EP 12 | AIRED 12/20/2010

King Crab, Dungeness Crab, Bering Sea

December 20, 2010 - Season’s Greetings from Tradex Foods Thank you for joining us for The Tradex Foods - "3-Minute Market Insight" The Monday morning “pulse report” for seafood purchasers.

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Some Fast Facts to start this week’s insight: - There is a lot of "Once" frozen pollock fillet inventory in Seattle with No Buyers - Looks like once frozen pollock is in for a "Reality Check". ------------ In news this week - While Atlantic Canada and Russia struggle with reduced Snow Crab quotas - supply from Alaska is likely to increase. - The Bering Sea fishery opened on October 15th with a 2010-2011 Total Allowable Catch set about 13 percent higher than last year. - The bulk of Alaska’s catch won’t enter the market until January. - Until then - reduced Canadian supply – the majority of which is exported to the US - will keep supply light and prices strong. - The Bering Sea Red King Crab fishery got underway on October 15th with a total allowable catch down 7.5 percent from last year. - The Aleutian Islands Golden King Crab fishery has a total allowable catch of 6 million pounds - and - the Blue King Crab fishery in St. Matthew is open for the second straight year. - Overall - Alaskan King Crab fisheries have a reduced harvest of approximately 700,000 fewer pounds this year. - Likewise - supply coming out of Russia is also down. - Russian King Crab “total allowable catches” are down 31 percent – and illegal harvest of Russian King Crab is reported to be down as well. - Reduced global supply is pushing up prices in the US & Japanese markets. - Lower supply out of Russia means that US buyers are bidding against the Japanese for Alaskan product. - Despite a reduced supply - many sellers have acknowledged worries of finding buyers willing to purchase this luxury item. - However - the reduced supply has been accompanied by record-high prices – indicating stable demand for this prized seafood item. - As of December 16th - FOB Red King Crab Leg & Claw prices for 9 to 12 count - range between $15.00 to $15.50 and prices for Golden King Crab range between $13.60 to $13.85 - Whether high prices will continue to be tolerated by buyers - is anyone’s guess. - But with holidays just around the corner - consumers are in a spending mood and if the market does fall – it likely won’t happen until the New Year. ------------ In other news – - The Oregon Dungeness Crab fishery – the worlds’ largest producer of Dungeness - closed in August with landings some 10 million lbs greater than last year. - It was the third largest harvest on record and the 4th year in the last decade that landings have exceeded 20 million lbs. - As at December 16th - prices for whole - cooked frozen Dungeness weighing 1.5 to 2 lbs ranged from about $3.80 to $4.05. - Prices for crab weighing 2 ot 2.5 lbs ranged between $4.20 to $4.40. - On a note of sustainability - The Oregon fishery was recently certified as sustainable by Marine Stewardship Council standards. 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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