EP 202 | AIRED 09/29/2014
Arctic Haddock Supply NOT as Strong, East Coast Haddock in Abundance, Alaska Pollock are Large
September 29th, 2014 This week in the Tradex Foods 3-Minute Market Insight, Rob Reierson Arctic Haddock Supply NOT as Strong, East Coast Haddock in Abundance, Alaska Pollock are Large...
--- Supply of North East Arctic Haddock is not as strong as last season, due to the dramatic quota cuts this year.
The quota for this fishery is determined by the Joint Norwegian-Russian Fisheries Commission from recommendations by The International Council for the Exploration of the Seas.
The 2014 North-East Arctic Haddock quota was set at 178,500 metric tons, which was 21,500 metric tons lower than in 2013. Norway's portion of this year's quota was 88,115 metric tons.
At this point there is 15,000 MT remaining in the 2014 quota.
Talks have begun for next year's quota, which is expected to be 5 percent more. The International Council for the Exploration of the Seas has made recommendations, but we will have to wait for the Joint Commission to meet in October and November before the 2015 total allowable catches are announced.
Chinese processors are still able to obtain enough raw materials for production, but are unable to order materials as easily as before the quota cuts.
Haddock processors are now having difficulties moving loins and cannot offer many small sized fillets. Most of the smaller sized fillets are cut fillets because the fish is coming in too large.
Last December, haddock pricing set record highs but the supply was dwindling. Atlantic and Pacific cod pricing has little effect on haddock pricing; however, cod pricing has been less expensive and provides an economical substitute.
Another price factor is the sky-rocketing price of Russian fish due to rising export duties imposed by Vladimir Putin in an effort to make domestic sales more profitable.
Chinese processors do not believe that we will see a drop in the haddock market, because the 5 percent quota increase is quite minimal. The current price point for twice frozen IQF Haddock loins is $4.00 /LB FOB Boston.
The market is still slow in both the European Union and in the U.S.A, mostly because the price is too high and we are hearing that some buyers have switched to Atlantic Cod.
--- Looking to North America, the East Coast Canada Haddock fishery seems to be in abundance. The product in this market is single frozen, as opposed to twice frozen out of China.
Current price points are between $4.00 /LB and $4.20 /LB FOB Toronto. The rising price of haddock might suggest that Atlantic Cod will be a substitute in this market as well.
--- Now for a quick update on Alaskan Pollock. The "C" Season for Pollock began on August 25th and will run until October 1st when the "D" season begins.
We are hearing that the fish is coming in quite large this season. For this week and last week, Alaskan processors have processed about 316,000 pounds of Shore Frozen H&G Pollock.
Around 207,000 pounds representing 66 percent of the total catch has been in the 400-600 gram size range, which is medium sizing.
28 percent of the catch has been 600 grams and up. There are practically none of the smaller sizes being caught, 400 grams and under.
Also of note, a couple of weeks ago the Genuine Alaska Pollock Producers filed a request with the FDA to change the acceptable market name of "alaska pollock" to just "pollock".
This would align with typical FDA practice of avoiding geographic designation in market names when possible. We will be sure to update you if this request is granted.
---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