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HIGHLIGHTSA quarterly update on world seafood markets

30/04/2011 Issue 2/2011

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INSIDE THIS ISSUE...Global fi sh economy After a strong rebound in 2010, the current year looks likely to set new trade records thanks to strong demand and rising prices. p. 2

Shrimp prices reach record highIn real terms, 2010 was a good year for shrimp farmers and traders worldwide. The market has also made a clear recovery after the global fi nancial crisis hit in 2008. Shrimp prices have

reached record highs in major domestic and import markets – a trend that continued throughout 2010 and has continued during the fi rst quarter of 2011. p. 4

Effect of Japan’s tsunami on tuna market uncertainThe devastating earthquake and tsunami have had serious effects on Japan’s fi shing industry and trade, as Japan is the world’s largest sashimi tuna market p. 11

Groundfi sh needs to focus more on value added products

The remarkable resurgence of groundfi sh, especially Atlantic cod, which will exceed one million tonnes in 2011 for the fi rst time in more than a decade, will be welcome in global

markets. However, the groundfi sh industry needs to be creative in order to get the attention of consumers who are more interested in low prices. p. 18

Octopus supply tight, squid improvingTight supplies affected trade in 2010, especially for octopus. Imports into all the major markets declined, and prices edged upwards. For squid, supplies were better, and the outlook for 2011

is good. The cuttlefi sh market is quiet, with stable volumes and slightly increasing prices. p. 22

Tilapia demand continues to growGlobal demand for tilapia continues to grow both in international and in domestic markets. Prices are expected to be higher in 2011 with demand fi rm, rising processing costs and a balanced supply.

Exports from China in 2010 grew 25% in volume reaching 321 885 tonnes. p. 26

Asian countries look to pangasius for domestic consumption as Viet Nam’s exports crumble

Viet Nam remains the main supplier of pangasius catfi sh in international trade. However, aquaculture production of pangasius is developing in other Asian countries as well, contributing largely

to domestic food security programmes. Worldwide demand for imported pangasius fi llet remained stable with minor declines in the traditional markets supplied by Viet Nam. p. 29

Seabass and seabream impress RussiaIn 2010, producers in Mediterranean countries scaled back operations because of tighter access to credit and uncertain demand. This will result

in lower output in 2011 causing the current price to rise. The question remains as to what will happen during the fall after the new season begins. p. 31

Salmon production in 2010 less than half in ChileChilean production of Atlantic salmon in 2010 was less than half of the levels registered in previous years. The available fi gures for harvests show that

up to November 2010 there was a 54% reduction in aquaculture output. p. 35

Mackerel wars continue into 2011During 2010 Russia emerged as an important market for mackerel, although the declining trend of exports from Norway continued. Herring exports

in 2010 also declined but prices rose to counteract the negative impact. Supplies of pelagic fi sh have tightened recently, and the main reason for this is the poor supply of Norwegian spring spawning herring. p. 41

Fishmeal production at lowest level in years keeps prices high

Combined world production of fi shmeal fell sharply last year caused by declining catches in producing countries in South America. By region, fi shmeal output fell back 27% in South America whereas European production bounced upwards

by 39% thanks to higher catches in Norway in particular. p 45

Fish oil price continues to track crude oil priceThe fi sh oil market is in stand-by mode awaiting the results of the Peruvian fi sheries. Current prices are at record levels and despite increased oil production during the fi rst two months of 2011 compared with last year, up

from 59 000 tonnes to 78 000 tonnes, prices should remain high. p. 48

New Challenges for Bivalve MolluscsThe bivalve mollusc sector faced a number of challenges in 2010, including a reduction in the import of scallops to the European Union, an oversupply of mussels that led to a drop in the average

price in Chile, and the shortage of oysters in the French market with a corresponding 40% price rise. p. 49

Fish and fi shery products statistics p. 53

Value-addition in the fi sh processing industry - additives and coatings p. 54

SPECIAL FEATURE

2 Globefi sh Highlights April 2011

GLOBAL FISH ECONOMYAfter a strong rebound in 2010, the current year looks likely to set new trade records thanks to strong demand and rising prices.

Japan

The tragic earthquake and accompanying tsunami in Japan is affecting world markets for food. Japan is the world’s single largest importer of fi sh and fi shery products, and in the short term, the damage to infrastructure and the disruption in transportation and electricity transmission is negatively impacting imports, distribution and consumption of chilled and frozen products. The earthquake and tsunami have also destroyed many fi shing zones and fi shing vessels, thereby reducing Japan’s ability to catch and produce fi sh locally. Fish processing plants have been damaged as well.

The 2009 combined production of marine capture fi sheries and marine aquaculture of the three most affected prefectures was 446 000 and 198 000 tonnes, or 11 and 17% respectively of the total Japanese production. A reduction of 80% in production can be expected in those affected areas as a result of the tsunami. It must be borne in mind that Japan is heavily dependent on imports as well for its fi sh consumption so the contribution of the affected areas to total supply is actually far less.

The effect on Japanese consumer sentiment and consumption resulting from the nuclear fall-out is still unknown, although the frequent interruption in power supply will continue to limit consumption of chilled and frozen products. Equally, consumer reaction to domestically sourced fi shery products is uncertain. This factor could potentially be much more important than

the direct damage caused to domestic production if consumer preferences were to move towards imported products. In this case, the impact on world fi sh markets would be signifi cant.

For the industry, one likely effect overall is a change in strategy to one of less concentrated supply. Operators will be willing to forego some economies of scale to ensure a more diversifi ed supply. It can be expected that parts of the processing facilities destroyed will not be rebuilt as plant owners choose to re-locate industry elsewhere. Much of Japan’s fi sh processing capacity has already been outsourced to neighboring countries such as China, Viet Nam and Thailand, and this trend will continue.

2010 with strong rebound in global fi sh trade

International trade in fi sh and fi shery products bounced back in 2010 to pass the USD 100 billion mark again. In part, this was thanks to higher average fi sh prices, which had declined sharply after the crisis struck in late 2008 and continued through 2009. Consumer demand was particularly strong in developing countries supported by the faster than expected economic recovery in these countries. This rising demand was and is still being met through higher domestic production and imports of tropical aquaculture products.

Prices

In 2010, the farmed shrimp price reached its highest level in a decade. Quotations for farmed salmon, tilapia, pangasius, Indian carp and other species have also gone up in domestic and international markets - a trend expected to infl uence and redirect world fi shery trade in the future.

0

5

10

15

20

25

Extra EU Japan USA China RP Korea Hong Kong Thailand Russia Canada Australia

20092010

Top-10 Importers

* Excludes Intra-EU tradeSource: INFOFISH

*

USD

bill

3Globefi sh Highlights April 2011

World fi sh markets at a glance2008 2009 2010 Change

f’cast 2010

over 2009

million tonnes %

WORLD BALANCEProduction 142.3 144.6 147.0 1.7 Capture fi sheries 89.7 88.9 89.8 1.0

Aquaculture 52.5 55.7 57.2 2.7

Trade value (exports USD billion) 102.0 95.4 101.9 6.8

Trade volume (live weight) 55.2 54.9 55.3 0.7

Total utilization Food 115.1 118.4 119.5 1.0

Feed 20.2 19.0 20.1 5.8

Other uses 7.0 7.2 7.4 2.8

SUPPLY AND DEMAND INDICATORS

Per caput food consumption

Food fi sh (kg/year) 17.1 17.3 17.3 0.2

From capture fi sheries (kg/year) 9.3 9.1 9.0 -1.7

From aquaculture (kg/year) 7.8 8.2 8.3 2.6

Totals may not match due to rounding.

GLOBAL FISH ECONOMY

The FAO Fish Price Index (2005=100)

Data Source: Norwegian Seafood Export Council

In part the high prices of farmed species were caused by factors on the supply side but with the expected growth in demand over the next decade and with rising prices of a number of input factors, including energy and fi shmeal, prices for both wild and farmed species can be expected to rise to even higher levels.

As shown by the FAO Fish Price Index, current fi sh prices are higher on average than ever before, indeed higher than the levels reached before the start of the 2008 economic crisis. Aquaculture products, in particular, have shown strong increases and at present levels are 23% higher than in September 2008. Again, this is mostly explained by factors on the supply side but it is also evident that the market is willing and able to accept these prices.

Capture prices on the other hand, after a sharp drop in the aftermath of the crisis, have only recently regained pre-crisis price levels.

Outlook

After a strong 2010, the current year is expected to yield new records in international fi sh trade. Volumes are sustained by fi rm demand in most markets, in particular in developing countries, and prices are rising for both capture and farmed species. The situation in Japan has added some uncertainty regarding Japanese consumer behavior, its possible impact on demand for imported fi sh products and the repercussions in world markets.

75

85

95

105

115

125

135

145

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

TOTAL AQUACULTURE CAPTURE


Shrimp prices reach record high

In real terms, 2010 was a good year for shrimp farmers and traders worldwide. The market has also made a clear recovery after the global fi nancial crisis hit in 2008. Shrimp prices have reached record highs in major domestic and import markets – a trend that continued throughout 2010 and has persisted until the fi rst quarter of 2011.Despite an almost 35% rise in the international prices of shrimp last year, imports increased in the traditional developed and emerging markets. The combined shrimp imports in the fi ve developed markets - EU, Japan, USA, Canada and Australia - totaled nearly 1.8 million tonnes posting a 2.7% rise against 2009. Import growth was much higher in the developing world.The stability in the global shrimp market persisted until the devastating earthquake and tsunami in Japan affected the world’s single largest shrimp market in March 2011. The US market, meanwhile, is showing better prospects for 2011, compared with the past three years.

SHRIMP

Exports

Shrimp exports increased from most of the producing countries in 2010. The global leader in production, China reported an 11.60% rise in shrimp exports reaching 275 000 tonnes, but placed second in ranking behind Thailand as more products entered the strong domestic market. Shrimp exports from Thailand totaled 428 000 tonnes, representing a 10% increase compared with 2009. Viet Nam was possibly the third leading shrimp supplier in the global market. The trade association VASEP reported 241 000 tonnes of exports in 2010, 13.4% higher than 2009. India, Indonesia and Malaysia also reported export recovery in 2010 against 2009.

Supply

Asia

Overall supply of farmed shrimp has been seasonally low in Asia during the fi rst quarter of 2011 and the new season’s harvest was expected to be ready in April. However, in late March severe fl ooding in southern Thailand washed away more than 50 000 tonnes of shrimp affecting hundreds of farms in the region. The situation will certainly take its toll on exports from Thailand in the coming months. Catching of black tiger shrimp commenced in Bangladesh and India in late March with low to moderate landings.

The fi rst large harvests of farmed vannamei shrimp took place in India last year, amounting to about 20 000 tonnes, contributing to higher exports. One vannamei shrimp farm (Sharat Industries) was also certifi ed ‘sustainable’ by Friend of the Sea in February 2011. Indian vannamei production this year is forecast to reach 35 000 tonnes.

Latin America

Farmed shrimp supplies are not expected to improve before May-June, when the main harvest season should start. Demand for shrimp is also expanding for Latin American products. The presence of Chinese importers in Ecuador has been good, procuring raw frozen and value-added products.

