EP 254 | AIRED 10/05/2015
Preparing for Chinese New Year & Lent - What you Should Know about the Seafood Market
October 5th, 2015 - Welcome to The Tradex Foods"3-Minute Market Insight"
This is Kyla Ganton and here is the seafood news for Monday October 5th, 2015.
This is Kyla Ganton filling in for Rob Reierson and here is the seafood news for Monday October 5th, 2015.
--- As Chinese suppliers gear up for Chinese New Year, production is in full swing before the plants close at the end of January.
Here is a recap on twice-frozen inventories and production.
--- Supply is still very short on Atlantic Cod, keeping prices up in the mid-high $3 range in North America.
Customers with tight specs could have difficulties securing product for the Lenten period.
--- Haddock raw matierals have been at very low levels for the last two months.
West Coast pricing for Haddock loins and fillets are in the low $3s.
There is an opportunity on Haddock right now though - if Atlantic Cod pricing continues to stay strong, we anticipate Haddock following soon.
It would be a good idea to secure Haddock inventories before this surge ensues.
--- Pacific Cod prices are steady right now, but twice-frozen production capacity before Chinese New Year is getting tighter and tighter.
The GOA and Bering Sea Total Allowable Catch for Pacific Cod in 2015 is 315,000 metric tonnes, on par with last year.
Currently, 122,000 metric tonnes of Cod has been caught.
There are no raw material supply shortages, so buyers should be okay for Lenten inventories if they begin to book production now.
--- Our TradexLIVE offer of the week is for 4oz and 8oz Sinbad Brand Pacific Cod Loins. #1 quality, IQF 2015 production.
There is 7,800 lbs of 4oz and 5,400 lbs of 8oz available for $2.85 / LB FOB L.A.
Click or tap the icon above to view this offer.
--- Seafood deception is still a prevalent issue - sharply priced twice-frozen production is often short weight or over soaked.
Many buyers in Europe actually request short-weighted product for their customers.
Western European buyers frequently seek 90 percent net weight and we've heard of Eastern European buyers requesting glazing as high as 35 percent.
To North America, most products are 100 percent net weight, edging sometimes to 95 and 90, but still much better than we've seen in Europe.
--- Some production out of China has been pushed towards chemical free treatment to attract a quality element in the twice frozen markets.
There is a niche right now for chem-free products.
Unfortunately, China has a stigma for inferior quality because of over-soaking, which goes hand-in-hand with low pricing.
The big question is - Is it too late to introduce chem-free products in a market flooded with over-soaked, over-glazed products to hit the necessary price points?
Ultimately this will be consumer's preferences and willingness to pay a premium.
----Thank you for joining me for the Tradex Foods
"3-Minute Market Insight"
This is Kyla Ganton - “BUY SMART” and “EAT MORE SEAFOOD
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