Saving Seafood

US, China are drivers of push for more salmon production

January 18, 2019 — Demand for salmon continues to be strong globally, but the dual markets of the United States and China have salmon sellers licking their lips at the massive opportunity they represent.

Salmon’s position as a healthy staple is driving interest in the species worldwide, but the low rates of per capita consumption in the U.S. and China show that there’s still plenty of room to grow the markets in both countries, a panel of salmon experts speaking on Wednesday, 16 January at the Global Seafood Market Conference in Coronado, California, U.S.A., agreed.

Natural limits in production from wild-catch salmon fisheries, and more complicated set of restrictions on farmed salmon production, means much of that demand likely won’t be met anytime soon. As a result, prices for salmon are rising. The average price of a pound of salmon in September 2015 was USD 4.12 (EUR 3.62) in 2015 and three years later, in September 2018, the price had risen to USD 5.80. (EUR 5.09).

“That’s the outcome of that gap between supply and demand,” Andy Wink, the executive director of the Bristol Bay Regional Seafood Development Association, said.

Wink is especially bullish on the potential for the United States to become a bigger consumer of salmon, even though it already represents the largest salmon market in the world.

Read the full story at Seafood Source

Chinese processing still dominant, but cracks starting to show

January 17, 2019 — A recurring theme at the 2019 Global Seafood Market Conference, taking place from 15 to 17 January in Coronado, California, U.S.A., has been China’s dominance in the skilled processing sector, and whether rising labor costs would push that processing elsewhere.

A burgeoning middle class in China has steadily driven up the labor costs for skilled processing, particularly in the large groundfish processing sector. The trade for groundfish has historically been dominated by Russian exports to China, and Chinese re-exports to the European Union after processing.

Yet despite the rising labor costs, Chinese importing for processing show no signs of slowing, according to statistics from Rabobank International.

“They’ve had huge wage increases already,” Gorjan Nikolik, a senior industry analyst for Rabobank International, said. “They should not be this competitive, and yet they are.”

Between 2012 and 2017, Russian exports of groundfish to China decreased by more than 50,000 tons. Even with the decrease, the trade between Russia and China was still by-far the largest in the world in terms of volume, and the amount of groundfish exported from China to the E.U. barely slowed.

Those numbers tell the story of Chinese processing still representing a huge portion of the market, given Chinese exports of groundfish to the E.U. are almost exclusively processed.

Read the full story at Seafood Source

US tilapia demand falls

January 15, 2019 — Americans’ consumption of tilapia has fallen in recent years, while demand from Russia has surged, according to a new report.

While the United States is still the largest importer of tilapia, imports slid an estimated 10 KT in 2017, according to a Fact.MR report.

The U.S. trends mimic the global tilapia market, which declined 6 percent in the first two quarters of 2017, thanks to weakening consumer demand, Fact.MR found.

Consumers globally are buying other specialty fish and are more interested in pangasius, analysts said.

“A special palate for pangasius has been witnessed among seafood consumers worldwide,” Fact.MR said in the report. “The U.S. and China continue to remain the largest consumers of pangasius. Following the increasing domestic demand and lower prices of pangasius, Chinese tilapia farmers are adopting farming of other fish varieties including pangasius.”

Meanwhile, the Russian Federation imported 4 KT more tilapia in 2017 versus 2016.

Read the full story at Seafood Source

Fishmeal market turns bearish on good production, ASF, high China stocks

January 11, 2019 — The fishmeal market is described as bearish as good production in Peru weighs on market prices while stocks mount in China, as demand there takes a bigger hit than expected from an African Swine Fever (ASF) outbreak.

“It’s all bearish news,” James Frank, director of Peruvian fishmeal trading company MSICeres, told Undercurrent News Tuesday (Jan. 8). “The market is dropping in China as local fishmeal is competing with imported and port stocks are still high.”

“The [ASF] outbreak is taking a larger toll on Chinese hog herds than expected initially,” Jean-Francois Mittaine, an industry expert with 30 years experience, told Undercurrent. “I heard the situation has led to significantly lower usage of fishmeal.”

Stocks of fishmeal held in Chinese ports have hit a 10-year high for the time of year, at 186,000 metric tons, according to Chinese government figures. According to Undercurrent’s price portal, in Shanghai port, Peruvian superprime fishmeal offer prices, ex-warehouse, have fallen to CNY 10,700 per metric ton ($1,566/t), down CNY 1,200/t since mid-October.

Read the full story at Undercurrent News

China’s seafood sector rapidly growing more efficient and valuable

January 4, 2019 — There’s a lot of data being quoted recently by China’s government to show that these are prosperous times for China’s fishermen and fish farmers.

A perusal of several past editions of the Fisheries Yearbook, an annual overview of the state of the industry produced by the Ministry of Agriculture, shows there has been a 41 percent increase in the average earnings of workers in the sector over four years.

But incomes remain low by comparison to industrial wages. Average annual incomes rose from CNY 13,039 (USD 1,900, EUR 1,675) in 2013 to CNY 18,453 (USD 2,670, EUR 2,370) in 2017, but this looks low when taking into account the fact that the minimum wage in Guangzhou is CNY 3,500 (USD 510, EUR 450) per month.

