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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Top Species Dellinger says, so he instructs customers to be aware of what they are buying. Avendra doesn't set specifcations, but rather works with distributors to provide options to its diverse customer base. Tat includes, says Dellinger, setting guidelines around price, quality and service. "We require that our distributors have a plan around traceability and sustainability," he says, but Avendra doesn't support a particular NGO. What's important, Dellinger says, is that distributors ofer diferent sizes, prices and country of origin of farmed salmon. have tested both farmed and wild salmon without incident. While DNA is the preferred method of quality control from Avendra's point of view, Dellinger says whatever methods companies are taking to ensure authenticity of supply are welcome. "Consumers are looking for some type of direction," Photo courtesy of Norwegian Seafood Council A global marketplace "Consumers are looking for some type of direction. They are asking more questions about seafood and thus companies are implementing more measures." — Cory Dellinger, strategic contracting managerseafood, Avendra he says. "Tey are asking more questions about seafood and thus companies are implementing more measures." Avendra also works with companies doing price audits, checking suppliers' invoices and raw costs against the price lists that are being sent out to distributors. Farmed salmon is a big mover with his customers, 30 SeaFood Business May 2013 When it comes to supply, Canada, Chile, the Faroe Islands, Scotland and Norway continue to be key producers of farmed salmon. In 2012, Canada exported more than 180 million pounds of whole farmed salmon to the United States, along with another nearly 10 million pounds of fllets. Chile's contribution exceeded 148 million pounds, while the Faroe Islands exported about 25 million pounds of whole farmed salmon and fllets. And the United States imported almost 12 million pounds of fllets and whole farmed salmon from Norway. Te addition of farms and the optimization of production at existing sites is driving growth in the Northeast, says Pam Parker, executive director of the Atlantic Canada Fish Farmers Association, which encompasses salmon farms in Newfoundland, New Brunswick and Nova Scotia. About 60 percent of production is sold in the Northeast United States, she says, with the remainder staying in Canada. "In Atlantic Canada, we are seeing that both Newfoundland and Nova Scotia have strategies to grow" by adding farms or increasing production through improved feeding methods, she says. Even though Atlantic Canada's salmon farming industry has 30 years under its belt, it's still a relatively new industry, she points out, and residents in the area are supporting its growth. And Nova Scotia could see 300 new jobs from a new hatchery and processing plant. Demand has risen recently, says Parker, which is helping to strengthen pricing, as has the addition of valueadded product. "Right now, our companies are meeting demand, but as production increases, they'll explore expansion of their market," she says. Te industry has experienced sea lice in the warmer temperature waters around New Brunswick, she says, and is dealing with it by testing treatments, including the use of hydrogen peroxide, and researching biological controls. Four new farms have been approved for New Brunswick in the past year and there are more applications in the works for Nova Scotia and Newfoundland, she says. Te industry is supported by the provincial governments, which see value in the industry. "Tey are seeing a quality product with a low environmental footprint," says Parker. "Salmon can be raised in harmony with other species, such as lobster, in our jurisdiction. Salmon farming has so much potential for our rural coastal communities." Growing global demand for salmon, especially in Eastern Europe and Asia, has Norway looking for opportunities as well, says Karin Olsen, U.S. director of the Norwegian Seafood Council (NSC). Although Norway isn't expecting a big increase in supply, it is working hard to serve its biggest markets, she says, which are France and Russia. Last year, Norway exported about 132,000 metric tons to Russia, she says, which corresponds with heightened demand as Russia adds more supermarkets. Growth in the French market is up 30 percent, she says. Meanwhile, the U.S. market represents about 10 percent of Norway's overall salmon exports, says Olsen. To build its U.S. business, Olsen says the NSC has focused on supermarket dieticians. "Tey are good spokespeople for a healthy diet and we need to get seafood on their agenda," she says, adding that salmon is an especially good source of omega-3 fatty acids. Handing out recipes and providing background on Norwegian salmon is also helpful to advancing its visibility, she says. Issues such as sustainability, traceability and the health of the fsh have been addressed or are being addressed through various efforts, says Olsen. "We already have a good system on traceability and sustainability. Te control of sea lice and escapes are the biggest issues that are currently being addressed," she says, with goals for both in sight. Like the Altantic Canada farmers, Norwegian suppliers are testing diferent techniques for cleaning fsh and treating sea lice, she says. A system is being constructed to track escaped salmon, possibly through DNA, back to their farms. Contributing Editor Joanne Friedrick lives in Portland, Maine Visit us online at www.seafoodbusiness.com

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