EP 188 | AIRED 06/23/2014
Poor Year for Russian Pink Salmon Ahead, Depleted Inventories of Chums, Russia to Cancel Quotas
June 23rd, 2014 - Welcome to The Tradex Foods "3-Minute Market Insight" This week in the Tradex Foods 3-Minute Market Insight, Rob Reierson discusses Packers in China indicate a poor year for Russian Pink Salmon ahead, pre-season estimates suggest higher returns than last year, but supply will still be tight. Depleted inventory levels of GMC Chum in China has left buyers looking for any GMC fish they can get. The Russian Government plans to cancel quotas of fishermen that produce less than 70 percent of their catch and will sell the seized quotas at auction...
--- Packers in China indicate a poor year for Russian Pink Salmon ahead, pre-season estimates suggest higher returns than last year, but supply will still be tight.
The pink salmon fishery had similar trends last year, with returns several thousand tons behind expectations. Main suppliers will catch and have Pinks available for sale by the end of July.
This year the TAC for all varieties of salmon: Pink, Chum, Sockeye, Coho, and Chinook Salmon is set at 140,000 tons in the Kamchatka Region, and 145,000 tons in the Sakhalin Region.
Buyers of Russian pink salmon had hoped to see abundant supply and lower prices, but suppliers aren't ready to discuss prices yet because of low returns.
We have heard that pricing this season is at simliar to last year on the level of $1.04 and $1.29 per pound, ex warehouse Kamchatka or Vladivostok.
Plants have suggested that prices will continue to rise, but we won't know until production begins.
If raw material pricing continues to rise we will see the finished market in the EU and North America increased as well.
Canned pink salmon production typically plateaus around 1.5 million 48-tall case equivalents, representing the largest component of the pink salmon pack.
The 2013 season was estimated at 4.1 million and was the largest in recent history.
We can expect large inventories this year to put pressure on the market, even though all indicators suggest otherwise.
In other salmon news, depleted inventory levels of GMC Chum in China has left buyers looking for any GMC fish they can get, as raw material fish in season is ancticipated to rise.
Chum supply is forecasted to be short this year, but pricing will be high. We have heard that the recent new production pricing is $2.00 /lb Seattle for silverbrite 6-9 lbs.
The Russian sockeye season has started very well on the Kamchatka River and over 4000 metric tons have been caught, roughly double the catch this time last year.
Packers have indicated a good quantitiy can be expected this year and early reports are that the fish is very small.
--- Russian government officials met last week to discuss the modernization of their quota allocation system. Russian Fishermen should prepare for dramatic changes in resource allocation after 2018.
The government plans to cancel quotas of fishermen that produce less than 70 percent of their catch and will sell the seized quotas at auction.
It has also been suggested that all fishermen by 2020 must use domestic shipyards to build their boats.
---Thanks for joining me for the Tradex Foods
"3-Minute Market Insight"
This is Rob Reierson - “BUY SMART” and “EAT MORE SEAFOOD”
If you have a topic you'd like to hear on upcoming 3-Minute Market Insights, tweet us on Twitter @TradexFoods
Subscribe to our 3-Minute Market Insight