EP 331 | AIRED 04/17/2017
Uncertainty for West Coast Shrimp; Degenerating Ocean Predictability Shakes up Market Pricing
April 17, 2017 - Welcome to The Tradex Foods
Welcome to The Tradex Foods
"3-Minute Market Insight"
This is Robert Reierson and here is the seafood news for the week of April 17th, 2017.
--- Pink Shrimp price talks and egg laden females leave boats tied up at the dock in Oregon.
Last year's voluntary stand-down was primarily a count-per-pound issue, however, this season fishermen are delaying fishing to let the eggs drop and also to give processors a chance to clear inventories.
Looking historically, we always see the boats pricing drive and set the pricing for new shrimp seasons.
Two years ago supply was good so prices opening low, in the mid-high $2.00 range for the 250-350ct.
Last year shrimp prices hit a ceiling at the $5.35 mark with inventories still available.
As of last week, price points range from $4.95 to $5.05 to clear out remaining stock - which is surprising when you consider the quota cuts in East coast Borealis stocks after recent announcements by Canada's Department of Fish and Oceans.
Boats prices this year are rumoured to be between anywhere 40 and 60 percent less than last year - another big factor in the voluntary stand down to allow the shrimp to mature.
--- Climate change and upswelling play a big part in the delay of the fishery, as Laurie Weitkamp from NOAA explains:
As with any wild species, estimating biomass is difficult and Laurie noted that "predictability of the resource is starting to go down."
The last couple of years have been pretty good in terms of year class for the shrimp, but a lot of the forecasting relationships that are based on a couple of decades of data are starting to degenerate.
Scott Groth from the Oregon Department of Fish and Game agreed that the increasing "variability of oceanographic regimes" is correlated to the predictability of the species.
Ultimately there will always be a commercial fishery, but as Scott mentioned: Fishermen and processors decide what is best for the market, "within the bounds of safe, sustainable harvest."
Buyers can expect the low pricing on 250-350 count to remain for a few months as inventories clear.
--- Finally, our TradexLIVE offer of the week is for 4oz Sinbad IQF Pollock Loins.
We have 5,000 lbs of these #1 Quality boneless skinless Loins in Boston for $1.68 / LB USD.
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"3-Minute Market Insight"
This is Robert Reierson - “BUY SMART” and “EAT MORE SEAFOOD"
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