globefish highlights - issue 4/2015exchange rate developments have been one of the main influencing...

H I G H L I G H T SA QUARTERLY UPDATE ON WORLD SEAFOOD MARKETS

31/10/2015

4

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JANUARY - JUNE 2015S T A T I S T I C S

Issue /2015

Bibliographic reference:

GLOBEFISH Highlights2015FAO/GLOBEFISH Highlights (4/2015): p. 56

A quarterly updatebased onthe GLOBEFISH databank

About GLOBEFISH

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GLOBEFISH forms part of the Products, Trade and Marketing Branch of the FAO Fisheries and Aquaculture Department and is part of the FISH INFOnetwork (see below). It collects information from the main market areas in developed countries for the benefit of the world’s producers and exporters. Part of its services is an electronic databank and the distribution of information through the GLOBEFISH European Fish Price Report, the GLOBEFISH Highlights, the GLOBEFISH Research Programme and the GLOBEFISH Commodity Updates.

The GLOBEFISH Highlights is based on information available in the databank, supplemented by market information from industry correspondents and from six regional services which form the FISH INFOnetwork: INFOFISH (Asia and the Pacific), INFOPESCA (Latin America and the Caribbean), INFOPECHE (Africa), INFOSAMAK (Arab countries), EUROFISH (Central and Eastern Europe) and INFOYU (China).

This issue of GLOBEFISH Highlights has been prepared by Helga Josupeit, Shen Nianjun, Paola Sabatini, Anna Child and Turan Rahimzadeh with contributions by Shirlene M. Anthonysamy, Felix Dent, Eloisa Espinoza, Fatima Ferdouse, Maria Marti Fluxa, Erik Hempel, Rodrigo Misa, Marie Christine-Monfort, Shen Nianjun, Ferit Rad, and Katia Tribilustova. Helga Josupeit provided quality checks for all reports, Anna Child provided editing services and Turan Rahimzadeh was responsible for the layout. The Norwegian Seafood Council provided data support for the FAO Fish Price Index.

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1995-201520th AnniversAry of the

Code of ConduCt for responsible fisheries

INSIDE THIS ISSUE...Global fish economyAfter years of rising seafood exports, global trade values are contracting in 2015. There are several reasons for this including the weakening of many key emerging markets, lower prices for a number of important species and the cancellation of the second anchoveta season in Peru in 2014,. However, the primary underlying cause of this decline is the strong gains of the US dollar versus multiple currencies. p. 2

Weak market prices persist in 2015 but import demand remains disappointing

In the first half of 2015, global production of farmed shrimp was lower than the same time period last year, particularly with less than expected harvests in Asia. Production in Ecuador was higher during this period, with

Viet nam as their top export market. p. 3

Low tuna catches worldwide have led to global price increases, despite moderate demand

During the third quarter of 2015, frozen skipjack prices increased strongly by almost 50%, but started to decline in October. For the first half of 2015, the sashimi tuna market in Japan remained weak. For the

first time in history, US imports of air-flown fresh tuna were higher than that of Japan and this could become a common feature in the future as well. p. 9

Cod supplies expected to improve with sustained demand while outlook for hake is weak

Cod and haddock quotas in the Barents Sea have been increased, which is likely to result

in higher supplies of whitefish for next year. However, hake presents a mixed picture, with southern European and South American resources dwindling, while Gulf of Biscay European quotas will grow. p. 14

Squid landings on the decline, strengthening prices while octopus supplies easing

The closing of the squid season off the Argentine coast ended in disappointment. Landings were well below expected levels, which have put pressure on prices. In contrast,

octopus supplies have improved and are expected to ease the supply situation over the next half year. p. 18

Demand slows down, supplies adequateWhile major suppliers experienced production problems in 2014, a growing volume of supplies are entering domestic markets in the major producing markets. pproximately 200 000 tonnes of tilapia entered the international

market during the first half of 2015, a marginal decline compared with the same period in 2014. p. 22

Supplies tighten from major producerThe largest producer of pangasius, Viet Nam, reported a marginal decline in production during the first half of 2015. Demand remains strong in the USA, the single largest market, as well as in Asia and Latin America. p. 24

Long-term profitability the top priority as supply growth halted The Greek industry, which previously benefitted from significant EU investments, has struggled for cash flow in a difficult

economic environment for some years now. p. 26

Norwegian prices stay up but Chilean exporters facing serious challenges

roblems are mounting for the Chilean farmed salmon sector, with prices now down at 2012 levels and production costs already well above other producing countries. Due

to a range of different factors, demand for Chilean fish has suffered in all major markets and revenues are well down. In contrast, Norwegian farmers continue to enjoy high prices and resilient EU demand. p. 30

Mackerel and herring stocks in the North Atlantic are in good shape

The Russian import ban continues to have an effect on international trade, as Russian domestic landings are replacing imports,

especially those from Iceland. p. 36

Fishmeal and fish oil prices continue to rationalize while a strong El Niño will impact the entire sector soon

The 2014 cancellation of the second anchovy fishing quota in Peru negatively impacted the production of both fishmeal and fish oil in the first six months of 2015 despite strong catches of pelagics in Iceland. p. 40

Drop in mussel and scallop trade, sales of oysters remain strong

In the first six months of 2015, international trade of both mussels and scallops experienced declines, though to differing degrees depending on the country. In most cases, this negative trade trend reflects a general decline in production, due

either to bad weather or to adverse environmental changes). (ocean acidification). By contrast, international sales of oysters in the first half of 2015 have been strong. p. 43

Growing demand for lobster Demand for lobster is growing in China, and US exports are being diverted to this well-paying market. At the same time, supplies have been tight due to a difficult winter and a poor start to the season in the USA. Consequently, prices are on

the rise. p. 47

Alaska‘s snow crab quota cut by 40% Recent surveys indicate a decline in the Alaska snow crab resource, prompting the Alaska Department of Fish and Game to reduce the quota for 2015-2016. But in northern Norway, the king crab fishery was off to a very good start in September. Prices are strong and US prices are

expected to rise. p. 49

SPECIAL FEATURE

Labour conditions in the fisheries and fish processing sector p. 51

Fish and fishery products statistics p. 55

EVENTS

2015 - I International Fisheries Stakeholders Forum 20th Anniversary of the Code of Conduct (FAO) p. 56

CEPH

ALOP

DSGR

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FISH

TILA

PIA

TUNA

SM

ALL

PELA

GICS

SAL

MON

PAN

GA

SIU

SBA

SS &

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FISH

MEA

L & FI

SH O

IL L

OBST

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AB

SHRI

MP

GLOB

AL F

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ECON

OMY

BIV

ALVE

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2 Globefish highlights october 2015

GLOBAL FISH ECONOMY

large retail chains in the USA who are increasingly looking to Norway and Canada to meet demand for farmed salmon. Shrimp producers, meanwhile, will be hoping that tighter supply this year will arrest and reverse a substantial decline in prices in 2015. For fishers of small pelagics, stocks of herring and mackerel are good in the North Atlantic, but the Russian trade ban continues to create some turbulence in the market.

The FAO Fish Price Index was 6 points lower in June 2015 compared with the same month in 2014. Some of the most important traded species such as tuna, salmon and shrimp have all seen overall price declines this year. Some species have seen price increases, however, such as herring, cephalopods, oysters and scallops. Prices for fishmeal and fish oil remain at relatively low levels for the time being, but the approaching El Niño is expected to affect anchoveta catches in South America and drive prices and production costs upwards once again, particularly given what is already a shortfall in supplies for the ever-growing global aquaculture sector. Another prominent issue that has been highlighted again this year is the growing awareness amongst consumers of sustainability and health aspects of the fish they buy, something that is set to increasingly demand the attention of all the players in the world’s seafood market.

After years of rising seafood exports, global trade values are contracting in 2015. There are several reasons for this including the weakening of many key emerging markets, lower prices for a number of important species and the cancellation of the second anchoveta season in Peru in 2014. However, the primary underlying cause of this decline is the strong gains of the US dollar versus multiple currencies, particularly those of major seafood exporters such as the EU, Norway and China. Exchange rate developments have been one of the main influencing factors in global seafood markets this year.

2015 is still registering growing traded volumes as the upward trend in global fish consumption is continuing, but at a slower pace. Current projections put per capita consumption at 20.1 kg in 2015, 0.1 kg higher than 2014. The proportion of farmed fish in this total has increased once again this year, after overtaking that of capture fisheries in 2014. Global fish production is estimated to grow by some 2.6% this year, with a 5% increase in aquaculture production, in a continuation of the long-term trend.

The USA has again been the top performing market for seafood so far in 2015, driven by good economic growth and significantly boosted purchasing power for importers. US buyers have also been able to avail of low prices for shrimp, tuna, Chilean salmon and tilapia. Demand in the EU is stable, while Japanese imports have been impacted by a weak yen. Major emerging markets, particularly Russia and Brazil, have also been affected by depreciating currencies and economic difficulties that have been supressing consumer spending. For Russia, there will be ongoing challenges to supply domestic seafood markets following the decision to extend the Russian food import embargo until early 2016.

Of the large producing countries, Norway continues to benefit from good prices for cod and salmon despite the absence of the important Russian market, while Chinese processing of whitefish is down this year on lower catches. Despite a brief recovery in raw material prices in October, the tuna industry continues to see margins squeezed by excess catches by global tuna fleets, although low fuel prices are providing some relief in terms of costs. In the salmon market, there has been a sharp divergence in the revenues of Norwegian and Chilean exporters, as the latter has lost major supply contracts with

World fish market at a glance

2013 2014 2015

change: 2015 over 2014

estim. fcast.

million tonnes %

World balance

Production 162.8

164.3 168.6 2.6

Capture fisheries 92.6 90.0 90.6 0.7

Aquaculture 70.2 74.3 78.0 5.0

trade value (exports Usd billion) 136.1

143.5 129.8 -9.6

trade volume (live weight) 58.8 59.5 59.8 0.5

total utilization 162.8

164.3 168.6 2.6

Food 141.0

144.6 147.5 2.0

Feed 16.8 15.0 16.4 9.7

Other uses 5.0 4.8 4.7 -2.1

sUPPlY and demand indicators

Per caput food consumption

Food fish (kg/year) 19.7 20.0 20.1 0.9

From capture fisheries (kg/year) 9.9 9.7 9.5 -2.2

From aquaculture (kg/year) 9.8 10.3 10.6 3.8

2013 2014 2015 change* FAO FISH PRICE INDEX (2002-2004=100)

148 157 145 -8.2

* change Jan-Jun 2015 over Jan-Jun 2014Totals may not match due to rounding.

The FAO fish price index (100=2002-2004)

source: norwegian seafood council

0

20

40

60

80

100

120

140

160

180

TOTAL

AQUACULTURE

CAPTURE

3Globefish highlights october 2015

Supply

Farmed shrimpIn Asia, the season that usually begins around April/May was very delayed this year. The extreme hot weather in India caused a three-month delay in the monsoon, causing non-viral disease in certain areas and affecting overall production volume.

In India’s Andhra Pradesh, the country’s largest vannamei farming area, aquaculture production has been 30% lower during the first half the year. Harvests also remained lower than last year’s in Orissa but increased moderately in Gujarat, Kerala and West Bengal. According to industry sources, total Indian farmed shrimp could be anywhere from 10-20% lower in 2015 compared with 2014.

Production in Viet Nam, China and Malaysia has been lower due to disease problems. However, for the first time since 2012, farmed shrimp production in Thailand recovered, reaching nearly 160, 000 tonnes during the January-September period. Total Thai production in 2015 is likely to be 250 00 tonnes, an increase of 35 000 tonnes

compared with production in 2014. Exports have increased accordingly.

In China, shrimp disease surfaced frequently, taking its toll on shrimp aquaculture in the southern provinces of Hainan and Fujian. As a result, the shrimp growth rate has slowed down considerably, making production volume much lower than average. This coupled with falling market prices forced many farmers to raise alternative aquatic species.

During the first six months of 2015, Vietnamese shrimp farmers reduced their stocking density by 30% to combat EMS and falling export prices. The industry association VASEP calculated a 1.6% decline in vannamei production during this period against the same period last year. Reportedly, large farms are doing well but production declined at the small-scale level. Local raw material shortages resulted in higher imports of shrimp for re-export and export processing, especially from as far away as Ecuador.

Farmed shrimp production increased in Ecuador during the first half of the year due to early harvesting in May because of the EMS scare. Since July, farmers have opted for lower stocking density to reduce mortality. Beginning in late April, some farmers decided to emergency harvest and as a result, Ecuador’s shrimp production in May reached 30 000 tonnes compared with last May’s monthly average of 23 000 tonnes. The National Fisheries Institute in Ecuador however, denied the presence of EMS in the country.

This year, supplies in Honduras and Nicaragua are being affected by EMS disease. In Mexico, the situation has improved, and farmed shrimp production has increased compared with last year

Wild-caught shrimpThere was a marginal decline in cumulative landings of shrimp (-3.8%) in the US Gulf of Mexico during the first six months of 2015 compared with the same time period in

Weak market prices persist in 2015 but import demand remains disappointing

In the first half of 2015, global production of farmed shrimp was lower than the same time period last year, particularly with less than expected harvests in Asia. Production

in Ecuador was higher during this period, with Viet nam as their top export market. Shrimp prices plummeted by 15-20% in international trade compared with the first six months of 2014 as a result of the supply and demand disparity in the USA, the EU and Japan. For exports, India, Indonesia and Thailand managed to increase their volumes to the USA, albeit with plummeting export revenues. There were also higher imports to Viet Nam, the Republic of Korea and China during this period.

SHRIMP

Penaeus vannamei

42%

Argentine red shrimp

2%

Southern rough shrimp

6%

Akiami paste shrimp

11%

Others32%

Shrimp production by species (2013)

Source: FAO


Exports increased from Thailand by 6% (70 562 tonnes) and also from Indonesia. In Viet Nam, VASEP reported a 17% drop in shrimp’s export value.

USAThe USA is the world’s single largest import market for shrimp. As such, it influences international shrimp prices significantly. During the first half of 2015, US importers paid 20% less for shrimp imports compared with last year but end consumers in the USA, particularly in the retail market, did not benefit much from this development due to the high priced inventory market.

Outdoor dining improved during the summer holiday months (June-August) with greater demand for shrimp benefiting the restaurant trade. Lower import prices also induced higher imports during the first half of the year, even with more than sufficient stocks in the market.

The US shrimp market remains oversupplied because of increased catches of domestic shrimp this year. Total shrimp supplies (imports plus US domestic landings) were about 8-10% above 2014’s figure. Meanwhile, wholesale buyers remained conservative, buying only on immediate orders.

Wholesale prices in the US shrimp market remain largely unstable and at a low level due to several factors. First, demand is tight. In addition, wholesale buyers are wary

2014. Ex-vessel prices of all medium sized shell-on products weakened significantly.

Import and export trends

In general, global demand for shrimp softened during the January–June 2015 period compared with the same time period in 2014.

Stronger US dollar and weak export prices supported higher imports into the US market. Yet imports declined in other developed markets, notably in the EU, Switzerland, Japan, Australia and New Zealand compared with the same period last year. In Russia, the weak rubel and depressed economy sunk imports by a notable 64% during the reporting period.

However, imports into the East Asian markets of China and the Republic of Korea increased for domestic consumption.

In the global market, weaker shrimp prices during the first half of the year have taken a toll on export revenues in the major producing countries, although quantitatively exports have increased.

Ecuador was the world’s number one shrimp exporter during the January-June period, as exports totaled 167 291 tonnes, demonstrating 15% volume growth compared with the same period last year. However, in value terms, exports fell by 13%. India held the second position, exporting 12% more than last year’s volume to total 160 957 tonnes.

SHRIMP

importsshrimp: Usa

Jan-Jun

Product2010 2011 2012 2013 2014 2015

1 000 tonnes

million Usd

1 000 tonnes

million Usd

1 000 tonnes

million Usd

1 000 tonnes

million Usd

1 000 tonnes

million Usd

1 000 tonnes

million Usd

Peeled frozen 90.5 821.2 93.4 846.1 102.4 1 303.9 103.9 1 034.4 52.1 681.7 47.6 505.4Other frozen 33.8 330.8 27.1 272.9 33.0 474.1 33.6 392.7 15.5 224.6 17.7 217.4Breaded 18.4 125.1 16.4 109.2 19.8 176.1 23.4 182.9 10.5 95.7 11.7 94.7Other prep. 1.3 7.3 1.1 6.4 1.1 6.5 1.1 6.3 0.5 3.0 0.5 3.1headless shell-on frozenAll sizes 94.7 777.1 84.3 772.5 90.2 1 065.4 103.1 978.7 47.6 588.1 55.2 554.5< 15 8.4 123.1 7.2 112.2 6.4 119.3 9.1 158.8 3.9 72.2 5.5 95.815/20 8.7 87.3 6.4 69.1 6.8 100.9 9.7 118.3 3.6 54.6 5.2 68.921/25 11.9 104.2 12.7 129.3 12.9 171.2 16.2 160.4 7.4 101.3 8.3 88.526/30 14.8 123.6 14.4 134.5 14.6 182.4 16.1 148.7 8.5 109.4 8.0 79.231/40 17.7 128.8 16.4 136.5 15.7 176.8 20.4 173.8 8.9 102.9 11.4 101.641/50 11.8 79.7 11.8 89.5 11.9 120.8 13.3 98.6 5.7 59.1 7.1 54.451/60 10.2 65.0 8.1 56.3 10.7 102.0 9.4 65.3 5.1 49.8 5.2 37.661/70 6.3 39.0 4.1 26.8 6.2 54.5 4.8 30.0 2.4 21.7 2.4 15.9> 70 4.7 26.6 3.1 18.3 4.9 37.5 4.1 24.8 2.1 17.2 2.0 12.7Other products 1.2 7.8 1.5 19.5 1.3 15.0 3.0 28.0 0.8 11.3 2.3 13.8total 239.8 2 069.3 223.9 2 024.8 248.6 3 041.1 268.1 2 623.0 127.1 1 604.5 135.1 1 389.0

source: nmfs


SHRIMP

importsshrimp - raw frozen tropical: Japan

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)

Viet Nam 16.3 13.0 14.1 14.8 12.3 13.0Indonesia 15.7 15.1 15.1 16.6 10.5 11.8India 9.1 8.1 10.1 11.9 7.5 8.1Thailand 17.6 15.8 16.2 12.0 4.7 4.9Argentina 0.9 2.3 3.7 4.8 8.9 4.3Russian Fed. 4.4 4.4 3.8 3.7 3.9 3.6China 5.5 7.1 6.5 5.3 4.6 3.1Canada 3.4 2.9 2.9 2.0 2.6 2.4Myanmar 2.1 2.6 2.4 2.2 2.1 1.8Malaysia 3.1 4.5 3.5 2.5 1.5 1.3Bangladesh 1.4 1.2 1.2 1.9 1.3 1.1Greenland 2.2 1.9 1.5 2.0 1.6 0.9Others 4.7 4.9 4.9 4.8 4.1 3.7total 86.4 83.7 85.8 84.6 65.4 60.0source: Japan customs

of the constant message from Thailand that the EMS issue has been solved and more shrimp will be able to come into the USA.

During the first half of 2015, import volumes of shrimp into the USA increased by 8% to total 268 600 tonnes compared with 248 300 tonnes in 2014. However, the import value declined by nearly 15% at USD 2.6 billion during this period.

Supplies of shell-on products increased from Ecuador, India and Indonesia. In the semi-processed raw tail-on category, and for value-added shrimp, Thailand was the top exporter with increased supplies this year. During the first half of 2015, US imports from Indonesia grew but declined from Viet Nam.

Although US imports increased, the market is yet to

rebound completely according to industry sources. Distributors are still buying based on what is needed. Overall, inventories remain excessive, with the exception of wild larger sizes.

JapanEven though Japanese shrimp imports have declined significantly over the years, Japan still remains the second largest importer after the USA.

In 2015, Japanese shrimp consumption seems to have improved with supermarkets holding more promotional campaigns compared with the last two years. However, the weak yen could not support higher imports and supplies declined by nearly 8% during the first half of the year against the same period last year. Imports of both raw frozen and value-added shrimp reported declines in the first half of 2015, the former by 9% when compared with the first half of 2014.

importsshrimp: Usa

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Indonesia 29.4 35.3 37.4 35.8 47.9 59.0

India 7.3 14.9 20.5 36.6 40.7 55.6

Ecuador 35.8 35.0 44.1 39.2 46.7 45.1

Thailand 81.4 77.0 60.0 41.0 26.2 31.2

Viet Nam 14.1 16.9 16.8 19.0 33.5 25.1

China 18.8 16.2 16.2 16.1 16.5 13.3

Mexico 10.5 6.7 10.8 7.4 4.7 8.6

Malaysia 9.1 9.2 10.9 8.4 7.2 6.8

Peru 4.2 4.9 4.6 5.5 6.7 6.0

Guyana 4.3 4.0 6.1 4.8 4.0 4.4

Others 14.1 12.3 12.5 9.8 14.2 13.5

total 229.0 232.4 239.7 223.6 248.3 268.6source: nmfs

TRADE DEVELOPMENTS IN THE USA

The US Department of Commerce (DOC) issued the final results of the ninth anti-dumping duty administrative reviews on frozen shrimp imported from Viet Nam, for the period of review from 1 February 2013 to 31 January 2014. DOC imposed an average anti-dumping duty of 0.91%, compared with 0.93% in the preliminary results announced in March 2015. This is much lower than the final result of period of review nine, which was 6.37%..

shrimp prices (16-20 count) in main wholesale markets, Usa and Japan

source: infofish

3

4

5

6

7

8

9

10

Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15

USD/lb Gulf brown, New York

Indian white, Tokyo

Source: Infofish


Summer holiday demand for shrimp in July/August was strong for processed shrimp but retail sales of raw shrimp did not pick up much due to the extremely hot weather. Japanese supermarkets are likely to continue promotional campaigns during their year-end sales as shrimp prices remain below levels within the past two years.

EUDuring the first quarter of the year, EU total shrimp imports increased marginally but took a dip again by the middle of the year. During January-June 2015, both

importsshrimp: spain

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)

imPortsArgentina 8.3 14.4 11.4 11.1 12.9 16.6Ecuador 8.3 15.4 13.5 10.7 14.1 11.6China 10.1 11.6 9.4 7.9 6.3 9.0Morocco 2.2 2.3 2.2 1.9 2.4 2.0Nicaragua 0.9 1.0 1.5 1.3 2.0 2.0Others 24.9 28.3 20.0 19.2 20.0 19.5total 54.6 72.9 58.0 52.1 57.8 60.7eXPorts

Italy 4.9 8.9 7.1 7.6 5.5 7.5

Portugal 3.5 3.5 3.8 3.4 4.4 4.1

France 3.2 3.0 4.5 3.3 2.4 2.8

Others 1.5 2.6 2.9 2.7 3.1 3.4

total 13.1 17.9 18.3 17.0 15.4 17.8source: agencia tributaria

importsshrimp: france

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Ecuador 12.3 12.9 13.7 16.8 16.1 17.4India 5.9 5.9 6.3 6.6 7.7 6.8Viet Nam 2.6 2.3 2.1 2.2 3.5 3.7Netherlands 2.8 3.0 3.3 3.4 2.8 2.5Bangladesh 2.3 2.5 1.8 2.6 1.6 1.7Madagascar 3.1 2.8 2.9 2.6 2.3 1.6Venezuela 1.8 1.7 2.8 2.8 3.3 1.4Spain 2.7 2.2 2.8 2.0 1.8 1.4Others 19.3 15.6 14.8 10.7 9.4 13.3total 52.8 48.9 50.4 49.8 48.6 49.8source: direction nationale des statistiques du commerce extérieur – dnsce

SHRIMP

imports/exportshrimp: eU-28

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)

imPorts

Ecuador 37.0 48.6 44.2 41.6 46.3 42.8

India 27.1 29.0 26.3 29.8 41.0 37.8

Argentina 11.5 17.9 13.9 14.9 17.7 23.1

Greenland 31.8 34.7 28.4 30.4 28.3 22.4

Viet Nam 15.3 20.3 15.5 14.9 19.2 21.9

Denmark 24.7 22.4 19.8 23.0 22.0 19.3

Netherlands 18.0 22.0 20.1 16.4 17.0 17.1

China 17.7 20.1 18.0 15.9 11.9 15.2

Bangladesh 16.8 17.5 15.7 15.8 14.4 14.5

Canada 14.3 14.1 16.5 11.8 12.5 13.5

Spain 10.3 10.1 12.8 10.7 10.8 11.8

Morocco 7.0 7.2 7.2 6.0 7.6 10.5

Belgium 10.9 13.8 11.2 10.6 11.3 9.4

UK 5.6 5.5 4.8 5.5 5.5 6.5

Indonesia 11.0 10.3 5.8 5.4 7.3 6.2

Thailand 28.7 28.6 24.9 16.8 7.5 4.9

Others 68.8 66.1 62.3 56.7 59.8 52.7

grand total 356.8 388.0 347.2 326.2 340.1 329.6

total intra imports 92.4 98.4 88.2 85.8 85.9 81.5

total extra imports 264.4 289.6 259.0 240.4 254.2 248.1

eXPorts

grand total 168.3 180.6 158.0 150.4 148.7 145.5

total intra exports 122.1 136.9 121.5 116.7 115.0 109.8

total extra exports 46.2 43.7 36.5 33.7 33.7 35.7source: eUrostat

importsshrimp (by product): Japan

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)

Live 0.1 0.0 0.3 0.5 0.2 0.2Fresh/chilled 0.0 1.0 - 0.6 0.1 0.3Frozen. raw 86.4 83.7 85.8 84.6 65.4 60.0Dried/salted/in brine 1.5 1.6 1.4 1.0 1.0 0.4Cooked. frozen 9.7 9.8 11.3 11.9 9.5 8.5Cooked & smoked 0.1 0.2 0.2 0.1 0.1 1.0Frozen ebi ** ** ** ** ** **Prepared/preserved* 9.7 9.8 11.3 11.9 9.5 17.0Sushi (with rice) 0.7 1.5 1.0 1.2 0.8 1.2

total (incl. others) 119.8 120.4 123.1 122.2 94.0 86.9* (incl. tempura shrimp )

source: Japan customs/infofish


SHRIMP

importsshrimp: italy

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Ecuador 10.6 11.0 9.5 9.3 10.8 8.8Argentina 2.8 3.0 1.9 2.6 3.0 3.7Spain 2.4 3.0 3.6 4.0 3.0 3.6India 2.9 3.3 2.5 2.6 3.5 3.3Netherlands 2.0 2.6 2.1 1.1 1.8 2.9Denmark 2.3 2.1 1.3 1.7 2.2 1.6Viet Nam 1.0 1.2 0.5 0.9 1.1 1.1Others 7.0 7.0 4.5 4.8 4.2 3.9total 31.0 33.3 25.9 26.9 29.8 28.9source: istat

Asia/Pacific When comparing the first half of 2015 year-on-year, there were mixed import trends in the Asia/Pacific shrimp market. In the developed markets, Australia and New Zealand imported less, by -25% and -17% respectively.

