W8: Weekly Seafood Update
Octopus
Indonesia: Price Decline of Frozen Baby Octopus in West Indonesia During W8 (Feb 24)
Baby octopus from Indonesia (Octopus membranaceus) is commonly exported to China, Taiwan, Korea, and other Asian nations. The price of a whole round of frozen baby octopus has decreased WoW. In W8, offers are priced at USD 3.90/kg from Sumatra for CFR Asia main ports basis. In January, the price was USD 4.50kg. The catch of baby octopuses remains stable at around 1K kg daily.
Salmon
Canada: Farmers Set to Fight Latest Discovery Islands Ban (Feb 20)
Mowi has signaled that it is ready to take legal action if the Canadian government goes ahead with its threat not to renew salmon farming licenses around the Discovery Islands in British Columbia. Fisheries Minister Joyce Murray said in W7 that the licenses held by larger companies in the region, also known as the Laich-kwil-tach and Klahoose First Nations territories, will not be renewed. Canada’s Federal Court in 2022 ordered that the decision by Joyce Murray’s predecessor, Bernadette Jordan, to rescind all finfish farming licenses in the Discovery Islands region should be set aside and the question should be reconsidered.
Canada: Fisheries and Oceans Minister Reflects on Decision to Close Fish Farms on B.C. Coast (Feb 21)
For years, industrial fish farms have been blamed for a decline in wild salmon. In W7, Canada’s Fisheries and Oceans Minister announced to close them. Canada’s Fisheries and Oceans Minister Joyce Murray recently made some big announcements to move Canada towards its goal of protecting 30% of oceans and waterways by 2030. One significant benefit for wild salmon and industrial fisheries was to close 15 fish farms on the Discovery Islands, a group of islands between Vancouver Island and the main coast of the province. The area is regarded as a major highway for wild juvenile salmon swimming toward the ocean. Many experts believe the decline in wild salmon is caused by fish farms, which exacerbate sea lice latching onto and killing the fish.
Russia: Preparing a Reform for the Salmon Market (Feb 22)
Priority in the distribution of sites for the extraction of wild salmon will be given to business representatives who develop infrastructure and build fish processing plants. A new mechanism for allocating sites for wild salmon fishing will appear in Russia, with priority given to conscientious business representatives who are developing infrastructure and building fish processing plants. The head of the Federal Agency for Fishery, Ilya Shestakov, said.
Norway: Salmon Prices Shoot Past USD 9.64/KG (Feb 23)
Fresh salmon prices in Norway soared to well over USD 9.64/kg (NOK 100), a figure not seen since May 2022. According to Statistics Norway, which monitors trends regularly, they rose by more than USD 0.96 (NOK 9.92) up 10.6% to USD 9.95/kg (NOK 103.22) during W7. It is the steepest percentage increase for some time and its scale has surprised even some salmon company chiefs. Seasonal weather factors could partly be behind the sharp movement. Severe storms have affected the country in recent days, disrupting transport and fish farming activity in several areas. This has led to a shortage of fish, forcing up prices, but even so, a figure of over USD 9.64/kg (NOK 100) is highly unusual for this time of year.
Livestock and fisheries have long been called out for being the top contributors to greenhouse gas emissions in the agriculture industry. New research suggests that it is all because of conventional animal feed. In a recently published study in the journal Current Biology, scientists share that at least 78% of chicken and 69% of salmon industries’ contribution to environmental degradation can be accounted to the animal feed used. In terms of greenhouse gas emissions, more than 55% of both industries’ contribution also comes from the type and processing of animal feed. This comes as a surprise, especially since the chicken and salmon industries are known to be more environmentally efficient than beef, according to scientists. In addition to fish oil and fishmeal, the salmon industry also requires 2.3M MT of crops for feed a year, mainly oil crops, soya beans, and wheat.
Seaweed
EU: Amazon to Fund World’s First Commercial Seaweed Farm Nestled Between Offshore Wind Turbines (Feb 21)
The project, which will make the most of the space left between the wind turbines, is being managed by a consortium of researchers and partners from the seaweed industry, led by the nonprofit North Sea Farmers (NSF). It is expected to be put into operation by the end of this year. Amazon's funding for this farm will be USD 1.59M (EUR 1.5M) and will come from the Right Now Climate Fund's global fund. The amount planned for this project, Amazon explains, will provide the necessary investment to build a 10ha seaweed farm that is expected to produce at least 6K kg of fresh seaweed in the first year. The company estimates that if the algae farm spreads throughout the North Sea, occupying millions of hectares of free space that exists in wind farms, it could potentially remove millions of tons of CO2 from the atmosphere per year until 2040.
