EP 2 | AIRED 10/11/2010
October 11, 2010 - Hello and Welcome, My name is Robert Reierson, President & CEO of Tradex Foods.
Thank you for joining us for the second edition of The Tradex Foods "3-Minute Market Insight"
- The Monday morning “pulse report” for seafood purchasers.
IN THE NEWS THIS WEEK…
- Halibut prices soared this season.
- Demand for Alaskan Halibut is high and so far people are willing to pay for it.
- Depending on fish size, fishermen at Kodiak received anywhere from $5.10/lb to $5.60/lb last week, and at some ports prices were even higher.
- To seafood buyers, this equates to approximately $5.75/lb to $6.25/lb.
- Outlook for this premium fish is mixed.
Distributors are starting to notice that SOME retail and foodservice buyers are backing off due to high prices.
- One perspective is consumers pay more than $20/lb for Copper River Salmon or for a fillet mignon; so there is no reason why they won’t do the same for premium-quality Alaskan Halibut products.
- On the other hand, some concerned retailers and restaurateurs are increasingly exercising caution and substituting less expensive white fish options such as Cod, Pangasius and Tilapia in their fresh cases and on menus.
- Two positive influences on this premium product are the United States’ North Pacific halibut fishery has abundant supply AND is MSC-certified.
- Two perspectives with two potential impacts on demand and subsequently prices.
- Time will tell which way this pendulum may swing – stand by for more on this in the coming weeks.
ALSO IN THE NEWS… PANGASIUS
- You have probably heard wind of the heavily debated issue surrounding anti-dumping tariffs on Vietnamese Pangasius.
- A preliminary decision has been made by the US Department of Commerce to increase anti-dumping tariffs on frozen Pangasius fillets imported from Vietnam between August 1st, 2008 and July 31st, 2009.
- The duty rates exceed 100% and are far higher than all prior rates.
- The Vietnamese Association of Seafood Exporters & Processors is fighting the decision.
- If the tariffs are implemented, Vietnamese companies will face heavy losses and as a result, many producers are claiming that they will be unable to export to the United States.
What does this mean for consumers?
- IF the tariffs are implemented, Vietnamese firms will be forced to raise prices to cover the additional cost, OR if companies pull out from the US market, prices could skyrocket.
- The two parties will meet in November to discuss the issue.
- Stand by for more on this contentious topic in upcoming weeks…
Thank you for joining me for the second edition of The Tradex Foods "3-Minute Market Insight"
This is Robert Reierson - “BUY SMART” and “EAT MORE SEAFOOD”
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