China’s imports were slightly higher (+5%) due to reduced domestic production. Imports into the non-producing market of the Republic of Korea increased moderately by 10% at 31 000 tonnes; Hong Kong SAR’s imports were stable at 23 000 tonnes. Malaysia imported 8% more as local production of farmed shrimp suffered due to EMS.

According to data from exporting countries, Viet Nam imported more than 100 000 tonnes of shrimp during January-June this year, which is 68% higher than compared with last year’s period. Viet Nam was the number one export market for Ecuador during the first half of the year, while for India, it was the second largest export market after the USA.

importsshrimp: Uk

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)India 3.4 3.5 3.7 4.2 5.3 5.0

Canada 3.1 3.4 3.8 2.8 3.3 4.2

Viet Nam 2.2 2.9 2.4 2.4 2.4 3.4

Denmark 4.6 4.0 3.3 3.9 3.4 3.2

Bangladesh 2.8 3.0 2.9 3.7 3.8 3.0

Indonesia 3.5 3.7 1.6 2.0 2.1 2.4

Thailand 6.5 8.1 9.4 7.1 3.4 2.3

Iceland 3.5 2.7 2.7 1.9 2.3 1.2

Others 6.8 7.4 7.9 7.0 7.0 8.1

total 36.3 38.7 37.8 35.0 33.0 32.8source: her majesty’s revenue & customs

imports/exportsshrimp: china

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)

imPortsCanada 5.0 5.3 7.5 6.4 7.4 9.2

Thailand 6.1 3.2 4.6 4.9 3.7 5.5

Ecuador 0.8 2.1 1.7 3.7 5.7 2.7

India 1.0 1.3 1.3 3.0 2.6 2.7

Argentina 0.1 0.3 0.8 1.6 2.3 2.7

Greenland 4.5 2.4 1.7 2.6 2.3 2.3

Others 7.8 9.5 6.2 5.4 8.2 8.5

total 25.3 24.2 23.8 27.7 32.1 33.6

eXPortsUSA 16.9 14.2 15.4 15.6 14.8 14.3

Japan 17.9 35.5 21.1 15.1 15.6 12.5

Hong Kong SAR 8.6 10.5 7.8 12.6 9.7 7.9

Republic of Korea 9.6 12.5 14.8 10.4 5.6 6.8

Spain 9.3 9.2 8.7 8.2 6.2 6.6

Malaysia 9.2 8.8 12.2 19.5 10.2 6.5

Taiwan 3.6 4.2 5.0 5.9 5.2 4.1

Australia 3.9 3.0 4.9 3.6 6.2 3.3

Canada 4.6 2.7 5.4 2.5 2.8 3.3

Mexico 5.4 5.2 3.7 4.4 3.9 2.7

Russian Fed. 5.6 4.7 5.7 6.0 3.9 1.3

Others 14.7 15.6 15.3 18.4 13.8 10.5

total 109.2 126.1 120.1 122.2 97.9 79.8source: china customs

intra- and extra-EU imports of shrimp fell below the same period last year, which marketers say is a result of sufficient stocks in the weak consumer market.

Among the top suppliers of tropical shrimp, exports declined from Ecuador (-10%) and India (-8%) but increased from Viet Nam (+15.5%). Imports of cold-water shrimp increased significantly from Argentina (+27.4%) but fell from Iceland due to the supply factor.

In the individual EU market, there were higher imports in Spain, France, Sweden, Portugal, Poland and Greece.

Outside of the EU, the Swiss and Norwegian markets imported less during January-June 2015 compared with the same period last year. Russia imported only 9 500 tonnes of shrimp during this period, a 64% reduction compared with this period in 2014. Imports of tropical shrimp suffered while imports of cold water shrimp from Greenland were significantly higher at 4 179 tonnes.


SHRIMP

The weakening of average import prices in Asia has been lower (5-15%) than that in western markets. Indeed, retail prices of shrimp in East Asian markets have remained high since the beginning of this year. Malaysia is an important market for shrimp in Southeast Asia where retail prices of fresh vannamei were almost 50% higher in August compared with the same month in 2014. More so, the devaluation of the national currency in Malaysia by almost 30% has made imports more expensive from neighbouring countries.

Outlook

In India, vannamei shrimp prices began strengthening in October for some sizes. Large sizes are in short supply.

Indian farmers are being conservative in pond stocking and the next harvest season will be in December, with supplies expected to decline. The seasonal wind down will also reduce production in China and Viet Nam.

In Ecuador, lower shrimp volumes were expected from the September harvest, as many farmers have opted for low density stocking. As a result, prices may bottom out in the short-term. However, the US market is holding significant supply and importers seem to be less aggressive. Lower inventory in Europe may generate limited demand for year-end sales.

Even with falling supply, the shrimp market is likely to remain demand driven until the end of the year.

EU 28 (extra) EU 28 (extra) EU 28 (extra) EU 28 (extra) EU 28 (extra) EU 28 (extra)

EU 28 (intra)EU 28 (intra)

EU 28 (intra)EU 28 (intra) EU 28 (intra) EU 28 (intra)

USAUSA

USAUSA

USA USA

JAPANJAPAN

JAPANJAPAN

JAPAN JAPAN

50 000 100 000 150 000 200 000 250 000 300 000 350 000 400 000 450 000 500 000 550 000 600 000 650 000 700 000 750 000 800 000

2010 2011 2012 2013 2014 2015

SHRIMP IMPORTS IN VOLUME BY EU COUNTRIES, USA AND JAPAN - JAN-JUN (IN TONNES)

TonneComparison to 2014, in %

-3%

-7%

8

EU 28 (extra)EU 28 (extra) EU 28 (extra) EU 28 (extra)

EU 28 (extra) EU 28 (extra)

EU 28 (intra)

EU 28 (intra)EU 28 (intra) EU 28 (intra)

EU 28 (intra)EU 28 (intra)

USA

USAUSA USA

USA

USAJAPAN

JAPAN JAPAN JAPAN

JAPAN

JAPAN

500 0001 000 0001 500 0002 000 0002 500 0003 000 0003 500 0004 000 0004 500 0005 000 0005 500 0006 000 0006 500 0007 000 0007 500 0008 000 000

2010 2011 2012 2013 2014 2015

SHRIMP IMPORTS IN VALUEBY EU COUNTRIES, USA AND JAPAN - JAN-JUN (IN '000 USD)

'000 USD Comparison

to 2014, in %

-18%

-14%

-15%


TUNA

Low tuna catches worldwide have led to global price increases, despite moderate demand

During the third quarter of 2015, frozen skipjack prices increased strongly by almost 50%, but started to decline in October. For the first half of 2015, the sashimi tuna

market in Japan remained weak. For the first time in history, US imports of air-flown fresh tuna were higher than that of Japan and this could become a common feature in the future as well. For canned tuna, export earnings suffered in Asia and Latin America during the first six months of the year, as traditional markets in the USA and EU remained lackluster. Import growth only persisted in the Middle Eastern markets.

Supply

Lower worldwide tuna catches in the main fishing regions led to rising prices in the international market during the third quarter of 2015. Indeed, the delivery price of frozen skipjack from Western Pacific to Thailand increased from USD 900 per tonne in June to USD 1 450 per tonne in September this year.

This strengthening price trend was bolstered by the World Tuna Purse Seine Organization’s decision to reduce fishing efforts by 35% from 15 May to 31 December 2015 in an effort to stop prices from weakening. In addition, there was a four-month long FAD fishing closure in Western and Central Pacific implemented from July to October 2015.

In the Eastern Pacific, landings have decreased due to a general slowdown in fishing and the IATTC ‘veda’ closure that ended on 28 September 2015. Local canneries were holding moderate inventories of raw material. Tuna prices in Ecuador stabilized between USD 1 250-1 400 per tonne as a result of low demand for canned products in the import markets. Canned tuna producers in South America are also uncertain about the potential consequences of the devaluation of various currencies versus the dollar, which makes exports from Ecuador more expensive.

Fishing was average in the Indian Ocean with raw material inventories at local canneries reported to be at healthy levels. Prices increased in Abidjan, which were lagging behind other markets; more competitive prices of raw material led to higher exports to the European markets. In the Eastern region of the Indian Ocean, lower catches of bait fishery (mackerel) in the Maldives have affected the country’s pole and line based tuna fishery during the first half of 2015 with reduced landings reported.

In Japan, total tuna landings was marginally lower (- 0.6%) to total 72 172 tonnes during January-March 2015 compared with the same period last year. However, there was a substantial rise in fresh tuna landings (+64%) from the coastal waters. During this same time period, frozen tuna landings from the distant water fishery fell by nearly 11% to 56 679 tonnes, primarily due to lower landings of skipjack and albacore tuna.

Non-canned tuna markets (fresh and frozen)

USAFavourable summer weather helped to bolster strong demand for fresh and frozen tuna steaks/fillets in the US market this year, particularly at the household level for outdoor cooking. Retail prices of fresh tuna steaks,

Skipjack tuna 55%

Yellowfin tuna 24%

Bigeye tuna 8%

Longtail tuna 4%

Atlantic bluefintuna 0%

Pacific bluefintuna 1%

Others

Source: FAO

8%

Tuna prodution by species (2013)

source: infofish

coldstorage holdingstuna: Japan

Yellowfin

Bigeye

Albacore

Skipjack

Others

0

20

40

60

80

100

120

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

1000 tonnes


generally originating from Pacific waters, ranged from USD 10.00-16.00 per pound in US supermarkets this summer with demand highest on the West Coast. During the first half of 2015, US imports of fresh/chilled tuna were higher than Japan, coming to a total of 11 300 tonnes. In comparison, Japan imported only 8 401 tonnes of fresh tuna during the same period.

However, total US imports of fresh/chilled tuna were marginally low (-3%) during the first six months of the year due to reduced catches of yellowfin tuna in the Pacific and Indian Oceans. The main suppliers to the US market were Trinidad and Tobago, Sri Lanka, Maldives and Thailand. Notably, US imports of higher value fresh bluefin and bigeye tuna increased during the first half of 2015, compared with the same period last year.

JapanExamining half yearly trade trends in the past six years, imports of fresh tuna into Japan have declined by a notable 50%. From 17 000 tonnes during the first half of 2010 to just 8 400 tonnes in the corresponding period this year. Consumption of fresh tuna is declining both at home and in the restaurant trade in Japan.

The market preference for sashimi quality frozen tuna

remains stronger than for fresh tuna due to frozen tuna’s longer shelf life. Nonetheless, imports of the preferred bigeye and yellowfin frozen tuna during the first half of the year were lower than compared with the same period in 2014, reflecting the falling demand pattern in the world’s largest sashimi tuna market.

Extra-EU imports of fresh tuna during the first half of the year declined from 2 056 tonnes in 2014 to 1 099 tonnes in 2015. Among the total, yellowfin was the main species group (1 549 tonnes) largely supplied by the Maldives (65%). Imports of frozen tuna loins/fillet, however, increased from 7 007 tonnes during the first half of 2014 to 8 397 tonnes during the same time period this year. The top three suppliers were Viet Nam (2 020 tonnes ), the Republic of Korea (1 855 tonnes) and Ecuador (1 069 tonnes).

importsfrozen tuna: Japan

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Bigeye 41.6 32.1 42.2 41.2 38.8 36.6

Yellowfin 24.8 22.7 28.4 20.2 20.6 19.2

Skipjack 32.5 20.4 15.8 8.5 10.6 21.1

Albacore 7.5 9.4 6.0 7.9 6.5 6.4

S. Bluefin 1.2 0.5 0.6 0.7 0.6 0.4

N. Bluefin 0.9 1.6 0.3 0.3 0.3 0.0

total 108.5 86.6 93.0 78.5 77.1 83.7source: Japan ministry of finance

importsfresh/chilled tuna: Japan

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Bigeye 5.8 5.6 6.6 5.6 4.9 3.2

Yellowfin 7.9 7.6 6.5 5.1 4.1 2.7

Bluefin 2.2 1.2 1.6 2.3 2.4 1.8

S. Bluefin 0.8 0.6 0.7 0.9 0.6 0.6

Skipjack 0.0 0.0 0.0 0.0 0.0 0.0

total 16.7 15.0 15.4 13.9 12.0 8.4source: infofish

importsfresh tuna: Usa

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Yellowfin 8.1 8.3 8.3 8.0 8.9 7.7

Bigeye 2.5 1.5 2.0 2.0 1.9 2.4

Albacore 0.2 0.3 0.4 0.4 0.4 0.4

Bluefin 0.3 0.2 0.2 0.3 0.4 0.4

S. Bluefin 0.0 0.0 0.0 0.0 0.0 0.0

Others 0.2 0.2 0.2 0.3 0.2 0.4


R E C E N T N E W S

Pacific Tuna Forum 2015

The fifth Pacific Tuna Forum was held in Nadi, Fiji from 22-23 September 2015. The event was jointly

organized by INFOFISH, the Ministry of Fisheries and Forests in Fiji and the National Fisheries Authority of Papua New Guinea, centered on the theme of “Achieving optimal economic benefits through sustainable tuna management and development”. Approximately 250 delegates from 32 countries within the Pacific and beyond attended the event. The forum was officially opened by the Honourable Osea Naiqamu, Minister of Fisheries and Forests of Fiji and the Honourable Mao Zeming, Minister of Fisheries and Marine Resource of Papua New Guinea, also addressed the event. The forum featured 34 presentations by 33 renowned speakers, who deliberated on issues related to resources and supply, the tuna industry in the Pacific island countries, investment opportunities, global tuna trade and markets, sustainability, ecolabelling and technological developments. The sixth Pacific Tuna Forum will be held in Papua New Guinea in 2017.

Source: INFOFISH

TUNA


TUNA

1.17 billion during the same period in 2014.

As of this writing, the most recent trade data from Ecuador was available only for January to May 2015, demonstrating a 9% decline in canned and cooked tuna export volumes compared with the same period in 2014 to total 70 808 tonnes. However, import data from the main markets demonstrated an increase in shipments to the EU (+21%) and a 30% rise in shipments to the USA.

Among the other leading producers and exporters of canned tuna in the first half of 2015, exports from Spain fell by 0.61%, by 30% from the Philippines and by 8.5% from Mauritius. China exported more cooked loins and canned tuna during this period with total exports increasing by 5% to 37 261 tonnes compared with January-June 2014. There was a significant 76% rise in cooked loins exports from China to Portugal but exports to Spain fell 55% against the same period last year. There were higher exports of canned tuna from China to Russia, Cuba and Chile.

USAImports of both canned and pouched tuna into the USA were lower in the first half of this year indicating a fall in consumer demand. Canned and pouched tuna imports totaled 99 862 tonnes, a drop of 5% compared with the 104 822 tonnes imported during the same period last year. Thailand remained the top source but with a 13.6% fall in supply, followed by China (+7%), Ecuador (+30%), Viet

Canned tuna

WorldwideFollowing a decade-long trend, the top six largest import markets for canned tuna during the first half of the year were the USA, Spain, Italy, France, the UK and Egypt. Import trends among these importers were mixed. The USA, Italy and France reported declining imports, whereas imports increased in the other three markets. Total EU imports of prepared tuna (canned tuna and cooked loins) from non-member countries remained stable during this period.

In terms of exports, Thailand, Ecuador, Spain, the Philippines and China were the leading five suppliers of canned/prepared tuna to the international market. Exports declined from all countries except China.

ThailandThe declining export trend for canned/processed tuna continued in Thailand during the first half of 2015. Export volumes weakened by -8.3% compared with the same period in 2014. There were reduced exports to the EU, the USA, Japan and Australia. Supplies increased to Egypt and to the Middle Eastern markets of Saudi Arabia, the United Arab Emirates (UAE), Oman, Qatar as well as to Brazil (+26%) and Panama. Thailand’s total export value of canned/processed tuna during the first half of 2015 declined by 18% to total USD 1 billion compared with USD

exportscanned tuna: thailand

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)

USA 59.8 53.3 37.2 36.0 37.8 27.4Egypt 25.2 21.9 20.1 10.3 11.1 19.2Australia 20.6 23.6 16.0 15.9 17.3 16.3Japan 11.6 14.8 13.5 14.5 13.2 13.4Canada 14.4 16.9 12.8 13.2 12.6 11.1Saudi Arabia 12.0 10.2 10.9 9.1 9.3 10.5Libya 11.1 4.2 15.8 13.8 19.4 10.1South Africa 4.9 4.6 5.4 4.6 5.1 6.9Papua New Guinea * * * 3.1 5.9 5.6UK 6.2 16.0 2.3 6.1 4.1 5.3Chile * * * 4.6 6.9 4.4Netherlands * * * * 3.4 3.7Yemen * * * 4.9 4.0 3.0France * * * * 3.2 2.7Argentina * * * * 2.7 2.7New Zealand * * * * 2.2 1.9Syria * * * 4.4 4.3 1.6Tunisia * * 5.8 5.4 3.6 1.5Others 108.9 104.6 63.4 60.1 50.1 51.0total 274.7 270.1 203.2 206.0 216.2 198.3source: thai customs * included under “others”

importstuna loins (cooked): Usa

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)China 0.0 2.0 5.8 5.2 10.4 12.5Thailand 13.2 14.2 8.6 13.3 14.5 8.4Fiji 6.3 4.2 4.0 5.7 4.5 5.8Mauritius 2.3 3.4 2.9 4.7 4.7 4.1Ecuador 0.1 0.0 1.3 0.7 0.3 0.8Trinidad & Tobago 4.2 3.2 0.0 0.0 0.0 0.0Others 7.3 4.9 8.2 6.0 3.5 2.8total 33.5 31.9 30.8 35.6 37.9 34.4source: nfms

importstuna pouches: Usa

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Thailand 11.7 9.6 9.6 10.3 10.5 9.0

Ecuador 6.5 5.8 5.5 7.0 6.5 7.2

Others 4.0 3.3 2.4 1.8 4.7 4.4

total 22.2 18.7 17.5 19.1 21.7 20.6source: nfms


Nam (-4%) and the Philippines (-4%). Compared with the same time period last year, there was a 20% increase in cooked loin imports from China during the reporting period.

EUDuring January-June 2015, extra-EU import volumes of canned and processed tuna increased marginally by .06% but in value-terms declined by -18% compared with the same time period in 2015. In terms of the total supply from third countries, imports increased marginally from Ecuador, the top supplier, to total 51 258 tonnes. This increase could be attributed to higher imports of cooked loins by Spain and Italy. Imports from Thailand declined by 33% to total 24 208 tonnes but increased by 26% from Indonesia ( 12 795 tonnes) and by 17% from Papua New Guinea compared with the same period last year. There

was a 35% rise in exports from Côte d’Ivoire to the EU market during this period.

Imports of cooked loins into the EU fell by 5% in the first half of 2015 compared with the same time period last year, with cooked loins taking a 29% share of total processed tuna imports into the EU. The shares of skipjack and yellowfin in total cooked loin imports during January-June 2015 were 45% and 17% respectively.

Spain, Italy, France and Portugal are the main re-processors of cooked loins in the EU. During January-June, imports increased significantly in the Spanish market (+33%) as well as in Italy compared with the same period last year. Indonesia emerged as the leading supplier of cooked tuna loins in the Italian market.

importscanned tuna (excl. pouches): Usa

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Thailand 56.0 51.5 32.9 43.2 47.4 44.2China 2.8 4.1 4.3 5.5 14.1 14.8Viet Nam 11.5 12.0 10.5 10.2 9.4 9.5Philippines 11.1 14.1 11.8 9.0 7.7 7.2Indonesia 8.3 6.3 4.9 4.9 4.7 5.7Others 3.5 5.7 4.4 3.9 16.4 17.5total 93.2 93.6 68.8 76.7 99.7 98.9source: nfms * including loins

importstuna loins: spain

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Ecuador 15.0 12.9 11.1 10.9 8.3 15.4Guatemala 4.5 4.0 4.2 3.7 2.3 2.9Mauritius 2.4 6.6 4.1 2.1 2.1 2.4El Salvador 4.5 2.9 2.7 3.2 2.8 2.7Papua New Guinea 0.9 1.5 2.4 4.0 2.2 3.5Philippines 0.0 0.0 0.0 0.5 2.0 1.2China 2.2 3.1 1.6 5.0 4.9 7.8Indonesia 0.0 0.8 2.0 1.6 0.8 0.9Madagascar 0.1 0.4 0.3 0.0 0.0 0.6Thailand 4.9 10.6 2.1 4.5 7.2 1.8Others 1.9 1.9 2.0 0.6 1.8 3.5total 36.3 44.6 32.6 36.0 34.4 45.9source: agencia tributaria

importscanned tuna: Uk

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Mauritius 11.6 11.4 13.6 11.0 10.3 9.7Seychelles 6.0 7.2 6.9 7.1 6.3 8.2Thailand 6.5 13.1 5.4 8.6 5.4 6.4Ghana 9.8 7.3 6.8 6.4 5.1 6.3Philippines 8.2 6.0 5.5 5.2 6.6 4.4Ecuador 2.4 5.8 4.7 4.5 4.6 3.9Indonesia 0.9 1.2 2.6 3.9 2.8 3.7Spain 0.8 2.8 3.2 3.1 1.9 3.2Papua New Guinea 0.8 0.7 0.7 1.9 2.8 2.5France 1.2 0.6 0.6 1.3 1.0 1.3Others 2.5 3.5 2.4 3.3 2.4 3.5total 50.7 59.6 52.4 56.3 49.2 53.1source: her majesty’s revenue & custom

importstuna loins: italy

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Indonesia - - 0.1 0.5 2.1 5.1Ecuador 5.1 5.5 5.0 6.0 3.0 3.5Solomon Islands 1.8 2.0 1.9 1.5 2.7 3.5Thailand 4.4 3.2 4.8 2.7 3.5 1.6Kenya 1.0 1.9 1.3 1.6 2.1 1.6Philippines 0.0 0.0 0.2 1.8 2.1 1.5China 2.2 2.3 1.5 1.6 1.0 1.1Côte d'Ivoire 1.1 0.3 0.0 0.0 0.1 0.7Mauritius 2.2 0.7 1.5 1.0 1.0 0.6Colombia 0.2 1.5 0.6 0.4 0.9 0.5Papua New Guinea 0.2 0.3 0.7 0.6 0.3 0.5Spain 0.1 0.1 0.1 0.2 0.6 0.4Others 1.3 1.5 0.6 1.7 3.1 1.1total 19.6 19.3 18.1 19.1 20.4 21.7

source: eurostat

TUNA


TUNA

For canned and pouched tuna, imports into the UK and Germany increased by 8% and 21% respectively. However, for the Netherlands and Belgium, imports declined by 20% for each. France and Italy imported less during the first half of this year with supplies dominated by Spanish products.

Other Markets In the Asia/Pacific region, Japan and Australia are two important markets for canned tuna. During the first half of 2015, imports into Japan totalled 25 330 tonnes, a 6.8% increase in comparison with the same period last year, which could be attributed to the cheaper raw material prices. Australian volume imports were stable at 25 000 tonnes. The markets in Southeast Asia remained weak with lower imports in Malaysia and Singapore.

In the Middle East, canned tuna imports in volume increased into Egypt, Saudi Arabia, UAE and also in GCC (Gulf Cooperation Council) countries.

OutlookIn the short-term, tuna supplies are expected to be low to moderate, although landings in the Western and Central Pacific increased slightly in September while the FAD closure ended on 31 October. To keep tuna prices stable in the global market, the Purse Seiners Association will continue to limit their fishing efforts until the end of the year. However, Thai canneries currently have sufficient raw material with moderate levels of production. Additionally, since October, tuna packers in Ecuador have been reporting falling demand from Latin American markets. As a result, price weakening is expected until the end of the year, particularly for skipjack.

Catches around the Eastern Indian Ocean have been low, impacting the pole and line fishery in the Maldives, for which prices will remain stable. Indonesia is expected to export less raw tuna for canning and produce more processed tuna, such as loins for exports.

