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.
Issue link: https://seafoodbusiness.epubxp.com/i/139359
Top Species Photo courtesy of Chicken of the Sea Frozen Foods Producers expect blue-swimming crab prices to frm as demand rises. Crab Blue-swimming crab market stabilizes, while others vie for a share of the plate BY JOANNE FRIEDRICK A fter a turbulent 2012 in which supplies of blueswimming crab imports fell and prices rose, the popular species is in a more stable mode this year. Indonesia, the largest producer of blue-swimming crab, is still lagging behind last year's supply to the U.S. market. Trough April, the United States had imported 4.9 million pounds, down from the 5.4 million pounds imported during the same four-month period in 2012. Te United States is the biggest market for Indonesia's crab exports, purchasing more than half of the total production. In 2011, 20 SeaFood Business July 2013 the total export volume was valued at $262 million. In all of 2012, Indonesia exported 16.2 million pounds, followed by China at 7.9 million pounds, Vietnam at 3.5 million pounds and the Philippines and Tailand at 3.3 million and 3.1 million pounds, respectively. Chicken of the Sea Frozen Foods in El Segundo, Calif., sources pasteurized crabmeat from sister companies in all of those countries, except China, as well as India and Sri Lanka. By working with these producers, says Bogdan Serbu, marketing manager, the company is able to guarantee the best quality control through vertical integration. For the past 18 months, says Serbu, the market has been in a correction mode, as prices that peaked at the end of 2011 reached levels close to the historic highs of 2008. Now, he says, "there seems to be some stability at current prices. However, as we are entering into the highdemand season for the United States, coupled with the potential shortage of domestic product, as well as lower imports year-to-date, prices could frm up." Carolyn Tippett, VP of marketing and strategic development for Phillips Foods in Baltimore, says it's questionable whether issues in the domestic blue crab mar- been minimal fuctuation in prices in the frst half of the year vs. 2012, but she is keeping an eye on end-of-the-year storm patterns that can impact prime production areas. "Blue-swimming crabmeat prices are 5 to 10 percent below 2012," she says. Since 2008, the market has seen resurgence in demand for jumbo lump, which is one of the two most popular grades, along with claw meat. Fluctuations in pricing infuence the demand for these grades, says Tippett. As prices stabilize, claw meat demand tapers of. Demand has fallen for higher grades such as colossal, jumbo and super at the higher prices, says Serbu, while there has been an acceleration of consumption on the lower grades such as special and lump. Crab cakes are still the No. 1 way operators use crab, Tippett notes, with more than 65 percent of crabmeat applications going to crab cakes. To help chefs think beyond the time-tested recipe, Phillips is providing them with creative recipe ideas to grow menu placement. "Prepared crab cake demand is highly correlated "...demand spikes correlated to shortages in domestic crab will primarily rely on a perceived lack of supply as opposed to actual need." — Carolyn Tippett, VP of marketing and strategic development, Phillips Foods ket will impact demand for blue-swimming crabmeat. "In my opinion, demand spikes correlated to shortages in domestic crab will primarily rely on a perceived lack of supply as opposed to actual need," she says. Tippett says there has to crabmeat protein prices," Tippett says. "When crabmeat prices are at their peak, we see an increase in prepared crab cake demand. With stable market prices, we are seeing higher demand for crabmeat than prepared cakes." Visit us online at www.seafoodbusiness.com