EP 409 | AIRED 10/22/2018
It’s A Confusing Time For The Haddock Market
October 22, 2018 - The Norwegian and Russian governments met last week to agree on the Barents Sea haddock quota for the 2019 fishery.
The joint Haddock quota for Russia and Norway is set at 172,000 metric tonnes, a reduction of 14 percent from 202 thousand metric tonnes in 2017...
2018 Alaska Salmon Commercial Harvest Counter
(Harvest in thousands of fish)
Updated: TUE OCT 23 2018 11:47AM (View Previous Weeks Totals)
It is a confusing time for the Haddock market as news of Quota cuts and tariffs should equate to prices rising, however that might not be the way this year.
Raw Materials are currently between $3400 and $3450 per metric tonne, which is nearly double the price of where the market was last year at $1800.
High headed and gutted pricing coupled with newly imposed US import tariffs on Chinese processed Haddock products will create a tough market in the USA.
As a result, many Chinese processors will focus on Canada and the E.U. instead as demand in the US market has dropped off.
Major Haddock producers will resume production next year, but plants who focus on Pollock and Cod will remove Haddock from their offers.
Currently, pricing on skinless boneless Haddock fillets into the USA is around $3.75/lb with loins sitting at $3.80/lb on the East Coast.
This is about $0.90/lb higher than October 2017, and pricing next year will be almost $1.00 per pound stronger with the 25 percent import tariffs.
For comparison, European main port pricing on Haddock fillets is around $3.80/lb.
US customers are likely to switch to Atlantic Cod, which is exempt from US Tariffs, so buyers should prepare for heightened demand to pressure pricing.
Similar to Haddock, the Barents Sea Atlantic Cod quota was cut for 2019 to 725 thousand metric tonnes, about 6 percent lower than this year.
As a result, Raw Material pricing is expected to rise even higher from it's current peak of $4,500.
Expect Whitefish pricing to continue to strengthen leading into the new year and stay tuned to future Market Insight updates to see where the Haddock market goes.
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