It’s thus not surprising that there has been an exodus of workers from the industry, with numbers falling from 20.65 million in 2013 to 19.31 million in 2017.

Yet productivity looks high given the scale of the increase in the value of output over the same period. Total output from fisheries went from CNY 193 billion (USD 28.1 billion, EUR 24.8 billion) in 2013 to CNY 247 billion (USD 36 billion, EUR 31.7 billion) in 2017, an increase of 27.9 percent – even though the labor force in the sector fell 6.4 percent in that period.

Taking that figure apart reveals that the bulk of the growth is coming from what the Chinese statisticians categorize as “catering, logistics, and other services” related to fisheries and seafood. This category grew 43 percent in value terms between 2013 and 2017 to CNY 678 billion (USD 98.8 billion, EUR 87.1 billion). This could reveal how the industry is shifting to less labor-intensive activities.

Read the full story at Seafood Source

Commercial season opening, China tariffs could bring price relief for Washington delicacy

January 4, 2019 — The commercial crab season opened off the Washington and Oregon coasts this week, with fishers allowed to pull their pots beginning Friday.

The start of the Dungeness season — combined with a possible dip in demand from China — will likely mean prices will come down locally.

That’s welcomed news for customers who saw near record-high prices over the holidays, said Jon Speltz, owner of Wild Salmon Seafood Market in Seattle.

“It might have been at a historic high,” Speltz said of the prices, which sit at about $14.99-per-pound right now.

Fresh Dungeness crab over the holidays was in such high demand, Speltz said they “were just happy to get live crab.”

The fishery off the coast was delayed this year after tests showed crab had not filled out enough. It can start as early as Dec. 1, but has been pushed back to January over the past few seasons to allow crabs to become meatier, a spokesperson with the Washington State Department of Fish and Wildlife said.

Despite a late start, the season has remained strong over the last few years. More than 23 million pounds (10 million kilograms) of crab were landed in the 2017-18 season. That brought in a record $74.2 million in ex-vessel value.

Read the full story at KCPQ

Farm bill’s untold story: What Congress did for fish sticks

December 21, 2018 — The Farm Bill Congress passed last week will be known for many things. It increases subsidies for farmers and legalizes industrial hemp. But for Alaska, the bigger impact might be what the bill does for fish sticks served in school lunchrooms across America.

The national school lunch program has for decades required school districts to buy American-made food. But that doesn’t always happen when it comes to fish.

“There was a major loophole,” Sen. Dan Sullivan said. “Major. That allowed, for example, Russian-caught pollock, processed in China with phosphates, sent back to the United States for purchase in the U.S. School lunch program.”

Let’s break that down: Rather than buy fish sticks made of Alaska pollock, many school districts buy fish caught in Russian waters that are frozen, sent to China, thawed, cut up, sometimes plumped up with additives, refrozen and sent to the U.S. And it qualifies for a “Product of USA” label because it’s battered and breaded here.

“Literally turns a generation of kids in America off of seafood when they have this as fish sticks in their school lunches,” Sullivan said. Aside from being bad for Alaska’s fishing industry, Sullivan said the twice-frozen Russian pollock is bad seafood and kids won’t like fish day at school.

Read the full story at Alaska Public Media

SFP: Farmed shrimp has significant sustainability concerns

December 14, 2018 — A new report released by the Sustainable Fisheries Partnership on 12 December indicates that the world’s farmed shrimp production has lingering sustainability concerns with little improvement likely on the horizon.

The new report, which is a part of SFP’s “Target 75” initiative, classifies just 8.8 percent of the global production of farmed shrimp as “improving,” and none is classified as sustainable under the Target 75 standards. The major shrimp production regions that were assessed – China, Ecuador, India, Indonesia, Thailand, Vietnam – all have high chances of supply chain disruption and have significant sustainability concerns, according to SFP.

“The report highlights the need to work collaboratively across the supply chain to launch aquaculture improvement projects at the zonal scale and improve aquaculture governance,” Casey Marion of Beaver Street Fisheries said.

The biggest target for sustainability improvements, according to the report, are export-heavy markets that engage with countries more actively concerned about sustainability.

“This includes Ecuador, India, Indonesia, Thailand, and Vietnam. Together, these production regions account for 2.1 million metric tons, representing almost 42 percent of global production,” the report states.

Read the full story at Seafood Source

 

Vietnam boosts tuna exports to US in October, thanks to trade war

December 7, 2018 — The tariff conflict between the United States and China has enabled Vietnam and other tuna exporters to increase shipments to the United States and this trend is expected to continue in the coming months, Vietnam Association of Seafood Exporters and Producers (VASEP) said in a statement last week.

In October, Vietnam exported tuna worth USD 26 million (EUR 22.9 million) to the United States, soaring 35 percent from the same month in 2017 and up 36.8 percent month-on-month. The rise in October was reached following continuous declines in the previous months. And it was made when U.S. importers suspended cargoes from China due to higher duties, said VASEP.

The value of tuna exports from Vietnam to the United States in the first 10 months stood at USD 183 million (EUR 161.2 million), down nearly 3 percent from the same period last year.

Read the full story at Seafood Source