EP 191 | AIRED 07/14/2014
Further Shrimp Price Increases to Impact East & West Coast Markets
July 14th, 2014 This week in the Tradex Foods 3-Minute Market Insight, Rob Reierson discusses Further Shrimp Price Increases to Impact East & West Coast Markets...
--- The Oregon Shrimp Meat (Pandalus jordani) fishery is well underway and prices are rising quickly since the season began on April 1st.
Prices have increased by $0.25 /lb to $0.35 /lb since May for the 250/350 count cooked and peeled product. We are being told that another $0.25 /lb price increase could occur next week as well.
Current pricing for 250/350 count is $4.00 /lb FOB Vancouver, up 16 percent over this time last year.
There are multiple causes for the rapid increase, mainly due to the prevalence of smaller shrimp.
The Oregon Department of Fish and Wildlife reported 20 million pounds landed in Oregon as of June with an exceptionally big quantitiy of age 1 year class sizing.
The shrimp that is smaller than the 350/500 count will likely grow through the season to become 350/500 count, but unlikely to grow enough to become 250/350 count.
Other causes for price increases could also come from reduced fishing efforts due to windy weather conditions on the Oregon and Washington coasts.
Demand for export sales to Europe have increased; however, prices are substantially higher than last year and are over the offered prices for west coast products.
--- East Coast Shrimp (Pandalus borealis) prices are also on the rise this season.
Quotas have been severally cut, pushing spring prices up, and now summer prices have gone up again, even though they usually drop a bit from the East Coast fishery prices.
Quotas have decreased because as the Atlantic Cod stocks rebound and show significant growth, the stocks of shrimp simultaneously decline as Shrimp is one of the main feed items for A. Cod.
A late start to the East coast spring fishery due to the seasonally later presence of ice flows also added upward price pressure to Borealis shrimp too.
Current offers for Canadian caught East coast shrimp are $5.55 /lb FOB Boston for 250/350 and $4.00 /lb FOB Boston for 350/500 count.
West Coast fishers of Pandalus Jordani are now learning of the rising markets for the East coast products and feel that their product should keep relative pace with the increases for Borealis.
We will update you as the pricing trends develop further.
---Thanks for joining me for the Tradex Foods
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