The actual demand for canned tuna in the traditional markets of the US and EU is unlikely to improve much even though current prices of skipjack are showing some weakening trends. Asian Producers/exporters will focus more on the Middle East and emerging markets.

importscanned tuna: germany

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Philippines 7.7 8.6 7.7 6.5 7.4 11.1Papua New Guinea 5.6 4.7 5.9 4.7 4.2 5.6Netherlands 2.4 3.6 2.9 2.7 4.1 5.6Ecuador 5.0 5.1 3.9 7.1 5.9 5.0Viet Nam 1.6 2.7 2.8 4.0 4.4 4.7Spain 0.5 0.4 2.7 3.9 2.4 3.2Thailand 2.4 1.9 1.5 3.1 1.4 2.8Indonesia 3.1 4.2 3.1 2.0 1.9 2.1Seychelles 1.9 1.0 0.1 0.3 0.2 0.0Others 1.6 3.9 2.6 3.8 3.9 3.3total 31.8 36.1 33.1 38.1 35.8 43.4source: statistics germany

importscanned tuna: france

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Spain 11.3 17.5 9.3 10.9 13.8 14.5Seychelles 6.5 9.5 12.0 12.5 11.4 10.4Côte d'Ivoire 10.0 6.1 10.8 12.9 6.4 9.5Ecuador 6.6 7.4 5.8 7.6 5.3 5.3Ghana 3.8 4.3 3.0 2.2 3.9 4.3Mauritius 0.8 1.1 2.2 2.7 4.1 2.5Thailand 4.6 5.2 2.9 4.4 3.5 2.4Madagascar 1.7 5.0 3.7 3.3 2.6 1.3Others 4.8 3.6 2.5 3.3 3.8 4.2total 50.0 59.7 52.3 59.8 54.8 54.4source: direction nationale des statistiques du commerce extérieur – dnsce

importscanned tuna: italy

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Spain 21.6 25.2 23.3 18.9 28.4 22.5Côte d'Ivoire 2.9 2.2 4.6 3.7 3.2 4.7Colombia 5.3 5.6 4.7 3.5 4.9 3.4Seychelles 3.1 2.7 3.1 4.6 4.4 3.1

Mauritius 2.0 2.0 2.8 2.9 3.3 3.0Ecuador 3.0 2.3 1.8 3.1 4.4 1.5Portugal 0.5 0.8 1.0 1.1 0.9 1.1El Salvador 0.2 0.4 0.3 0.5 0.6 0.9Thailand 1.6 1.5 1.2 1.0 0.5 0.6France 0.3 1.0 0.5 0.1 0.0 0.1Others 1.0 1.2 1.1 1.6 2.1 2.7Total 41.4 44.8 44.4 41.0 52.7 43.6Others 1.3 1.5 0.6 1.7 3.1 1.1total 19.6 19.3 18.1 19.1 20.4 21.7source: eurostat


GROUNDFISH

Cod supplies expected to improve with sustained demand while outlook for hake is weak

Cod and haddock quotas in the Barents Sea have been increased, which is likely to result in higher supplies of whitefish for next year. However, hake presents a mixed

picture, with southern European and South American resources dwindling, while Gulf of Biscay European quotas will grow. Surimi production is increasing, as market demand strengthens, except in China and Europe.

Resources

Through the Russia-Norway agreement, the cod quota for the Barents Sea has been set at 894 000 tonnes for next year. This is 89 000 tonnes more than ICES suggested, but 99 000 tonnes less than in 2014. The two countries also chose to set the haddock quota a little higher than ICES’s advice, at 244 000 tonnes. This represents a 35% increase compared with 2015. Thus, the total groundfish quota for the Barents Sea is at an all-time high. Consequently, weaker prices are expected, though the Scandinavian bank Nordea expects prices to remain firm or even edge upwards.

For the 2015-2016 season, Iceland increased its cod TAC to 239 000 tonnes, up from 216 000 tonnes during the previous season. This TAC has nearly doubled since 2008, and the stocks seem to be in good shape. However, Iceland is generally landing more cod than their TAC. In fact, on average, they have landed 9.2% more cod than the TAC set over the past two years. If this continues, one should expect Iceland to land about 260 000 tonnes during the 2015-2016 season. In contrast, the country has not filled its saithe quota in recent years. In the 2014-2015 season, saithe landings were 13.5% lower than the TAC (Source: Markofish.com).

While the cod and haddock quotas in the north are up, ICES has recommended that the hake quotas in Iberian waters (Cadiz Gulf, Portugal, Galicia and the Cantabrian

Sea) should be reduced by 62%. At the same time, it was recommended that the northern hake quota (in French waters of the Gulf of Biscay, Scotland, Ireland and Gran Sol) could be increased slightly.

The state of the southern hake resource in Chile is not good. The resource has been declared overexploited, and the authorities are now running a “ban awareness campaign”. The “Paremos El Merluzeo” (“Let’s stop catching hake”) campaign ran through the month of August to protect the resource during its reproduction period (Source: FIS.com).

Trade

For a number of years, China has been an important re-processor of whitefish. Most of the supplies for this activity have come from large groundfish nations like Russia, the USA and Norway. But during the first six months of 2015, China imported 16.2% less round frozen cod than during the same period in 2014. China imported less fish from both Norway and Russia, though modestly more from the USA. Imports from Norway fell from 27 429 tonnes in the first half of 2014 to 14 714 (-46%), while imports from Russia fell from 40 059 to 28 701 tonnes (-28%). Imports from the USA increased by 18.7% to 41 316 tonnes during

Alaska pollock 42%

Cod Source: FAO25%

Hake 16%

Whiting 9%

Saithe 4%

Haddock 4%

Groundfish production by species (2013)

importsWhole frozen cod: china

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)USA 14.6 26.8 36.8 26.2 34.8 41.3

Russian Fed. 21.1 36.3 35.6 36.2 40.1 28.7

Norway 7.9 6.4 10.6 18.5 27.4 14.7

Greenland 1.5 2.2 1.0 1.6 3.2 5.7

Portugal 0.0 0.1 0.6 0.6 1.1 1.2

Faroe Islands 0.1 0.0 0.1 0.5 0.4 0.9

Netherlands 5.4 2.9 2.2 2.9 3.0 0.1

Others 11.9 7.7 2.3 2.4 2.3 1.3

total 62.4 82.4 89.3 89.0 112.3 94.0source: eurostat


this period. The main explanation for this change is that landings in both Russia and Norway have been lower in 2015 than last year.

According to the Norwegian Seafood Council, Norway’s exports of groundfish products continued to increase in the third quarter of 2015. Exports of klipfish (salted and dried cod-like fish) increased by 29%, while exports of salted fish fillets increased by 24%. Norwegian exports of fresh cod, including fillets, increased by 22% during the third quarter. But exports of frozen cod (including fillets) declined by 13%. As much as 74% of the frozen cod goes to the EU. Despite a 22% drop in export volume of cod from Norway, the value of exports went up by 2%, reflecting a higher price for practically all product forms.

During the first half of 2015, US imports of cod-like groundfish declined by 12.3%. Imports of both fillets and blocks went down, and most suppliers felt the decrease. The largest supplier, China, took the brunt of the decline. Imports of fillets from China went down by 7%, while imports of blocks/slabs from China declined by 21.5%.

Hake imports into Italy declined slightly during the first half of 2015, to 15 600 tonnes. Some of the largest suppliers (Spain, South Africa and Namibia) increased shipments to Italy, while the USA and Argentina shipped less to this market.

German imports of frozen Alaska pollock fillets declined by 4.7% to 67 500 tonnes during the first half of the year. All major suppliers registered declines in shipments. The major suppliers were China (59%) and the USA (31%).

German imports of frozen cod fillets, on the other hand, increased slightly during the first six months of 2015, from 14 800 tonnes in 2014 to 15 300 tonnes in 2015 (+3.4%). The main suppliers were China (40.5%), Poland (26%) and Denmark (7.2%).

importsCod-like Groundfish: USA

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)

filletsChina 34.4 42.2 41.0 40.0 41.8 38.9

Iceland 5.0 3.5 4.6 6.0 5.8 4.9

Russian Fed. 6.5 2.4 1.9 3.6 2.7 2.3

Canada 2.6 2.1 2.6 1.6 1.9 1.9

Norway 0.4 0.3 0.4 1.3 0.9 0.8

Others 1.3 1.6 4.1 6.6 7.2 5.8

total 50.2 52.1 54.6 59.1 60.3 54.6

blocks/slabsChina 18.1 17.3 17.1 14.5 16.5 12.2

Iceland 0.3 0.3 0.5 0.9 0.9 0.7

Norway 0.4 0.5 0.2 0.3 0.5 0.5

Argentina 0.3 0.2 0.5 0.6 0.4 0.5

Russian Fed. 0.8 0.6 0.3 0.2 0.1 0.2

Canada 0.1 0.1 0.2 0.1 0.1 0.0

Others 1.0 1.0 1.4 1.5 0.6 0.9

total 21.0 20.0 20.2 18.1 19.1 15.0gr. total 71.2 72.1 74.8 77.2 79.4 69.6source: nmfs

importsFrozen Alaska Pollock fillets: Germany

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)China 44.1 45.8 38.1 45.9 42.3 39.9

USA 18.4 22.7 27.6 15.3 21.4 20.7

Russian Fed. 9.1 8.5 4.5 6.3 5.1 4.5

Others 2.4 2.3 2.8 1.9 2.0 2.4

total 74.0 79.3 73.0 69.4 70.8 67.5source: germany germany

importsFrozen Alaska Pollock fillets: France

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)China 9.8 14.7 12.5 11.2 9.1 9.6

USA 2.5 5.2 4.9 4.0 4.7 5.4

Russian Fed. 2.4 2.9 2.5 5.8 4.1 4.1

Germany 1.8 3.0 2.8 3.4 3.6 3.4

Others 0.8 0.1 0.3 0.3 0.3 0.8

total 17.3 25.9 23.0 24.7 21.8 23.3source: direction nationale des statistiques du commerce extérieur – dnsce

norwegian export prices average export prices in nok per kg, fob norway

source: nsc.

0

10

20

30

40

50

60

70

80

90

100

NO

K/Kg

fob

Nor

way

Frozen cod whole

Fresh cod

Frozen cod fillets

Fresh cod fillets

GROUNDFISH


French imports of frozen Alaska pollock fillets increased by almost 7% during the first half of the year, to 23 300 tonnes. Again, China was the main supplier, accounting for over 41% of the total, followed by the USA and Russia.

UK imports of frozen cod were almost level during the first half of the year, registering only a very slight reduction, from 47 000 tonnes in 2014 to 46 500 tonnes in 2015. Iceland, Norway and Denmark shipped less to the UK this year, while Russia, Germany and the Faroe Islands shipped a bit more. There was no change for the largest supplier, China.

Surimi

The US production of Alaska pollock surimi is set to be the highest since 2005. Production in late September stood

at 186 600 tonnes, with 10% of the TAC still to catch. It is expected that between 15 000 and 24 000 tonnes of surimi will be produced during the B season, which would bring the total production to well over 200 000 tonnes. In 2005 production reached 200 400 tonnes. While surimi production is up, production of pin-bone out (PBO) is down by almost 12% so far in the B season. During the A season, PBO production was down by 11.4% compared with the 2014 season. Headed and gutted (H&G) and mince production is also down, while production of deepskin fillets is up slightly.

Viet Nam’s surimi exports to Japan are increasing. In value terms, Vietnamese exports rose by 11.5% during the first five months of 2015, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). Thus, Viet Nam now holds a 7% market share of Japanese surimi imports.

Alaska pollock surimi prices in Japan have increased for some products, and this is putting pressure on Japanese traders. Producers of kamaboko are trying to pass the price increases on to the consumers, but with little success. Kamaboko producers are struggling financially, partially as a result of this price hike.

The Chinese surimi market is facing weaker demand. Since the beginning of 2015, demand has been weak and prices have declined. At the same time, cold storage holdings are building up. As a consequence, some of the larger producers have entered into a price war to move product to consumers and to convert storage holdings into needed cash.

In 2014, Chinese surimi production reached some 225 000 tonnes, but production is now in decline in several provinces. A number of factories have stopped production altogether for a few months in order not to tie up funds in larger cold storage holdings (Source: Undercurrent News).

Though global consumption of surimi is rising, Europe’s consumption is lagging behind. At the ninth Surimi School Europe Forum in Madrid in September, information on this trend was presented. While the Republic of Korea imports about 130 000 tonnes of surimi every year, and demand is gradually increasing, consumption in Europe appears to be at a standstill. Main surimi exporters to the Republic of Korea in 2014 were Viet Nam and China. Korean imports of Alaska pollock surimi from the USA increased by almost 10% in 2014 (Source: IntraFish).

Within Europe, Spain is the largest consumer of surimi products, with a per capita consumption of nearly 1 kg per year. The second largest market is France. Surimi sales in Spain increased during the first half of the year by 3.5% in volume and 2.5% in value, reflecting somewhat lower prices in 2015. Two thirds of the surimi sold in Spain, or about 25 000 tonnes, is sold within retail. The chilled section in supermarkets has especially seen growth in sales.

importsfrozen cod: Uk

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)China 6.3 7.7 8.4 10.0 11.6 11.6

Iceland 7.8 8.3 8.4 9.3 9.3 9.1

Russian Fed. 5.0 4.1 6.4 7.6 7.1 8.1

Norway 4.7 5.6 4.3 5.1 6.7 5.5

Germany 3.3 4.3 4.1 4.0 3.1 3.3

Denmark 3.5 3.7 3.8 4.7 2.8 1.1

Faroe Islands 3.0 3.5 3.6 4.4 2.6 4.5

Greenland 1.9 1.8 2.4 2.2 1.8 0.8

Poland 1.3 1.1 1.4 1.4 0.8 0.8

Others 1.9 2.0 1.1 1.5 1.2 1.7

total 38.7 42.1 43.9 50.2 47.0 46.5source: her majesty's revenue & customs

importsFrozen Hake fillets: Italy

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Spain 3.6 3.3 2.6 2.4 2.9 4.1

South Africa 2.6 2.6 2.9 3.0 2.7 3.6

USA 1.6 1.5 1.5 2.1 3.2 2.7

Namibia 2.1 2.1 2.3 3.1 2.1 2.4

Argentina 4.8 4.4 3.2 3.9 2.1 1.1

Peru 0.0 0.1 0.3 0.8 0.9 0.8

Uruguay 3.4 3.5 1.2 1.9 1.4 0.7

Chile 0.8 0.4 0.3 0.3 0.1 0.0

Others 1.2 1.3 1.4 1.7 0.9 0.2

total 20.1 19.2 15.7 19.2 16.3 15.6source: eurostat

GROUNDFISH


GROUNDFISH

Indeed, the share of chilled surimi retail sales has gone up from 38% in 2005 to 62% in 2015. New products, such as surimi squid rings, has contributed to this development.

Though Spain is seeing growth in surimi sales, demand in the rest of Europe is rather flat or declining as noted above. According to Undercurrent News, in France, the market has declined by 5% by volume, while only minor changes are registered elsewhere. The trend towards chilled products is noted in the rest of Europe, too, and in the Benelux countries, Germany and the UK, chilled products are totally dominating the market.

Prices

Headed and gutted cod prices appear to be relatively steady, but haddock prices have been much more unpredictable. Shipments to China from Russia and Norway have been varying from USD 2 250 to 2 800 per tonne, and where the price trend is headed seems to be unknown.

However, two factors have recently influenced the haddock markets. First, the Barents Sea haddock TAC was increased by 25% to 223 000 tonnes for 2015. This obviously increased supplies, and this was followed by a further increase to 244 000 tonnes for 2016.

The second factor that is influencing this market is the increased Chinese quarantine inspections of Norwegian whitefish. Shipments from Norway have so far not been stopped, but shipments are delayed because of careful and slow inspections of the Norwegian fish. (Source: Undercurrent News).

Cod prices on the Spanish market have increased over the past year, but consumers seem willing to accept this. In 2014, cod prices on this market increased by 15-20%, and during the first half of 2015 this trend continued as supplies have been tight. At the same time, there is a general trend towards consumption of higher-value products such as fresh fillets.

Russian pollock catchers are building up inventories and thus holding back supplies in an effort to push prices upwards. They are keeping stocks in cold storage in China and are financing smaller catchers as Russian banks are unwilling to do so. They do not appear to be in a rush to sell, as Chinese banks support them in these efforts. Thus, pollock is held back while the catchers are waiting for prices to improve.

Outlook

The outlook for the coming months is one of improved supplies of cod and cod-like species. Consequently, declining prices can be expected but this may not happen, as demand is strong. However, political and inspection problems in China are disrupting the price outlook for haddock, while cod prices are more stable. For hake, the supply outlook is weaker, and prices are expected

to firm up.

US surimi production is growing and may reach record levels in 2015. The global surimi market is also growing, but there are challenges in specific areas. While the market is growing in most of the world, Europe seems to be at a standstill, and prices may be weakening.

source: european Price report

2.48

2.0

2.3

2.5

2.8

Stick 250 gr/pc

EUR/kg

SURIMI - in France, origin: Spain

3.453.55

3.95

2.5

3.0

3.5

4.0

4.5

5.0

Fillets, skin-on 4-6 Fillets, skin-on 6-8 Fillet, skin-on > 8

EUR/kg

HAKE - in Spain, origin: Namibia

5.756.758.008.75

3.5

5.5

7.5

9.5

11.5

13.5

100-250 gr/pc 250-500 500-1000 >1000

EUR/kg

MONKFISH - In Spain, origin: Namibia

14.00

5.0

9.0

13.0

17.0

21.0

25.0

H&G - < 800 gr/pc

NOK/kg

HADDOCK - H&G, origin: Norway


CEPHALOPODS

Squid landings on the decline, strengthening prices while octopus supplies easing

The closing of the squid season off the Argentine coast ended in disappointment. Landings were well below expected levels, which have put pressure on prices. In contrast, octopus supplies have improved and are expected to ease the supply situation over the next half year.

Octopus

After having been excluded from Mauritanian waters for three years, Galician cephalopod vessels are now hoping to return to these waters for the octopus fishery. However, the Galician vessels generally only have licences to fish demersal species. Vessel owners claim there is plenty of octopus, while also pointing out that the Galician octopus fleet only totals 16 vessels. As a result, they advocate that their participation in this fishery would not have a negative impact on the resource.

In August, the octopus fishery in the Campeche and Yucatan waters of Mexico began. The main target species is the four-eyed octopus (Octopus maya), and it is expected that a total of some 10 000 tonnes will be landed in 2015. In other areas of the Mexican Gulf, red octopus and common octopus are the main species caught.

Trade

All of the main markets for octopus registered significant increases in imports during the first half of 2015, reflecting improved supplies and to some extent increased demand.

In Japan, demand for octopus is on the rise, partly as a result of currency exchange rate fluctuations. The weak yen has pushed prices for imported frozen fish up, diverting demand to steamed and cooked octopus, which are more moderately priced. It is now expected that demand will increase as the year-end sale season approaches. According to Japanese statistics, per capita consumption of octopus in Japan has increased by about 15% from 2014 to 2015. Better landings in Africa have also helped keep octopus prices low.

Octopus imports into Japan in the first half of 2015 increased significantly. Total imports were up by 38.5%. The main suppliers, Morocco and Mauritania, both shipped considerably more during this period than compared with the same period last year. China and Viet Nam also registered increases in their shipments to Japan, albeit much more modest growth.

Following a similar trend, Italian octopus imports grew during the first half of the year, from 20 700 tonnes in 2014 to 25 100 tonnes in 2015 (+21.3%). Morocco is by far the largest supplier and accounted for over 36% of total imports. Spain and Indonesia both registered increases in octopus exports to Italy, by 34% and 37%, respectively.

Squid86%

Cephalopods nei

12%

Octopus1%

Cuttlefish1%

Cephalopods production by species (2013)

Source : FAO


importsoctopus: Japan

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Morocco 6.7 2.7 3.8 12.4 9.7 14.1

Mauritania 5.7 6.3 8.5 9.9 5.1 8.0

China 4.1 3.7 3.7 2.9 3.3 3.5

Viet Nam 1.3 1.4 1.9 1.6 1.4 1.8

Thailand 0.5 0.6 0.7 0.5 0.4 0.4

Spain 0.6 0.9 1.5 0.6 0.0 0.0

Others 0.4 1.0 1.4 1.3 0.9 1.0

total 19.3 16.6 21.5 29.2 20.8 28.8source: Japan customs

In Spain, octopus imports were up by almost 48% during the first six months of 2015. Again, Morocco was the main supplier, accounting for just over half of all Spanish imports. Morocco’s shipments increased by over 61% compared with last year. Mauritania also registered a healthy increase of 65% compared with last year, and Portugal showed a marked increase in shipments to Spain (+75%).

Squid

In the Democratic Republic of Korea it is reported that the East Sea squid season resulted in an economic upturn this summer, with more activity and a general optimistic mood in the industry. However, this boom in the squid industry has also created a problem. Democratic Republic

importssquid: italy

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Spain 12.3 13.4 11.4 13.9 12.0 11.7Thailand 11.5 11.9 9.3 8.9 9.9 6.8China 2.1 3.3 2.4 3.9 4.4 4.3Peru 2.5 0.5 1.1 2.5 1.6 3.8India 4.3 4.2 1.6 3.6 3.1 3.0South Africa 2.9 3.0 1.5 1.0 1.0 2.6Viet Nam 3.6 3.6 2.7 2.1 1.7 1.2Indonesia 1.1 1.6 1.1 1.2 1.2 1.0USA 0.5 0.9 0.9 0.3 1.1 1.0

Others 3.2 2.9 2.0 3.4 3.0 2.8total 44.0 45.2 33.9 40.8 39.0 38.2

source: istat

importssquid: Japan

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)China 12.3 14.4 16.8 18.8 17.0 14.9Chile 0.1 0.9 3.5 2.5 2.7 5.3Peru 1.2 4.8 2.9 4.7 5.5 4.9Thailand 4.2 3.7 3.4 3.3 2.8 2.7Viet Nam 2.7 2.3 2.7 2.1 1.8 1.4Argentina 0.3 0.4 0.3 0.4 1.4 1.4USA 2.0 1.8 0.5 0.9 0.7 0.7India 0.8 1.0 0.7 0.8 0.5 0.5Philippines 0.6 0.4 0.6 0.7 0.5 0.5Indonesia 0.0 0.2 0.3 0.4 0.4 0.3Others 1.8 1.2 2.1 1.6 1.6 2.0total 25.9 31.1 33.8 36.1 34.9 34.6source: Japan customs

CEPHALOPODS

importsoctopus: spain

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Morocco 11.8 8.0 6.7 12.4 8.5 13.7Mauritania 2.2 3.1 2.7 2.1 3.4 5.6Portugal 0.7 1.0 0.9 3.5 2.0 3.5Italy 0.6 0.4 0.5 0.4 0.6 0.6India 0.3 0.5 0.3 0.2 0.3 0.6Algeria 0.3 0.4 0.4 0.4 0.5 0.5Viet Nam 0.9 0.5 0.6 0.3 0.4 0.5Senegal 0.4 0.7 0.8 0.2 0.4 0.4China 1.5 0.2 0.2 0.6 0.1 0.4Others 2.2 2.9 2.0 0.9 2.2 1.4total 21.0 17.6 15.1 20.9 18.4 27.2source: agencia tributaria

importsoctopus: italy

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Morocco 6.0 2.9 2.8 8.2 5.5 9.1Spain 4.6 4.5 3.0 4.0 3.2 4.3Indonesia 2.1 2.4 2.5 1.2 1.9 2.6Mauritania 1.2 1.1 0.5 0.8 1.4 1.6Senegal 1.1 1.8 2.5 1.2 1.0 1.5India 0.9 1.0 0.9 1.1 1.1 1.2Mexico 1.0 2.5 0.6 0.5 1.5 1.1Viet Nam 2.1 1.6 1.6 0.9 0.9 0.9Tunisia 0.6 2.2 2.4 0.5 1.2 0.7Thailand 0.7 0.4 0.8 0.3 1.0 0.2Others 1.8 2.6 2.2 1.6 2.0 1.9total 22.0 22.8 19.8 20.3 20.7 25.1source: agencia tributaria


of Korea’s leader Kim Jong-Un has encouraged people to move to the coast to participate in this activity, and as a result there has been a huge increase in migrant workers on the coast and a serious lack of accommodation for these migrants.

The Argentina squid season, which showed great promise earlier in the year, ended with a significant drop in landings. Total landings amounted to 153 349 tonnes in Argentine waters during the first half of the year, down from 186 166 in 2014 (-21.4%) Outside Argentine waters, about 200 vessels have been active, and catches are estimated to be between 330 000 and 400 000 tonnes. In spite of the downturn in catches, prices are low. The average price of squid from this region has been about USD 1 100 per tonne, which is well below the USD 2 300 per tonne in 2012, when similar low catches were recorded. Increases in operating expenses have also contributed to the poorer economic performance of the fleet (Source: Undercurrent News/FIS.com).

El Niño is having an effect on squid prices in Peru, as landings are down significantly, pushing prices for Peruvian giant squid up by as much as 20%. Warmer water has pushed the squid to the southern part of Peru and even to Chile, and fishermen in in the northern part of Peru are having difficulties finding the giant squid.

Undercurrent News reports that Russian buyers are now buying larger volumes of giant squid from South America. The Russians are particularly interested in the cheaper products, and have put considerable pressure on prices in spite of their larger importing volumes.

Trade

While there were marked increases in octopus imports on major markets in the first half of 2015, the same was not the case for the squid trade during the same time period.

Japanese squid imports actually showed a slight decline, from 34 900 tonnes to 34 600 tonnes. The main supplier, China, lost significant market share in Japan, although it is still the largest supplier by far. Indeed, Chinese shipments declined from 17 000 tonnes to 14 900 tonnes (-12.4%), while in contrast, Chile, increased shipments by 96%, from 2 700 tonnes to 5 300 tonnes. For the other main suppliers to Japan, there were only minor changes.

Italian squid imports also declined during the first half of the year, by a little over 2%, though here were some changes in the relative positions of the major suppliers. Imports from the top supplier, Spain, declined slightly, while imports from Thailand dropped by over 30%. Imports from Peru and South Africa increased by 111% and 160%, respectively.

Spain is importing more squid in 2015 than in 2014. Imports during the first half of the year increased by

importssquid: Usa

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)China 15.4 16.9 19.4 18.9 17.4 19.1Republic of Korea 3.5 2.4 1.7 1.7 2.1 2.9Taiwan PC 2.7 1.3 1.8 1.3 1.6 1.9Peru 1.6 1.4 1.9 2.0 1.1 1.9Thailand 2.3 1.9 2.3 2.1 1.5 1.7India 2.5 1.8 2.2 1.8 1.3 1.7New Zealand 0.8 0.7 0.5 1.1 0.4 0.2Others 2.2 2.8 7.2 5.4 4.0 4.1total 31.0 29.3 37.0 34.3 29.4 33.5source: nmfs

CEPHALOPODS

importssquid: spain

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Falkland Isl. (Malvinas) 20.9 17.1 22.8 16.9 15.5 20.0India 10.9 8.0 9.3 7.3 9.0 7.9Morocco 3.1 4.1 2.7 4.8 4.1 4.1China 5.3 5.8 5.0 5.0 4.6 3.9Peru 6.7 6.3 4.3 6.4 3.7 3.0Mauritania 0.5 0.6 0.6 1.4 1.1 2.6South Africa 2.9 2.4 1.4 0.5 0.4 1.3USA 1.4 1.6 3.6 0.2 2.3 1.1Namibia 0.4 0.8 0.8 1.3 1.0 1.0France 1.0 1.0 0.9 0.6 0.4 0.7Portugal 1.1 1.6 0.8 0.6 0.8 0.6UK 1.7 0.6 0.1 0.3 0.2 0.2Chile 0.0 0.8 1.6 0.3 0.0 0.0Others 1.0 2.0 1.5 1.7 2.2 2.0total 56.8 52.7 55.4 47.4 45.3 48.4

source: agencia tributaria



6.8% to 48 400 tonnes. Historically, the Falkland Islands (Malvinas) have been the main supplier to Spain, and still are. Imports from the Falkland Islands (Malvinas) increased by over 33%, while imports from India and China declined somewhat. Mauritania and South Africa both registered significant increases in their shipments of squid to Spain.

