EP 333 | AIRED 05/01/2017

Russian Salmon Forecast for 2017 - Price Expectations, Rumoured Duty Increase

May 1, 2017 - Welcome to The Tradex Foods "3-Minute Market Insight" This is Kyla Ganton and here is the seafood news for the week of May 1st, 2017.

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--- Russian Salmon Forecasts for 2017 were released last week, beginning early price talks for North America. Last season, the initial quota for 2016 was around 332 thousand metric tonnes but was significantly increased mid-season. The final catch of about 446 thousand metric tonnes, is up 3.6 percent over last year. This year, recommended catch volumes for the Far East Basin are just under 320 thousand metric tonnes across all salmon species, as reported by the Federal Agency for Fishery in Russia last week. Pink salmon makes up 45 percent of the quota this year, with Chums totalling about 40 percent of the quota. The Kamchatka region is particularly important for salmon, as it accounts for about 50 percent of the total salmon catch in Russia. --- Chinese Processors are hopeful for a big salmon year this season, with some forecasting a supply increase by about 50 percent. Raw material inventories right now are slim for Chum salmon but production of Pink salmon products is steady. --- Price points are unconfirmed for 2017 but we have a good idea of where the market is going. Pink and chum salmon portion pricing strengthened by 10 percent last year, but we see pricing coming back down again. 8oz twice frozen IVP Pink Salmon portions hit $4.05/lb last month in Los Angeles, whereas twice frozen 2-3lb IQF Chum Salmon fillets are around $3.10/lb. Sockeye forecasts make up only 15 percent of the Russian quota, so pricing is unlikely to change from last year. Twice frozen 1-3lb IVP socekye fillets are at $5.20/lb in Vancouver at the moment. --- Another factor with pricing this year will be the rumoured duty increase on the exports of fish out of Russia, in an effort to strengthen their domestic market. As recently reported by the Russian Federal Agency of Fisheries, the current duty rate of 3 percent could be raised to 10 percent. This change would reduce the volume of fish exported to China for further processing, subsequently increasing finished goods pricing for North America. We will give another update once we find out more, but for now we can expect prices to be on par with last season, possibly decreasing by about 10 percent if harvests are strong. --- Finally, our TradexLIVE offer of the week is for Sinbad brand Swai fillets. These are #1 quality, White Meat Only, Well Trimmed, and a 100% net weight guarantee. We have 3-5oz, 5-7oz, and 7-9oz available for $1.60/lb in Boston. Click or tap the icon above to view this offer. ----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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