USA

Domestic landings totaled 95 655 tonnes, a decrease of 27.1% compared with 2009. The only state to increase landings was Florida (+14.7%); in Texas, Alabama, Mississippi and Louisiana landings decreased by 14.3%, 56.1%, 60% and 32% respectively. The smaller supply

Source: FAO

Penaeus vannamei 39%

2 260 503

Giant tiger prawn, 17%

965 981Akiami paste shrimp 10%

558 224

Northern prawn, 7%

383 649

Others 27%1 592 526

Shrimp production by main species (2008)


Japan

The end-of-winter season in early March started with much anticipation and planning for good seasonal demand in April and May. However, the devastating tsunami on 11 March and its after effects have totally changed the direction of the Japanese seafood market, including for shrimp. The magnitude 9 earthquake, which triggered 30 feet high tidal waves, killed more than 20 000 people in the coastal region northeast of Tokyo.

Currently there is no real direction in the market. The large number of cancellations in hotel and restaurant bookings, including high-end sushi and tempura restaurants clearly indicates a scenario of minimizing celebrations during the Spring festival. People in the greater Tokyo area (Kanto) where shrimp consumption is the highest in the country are mourning the rising tsunami death toll and extremely worried about the continued nuclear crisis. Following a nationwide drive to raise funds for tsunami/earthquake victims, there will be less money spent on expensive food such as shrimp during this year’s Hanami or Cherry Blossom festival.

In early April, shipments of black tiger shrimp bound for Osaka from Kolkata and to Nagoya from Indonesia were noted. In March,Indian packers also sold a considerable quantity of large sizes (11/15 to 26/30 ) of headless vannamei to Japan. Many of these shipments are now delayed at origins as a result of the infrastructural damage as well as the nuclear radiation scare in Japan. Current imports are slow from Thailand and Malaysia because of the high offer prices.

Imports in 2010

Despite record high shrimp prices in the international market, Japan imported 5.84% more shrimp last year compared with 2009. Cumulative shrimp imports in 2010 reached 280 732 tonnes - the highest volume recorded since 2007 by Japanese Customs. Supplies increased for both raw and processed shrimp.

Thailand was the leading exporter with higher supplies of raw and value added products. Overall, Thailand supplied 77 642 tonnes, Viet Nam 55 416 tonnes, Indonesia 38 518 tonnes and India 28 517 tonnes. Exports of coldwater varieties also increased from Russia and Argentina.

The Japanese market imported more value added shrimp in 2010. The share of processed shrimp in total shrimp imports increased from 24% in 2009 to 34% in 2010. Thailand captured a 56% market share in processed shrimp exports whereas Viet Nam held the second position with a 20% market share for products under the HS code 160520.

Raw frozen shrimp dominated the product mix with a 73% share in total shrimp imports. Viet Nam was the leading supplier of raw frozen shrimp in 2010. However, the supply from Viet Nam increased by only 1.42% against a 17.36 % rise in imports from Thailand and a 16.50% rise from India. Supplies also increased from Malaysia. Imports of coldwater shrimp were higher from Russia, Argentina and Denmark compared with 2009.

USA

In the US, the shrimp market has been strengthening since late January. Imports in that month were higher than 2010 and 2009. Overtaking Viet Nam, supplies from India

Shrimp prices (16-20 count) in main wholesale markets, USA and Japan

ImportsShrimp (by product): Japan

2007 2008 2009 2010

(1 000 tonnes)Live 0.2 0.1 0.1 0.1

Fresh/chilled 0.0 0.0 0.0 0.0

Frozen, raw 207.3 196.6 197.6 205.3

Dried/salted/in brine 1.6 1.8 2.9 2.6

Cooked, frozen 17.9 19.7 20.9 21.6

Cooked & smoked 0.3 0.3 0.3 0.3

Prepared/preserved* 48.2 44.0 41.1 46.6

Sushi (with rice) 0.1 0.1 2.2 2.0

Total 275.5 262.6 265.2 280.7

*(incl. tempura shrimp)Source: JFTA/INFOFISH

had an impact on prices, which showed signifi cant rises. For this year, the outlook is quite different as NOAA has reopened shrimp fi shing in 4 200 square miles of Gulf waters, which might have a positive impact on supply.

3

4

5

6

7

8

Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11

USD/lb

Gulf brown, New York

Indian white, Tokyo

SHRIMP

Penaeus vannamei 39%

2 260 503

Giant tiger prawn, 17%

965 981Akiami paste shrimp 10%

558 224

Northern prawn, 7%

383 649

Others 27%1 592 526

Shrimp production by main species (2008)


increased signifi cantly, with vannamei shrimp having a major share. Stocks in the market are low. Imports picked up strongly in March as new harvests will not reach the market before April/May.

Thai dominance in supply remains with higher exports of raw and processed shrimp. Compared with January last year, Indonesian supplies recovered with higher exports of shell-on and peeled products.

Despite higher prices, shrimp demand in the last quarter of 2010 was slightly better than in the same period of 2009, giving a signal of the positive trend of the sector regarding demand and prices (although the benefi ts of good prices are being absorbed by the producers rather than intermediaries and retailers).

Signifi cant import value increment as a result of higher prices in 2010

During 2010, US shrimp imports were slightly higher than the previous year totaling 560 800 tonnes, an improvement of 1.6% compared with 2009. In value, imports totaled USD 4 295 million, an increase of 13.7% against the previous year. This signifi cant rise is explained mainly by higher prices in the international market. In 2009 the average price paid for a tonne was USD 6 842, while in 2010 the average price was 12% higher, reaching USD 7 659. Unit value increased in all product categories, but some products and counts were particularly noteworthy, for example, the peeled frozen shrimp price increased by 14%, the frozen shell-on price increased on

ImportsShrimp (frozen raw): Japan

2005 2006 2007 2008 2009 2010

(1 000 tonnes)

Viet Nam 54.6 51.1 40.0 42.2 39.9 40.5

Thailand 18.4 20.1 26.4 24.9 32.1 37.7

Indonesia 45.6 43.7 37.1 37.4 34.8 32.0

India 26.3 28.5 27.0 24.0 24.3 28.3

China 24.1 22.8 24.0 16.8 14.9 13.8

Russian Fed. 10.4 9.5 8.9 7.8 7.1 7.9

Malaysia 3.1 3.1 4.2 4.5 5.1 7.3

Canada 8.1 8.7 7.6 7.7 7.2 7.1

Myanmar * * 8.0 6.8 6.7 5.9

Greenland 7.5 6.8 5.4 5.6 6.5 5.0

Argentina 0.6 3.4 1.9 2.6 3.6 4.9

Philippines 6.2 5.3 4.3 3.5 4.0 3.5

Bangladesh na na 2.6 3.1 2.4 2.5

Australia 3.6 3.2 1.9 2.3 2.0 2.1

Others 23.9 23.8 18.6 7.4 7.0 6.9

Total 232.4 230 207.3 196.6 197.6 205.4

Source: GLOBEFISH AN 10127, *) included under others

ImportsShrimp: USA

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Thailand 160.9 193.7 188.3 182.4 192.8 203.2

Ecuador 49.6 59.4 59.1 56.3 61.6 65.0

Indonesia 52.6 58.7 59.1 84.0 69.3 61.1

Viet Nam 42.9 37.1 39.3 47.9 44.1 48.4

China 45.2 68.2 48.4 47.8 42.2 48.1

India 35.7 27.3 20.8 15.2 19.9 30.2

Malaysia 17.2 20.3 22.8 30.1 18.4 24.3

Mexico 28.1 35.4 40.6 34.5 41.1 23.5

Honduras 10.5 9.3 7.3 5.7 8.7 10.2

Bangladesh 15.8 19.4 14.9 13.7 9.9 8.1

Guyana 8.6 7.8 8.9 9.1 8.9 7.8

Peru 4.5 5.3 7.2 7.5 8.5 7.0

Nicaragua 4.9 4.8 4.2 2.4 4.8 4.4

Venezuela 11.4 9.9 10.8 7.1 3.8 3.6

Panama 5.9 4.7 4.5 3.6 3.6 3.3

Canada 7.7 7.1 6.0 5.0 3.0 2.8

Others 27.3 21.9 14.8 11.8 11.6 9.8

Total 528.8 590.3 556.9 564.2 552.2 560.8

Source: NMFS; GLOBEFISH AN 10129

ImportsShrimp: USA

Product2008 2009 2010

1 000 tonnes

million USD

1 000 tonnes

million USD

1 000 tonnes

million USD

Breaded frozen 37.9 192.1 37.4 198.4 41.6 230.9

Other froz. prep. 90.5 696.6 96.8 722.3 95.1 745.5

Other prep. 1.3 6.4 1.2 5.2 1.5 7.1

Peeled frozen 183.7 1 364.5 184.6 1 303.8 188.9 1 521.3

Frozen shell-on 244.5 1 780.2 221.9 1 469.9 226.0 1 727.7

< 15 22.8 285.1 18.3 204.2 18.4 242.2

15/20 21.5 220.3 16.7 147.3 19.8 216.9

21/25 30.2 260.9 30.7 241.0 28.2 256.6

26/30 34.4 245.5 35.6 239.0 34.5 270.2

31/40 42.5 264.4 45.2 266.5 46.9 311.4

41/50 31.5 181.1 29.1 152.0 28.9 171.8

51/60 31.7 173.5 24.2 118.0 25.2 138.6

61/70 18.0 93.1 13.2 63.8 14.5 76.6

> 70 11.9 56.2 9.1 38.1 9.6 43.4

Other 6.4 53.0 107.1 800.8 7.8 62.5

Total general 564.2 4092.7 552.2 3778.1 560.8 4294.9

Source: NMFS

SHRIMP


SHRIMP

Now that the overall fi gures of the market in the fi rst year of economic growth after the crisis are available, some general conclusions can be reached. The volume of imports remained approximately at the same level since 2007, showing that the economic impact of the crisis did not reduce the consumption of shrimp. However, the pattern of shrimp consumption was changed as result of the crisis. During the recession period medium counts became more popular while consumption of large counts declined, and this trend was reversed, with large counts becoming popular again, once economic growth turned positive. This may have had an impact on the reduction of the average price per tonne during 2009, as medium counts are cheaper than large ones.

Thailand remained the largest supplier to the US exporting 203 237 tonnes, up 5.4% from 2009. Imports from China, Viet Nam, Malaysia, India and Ecuador increased, while imports from Indonesia and Mexico dropped signifi cantly. Ecuador increased market share from 11% to 11.6%, and became the second major shrimp importer to the US in 2010. Its imports increased by 5.6%. Imports from Viet Nam and China increased by 9.7% and 14% respectively. The largest growth rates came from India (+51.4%), Malaysia (+32.2%) and Honduras (+17.2%). In contrast, exports from Indonesia dropped by 11.9%, and Mexico’s declined sharply by 42.8%. This level of reduction is explained by a ban imposed by the US

average 15.4%, but overall it is clear that medium and large counts prices explained the good growth. While the 61/70 count price increased by 9.2%, U15, 15/20, 21/25 and 26/30 count prices increased by 17.5%, 23.8%, 15.8% and 16.4% respectively.

In volume, imports of frozen shell-on increased by 1.9%, but here again each count showed variation. Smaller counts, 61/70 and <70, increased in volume by 10% and 5.6% respectively, as well as the 21/25 count, up by a signifi cant 19%. In contrast, the 26/30 count was down by 8%, and the rest remained almost unchanged.

authorities on wild shrimp linked to the use of TED´s as authorities on wild shrimp linked to the use of TED´s as well as the “white spot” disease in the aquaculture sector. The Mexican market share declined from 7.3% in 2009 to

4.2% this year.

