Saving Seafood

Restaurant trends emphasize fast casual, but seafood playing catch-up

January 22, 2019 — Trends indicate that Americans are spending more and more of their money on eating out, and an increasing proportion of the ever-larger restaurant spend is being done at fast-casual establishments.

Starting in 2010, Americans’ total spending on food away-from-home started to pull away from spending on food prepared and eaten at home, to the point that Americans spent USD 100 billion (EUR 88 billion) more on eating out in 2017 than on food at home.

“Food away from home started taking up [more of peoples’] food budgets,” Richard Barry, program manager for the National Fisheries Institute, at last week’s Global Seafood Market Conference in Coronado, California.

Among that dining-out experience, one restaurant segment saw the most explosive growth: Chain quick-service restaurants, also known as “fast casual” restaurants. Even during the 2007 to 2009 recession, the segment added thousands of new locations, and in 2015 the segment had more than 200,000 restaurants across the country, up from just over 150,000 in 2005.

“The big driver behind the foodservice segment is these chain quick-service restaurants,” Barry said.

Read the full story at Seafood Source

Shrimp enters SIMP with “informed compliance” period

January 21, 2019 — As shrimp’s inclusion into a federal government program to monitor seafood imports begins its fourth week, companies affected by the program say it’s been business as usual for them.

On 31 December, NOAA Fisheries along with Customs and Border Protection officials started an informed compliance period for shrimp importers participating in the Seafood Import Monitoring Program. SIMP requires importers keep chain of custody data for products entering the United States. It also requires the shipments to come with harvest and landing data to ensure the products are properly labeled.

According to the NOAA Fisheries website, imported shrimp entries will be inspected and audited, but they will not be rejected through 1 March if the mandatory data is missing. The website adds that the “informed compliance” period allows shrimp processors and importers time to work through any accidental errors in their recordkeeping.

After 1 March, any entries without the required data will be rejected.

The 31 December start date was announced in a Federal Register publication last April. While there is a limited shutdown of the federal government currently, R.L. Visconti, an import broker, told SeafoodSource imports still need to comply with the guidelines.

Jeff Stern, vice president of purchasing for Censea, a major U.S. shrimp importer, said at the Global Seafood Market Conference on 16 January that all of his company’s shrimp entries are being processed as normal.

Read the full story at Seafood Source

‘Three-fold competition’ arises for tighter cod supplies as tariffs could invert haddock price gap

January 18, 2019 — According to figures released at the National Fisheries Institute’s Global Seafood Market Conference, world cod supply is expected to decline to 1.5 million metric tons in 2019, down from 1.59 million metric tons in 2018.

Todd Clark, a founder and partner at Endeavor Seafood, an importer and marketer of frozen seafood based in Newport, Rhode Island, said that there’s a downward supply trend in both Atlantic cod, driven by reductions out of the Barents Sea, and Pacific cod, where US supply has fallen somewhat in the Bering Sea and sharply in the Gulf of Alaska.

“There’s a steady decrease in both of these resources, really,” Clark said.

Looking at Atlantic cod supply in historical perspective, the resource, at 1.3 million metric tons in 2017, has fluctuated between a low of under 1 million metric tons in 2007 and a 2.75 million metric ton high seen in 1974.

Read the full story at Undercurrent News

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

Global shrimp supply will remain high for foreseeable future

January 18, 2019 — The glut in the global supply of shrimp that persisted throughout 2018 will remain in 2019, as cold storage facilities in the United States continue to have supplies lasting months in storage.

A panel of experts at the Global Seafood Market Conference in Coronado, California on 17 January said cold storage facilities in the U.S. had, at times, 30 percent more shrimp in storage in 2018 than they did in 2017.

In addition, the panel predicted that the reserves will not be drawn down significantly in 2019. The primary reason for that is production of shrimp in India, which panelists said will remain close to its record high of 740,000 metric tons (MT), with production in other countries starting to increase as well.

“It all comes back to, ‘What are we going to do with all this shrimp?’” said Jeff Goldberg, president of Fortune Imports.

Estimates indicate that there’s 290 million pounds of shrimp currently in cold storage facilities in the U.S., representing a supply that, with no further production or imports, could last more than three months.

That high amount of supply in storage is coupled with increasing supply coming from countries like Ecuador. Between 2013 and 2018, production of shrimp in Ecuador more than doubled, going from 219,412 MT to 471,026 MT.

Ecuador and India aren’t the only countries with increasing supply. Indonesia, Vietnam, and Mexico also saw growth. The most dramatic growth occurred in Guatemala, which has consistently increased between 30 to 40 percent year-over-year.