The USA, which is a significant importer of squid, increased imports by almost 14% in the first half of 2015, to 33 500 tonnes. China was the main supplier, accounting for 57% of total imports, followed by the Republic of Korea (8.7%) and Taiwan Province of China (5.7%).

Cuttlefish

The cuttlefish market has been rather slow for some time, but is now showing some signs of picking up. During the first half of 2015, the main importers registered increased imports, albeit by rather small percentages. Imports into Italy increased by 5.4%, with France being

the main supplier and accounting for almost one quarter of total imports. Other important suppliers were Spain and Tunisia.

Spanish cuttlefish imports increased by 5.6%. The main suppliers were Morocco (accounting for almost 55%), France (15%) and Mauritania (12%).

Prices

The low catches of Patagonian squid are expected to drive prices up dramatically, according to Spanish buyers. Prices are forecasted to rise by at least 30% from an average of EUR 3.50 per kg in March-May 2015. Some observers expected even higher prices. The low cold storage holdings are adding to this tight supply situation, as last year’s season was also disappointing (Source: Undercurrent News).

While octopus prices have been coming down lately due to an improved supply situation, squid prices have also dropped, but that is in spite of poorer supplies. Octopus prices have been declining due to an improved supply situation, and are expected to continue this trend in coming months. Squid prices have also dropped despite of poorer supplies, as demand is overall poor, as is normal at this time of the year. Squid prices are not expected to go up until March of next year, if indications on squid landings in the South West Atlantic continue to be poor.

Outlook

The supply situation for octopus is expected to improve with larger volumes becoming available on the major markets during the next six months. For squid, the situation is the opposite. Landings off South America have been disappointing for the second year in a row, and the tight supply situation will continue during the rest of 2015. Thus, squid prices will rise somewhat. For cuttlefish, it is expected that trade will pick up modestly, perhaps in response to the tight squid supplies.

importsCuttlefish: Spain

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Morocco 8.4 9.5 7.7 9.8 8.6 8.2France 1.5 1.8 2.1 1.7 1.0 2.2Mauritania 1.5 1.1 1.7 2.2 1.7 1.8Senegal 0.2 0.6 0.2 0.3 0.4 0.5Ghana 1.0 1.1 0.7 0.2 0.5 0.3China 1.8 0.6 0.9 1.3 0.2 0.3India 6.5 5.9 4.5 1.8 0.6 0.0Others 3.4 3.4 2.6 2.1 1.2 1.7total 24.3 23.8 20.4 19.3 14.2 15.0source: agencia tributaria

importsCuttlefish: Italy

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)France 3.3 3.7 3.6 3.0 1.4 2.4Spain 2.1 1.6 1.5 2.0 1.6 1.5Tunisia 2.9 3.4 2.7 1.9 2.1 1.4Senegal 1.0 1.1 0.7 0.9 0.9 1.1UK 0.6 0.4 0.7 0.9 0.3 1.1Morocco 1.1 1.5 0.6 1.1 1.5 0.8Mauritania 0.6 0.2 0.1 0.2 0.2 0.4Netherlands 0.4 0.3 0.5 0.1 0.1 0.3India 0.2 0.4 0.3 0.1 0.2 0.2Viet Nam 0.3 0.5 0.4 0.1 0.1 0.0Others 0.8 0.9 0.8 0.5 0.8 0.5total 13.3 13.9 12.2 10.7 9.2 9.7source: istat

importsCuttlefish: Japan

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Thailand 3.3 2.7 2.8 2.3 2.0 2.0Morocco 1.8 0.9 1.9 1.7 1.2 1.5Viet Nam 1.7 1.4 1.8 1.1 0.9 1.0Malaysia 0.8 0.6 0.6 0.6 0.5 0.6Republic of Korea 0.3 0.3 0.2 0.2 0.1 0.4Iran (Islamic Rep. of) 0.2 0.2 0.4 0.2 0.1 0.2Others 0.8 0.8 0.9 0.7 0.4 0.3total 8.9 6.9 8.6 6.8 5.2 6.0source: Japan customs

CEPHALOPODS


Demand slows down, supplies adequate

While major suppliers experienced production problems in 2014, a growing volume of supplies are entering domestic markets in the major producing markets.

Approximately 200 000 tonnes of tilapia (whole, filleted and breaded) entered the international market during the first half of 2015, a marginal decline compared with the same period in 2014.

TILAPIA

China

During the first half of 2015, exports of Chinese tilapia increased by 3% compared with the same period in 2014. However, exports of frozen fillets and whole frozen tilapia, both of which take up the largest share of total exports, experienced declines of -2.27% and -1.97% respectively.

In contrast, exports of Chinese breaded tilapia increased by 23.8% during the period under review. Exports were significantly higher to Cameroon as well as to other African markets, namely Côte d’Ivoire, The Democratic Republic of the Congo (DRC) and Kenya. The USA is the largest market for Chinese breaded tilapia and grew its imports in this product category by 36% during the first half of 2015 compared with the same time period in 2014.

Total Chinese tilapia exports continue to be the highest to the USA. The USA increased its imports of Chinese tilapia by 6.45% during the review period to total 71 878 tonnes. African markets are the second largest market for Chinese tilapia and absorbed a total of 45 352 tonnes during the first half of the year. The largest markets for Chinese tilapia within Africa are Zambia, Cameroon, Côte d’Ivoire and the DRC.

During the first half of 2015, Latin American markets took a 12.4% share of Chinese tilapia exports with Mexico consuming the largest share. Recently, Chinese tilapia exports have been increasing to the Islamic Republic of Iran and during the period under review, a total of 5 112 tonnes was absorbed, an increase of 17% compared with the same period last year.

USA

For the first half of 2015, total US tilapia imports totaled 111 509 tonnes, growing by 9% compared with the same period in 2014. While imports of fresh fillets remain stable, frozen fillets and whole frozen tilapia categories experienced 7.6% and 23.1% growths respectively, confirming the popularity of tilapia in the market. China took up more than 80% of the frozen tilapia market share, followed by Taiwan Province of China (PC) and Indonesia. Tilapia fillets from Indonesia and Taiwan PC are premium quality and prices are usually between 50-70% higher than for fillets from other countries. Average import prices from China weakened by 12.4% during the period under review.

Fresh tilapia imports during the first half of 2015 remained steady compared with the first half of 2014, both in terms of volume and value. Supplies fell from Honduras, the main supplier of fresh tilapia to the US market. During

importstilapia (by product form): Usa

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Whole frozen 20.0 16.9 18.0 19.0 16.0 19.7

Frozen fillets 64.5 57.9 80.8 63.9 72.4 77.9

Fresh fillets 12.5 11.7 8.5 14.1 13.5 13.4


exportschina: exports of frozen tilapia

Jan-Jun2010 2011 2012 2013 2014 2015

(1000 tonnes)Whole frozen 16.9 18.0 19.0 16.0 19.7Frozen fillets 57.9 80.8 63.9 72.4 77.9Breaded 11.7 8.5 14.1 13.5 13.4total 86.5 107.3 97.0 101.9 111.0

source: china customs

china: frozen tilapia exports by major markets (tonnes)

Jan-Jun

2013 2014 2015

(1 000 tonnes)USA 65 777 67 527 71 878Mexico 23 910 194 09 17 797Zambia 5 614 8 077 9 107Israel 4 659 6 536 7 177

Cameroon 4 422 6 679 6 732Iran 13 05 4 371 5 112Cote d Ivoire 8 823 6 082 5 097Congo DR 2 540 3 575 4 093Burkina Faso 1 286 3 363 3 990Angola 2 253 4 650 2 710tot (incl, others) 161 166 163 430 168 278


this period, imports increased from Colombia by a notable 32%.

Meanwhile, imports of frozen tilapia (whole and fillets) during the first half of 2015 were up 10.4% compared with the same time period a year ago, growing by 3 700 tonnes. Contrary to the decline trend in 2014, whole frozen tilapia imports increased by 29% from China.

Frozen fillet imports, which dominated the frozen category, increased by 7.6% with China maintaining its position as the lead supplier. However, imports increased from other sources namely Honduras, Mexico, Viet Nam, Myanmar and Malaysia.

EU

According to Eurostat, the tilapia market in the EU-28 weakened during the first half of 2015 as imports slid by 22% compared with the same period in 2014. Aside from the close to 7 500 tonnes of frozen fillet imports, the block also imported 5 812 tonnes of whole frozen tilapia, almost entirely supplied by Asian countries. China was the leading supplier (68%) followed by Viet Nam (17%), Indonesia (6.7%) and Thailand (5.8%). A newcomer as a supplier to this market is Myanmar.

Latin America

During the second quarter of 2015, US import volumes of fresh fillets from Guatemala and Costa Rica declined by roughly 60% and 30% respectively. However, the values of Guatemalan exports remained steady through the second quarter, while values from Costa Rican exports suffered only a minor decline of 1.2%. Production from both countries will also supply their local markets, which are increasingly demanding more of this commodity.

Honduras is the leading exporter of both fresh and frozen fillets from Central America to the USA. During the second quarter, both volume and values of exports remained stable compared with the same time period last year. In a similar trend to its neighboring countries, the Secretary of Agriculture and Livestock (SAG) of Honduras estimates that there will be an increase in volumes to the local market, with roughly 1 200 tonnes per year destined for domestic sales.

Asia

National statistics reveal a total of more than 79 000 tonnes of frozen tilapia fillets were exported from Asia during the first half of 2015 with China as the lead exporter. This volume was slightly lower than compared with the same period in 2014 as more supplies were channeled to domestic markets. In addition to this, more than 75 000 tonnes of whole frozen tilapia entered the international market from Asian sources as well.

Taiwan PC, which is the second largest exporter behind China, experienced a 19.5% decline in exports due to production problems and shortage in supplies. Besides the USA as the major market, Taiwanese tilapia is exported largely to Middle Eastern markets while their sashimi quality tilapia heads to Japan.

Outlook

China, the largest producer, reports a slow market amidst plentiful supply with low prices.

However, demand remains firm in other producing markets. This is expected to strengthen prices especially with Chinese New Year demand imminent.

importsFresh tilapia fillets: USA

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Honduras 3.5 4.2 2.5 3.8 5.3 4.8

Costa Rica 3.2 1.7 1.2 3.5 2.9 2.6

Colombia 1.2 1.1 1.2 1.9 1.9 2.5

Ecuador 4.1 4.1 3.3 3.2 1.4 1.4

Others 0.5 0.6 0.3 1.7 2.0 2.1


importsFrozen tilapia fillets: USA

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)China 57.5 51.9 71.3 56.5 64.8 70.0

Indonesia 4.6 4.0 6.4 5.4 5.4 4.9

Thailand 0.5 0.4 1.1 0.5 0.8 0.6

Taiwan PC 1.0 0.8 0.8 0.7 0.5 0.6

Ecuador 0.3 0.2 0.4 0.4 0.0 0.0

Others 0.6 0.6 0.8 0.4 0.9 1.8


TILAPIA

importsWhole frozen tilapia: Usa

Jan-Jan

2010 2011 2012 2013 2014 2015

(1 000 tonnes)China 11.3 10.1 12.4 10.8 9.5 12.3

Taiwan PC 7.5 5.9 5.1 7.5 5.6 4.9

Thailand 1.0 0.3 0.2 0.2 0.3 0.5

Others 0.2 0.6 0.3 0.5 0.6 2.0



Supplies tighten from major producer, demand in non-EU markets strong

The largest producer of pangasius, Viet Nam, reported a marginal decline in production during the first half of 2015. Demand remains strong in the USA, the single largest

market, as well as in Asia and Latin America. Imports into the EU continue on a downward trend, demonstrating significant declines. Approximately 230 000 tonnes of frozen pangasius entered the international market during the first half of 2015.

PANGASIUS

Viet Nam

According to the Ministry of Agriculture and Rural Development, during the first half of 2015, production of pangasius in the Mekong Delta was reported at 533 500 tonnes. This was a marginal decline (-0.85%) compared with the same period in 2014. However, production was reported to have increased in some provinces year-on-year.

Pangasius export values during this period totaled USD 750 million, down 9% compared with the same period last year. There was a significant decline (-17.6%) in exports to the EU while exports to the single largest market, the USA, increased by 4.8%. The UK and China both emerged as lucrative markets (Source: VASEP).

According to Chinese Customs, China imported 5 481 tonnes of whole and frozen pangasius fillets from Viet Nam during the first half of 2015, an increase of 2 179 tonnes compared with the same time period last year. There was a 4.1% decline in exports to ASEAN countries, while Saudi Arabia has emerged as a potential market (Source: VASEP).

USA

Pangasius Imports of frozen pangasius fillets continue on a positive trend into the USA. The market absorbed 22% more during the first half of 2015 compared with the same time period last year. As usual, Viet Nam was practically the only supplier. Interestingly, there were 67 tonnes of imports from Myanmar, a newcomer to the market.

Domestic catfish August has been designated as National Catfish month in honor of US catfish farmers and to recognize the contributions that the catfish industry had made to the economy since the 1980s. Southern states, including Louisiana, Mississippi, Alabama and Arkansas, produce most of the nation’s catfish. Mississippi is the leading producer of farm-raised catfish while Texas has the highest catfish consumption of any state.

EU

The EU market for pangasius continued its decline, decreasing imports of frozen pangasius fillets by 16.5% during the first half of 2015 according to Eurostat data, to total 52 808 tonnes. Supplies were lower from the main source, Viet Nam. However, imports increased from China while newcomer Indonesia was also present as a supplier. Within the EU, Spain continued to be the largest importer although it imported nearly 5 000 tonnes less than in the first half of 2014. Average import prices were 3% more than compared with last year at USD 2.37 per kg. Imports increased into the UK, Belgium and Portugal.

In terms of whole frozen pangasius, a total of 1 428 tonnes were imported by the EU, with all supplies coming from Asian sources with Viet Nam in the lead. Indonesia, Bangladesh, Thailand and Myanmar are among the other suppliers of whole pangasius to the EU market. Bangladesh and Myanmar increased supplies to the EU by 67% and 18% respectively. Bangladesh is increasingly growing their exports of pangasius with efforts underway to intensify production and grow investment.

Asia

Demand for pangasius in Asia remained positive throughout the first half of 2015 with both household consumers and the catering sector playing strong roles. Total imports

importsFrozen pangasius fillets: USA

Jan-Jan

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Viet Nam 19.2 34.3 47.1 48.4 44.4 54.2

China 1.8 0.8 0.2 0.0 0.0 0.0

Thailand 1.4 0.7 0.0 0.0 0.0 0.0

Others 1.1 0.2 0.2 0.0 0.0 0.0



PANGASIUS

of pangasius (whole and fillets) strengthened by 11% compared with the same time period last year to reach approximately 37 000 tonnes. Frozen pangasius dominated this volume, comprising 93% of imports. Imports increased into all Asian countries, namely China, the Republic of Korea, Singapore, Hong Kong SAR, Malaysia, Taiwan Province of China (PC), Thailand, Japan and Sri Lanka.

In India, the catering sector continues to be the main user of frozen pangasius fillets. During the first six months of 2015, total frozen pangasius imports into India (98% of which were fillets) reached approximately 2 300 tonnes from Viet Nam, demonstrating 41% growth compared with the same time period last year, the Ministry of Commerce reports. Meanwhile, local catfish production is making steady inroads, although the fillet size is smaller than compared with imported pangasius.

Other Markets

During the first half of 2015, imports of pangasius into Latin American markets reached approximately 45 000 tonnes, a decline of roughly 16 000 tonnes compared with

the same time period in 2014. This decline was largely due to significantly lower imports from Brazil as a result of a temporary ban on imports of Vietnamese pangasius in 2014. On 27 March 2015, Brazil’s Ministry of Agriculture, Livestock, and Supply (MAPA) issued a notice to re-grant an import license for seafood products from Viet Nam. This was issued after MAPA reviewed the plan on corrective actions submitted by the Vietnam Ministry of Agriculture and Rural Development.

Mexico is the largest market of pangasius within the region. According to national statistical data, total pangasius imports into Mexico reached 27 821 tonnes during the first half of 2015. Meanwhile, pangasius imports are slowly increasing into African markets, particularly for whole frozen pangasius.

Outlook

The EU market is not expected to recover soon. Prices remain low but firm, sustained by the steady demand in most other markets.

R E C E N T N E W S

MARP requests Vietnamese Government to extend deadline for farms to obtain

VietGap

The Ministry of Agriculture and Rural Development of Viet Nam has asked the government to extend

the deadline for pangasius fish farms to obtain VietGap and international certificates until 31 Decmeber 2016 as opposed to the end of this year. This request comes off the back of a new amendment by the Vietnamese Government, which requires all areas rearing pangasius nationwide to obtain the Vietnamese Good Agriculture Practice (VietGap) standards and other international certificates. Undercurrent News reports that currently, only half of the total areas rearing pangasius are in receipt of a VeitGap certificate. The amendment was initially introduced in June 2014, but since then there have been ongoing difficulties for farms to obtain the standard. The Ministry of Agriculture and Rural Development also proposed abolishing regulations requiring companies to register for export contracts as a condition to complete customs clearance procedures, and exempting businesses from fees on export contract registrations.

Source: Undercurrent News

M A R k E T N E W S A N D T R E N D S

“Pricing war” by EU discount retailers

SeafoodSource.com recently reported that a “pricing ‘war’ may be killing the pangasius industry” in Viet

Nam. According to this same news site, this pricing war has largely been created by the low prices that EU discount retailers are paying. Although VASEP and the Ministry of Agriculture and Rural Development have tried to set a minimum price for farmers when selling their fish, these efforts have not been successful. Seafoodsource.com writes that in many European retail outlets, customers can “now buy pangasius from between EUR 2.22 per kg (treated) to about EUR 2.58 per kg for a non-treated top quality fillet.” The article goes on to conclude that “at these prices, the pangasius industry in Viet Nam will not survive in anything like its current form, and already it is a shadow of what it was ten years ago. Farmers’ costs continue to escalate as the price they are being offered for their fish is constantly being eroded.” These costs include the growing expense of feed, as well as the funding required to become certified as sustainable. As a result, farmers are increasingly ceasing to grow pangasius, instead switching to rearing tilapia or shrimp

.Source: SeafoodSource.com


Long-term profitability the top priority as supply growth halted

The Greek industry, which previously benefitted from significant EU investments, has struggled for cash flow in a difficult economic environment for some years now.

This has severely restricted opportunities for further expansion and caused production volumes to decline significantly from their peak around five years ago. In contrast, ongoing heavy investment and an aggressive growth strategy has seen the Turkish seabass and seabream sector total harvest grow from some 35 000 tonnes in 2000 to over 100 000 tonnes in 2014, leading to net supply growth overall and maintaining constant pressure on prices. Now, as the Turkish growth phase winds down, prices are approaching sustainable levels and the medium-term supply outlook suggests this may be more than merely temporary relief for cash-strapped European aquaculture companies.

EUROPEAN SEABASS AND GILTHEAD SEABREAM

So far in 2015, the effects of improved prices are already evident. For fresh bream, year-to-date export volumes were 13% down by the end of August as Greece looks set to record its lowest bream harvest for almost a decade. The corresponding drop in revenue was only about 3% however, reflecting an average 12% price increase. For bass, the drop in volumes this year has been significantly less drastic, and year-to-date Greek bass exports for the same period were approximately flat. Prices for bass have also improved somewhat, but to a much lesser extent than bream. In fact, in Greece’s major market, Italy, bream prices for 300-450 g have now overhauled those of the same size bass, after lagging well behind since early 2011. Less fish at higher prices tends to have a positive impact on margins at the company level, and indeed Greek companies have been reporting sharply reduced losses, and appear to be edging towards profitability.

If prices can be sustained at high levels for at least the next two years, this will give the bass and bream sector a valuable opportunity to invest in marketing, product development and technological innovation. Although more needs to be done, progress has already been made in these areas. According to Intrafish.com, organic-certified Greek bass is being sold in multiple US supermarkets.

Productionseabass (Dicentrarchus labrax): World

Jan-Jun

2010 2011 2012 2013 2014* 2015*

(1 000 tonnes)Turkey 50.8 47.0 65.5 60.0 66.0 63.0

Greece 40.2 44.4 42.8 45.0 43.0 42.0

Egypt 17.6 18.7 14.8 15.0 16.0 16.0

Spain 12.2 18.4 15.1 15.0 16.0 17.0

Italy 6.6 6.8 6.9 8.0 8.0 8.0

France 8.6 7.7 7.3 7.0 7.0 7.0

Others 9.5 11.0 9.8 10.0 11.0 12.0

total 145.6 154.0 162.2 160.0 167.0 165.0source: fao (until 2013) * estimatesource: european Price report

Production seabream (Sparus aurata): World

Jan-Jun

2010 2011 2012 2013 2014* 2015*

(1 000 tonnes)Greece 57.4 71.1 72.5 73.0 74.0 66.8

Turkey 29.3 33.0 31.7 45.0 42.0 35.5

Spain 21.4 16.4 17.4 18.0 22.2 20.1

Egypt 17.1 15.9 16.5 17.0 17.0 16.0

Italy 6.6 5.9 6.1 8.0 9.0 10.1

Tunisia 2.8 4.6 6.1 6.0 6.0 5.0

Cyprus 2.8 3.1 3.2 3.0 3.0 2.0

Malta 1.8 1.1 2.6 3.0 3.0 2.0

France 2.6 2.4 2.0 2.0 2.0 2.0

Israel 1.2 1.4 2.1 2.0 2.0 2.0

Others 7.8 6.6 7.8 8.0 9.0 7.0

total 150.8 161.4 167.8 185.0 189.1 168.4source: fao (until 2013) * estimate

5.50

5.20

3.03.54.04.55.05.56.06.5

Seabass fresh whole 300-450 gr/pc Seabream fresh whole 300-450 gr/pc

EUR/kg

SEABASS/SEABREAM - in Italy origin: Greece

EUR/kg

SEABASS/SEABREAM - in Italy origin: Greece


Turkey, meanwhile, has developed a more diversified market base, exporting fillets and fresh whole bass and bream to Europe, the Middle East, Northern Africa, Russia and North America. North American buyers are generally

interested primarily in bass, at least for the time being, while bream is favoured in the Middle East and Northern Africa.

Over the last two years, Turkish exporters have doubled their total export revenue, reaching EUR 188 million for the first eight months of 2015. Bream has again been the most profitable species due to lower supply, but prices for bass also rose steadily over the summer and are expected to remain strong until August/September. A hard winter in the first quarter of 2015 kept sea water temperatures under seasonal averages, resulting in slower fish growth rates in the spring, boosting prices, especially for larger sizes. In the 2015 peak stocking season (April/May), Turkish hatcheries faced difficulties in delivery of juveniles due to higher fish mortalities experienced at fish hatcheries. According to industry sources, the resulting late stocking of juveniles in 2015 will delay harvest and availability of bass for export in 2016 and 2017 and will consequently boost prices.

Italy

In Italy, importers are looking away from Greece to alternative suppliers to supplement the higher-priced high-quality domestic Italian product. Turkey, in particular, has almost doubled its share of the market since 2013, while Spain and Croatia are also growing in importance. In terms of demand, current indications are positive. Domestic production is largely stable, and import volume was up around 9% by July 2015 even as prices rose. Imports of bass rose by relatively more, driven by more attractive prices. If the Italian economy can maintain recent growth following a long recession, high-season demand next year will likely see continued volume growth for both species, while the need to mitigate the higher price level should further boost the market share of relatively cheaper Turkish and Croatian fish.

Spain

Spain is reducing its dependency on imported bass, as domestic production has increased this year and is

exportsfresh seabass: turkey

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Netherlands 0.8 0.5 1.5 2.0 2.8

Italy 1.2 0.9 1.2 1.5 1.9 2.3

Russian Fed. 0.3 0.7 0.5 1.1 1.8 1.5

Spain 1.3 1.1 0.4 1.2 1.3 1.3

UK 0.2 0.2 0.6 0.8 1.0 1.1

Lebanon 0.7 0.6 0.3 0.5 0.6 0.6

Greece 1.0 0.4 0.4 0.0 0.0 0.0

Others 1.1 0.3 0.4 1.2 1.9 2.7

total 5.8 5.0 4.3 7.8 10.5 12.3source: state institute of statistics

exportsfresh seabream: turkey

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Netherlands 0.5 0.5 1.4 1.7 2.5

Italy 1.0 1.0 0.9 1.7 1.6 2.4

Lebanon 1.0 1.0 0.7 1.6 1.6 1.9

Spain 0.1 1.1 1.0 0.8 1.3 1.7

Russian Fed. 0.3 0.7 0.8 1.1 1.9 1.5

UK 0.1 0.2 0.4 0.3 0.6 0.7

United Arab Emirates 0.0 0.1 0.2 0.2 0.7 0.7

Germany 0.0 0.3 0.3 0.4 0.4 0.5

Others 0.9 0.2 0.3 1.0 1.2 2.3

total 3.4 5.1 5.1 8.5 11.0 14.2source: state institute of statistics


exportsfresh seabass: greece

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Italy 8.9 9.0 7.9 7.2 7.5 7.0

Portugal 1.3 1.3 1.1 1.2 1.1 1.3

France 1.8 2.0 1.7 1.4 1.2 1.2

Spain 2.8 2.1 1.2 1.9 1.1 0.8

UK 1.7 2.0 1.3 1.0 0.8 0.7

Others 1.8 2.3 1.8 1.5 1.4 1.4

total 18.3 18.7 15.0 14.2 13.1 12.4source: eUrostat

exportsfresh seabream: greece

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Italy 14.0 10.2 10.7 9.6 9.9 8.3

Spain 4.1 4.2 4.6 4.8 4.9 4.2

France 3.3 3.1 3.0 3.0 3.3 2.5

Portugal 1.2 2.1 2.3 2.4 2.3 2.1

Germany 1.1 1.0 1.2 1.2 1.1 1.0

Others 2.6 2.6 2.9 2.5 2.8 2.3

total 26.3 23.2 24.7 23.5 24.3 20.4

source: eUrostat


expected to rise further in 2016. The Spanish farming sector is becoming more attractive to investors as economic indicators continue to improve, prices rise and Greece eases off production. The higher domestic volumes have kept bass prices down at wholesale markets although bream prices have been driven up by tightening supply. Prices for 400-600 g bream were approaching EUR 7 per kg over the summer but how now fallen back in line with seasonal trends.