In mid- March, after a long period of evaluation the US International Trade Commission decided to maintain the anti-dumping duties on imports of frozen warmwater shrimp from Brazil, China, India and Thailand. The decision was taken to protect domestic production and will be enforced until at

least 1 February 2015, when a new evaluation will begin. The industry representative from Thailand, meanwhile, indicated that the extension will not have much impact on their exports, which have increased signifi cantly in recent years to this market.

Boston Seafood Show 2011

Industry representatives at 2011 Boston Seafood Show reported an overall positive industry outlook for this year, much better than for the last two years. There is a consensus that most in the sector made money in 2010. However, with wholesale prices of the majority of seafood products on the rise, there may be resistance from the market. The rising gasoline prices and the situation in Japan are also major concerns. Shrimp demand during the Lent is relatively low as traditional Lenten purchasing is more oriented towards fi nfi sh. A real increase in shrimp demand is expected when the weather improves, especially in the Mid West and north eastern states. Meanwhile, some importers believe that a price correction is likely this summer. Wholesale prices of most sizes and presentations are now quite high and many have not yet been passed on to consumers.

Europe

Despite the economic crisis, the EU shrimp market was relatively strong during the fi rst quarter of 2011. From Asia, demand was good for traditional shell-on black tiger, peeled shrimp and also for vannamei. Importers have started buying large sizes of vannamei from Asia. Indian packers, for example, have cemented exclusive arrangements with major importers in France and Spain for supplying head-on vannamei. European buyers are facing strong competition from US counterparts who are buying large quantities of blocks and IQF (net weight) products.

White Shrimp in Japanese market,origin Indonesia

Source: Infofi sh ITN

ImportsFrozen Shrimp: China

2008 2009 2010

(1 000 tonnes)Canada 10.4 9.7 15.5

Greenland 7.2 8.3 9.9

Thailand 1.5 2.2 6.9

Denmark 2.3 2.7 3.7

Malaysia 1.5 1.5 2.6

India 1.5 1.6 2.0

Ecuador - 0.3 1.2

Total 33.8 37.8 51.6Source: GLOBEFISH AN 010150

5

10

15

20

25

30


USD/kg

31/40

16/20


Supply was seasonally low during the fi rst quarter of 2011. The strong demand in Asia during the Lunar (Chinese) New Year celebration in February also diverted a considerable amount of shrimp into regional markets in China, Hong Kong Special Administrative Region, Taiwan Province of China and Singapore.

Strong growth in 2010

In 2010, the EU shrimp market posted fi gures showing positive growth, which were refl ected by increasing imports. The EU imported 836 854 tonnes of shrimp from internal and external sources, representing an increase of 3% over 2009.

Shrimp imports into Spain, the largest EU market, did not show any reduction. Instead, imports increased by 4.7% in volume and 24.3% in value, totaling 170 720 tonnes worth EUR 877.6 million. Though relatively small, imports of processed products grew strongly by over 41%.

Frozen shrimp supplies from major exporting countries increased, except for imports from China, while imports from Argentina, the largest supplier increased by 17.8%, Ecuador 14.7% and Thailand 53.3%.

Imports into the UK increased marginally by 1.2% in quantity, but value was signifi cantly up by 10.8%. Thailand was the largest supplier exporting over 17 000 tonnes of frozen and prepared/processed products. Other main suppliers from Asia were Indonesia, India, Bangladesh and Viet Nam.

ImportsShrimp: Spain

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Argentina 5.3 24.9 34.0 28.5 36.2 42.7

Ecuador 15.6 19.5 21.5 27.9 20.4 23.5

China 26.5 28.8 28.0 27.1 25.4 22.7

Thailand 0.5 1.2 1.7 5.7 7.7 11.8

Nicaragua 3.2 4.0 6.6 5.8 6.5 5.9

Colombia 9.6 8.8 7.9 7.9 7.2 5.3

Netherlands 5.4 5.0 5.0 4.0 4.1 4.5

Morocco 6.5 5.3 6.7 6.4 5.2 4.2

Belgium 2.8 4.4 3.6 4.6 4.5 4.2

Mozambique 4.8 4.6 5.7 4.0 3.4 4.0

Portugal 1.8 1.7 1.8 2.7 3.2 3.8

Honduras 5.3 6.9 7.5 4.1 4.5 3.4

Others 68.6 64.3 48.7 38.2 34.8 34.6

Total 155.9 179.5 178.8 166.8 163.1 170.7

Source: GLOBEFISH AN 010150

ExportsShrimp: Spain

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Italy 5.3 8.1 11.3 8.3 10.7 12.4

Porturgal 5.7 6.4 8.1 7.8 8.4 9.6

France 3.1 2.9 7.9 3.4 6.9 5.8

Greece 0.3 0.6 0.8 0.8 1.1 1.1

Others 1.5 2.6 3.8 2.9 3.1 2.0

Total 15.9 20.6 32.0 23.2 30.2 30.8

Source: GLOBEFISH

ImportsShrimp: UK

2005 2006 2007 2008 2009 2010

(1 000 tonnes)

Shell-on ColdwaterDenmark 2.6 2.8 2.4 2.2 2.2 1.3

Others 1.3 1.8 2.4 1.9 1.9 2.1

Total 3.9 4.6 4.8 4.1 4.1 3.4

Shell-on Warmwater India 10.8 11.3 10.5 7.6 7.6 7.6

Thailand 0.6 1.2 4.1 4.8 5.4 7.3

Bangladesh 9.0 6.2 5.7 4.6 6.1 5.3

Indonesia 6.1 5.2 6.3 5.9 4.2 5.0

Viet Nam * * 1.0 2.4 3.4 3.5

Others 12.9 14.1 11.1 10.2 9.8 9.2

Total 39.4 38.0 38.7 35.5 36.5 37.9

Cooked & PeeledIceland 17.7 16.9 15.3 13.4 12.3 12.5

Thailand 2.6 3.9 5.2 4.9 7.7 9.6

Denmark 5.4 6.6 6.9 6.3 6.7 6.7

Canada 4.9 4.5 3.9 2.6 3.5 3.3

Indonesia 2.4 3.1 2.6 2.8 3.3 2.8

Others 13.6 11.6 10.1 10.6 10.8 9.8

Total 46.6 46.6 44.0 40.6 44.3 44.7Grand Tot. 89.9 89.2 87.5 80.2 84.9 85.9


Ecuador gained the most from the growing shrimp import into France, supplying over 24 000 tonnes to the market last year, up 38% over 2009. India was second but its supply declined slightly in 2010. Viet Nam and Bangladesh signifi cantly increased their exports by 34% and 41% respectively. Shrimp imports into France totaled 114 600 tonnes last year, up 5.4% during the reporting period.

Italy, another major market in Europe, imported 73 800 tonnes, with supplies increased from major exporting countries except Ecuador. Imports from Argentina, Spain, Denmark and the Netherlands were up.

SHRIMP


SHRIMP

Asian countries did well last year in the German market led by Thailand. Thai exports increased by 7% followed by Viet Nam (+17.3%) and Bangladesh (3%). Overall shrimp imports into Germany increased 9.5% in 2010 amounting to 62 200 tonnes.

ImportsShrimp: France

2005 2006 2007 2008 2009 2010

(1 000 tonnes)

Shell-on coldwaterNetherlands 2.8 2.6 2.6 2.6 2.4 2.6

Denmark 2.2 2.3 1.9 1.5 1.7 1.3

Others 1.5 1.3 1.1 1.3 2.5 3.0

Total 6.5 6.2 5.6 5.4 6.6 6.9

Shell-on warmwater Ecuador 9.1 12.3 15.8 19.5 17.6 24.2

India 4.8 7.6 7.9 8.8 11.5 10.5

Madagascar 10.3 9.6 9.4 9.3 8.6 7.5

Thailand na na na na na 6.6

Vietnam 3.5 3.7 2.8 3.5 3.5 4.7

Spain na na na na na 4.5

Venezuela 0.6 1.7 3.6 3.7 3.9 4.5

Bangladesh 1.0 1.1 1.4 3.1 3.0 4.1

Colombia 2.2 2.4 3.7 4.6 5.7 4.1

Indonesia 6.7 5.7 4.3 4.2 3.6 3.2

Others 42.9 41.1 39.3 30.6 31.2 25.3

Total 81.1 85.2 88.2 87.3 88.6 99.2

Cooked & peeledThailand 1.4 1.5 2.3 2.0 3.5 4.0

Netherlands 2.6 2.7 2.5 2.6 2.6 2.8

India 0.4 0.8 1.3 1.3 1.6 1.9

Others 9.1 8.6 7.6 6.7 5.8 6.0

Total 13.5 13.6 13.7 12.6 13.5 14.7Grand Tot 101.1 105.0 107.5 105.3 108.7 114.6

Source: GLOBEFISH

ImportsShrimp: Italy

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Ecuador 14.5 18.1 19.0 20.4 21.8 21.4

Argentina 1.2 6.8 10.2 8.1 8.2 11.6

Spain 4.0 5.3 6.7 3.8 5.9 6.7

Denmark 6.9 7.3 7.4 6.5 4.7 5.0

Netherlands 3.6 3.5 3.2 3.0 3.8 4.9

Others 32.7 31.9 29.0 26.9 25.6 24.2

Total 62.9 72.9 75.5 68.7 70.0 73.8


ImportsShrimp: Germany

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Thailand 3.5 4.0 8.9 9.3 11.5 12.3

Viet Nam 3.3 4.0 5.7 8.1 9.8 11.5

Bangladesh 2.7 3.0 3.1 3.5 6.5 6.7

Netherlands 3.6 4.1 5.7 3.9 4.2 6.1

India 4.2 5.3 6.4 5.7 5.5 5.1

Belgium 2.5 2.8 2.6 2.0 3.5 4.0

Denmark 2.1 1.5 2.6 2.7 2.3 2.8

UK 3.0 3.1 2.5 1.6 2.1 2.7

Others 10.2 12.1 11.3 11.6 11.4 11.0

Total 35.1 39.9 48.8 48.4 56.8 62.2


ImportsShrimp: Denmark

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Greenland 81.4 84.0 78.1 77.1 71.5 70.6

Canada 31.7 37.4 43.2 26.8 17.3 16.8

Iceland na na na na na 2.4

Viet Nam 0.4 0.8 0.9 1.7 2.1 2.1

Faroe Islands 2.5 2.3 0.7 2.1 2.4 1.9

Thailand na na na na na 1.9

Bangladesh 0.9 1.2 1.7 1.3 1.5 1.6

Others 19.1 16.7 18.3 16.9 12.0 7.7

Total 136.0 142.2 143.0 125.8 106.8 105.0

Source: GLOBEFISH

ExportsShrimp: Denmark

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Sweden 15.0 18.5 19.3 18.6 19.0 19.4

Russia 28.7 27.3 38.0 30.3 19.8 14.1

UK 12.6 14.8 14.4 12.8 13.2 12.8

China 14.4 18.3 9.5 10.9 14.2 12.6

Norway 9.4 7.2 9.0 8.5 8.2 9.1

Germany 6.7 7.4 8.7 8.6 7.5 6.4

Netherlands 9.0 7.5 7.8 6.6 5.0 5.6

Italy 8.4 9.6 9.0 8.7 5.8 5.4

Others 48.8 52.3 49.6 49.4 46.4 48.4

Total 137.9 144.3 146.0 135.8 120.1 114.4

Source: GLOBEFISH


Meanwhile shrimp imports and exports in the Danish market posted negative growth in both directions last year. Shrimp imports, mainly from Greenland and Canada, declined slightly with lower supplies from these two sources. There was, however, indication that supplies from Asian countries, even though relatively small in quantity, posted positive growth.

