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.
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”
If you have a topic you'd like to hear on upcoming 3-Minute Market Insights, tweet us on Twitter @TradexFoods
Subscribe to our 3-Minute Market Insight