 

South Korea - Tridge Analysis: Korean Fishery Product Imports Rise 13% Yoy to USD 6.47B in 2022 (Jan 30)

In the case of Vietnam, the largest imported product in terms of value was frozen shrimp and prawn, which was also the top imported HS Code 03 product in Korea in 2022, with a total value of USD 592M. Vietnam supplied 49% of this product's value. Imports from this location grew 23% in value and 16% in volume, underlining real demand growth. Other products where Vietnam was the top origin include frozen octopus, which experienced strong growth in value but mild growth in volume.

India: Early February Marks the End of the Season Production of Smaller-Size Shrimp in Bengal (Jan 30)

The production season for the smaller size of Vannamei shrimps (21/30 & 31/40) in the Bengal region expects to end by early February 2023. Domestic traders are optimistic about the high demand from Bengal exporters for bringing smaller-size production from Orissa and Andhra regions. High fuel prices in India will likely increase the cost for Vannamei exporters from this region. Some South Indian packers, especially from the Tamil Nadu region can attract buyers from the Far East countries due to their low pricing and whiter shrimp quality which has been a Unique selling point (USP) of Bengal region shrimps until W4.

Turkey: Shrimp Abundance After Hunting Ban in Tekirdağ (Feb 2)

In January, a hunting ban was imposed for shrimp, sole and halibut across Turkey. With the lifting of the fishing ban starting at 24.00, the small boat fishermen in Tekirdağ also sailed to the Sea of Marmara. The fishermen began to return to the harbor with the first light of the day. Kilos of shrimps caught in the fishermen's nets on the rotating boats were brought to the port in crates. On the first day of the ban, fishermen said they were happy with the abundance of shrimp caught in their nets.