Similarly, Danish shrimp exports also declined by 4.7%, totaling 114 400 tonnes in 2010. Exports from Denmark to major markets such as Sweden, Russia, the UK and China were lower.

Asia

Most of the East Asian markets showed strong growth in demand in 2010, supplied by domestic and regional sources. The 240 000 tonnes of shrimp imported into the Republic of Korea, China, Hong Kong Special Administrative Region, Malaysia, Thailand and Singapore in 2010, was 15% higher than 2009. More domestic supplies in China, Malaysia and Thailand were also marketed locally at good prices.

China’s shrimp imports bounced back in 2010 to 57 500 tonnes compared with 42 800 tonnes in 2009. Frozen shrimp dominated the imports with a total amount of 52 623 tonnes. Greenland and Canada were the suppliers of coldwater shrimp. From Asia, Thailand, Malaysia, India and Myanmar were the main suppliers. Import growth rate was higher for live and fresh shrimp compared with frozen products.

However, the Republic of Korea was the leading

shrimp import market in East Asia in 2010, with supplies increasing from 42 800 tonnes in 2009 to 57 500 tonnes in 2010.

In another development, reports indicate that the Indonesian government has extended the ban on the import of vannamei shrimp for health and disease related reasons. The ban will be extended at least up to the end of the fi rst semester of 2011. According to the Maritime Affairs and Fisheries Ministry, the ban is based on the scientifi c fi ndings of the World Organization for Animal Health (OIE), which pointed out that the shrimp carried 13 viruses harmful for the health of humans and other shrimp species.

Outlook

In Japan, the negative effects of the earthquake and subsequent tsunami are already being felt with retail sales lower compared with normal years. Overall consumption during April/May will be much lower this year against the planned sales volume. Japanese importers are not in a hurry to replenish stocks. Extremely limited demand from the distribution chain, particularly in Tokyo, will continue to infl uence Japanese importers’ future buying pattern. The higher import trend in January 2011 compared with the last four years is unlikely to be sustained during the rest of the year.

In the USA, demand for shrimp is likely to increase as summer approaches, but price direction may be downwards, as current prices are high and consumer resistance will come into play if higher prices are passed on.

USA USA USA USA USA USA USA

EU 25 (extra) EU 25 (extra)EU 25 (extra) EU 25 (extra) EU 25 (extra) EU 25 (extra) EU 25 (extra)

EU 25 (intra)EU 25 (intra)

EU 25 (intra) EU 25 (intra) EU 25 (intra) EU 25 (intra) EU 25 (intra)JAPAN

JAPAN

JAPAN JAPAN JAPAN JAPAN JAPAN

250 000

500 000

750 000

1 000 000

1 250 000

1 500 000

1 750 000

2004 2005 2006 2007 2008 2009 2010

SHRIMP VOLUME IMPORTED BY EU-27, USA AND JAPAN - JANUARY-DECEMBER (IN TONNES)

Tonnes

Comparison to 2009, in %

1 538 817 1 592 045 1 715 621 1 687 233 1 641 664 1 636 878

+5%

+2%

1 676 060

+2%

SHRIMP


Effect of Japan’s tsunami on tuna market uncertain

Tuna trade during the cherry blossom season in April and Golden Week in May will not be the same this year as the nation tries to cope with the huge natural disaster and plans the recovery process. The northeast coastal areas that make up nearly one fi fth of Japan’s large fi shing industry, including the important Sanriku pole and line albacore and skipjack fi sheries, are damaged beyond recognition. While most of the fi shing boats were destroyed by the tidal waves, many fi shermen also lost their lives in the tsunami.

TUNA

Tuna supply worldwide remained low during the fi rst quarter of the year with fl uctuating prices.

Captures in the Western Tropical Pacifi c were lower in the January-April period. Usually this would allow boat owners to increase prices, but at present they may be forced to accept lower prices for lower catches. Boat owners are also affected by sharp fuel price increases forcing a reduction in fi shing effort at the moment.

While there has been some increase in landings in the Eastern Tropical Pacifi c around Peru, these runs usually do not last long. Good catches in the ETP pulled skipjack prices down in early March, but a shortage of cold storage capacity in Ecuador delayed offl oading of raw material. Canneries in Ecuador were unable to benefi t from the drop as they were not able to purchase suffi cient quantities to take advantage of reduced prices. Spanish and French seiner fl eets are operating around the Seychelles, but Indian Ocean catches have been poor.

The internal turmoil in Côte d’Ivoire has affected raw material landings at local ports and the demand for

tuna of West African origin has fallen. This situation is signifi cantly affecting the tuna market in Spain.

Price

In April, the frozen skipjack price softened slightly for delivery to Thai canners at USD 1 500/tonne after reaching USD 1 600 a month ago. However, the situation in Japan is causing concern in the canning industry, although the effect of the tsunami on fi shing is still unclear. Albacore fi shing off the northeast coast is the main ground for pole and line fi shing in Japan and this has undoubtedly been badly affected. By mid March, the price of frozen albacore had risen to USD 2 800/tonne for delivery to Thailand.

Coldstorage holdingsTuna: Japan

Source: INFOFISH Trade News, GLOBEFISH AN 015000

Yellowfin

Bigeye

Albacore

Skipjack

Others

0

20

40

60

80

100

120

2002 2003 2004 2005 2006 2007 2008 2009 2010

1000 tonnes

TUNA NEWS

FARMED BLUEFIN

Libya has been the main source of Atlantic bluefi n tuna for the Mediterranean tuna fattening farms in recent years. As a result of the present political situation, supply from the Libyan bluefi n tuna industry could be impacted. However, the market is not expected to be affected in the immediate future as the Mediterranean catch quota for farming is low at present and the season only begins in mid March. If the situation remains unclear, the quota is likely to be caught elsewhere in the Mediterranean

Japan

General trend

Spring demand for fresh and frozen tuna in Kanto(greater Tokyo) and other parts of Japan is much lower


than in previous years. The annual cherry blossom festival Hanami at the beginning of April will be much more muted this year. Business in the catering trade plummeted following cancellations from foreign tour groups. Many high-end restaurant operators reported a 90% rate of cancellation for bookings during the festival celebrations.

Supply

Japan’s tuna landings, particularly from the coastal fi sheries, increased for yellowfi n, albacore and skipjack in 2010. Affordable prices, compared with expensive bluefi n and bigeye tuna, make these species popular in the retail trade. This year coastal supplies will certainly be lower than previous years. Although higher imports are forecast, the nation-wide austerity measures and deteriorated consumer sentiment could make for a negative market direction.

The usual spring rush has not taken place in the fresh and frozen sashimi market. Auction volume at the Tsukiji market is down as much as 70% compared with last year’s. Imports of air-fl own tuna have been much lower in April. Electricity rationing and lack of fuel have reduced the operating hours in the catering trade. Household consumption of sashimi tuna has declined, affecting sales at supermarkets. Many consumers are concerned about the health risks of buying pre-packed sashimi and sushi

tuna. Demand for dried katsuobushi products is better than for raw tuna at the moment. One Bloomberg report indicated a shift in consumer demand from fi sh to cheap meat, to avoid contaminated sea water.

Annual tuna imports in 2010

Following the trend of previous years, Japanese imports of high value bluefi n and bigeye tuna declined in 2010 but the market bought more yellowfi n (+10%), skipjack (+16%) and albacore (+168%) compared with 2009. Consumer demand has gradually moved towards cheaper tuna and tuna products because of the persistent downturn in the restaurant business, lower supplies worldwide and higher market prices.

During 2004-2010, supplies of air-fl own tuna shrank by nearly 40%; frozen tuna imports was also 34% lower during this period. On the contrary, frozen red-meat tuna loin imports showed an increase of more than 50%. These are mostly sold in supermarkets. To accommodate lower household budgets, supermarkets also offer smaller packs/trays of sashimi tuna to consumers.

LandingsTuna*: Japan

2004 2005 2006 2007 2008 2009 2010

(1 000 tonnes)

Bluefi n fresh 4.9 4.1 2.9 3.4 2.7 2.2 1.0

frozen 1.8 1.4 1.6 0.9 1.0 0.7 1.3

Bigeye fresh 11.7 9.4 14.8 11.9 9.3 7.9 5.6

frozen 23.1 22.3 20.8 20.0 20.4 17.9 17.5

Yellowfi n fresh 7.6 8.7 8.6 6.4 10.2 7.6 8.9

frozen 29.6 30.6 32.2 9.8 9.0 8.1 6.4

Albacore fresh 32.9 20.2 26.8 48.7 31.3 40.0 30.6

frozen 21.5 15.6 9.6 14.9 9.5 16.7 16.9

Skipjack fresh 58.9 95.5 79.0 72.9 76.0 43.3 68.2

frozen 133.3 246.5 220.2 224.2 208.0 200.9 212.6

Total 325.2 454.2 416.5 413.2 377.4 345.2 369.4

Source: MAFF, Japan; * including distant water catches

ImportsFresh/chilled tuna: Japan

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Yellowfi n 21.4 19.0 16.9 15.5 15.5 16.1

Bigeye 16.8 15.8 14.5 15.0 15.2 11.6

Bluefi n 9.9 7.4 5.1 4.4 5.8 4.0

S. bluefi n 2.5 1.8 1.2 1.2 3.4 2.1

Albacore 0.2 0.3 0.3 0.3 0.3 0.3

Skipjack 0.0 0.0 0.1 0.0 0.0 0.0

Total 50.9 44.3 38.1 36.3 40.2 34.1Source: National Statistics

ImportsFrozen tuna: Japan

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Yellowfi n 123.5 90.3 58.7 47.4 44.1 50.1

Bigeye 101.9 86.3 86.8 77.8 77.1 73.9

Skipjack 52 50.5 31.3 33.5 53.3 59.6

S. bluefi n 7.2 7.9 8.4 7.4 6.9 6.7

Albacore 6.1 6.2 6.0 8.3 8.5 23.2

N. Bluefi n 4.2 5.1 6.3 4.2 4.0 1.8

Total 295 246.3 197.5 178.3 193.9 215.3Source: INFOFISH

TUNA


TUNA

Total tuna imports including loins and fi llets into the Japanese the market were 278 023 tonnes in 2010 - higher than 2008 (246 108 tonnes) and 2009 (264 090 tonnes). Other imported tuna products not included in this total, were bushi or dried tuna (3 832 tonnes) and canned tuna (43 551 tonnes).

USA

Supported by improved household demand, US imports of non-canned tuna increased 3.4% in 2010 reaching 48 823 tonnes, consisting of fresh (air-fl own) and frozen dressed fi sh and, frozen loins/fi llets, against 45 081 tonnes imported in 2009. Frozen fi llets and loins had a 50% share in these imports at 23 152 tonnes.

Whole/dressed frozen tuna imports, meant for sashimi and non-canned tuna use were 43% lower compared with last year’s. However, this was only 4.5% of the total non-canned tuna supply from imported sources. Foreign supplies of fresh tuna (air-fl own), dominated by yellowfi n, remained stable with a marginal rise in supply. In comparison with 2009, the average import price increased by 10-15% for almost all tuna products in the market.

