EP 213 | AIRED 12/15/2014

Gulf of Alaska Pollock Fishery Winding Down; Dropping Haddock Raw Material Prices

December 15th, 2014 This week in the Tradex Foods 3-Minute Market Insight, Rob Reierson discusses Gulf of Alaska Pollock Fishery Winding Down; Dropping Haddock Raw Material Prices...

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--- As the New Year approaches, so does the end of the Gulf of Alaska Pollock season. Now is a good time to review what has happened this year for Alaska Pollock and give forecasts for the 2015 season, beginning on January 20th. The year began with breaking news from the NOAA that the scientific name for Pollock would be changed to Cod, based on extensive genetic studies. However, this change will take several years for all agencies to regulate. Since then, there has been a bid to drop the "Alaska" out of the Alaska Pollock name. The fish came in quite large all season. Looking at the H&G market, two thirds of the Pollock processed was in the medium sizing, 400-600 grams, and 28 percent of the catch was 600 grams and up. Over to the fillet market, in May we reported a 10 - 15 cent price increase on Pollock fillets, ranging from $2.15 to $2.30 / LB. Shatterpack pricing for the 2/4oz size has been in the mid to low $2s, 4/6oz in the mid $2s and for 6/8oz sizes nearing the high $2s. Less expensive opportunities exist for large volume orders on Shatterpack products or as IQF. We recommend calling a Tradex Foods rep to discuss your options. H&G prices will not be set until the grounds prices to the fishermen are established in January. There is strong interest for H&G production for sales to China in January and February 2015. Other producers have advertised more availability in the New Year as Shatterpack, IQF, and H&G. One Alaskan producer told us that their main interest is for Pollock roe. They will be processing the fish as H&G after stripping the Roe for the strong Japanese market. As Cod is more valuable, the producers would rather retain space for Cod production than plugging up their plants with the less profitable Pollock. --- Now for a quick update on Atlantic Haddock. Raw material pricing is dropping this week, according to a large Chinese processor. Current raw material pricing for Haddock is $4100 / MT, but we can expect a drop of about $100 / MT this week, and a further decrease next week by another $200. The quota was short this year, which put pressure on pricing, but next year's quota is set to increase by 5 percent. This minimal increase will not have a strong impact on the market. We are still seeing a slow market in both the EU and in the USA, mostly due to these high prices. It will be interesting to see the market effect of these pricing changes, and we will be sure to update you as we receive more information. --- In line with this week's topic, our suggested buy of the week is for IQF Sinbad Alaska Pollock fillets, FOB Boston, 2/4oz and 4/6oz sizes at $1.38 / LB. If you have a topic you would like to see discussed in an upcoming episode, visit our website and use the Web Chat feature to let us know!


---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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