EP 356 | AIRED 10/09/2017
Severe Cod Shortages Deplete Inventories, Buyers Seeking Replacement Products
October 09, 2017 - Welcome to The Tradex Foods
"3-Minute Market Insight"
This is Robert Reierson and here is the seafood news for the week of October 9th, 2017.
--- Severe Pacific Cod shortages deplete single frozen inventories, with no fish and no production for the foreseable future.
In a presentation by NOAA last week at the North Pacific Council meeting, the colossal depletion of Pacific Cod stocks was heavily discussed.
You may recall the "Blob" on the West Coast in 2014 and 2015 - well after record-high water temperatures in the Gulf of Alaska, scientists now report cod year classes for 2012 and 2013 almost wiped completely out.
According to the most recent Gulf of Alaska Pacific Cod survey, models show the number of fish, also called stock abundance, declined by around 71 percent since 2015.
The weight of Pacific Cod stocks for the area, also called biomass, has dropped by about 58 percent in the same timeframe.
The 2017 Pacific Cod total allowable catch for the Gulf of Alaska was set at 65,000 metric tonnes, down about 10 percent from 2016.
After the Council meeting last week it appears that the total allowable catch for 2018 will be significantly less again.
The latest catch data from NOAA as of September 30th showed 226,000 metric tonnes harvested statewide, with only 14 percent harvested in the Gulf of Alaska.
Alaskan processors shared with us that the Cod are not pooling this year, the stocks appear to be scattered.
--- As a result, there are limited inventory holdings on Pacific Cod on the West Coast.
New production from the current open season is non-productive, several processors have commented.
Offers from trading companies for non-program business are limited, with prices on shatterpack fillets nearly 40 cents per pound higher than last year and only on A season production.
8-16oz shatterpack pacific cod fillets are in the range of $4.15 - $4.20 per pound in Seattle, with 16-32oz fillets closer to between $4.25 and $4.35 per pound.
Some buyers took an early position on inventory in preparation for the shortage, but buyers without inventory will be hard pressed to find product through the balance of the year.
Inventory shortages could lead to buyers seeking replacement product such as Atlantic Cod, Icelandic Cod, or even Pollock.
Our recommendation to buyers in this market is the buy now without hesitation, including Chinese twice frozen fillets.
--- To wrap this episode up, our TradexLIVE offer of the week is for 16-32oz IQF Sinbad brand Pacific Cod fillets.
These are #1 quality, twice frozen, and in our 100 percent guaranteed Sinbad brand.
We have 2,500 lbs available in Los Angeles for $2.98 per pound. This is an opportunity buy in a very short market.
Click or tap the icon above to view this offer.
----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