France

Wholesale prices in France continue to lag behind previous years, despite increasing import prices, particularly for fresh bream. This indicates there is some resistance to price hikes lower down the supply chain, which can be expected to continue driving the current trend of sourcing cheaper fish from Spain and the Netherlands. For the first seven months of the year, total import volumes for both bass and bream were approximately flat. However, there has been a distinct preference for bass over bream this year, likely due to diverging price trends for the two species.

Russia

Bass and bream are some of the most popular imported species on the Russian market, with the concentration of consumer demand in Moscow and St. Petersburg. After the introduction of the food embargo in August 2014, the overall focus of the Russian government has been on import substitution strategy and market saturation by domestic fish species.

Though the popularity of fresh bass and bream continues to be high, a significant portion of Russian consumers have had to switch to either cheaper fish products or to poultry due to inflation and rising prices. In the first quarter of 2015, Russian imports of bass amounted to 633 tonnes, decreasing 31% compared with the same period in 2014. The imports of bream were 668 tonnes, down by 32% over the same period of 2014. At the same time, Turkish imports continue to grow and they now represent 99.5% of the bass and bream on the Russian market.

importsfresh seabream and seabass: france (Quantity)

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)seabream (dentex/pagellus)

Spain 0.2 0.3 0.3 0.1 0.2 0.1

Greece 0.3 0.5 0.3 0.0 0.1 0.1

total 0.8 1.0 0.7 0.3 0.4 0.4seabream (gilthead)

Greece 2.5 2.3 1.8 3.0 3.1 1.8

Spain 0.7 0.3 0.9 1.3 1.4 1.2

Netherlands 0.0 0.0 0.0 0.1 0.1 0.5

total 3.5 2.8 3.0 4.7 5.0 4.2

seabassGreece 1.7 2.0 1.3 1.4 1.1 1.0

Spain 0.2 0.3 0.4 0.6 0.4 0.5

total 2.4 2.7 2.3 2.7 2.2 2.6gr. total 6.7 6.6 5.9 7.7 7.6 7.2source: direction nationale des statistiques du commerce extérieur – dnsce


importsfresh seabream and seabass: italy (Quantity)

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)

seabream (dentex/pagellus)Spain 0.3 0.3 0.3 0.3 0.2 0.3Greece 0.6 0.4 0.5 0.2 0.2 0.1total 1.1 0.8 0.9 0.5 0.6 0.5seabream (gilthead)Greece 8.3 8.3 9.4 8.9 8.2 7.7Turkey 1.0 1.0 0.9 1.5 1.6 2.4Croatia 0.3 0.3 0.4 0.5 0.6 1.0Malta 0.7 0.8 1.0 0.7 0.6 0.8total 10.8 11.0 12.4 12.2 11.6 12.6seabassGreece 8.0 8.4 7.3 7.0 6.8 6.7Turkey 1.2 0.9 1.2 1.5 1.8 2.3Croatia 0.5 0.9 0.6 0.6 0.7 1.2France 0.6 0.6 0.5 0.5 0.3 0.2total 10.5 11.1 10.0 10.1 10.0 11.3gr.total 22.3 22.9 23.3 22.8 22.2 24.4source: eurostat

importsfresh seabream and seabass: spain (Quantity)

Jan-Jun

2010 2011 2012 2013 2014 2015seabream (all species)

Greece 3.9 3.9 3.2 3.9 4.0 2.6

Turkey 0.1 1.0 1.1 0.9 1.5 2.5

Morocco 0.1 0.2 0.2 0.2 0.2 0.2

Portugal 0.0 0.1 0.1 0.1 0.1 0.2

France 0.2 0.1 0.0 0.0 0.0 0.0

total 4.6 5.5 4.6 5.1 5.8 5.6seabassGreece 2.5 2.2 1.5 2.5 1.9 1.9

Turkey 1.3 1.1 0.4 1.2 1.5 1.0

France 0.2 0.2 0.1 0.1 1.3 0.9

total 4.1 3.5 2.0 4.0 4.8 3.8gr. total 8.7 9.0 6.6 9.1 10.6 9.4source: agencia tributaria



make them potential market competitors. The results of the investigation by the European Commission into claims that subsidisation of the Turkish industry is hurting EU farmers is another developing issue that potentially has important implications for the market.

Other markets

Demand for Mediterranean bass continues to strengthen in the US market, driven by a strong currency and growing interest in the species at the consumer level. The Turkish share of the US market is steadily increasing at the expense of Greece. Germany is another potentially large market that is posting higher import volumes year after year, of both species. In the UK, meanwhile, the quantity of Greek bass on the market has dropped significantly, replaced by cheaper bass imported from the Netherlands.

Outlook

Today’s higher prices can be expected to continue over the next couple of years, as supply forecasts are for flat or negative growth in production volumes. The divergence between bass and bream prices is also likely to continue, with the latter set to be the higher-priced species in many markets. In the short-term, prices will likely drop for the winter before rising again as summer approaches in 2016 in the standard cyclical production pattern. In the longer term, however, the industry is cautious of the the growing interest and investment in bass/bream production by North African Mediterranean countries such as Morocco. Higher water temperatures/growth rates and low labour costs are seen as the advantages of these countries, which

importsfresh seabream and seabass: germany

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)seabream(dentex/pagellus)

Greece 0.3 0.2 0.2 0.2 0.3 0.1

total 0.3 0.2 0.2 0.2 0.3 0.1seabream(gilthead)

Turkey 0.0 0.1 0.2 0.7 0.7 1.0

Greece 0.5 0.4 0.5 0.7 0.5 0.4

Netherlands 0.0 0.0 0.0 0.2 0.3 0.4

Italy 0.1 0.1 0.0 0.1 0.4 0.2

total 0.7 0.7 0.8 1.8 1.9 2.2

seabassTurkey 0.0 0.0 0.2 0.5 0.6 0.9

Greece 0.3 0.3 0.3 0.3 0.2 0.2

Netherlands 0.0 0.0 0.1 0.1 0.2 0.2

France 0.1 0.1 0.1 0.1 0.1 0.1

Italy 0.1 0.2 0.0 0.1 0.1 0.1

total 0.5 0.7 0.8 1.2 1.2 1.5gr.total 1.6 1.6 1.8 3.2 3.4 3.8source: statistics germany


importsfresh seabream: Usa

Jan-Jun

2012 2013 2014 2015

(1 000 tonnes)

Greece 0.1 0.1 0.1 0.5 0.3

Others 0.1 0.1 0.1 0.1 0.1 0.1

total 0.1 0.2 0.2 0.2 0.9 0.7source: U.s. department of commerce, bureau of census

importsfresh seabass: Usa

Jan-Jun

2012 2013 2014 2015

(1 000 tonnes)

Greece 1.2 1.1 0.6 1.1

Turkey 0.8 1.0 0.7 0.3

Guatemala 0.2 0.0 0.1 0.2

Trinidad & Tobago 0.1 0.0 0.2 0.1Spain 0.1 0.0 0.1 0.1

Others 0.1 0.3 0.1 0.0

total 2.5 2.4 1.8 1.8source: U.s. department of commerce, bureau of census

5.20

5.50

4.28

2.5

3.5

4.5

5.5

6.5

Seabass seabreamSalmon

EUR/kg

Farmed Finfish: Price Trend


Norwegian prices stay up but Chilean exporters facing serious challenges

Problems are mounting for the Chilean farmed salmon sector, with prices now down at 2012 levels and production costs already well above other producing countries. Due to a range

of different factors, demand for Chilean fish has suffered in all major markets and revenues are well down. In contrast, Norwegian farmers continue to enjoy high prices and resilient EU demand. In the wild salmon market, meanwhile, both Russian and Alaskan fishermen have been seeing exceptionally good catches this year. In Alaska, the total recorded wild salmon harvest is the second highest of all time, at 257 million fish. This is not good news for exporters, however, particularly when the US dollar is as strong as it is now.

SALMON

Prices

Norwegian salmon prices started off 2015 around NOK 5 per kg below 2014 prices as high early year volumes had to be absorbed without the assistance of the Russian market. However, the situation reversed itself in the third quarter. Harvesting switched to a new generation, fish weights decreased, temperatures fell, biomasses dropped and the krone depreciated against the euro, pushing prices above 2014 levels where they have remained. Forward price consensus at Fish Pool would suggest that the market is also increasingly optimistic about Norwegian prices over the next two years.

For Chilean salmon prices, however, heavily depressed demand in the top markets has seen a steep drop in export prices to almost all destinations. In week 42, the price for fresh Atlantic fillets on the US market was at USD 7.23 per kg compared with USD 9.30 per kg for the same week last year. Meanwhile, in the wild salmon market, exceptionally good catches have kept prices down for pink and sockeye in particular.

Norway

This year has so far been another profitable one for the Norwegian salmon industry, with a range of market developments that have allowed exporters to increase the Norwegian share of important markets at the expense of other producers. In the USA, shifting consumer preferences have led to the decision of multiple large retailers to turn to Norwegian salmon at the expense of Chile. It is the EU markets, however, that continue to absorb the largest quantities of Norwegian Atlantics, despite the persistent high prices. Norwegian exporters have successfully filled

Productionfarmed salmon: World

2009 2010 2011 2012 2013* 2014* 2015* 2016*

(1 000 tonnes)

atlantic salmonNorway 940 1 065 1 232 1 168 1 250 1 250 1 310 1 310

Chile 123 264 400 492 620 600 630 630

UK 155 158 163 154 165 170 170 170

Canada 101 102 108 100 125 135 140 140

Faroe Islands 45 60 77 76 85 88 88 88

Australia 32 37 44 43 44 44 44 44

Ireland 16 12 12 9 16 17 18 18

USA 20 19 19 20 19 22 22 22

Others 7 10 12 24 12 12 12 12

total 1 438 1 728 2 067 2 087 2 187 2 338 2 434 2 434

Pacific salmonChile 123 161 164 146 130 170 175 175

New Zealand 13 14 12 12 13 13 13 13

Japan 15 0 10 12 8 8 8 8

total 151 175 186 170 136 191 196 196gr. total 1 589 1 903 2 252 2 257 2 323 2 529 2 630 2 630source: fao (until 2012) * estimate

Atlantic salmon 66% Pink

(=Humpback)salmon 14%

Chum (Keta=Dog) salmon 6%

Coho (=Silver) salmon 6%

Sockeye (=Red) salmon 5%

Salmon production (farmed and wild) by species (2013)

Source: FAO


the large gap in the market left by the Russian trade embargo by taking advantage of a weak krone, strong EU demand and new opportunities in the US market.

According to the Norwegian Seafood Council, Norway exported 571 000 tonnes of salmon to the EU in the first three quarters, worth NOK 24.8 billion. These figures represent increases of 11% and 14% respectively compared with the same period in 2014. Norway has exported more salmon this year to all of its top nine markets, all of which are in the EU, with NOK prices at or above last year’s thanks to a favourable exchange rate. Poland, a major processor and smoker of salmon, remains the largest market, and increased its share of total export volume in the first nine months of 2015 to 13%. The US market has also been a growing market for Norwegian salmon, which is increasingly seen as a favourable alternative to Chilean product. Considerable strengthening of the US dollar versus the krone has been another important factor, contributing to the almost 40% increase in exports to the US market in the first nine months of the year. Despite recent Chinese concern over ISA outbreaks in Norway, exports to Asia rose substantially in the first nine months of 2015, to 111 000 tonnes worth NOK 5.3 billion.

Total Norwegian production in 2015 is expected to grow by 4-5% in 2015, with a similar growth rate forecasted for 2016. Prices are expected to remain at high levels over the same period, which will see industry revenues increase further. The concern, however, is rising costs. Firstly, the exceptional El Niño weather phenomenon expected in late 2015 could drastically reduce anchoveta catches in South America and drive fishmeal prices steeply upwards. Another major issue is sea lice, which have reached very high levels in parts of Norway this year, prompting mass harvesting that increases price volatility and costs per kg.

exports (quantity)salmon and trout: norway

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)salmon 358.1 359.6 462.2 428.6 463.7 492.8Fresh 280.9 292.1 384.2 359.6 389.7 416.7

Frozen 21.6 22.2 24.3 16.3 17.9 17.0

Fresh fillet 34.7 26.9 31.4 32.5 35.5 36.2

Froz. Fillet 20.9 18.4 22.3 20.2 20.6 22.9

trout 12.3 9.2 25.6 25.2 25.3 20.8source: norwegian seafood council

exports (value)salmon and trout: norway

Jan-Jun

2010 2011 2012 2013 2014 2015

(bill. nok)salmon 13.7 14.9 13.8 17.2 21.3 21.7Fresh 10.2 11.4 10.7 14.0 17.0 17.1

Frozen 0.6 0.8 0.6 0.4 0.6 0.6

Fresh fillet 1.8 1.6 1.4 1.7 2.2 2.4

Froz. Fillet 1.1 1.1 1.1 1.1 1.5 1.6

trout 0.5 0.4 0.8 1.0 1.2 0.9source: norwegian seafood council

SALMON

Salmon fillet prices (fob miami, chilled, c-trim, alt. fresh, 3-4 lbs)

source: Urner barry’s seafood Price

source: european Price report source: european Price report

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15

4.28

2.0

3.0

4.0

5.0

6.0

7.0

Fresh, gutted, head-on, 3-6 kg/pc

EUR/kg

SALMON - in France, origin: Norway

3.60

3.10

1.5

2.0

2.5

3.0

3.5

Trout: Salmo spp Rainbow Trout: Oncorhynchus mykiss

EUR/kg

TROUT - Ex-farm prices in Italy


Trout

Prices for Norwegian trout steadied somewhat in the first half of 2015, but remain below levels seen prior to the Russian trade embargo. The major sources of demand are now the Belarussian and Polish markets, as Japanese demand has been negatively impacted by a weakening yen. Total Norwegian trout exports for the first 9 months of 2015 came to 35 000 tonnes, worth NOK 1.5 billion,

exports (value)salmon and trout: chile

Jan-Jun

2010 2011 2012 2013 2014 2015

(million Usd) salmon 567.7 859.6 1100.2 1293.9 1931.4 1582.8 Frozen 339.2 512.5 640.5 714.0 1123.3 880.8

Fresh 198.4 316.3 419.9 554.6 781.7 671.2

Canned 5.3 3.3 3.8 1.7 3.0 2.8

Salted 8.2 7.4 12.0 4.4 5.3 5.6

Smoked 16.6 20.1 24.0 19.2 18.1 22.4

trout 418.9 578.2 542.8 394.5 382.4 230.9 Frozen 338.5 489.1 458.4 323.8 313.9 179.1

Fresh 48.9 51.8 34.9 32.8 47.0 38.6

Canned 0.4 0.1 0.0 0.0 0.0 0.0

Salted 10.7 10.9 16.3 7.6 3.7 2.3

Smoked 20.4 26.2 33.2 30.3 17.9 10.9

total 986.6 1437.8 1643.0 1688.4 2313.8 1813.7source: boletín de exportaciones del ifoP

exports (unit value)salmon and trout: chile

Jan-Jun

2010 2011 2012 2013 2014 2015

(Usd/kg)salmon 6.33 7.54 6.26 5.59 7.85 6.33 Frozen 5.52 6.55 5.91 4.70 7.38 5.93

Fresh 7.98 9.56 6.57 7.24 8.51 6.80

Canned 7.31 10.54 13.33 9.48 9.43 10.09

Salted 6.01 6.75 6.67 3.31 7.34 5.33

Smoked 13.23 15.73 15.00 14.76 17.46 16.92

trout 6.77 7.91 6.90 5.95 9.82 7.05 Frozen 6.50 7.67 6.74 5.52 9.41 6.42

Fresh 7.63 8.72 8.33 7.85 11.46 10.46

Canned 8.66 10.74 0.00 0.00 0.00 0.00

Salted 6.15 6.82 3.72 5.60 6.52 4.56

Smoked 12.40 14.30 15.00 14.13 18.93

average 6.51 7.68 6.46 5.67 8.12 6.41source: boletín de exportaciones del ifoP

exports (quantity)salmon and trout: chile

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)salmon 89.7 114.0 175.8 231.4 246.1 250.0 Frozen 61.5 78.2 108.2 152.0 152.2 148.6

Fresh 24.9 33.1 63.9 76.6 91.8 98.7

Canned 0.7 0.3 0.3 0.2 0.3 0.3

Salted 1.4 1.1 1.8 1.3 0.7 1.1

Smoked 1.3 1.3 1.6 1.3 1.0 1.3

trout 61.9 73.1 78.7 66.3 39.0 32.7 Frozen 52.1 63.7 68.0 58.6 33.4 27.9

Fresh 6.4 5.9 4.2 4.2 4.1 3.7

Canned 0.0 0.0 0.0 0.0 0.0 0.0

Salted 1.7 1.6 4.3 1.4 0.6 0.5

Smoked 1.6 1.8 2.2 2.1 0.9 0.7


SALMON

exports (value) salmon and trout: chile

Jan-Jun

2010 2011 2012 2013 2014 2015

(million Usd)Japan 429.5 599.2 776.4 437.9 595.0 412.9

USA 218.2 328.1 409.8 541.4 754.1 629.2

EU-28 32.0 41.3 47.9 110.3 135.4 93.3

Lat. America 166.7 177.8 214.4 286.3 413.5 350.4

Faroe Islands 140.2 257.9 194.5 312.5 415.9 327.9


exports (quantity)salmon and trout: chile

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Japan 71.8 87.8 120.2 98.1 77.8 70.8

USA 23.1 29.2 49.7 64.8 71.9 70.8

EU-28 4.2 4.2 7.1 18.4 16.6 14.4

Lat. America 26.5 22.9 38.9 48.5 56.8 60.7

Faroe Islands 26.0 39.9 36.6 67.9 61.9 66.1

total 151.6 184.0 252.6 297.6 285.1 282.7source: ifoP


SALMON

8.5% less than the same period in 2014 in volume terms and 14% less in value. Significantly higher biomass and heavier fish in the pens than compared with this period last year should see prices remain relatively low for the time being, at least until seasonal demand kicks in at the end of the year.

ChileSalmon farmers has faced falling prices and the devaluation of currencies in target markets such as Brazil and Russia, as well as the advancement of Norway in the United States, one of the main markets for Chile in terms of exports (currently representing about 25% of shipments).

During the first half of this year, the Chilean salmon industry has experienced a contraction of 21% in terms of value. According to the Association of Chilean Salmon Industry (Salmon hile), the value of shipments of salmon reached USD 1 814 million, compared with USD 2 312 recorded in the same period last year. The underlying cause is the weaker average price of Chilean salmon, which, according to data compiled by Infotrade, was at USD 6.41 per kg in June 2015, compared with USD 8.12 per kg in the same period of 2014.

There was also a significant drop in Chilean salmon harvests. According to the Report on Fisheries and Aquaculture released by Subpesca, Atlantic salmon represented 47.5% of Chilean harvests during the first half of 2015. Total Atlantic salmon harvests totalled 205 900 tonnes, which means a drop of 32.8% compared with the first six months of 2014. As for rainbow trout, cumulative harvests up to June reached 8 300 tonnes, representing a drop of 87.8% over the figure recorded for the same period last year. Coho salmon harvests came to 14 700 tonnes, down by 67.2% over the same period of 2014.

Some believe that the Chilean salmon industry is still capable of competing with European producers and overcoming the low prices and poor results suffered by some salmon farming companies during the first half of 2015.

Uk Salmon production in Scotland reached record heights in 2014, at almost 180 000 tonnes. So far in 2015, however, results have not been as impressive. The number one market, the USA, have looked to Canada and Norway to supply the fresh whole segment usually sourced from the UK. A primary reason for this has been the relatively greater gains of the US dollar versus the krone and the Canadian dollar. However, UK exports to the EU, in particular France, have grown so far this year.On the market side, it seems more Scottish production is being diverted to the UK market this year, as import supply is down due to the Faroe Islands directing salmon traditionally headed for the UK to Russia instead. Import prices for fresh Atlantics into the UK are somewhat lower this year, while canned wild salmon prices are also

down, providing an opportunity for retailers to revitalize consumer interest in the product.

Markets

The large emerging markets of Russia and Brazil, which have represented a significant proportion of growth in the global salmon market over recent years, are no longer such attractive prospects for Chilean and Norwegian exporters. It is again the US and EU markets that exporters must focus on if current production growth is to be absorbed. However, today’s demand trends in developed markets revolve around healthy lifestyle choices and a general aversion to overly processed food, which also present both challenges and opportunities depending on the capacity of the producer to target these segments. The inability to address consumer concerns over sustainability and quality standards can have serious consequences in today’s markets.

Russia Atlantic salmon has become a scarce species on the Russian market due to the country’s previous dependency on imported salmon. According to the Federal Customs Service, Russian imports of Atlantic salmon dropped to 30 000 tonnes in the first half of 2015, representing around

exportssalmon: Uk (by product and country)

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)fresh Whole

USA 12.5 16.8 16.5 17.4 22.9 14.6France 11.1 7.0 8.1 7.0 11.4 12.7China 0.2 2.0 2.8 4.1 7.0 4.5Faroe Islands 1.0 1.5 1.8 1.9 2.6 2.8Poland 1.0 2.7 3.7 1.9 1.1 0.9Germany 0.9 0.8 0.4 0.3 0.6 0.7Others 2.7 2.5 4.5 6.5 5.8 2.9

total 29.4 33.3 37.8 39.1 51.4 39.1frozen whole

Ukraine 0.0 0.0 0.5 0.7 0.8 0.7France 0.9 1.5 0.7 0.5 0.8 0.6Russian Fed. 1.6 0.7 1.7 0.4 0.5 0.0Others 0.8 1.5 1.2 1.4 1.7 2.0

total 3.3 3.7 4.1 3.0 3.8 3.3canned

Viet Nam 0.0 0.0 0.0 0.3 0.2 0.8Ireland 0.5 0.5 0.4 0.3 0.3 0.3Others 0.2 0.1 0.4 0.2 0.2 0.2

total 0.7 0.6 0.8 0.8 0.7 1.3gr. total 33.4 37.6 42.7 42.9 55.9 43.7source: her majesty’s revenue & customs


half of the import volume observed over the same period in 2014. Russian imports from Chile included 19 000 tonnes of frozen salmon, while imports from the Faroe Islands included 8 200 tonnes of fresh salmon and 1 800 tonnes of frozen salmon. At present, the Faroe Islands is the only supplying country of fresh Atlantic salmon after the inclusion of Iceland under the embargo in August 2015.

Pacific salmon species caught in the Russian Far East, however, have become more widely available in the stores of the big cities. Despite booming demand from Asian markets, some of the Russian fishing companies took a decision to support the domestic market by redirecting wild Pacific salmon to the central part of the country. About 3 000 tonnes of Pacific salmon species were distributed by trawlers from the Far East to northern Russia (Source: Murmansk). Delivering Pacific salmon by the Northern route led to a 20% decrease of distribution prices compared with the traditional distribution route.

FranceThe French market has remained stable in terms of import volumes so far in 2015, although prices are relatively lower for importers due to the appreciation of the euro versus the krone. The fall in the cost of raw material has been a positive development for French smokers, who have seen their margins squeezed in recent years by high and volatile salmon prices. Salmon has historically battled with cod as the top seafood item for French consumers, but has been hampered by negative publicity relating to farming practices.

Germany German consumers are eating more and more seafood, although their tastes are shifting away from traditional preserved products. A recent study by the Fisch-

Informationszentrum, has shown that German shoppers are increasingly turning to the fresh and chilled seafood segment offered by discount retailers and as a result, frozen sales have taken a hit. Smoked salmon, generally imported from Poland, is still popular, however, and remains some distance ahead of fresh and chilled in terms of total import value.

Japan The yen has depreciated substantially this year, meaning that Japanese importers could not take full advantage of lower prices for Chilean coho and Alaskan sockeye which is in plentiful supply. Import volumes for the latter two

importssalmon: germany (by origin)

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Norway 27.6 27.6 24.3 23.2 26.5 22.4

Poland 14.0 14.4 16.2 24.2 20.2 21.6

Denmark 4.7 4.9 4.4 5.4 11.9 10.1

China 8.5 8.8 7.4 5.4 7.7 6.2

Faroe Islands 1.1 1.1 0.9 1.5 2.2 3.8

Lithuania 1.6 2.9 2.7 2.0 3.2 3.1

Chile 1.1 1.2 0.8 3.9 4.5 2.6

UK 1.4 1.5 1.3 1.7 1.6 1.4

USA 1.0 1.5 0.6 1.1 1.3 1.3

Sweden 1.4 2.0 0.2 0.7 0.4 0.4

Others 1.7 0.9 0.9 1.6 2.6 2.2

total 64.1 66.8 59.7 70.7 82.1 75.1

source: statistics germany

importssalmon: france

Jan-mar

2010 2011 2012 2013 2014 2015

(1 000 tonnes)fresh whole 50.0 46.4 54.8 49.2 46.9 47.8

Norway 36.4 32.8 39.0 36.3 30.2 32.3

UK 8.5 8.8 9.5 8.4 11.6 11.0

frozen Pac 1.5 1.1 1.2 0.9 1.0 1.4 Faroe Islands 1.3 1.1 1.1 0.7 0.9 1.3

frozen atl 2.0 4.3 0.5 0.4 0.4 0.4

Norway 0.4 2.7 0.2 0.1 0.1 0.0

smoked 2.9 3.2 3.9 3.9 3.2 3.6 Poland 2.1 2.4 3.1 3.1 2.2 2.3

UK 0.3 0.3 0.2 0.3 0.3 0.3

Fresh fillets 5.4 5.5 8.0 9.5 8.4 8.9 Norway 4.8 5.1 7.2 8.2 7.0 6.9

Frozen fillets 9.9 10.3 8.9 11.1 11.3 8.7 Chile 2.4 2.0 2.7 4.4 3.4 2.8

China 3.7 4.5 3.0 2.4 2.8 2.1

grand total 73.5 72.1 78.2 76.1 71.9 71.9source: direction nationale des statistiques du commerce extérieur – dnsce

SALMON

importssalmon: germany (by product)

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Fresh salmon 23.2 24.3 21.4 20.5 30.9 26.4

Frozen salmon 2.7 2.3 1.6 2.6 3.5 2.3

Smoked salmon 15.3 17.7 15.9 18.4 17.7 19.0

Fresh fillets 4.1 3.5 3.6 4.6 4.5 6.8

Frozen filltes 16.7 16.1 12.9 15.8 17.8 15

Salted salmon 1.1 2.2 3.0 7.2 5.2 2.9

total 64.1 66.8 59.7 70.7 82.1 75.1source: statistics germany


SALMON

species have recovered somewhat after the low levels recorded last year, while demand for fresh whole Atlantics has remained stable. An important recent development for the Japanese salmon market is the new trans-pacific partnership, signed by Japan and many other Pacific Rim countries, as it will eliminate 95% of tariffs on seafood products including certain tariffs on frozen salmon products.