Canned tuna

Signifi cant developments took place in the global canned tuna market during the fi rst quarter of 2011. Three big US companies have started a major campaign to revive the domestic canned tuna market. In the UK, major retailers and canned tuna packers have committed to selling canned tuna produced from ‘pole and line’ caught raw material. The recent high tuna raw material price coupled with rising costs of fuel, tinplate and vegetable oil will be felt by the global canned tuna industry this year. The aftermath of the devastating earthquake and tsunami in Japan could also impact the canned tuna industry.

Revival in the market

To reverse negative trends in the US canned tuna market, three of the US’ largest canned tuna suppliers, Bumble Bee, Chicken of the Sea and StarKist have joined forces with the Thai Food Processors Association (TFPA) in launching a multi-million dollar marketing campaign from 17 January 2011. Called “Tuna The Wonderfi sh”, the campaign includes a series of nation-wide television and printed advertisements, internet coverage, and a public relations initiative.

US canned tuna consumption has been on the decline for several years dropping to 2.5 lb/capita in 2009 from a high of 3.4 lb/capita recorded in 2003. Industry players said that the timing of the campaign is appropriate given the current economic situation in the US. With increasing

ImportsTuna pouches: USA

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Thailand 19.7 18.6 16.5 19.3 16.5 21.6

Ecuador 13.6 15.6 10.8 13.5 11 13.3

Others 2.7 3.8 3.8 5.9 3.6 6.2

Total 36.0 38.0 31.1 38.7 31.1 41.1Source: NFMS: GLOBEFISH AN 11038

ImportsCanned tuna (excl. pouches): USA

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Thailand 77.4 74.3 66.1 64.7 78.8 96.8

Philippines 43.8 35.2 26.6 25.9 25.1 22.4

Indonesia 18.0 16.4 14.1 13.5 13.1 13.7

Ecuador 15.5 4.4 1.9 0.7 1.6 3.4

Others 14.3 22.2 25.3 27.8 23.4 23.3


ImportsFresh Tuna : USA

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Albacore 0.7 0.9 0.9 0.7 0.7 0.5

Yellowfi n 17.1 17.8 18.0 15.9 14.2 16.0

Bigeye 5.0 4.9 5.6 5.5 5.5 4.0

Bluefi n 1.7 1.1 1.1 0.4 0.4 0.5

Skipjack 0.0 0.1 0.0 0.0 0.0 0.0

Others 1.0 0.4 0.1 0.2 0.0 0.0

Total 25.5 25.2 25.7 22.7 20.8 21.3 Source: ITN

ImportsTuna loins: USA

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Thailand 8.7 12.5 7.8 14.9 10.1 26.8

Fiji 14.5 12.4 11.0 10.7 12.7 14.9

Trin & Tob 13.4 12.3 10.5 9.7 9.4 7.6

Ecuador 6.5 4.0 1.2 0.9 0.1 0.1

Others 3.6 9.9 13.3 9.0 16.4 16.4



food and oil prices, consumers are opting for value for money, eating more at home and looking for simple meal solutions. Canned tuna fi ts in well with consumer expectations.

With increasing production costs, however, heavily discounted price reductions by retailers are unlikely this year. According to industry sources, the growth in the US canned tuna market in 2010 was driven mainly by growing sales through retail stores in promotions and discounted

C&F pricesCanned tuna*: USA, EUROPE

* 48x6.5 oz Europe, 48x6 oz USA, chunk, origin ThailandSource: GLOBEFISH AN 11101, 11102

prices. Thus canned tuna imports in 2010 showed lower growth in value and higher growth in volume.

Last year canned tuna imports into the USA posted strong growth. Imports of all categories increased except for light meat tuna in oil, which declined 7% in volume but was up 4.9% in value. The strongest growth was recorded for canned albacore. Imports of the most popular product, light meat tuna in brine, also increased.

Thailand remained the largest supplier. Overall imports from ASEAN countries also increased. The strong

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

Jan-

04

Jul-0

4

Jan-

05

Jul-0

5

Jan-

06

Jul-0

6

Jan-

07

Jul-0

7

Jan-

08

Jul-0

8

Jan-

09

Jul-0

9

Jan-

10

Jul-1

0

Jan-

11

EUROPE USA

ImportsCanned tuna: France

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Spain 21.8 22.0 19.9 14.2 18.2 22.3

C. d’Ivoire 21.6 23.1 27.0 22.0 19.8 18.6

Seychelles 11.3 14.7 13.6 11.7 12.8 13.3

Ecuador 7.2 * 10.1 9.8 12.4 12.0

Ghana 6.5 * 5.2 5.3 5.8 7.7

Thalland * * * 5.1 9.6 7.6

Madagascar 14.7 15.4 10.9 5.6 8.2 5.5

Philippines * * * 2.6 5.6 2.6

Mauritius * * * 1.5 2.1 1.4

Senegal 4.3 1.1 1.7 1.3 1.8 0.8

Italy 8.0 8.9 3.5 2.3 0.3 0.2

Others 15.2 35.2 14.4 19.5 4.9 4.1

Total 110.6 120.4 106.3 100.9 101.5 96.1Source: GLOBEFISH AN 11030

ImportsCanned tuna: Germany

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Philippines 20.3 23.4 24.1 18.5 19.9 17.3

Papua NG 9.6 4.4 5.7 6.1 6.8 11.2

Ecuador 14.6 15.8 21.2 28.6 14.5 8.9

Indonesia 7.0 6.0 8.1 6.8 8.2 6.7

Netherlands * * * * 4.3 6.3

Thailand 11.5 18.1 11.9 8.2 4.3 4.2

Vietnam * * * * 4.0 3.3

Seychelles 6.6 6.7 2.1 4.4 1.2 3.2

France 5.7 2.2 1.1 0.9 0.8 0.3

Others 8.5 10.2 10.9 7.0 3.6 4.7

Total 83.8 86.8 85.1 80.6 67.5 66.1Source: GLOBEFISH

ImportsCanned tuna: UK

2006 2007 2008 2009 2010

(1 000 tonnes)Mauritius 25.9 27.8 27.2 22.9 28.8

Seychelles 32.0 23.9 16.7 19.7 14.5

Ghana 17.0 18.4 22.7 19.3 18.6

Thailand 16.9 14.9 14.6 16.8 13.6

Philippines 10.0 13.0 19.2 16.4 14.0

Ecuador 6.8 7.8 18.9 7.4 4.1

France 1.7 3.0 4.0 2.7 2.3

Spain 1.7 1.4 3.3 2.2 3.7

Maldives 1.9 2.2 1.0 1.0 1.2

Indonesia 0.9 1.7 1.4 0.7 1.5

Germany 1.7 2.7 2.0 1.1 1.8

Others 12.1 13.7 13.1 5.9 4.1

Total 128.6 130.5 144.0 116.1 108.2Source: GLOBEFISH AN 11050

TUNA


TUNA

import growth, however, does not necessary indicate a rise in consumer demand. Instead, it was mainly to fi ll the gap left by declining domestic production (US packs), particularly from canneries in American Samoa.

EU

At the beginning of 2011, the EU canned tuna market was rather quiet. Many buyers have not been active in the market but have closely watched the fast changing scenario in the global tuna market. Offers from packers have also been limited because of the shortage and price volatility of skipjack that ranged between USD 1 500-1 600/tonne in March, cfr Bangkok. At the same time canned tuna prices remained fi rm and offer prices received by German importers from ACP countries were around EUR 36.5 (USD 50.69) per carton (48x6.5 oz) for

ImportsCanned tuna: Italy

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Spain 37 36.7 39.7 39.6 38.1 41.5

Cote d’Ivoire 8.9 9.1 10.0 9.1 10.6 7.4

Colombia 7.0 5.0 6.6 10.5 8.9 8.0

Seychelles 7.0 6.9 3.9 5.5 6.4 7.1

France 4.6 3.4 5.3 5.0 4.9 0.6

Portugal 2.8 2.6 2.4 2.1 1.8 1.8

Others 4.2 5.8 9.0 12.0 12.8 13.8


canned solid tuna in sunfl ower oil, while chunk tuna was quoted slightly lower at EUR 35.5 (USD 49.30) cfr Hamburg (0% duty). It is possible that the price of canned tuna will increase in the near future as a result of increasing costs.

The market for cooked and cleaned frozen tuna loins remains strong, refl ecting the high prices of raw material during February.

Sustainability issues and controversy over the Interim Economic Partnership Agreement (EPA) between the EU and Papua New Guinea have created uncertainty in the market.

Recently, Princes, owned by Japanese giant Mitsubishi, and Asda, owned by Walmart, have committed to sourcing canned tuna only from pole and line fi sheries and FAD-free tuna by 2014. John West Foods has also committed to sourcing 20% of its canned tuna products

increased the proportion of pole-and-line caught tuna to 25% of their own brand canned tuna. However, it remains doubtful as to whether or not pole and line tuna fi sheries would be able to meet the increased demand, as they only contribute a small percentage of overall tuna catches.

Meanwhile, the Interim EPA that gives duty free status for canned tuna imported from Papua New Guinea, regardless of the origin of raw materials, has prompted protest from the EU tuna canning industry, particularly

ImportsTuna loins: Italy

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Ecuador 12.0 14.6 11.9 11.7 13.2 9.9

Thailand 1.3 3.2 4.4 2.3 8.7 5.2

Kenya 8.1 6.7 7.9 4.8 1.5 2.3

Colombia 14.3 9.7 7.0 5.4 2.0 1.4

Others 4.9 8.5 8.0 12.6 11.9 14.3


ImportsTuna loins: Spain

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Ecuador 8.8 16.0 13.2 22.4 28.7 25.7

Guatemala 6.6 2.2 0.0 1.5 5.7 8.7

El Salvador 13.2 10.9 14.8 12.4 13.1 7.6

Mauritius * * * * * 7.5

Thailand 1.9 0.0 2.9 3.5 6.6 5.6

China * * * * * 2.8

Portugal 1.2 1.4 1.5 1.0 0.9 0.4

Colombia 0.1 0.3 0.4 0.7 0.6 0.4

Others 4.0 6.7 5.7 4.7 13.3 7.4


from pole-and-line catch by August this year. Earlier this year, Sainsbury’s announced that they will source all tuna used as an ingredient in its readymeals, sandwiches, and several other products only from fi sheries using the pole and line method. Similarly, Tesco has also pledged that all its own brand canned tuna will be caught by the pole-and¬-line method by the end of 2012. Recently Tesco


from Spain. They are concerned that Papua New Guinea will become a hub for processing canned tuna from giant Asian packers such as the Philippines, Thailand and China that will fl ood EU markets and negatively impact canneries in Spain. However, looking at last year‘s EU trade data, this is not likely to happen in the near future. In 2010, the EU imported 18 288 tonnes of canned and prepared/preserved tuna (HS160414) from Papua New Guinea, 12.4% more than the previous year. However, this was only around 4% of the total 442 545 tonnes imported into the EU from third countries.

The EU imports of canned, prepared and preserved tuna posted negative growth of 5% to 442 545 tonnes last year from 465 832 tonnes in 2009, with fewer shipments coming from Asian countries. Imports from Thailand, the Philippines, Indonesia and Viet Nam showed declines of 8.7%, 21.3%, 20.3% and 15.9% in quantity respectively. Among the major suppliers, only Mauritius posted signifi cant growth, up 21.8% last year to 54 387 tonnes. Imports from Ecuador, the largest supplier of canned and prepared/preserved tuna to the EU, also showed a decline of 7.3% during the reporting period.