Shrimp
Ecuador: A Lesson for Vietnam From Ecuador’s Shrimp Exports (Feb 24)
Ecuador exported more than 1M MT of shrimp in 2022. This impressive achievement helped Ecuador to become the first country to reach the milestone of exporting 1M MT of shrimp. After reaching high export results in December, Ecuador’s total shrimp export volume in 2022 reached 1.061M MT. Total export value also reached a record of USD 6.7B. The main factors behind Ecuador’s success are attributed to the production slowdown in several Asian countries, and the modernization of the shrimp farming program in the last few years which has improved the competitiveness of Ecuadorian shrimp. Besides, the strong demand from China also plays an important role in boosting Ecuadorian shrimp exports. Ecuador’s shrimp exports in 2022 increased 26% in volume and 31% in value compared to 2021, mainly due to the recovery of exports to China. China is increasingly importing Ecuadorian shrimp. In 2013, Ecuadorian shrimp exports to China reached 37K MT, and increased to 590K MT in 2022, equivalent to a growth of 1.5K% in 10 years and a 32% of compound annual growth rate.
Vietnam: Shrimp Exports Fell by More Than Half (Feb 21)
According to the Vietnam Association of Seafood Exporters and Producers (VASEP), shrimp exports through most of the main markets fell sharply in January. Specifically, the export of this item to the US reached USD 23M, down 65% compared to the same period in 2022 (the strongest decrease among markets). Shrimp exports to the EU decreased by 55% over the same period to only USD 24M. As Vietnam's largest shrimp import market with 20.3%, shrimp exports to Japan last month only reached USD 29M, down 47% over the same period last year. VASEP said the reason for the sudden drop in exports was that January coincided with the Tet holiday, so international market demand dropped sharply. In addition, in the EU, purchasing power is affected by the impact of inflation and uncertainties related to the Russia-Ukraine war. In the US, this country is in oversupply.
Indonesia: Intensive Production of Shrimp Amidst Strong Competition in Global Market (Feb 21)
CNBC Indonesia together with the Ministry of Maritime Affairs and Fisheries of the Republic of Indonesia and PT Pupuk Indonesia held the Food Agri Outlook 2023 with the theme "Maintaining Food Security amid Uncertainty" to thoroughly explore the potential and strategies for maintaining food security in the country. Secretary General of the Indonesian Shrimp Forum, Coco Kokarkin in the Food Agri Outlook 2023 revealed several challenges in developing shrimp production in Indonesia. Currently, the problem of shrimp disease, high production costs, logistics, and financing are still challenges for shrimp farming. It is hoped that the government's support for market expansion to research and cultivation will become a strategy for developing shrimp production in the country.
Indonesia: The Reason Why the US Is More Interested in Ecuadorian Shrimp Than Indonesia (Feb 21)
The price of shrimp in Indonesia is currently experiencing a significant increase. This increase also had an impact on the Indonesian shrimp market in the world, which gradually began to decline. Secretary General of the Indonesian Shrimp Forum, Coco Kokarkin, said the high price of fish in Indonesia was caused by several things, namely, the amount of shrimp production in Indonesia was still inferior to other countries such as Ecuador, India, and Vietnam. On the other hand, the cost or cost of shrimp production in Indonesia is higher, especially for feed prices. As a result, shrimp markets in various countries were closed, especially in Ecuador. He said that at least 66% of the shrimp export market to America had shifted to Ecuador.
Indonesia: Shrimp Entrepreneurs Complain About Complicated Regulations and Expensive Energy (Feb 21)
Shrimp entrepreneurs complain that regulations and permits are still complicated to develop this commodity. This commodity is currently on the rise and is in demand worldwide, resulting in many new entrepreneurs, especially in the Sulawesi region. Secretary General of the Indonesian Shrimp Forum, Coco Kokarkin, stated this in the Food Agri Outlook 2023. He added that many entrepreneurs have complained about licensing that is similar and detrimental.
In W8, frozen shrimp wholesale prices in Mexico City remained trading flat at USD 8.32/kg (MXN 153). Prices have remained unchanged since mid-January, after declining slightly from USD 8.70/kg (MXN 160) in the December Holiday season. Behind the lull is typical slow demand during the cold two months following December. Nonetheless, it is expected that prices will face a rapid increase in the coming weeks, as February 22 marks the start of the Lenten season in Mexico, which typically sees an increase in demand for seafood.