Outlook

The economic outlook for the EU has improved, while retail spending is being boosted by good growth in the USA, and it appears these two markets will continue to be the main focus of exporters for the foreseeable future. However, exchange rate dynamics will continue to be another key influencing factor in determining US supplier composition, while the significant shifts in large US retailer sourcing strategies is set to hit Chile hard. Consolidation is an important step in addressing Chile’s issues, but neither Japan nor Brazil represent very stable alternative markets to the USA at present and such activity will be limited until a clearer picture emerges. In contrast, the outlook for European producers remains positive so long as production costs can be kept under control, with relatively low supply growth expected and prices forecasted to remain high for at least the next two years.

importssalmon: Japan

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)fresh *atlantic 10.1 10.1 14.1 11.1 9.5 10.2

Norway 8.7 8.5 13.0 9.5 8.6 9.3

UK 0.2 0.3 0.3 0.3 0.2 0.2

Faroe Islands 0.6 0.8 0.6 0.5 0.2 0.4

total fresh 10.5 10.5 14.4 11.5 9.7 10.2

frozen**atlantic 0.5 1.0 1.1 0.4 0.8 0.8

Norway 0.2 0.6 0.4 0.2 0.1 0.4

Chile 0.1 0.1 0.6 0.1 0.5 0.2

Denmark 0.2 0.3 0.1 0.1 0.1 0.1

Pacific 59.8 74.9 91.1 88.9 61.1 67.1 Chile 53.6 67.5 85.6 78.8 55.3 59.9

USA 2.9 3.2 2.1 0.9 1.0 3.4

Russian Fed. 1.7 2.5 2.8 7.2 4.6 3.2

Canada 0.3 1.0 0.3 0.6 0.1 0.3

New Zealand 1.2 0.7 0.3 1.5 1.4 0.2

total frozen 60.3 75.9 92.2 89.3 61.9 67.9grand total 70.8 86.4 106.6 100.8 71.6 78.1source: Japan customs

importssalmon: Usa

Jan-Jun

2010 2011 2012 2013 2014 2015

Fresh filletsChile 10.5 17.8 29.5 42.5 48.3 48.0

Norway 13.4 5.3 2.0 2.3 5.7 7.5

Canada 3.9 3.0 1.8 3.2 2.0 3.1

Faroe Islands 4.0 6.3 5.1 5.9 7.7 5.3

Total fresh fillets 31.8 32.4 38.4 53.9 63.7 63.9Frozen fillets 28.6 30.4 28.0 34.2 38.4 36.3smoked 2.0 1.9 2.6 2.5 2.2 3.1salted 0.0 0.0 0.0 0.0 0.0 0.0all salmon 116.4 112.6 137.1 149.1 154.9 172.1source: nmfs

M A R k E T F O C U S

Research on salmon consumption in India

InfoFish reports that Pescafresh and the Norwegian Seafood Council have partnered to conduct consumer

research on the consumption of salmon in India. Impressed by the success of Pescafresh in becoming the leading retailer of fresh salmon in India, the Norwegian Seafood Council has decided to partner with the company to conduct an in depth analysis and research on the salmon consumption patterns among Indian consumers to study the potential of the Indian market. Source: InfoFish

R E C E N T N E W S

Consumers push Costco to commit against selling GM salmon if approved

Intrafish reported in September that more than 8 000 people plan to send Costco, a large US retailer, letters

pushing them to commit against selling genetically modified (GM) salmon. This development comes as part of a call to action against GM salmon organized by Friends of the Earth and its allies, pending GM salmon’s approval by the US Food and Drug Adminisration (FDA). The FDA is currently considering GM salmon’s approval. If approved, this would be the first genetically engineered animal allowed by regulators to enter the US food supply, and it would likely not be labeled. After a June rally, Costco responded that it does not plan to sell GM salmon, but “left open the possibility that it may sell GM salmon if approved by the FDA,” according to Friends of the Earth. More than 60 retailers have committed to not sell GM salmon, including Target, Whole Foods, Trader Joe’s, Safeway and Kroger. Fishermen, Costco customers and activists petitioned Costco with more than 300 000 signatures during a rally in June 2015. Source: SeafoodSource.com


Mackerel and herring stocks in the North Atlantic are in good shape, however ICES advises a precautionary approach

The Russian import ban continues to have an effect on international trade, as Russian domestic landings are replacing imports, especially those from Iceland.

SMALL PELAGICS

Mackerel The Norwegian Institute of Marine Resources recently reported that they, together with Icelandic and Faroese researchers, have registered a decline in the Northeast Atlantic mackerel stock. In 2013, the stock was estimated at a record high level of 8.8 million tonnes. This estimate was increased in 2014 to 9 million tonnes, but reduced after this year’s surveys to 7.7 million tonnes. Several reasons for this reduction have been given, including differences caused by research methods. However, it could be that there has been an actual stock reduction, in spite of good recruitment. In 2014, 1.4 million tonnes were caught, which was far above the catch advice from ICES, which initially recommended 890 000 tonnes, but increased this to 1.01 million tonnes later. For 2015, ICES reduced its catch advice to 906 000 tonnes.

The Norwegian Institute of Marine Research also reported that while mackerel stocks in the North East Atlantic are strong, they have registered a significant reduction in the average size of the fish from 2005 to 2013. Indeed, an eight year-old mackerel in 2013 weighed the same

as a four year-old fish in 2005. The researchers point out that this could be generally caused by the fact that the mackerel stock is now greater, and thus there is less food for each individual. It could also be linked to large herring stocks, which compete with mackerel for food (Source: FiskeribladetFiskaren).

TradeNorwegian frozen mackerel export volumes increased by 4.6% during the first half of 2015, to 831 348 tonnes. However, the export price declined from NOK 11.89 per kg to NOK 10.63 per kg, and this resulted in a decline in the export value by -6.4%. The largest market, Nigeria, increased its share of Norwegian frozen mackerel exports from 15.9% to 20.1%. Norway also increased shipments to Turkey (+48%) and the Republic of Korea (+107%), while exports to markets such as China, the Netherlands and Japan declined.

Norwegian mackerel exporters are now focusing on a new market, the USA. After a market research tour of the USA earlier this year, sales organization Norges Sildesalgslag (Norwegian Herring Sales Organization) have concluded that there are ethnic markets in the USA that are worth targeting with Norwegian mackerel. For example, the Korean supermarket chain H-Mart has run a campaign for Norwegian mackerel that was highly successful. This success has also led the sales organization to believe that there may be several other ethnic market niches in the USA for Norwegian herring, for example for example the Russian, Polish and German market niches.

In an agreement between Norway and the EU, Norway

exportsfrozen mackerel: norway

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Nigeria 0.3 2.9 3.9 1.1 11.1 14.8

Turkey 8.5 7.6 8.7 4.9 5.4 8.0

China 6.6 9.4 15.0 9.8 13.2 7.7


Netherlands 0.3 1.7 4.2 1.4 7.2 5.1

Japan 3.2 2.6 9.5 6.7 5.2 3.5

Ghana 0.0 0.1 0.0 2.4 0.1 2.7

Viet Nam 0.0 0.0 0.4 1.4 1.4 2.6

Egypt 0.3 0.0 0.3 0.6 0.0 2.5

Lithuania 0.2 1.3 3.6 3.5 4.1 2.1

Poland 3.6 3.8 2.7 2.0 3.8 2.1

Belarus 1.2 1.2 1.0 1.1 0.4 2.1

Romania 0.7 0.1 0.2 0.5 0.8 1.8

Kazakhstan 0.2 0.3 0.4 0.5 0.1 1.5

Ukraine 3.1 4.3 3.7 5.6 1.8 1.1

Russian Fed. 9.1 10.7 12.7 8.1 5.0 0.0

Others 2.3 5.7 8.9 7.2 7.6 10.4

total 42.6 58.1 77.1 59.1 69.9 73.6

source: statistics norway source: nsc

norwegian frozen mackerel export prices

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will be granted duty free exports of mackerel to the EU. However, the agreement is still to be ratified by the European Parliament, and the Scottish mackerel industry is protesting vehemently. The Scottish mackerel industry argues that it would be undermined at a time when traditional markets for Scottish mackerel like Russia, Turkey and the Ukraine are virtually closed to Scottish traders.

Demand for horse mackerel products from Europe is very good in Japan at the moment, though supplies are tight. Japanese imports of horse mackerel from European sources (mainly the Netherlands and Norway) are expected to decline by 20% compared with last year due to the tight supply situation. Consequently, prices for these products on the Japanese market are strong.

German imports of frozen mackerel during the first quarter of 2015 fell by a massive 30%, to just 5 200 tonnes. The main supplier, the UK, saw a drastic reduction in their shipments from 3 800 tonnes in 2014 to just 1 900 tonnes in 2015. Ireland also suffered a heavy reduction.

Nigerian imports of pelagics have been relatively unstable

over the past few years. This is due to the fact that the government changes the import quotas dramatically from time to time. For instance, in 2013, Nigerian authorities reduced the quota and pelagic imports fell to 497 000 tonnes. Then, in late 2014, the import quota was suddenly increased to 750 000 tonnes, but importers did not manage to fill the quota. The demand appears to be huge, though this is less of a factor as imports are so strongly dependent on the quotas.

PricesIcelandic mackerel prices dropped markedly after the Russian ban on imports from Iceland was announced, by as much as 20%. At the beginning of the season, Icelandic fob prices for 300-500 g mackerel were USD 1 500 per tonne. Currently, the price is around USD 1 200 per tonne. However, these low prices are not expected to last. The main reason for the sudden drop was that large quantities were ready to be shipped to Russia, and when the ban was imposed, exporters had to find new markets quickly, therefore accepting lower prices. In contrast, Faroese mackerel prices have remained stable. Undercurrent News reports that the prices in September for 300-500 g mackerel was quoted at USD 1 300 per tonne, while larger sizes (400-600 g) are running USD 1 400–1 500 per tonne. Norwegian mackerel fishermen report strong prices in September. Fishing in the Norwegian Sea was good and the average price paid to the fishermen was NOK 9.56 (USD 1.20) per kg. As is normal, prices have edged upwards towards the end of the season, and it is expected that they will remain at this level until the end of the season (Source: FiskeribladetFiskaren).

Herring

The Norwegian spring-spawning herring (NVG herring) stock is increasing after declining for several years, according to Norwegian fisheries researchers. The spawning stock in 2016 is expected to amount to almost 3.6 million tonnes, well above the critical level of 2.5 million tonnes, but still below the desired 5 million tonnes. Thus, although ICES has increased the suggested quota from 283 013 tonnes in 2015 to 316 876 tonnes in 2016, they are still advising a cautionary approach.

The Russian market for small pelagics is rather turbulent as a result of the import ban affecting several major suppliers, such as Iceland and Norway. It is obvious that a greater dependence on Russian domestic suppliers has occured, and the Russian domestic fleet will thus determine prices. However, when Russian suppliers attempted to increase prices at the time when the Iceland ban was rumoured, buyers reacted negatively. Prices to the domestic fleet have on average been about 20% lower than prices for imported Icelandic herring. Last year, the Russian domestic herring supply increased by 6.3% to almost 400 000 tonnes. However, this increase was only possible because Russian herring exports were reduced by 32%, to 171 000 tonnes (Source: Undercurrent News).

SMALL PELAGICS

importssmall pelagics: germany

Jan-mar

2010 2011 2012 2013 2014 2015

(1 000 tonnes)

frozen mackerelUK 1.1 3.6 5.7 5.4 5.1 3.1

Ireland 3.1 2.8 2.2 2.7 2.3 1.3

Netherlands 2.5 3.1 3.0 1.9 2.0 0.9

Poland 1.4 1.8 0.2 0.6 0.9 0.9

Faroe Islands 0.3 0.9 1.5 0.7 0.0 0.7

Denmark 1.7 1.9 0.8 0.6 0.4 0.4

Others 1.6 1.6 0.5 0.8 1.4 0.8

total 11.7 15.7 13.9 12.7 12.1 8.1

frozen herring filletsNorway 9.1 5.8 6.2 3.3 4.8 2.0

Denmark 0.9 0.9 2.8 2.6 2.4 1.8

Netherlands 0.6 0.7 0.6 0.6 0.7 0.6

UK 0.0 0.1 3.3 2.4 1.1 0.4

Iceland 0.3 1.2 0.6 1.0 1.1 0.1

Others 0.5 0.4 0.4 1.3 0.1 0.6

total 11.4 9.1 13.9 11.2 10.2 5.5

canned sardinesMorocco 3.0 1.9 2.0 2.2 2.0 2.0

Netherlands 0.5 0.4 0.2 0.2 0.4 0.5

Peru 0.4 0.3 0.9 0.5 0.5 0.3

Others 0.3 0.4 0.2 0.2 0.2 0.3

total 4.2 3.0 3.3 3.1 3.1 3.1


importsfresh and frozen herring: Japan

Jan-Jun

2010 2011 2012 2013 2014 2015(1 000 tonnes)

USA 15.2 16.9 11.7 11.3 18.7 12.3Russian Fed. 4.1 3.1 3.5 4.1 3.7 2.5Canada 0.0 0.0 0.1 1.2 2.7 2.5Norway 2.7 2.6 1.6 1.9 1.9 1.8Netherlands 0.6 0.2 0.4 0.3 0.3 0.1Others 0.7 0.2 0.1 0.1 0.7 0.1total 23.3 23.0 17.4 18.9 28.0 19.3

source: Japan customs

Herring supplies from other main suppliers, such as Norway and Scotland, have been diverted to Asian markets because of the Russian ban on western products.

Traders in Russia are now worried that there may be a shortage of herring during the coming months. Russian fish imports from Iceland during the first six months of 2015 amounted to 37 600 tonnes, which accounted for 14.4% of the country’s total fish imports. This is a significant reduction from 2014, when total imports from Iceland amounted to some 125 000 tonnes, of which herring constituted 66 200 tonnes.

Russian domestic landings of mackerel by mid-August 2015 amounted to 114 000 tonnes, while landings of herring at the same time stood at 171 000 tonnes and capelin landings at 41 000 tonnes. Landings of Pacific herring are expected to be about 300 000 tonnes this year. Russian authorities (the federal fisheries agency Rosrybolovstvo) are predicting that total Russian Pacific herring catches this year will total roughly 422 000 tonnes, which is 16% above last year’s landings. (Source: FiskeribladetFiskaren).

TradeNorwegian exports of frozen whole herring fell dramatically during the first half of 2015 compared with the same period in 2014. A total of 44 600 tonnes were exported, compared with 80 000 tonnes in 2014 (-45%). Practically all markets, except Egypt and Kazakhstan, imported less round frozen Norwegian herring. The most dramatic reductions were seen in the largest markets, Russia, where exports went from 27 200 tonnes to zero, Lithuania (-58.6%) and Ukraine (-48.1%).

The Netherlands also experienced a drop in herring exports during the first half of this year. Exports of fresh and frozen herring from the Netherlands declined by 31.3%, to 54 200. Exports to the main markets declined markedly: Egypt -40.8%, Nigeria -15.8% and China -59.3%.

Japanese imports of herring also declined during the first half of 2015, by as much as 31%. Japanese imports

exportsfrozen whole herring: norway

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Egypt 21.8 16.1 14.2 9.4 2.8 9.6

Netherlands 15.0 13.6 7.5 7.9 9.4 7.4

Ukraine 37.3 30.8 28.3 15.7 13.5 7.0

Lithuania 12.6 10.0 12.1 10.5 13.3 5.5

Kazakhstan 6.1 4.4 1.6 1.1 1.8 4.1

Poland 3.0 1.8 2.1 2.0 1.3 1.8

Latvia 2.8 1.9 1.8 2.2 4.1 1.6

Belarus 2.4 2.1 0.7 0.1 0.5 1.4

Nigeria 62.3 43.2 4.2 2.9 0.5 0.8

Belgium 2.1 0.9 0.7 0.5 0.7 0.8

Germany 2.2 3.2 2.5 1.8 1.6 0.6

UK 5.7 1.6 0.4 0.2 0.2 0.5

Russian Fed. 79.4 44.0 36.7 27.0 27.2 0.0

Others 8.3 9.9 6.8 5.7 3.1 3.5

total 261.0 183.5 119.6 87.0 80.0 44.6

source: statistics norway

exportsfresh and frozen herring: netherlands

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Egypt 5.8 6.9 9.2 22.1 38.5 22.8

Nigeria 21.1 10.6 25.1 19.4 17.1 14.4

China 10.1 7.1 7.0 7.1 12.3 5.0

Lithuania 0.2 0.4 1.8 0.7 0.8 0.9

Germany 2.0 1.3 3.0 3.1 0.9 0.8

UK 0.4 1.0 0.5 2.4 0.5 0.8

Others 3.4 2.8 3.1 5.6 8.8 9.5

total 43.0 30.1 49.7 60.4 78.9 54.2source: german customs

SMALL PELAGICS

source: nsc/central bureau of statistics, norway

norwegian frozen herring export prices

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SMALL PELAGICS

of fresh and frozen herring declined from 28 000 tonnes in 2014 to 19 300 tonnes in 2015. The main supplier, the USA, shipped 12 300 tonnes or 64% of total imports, but registered a 34% decline in shipments.

PricesNorwegian export prices for whole frozen herring and frozen herring fillets are now showing an upward trend. Since the end of 2011/beginning of 2012, Norwegian herring export prices were on a downward trend, but in 2015 this has turned around. There was the normal seasonal jump in prices of whole frozen herring in June, but since then prices have been considerably higher than in recent years. Prices for frozen herring fillets also made a jump upwards in 2015.

Sardines and anchovies

The El Niño is beginning to have an effect on the anchovy biomass off the coast of Chile and Peru, according to reports from the Multisector Committee of the National Study of El Niño Phenomenon (ENFEN) in Chile.

IMARPE reported in early September that the anchovy stocks have moved southward along the coast of Peru as a result of El Niño. Preuvian researchers expect that Peru’s

anchovy landings may be reduced by as much as one half in 2016.

Peruvian fishmeal producers are understandably concerned that supplies of anchovies for fishmeal production may be reduced by the end of 2015. So far, Peru’s anchovy fishery has not been affected, but it is feared that the El Niño effect will be greater towards the end of the year.

The start of the second fishing season for 2015 in the Central/North region was recently authorized in early November by the Peruvian Ministry of Production to begin on 17 November. The total limit of permissible capture (LMTCP) for the resource for indirect human consumption in the center-north zone was set at 1.11 million tonnes through 31 January 2016.

The International Council for the Exploration of the Sea (ICES) has recommended a drastic cut in the quota for sardine fishing in Iberian waters. ICES recommends the quota be cut to 1 587 tonnes, which is estimated to be about 10% of the TAC of 16 000 tonnes authorized for 2015. For Portuguese fishermen, this is almost the same as a total ban (Source: FIS.com).

In Chile, the anchovy fishery resumed on 20 July after 38 days of inactivity. The Centre for Applied Research of Marine Affairs (CIAM) stated that the fishery was resumed in a controlled way, but with 50% of its normal capacity.

TradeGerman imports of canned sardines remain level with import volumes last year. In the first half of 2015, Germany imported 3 100 tonnes, exactly the same as during the same period in 2014. The main supplier was Morocco, which accounted for almost 65% of total imports.

Imports of canned sardines into the USA were just slightly down during the first half of 2015 compared with 2014. Total imports amounted to 14 400 tonnes, with the main suppliers as Canada and Morocco, both experiencing growth in their shipments to the USA.

Outlook

In the North Atlantic, mackerel and herring stocks are in general at healthy levels, but mackerel quotas will be reduced for 2016. ICES is advising a cautionary approach with regard to quotas, but is still recommending a 12% increase in the 2016 mackerel quota.

The Russian import ban that is affecting several western countries is having a marked effect both on suppliers and on the Russian market itself. There is some concern that the Russian market will be undersupplied in the months to come, although Russian authorities are trying to divert as much as possible of the domestic catch to the home market.

importscanned sardine: Usa

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Canada 3.1 3.0 2.0 1.6 2.5 2.6

Morocco 1.9 1.7 1.7 2.2 2.0 2.3

Thailand 2.5 2.3 3.5 2.6 2.1 1.8

Poland 1.9 2.9 2.0 2.9 1.9 1.8

China 0.7 0.8 1.5 0.7 1.3 1.8

Ecuador 1.6 1.1 2.2 2.1 2.3 1.2

Philippines 0.8 1.3 1.0 0.8 1.1 1.0

Others 1.6 1.4 1.7 1.6 1.9 1.9

total 14.1 14.5 15.6 14.5 15.1 14.4

source: nmfs

1.37

0.000.250.500.751.001.251.501.752.00

Nov

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13Fe

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EUR/kg

SARDINE- Fresh whole - in Italy, origin: Europe



R E C E N T N E W S

The start of second fishing season for anchovy in 2015 in the Central/North region

has been authorized

The Peruvian Ministry of Production authorized on the 4th November 2015 the start of the second

fishing season of anchovy and white anchovy for 2015 to begin from the 9th working day from the publication of this resolution, which should be 17th November 2015 at 00:00 hours.

The norm indicates that the LMTCP for the resource anchovy for indirect human consumption, corresponding to the present fishing season in the centre-north zone is of 1.11 million tons.

The ministry indicates that this authorization governs between the extreme northern border and the 16°00 south latitude (Ático – Arequipa). The ministry stated that the fishing season will conclude once reached the total limit of permissible capture (LMTCP) or close by January 31st 2016.

Source: iffo.net

Fishmeal and fish oil prices continue to rationalize while a strong El Niño will impact the entire sector soon

The start of the second fishing season for 2015 in the Central/North region was recently authorized in early November by the Peruvian Ministry of Production to begin on 17

November. The total limit of permissible capture (LMTCP) for the resource for indirect human consumption in the center-north zone was set at 1.11 million tonnes. The ministry indicates that this authorization applies to the area between the extreme northern border and the 16°00 south latitude (Ático – Arequipa). The ministry stated that the fishing season will conclude once the LMTCP has been reached or by 31 January 2016.

FISHMEAL AND FISH OIL

Production

For the first half of 2015, fishmeal production from the top five producing countries grew by a notable 24%. This growth is largely due to the fact that 85% of the Peruvian fishing season quota (2.58 million tonnes) had been caught by early June, and this quota itself is 65% more than the same quota in 2014. Compared with the production figure 4-5 years ago, 2015’s production is still low, clearly due to the cancellation of the second anchovy fishing season in 2014 based on negative findings by IMARPE on the anchovy biomass. European production of fishmeal fills this gap. Indeed, data from Statistics Iceland shows a 44% increase in pelagic landings when compared with the same period of the previous year, which includes capelin, herring and mackerel (Source: Undercurrent News).

For fish oil, production dropped in most major producing countries for the first half of the year, except in Iceland. Production from Peru and Chile picked up slowly in the

first six months, however the total half-year volume is still 34% less compared with the same period last year. In the USA, based on the improved menhaden stock situation, the menhaden quota was raised by 10% from May onwards, which in the long-term will help with the fish oil supply.

Exports

With effects from the 2014 cancellation of the second fishing season continuing in the first half of 2015, fishmeal exports from Peru dropped to 271 900 tonnes, which was almost half of the level for the same period in 2014. Worldwide the market was slow, as all of the major export destinations reduced their import volumes significantly. Neither Germany nor the UK imported any fishmeal from Peru during the first six months of the year. The decline of the Peruvian fishmeal supply will also continue to result in increased efforts to either diversify sourcing origins or seek new feed alternatives.