ExportsCanned tuna: Thailand

2005 2006 2007 2008 2009 2010

(1000 tonnes)USA 111.8 103.2 87.7 94.9 112.7 117.3

Egypt 25.0 34.1 25.1 34.6 39.8 51.5

Australia 33.0 32.6 33.3 39.7 32.4 41.0

Canada 28.8 29.7 26.4 28.1 30.8 28.8

Japan 28.6 26.3 25.7 28.3 24.3 23.5

Libya 25.2 27.6 28.8 33.8 33.7 20.5

Saudi Arabia 15.1 20.1 21.2 19.5 17.0 18.7

UK 16.6 19.7 13.4 15.8 17.0 13.9

South Africa 6.2 9.3 9.8 8.4 9.8 11.3

UAE 10.0 6.0 7.4

Syrian AR * * * 4.6 13.0 9.2

Chile * * * 4.3 4.6 7.6

Netherlands * * * 4.0 5.1 7.4

France * * * 6.2 9.4 7.4

Finland * * * * * 6.7

Yemen * * * * * 6.3

Papua N.Guinea * * * 4.3 3.6 5.5

Tunisia * * * * * 5.5

Germany 17.1 18.6 11.7 6.4 3.6 5.4

Poland * * * 4.4 4.4 4.9

Algeria * * * * 5.0 6.2

Jordan * * * * * 4.9

New Zealand * * * 4.8 4.4 4.9

Lebanon * * * * * 4.6

Italy 6.3 3.6 5.4 11.2 NA 4.4

Others 141.2 234.6 179.1 142.8 108.8 110.7


ImportsCanned, Prepared/Preserved tuna: Japan

2008 2009 2010

tonnes JPY Mill. tonnes JPY

Mill. tonnes JPY Mill.

Canned yellowfi n tuna

Thailand 16 234 8 781 15 025 6 718 14 481 5 975

Philippines 3 231 1 551 3 503 1 360 4 628 1 701

Indonesia 4 130 2 334 4 108 2 004 5 086 2 328

Vietnam 510 202 372 144 309 94

Total* 24 165 12 920 23 082 10 280 24 568 10 146

Canned skipjack/bonito

Philippines 498 221 287 128 235 84

Indonesia 3 109 1 963 3 432 1 736 3 082 1 483

Thailand 6 098 3 288 7 982 356 8 831 3 544

Total* 9 713 5 476 11 796 5 448 12 211 5 138

Others

Thailand 5 676 3 118 5 416 2 149 3 386 1 294

Philippines 865 472 1 097 436 1 630 698

Indonesia 552 340 427 189 385 148

Vietnam 2 511 1 347 1 887 883 1 155 541

Total* 9 868 5 437 9 080 3 808 6 772 2 801

Gr.Total 43 746 23 833 43 958 19 536 43 551 18 085

Source: Japan Customs / INFOFISH

* (inclunding others)

C&F PricesFrozen Skipjack: Thailand and Africa


4.5-7 lbs:

0

500

1000

1500

2000

2500


USD/tonne

Thailand

Africa

TUNA


TUNA

Tuna pricesLoins: Italy


Japanese demand for canned tuna is expected to increase in 2011

Following the radiation food scare and power shortages, demand for canned seafood, including canned tuna, is expected to increase as consumers have diffi culty keeping fresh and frozen products at home. Canned tuna shipments from Asian packers are expected to increase soon.

In 2010, Japan imported 43 551 tonnes of canned and prepared/preserved tuna worth JPY 18 085 million (USD 220 million). Thailand, the Philippines and Indonesia were the main suppliers taking almost a 96% share in total canned tuna imports. Last year, Thailand and the Philippines exported 26 698 tonnes and 6 493 tonnes to Japan respectively. Meanwhile Indonesia exported 8 553 tonnes, up 7.4% during the review period.

Market expansion continues for Thai products

Thai canned tuna exports increased in 2010, despite declining sales to some major markets. While exports to the largest market, the USA, increased, supplies to other traditional markets namely Canada, Japan, Libya and the UK declined. There were higher exports to Australia, Germany, Egypt and Saudi Arabia. New and non-traditional markets that imported more canned tuna from Thailand last year were Poland, Argentina and Chile.

Outlook

For the fi rst time in 62 years, the famous Ueno Park Cherry Blossom festival in Tokyo has been cancelled and celebrations in Osaka and Nagoya, with focus on fund raising for the victims of tsunami. Therefore, seasonal demand for sashimi tuna is expected to be much lower during April and May.

In the USA, the combined efforts of a number of companies to promote canned tuna should lead to growth

in this market, p a r t i c u l a r l y as economic recovery is still progressing very slowly. Thailand will hope to benefi t from this campaign and to further increase exports to the US as well as to new and non-traditional markets identifi ed last year.

E u r o p e a n countries may have to face an increase in the price of canned tuna as increasing production costs are passed on to consumers.

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00


EUR/kgYellowfin

Skipjack

Skipjack tuna2 421 679

50%Yellowfin tuna

1 141 08923%

Bigeye tuna, 403 771,

8%

Albacore, 198 654,

4%

Atlantic bluefin tuna, 26 349,

1%

Pacific bluefin tuna, 17 118,

0%Others,

683 815, 14%

Tuna production by species (2008)

Source: FAO


GROUNDFISH

Groundfi sh needs to focus more on value added products

The remarkable resurgence of groundfi sh, especially Atlantic cod, which will exceed one million tonnes in 2011 for the fi rst time in more than a decade, will be welcome in global markets. However, the groundfi sh industry needs to be creative in order to get the attention of consumers who are more interested in low prices than quality food. Figures provided at the VI North Atlantic Seafood Forum (NASF) in March showed that the supply of whitefi sh from fi sheries and aquaculture grew in 2010, increasing by 4.5% compared with 2009. Cod, Alaska pollock and hake were the main species contributing to this increase.

In 2010, total groundfi sh production around the world was estimated at 6.2 million tonnes round weight, while approximately 30% of the groundfi sh came from catch areas close to the EU (1.9 million tonnes). Of this, 50% is consumed in Europe.

There is also concern about how the recent tsunami in Japan will affect the groundfi sh sector, as Pacifi c cod is landed in northern Japan, including the Tohoku region north of Tokyo.

Another important consideration is the role China will play as whitefi sh supplier to EU. In 2010 740 000 tonnes round weight came from China. According to Kontali, between 2002 and 2003, Chinese Alaska pollock fi llet exports represented 40% of the market, with 35% coming from the USA and 25% from Russia, while during the 2009-

2010 period, China commanded 67% of the market, with US involvement reduced to 22% and Russia´s to only 11% of the market.

ImportsCod-like frozen groundfi sh: USA

2005 2006 2007 2008 2009 2010

(1 000 tonnes)

FilletsChina 89.8 91.3 74.5 71.0 74.8 74.6

Iceland 16.5 16 11.1 6.6 6.5 9.2

Canada 6.7 9.7 5.5 2.3 2.4 5.3

Norway 1.2 2.1 0.2 0.8 0.8 0.8

Others 8.9 9.0 6.4 5.9 4.7 10.8

Total 123.1 128.1 97.7 86.6 89.2 100.7

Blocks/SlabsChina 32.2 25.4 41.7 35.2 38.9 35.9

Russian Fed. 1.1 0.5 0.8 1.3 2.9 1.2

Norway 1.4 0.5 0.1 0.2 0.6 0.8

Argentina 2.9 2.9 2.0 2.3 1.4 0.7

Iceland 1.9 0.6 0.8 0.9 1.0 0.7

Canada 0.6 0.5 2.1 0.7 0.5 0.4

Others 2.6 2.0 1.7 1.4 1.4 1.8

Total 42.7 32.4 49.2 42.0 46.7 41.5Gr. Total 165.8 160.5 146.9 128.6 135.9 142.2

Source: NMFS

C&F pricesGroundfi sh blocks: USA

Source: GLOBEFISH AN 010805, 010806, 010834

More value added products

With more whitefi sh supplies available during 2011, companies will need to do more to attract the consumer’s attention by focussing on more value-added and ready-to-eat products, especially cod and haddock. Recently, Pescanova launched a new range of frozen fi sh, which is gluten-free, on to the market, one of the fi rst lines of fi sh products in Europe aimed at consumers with gluten intolerance and also a line of surimi noodles for the children’s segment. Findus is introducing similar products in France. During the second quarter they will launch a “family format” range of ready-prepared whitefi sh meals. According to Findus, innovation and a buoyant frozen fi sh sector will be signifi cant in 2011.

In Namibia, a new hake-processing plant has begun operating in Walvis Bay. Omankete Seafood Processors is a consortium of nine fi shing entities that has formed a joint venture with Seawork Fish Processors in a EUR 3 million project to produce value-added hake products, including

0.5

1.0

1.5

2.0

2.5

3.0

Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11

USD/lb

Cod

Alaska pollack

Hake


fi llets and portions for markets in Europe, Australia and the USA. The company expects to produce about 100 tonnes of fi nished products a month initially and to reach 250 tonnes a month over the next 18 months.

The lack of confi dence in the economic recovery has led consumers to buy more whitefi sh products for cooking at home as people are not eating out as often as in the past. Frozen products, which can be found in single portions or in larger packs, provide a versatile option for home use.

Wild whitefi sh versus farmed fi sh

Wild caught whitefi sh will not face increased competition from pangasius and tilapia this year, as production of these species is in decline at present. VASEP says that exports are likely to be reduced from 640 000 tonnes during 2010 to around 360 000 tonnes in 2011.

In the case of farmed cod, a production between 15 00 tonnes and 17 000 tonnes in 2011 is expected, a drop from the 20 000 tonnes produced in 2010. However, experts say farming will not be the solution for wild catch suppliers. According to Kontali Analyse, harvest volumes could drop to 12 000 tonnes in 2012. However, the Oslo–listed cod farming company, Codfarmers, reported improved fi gures for 2010, partly as a result of a recovery in the price of cod. Codfarmers production in 2010 was 6 255 tonnes, an increase of 2 237 tonnes over 2009. Meanwhile, during 2009 and 2010 stocks wild Atlantic cod have recovered well, a trend likely to continue in 2011. It presents an opportunity to promote wild groundfi sh products as a competitive and available alternative at reasonable prices.

EU market

In 2010 frozen cod imports to the UK increased by 7%, from 69 300 tonnes to 74 400 tonnes, with Norway as the second most important supplier (up 46%), after Iceland. However, import volumes still have not returned to the 100 000 tonnes or more that were imported in 2005 and 2006. Germany has also gained market share in the UK with a rise from 1 100 tonnes in 2009 to 6 300 tonnes in 2010, an almost 600% rise.