China: Stable Prices of Ecuadorian Vannamei Shrimp During W8 in the Chinese Market (Feb 24)
The price of Ecuadorian Vannamei shrimp during W8 for size 40/50 stood at USD 6/kg and at USD 5.40/kg for size 50/60 to the Shanghai port. Prices have been stable for the past six weeks, with variations of USD 0.50/kg showing stability in supply and demand.
Iran: 61K MT of Shrimps Farmed Since Last March (Feb 24)
As announced by an official with Iran’s Fisheries Organization (IFO), 61K MT of shrimps were farmed in the country during the current Iranian calendar year (started on March 21, 2022). Shahriyar Rostami, the director of planning and resource management of the IFO, said this year, 61K MT of farmed shrimp have been produced in the five coastal provinces of the country, which shows an increase of more than 5% compared to last year. According to the Agriculture Ministry’s planning, the amount of farmed shrimp production in the country will reach 160K MT by the end of the Iranian calendar year 1404 (March 20, 2026), the official announced. The development of aquaculture and the production of fishery products has been put on the agenda as one of the transformative programs of the 13th government, he added.
Data Analysis: Black Tiger Shrimp Prices in Japan Fall to One-Year Low on Slow Demand (Feb 21)
Black tiger shrimp wholesale prices in Tokyo, Japan, dropped by a sharp rate of 20% WoW and 14% MoM to a fresh one-year low of USD 14.96/kg (JPY 2.04K). In YoY terms, prices fell 1%, after consistently showing growth rates throughout 2022 and early 2023. The sudden sharp WoW decline reflects low demand in line with the seasonality of its consumption. A weaker Japanese yen against the US dollar over the past weeks underlines the decline in demand. February also saw the lowest point for prices in 2022. However, prices will likely begin to rise as the Golden Week Holiday in May approaches.
Squid
Argentina: Low Volumes of Argentine Illex Squid During W7 (Feb 21)
The volumes of the first and second tides of Argentine Illex Squid had a negative result as of W7. The supply of medium and large sizes is low, offering USD 100-200/gr for size SS and USD 200-300/gr for size S. In W6, bad weather conditions affected the fishing tides and export departures from South Ports.
Tuna
Ecuador: China, a Giant That Threatens Ecuador’s Tuna Supply (Feb 24)
Ecuador continues to be the main supplier of tuna loins to the European Union, but that reign is getting closer to being taken over by China, one of its main rivals in this market. This is because the European bloc is increasingly inclined to buy from China, even though there is no trade agreement with them. Between 2015 and 2022, Ecuador's share in that market has reduced from 32% to 26%, while that of China grew rapidly from 9% to 24%.
Ecuador: Tuna Sector Seeks to Recover Markets in South America and Europe (Feb 25)
The Manabí tuna sector faces a complex 2023 due to “unfair” competition with China, which seeks to strip Ecuador as the main supplier of tuna loins to the European Union. For the Ecuadorian Chamber of Industrialists and Tuna Processors (Ceipa), it is important to maintain the European Union market, but together they are focused on recovering others that they have lost in Latin America, such as Argentina, Chile, and Peru. In addition, by 2023, according to Mónica Maldonado, Ceipa's executive director, they will not only seek to open markets but also "that this year a penetration strategy in the North American market be defined." For this, there have already been approaches with the United States and from April 2023 the tuna sector is expected to fulfill an agenda in Washington to obtain tariff benefits for this industry.
Vietnam: Tuna Export in Vietnam Is Expected to Increase in the Second Half of the Year (Feb 22)
Ms. Nguyen Ha, the tuna market specialist of the Vietnam Association of Seafood Exporters and Producers, said that in January 2023, Vietnam's tuna exports continued to decline sharply following the trend of the last quarter of 2022. Tuna export turnover this month was just over USD 50M, down 43% over the same period in 2022. Accordingly, the decline occurred in most product groups, except for processed tuna other than the HS16 code (mainly frozen steamed tuna loin). Which, exports of frozen tuna meat/loin with code HS0304 fell the most by 55%, while exports of fresh/frozen and dried tuna decreased by 54% and canned tuna decreased by 46%. 2022 was a remarkable year for Vietnam's tuna industry when it brought in an export turnover of more than USD 1B, up 34% compared to 2021. However, this growth was due to strong growth in 3 quarters at the beginning of 2022. In the fourth quarter of 2022, under the impact of inflation in Vietnam's tuna export markets, the trend has decreased and this trend will continue in the first months of 2023.