Productionfishmeal: 5 major producers

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Peru/Chile 1 102 1 334 851 672 667 800

Denmark/Norway 350 166 74 153 186 233

Iceland 156 81 130 93 107 172

total 1 608 1 581 1 054 918 1 107 1 372source: iffo * these figures refer only to IFFO member countries

Productionfish oil: 5 major producers

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Peru/Chile 179 273 206 147 197 130

Denmark/Norway 72 53 29 42 47 40

Iceland 22 35 44 27 16 36

total 274 361 278 216 289 237source: iffo * these figures refer only to IFFO member countries



importsfishmeal*: Usa

Jan-Jun2010 2011 2012 2013 2014 2015

(1 000 tonnes)Chile 7.8 5.7 7.6 7.0 15.7 14.6Mexico 4.4 5.2 6.9 8.3 7.2 3.7Canada 2.9 2.7 2.2 1.9 2.0 1.3Others 3.5 1.7 2.9 3.5 2.9 5.2total 18.6 15.3 19.6 20.7 27.8 24.8source: nmfs * excluding solubles

exportsfishmeal: chile

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)China 94.3 63.1 70.2 75.8 49.9 27.9


Japan 26.0 15.0 13.1 15.6 11.6 6.8

Germany 3.7 9.0 10.3 0.5 3.0 3.1

Spain 14.2 9.3 8.8 6.5 10.7 2.9

Italy 8.6 7.0 7.1 5.5 7.2 1.0

Others 40.1 23.2 42.8 31.4 43.6 37.1

total 196.6 133.7 161.0 140.8 138.5 88.4source: Produce

exportsfish oil: Usa

Jan-mar2010 2011 2012 2013 2014 2015

(1 000 tonnes)Menhaden 9.8 3.4 0.4 6.8 7.8 0.9Other 4.0 5.2 5.2 3.7 3.3 6.0total 13.8 8.6 5.6 10.5 11.1 6.9source: nmfs

exportsfish oil: Peru

Jan-Jun2010 2011 2012 2013 2014 2015

(1 000 tonnes)Denmark 7.6 21.2 45.5 10.3 22.8 19.7Canada 10.4 5.1 16.3 1.9 0.9 3.8Norway 7.8 3.0 13.6 1.2 3.8 2.9China 8.7 8.6 * 1.3 3.9 2.0Belgium 21.9 14.5 25.4 6.4 23.3 1.5Chile 19.7 26.2 33.4 3.0 22.0 1.1Australia 5.2 1.0 4.2 1.5 0.4 0.0Others 11.9 15.7 7.3 4.2 7.7 1.9 total 93.3 95.4 145.6 29.9 84.9 32.9source: Produce * included under “others”

exportsfishmeal: Peru

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)China 305.1 453.1 426.1 165.7 316.8 235.6

Japan 51.8 34.3 58.5 20.0 37.6 6.7

Taiwan PC 13.7 17.7 31.4 4.2 16.2 5.7

Viet Nam na 25.2 39.9 4.2 30.0 1.5

Germany 51.9 47.5 90.5 12.5 64.5 0.0

UK na 11.6 11.6 1.3 6.0 0.0

Others 109.1 70.8 7.9 33.1 63.4 22.4

total 531.6 660.2 665.9 241.0 534.4 271.9source: Produce

exportsfish oil: chile

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Japan 3.5 3.3 5.1 3.9 1.4 5.2Denmark 4.0 0.0 0.0 0.0 13.7 4.1China 8.8 2.8 3.5 5.3 0.6 1.1Belgium na 0.0 5.4 1.4 1.5 0.0Norway 2.4 0.0 1.4 2.3 0.0 0.0Others 7.8 18.7 7.1 25.9 25.2 27.8


In the case of fish oil, both Peru and Chile reported much lower levels of exports during the first half of the year. In addition to the reasons above, the increasing domestic demand for fish oil in Chile for their salmon farming sector contributed to the decline trend. Growing demand for fish oil for human consumption will remain strong worldwide.

Markets

Although on the decline, fishmeal prices were still high in the first half of 2015 and due to this as well as low demand from China, the markets had been relatively quiet for the first half of 2015. As prices became further rationalized, countries began actively building up stocks.

The UK largely imported fishmeal from Ireland and Norway during the first half of 2015, and therefore import volumes were not reduced as significantly as in other markets. For the first six months of the year, Germany increased import volumes from other sources, but with no imports from Peru, it imported only slightly over half of its import amount for the same time period in 2014.

Prices

After fishmeal prices reached a record high in the second half of 2014, prices began decreasing in 2015 towards the


and ample catch, the expectation for even lower prices has kept the market quiet for now. From the industry side, the expectation is that fishmeal prices will normalize with the first Peruvian fishing quota for 2015 set at 2.58 million tonnes, or 600 000 tonnes of fishmeal. Better catches of pelagics from Iceland also helped to ease the pressure on international prices.

Fish oil prices had also witnessed a similar trend since late 2014, with prices lowering. However, beginning in June 2015 the prices have stabilized as the supply and demand gap is increasing as the result of a highly possible El Niño from the end of 2015 to early 2016.

In line with the general trend of fishmeal prices, soymeal prices have remained low from the end of last year. For the past year, the ratio between the prices of fishmeal and soymeal has stayed around 4:1, which was quite attractive for feed producers looking for alternative raw materials.

Outlook

It has become increasingly obvious that for the rest of 2015, the sector will repeat a similar trend to what happened last year, if not be impacted more this time around. To offset the tight supply situation, the first fishing season of 2015 exceeded the first season of 2014 by 65%. Despite these increased catch volumes, the northern-central anchovy stock biomass was 3.38 million tonnes, 48% lower than the expected biomass of 6.4 million, and 41% of it were juveniles, according to the latest study performed by IMARPE.

Last year, the Kelvin waves of warm water were turned away by strong winds blowing from east to west last year, but this may not occur again, making for a super El Niño. With the dominating importance of Peruvian anchovy fishing in global fishmeal production, there is much uncertainty about the amount of anchovy to actually be caught out of the quota that was recently set for the second fishing season (at 1.11 million tonnes). With these developments, it cannot be expected that prices of fishmeal and fish oil will stay at their current low level for long.

Despite efforts to explore other alternatives, such as trimmings from processing factories, vegetable oil and meal, insects, single-cell protein, recycled waste and algae, prices for fishmeal and fish oil will remain firm in the long-term. Whether prices will hike up to last year’s peak in the coming months will largely be influenced by how alternatives can be sourced and how the super El Niño will impact the aquaculture sector. In the long term, prices of fishmeal and fish oil will generally depend on how cost efficient alternatives can be produced on a large-scale with sustainable and regular raw material supplies.normal range of USD 1 600-USD 1 650, but the markets

were not active in the first six months. Prices of fishmeal continue to rationalize from their peak level recorded last year. With the opening of the first anchovy fishing season


importsfishmeal: germany

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Morocco 21.1 19.2 13.4 18.1 4.6 21.1Iceland 0.0 1.5 1.3 20.1 1.5 9.7Denmark 6.3 10.2 2.7 14.0 10.9 5.2Chile 0.0 9.1 7.7 0.5 3.0 3.1France 1.5 1.6 2.5 8.6 1.8 2.3Panama 0.2 0.0 5.5 0.9 1.3 1.4South Africa 0.0 0.0 4.1 0.6 1.6 1.1Peru 86.1 18.5 53.0 20.0 61.7 0.0Others 9.4 1.4 6.8 13.2 13.9 7.6Total 124.6 61.5 97.0 96.0 100.3 51.5total 58.7 43.8 54.5 53.0 31.4 22.1

source: germany customs

importsfishmeal: Uk

Jan-Jun2010 2011 2012 2013 2014 2015

(1 000 tonnes)Ireland 9.6 1.2 3.8 6.8 5.8 6.1Norway 2.4 3.1 0.1 1.1 3.4 5.7Germany 6.8 6.1 4.3 3.9 5.5 1.9Iceland 1.3 1.4 6.0 3.3 1.1 1.9Peru 18.3 10.9 12.7 1.4 7.4 0.5Denmark 15.9 9.9 1.1 4.4 2.6 0.5Others 3.8 4.0 5.5 4.6 6.7 7.8total 58.1 36.7 33.5 25.5 32.5 24.4

source: her majesty’s revenue & customs

PricesFishmeal and fish oil prices Europe

source: oil World

0

500

1000

1500

2000

2500

3000

Dec-

11

Feb-

12

Apr-

12

Jun-

12

Aug-

12

Oct

-12

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Feb-

13

Apr-

13

Jun-

13

Aug-

13

Oct

-13

Dec-

13

Feb-

14

Apr-

14

Jun-

14

Aug-

14

Oct

-14

Dec-

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Feb-

15

Apr-

15

Jun-

15

Aug-

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Oct

-15

Dec-

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Fish oil Fishmeal


BIVALVES

Drop in mussel and scallop trade, sales of oysters remain strong

In the first six months of 2015, international trade of both mussels and scallops experienced declines, though to differing degrees depending on the country. In most

cases, this negative trade trend reflects a general decline in production, due either to bad weather or to adverse environmental changes (ocean acidification). By contrast, international sales of oysters in the first half of 2015 have been strong.

Mussels

WorldGlobal trade of mussels has slightly declined in the first half of 2015 compared with the same period in 2014. This drop is the result of declining landings observed in several leading mussel producing countries. In particular, exports from New Zealand, Denmark and Spain. Meanwhile, in other countries, such as Chile and the Netherlands, production and exports have grown, partially offsetting this drop.

EuropeIn the first half of 2015, imports entering the EU have declined slightly by 2.4% compared with the same period in 2014. However, this trend varies significantly by country. Though volumes by the three top importers, France, Italy and Spain, show an increase, imports by smaller importers have declined notably; by -11% in Germany, -40% in the Netherlands, -9% in Belgium and -19% in the UK.

imports/exportsmussel: World

Jan-Jun

2014 2015

(1 000 tonnes)

imPortsFrance 29.1 30.7

Italy 20.6 21.1

USA 17.8 16.5

Spain 10.9 11.0

Germany 8.2 7.2

Netherlands 10.8 6.5

Belgium 6.5 5.9

UK 3.1 2.5Republic of Korea 2.4 2.0

Thailand 2.8 1.8

total* 135.3* 121.5*

eXPortsChile 37.7 41.7

Spain 21.7 19.4

Netherlands 15.2 18.3

New Zealand 19.4 16.0

Denmark 14.9 11.5

Italy 8.3 6.9

Greece 5.4 6.5

Canada 7.6 5.8

Ireland 4.9 5.5

China 4.1 3.8

Germany 149.9* 141.1*

total** 68.6 65.5source: gtis * estimates - **selected countries

Oysters 61%

Source: FAO

Mussels 23%

Scallops 12%

Clams 4%

Bivalves production by species (2013)

importsmussels: eU-28

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)France* 37.1 32.7 30.7 27.9 29.1 30.7

Italy* 17.3 18.5 16.6 19.6 20.6 21.1

Spain* 10.8 13.8 9.6 13.6 10.9 11.0

Germany* 5.7 9.6 10.9 7.0 8.1 7.2

Netherlands 10.4 10.0 12.5 11.1 10.8 6.5

Belgium 6.2 7.0 6.3 6.5 6.5 5.9

UK* 3.3 3.7 3.3 2.8 3.1 2.5

Portugal 1.6 1.9 1.2 1.7 1.5 2.1

Others 4.9 4.8 4.5 4.2 3.5 4.8

total 97.3 102.1 95.5 94.3 94.1 91.8source: eUrostat and customs*


Oysters

In the fast-growing oyster trade, the most remarkable trend observed in the first half of 2015 was the sharp rise in Chinese imports, with some 10 300 tonnes more imported than compared with the same period in 2014. Purchases of

FranceIn France, the four main suppliers of mussels, Chile, the Netherlands, Spain and Italy, maintained their market dominance, taking roughly a 78% share of the French market during the first half of both 2014 and 2015.

When comparing the first half of the year over a longer time period (2010 to 2015), Irish exports to France have declined dramatically, from 6 800 tonnes in 2010 to 1 800 tonnes in the first six months of 2015. This reflects the drop in Irish production of mussels, from over 12 000 tonnes in 2011 to less than 3 000 tonnes in 2014 according to BIM (Source: 2014 BIM Annual Aquaculture Survey).

ItalyItalian imports of mussels have slightly increased in the first half of 2015 compared with the same period in 2014 (+2.4%), with Spain maintaining its position as lead supplier, followed by Chile and Greece. Greece has quickly grown its sale volumes to Italy over the past five years, from 1 600 tonnes in the first half of 2010 to 4 800 tonnes in the first half of 2015. In terms of their own production, Italy is a medium-size producer of Mytilus galloprovincialis and has begun growing sales in the Spanish market, from zero in 2013 to 600 tonnes during the first half of 2015.

DenmarkDenmark is another medium-sized producer of mussels and is turning towards organic certified production. According to an article published in World Aquaculture in September 2015, an expected 10% of the total production is currently generated by nine production units for a total volume of some 3 500 tonnes per year. Danish production of line mussels is concentrated in the Limfjorden (North West Jutland).

BIVALVES

importsmussels: italy

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Spain 8.4 7.0 9.7 10.1 9.9 8.9

Chile 4.4 6.3 2.8 4.4 4.8 5.1

Greece 1.6 2.6 3.3 3.8 4.4 4.8

Ireland 0.8 0.5 0.2 0.6 0.3 0.5

Germany 0.3 0.3 0.2 0.2 0.3 0.4

New Zealand 0.2 0.4 0.1 0.2 0.3 0.1

Turkey 1.2 1.0 0.0 0.0 0.0 0.0

Others 0.3 0.2 0.2 0.5 0.6 1.3

total 17.3 18.5 16.6 19.8 20.6 21.1

source: eurostat

imports/exportsoyster: World

Jan-Jun

2014 2015

(1 000 tonnes)

imPorts

China 0.7 11.0

Japan 5.0 8.2

USA 4.5 5.4

Hong Kong SAR 3.6 3.0

Italy 2.2 2.5

France 2.2 2.3

Spain 1.2 1.7

Canada 1.4 1.4

Taiwan PC 0.7 0.8

Belgium 0.8 0.7

Singapore 0.7 0.7

total** 26.6* 31.3*

eXPortsFrance 3.6 4.3

China 3.9 4.0

Ireland 2.7 2.7

USA 2.1 1.8

Canada 1.8 1.7

Republic of Korea 6.5 1.0

Mexico 0.7 1.0

Italy 0.5 0.6

Japan 0.8 0.6

Netherlands 0.5 0.6

total** 34.7* 31.9*source: gtis * estimates - **selected countries



BIVALVES

oysters on the international market by Japan and the USA have also climbed by 60% and 20% respectively.

FranceIn October and November last year, French imports of oysters have partially compensated for the drop in domestic production due to the high mortality caused by a virus (see GLOBEFISH Highlights Issue No1, 2014). UK producers particularly found an important market in France. In October 2014, UK exports of live oysters were as high as 300 tonnes and in November 500 tonnes, while the average quantity for this time of the year is only about 50 tonnes.

Worldwide, the retail price for oysters has reached a historic high. Oyster growers worry about the expected consumer reaction to these high prices, especially in the coming period of traditionally high consumption.

Scallops

Sales from the largest scallop producing countries have all declined in the first half of 2015, yet to varying degrees. The UK reported a -10% decline, the USA and China -15% and Peru a significant -30% drop.

EuropeEU imports of scallops have dropped by 9.3% in the first half of 2015 compared with the same period in 2014. France remains the largest outlet, taking a 38% market share in the first six months of 2015, a slight decline compared with the 39.5% market share in the same period in 2014.

importsscallops: eU

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)France* 12.6 12.4 9.6 8.6 8.9 7.8

Italy* 3.2 3.6 3.2 3.2 2.8 3.2

Netherlands 2.0 1.2 2.1 1.6 2.8 2.0

Spain* 4.3 4.0 2.6 3.4 2.1 1.9

Belgium 2.2 2.6 2.1 1.9 2.3 1.7

Denmark 0.5 1.2 1.4 1.4 1.1 1.0

Others 3.5 3.1 2.8 2.6 2.5 2.8

total 28.2 28.1 23.8 22.7 22.5 20.4source : eUrostat and customs

imports/exportsscallop: World

Jan-jun

2014 2015

(1 000 tonnes)

imPortsChina 22.5 45.9

USA 16.3 12.1

France 9.0 8.0



Italy 2.8 3.2

Canada 3.0 2.4

Malaysia 0.7 2.2

Netherlands 2.8 2.1

Spain 2.1 2.0

Taiwan PC 2.0 2.0

Singapore 1.2 1.8

Belgium 2.3 1.7

total** 84.3* 101.8*eXPorts

China 20.0 16.9

UK 5.7 5.1

USA 5.9 4.9

Peru 6.3 4.2

Canada 4.3 4.1

Argentina 2.9 2.4

Belgium 2.4 1.9

France 1.9 1.7

Netherlands 2.3 1.6


Japan 1.0 1.1

Thailand 0.4 1.1

total** 58.2* 52.5*source: gtis * estimates - **selected countries

importsscallops: france

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Chile 6.1 6.2 5.7 4.1 5.5 6.8

Netherlands 7.2 7.6 6.9 6.3 5.2 6.2

Spain 7.1 6.4 7.1 4.9 6.9 6.0

Italy 4.8 4.2 3.3 4.9 4.8 5.5

Denmark 1.2 0.4 0.6 1.2 2.9 2.1

Ireland 6.8 4.6 3.0 1.6 1.0 1.8

UK 1.9 1.6 2.0 2.8 1.2 1.3

Greece 0.8 0.8 1.2 1.3 0.5 0.6

Others 1.2 0.9 0.9 0.8 1.1 0.4

total 37.1 32.7 30.7 27.9 29.1 30.7source: direction nationale des statistiques du commerce extérieur – dnsce


UkNew conservation measures to protect the Scottish scallop stocks are due to take effect in the spring of 2016. The minimum landing size will be increased from 100 mm to 105 mm for most of the Scottish coast with the aim to protect the breeding stock. In addition, vessels will be restricted to eight dredges per side in inshore waters. In 2013, the value of landed king scallop reached GBP 32 million. The industry contributes additional amounts to the local GDP by production of value-added products as well as the local processing jobs the sector provides.

ChinaChinese imports of scallops continue to grow. The country’s imports have dramatically climbed by 104%, an increase of 23 400 tonnes when comparing the first half of 2015 with the same period in 2014. Looking at these same periods, Chinese exports dropped by 15.5%.

Clams, cockles, ark shells

Based on preliminary figures, global imports of clams, cockles and ark shells have grown by +7% in the first half of 2015 compared with the same period the year before. Japan is the leading importer, purchasing 9 000 tonnes during the first six months of the year and is responsible for the worldwide increase in trade. In the same period,

exports from China, the world’s top exporter, have climbed by 7.4%.

Outlook

Bivalve production can be praised as having one of the lowest carbon footprints in the food industry. A media company (MusselPower) will be launching a marketing project focused on this asset in the near future. The project will promote how mussels can be a sustainable meat alternative, pollution absorber and carbon holder in the fight against climate change.

In the months to come it will be interesting to follow the development of Chilean and Greek mussel production and exports, the impact of high oyster prices on consumers in France, and Chinese imports of shellfish.

BIVALVES

imports/exportsclam/cockle/ark shell

Jan-Jun

2014 2015

(1 000 tonnes)

imPortsJapan 33.1 42.2


Spain 11.9 13.5

USA 10.6 10.8

Italy 4.8 5.5

Portugal 5.2 5.4

China 4.1 2.4

Thailand 3.8 2.4

Singapore 2.5 2.3

Malaysia 2.6 1.8

Canada 1.6 1.7


total** 121.6* 130.1*eXPorts

China 78.7 84.5

USA 4.4 5.0


Italy 3.6 3.8

Portugal 3.6 3.7

Netherlands 3.4 3.5

Canada 3.8 3.2

Chile 1.6 2.1

UK 1.3 1.6

Turkey 1.3 1.3

Thailand 4.3 0.8

total* 117.0* 121.2*source: gtis * estimates - **selected countries

R E C E N T N E W S

Canada to increase TAC for Artic surf clam

Fisheries and Oceans Canada has announced that the total allowable catch (TAC) for offshore Arctic surf clam (Mactromeris polynyma) will increase from 38 756 tonnes to 52 655 tonnes on the Banquereau Bank and Grand Bank. This new TAC will begin with the 2016 fishery and will not only allow new entrants into the fishery, but also for additional access to the quota for existing holders. To safeguard the sustainability of the fishery, department officials will work with industry to establish a dedicated scientific research program, as well as a rotational spatial management system for the fishery starting with the 2016 season. The surf clam fishery is estimated to be worth over CAD 60 million.

EU criticized for imposing minimum clam size

The EU Commission reported in July 2015 that they have been criticized for imposing a minimum size for fishing clams in the Mediterranean. It justifies the new regulation: “It does not aim to ban but to preserve this delicious traditional dish. Legislation on minimum size seeks to preserve this vulnerable species and to ensure the maintenance of the stock in the future.” Source: European Commission


major markets for lobster showed an increase in imports in 2015.

The main supplier to the USA is neighbouring Canada, which accounts for over 90% of US lobster imports.

The EU, on the other hand, imported less during the first half of this year. Total EU imports dropped from 26 000 tonnes to 22 300 tonnes (-14.2%). The main suppliers were the USA and Canada, but the European market is characterized by being supplied by a wide variety of countries.

Prices

The demand for American lobster (Homarus americanus) is growing, especially in China, and this is contributing to pushing prices upwards. In addition, somewhat abnormal ocean conditions have made supplies more difficult. The reason is that warm waters have arrived late off New England, thus keeping the lobster population away from the coast and delaying the smelting, which usually takes place in the summer.

The growing demand in China is translated into increasing Chinese imports of lobster. According to the US Department of Agriculture, US exports of lobster to China in 2014 rose to 8 560 tonnes, and so far this year, exports are up by 15%.

LOBSTER

Growing demand for lobster

Demand for lobster is growing in China, and US exports are being diverted to this well-paying market. At the same time, supplies have been tight due to a difficult

winter and a poor start to the season in the USA. Consequently, prices are on the rise.

Supplies

In the USA, Maine’s lobster season is booming this year, thanks to a number of factors such as careful management of the resource, clear regulations, and careful actions by the lobster fishermen. According to the Maine Department of Marine Resources, the harvest last year was 56 400 tonnes. The average price was USD 3.70 per lb (Source: FIS.com).

While the Maine lobster resource is strong, the resource in the rest of New England is declining, according to the Chicago Tribune. In 2013, the number of adult lobsters south of Cape Cod had fallen to 10 million, which is just one fifth of the total in the late 1990s (Source: IntraFish).

In Norway, lobster fishermen are complaining about poor catches this year. The season in Norway opened in September, and commercial fishermen are landing less than at the beginning of last year’s season. One reason given is that there seem to be many more recreational fishers active in the lobster fishery this year. The lobster fishery is open to all in Norway, and many people catch lobster for their own consumption, thus putting extra pressure on the lobster population.

International trade

International trade in lobsters is growing. Total world imports during the first half of 2015 showed a 15% increase in volume, to 71 400 tonnes. The largest importer was the USA, which accounted for 25 800 tonnes or 36% of all imports. Other major importers include China (7 700 tonnes), Italy (6 700 tonnes) and France (5 300 tonnes). All

importslobster: World

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)USA 21.8 21.6 22.0 22.9 25.8

China 1.9 4.3 5.4 4.6 5.6 7.7

Italy 2.4 2.5 2.4 6.1 5.9 6.7

France 2.6 2.9 2.7 5.5 5.1 5.3

Spain 2.6 3.3 3.0 5.6 4.4 4.8

Hong Kong SAR 6.7 6.8 4.9 6.6 4.2 3.5

UK 0.7 1.1 1.0 2.4 2.2 2.8

Belgium 1.5 1.3 1.4 1.5 1.5 1.7

Japan 2.0 1.9 1.8 1.8 1.9 1.6


Taiwan PC 1.2 1.1 0.9 0.8 0.8 1.2

totals* 45.2 52.1 30.6 65.4 62.0 71.4source: gtis * selected countries (estimate)

American lobster

47%

Spiny lobsters (all)

26%

Norway lobster

17%

Others10%

Lobster production by species (2013)


importslobster (all product forms): Usa

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)

Canada 18.3 17.9 18.3 19.7 22.8 25.3

Bahamas 0.7 0.6 0.7 0.7 0.6 0.6

Nicaragua 0.4 0.6 0.6 0.7 0.6 0.5

Honduras 0.4 0.6 0.4 0.5 0.4 0.4

Others 2.0 1.9 1.2 1.3 1.4 1.2

total 21.8 21.6 21.2 22.9 25.8 28.0source: U.s. department of commerce, bureau of census

Lobster prices in the USA are stable at a relatively high level. Demand has been good, while supplies are limited, and there is a high demand in China, which is diverting volume from the American market. Maine lobster prices were about USD 0.50-1.00 higher this year than a year ago. According to traders, the price is not expected to come down any time soon. It is more likely that prices will rise (Source: Undercurrent News).

Outlook

Supplies will be tight, while at the same time demand is growing, especially in China. Consequently, one must expect prices to rise.

LOBSTER

monthly european lobster prices, live, origin: irelandJ f m a m J J a s o n d

(400-600 and 600-800 gr/pc in eUr/kg)2007 35.00 32.00 31.00 23.00 NA NA 15.00 NA NA 21.00 23.00 33.00

2008 30.00 NA 28.00 NA 19.00 NA NA 14.00 15.00 16.00 17.50 22.00

2009 24.00 21.00 21.00 22.00 14.50 14.50 12.50 12.50 12.50 14.50 15.00 22.00

2010 24.00 20.50 21.00 23.00 23.00 13.50 14.00 14.00 14.00 15.50 18.00 24.00

2011 28.00 24.50 24.50 22.50 15.50 15.50 15.20 14.50 14.00 16.50 18.00 26.00

2012 26.00 23.00 19.00 19.00 17.00 16.50 14.00 14.20 15.00 15.50 17.50 24.00

2013 28.00 25.00 24.50 26.00 24.50 20.00 14.00 14.00 16.50 16.50 16.50 21.00

2014 24.00 24.50 24.50 22.50 16.50 14.50 14.00 14.00 15.00 15.50 17.50 29.50

2015 32.00 27.00 NA 25.00 20.00

importslobster: eU

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)USA 3.8 4.1 3.3 3.2 3.3 2.7

Canada 3.0 2.3 2.2 2.4 2.6 2.4

Mauritania 0.1 0.2 0.1 0.2 0.3 0.5

Nicaragua 0.1 0.2 0.1 0.3 0.3 0.4

Viet Nam 0.0 0.0 0.3 0.2 0.2 0.3

Bahamas 0.1 0.4 0.4 0.3 0.4 0.3

China 0.0 0.0 0.4 0.4 0.3 0.3

Others 5.8 4.9 18.3 14.8 18.6 15.4

total 12.9 12.1 25.1 21.8 26.0 22.3source: gtis

monthly new York wholesale prices for up to 1-1/2 lb live american lobster, in Usd/lb

source: itn

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

gen-

05

lug-

05

gen-

06

lug-

06

gen-

07

lug-

07

gen-

08

lug-

08

gen-

09

lug-

09

gen-

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lug-

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gen-

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lug-

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gen-

12

lug-

12

gen-

13

lug-

13

gen-

14

lug-

14

gen-

15

lug-

15

monthly ex-warehouse prices of frozen lobster tails in Usa (8-10 oz/pc), brazil, in Usd/lb

source: itn

0.00

5.00

10.00

15.00

20.00

25.00

gen-

05

lug-

05

gen-

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lug-

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gen-

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lug-

07

gen-

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lug-

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gen-

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gen-

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lug-

10

gen-

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lug-

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gen-

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12

gen-

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gen-

14

lug-

14

gen-

15

lug-

15


CRAB

Alaska’s snow crab quota cut by 40%

Recent surveys indicate a decline in the Alaska snow crab resource, prompting the Alaska Department of Fish and Game to reduce the quota for 2015-2016. In northern

Norway, the king crab fishery was off to a very good start in September. Prices are strong and US prices are expected to rise.