According to fi gures from the Norwegian Seafood Export Council (NSEC), French cod sales rose in 2010, with prices of frozen cod fi llets soaring 18.1%. French consumption of frozen cod fi llets amounted to 8 607 tonnes in 2010, 19.4% more than the year before. Consumption of fresh cod also increased, particularly in the fi rst half of the year, but fell back in the second half because of tight supply. Imports of frozen Alaska pollock fi llets increased to 39 600 tonnes in the same period, 5% more than in 2009. China remained the top supplier with 23 200 tonnes, (58% of the total), with imports from the

ImportsFrozen Alaska pollock fi llets: Germany

2005 2006 2007 2008 2009 2010

(1 000 tonnes)China 58.1 88.0 78.5 89.7 85.9 88.1

USA 47.0 39.4 55.2 53.4 30.0 36.3

Russian.F. 15.5 27.6 25.4 28.9 25.9 17.6

Others 3.0 6.1 5.3 4.9 6.4 4.5

Total 123.6 161.1 164.4 176.8 148.2 146.5Source: Statistisches Bundesamt

ImportsFrozen cod fi llets: Germany

2005 2006 2007 2008 2009 2010

(1 000 tonnes)China 8.3 8.1 12.2 12.1 4.6 9.7

Poland 2.1 1.4 3.8 2.2 2.3 5.2

Denmark 1.4 1.2 1.5 1.8 1.3 2.2

Norway 1.9 0.6 0.6 0.2 0.3 0.8

Russia 1.1 2.4 1.1 1.1 0.5 0.6

Iceland 1.0 0.5 0.3 0.2 1.0 0.6

Others 1.4 1.8 2.7 2.1 1.5 2.0


Russian Federation and the USA decreasing.

As far as the German market is concerned, frozen cod fi llets showed a signifi cant rise in imports in 2010, from 11 400 tonnes to 21 100 tonnes compared with 2009 (up 85%), with China and Poland as important suppliers.

The opposite situation can be seen in Spain. In 2010 export fi gures showed that the Norwegian contribution to Spanish cod imports fell to 13 000 tonnes.

Norway exported a total of 393 660 tonnes of groundfi sh last year, for a value of NOK 10.5 billion. This is the second best year ever recorded, with the top year being 1998. An upward trend in prices and increased quotas contributed to the good results. Exports of clipfi sh reached a new record of 97 350 tonnes, with Brazil now the biggest market for clipfi sh. Export volumes of salted fi sh and stockfi sh also increased in 2010, to 31 122 tonnes and 7 845 tonnes respectively.

Looking for profi tability

The Norwegian Institute of Food, Fisheries and Aquaculture Research (NOFIMA) will institute a new research programme in 2011 to look at the reasons why the cod industry in Norway has been under-performing

GROUNDFISH


with US observers onboard and US vessels, with Russian scientists aboard, in Russian waters.

In another development in March this year, WWF and the Russian Pollock Catchers Association have joined forces to improve the institutional regulation of Russian fi sheries, through a number of initiatives, including a national plan to combat IUU fi shing, the creation of a Fishery Improvement Plan (FIP) for the fi shery and preparing for talks that could lead to the establishment of a fund to fi nance improvements in monitoring and implementation of best practices.

USA groundfi sh stock allocation increases in New England for 2011

At the beginning of February, NOAA approved measures that will allow for the increase in catch limits for a number of groundfi sh stocks off the coast of New England. Lower limits were imposed in 2010 to enable some of these stocks to recover. The stocks affected are mainly yellowtail fl ounder, witch fl ounder and winter fl ounder, with increases ranging from 40% to 69%. In another announcement, NOAA, as a result of negotiations with Canada, increased the overall yellowtail quota to 2.5 million pounds, 18% more than the 2010 allocations.

Hake landings and markets in 2010

The most abundant groundfi sh species landed in Argentina in 2010 were hake (Merluccius hubbsi 277 506 tonnes) and hoki (Macro-ronus magellanicus 81 019 tonnes. These two species were also the major groundfi sh export species. During 2010 152 427 tonnes of hake were exported, worth USD 346.7 million, down 0.8% in volume but up by 1.7% in value compared with 2009. Hoki exports were 18 194 tonnes, worth USD 38 million. The main destination for Argentine seafood exports in 2010 was Spain, which took 90 890 tonnes worth USD 396.4 million.

ImportsFrozen Alaska pollock fi llets: France

2005 2006 2007 2008 2009 2010

(1 000 tonnes)China 14.3 18.6 18.6 21.7 22.2 23.1

USA 12.5 10.8 10.3 7.9 6.0 5.2

Russian Fed. 2.1 4.3 4.0 7.1 5.8 5.3

Germany 5.8 6.3 4.4 4.2 2.7 4.0

Others 1.4 0.8 0.7 0.6 1.0 2.0

Total 36.1 40.8 38.0 41.5 37.7 39.6Source: National Trade Statistics

ImportsFrozen cod: UK

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Iceland 14.8 16.1 18.0 14.2 19.3 16.8

Norway 9.0 14.0 11.4 12.0 9.3 13.6

China 16.5 23.2 21.9 21.4 13.8 13.5

Russian Fed. 36.9 13.0 4.1 3.9 6.5 7.5

Germany 1.3 1.9 4.5 3.7 1.1 6.3

Denmark 16.7 16.9 12.4 9.0 7.3 5.9

Faroe Is. 4.9 6.5 4.4 4.9 4.6 5.0

Poland 1.3 6.5 3.6 3.8 3.9 2.2

Others 7.1 8.2 6.0 6.0 3.4 3.6

Total 108.5 106.3 86.3 79.0 69.3 74.4Source: Seafi sh/national trade statistics

over the past few years and to try to identify measures that will make the sector more profi table. Although both exports and prices of cod increased in 2010, export prices are still nearly 10% lower than they were 10 years ago. The research programme will look at the economic factors affecting the cod sector, as well as regulation governing its operation. One of the goals is to fi nd equitable regulation that will allow for sustainable harvesting and increase the market value of wild cod stocks.

Higher Russian Pollock TAC likely in 2012

Recent scientifi c surveys undertaken by TINRO, the Russian Pacifi c Fisheries Research Centre confi rm that most of the regional pollock stocks are in reasonable condition and some are even growing. This will enable the 2012 pollock quota to be increased by 100 000 tonnes, compared with the 2011 forecast. The quota for all Russian pollock stocks this year is 1 649 400 tonnes.

TINRO will join with scientists from the USA to develop a 3-year program to study the resources of the northwest region of the Bering Sea. The program will allow Russian research vessels to work in US waters,

ImportsFrozen hake fi llets: Germany

2005 2006 2007 2008 2009 2010

(1 000 tonnes)USA 3.6 4.4 6.1 6.3 7.2 4.8

Argentina 5.8 6.9 6.1 3.5 5.1 2.3

Peru 4.1 4.1 4.1 3.7 4.2 4.4

Namibia * * * * 2.7 2.5

Sudafrica * * * * 1.5 0.4

Chile. 2.0 2.2 1.0 1.5 0.8 0.0

Russian Fed. 6.2 0.2 0.0 0.0 0.0 0.0

Others 7.1 6.6 4.5 5.6 2.2 0.8


GROUNDFISH


The German market for Argentine frozen hake fi llets declined in 2010, from 5 100 tonnes to 2 300 tonnes Other suppliers such as USA, Namibia and Chile also lost market share. The total amount of German imports of frozen hake fi llets was 15 200 tonnes, a reduction of 35%, from 23 700 tonnes in 2009. Italian imports of Argentine frozen hake remained much the same as in 2009, about 11 000 tonnes. Spain almost doubled its presence in this market, growing from 4 600 tonnes to 7 000 tonnes in 2010, compared with the previous year.

Chilean landings of hake species in 2010 were slightly higher overall in 2010 than in 2009, according to the latest report of the Fisheries and Aquaculture Sector by the Subsecretariat of Fisheries (Subpesca). Up to December 2010 southern hake landings were 23 800 tonnes, 2.2% lower than in 2009 (24 346 tonnes), with the industrial fl eet landing the largest volume (13 000 tonnes) and artisanal fl eet landing 10 700 tonnes. Subpesca also reported that landings of common hake last year totalled 46 900 tonnes, a rise of 6.9% over 2009 (43 821 tonnes).

A study led by researchers at the University of Oviedo (Spain) has found that 38.9% of hake consumed in Spain is mislabelled. DNA studies showed that the labels misreported either the name of the species or its geographical origin. The most common error was to label hake caught off the African coast as being of American or Eurpean origin, and thus able to be sold at a higher price than cheaper African varieties.

Outlook

According to Kontali Analyse, global groundfi sh supplies have considerably increased during the fi rst two months of the year, especially in the case of Alaska pollock, with landings of 90 000 tonnes or approximately 15% of quotas in the fi rst two months of 2011, compared with the same period in 2010. The supply of Atlantic cod showed a considerable increase as well, while the supply of saithe went down by 30% (17 000 tonnes) compared with the January-February period in 2010.

At the same time haddock stocks in Norwegian and Russian waters have more than tripled over the past decade. This is the result of responsible management of this fi shery and good environmental conditions.

Authorities in Argentina announced that catch quotas for hake for the opening season of 2011 will be 193 000 tonnes and for hoki, 150 000 tonnes. However, up to 28 March, only 33 392 tonnes of hake had been caught, an 18.9% decrease on the amount caught in 2010. The hake fi shery in the Common Fishing Zone between Argentina and Uruguay will now be closed from 1 April to 21 June.

Namibia is facing a crisis in its hake fi shing sector, as the Minister of Fisheries and Marine Resources has refused to grant an extra quota for hake for the current season, which ends at the end of April. Some processing companies will have to lay off workers as there is not suffi cient raw material to continue operations. The current exchange rate is also having a negative impact on prices. However, the new season will begin in May and it is expected that scientists will recommend an increased quota.

Groundfi sh markets will benefi t in 2011 by reduced pangasius exports from Viet Nam.

GROUNDFISH

ImportsFrozen hake: Italy

2005 2006 2007 2008 2009 2010


Spain 6 6.3 5.3 4.6 4.6 7.0

Uruguay 4.7 5.8 4.6 4.0 3.4 5.6

S. Africa 6.4 4.8 4.4 5.5 5.6 5.0

Namibia 2.7 2.4 1.7 2.8 3.0 4.0

Chile 0.4 0.2 0.2 0.4 1.4 1.4

Peru 0.0 0.0 0.0 0.4 0.0 0.1

Others 2.0 2.3 2.8 2.7 2.3 4.8


GROUNDFISH NEWS

SURIMI WAKES UPThe Spanish National Association of Manufacturers of Canned Seafood (Anfaco-Cecopesca) reports that exports of surimi products from Spain increased 25% during 2010, reaching 3 500 tonnes with the main destination being other EU markets. According to Anfaco, during 2010, 176 100 tonnes of prepared, canned or semi-canned fi sh and shellfi sh were imported, mainly from the American continent, of which 11% of the total was surimi, or close to 20 000 tonnes. In Spain, the surimi sector is waking up after a quiet period. ‘Antonio y Ricardo’ (Confremar), a group from Madrid, has purchased production facilities in Vigo. In addition, the Lithuanian company Viciunai, one of the European leaders in surimi production, will start production at the former Multi-Prosur facilities in Cantabria.

Alaska pollock, 2 650 351

31%

Hake, 1 128 783,

13%

Haddock, 332403,

4%

Saithe, 456 455,

5%

Cod, 1 162 679,

14%

Whiting, 1 415 487,

17%

Others, 1 361 790,

16%

Groundfish production by species (2008)

Source: FAO


Octopus supply tight, squid improving

Tight supplies affected trade in 2010, especially for octopus. Imports into all the major markets declined, and prices edged upwards. For squid, supplies were better, and the outlook for 2011 is good. The cuttlefi sh market is quiet, with stable volumes and slightly increasing prices.

CEPHALOPODS

Octopus

Japan’s imports of octopus fell again last year, from a total of 56 200 tonnes to 44 700 tonnes. The main determinant for this trade seems to be availability, as the octopus fi shery off the coast of Morocco and Mauritania has gone through a series of diffi culties in recent years.

