SeaFood Business

MAY 2013

SeaFood Business is the global trusted authority for seafood buyers and sellers. We are the seafood industry's leading trade magazine with more than 30 years of experience. Our coverage is based on the "business" of buying and selling seafood.

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Market Report Mostly good news Farmed or wild, salmon prices to stay high Alaska salmon forecast, in thousands of fsh 2012 actual catch 2013 forecast King (chinook ) 333 377 Red (sockeye) 35,225 34,260 Silver (coho) 2,983 3,904 Chum (keta) 18,340 22,749 Pink 66,957 117,822 Alaska forecasts banner year for pinks W ith farmed salmon prices up 30 percent since the start of the year, don't expect Alaska's production to bring prices down. "Tey won't have any efect at all," says a CEO of a company whose primary product is Alaska salmon. "Farmed prices are going to stay where they are for a while, not recede, then if harvesting and biomass start coming out of the water in a bigger way in August and September, salmon prices will moderate." Feed costs are high and even if farmed salmon production rises, that won't bring down prices much. "Once availability fnds a level place, you still have feed costs and they're not going down," the CEO says. Prices for fresh whole farmed salmon in April Weak yen cuts crab buys were running from $2.75 to $4.15, depending on size and where the fsh is being landed, with farmed frozen fllets running between $3.30 to $5.10 a pound. Fresh farmed salmon fllets were $4.25 to $6.25 and higher, depending on cut and where they were raised. Te CEO says whole Scottish farmed salmon was running $6.50$6.75 a pound, f.o.b. New York, about $1 a pound more than this time last year. Source: ADF&G "I think it's hit a plateau; prices are high and will stay there," the CEO says. With Alaska's season set to start this month, the forecast from the Alaska Department of Fish and Game sees Bristol Bay sockeye down about 19 percent, to 16.6 million fsh, from 20.6 million in 2012. Overall, the sockeye catch is expected to dip about 3 percent to 34.3 million fsh. While sockeye may be down, the number of pinks is predicted (Continued on page 16) ISA strikes Los Fiordos, Multiexport Strong salmon sales fueled by price decline Reflagged vessels continue to poach J apan's snow crab imcrab port volume in January was down 4 percent from last year, from 46 metric tons (MT) to 44 MT, with the average price down 8 percent from 929 yen to 850 yen per kilogram (kg). In dollar terms, that price decline is greater, refecting the weaker yen. "Abenomics," Prime Minister Abe's policy of yen devaluation, means lower prices for Alaskan crabbers. In April Japanese buyers were ofering 10 percent less than in 2012 for Alaska snow crab, refecting the yen's diminished value. Tat drop still won't be enough to keep prices stable in Japan, as the yen has gone from below 80 yen per U.S. dollar to around 96 yen. Demand for Alaska king crab in Japan also looks weak, as salaries fail to keep pace with an uptick in infation, dampening luxury spending. King crab clusters are now being ofered in Japan at around 1,575 yen ($16.40/€13.10) per kg for 5L size (1,300–1,500 grams per section). Te Japanese government is struggling to prevent imports of poached Russian crab. Russia enacted a law in 2008 requiring fshery products (Continued on page 16) 14 SeaFood Business May 2013 A s this edition went to press, Chile's National Fisheries Service had declared a state of alert in the northern Aysén Region after the Infectious Salmon Anemia (ISA) virus was detected in cages belonging to the companies Los Fiordos and Multiexport. Furthermore, inspections revealed high levels of the Aligus Rogercresseyi parasite in the same cages, forcing the immediate harvest causing the shares of the companies involved and other salmon farmers to drop. It also raises doubts as to the extent of the local industry's recovery from the 2007 ISA crisis. SalmonChile, the national association of salmon farmers, says salmon exports in 2012 totaled $2.05 salmon billion, of which $1.35 billion was Atlantic salmon and $698 million cohos. The total value of exports, which constitute the vast majority of sales, was up slightly over 2011, showing an overall increase of just over $100 million. According to Central Bank data, exports of fresh or refrigerated salmon fllets totaled 74,082 metric tons (MT) in 2012, up from 41,391 MT in 2011. However, the average price went from $9,856 per MT to $7,015. In addition, it should be noted that the price gradually declined over the course of 2012, averaging $6,162 per MT in the last quarter of the year. Frozen salmon exports showed a similar uptick, with exports of frozen fllets totaling 41,218 MT in 2012, up from 24,399 MT the year before. But prices also fell, from $9,491 per MT in 2011 to $6,957 per MT. SalmonChile noted that 40 percent of exports go to Japan, followed by the United States with 22 percent and Brazil with 14 percent. Te institution also projected continuing strong sales fueled by demand in Asia and, in particular, China. — Brewington & Co. Visit us online at www.seafoodbusiness.com

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