EP 207 | AIRED 11/03/2014

Low Chum Inventories Induce Price Volatility; Atlantic Salmon Prices on Downward Slide

November 3rd, 2014 This week in the Tradex Foods 3-Minute Market Insight, Rob Reierson discusses Low Chum Inventories Induce Price Volatility; Atlantic Salmon Prices on Downward Slide...

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Chum salmon fishery is well underway in the Puget Sound #fallchum Washington State Chum salmon landings are looking good so far @WDFW pre-season chum salmon forecasts are 660,000 fish in the Puget Sound and 443,000 in the Hood Canal Better landings should help the #chumsalmon market relax a little bit on pale chums but not on meat colour fish Current Chum salmon pricing is high because the Alaskan fish came in extremely short, Total Alaska salmon harvest this year was 152.5 million fish, as reported by the ADF&G 9.9 million chum salmon were caught in Alaska this year, only 50 percent of the 19.8 million forecasted volume We are receiving volatile and inconsistent offers on #chumsalmon due to unpredictability of catch and low inventories For pales all the way up to brites we are seeing offers between $1.50 and $2.50 / LB FOB Seattle #chumsalmon Low Chum salmon inventories - another factor affecting pricing this season If landings continue to be strong we predict the chum salmon pricing to come down Chum Salmon should come down in price by about a dime on meat colour chums and 10 - 20 cents on pale chums Prices have been in a downward slide over the past few months for Atlantic Salmon Atlantic Salmon price decreases is a annual seasonal trend, possibly due to the wild salmon season 6oz IVP portions have decreased from $7.95 / LB in July to $6.95 in September #atlanticsalmon Last year this time Atlantic salmon prices were around $6.85, similar to levels we are seeing now Chile harvested their Atlantic salmon early this quarter because they required more supply Over the next few months Chile will begin to run out of Atlantics, which will increase the price dramatically As October came to an end, Chilean salmon farmers prepared for increased production efforts #atlanticsalmon To adhere to maximum biomass limits, Chilean salmon farmers ramp up production this time of year Chilean farmers are required to report their biomass in sea in the fall #aquaculture Any aquaculture farms exceeding the maximum biomass limits face penalties in Chile #atlanticsalmon Chilean producers will begin to allocate freezing resources to Coho salmon Coho production in Chile puts pressure on Atlantic salmon production this time of year Chile recently emptied their stocks of Atlantic salmon, it will take some time to grow the fish to market size Infectious Salmon Anaemia (ISA) has been found in a major Chilean salmon farm ISA likely to force the producer to destroy all of their fish. Further monitoring is currently under way Strong opportunities for Atlantic salmon buyers to take advantage of current pricing Atlantic Salmon buyers encouraged to begin purchasing inventories to last through to next year Norwegian Atlantic salmon production typically drops in September versus the wild stocks Prices for #atlanticsalmon to rise heading into January Even during the Russian Food Embargo, Norway has been able to find ways to bring salmon into the country Norwegian salmon is shipping to Belarus for primary processing and light smoking, travelling to Russia thereafter Labelling has become tougher and we am seeing major shifts in labelling approval by Governments Governments all over the world strengthening labelling laws in order to protect biomass and the consumer Tradex Foods supports the transition to stricter food labelling laws Suggested buy this week: IQF Pacific Cod Loins, All sizes, West Coast, $2.75 / LB for a 5,000 pound min order TradexLIVE is an exclusive portal that features our latest offerings of H&G and Value Added seafood products


---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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