EP 283 | AIRED 05/09/2016
Shrinking Groundfish Quotas; Shift Flounder Supply Chain
May 9, 2016 - Welcome to The Tradex Foods
"3-Minute Market Insight
This is Robert Reierson and here is the seafood news for the week of May 9th, 2016.
--- Last week's Groundfish Quota announcements are set to shake up the East Coast market in spite of scientific research showing decent biomass estimates.
Yellowtail Flounder is a popular product for the region, but catch limits have been trimmed by 25 percent to only 734 metric tonnes for the area.
The biggest cut of all was actually to the George's Bank Cod quota - a massive 66 percent decrease down to 608 metric tonnes.
Multi-species fisheries suffer from 100 percent catch retention, so even though the George's Bank Haddock quota increased to 52,000 Metric Tonnes, Cod catch limits will prevent full harvest.
If fishing continues at the same pace as last year, the fishery could close as early as September or October.
Double digit cuts to all flat species will leave buyers scrambling for substitutes.
--- Our TradexLIVE offer of the week is for 4-8oz IQF Arrowtooth Flounder Fillets.
We have 10,000 lbs of boneless, skinless, Alaskan Wild Caught 2016 production in Seattle for $1.40/LB
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--- So what will fill the gap for these dramatic quota reductions?
Flathead and Rock Sole used to be processed on the East Coast, but bigger Sole processors are now opting for Yellowtail Flounder.
We spoke with Scott Bode from Pier Fish to see what is filling the supply chain.
[Scott clip 4:22 - 4:39]
The Grand Banks fishery in Newfoundland is an international fishery with a quota of 17,000 metric tonnes, primarily allocated for Canada.
Scott alluded to less Flounder avaliability in the Fresh market, so re-freshed Yellowtail is becoming more prevalent.
All of the Frozen at Sea product enters the East Coast as re-freshed because about 95 percent of the domestically landed Flounder sells fresh right into the marketplace.
Smaller sized Yellowtail fillets like the 2-4oz are currently around $4.75/lb on the East coast, with larger fillets like the 4-6oz in the high $5s.
Processors will continue to hope for increased East Coast quotas, but in the meantime expect Sole and Flounder prices to rise.
----Thank you for joining me for the Tradex Foods
"3-Minute Market Insight"
This is Robert Reierson - “BUY SMART” and “EAT MORE SEAFOOD
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