EP 171 | AIRED 02/17/2014

2014 West Coast Pink Shrimp Fishery & Market Update, European Duties.

February 17th, 2014 - Welcome to The Tradex Foods "3-Minute Market Insight" This is Robert Reierson and here is the seafood news for Monday February 17th, 2014.

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---The MSC certified Oregon pink shrimp fishery is approaching so it's timely to do an update of the current market conditions and take a look at the coming fishery.

Oregon Pink shrimp or Pandalus jordani are harvested From April 1st through October 31st.

The closure coincides with the reproduction of the species.

Oregon shrimp lay eggs early in the season prior to April. The fishery is not managed by a quota system but rather by length of season and a limited entry system for number of vessels permitted to fish.

Approximately 47.6 million pounds of shrimp were landed in 2013 which is considered a good year and is consistent with the past few seasons. Survivability of shrimp was a factor in the past 2 seasons with a strong biomass of 2-3 year old shrimp. 

The same strong survivability of shrimp is expected for 2014 with harvests of 2 year old shrimp expected.  

2 and 3 year old shrimp are considerably larger than 1-2 year old shrimp which will benefit the fishing fleet as Fishermen are paid more money for larger shrimp. With shrimp beds holding larger shrimp fishers are able to be more selective and target larger shrimp.

The down side in the market is less availability of under 350 count shrimp.

The Oregon shrimp fishing fleet use excluders to prevent by-catch of unwanted species such as the threatened Eulachon smelt. Columbia river region had one of the largest Eulachon returns ever last year, proof the excluder devices work in limiting impact to ecologically sensitive areas.

---European duties are ever present with Oregon shrimp with rumblings that the EU and US may come to an agreement to increase the duty free quantity allowed into the EU. At present the EU allows 2000 metric tons of USA harvested jordani shrimp to be imported to the EU duty free.

The US has been long battling the duty on jordani shrimp in order to level the playing field with the Atlantic borealis shrimp from Canada. at present 30,000 metric tons (net weight, before glaze) of cooked and peeled shrimp, and 9,000t for shell-on are allowed into the EU duty free.

We will of course let our viewers know of any changes as they happen.

If the duty free tariff for Oregon shrimp is increased it will further limit supply to domestic markets.

---Shrimp supply is strained at the moment with prices up more than $0.50 per lb.

since the beginning of the season. Market prices have a large variance as supply is so low.

That being said 250-350 cooked and peeled prices are from $4.10-$4.40 USD FOB plant. All of these factors lead us to believe that 2014 prices will be strong.

---Thanks for joining me for the Tradex Foods "3-Minute Market Insight" This is Rob Reierson - “BUY SMART” and “EAT MORE SEAFOOD”

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