April 23, 2018 - In this week's episode we tackle the Halibut market.
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It's looking like a tough year ahead for the Pacific Halibut industry with quota cuts, inventory build-ups, and decreased demand. --- Back in March we reported if buyers...
would make the switch back to Pacific Halibut from Atlantic Halibut.
Evidence in the marketplace suggest that buyers are sticking to fresh Atlantic Halibut keeping inventories of frozen Pacific Halibut in the freezers.
The DFO managed Atlantic Halibut fishery is open year round creating a stable supply of fresh Halibut to the market.
--- Fresh Halibut is preferred in almost every application and instance in the market.
Docks pricing for Pacific Halibut are currently around $4.50 to $5.50 per pound USD.
Retail pricing for fresh Halibut fillets have been seen on the west coast between $12.00/LB to upwards of $27.00/LB USD.
This price point can move the product out of reach of consumers.
While the demand is high for fresh Halibut, the same can't be said for inventories of frozen Halibut.
--- We have seen a dramatic shift in Restaurant chains removing the premium priced Halibut from the menus replacing it with other competitively priced whitefish as they make their menu changes.
The correlation between frozen Halibut prices hitting a ceiling and the current build-up of frozen Halibut inventories is very apparant.
With the abundance of frozen Halibut inventories in the marketplace now, there could still be more room for prices to fall.
--- On March 23rd the IPHC released it's revised 2018 Pacific Halibut Catch Limits in what they are calling "more restrictive".
Total US & Canadian catch limits is set at 27.93 million pounds down 11 percent from the 2017 limit of 31.4 million pounds.
Compare this to the Atlantic Halibut Quota set at 1297 Metric Tons or rouhgly 2.8 million pounds.
Atlantic Halibut can by no means become a complete substitue for Pacific Halibut.
However, it's competitive edge in fresh sales, accessibility, and price has helped it gain national acceptance as an alternative for fresh and frozen.
20/40 H&G Pacific Halibut is sitting around $6.50/LB USD FOB Bellingham for 2017 inventories.
The same spec in Atlantic Halibut is sitting around $5.35/LB USD FOB Boston for 2017 inventories again.
If you're looking to purchase Halibut, give our Seafood Specialist a call first and we'll make sure your next move is the right move.
--- To wrap this episode up, our TradexLIVE offer of the week is for SINBAD IQF Halibut Fletches.
These are 8-16oz, twice frozen, deep skinned, and in our SINBAD brand which are backed by a 100% Net Weight Guarantee.
We have a incredible price on these available in Vancouver at only $11.99/lb USD.
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