EP 5 | AIRED 11/01/2010
Global Cod Quotas, US Economy
November 1, 2010 - Hello and Welcome - My name is Robert Reierson - President & CEO of Tradex Foods.
Thank you for joining us for the fifth edition of The Tradex Foods "3-Minute Market Insight"
- The Monday morning “pulse report” for seafood purchasers.
In news this week
- American consumers are showing signs of optimism.
It was just a year ago when middle class Americans tightened control on discretionary spending by 3.5 percent – the largest single-year drop since record keeping began in 1984.
But for 2010 - the Consumer Confidence Index is much more optimistic - consumers may still be weighed down by employment concerns - but they are definitely more positive than in previous years – and the impact on sales has been noticeable.
Casual dining restaurants reported strong sales over the summer - which then carried into September.
This upswing should fuel margin and earnings growth for many companies.
Improved sales at the restaurant level will funnel up the supply chain to distributors – who should be targeting chains that show high foot-traffic trends - AND - those with pricing power – those being chains that have the ability to raise prices - without seeing much effect on demand.
In the retail sector - there is also evidence of a slowly rebounding economy – while 2009 was a period of discounts and low prices - this year and in 2011 - consumers are ready to pay a bit more –BUT - they want value for their money.
Food manufacturers and foodservice providers should be focusing on communicating added-benefits to their customers.
Information should be clearly visible and transparent.
Be sure to join us next Monday – for additional news on a changing economy from the Canadian perspective
IN OTHER NEWS…
Next years’ Cod quotas are up around the globe – Norwegian and Russian fishermen in the Barents Sea will be allowed to catch 703,000 metric tons – an increase of 16 percent over 2010.
Quotas for Bering Sea & Gulf of Alaska Cod have been set at almost 170,000 metric tons and 60,000 metric tons respectively – increases of 30 percent over 2010.
In the past - a diminishing proportion of wild-caught Atlantic Cod put increased pressure on Alaska’s Pacific Cod.
Now - with supply of both types of Cod forecasted to increase - there may be some downward pressure on prices.
Thank you for joining me for The Tradex Foods "3-Minute Market Insight"
This is Robert Reierson - “BUY SMART” and “EAT MORE SEAFOOD”
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