EP 206 | AIRED 10/27/2014
Rising Black Cod and Halibut Prices; Big Changes Ahead for EU Labelling Laws
October 27th, 2014 This week in the Tradex Foods 3-Minute Market Insight, Rob Reierson discusses All sizes of Halibut as well as Halibut fletches are seeing price inflation, including the smaller sizes. Earlier this year we predicted that prices would be strong in the 2014 season as the supply of 2013 processed halibut was very limited....
--- The Pacific Halibut and Black Cod fisheries are nearing an end as November 7th approaches.
The International Pacific Halibut Commission set the 2014 Alaskan Total Allowable Catch at 16.5 million pounds.
As of last week, over 15 million pounds have been harvested with 9 percent of the quota remaining.
In 2013 5 percent of the Alaskan quota was unharvested, and the year-to-year harvest was down by 2.6 million pounds.
In British Columbia, 16 percent of the 5.79 million pound quota remains with 4.87 million pounds caught to date last week.
The B.C. Halibut fishery is considerably smaller than the Alaskan fishery and the fish is primarily sold as fresh.
There are several indications that a Pacific Halibut quota reduction could be coming.
The percentage of large fish has decreased drastically in the past few years, suggesting that stocks are depleting.
We have heard that a majority of the quota this year came in under 60 pounds.
As the larger fish are usually female, this presents a big problem for the renewability of the Fishery.
All sizes of Halibut as well as Halibut fletches are seeing price inflation, including the smaller sizes.
Earlier this year we predicted that prices would be strong in the 2014 season as the supply of 2013 processed halibut was very limited.
We have received offers FOB Seattle for smaller sized H&G Halibut like 10-20s are in the $8s and even in the $9s.
This is up by about a dollar over price points earlier this year.
--- The Alaskan Black Cod fishing opened on March 8th and will close of November 7th this year.
There is 14 percent of the 23.7 million pound quota remaining as of Wednesday last week.
Approximately 75 percent of the Black Cod supply comes from Alaska and 15 percent is from the Washington coast fishery which is April to October.
The remaining 10 percent comes from the year round West Coast Trawl fishery operating on a quota system.
An Alaskan processor told us that long liners are having serious problems with whales eating their catch before it has landed.
Pot caught boats seem to be doing better as the whales cannot get to the fish as easily.
H&G Black Cod prices FOB Seattle for both 5-7s and 7 ups are in the high $9s.
We have even heard some offers as high as $10.00 USD.
Earlier this year prices were just below $8.00 USD and were stable with slight upward pressure.
--- Finally, let's take a look at the new European Union labelling laws that will affect all food products beginning on December 13th 2014.
The new EU Regulation aims to enhance transparency regarding food information, not just food labelling.
Food information should be made available to consumers by means of labels, as well as accompanying material online.
Food business operators must continue to adhere to food labelling requirements, but will now be required to provide all information online before purchase.
Modern technology is playing a large role in the food industry as businesses transition towards better information accessibility.
--- Our recommended buy this week is Trim C 1-3lb Sockeye Fillets.
Pricing is $6.50 / LB FOB Vancouver for a minimum order of 5,000 lbs with delivery in the 2nd week of November. Contact your Tradex Foods Rep today to place your order.
---Thanks for joining me for the Tradex Foods
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This is Rob Reierson - “BUY SMART” and “EAT MORE SEAFOOD”
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