Read the full story at Seafood Source

Maine lobster landings up slightly in 2018; Canadian catch remains even

January 17, 2019 — Maine’s lobster harvest was up slightly in 2018, but didn’t match the total of the record-setting 2016 season.

Fishermen in Maine landed a little over 110.8 million pounds (50,258 metric tons – MT) of lobster in 2017, after landing an all-time high of nearly 131 million pounds in 2016. Data shared at the 2019 Global Seafood Market Conference revealed that the 2018 catch total finished at around 119 million pounds.

“It was a very, very healthy harvest rate from Maine this year,” Keith Moores, president of seafood supplier F.W. Bryce, said in sharing the data during his presentation.

Moores reported unofficial figures show the Canadian harvest was stable in 2018 at around 90,000 metric tons. In 2017, Canada caught 92,682 metric tons of lobster, or approximately 200 million pounds and In 2016, the catch was nearly identical, at 92,601 metric tons.

“As far as harvesting, there’s a very stable supply of lobster,” Moores said of the 2018 projections.

After a delayed start due to bad weather, the Canada’s current season has been steady, according to Owen Kenney, the sales and business development manager of Downeast Specialty Products, which has lobster operations in both Canada and Maine.

Because of several factors – most notably the trade war between the U.S. and China – live exports from Canada increased significantly in 2018, and even more so in the current season. That created what Kenney called a “different dynamic” for the sector, in which the processing sector had little to no access to raw material compared to the previous January.

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

Scallops poised to jump back on US casual restaurant menus

January 28, 2018 — MIAMI — Previously deemed to be saddled with prices too volatile to offer at casual restaurants in the US, look for scallops to come back on menus in 2018, predicts Sean Moriarty, vice president of sales for Blue Harvest Fisheries.

Good luck finding Atlantic sea scallops at the types of sit-down dining establishments Americans most often frequent, like Olive Garden, Applebee’s or Outback Steakhouse.

The price of the shellfish have proven too lofty and volatile for such major chains to take the risk. But that could change soon as the global supply of scallops promises to reach an epic high in 2018, pushing prices to a more affordable range.

“I think the domestic consumption should continue to increase,” said Moriarty Wednesday during a panel on bivalves at the National Fisheries Institute’s (NFI) Global Seafood Market Conference, in Miami, Florida. “I think, especially in 2018, you’ll see a push to get back on the menu, not just in appetizers but in the center of the plate.”

Moriarty’s vertically integrated New Bedford, Massachusetts-based employer — one of the US’ top five producers of Atlantic sea scallops with 15 vessels operating in New England — will be among those rooting for more restaurants to join the scallop party.

Along with few abrupt changes in recent times – including a sudden drop that followed a glut of landings in May 2017 — scallop prices have grown overall since 2011, according to Urner Barry figures shared by Moriarty at the event.

Read the full story at Undercurrent News

 

Oysters remain king as growers race to meet consumer demand

January 23, 2017 — Demand for oysters continues to trend upward heading into 2017, with production capacity expanding to satiate consumer demand.

According to a panel of bivalve and oyster experts speaking at the National Fisheries Institute’s 2017 Global Seafood Market Conference in San Francisco, California, “the number of oyster growers [is] increasing just to keep up with demand.”

The rate of oyster consumption particularly at restaurants, remains strong, with the popular shellfish serving to elevate complementary species such as mussels, clams and scallops, noted the panel.

Read the full story at Seafood Source

Price spread between U10, 20-30 US scallops likely to widen

January 19, 2017 — SAN FRANCISCO, Calif. — More smaller-size scallops are set to be landed in the 2017/2018 US fishing year, which could widen the price gap between U10s-10/20s and 20/30s, according to one executive on the shellfish panel on Wednesday at the Global Seafood Market Conference (GSMC).

Although the US landings are forecasted to increase 15% to 46 million pounds in 2017/2018, the quantity of U10s is not expected to rise.

“We think it will be static on U10s. They [U10s] are unlikely to increase as a percentage of the fishery,” said Sean Moriarty, vice president of sales with Blue Harvest Fisheries, one of the largest US scallop catching companies, during the 2017 GSMC in San Francisco, California.

While some of the new open areas for the fishery are likely to yield more large scallops, the southern areas are producing less.

According to price data up to September last year presented by the panel, U10s are on the increase and have been over $20 per pound, but 20/30s have been sliding.

Read the full story at Undercurrent News