EP 346 | AIRED 07/31/2017
July 31, 2017 - Welcome to The Tradex Foods "3-Minute Market Insight" This is Robert Reierson and here is the seafood news for the week of July 31st, 2017.
--- Recent slowing of the Alaskan Rock Sole fishery harvests indicate stronger fillet pricing and thin inventories on the horizon. Catching is extremely slow in Alaska at the moment in the Bering Sea and Aleutian Islands. The Rock Sole quota for the Bering Sea is 42,000 metric tonnes, of which 70 percent of the quota has been caught, around 30,000 metric tonnes. To put that into perspective, since our last update on the Fishery in mid-June, only another 2,800 metric tonnes have been harvested. --- We spoke with several large processors in China about the Rock Sole fishery and the effect on the twice frozen market. Alaskan Boats are on the water but are targeting species like Arrowtooth Flounder and Pacific Cod right now, instead of the less profitable Rock Sole. Raw material inventories in China were stronger last year this time when the boats switched their targets, with limited affect on the supply of twice frozen fillets to North America. This year however, we have seen more than 50 container loads of Flounder fillets cancelled by contract plants, after Chinese suppliers struggle to find raw materials. Medium, size Sole raw materials jumped from $1850 to 1950 per metric tonne over the past few weeks, which will result in another spike on finished goods by between 5 and 10 cents. For comparison, large size raw materials are at $2050 per metric tonne, but make up only 5 to 10 percent of raw materials. To product a 3-5oz fillet, Small raw materials are used, which currently sit around $1850 per metric tonne. Finished goods pricing in North America on 3-5oz twice frozen IQF Flounder fillets is around $2.50 per pound, but several vendors suggest a 5 cent increase by November. We do not foresee a supply shortage on fillets for the next two months as domestic inventories appear to be decent. Buyers should look ahead to Lenten demand before November, anticipating stronger fillet pricing and inventories to begin thinning. --- In conclusion, our TradexLIVE offer of the week is for Sinbad brand Skinless Haddock fillets. We have 5,000 lbs of 6-8oz fillets available in Vancouver for $2.80/lb USD. As a superior quality whitefish, Haddock is a great buy as pricing on Atlantic Cod has recently strengthened. 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 Robert Reierson - “BUY SMART” and “EAT MORE SEAFOOD"
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