EP 175 | AIRED 04/07/2014

Good & Bad for the Upcoming Pacific Hake Fishery, Pangasius Duty Lowered

April 7, 2014 - Welcome to The Tradex Foods "3-Minute Market Insight" This is Robert Reierson and here is the seafood news for Monday April 7th, 2014.

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---Pacific hake is being talked about with the June fishery quickly approaching as well as anticipated quota announcements. Pacific hake (Merluccius productus) is a high demand low cost whitefish that has always been a key species for European export. Processors and food manufacturers have increased their marketing efforts in North America as European exports have always been the backbone of the fishery. European demand over the past few years has exceeded production which kept prices high. There is a Pacific Whiting Treaty between Canada and the United states for the shared management of the coastal hake stocks. Based on input from the Joint US-Canada scientific review group the biomass is estimated at 2.42 million metric tons, which is up 75 percent since the last survey done in 2012. This biomass level is the second largest assessed biomasass since 1995 which is promising news for the 2014 fishery. Processors advise they expect a quota increase when the fishery opens in June, which may result in more domestic availability. There are limited 2013 inventories remaining trading at $1.30-1.65 USD per lb. FOB Seattle Prices have remained close to these levels for several years with little fluctuation. The big concern for this year is the situation in Russia. Trade sanctions may prevent exports to Russia which accounts for the majority of the exports. With up to 70 percent of the fish processed in Canada and the USA being exported to Russia, there may be a surplus in 2014 with an underdeveloped North American market. Processors may react to the export ban by putting product into Surimi, but even that will not likely prevent surplus inventory. Expect increased marketing efforts here at home as the weeks count down to the opening. Retail and food service customers can certainly benefit with an increased supply of value priced whitefish as prices for Pangasius and Tilapia remain strong. ---In other news, as of April 1st, the duty rates will be lowered on Pangasius to the United States. Major exporters can expect an average rate cut of 59 percent, with some as high as 95 percent.


---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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