EP 211 | AIRED 12/01/2014
Rocksole 2014 Looking to be another Weak Year; Rising EU Pricing for Cod
December 1st, 2014 This week in the Tradex Foods 3-Minute Market Insight, Rob Reierson discusses Rocksole 2014 Looking to be another Weak Year; Rising EU Pricing for Cod...
2015 is almost here, which means the Alaska Rock Sole Fishery in January is not far away.
Rock Sole is targeted during the roe season. The male non-roe product will be exported to China for processing to supply North American and European fillet markets.
At the beginning of the year we predicted that 2014 would be a stronger year for Rock Sole as only 67 percent of the Bering Sea and Aleutian Islands quota was harvested in 2013.
As of November 15th, there is 63 percent of the 2014 Alaskan Rock Sole quota remaining, which leads us to believe that this could be another weak year.
Rock Sole with Roe is targeted for the Japanese market beginning in early January until the middle of February.
There is a small market for this product in China, but approximately 90 percent of the fish goes to Japan every year.
Rock Sole is caught as bycatch throughout the remainder of the year, once targeting for females with roe has ended.
Winter Fish is typically more expensive because of the higher quality, usually $50 - $100 / MT more expensive than the Summer fish.
Pricing this year for Rock Sole is around $1,500 / MT CFR China, similar to last year.
This pricing equates to between $2.20 and $2.25 for smaller sized fillets like 1-3oz, FOB Boston.
Overall, the Sole market is still quite weak in the European Union and in North America, but Chinese processing plants are still taking fish to keep their workers.
--- Let's take a look now at the European Market. In order to keep our European viewers well informed, we will begin to include a "European Update" segment every few weeks in our market update.
Chinese processors quote European customers with EMP pricing, which stands for European Main Ports (EMP), and typically includes Bremerhaven, Hamburg, Le Havre, Rotterdam, and Vigo.
In particular, Atlantic Cod loin pricing has been going up since the beginning of the year.
This fluctuation is due to the continuously rising prices of raw materials.
Current pricing for Atlantic Cod Loins is $3.30 / LB CFR EMP.
The Atlantic Cod quota will be cut by about 5 percent next year, so we can expect further price pressure on this product.
Also of note, the European Union is taking chemical-free products only, but the market has been a bit weak for the past two years.
--- Our suggested buy of the week is for Skin-on boneless 1-3oz IQF Flounder fillets. Pricing is $1.95 / LB FOB Boston.
Give your Tradex Foods Rep a call to place your order today.
--- In next week's episode we will give an update on a few Vietnamese items, namely Pangasius and Mahi Mahi.
---Thanks for joining me for the Tradex Foods
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