Supplies

In Alaska, recent surveys done by the Crab Plan Team revealed declining snow crab stock in Alaska. The results of the survey showed a decline in the mature male biomass for red king crab and opilio crab, but a more mixed picture for bairdi and tanner crab. This survey is one of the inputs that is used to set the quotas for the next season.

The Alaska Department of Fish and Game announced in October that the snow crab quota in the Bering Sea will be reduced by 40% for the 2015-2016 season. The quota is set at 40.6 million lbs (18.4 tonnes). This represents a reduction of approximately 12 250 tonnes compared with the previous season. The Bering snow crab fishery opened on 15 October and will run through 15 May 2016 (Source: Seafood.com).

The start of the king crab season in the north of Norway caused a lot of optimism among crab fishermen. Prices

to the fishermen were very good at NOK 110-120 per kg (USD 13.00-14.60), and as a result, a number of vessels participated in this fishery this year. Another reason for the strong participation is that the authorities have introduced an “activity qualification” related to this fishery. Fishermen reported that not only was there an abundance of crab, but the size and quality of the crab were excellent this year. It is expected that landings will amount to between 1 700 and 2 000 tonnes for 2015 (Source: FiskeribladetFiskaren).

Markets

Alaska crab fishermen and traders are complaining that illegally caught Russian crab is disrupting market conditions in the USA. The Alaska Bering Sea crab fishery in 2013 landed roughly more than 7 000 tonnes, valued at over USD 82.9 million. Alaskan crabbers are now claiming

Blue swimming crab7% Tanner crabs nei

4%Edible crab2%Dungeness crab

2%

King crab1%

Others84%

Crab production by species (2013)


importscrab: World

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)USA 46.9 36.1 36.3 37.5 46.6 41.6

China 18.6 20.0 23.1 29.7 27.8 27.4

Japan 24.1 18.7 20.3 19.2 21.7 15.0


Hong Kong SAR 3.8 4.4 3.2 4.1 4.2 7.3

Spain 5.3 5.2 5.2 4.7 3.6 4.2

France 4.8 4.6 4.4 4.0 3.9 4.3

Taiwan PC 4.4 5.1 4.5 4.3 4.4 4.5

Canada 3.3 4.2 5.7 5.4 5.5 4.4

Malaysia 2.2 2.4 1.9 3.7 2.7 2.9

Singapore 3.0 3.1 3.1 3.0 2.9 2.9

Indonesia 0.9 0.7 1.6 2.3 2.2 1.9

Thailand 2.1 1.5 1.6 1.3 1.5 1.9

El Salvador 0.0 0.0 0.0 0.0 0.0 3.1

totals* 146.5 132.0 131.1 142.1 150.5 147.5source: gtis * selected countries (estimates)

that the illegal Russian crab has made US crabbers lose USD 600 million worth of business since the year 2000.

Illegal Russian crabs are not the only problem in the region, however. According to Russian sources, China has emerged as the new center of IUU crab fishing. The Russian authorities are now initiating talks with China regarding this problem. Illegal supplies of Russian crab to China have increased significantly in recent years.

International trade

Norwegian crab exporters are now seeing a growing market for live king crab in Japan. Facilities for live storage and distribution within Norway have been set up, but traders are now looking into the possibility of long-distance shipments. During autumn, the first trial

shipments of live crab went to Japan. However, they are still facing some logistical challenges in order to step up exports. Other interesting markets for this product include the Republic of Korea and China. Norway exported 700 tonnes of live king crab and 460 tonnes of frozen king crab in 2014, at a total fob value of NOK 205 million (Source: Norwegian Seafood Council).

Viet Nam’s crab exports are growing. In 2014, exports grew by 6%, and amounted to USD 60.7 million. The main markets for Vietnamese crab were the USA, which accounted for 47% of shipments, followed by Japan, the EU, and China. While Vietnamese shipments to the USA, Japan and China went up in 2014, shipments to the EU declined by 12%.

Prices

Blue crab prices in the USA have been dropping lately, but it is now expected that they will level off and perhaps start rising modestly. The main reason for this turn-around is the lack of supplies in September. Landings in Southeast Asia have been hampered by a strong El Niño that is having a negative impact on blue crab fishing in the waters of Thailand, the Philippines and Indonesia.

US king crab prices have been on an upward trend since early fall as supplies have been tighter, especially from Russia as they are diverting more product to the Chinese market. NMFS reports a 12.5% decline in US crab imports during the first seven months of 2015, from 8 015 tonnes in 2014 to 7 072 tonnes in the same period in 2015.

Outlook

The quota for Alaskan snow crab has been dramatically reduced for the coming season, and this will have an impact on price developments. King crab prices are continuing to rise. The near future will be marked by tight supplies and higher prices.

importscrab: Usa

Jan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)

Canada 25.9 27.1 28.1 36.4 25.5 30.1

Russian Fed. 7.8 6.2 6.1 6.1 6.8 6.5

Indonesia 4.5 4.0 5.6 5.6 5.0 6.4

China 3.6 4.6 5.4 5.4 4.5 6.1

Others 10.4 9.8 11.1 9.4 14.5 11.7

total 52.2 51.7 56.3 62.9 56.3 60.8source: nmfs imports

crab: JapanJan-Jun

2010 2011 2012 2013 2014 2015

(1 000 tonnes)Russian Fed. 12.5 13.6 12.7 17.2 10.4 5.4

USA 1.6 3.0 2.9 1.6 1.8 3.1

Canada 1.9 1.7 1.7 0.9 0.5 0.6

Others 1.8 1.3 1.6 1.3 1.9 1.6

total 17.8 19.6 18.9 21.0 14.6 10.7source: Japan ministry of finance

CRAB


SPECIAL FEATURE

Labour conditions in the fisheries and fish processing sector

This Special Feature article is a first in a series focused on social issues in the fisheries and aquaculture sector

The international fishing industry provides food security and employment worldwide

It is a fact that the seafood sector contributes to global food security, human welfare and economic prosperity and that this is especially relevant for many coastal communities in developing countries. However, certain segments of the industry continue to present extremely challenging work conditions. The fishing industry is also labour-intensive, in particular in harvesting and processing. Its profitability is therefore also linked to the level of labour costs, in addition to other input factors such as capital, energy, etc.. It is also a fact that production and post-harvest activities are often carried out in developing countries with low labour costs but where international labour standards are not always fully implemented.

The fisheries sector has amongst the highest occupational fatality rates in the world…

Approximately 30 million fishers are working aboard 4 million fishing vessels operating in capture fisheries, 1.3 million decked and 2.7 million undecked vessels. According to estimates by The International Labour Organization (ILO) and United Nations Office on Drugs and Crime (UNODC), over 24 000 fishers lose their lives every year. States, fishing companies and fishers are all responsible for safety at sea. Safety at sea is dependent on vessel designs, equipment, training, physical demand and on workers’ rights on board fishing vessels.

… and it is too often associated with forced labour and human trafficking

Migrant workers in particular can be deceived and coerced by criminal organizations to work on board vessels where economic exploitation, hazardous conditions, physical injury, psychological and sexual abuse can be common.

They are recruited and brought into the country by brokers, which take a fee deducted from the workers’ wages. Most workers have agreed only verbally to their terms and are employed as undocumented workers. As a result, these crew members have no labour protection in the legal system, and in some cases work more than 20 hours a day, are threatened by violence and financial penalties, and at times have little chance of returning ashore. Their payment is based on a proportion of the catch, sometimes with

various arbitrary deductions the workers are unaware of.

Shore-based operations have their own labour issues

Shore-based operations include work in ports, repairs, processing, and harvesting of shore-based living resources, for example from aquaculture. Fish production is largely seasonal, especially for wild-caught fish. As a result, fish processing can be extremely unpredictable. Fish processing factory owners, particularly in the developing world, have adapted to this unstable situation by using temporary labour and permanent positions in factories often represent less than 10% of the overall staff. Temporary labour is convenient for owners as they can be called on board when plenty of fish is available. Hiring is usually done on a daily basis with a daily salary. Generally, this type of work does not provide any social benefits, such as health care and pension rights.

In some countries, temporary labour is not registered in the records of the processing factory, instead being hired from external labour agencies, which are sometimes organized formally as “cooperatives”. These cooperatives have people available to come for a job of one day and place workers in factories extremely quickly, meaning that workers have little time to get themselves organized. As the majority of the labour force in the fish processing are women, the fact that this labour is unplanned often leads to leaving children unattended, creating problems such as illiteracy due to missed days at school. In turn, crime among youth is generally high in towns with an important fish processing industry.

In addition to the challenges related to the temporary nature of fish processing work, processing work can be physically difficult with health problems among workers being quite common. In general, fish processing is carried out standing, which leads to several health issues, especially back pain and blood circulation problems. Much of the processing could easily be carried out in a seated position, however seats would require additional space as well as incur costs for purchasing and cleaning. The continuous exposure to water also creates health problems such as arthritis, especially for female workers.

The issue of migrant workers in the fish processing industry is relevant, especially in countries that are wealthier than

Article by María Martí FluxaThe views expressed in the article are those of the author and do not necessarily reflect the views of FAO GLOBEFISH


neighbouring countries and therefore attract immigrant labour. As migrant workers, sometimes these workers are not covered by national labour control and labour laws and are subject to longer working hours, fees deducted from wages, no benefits and in sometimes unsafe or hazardous conditions. As this issue generally does not affect nationals of the country, the labour authorities are often less vigilant than usual in their controls. Most States have committed to promoting basic human rights

Human trafficking is tackled by the Trafficking in Persons Protocol, a supplement to the United Nations Convention against Transnational Organized Crime (UNCTOC). It establishes policies, programmes and other measures to prevent and combat trafficking and protect and assist victims.

The ILO has two conventions on forced labour (29 and 105), which members undertake to suppress the use of forced labour. Other related conventions deal with freedom of association (98), discrimination (111) and minimum age (138). They all are among ILO’s most ratified conventions.

The Maritime Labour Convention has been in force since August 2013 (and has been ratified by 65 countries), but expressly excludes vessels and fishers (art2.4).Fishing vessels are also excluded from the majority of provisions in the Convention for Safety of Life at Sea (SOLAS) and the International Convention on Standards of Training, Certification, and Watchkeeping for Seafarers (STCW Convention). The exclusion of fishing vessels and personnel from maritime safety standards and international conventions, or size limits aimed at large vessels tied to these requirements, also contribute to the vulnerability of fishers at sea (Fishwise 2014). Although many in-force international conventions are applicable, the lack of specific regulation undermines prevention, detection and prosecution of these kinds of violations

ILO has identified the need of sector-specific international regulation. In 2007 the International Labour Conference adopted the Work in Fishing Convention (188), which is supplemented by the Work in Fishing Recommendation (199).

These standards apply to all fishers and fishing vessels engaged in commercial fishing activities and aim to establish a set of minimum requirements to be followed. These requirements represent a global labour standard that is flexible enough to be enacted by governments worldwide at all stages of development.

The Convention 188 contains several provisions that, once in force and widely ratified, could significantly improve working and living conditions of fishers and help prevent and combat the worst forms of labour exploitation. The convention addresses the responsibilities of fishing vessel owners and skippers, recruitment, use of private employment agencies, written work agreements, payment, on board accommodation and food, requirements for crew lists, minimum age, occupational safety and health, social security, flag and labour inspections, medical examination and care, repatriation, hours of rest and other important areas.

Although the ratification process has been slow (at the moment, only five countries have ratified the Convention and it requires ten to be enacted), it is expected to enter into force in the near future, as many countries are currently considering the ratification.

The International Maritime Organization (IMO) has established two industry specific legal instruments: Standards of Training, Certification, and Watchkeeping for Fishing Vessel Personnel (STCW-F) and Safety of Life at Sea for Fishing Vessels (SOLAS-F).

The 1995 STCW-F Convention sets the certification and minimum training requirements for crews of seagoing fishing vessels of 24 metres in length and above. It has

SPECIAL FEATURE

Voluntary Guidelines for Securing Sustainable Small-Scale Fisheries in the Context of Food Security and Poverty

Eradication These Voluntary Guidelines for Securing Sustainable Small-Scale Fisheries in the Context of Food Security and Poverty Eradication have been developed as a complement to the 1995 FAO Code of Conduct for Responsible Fisheries (the Code). They were developed to provide complementary guidance with respect to small-scale fisheries in support of the overall

principles and provisions of the Code. Accordingly, the Guidelines are intended to support the visibility, recognition and enhancement of the already important role of small-scale fisheries and to contribute to global and national efforts towards the eradication of hunger and poverty. The Guidelines support responsible fisheries and sustainable social and economic development for the benefit of current and future generations, with an emphasis on small-scale fishers and fish workers and related activities and including vulnerable and marginalized people, promoting a human rights-based approach.

Full report available in 6 lanaguges at:

http://www.fao.org/fishery/ssf/guidelines/en 2014


been ratified by 17 countries and entered into force in September 2012.

The 1977 SOLAS-F Convention and its derived instruments (1993 Torremolinos Protocol and 2012 Cape Town Agreement) contain safety requirements for the construction and equipment of new, decked, seagoing fishing vessels of 24 metres in length and over, including those vessels also processing their catch. However, it has not been widely ratified and is not in force.

Besides this international legislation, there are a variety of voluntary codes for guidance:

• FAO-ILO-IMO Document for Guidance on Training and Certification of Fishing Vessel

• FAO Fisheries & Aquaculture Code of Conduct for Responsible Fisheries

• FAO-ILO-IMO Code of Safety for Fishermen and Fishing Vessels

• FAO-ILO Guidance for Addressing Child Labour in Fisheries and Aquaculture

While on board work has been regulated by IMO and ILO, the shore-based activities are ruled by the correspondent country laws and there is currently no specific framework

(with the exception of guidance in aquaculture).

The countries are not always able or willing to meet their current commitments

At sea, flag States have primary responsibility to ensure compliance with international and national laws on board vessels flying their flag. However, some States are unable or unwilling to meet their monitoring, surveillance, control, and enforcement (MSCE) responsibilities, especially in the high seas.

A flag of convenience (FOC) ship is one that flies the flag of another country other than the country of ownership. It is one of the simplest and most common ways to escape rigorous standards and regulations in their own home country. It can also mean poor labour standards, including the freedom to employ cheap labour, follow minimal regulations, pay low registration fees/taxes and avoid penalties. The International Transports Worker’s Federation (ITF) advocates that there should be a “genuine link” between the real owner of a vessel and the flag the vessel flies, in accordance with the United Nations Convention on the Law of the Sea (UNCLOS). They argue that FOC registries make it more difficult for unions, industry stakeholders and the public to hold ship owners accountable.

Source: Wilkings, A. 2012. Fisheries and aquaculture certification: Implications for Southeast Asia

legend

english, e; spanish, s; french, f; chinese, c; thai, t; Portuguese, P; mandarin, m

o : independent accredited: third Party Certifier (tPc)

• : international organization for standardization (iso) accredited

SPECIAL FEATURE


Multi-stakeholder initiatives have potential to impact working conditions

Many international and national organizations address labour rights in the fishing sector (Seafish March 2015 Industry Briefing offers a detailed list). They work to spread information about human rights abuse and the ways to fight it.

In addition to environmental issues, consumer concerns have recently begun to include questions regarding labour exploitations and disparity in food producing countries. A survey conducted by Fishwise shows this concern: 88% of consumers would stop buying a seafood product related to human rights abuse, and 70% would pay more for a certified product to be free from these abuses.

Certifications present a market-based mechanism that can complement traditional regulations. These certifications are granted by private agencies that verify the product quality and/or the company processes.

There are a number of certifications that are tailored specifically to fisheries or aquaculture, but are not focused on worker safety and human rights, instead focusing on sustainable environmental practices. The below table outlines some of the fishing certification schemes in relation to their certifying body and area of focus. One can see environmental aspects dominate their focus.

There are certifications that generally address worker safety and human rights for various types of industries. Among them, there are more than ten that can apply to fisheries and mainly aquaculture: ‘Fair Trade USA’, ‘Fair for Life’, ‘Workers Health, Safety and Welfare certification by Global GAP’, ‘Naturland Wildfish’, ‘SA8000 – Social Accountability’, ‘ITF Blue Certificate’, ‘ISO26000’ and others. However, most of the widely known certifications in fisheries and aquaculture focus on environmental practices.

In conclusion…

General awareness and conscience raising about labour issues in fisheries and shore-based activities is essential. If the citizens, electors and consumers are aware of this problem:

• public opinion will foster international action, increasing chances of the adoption of comprehensive regulations;

• trustworthy distributors and producers will need to utilize specific certifications to verify good practices;

• poor practices of any value chain participant or stakeholder may be more effectively prosecuted.

SPeCIAL FeATUre

V i g o D i a l o g u e o n B e n e f i t s o f D e c e n t E m p l o y m e n t i n

F i s h e r i e s a n d A q u a c u l t u r e

held on October 9th, 2015

Key fisheries and aquaculture stakeholders from the private sector, government, civil society, and the media gathered to discuss priority issues, benefits, incentives and actions associated with labour conditions in the sector, in a consultative process termed the Vigo Dialogue which had been initiated already during the 2014 FAO-Conxemar Global Shrimp Congress.

Among the issues discussed, the attendees emphasized their growing interest and opportunities for promoting social standards and certification for better and fairer practices in the sector (i.e. social labels with focus on ethical issues in fisheries including in particular on labour conditions). explicit reference was made to social risk assessment in seafood sourcing and to corporate social responsibility and initiatives such as the responsible Fishing Scheme, Business Social Compliance Initiative (BSCI), Global Social Compliance Programme (GSCP), Global Compact, Initiative Clause Sociale (ICS), Fédération internationale des ligues des droits de l’Homme (FIDH). It was however also noted that such initiatives should also consider, include and assist the huge numbers of small-scale fishers, fish farmers and post-harvest fish workers, as well as the needs and opportunities of employment creation and enterprise development.

The session was attended by some 30 participants, and gathered representatives from private sector (Europeche, Pescanova, Carrefour, Regal Springs); governments (Argentina, Namibia, France and UK); fish worker unions and organizations (ICSF, IUF and ITF); certification (MSC) and media (Seafood Intelligence). Introductions to the session were presented by FAO and ILO.

As one of the follow-up actions, it was recommended that the Vigo Dialogue could be developed into a multi-stakeholder platform possibly facilitated by FAO. Going forward, the participants agreed to issue statements of intent on actions and measures to be undertaken for the improvement and promotion of decent work in the sector.

For more information, please contact: [email protected] [email protected] [email protected] [email protected]


F I S H A N D F I S H E R Y P R O D U C T S S T A T I S T I C S 1

Capture fisheries production

Aquaculture fisheries production

exports imports

2012 2013 2012 2013 2013 2014 2015 2013 2014 2015estim. estim. estim. estim.

million tonnes (live weight equivalent) Usd billion

ASIA 50.2 50.9 59.0 62.5 53.9 55.8 52.0 42.5 43.5 41.0

China2 17.2 17.4 41.5 43.9 22.2 23.5 22.1 12.9 13.5 12.8

of which China. Hong Kong SAR 0.2 0.2 0.0 0.0 1.1 1.0 0.7 3.8 3.6 3.4

& Taiwan Province of China 0.9 0.9 0.3 0.3 1.8 1.8 1.6 1.0 1.2 1.2

India 4.9 4.6 4.2 4.5 4.6 5.6 4.9 0.1 0.1 0.1

Indonesia 5.8 6.1 3.1 3.8 3.8 4.2 4.0 0.4 0.3 0.4

Japan 3.7 3.7 0.6 0.6 2.0 1.9 2.0 15.3 14.8 13.5

Korea. Rep. of 1.7 1.6 0.5 0.4 1.8 1.7 1.6 3.6 4.3 4.5

Philippines 2.3 2.3 0.8 0.8 1.2 1.0 0.8 0.3 0.3 0.4

Thailand 1.7 1.8 1.3 1.1 7.0 6.6 5.7 3.2 2.7 2.4

Viet Nam 2.7 2.8 3.1 3.2 6.8 6.9 6.7 0.9 1.0 0.9

AFRICA 8.2 8.0 1.5 1.6 5.5 5.7 5.5 6.1 5.8 5.8

Ghana 0.4 0.3 0.0 0.0 0.0 0.0 0.0 0.3 0.3 0.3

Morocco 1.2 1.3 0.0 0.0 1.8 1.9 1.9 0.2 0.2 0.2

Namibia 0.5 0.5 0.0 0.0 0.8 0.8 0.8 0.0 0.1 0.1

Nigeria 0.7 0.7 0.3 0.3 0.2 0.2 0.2 1.4 1.1 1.0

Senegal 0.5 0.5 0.0 0.0 0.3 0.4 0.3 0.0 0.0 0.0

South Africa 0.7 0.4 0.0 0.0 0.6 0.6 0.6 0.5 0.4 0.4

CENTRAL AMERICA 2.2 2.2 0.3 0.4 2.5 2.7 2.5 1.7 2.0 1.8

Mexico 1.6 1.6 0.1 0.2 1.1 1.2 1.1 0.8 0.9 0.8

Panama 0.2 0.2 0.0 0.0 0.2 0.2 0.2 0.1 0.1 0.1

SOUTH AMERICA 10.1 10.3 2.1 2.1 13.7 15.5 12.9 3.7 3.8 3.5

Argentina 0.7 0.9 0.0 0.0 1.5 1.6 1.6 0.2 0.2 0.2

Brazil 0.8 0.8 0.5 0.5 0.2 0.2 0.2 1.5 1.6 1.3

Chile 2.6 1.8 1.1 1.0 5.0 5.9 4.8 0.4 0.4 0.4

Ecuador 0.5 0.5 0.3 0.3 3.6 4.3 3.7 0.1 0.1 0.1

Peru 4.8 5.9 0.1 0.1 2.7 2.9 2.0 0.2 0.2 0.2

NORTH AMERICA 6.2 6.4 0.6 0.6 10.7 11.0 10.7 21.9 25.0 23.4

Canada 0.8 0.9 0.2 0.2 4.3 4.5 4.6 2.8 3.0 2.8

United States of America 5.1 5.2 0.4 0.4 6.0 6.1 5.8 19.0 21.9 20.5

EUROPE 13.1 13.5 2.9 2.8 46.9 49.9 43.3 58.3 61.3 52.4

European Union 2 4.7 5.0 1.3 1.2 29.8 32.2 28.3 50.9 54.4 47.8

of which Extra-EU " " " " 5.7 5.9 5.2 26.8 28.4 25.4

Iceland 1.4 1.4 0.0 0.0 2.3 2.1 2.2 0.1 0.1 0.2

Norway 2.2 2.1 1.3 1.2 10.4 10.8 8.9 1.3 1.4 1.1

Russian Federation 4.3 4.3 0.1 0.2 3.6 3.8 3.1 3.4 3.0 1.7

OCEANIA 1.3 1.2 0.2 0.2 2.9 3.0 2.8 2.0 2.3 2.0

Australia 0.2 0.2 0.1 0.1 1.0 1.1 1.0 1.6 1.7 1.4

New Zealand 0.4 0.4 0.1 0.1 1.2 1.2 1.1 0.2 0.2 0.2

WORLD 3 91.3 92.6 66.5 70.2 136.1 143.5 129.8 136.3 143.7 130.0

World excluding Intra-EU " " " " 112.0 117.2 106.7 112.2 117.6 107.5

Developing countries 67.2 68.1 62.2 66.0 74.0 78.1 71.4 37.8 39.5 38.0

Developed countries 24.0 24.4 4.3 4.2 62.1 65.4 58.3 98.5 104.2 92.0

LIFDCs 14.8 14.5 7.4 7.9 7.6 8.6 7.9 3.8 3.5 3.5

LDCs 9.8 10.1 3.0 3.2 2.5 2.5 2.4 1.3 1.4 1.4

NFIDCs 18.5 19.9 4.3 4.7 10.0 10.3 9.1 4.7 4.9 5.21 Production and trade data exclude whales. seals. other aquatic mammals and aquatic plants. Trade data include fish meal and fish oil. 2 Including intra-trade. Cyprus is included in Asia as well as in the European Union. Starting with 2013 data. EU includes Croatia. 3 For capture fisheries production, the aggregate includes also 32 358 tonnes in 2012 and 83 275 tonnes in 2013 of not identified countries, data not included

in any other aggregates. Totals may not match due to rounding.


EVENTS

A milestone for global fisheries and aquaculture sector, the two-day conference saw policymakers and industry debate concerted strategies for achieving more sustainable fisheries and aquaculture practices in the future, including the fight against illegal, unreported and unregulated fishing, improving livelihoods and labour conditions in the sector and more effective fisheries management.

The Vigo Conference, co-organized by FAO, the

Government of Spain, the regional government of Galicia and Conxemar celebrating the

20th Anniversary of the Code of Conduct, took place in Vigo on

October 8-9 2015

2015 - First International Fisheries Stakeholders Forum 20th Anniversary of the Code of Conduct (FAO)

In total, more than 620 participants took part in

the event, including 120 policymakers from 63 countries,

in addition to senior executives from the main seafood

companies worldwide, scientists, academics and NGOs.

In the next issue: ful l coverage of the Vigo Conference

The GLOBEFISH Research Programme provides detailed analysis of selected markets, species and products of relevance in international fish trade. In addition, studies are published on specific issues of importance to the sector.

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globefish highlights - issue 4/2015exchange rate developments have been one of the main influencing...

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