EP 265 | AIRED 01/04/2016
Salt Cod Prices Skyrocket; Upcoming Pacific Cod Fishery to Pressure Large Fillet Offers
January 4, 2016 - Welcome to The Tradex Foods
"3-Minute Market Insight
This is Kyla Ganton and here is the seafood news for Monday January 4th, 2016.
--- The portguese market is booming for salt cod, but raw material availability could hinder profitability this season.
A national specialty, salt cod is typically sold dried salted, or frozen de-salted for retail use.
Norway is Portugal's main competitor in the dried salted market on both price AND supply, because they process straight from the source in the Atlantic.
Recent raw material shortages have pushed retail products up 20 percent from last year, raising about a euro for the 300-400gr size.
Triangular Trade in the 1700s brought salt cod to Brasil as well.
We spoke to a large Portugese processor whose business has shrunk by 3-4 containers per month as a result of the devaluing Brasilian economy and currency.
The influx of Chinese processed salted products for export to Portugal, Norway, and Brasil creates further competition for the traditional salters.
300-400gr Chinese-processed loins are at $6.20 / LB CFR EMP right now. Retail packs head to the Portuguese and bulk packs are for reprocessing for distribution.
Emerging markets in North America are beginning to create new opportunities on frozen desalted products, as reported by New York food aficionados.
For now though, European buyers should prepare for further price hikes as we continue to hear of raw material shortages, especially on smaller sized products.
---Our TradexLIVE offer of the week is for 2-5oz IQF Sockeye Salmon Portions.
These are #1 Quality, skin-on, wild caught in Alaska and are available in Seattle for only $2.75 / LB.
Click or Tap the Icon above to view this offer.
--- Finally, a quick forecast for the upcoming Pacific Cod Fishery in the Gulf of Alaska.
"A" Season opens on January 1st for Pot and Jig gear, and we are anticipating a season similar to the tailend of our current season.
To date in 2015, 46.4 million pounds of Pacific Cod have been harvested in Kodiak, Chignik, and the South Alaska Penninsula.
We have heard that grounds prices are already higher Year-to-Year, but no concrete accepted pricing has been set.
Higher grounds pricing and short supply translate to a spike in the once frozen market.
Larger fillets in particular are difficult to find, and prices have jumped anywhere between 30 and 40 cents since June.
Mid-summer pricing on single-frozen 8-16s was at the $3.15 mark, trending upwards to the $3.45 mark in November.
If you can find offers now, we have seen prices as high as $4.00 / LB.
As with many other fisheries, we anticipate small fish again in 2016, which will continue to pressure the availability of larger fillets.
As the gap spreads between once and twice frozen products, some buyers may use Chinese processed product to meet demand.
----Thank you for joining me for the Tradex Foods
"3-Minute Market Insight"
This is Kyla Ganton - “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