Wholesale pricesOctopus: Japan

Source: INFOFISH Trade News, GLOBEFISH AN 10507

ImportsOctopus: Japan

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Mauritania 19.5 16.6 14.0 12.6 26.5 16.2

Morocco 8.7 8.7 10.3 10.9 13.8 10.8

China 9.9 8.2 7.2 6.7 5.5 9.4

Viet Nam 5.6 5.5 4.8 5.5 3.7 3.4

Spain 6.2 4.0 1.8 2.7 3.0 1.8

Thailand 3.0 1.9 1.8 1.2 1.4 1.0

Others 2.6 3.5 6.9 5.1 2.3 2.1

Total 55.5 48.4 46.8 44.7 56.2 44.7China

Of Japan’s total import volume of frozen octopus, as much as 27 000 tonnes or 60% were imported from Morocco and Mauritania, a fi gure that shows a decrease of 33% over that recorded in 2009. Thus both Morocco and Mauritania registered declining exports of octopus to Japan in 2010. Meanwhile, China exported 9 400 tonnes of octopus to the Japanese market, which was 70% more than in 2009. The other main exporters of octopus to Japan (Viet Nam, Spain and Thailand) all registered declines in volumes shipped.

The average unit price of the octopus from Morocco and Mauritania went up between 2006 and 2008, but collapsed in 2009 and recovered somewhat last year. After the global fi nancial crisis of 2008, the average unit price dropped to JPY 500 (USD 6.00) in 2009, and a year later rose to JPY 573 (USD 6.80). Now it is anticipated that during 2011, the upward trend will continue.

Tight supplies also affected other markets. Both Spain and Italy imported lower amounts of octopus in

0

2

4

6

8

10

12

14

16

Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11

0.3-0.5 kg/pc

2.0-3.0 kg/pc

USD/kg

Monthly octopus prices, whole, frozen, in Spain, Origin: Morocco

Source: EPR

6.00

8.00

10.00

12.00

14.00

16.00

18.00

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

EUR/kg

T2

T8

2010 than in 2009. In the case of Italy, imports fell by 14%, to 47 200 tonnes. Morocco and Mauritania, which are normally the main suppliers, suffered signifi cant declines in their exports to Italy, by 43% and a massive 66%, respectively. Spain, on the contrary, increased its exports to Italy by some 25%.

In Spain imports from Morocco fell by 17% while imports from Mauritania fell by 59%. Imports from Mexico, Portugal and Senegal increased slightly.


Squid

The squid fi shery off the coast of Argentina in 2010 was another disappointing season, with 84 409 tonnes landed in Argentinean ports. This is a little better than the very poor season in 2009 but still a big drop from the 225 000 tonnes caught in 2008. Following the opening of the season in January 2011, the squid fi shery is reported to be quite good this year. The size of the squid caught varies, most of it being small to medium size, but it is expected that larger squid will beginning to appear as the season progresses.

According to reports, the value of squid harvested off Argentina peaked at USD 2 236/tonne in November last year, an increase of 90.1% over the same period in 2009.

ImportsOctopus: Italy

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Spain 8.4 8.5 6.9 8.2 7.7 9.6

Morocco 9.1 11.7 12.3 14.5 16.2 9.2

Mexico 3.3 2.8 4.6 2.2 3.1 5.8

Viet Nam 3.8 5.6 3.3 4.5 4.3 4.3

Indonesia 1.7 * 2.5 4.0 2.8 4.1

Senegal 4.7 3.7 4.2 3.4 4.9 2.9

Mauritania 5.4 3.4 2.5 1.4 6.6 2.2

Tunisia 2.7 1.9 2.0 0.8 1.0 1.9

Thailand 3.3 3.4 2.4 2.8 2.8 1.2

Others 6.3 10.2 7.4 9.1 5.5 6.0


ImportsOctopus: Spain

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Morocco 18.2 20.2 19.6 23.2 20.0 16.6

Mauritania 2.8 4.9 4.9 4.5 9.2 3.8

China 1.3 2.8 1.6 1.8 3.7 3.0

Mexico * * * * 0.9 2.5

Portugal 1.9 1.4 1.7 2.2 1.1 1.9

Viet Nam 0.7 1.9 2.2 1.6 1.7 1.7

Senegal 2.0 0.5 0.5 0.6 0.9 1.1

Others 9.9 8.6 8.8 8.7 5.8 5.6


In California, squid is becoming an important species in the state’s fi shing industry. Once thrown overboard or used as bait, squid have steadily become the largest commercial fi shery in California, surpassing salmon and other more traditional fi sheries. In 2009, slightly more than 100 000 tonnes were landed with a value of USD 56.5 million.

The total quota for 2011 was set at 118 000 short tons (about 107 048 tonnes), and it was expected that this would soon be reached and the fi shery would be closed by the end of March.

International trade in squid was very mixed last year. Japan had stable import quantities, at around 59 000 tonnes. There were some movements among the suppliers, though. China, Thailand and the USA increased their exports to Japan, while Peru, in particular, registered a drop in exports to Japan.

ImportsSquid: Japan

2005 2006 2007 2008 2009 2010

(1 000 tonnes)China 28.9 28.9 30.2 26.1 23.7 26.6

Thailand 9.2 7.6 8.1 7.1 6.8 7.6

USA 7.7 4.6 5.4 3.9 4.0 6.3

Viet Nam 5.9 7.0 6.8 5.5 5.5 5.4

Peru 3.3 4.8 7.8 12.8 10.4 4.8

India 1.8 1.9 1.0 1.2 1.3 2.1

Korea Rep. 0.3 0.4 0.9 0.8 0.4 1.0

Taiwan PC 0.6 0.3 0.4 0.2 0.0 1.0

New Zealand 3.3 1.4 3.3 0.9 1.4 0.5

Morocco 0.2 0.8 0.2 0.2 0.4 0.4

Argentina 2.0 5.6 10.4 6.3 3.0 0.4

Others 1.1 2.6 2.6 2.8 2.2 3.3

Total 64.3 65.9 77.1 67.8 59.1 59.4Source: GLOBEFISH AN 10437, *) included under others

The USA is not only a growing producer of squid, it is also becoming an important market for this commodity. In 2010, US imports of squid increased by 18.5% to 66 500 tonnes. The main supplier by far was China, accounting for over half of total imports. Other major suppliers include the Republic of Korea, India and Taiwan Province of China.

On the European market, Spain and Italy are the largest importers. Both countries registered signifi cant increases in imports in 2010, perhaps as a substitute for

CEPHALOPODS


ImportsSquid: USA

2005 2006 2007 2008 2009 2010

(1 000 tonnes)China 25.6 32.9 28.8 27.7 26.1 37.4

Rep. Korea 3.0 2.8 3.1 5.4 5.9 5.4

India 6.1 8.2 4.5 6.9 3.8 5.1

Taiwan PC 4.7 5.6 5.9 5.4 6.9 4.5

Thailand 7.1 7.4 7.2 8.2 4.7 4.1

New Zealand 3.8 2.2 2.5 1.0 1.0 3.1

Peru 1.7 1.7 0.1 2.0 3.2 2.8

Others 6.0 8.4 10.3 8.5 4.5 4.1


the declining octopus imports. Italy increased total squid imports by 15.6%, to 100 000 tonnes. Spain,increased imports by even higher amounts reaching 47.3% or 167 500 tonnes.

Cuttlefi sh

Cuttlefi sh imports were quite stable last year, with practically no change in the main markets. Japan, Spain and Italy all imported more or less the same amounts as in 2009. Supplies were relatively stable, with India being the main supplier.

Squid and cuttlefi sh prices have developed differently over the last seven or eight years. Cuttlefi sh prices have been on an upward trend since 2001, while squid prices stagnated in 2004 and have been relatively stable since then. However, in 2010 they started to climb.

ImportsSquid: Italy

2005 2006 2007 2008 2009 2010

(1000 tonnes)Spain 28.8 30.3 25.2 22.1 27.4 29.2

Thailand 20.5 21.2 22.8 23.4 22.4 20.7

India 3.3 3.8 2.9 3.5 4.1 9.3

S. Africa 5.4 5.0 3.7 3.7 4.8 5.2

Argentina 7.6 8.9 10.7 10.0 4.7 4.1

Peru 6.4 3.4 3.4 0.9 2.5 1.7

New Zealand 1.6 2.3 0.1 0.1 0.0 0.0

Others 21.5 22.8 32.8 23.2 20.6 29.8


ImportsSquid: Spain

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Falkland/Malv. 48.0 42.4 40.3 45.6 34.2 51.3

China 7.0 8.1 6.4 6.7 14.1 30.1

Argentina 46.6 83.6 61.3 54.4 28.1 23.3

India 20.1 18.2 12.8 15.5 15.1 22.3

Peru 3.7 1.8 4.5 1.2 3.0 12.5

Morocco 3.7 4.5 1.4 3.3 4.0 5.0

South Africa 5.0 4.0 3.5 4.5 3.7 4.6

USA 3.6 3.9 1.7 2.2 1.5 3.2

Others 18.0 14.7 13.9 17.0 10.0 15.0


ImportsCuttlefi sh: Japan

2006 2007 2008 2009 2010

(1 000 tonnes)Thailand 12.5 11.5 8.3 7.5 6.9

Viet Nam 4.7 5.1 4.5 4.0 3.9

Morocco 3.5 3.9 2.2 2.8 3.2

Malaysia 2.2 1.6 1.7 1.9 1.8

Korea Rep. 0.4 0.3 0.6 0.8 0.5

China 1.5 0.4 0.1 0.0 0.0

Ghana 0.2 0.5 0.0 0.0 0.0

Others 3.1 2.6 2.3 2.0 2.7

Total 28.1 26.0 19.7 19.0 18.9

ImportsCuttlefi sh: Italy

2005 2006 2007 2008 2009 2010

(1 000 tonnes)France 7.0 5.9 6.7 5.6 3.7 6.3

Tunisia 2.7 3.1 5.1 4.1 3.5 5.5

Spain 5.2 4.8 3.7 4.6 5.3 4.5

Senegal 3.0 2.2 2.4 1.9 2.3 2.2

Morocco 0.7 1.1 0.8 1.0 2.9 1.9

Viet Nam 5.0 1.7 0.8 1.0 0.6 0.7

China 0.8 0.5 0.1 0.6 0.7 0.6

India 5.8 2.9 0.9 0.7 0.7 0.5

Thailand 4.9 1.6 0.3 0.2 0.5 0.2

Others 15.5 9.1 5.9 5.5 4.3 4.1


CEPHALOPODS


CEPHALOPODS

Outlook

The prospects for a better squid season off Argentina this year are hopeful. Price indications are still uncertain although the price remains stable and has not yet dropped down to the usual pre-season low. Much will depend on the US dollar exchange rate. Octopus prices are also expected to remain higher this year.

ImportsCuttlefi sh: Spain

2005 2006 2007 2008 2009 2010

(1 000 tonnes)India 17.1 19.8 18.1 16.8 20.1 18.8

Morocco 6.3 11.3 10.1 12.1 12.8 13.2

China 7.3 8.0 5.1 6.4 6.7 4.4

Mauritania 3.2 3.2 3.6 2.5 2.9 2.0

Ghana 2.2 2.3 2.0 1.5 1.5 1.9

France 5.4 5.1 6.7 3.8 0.6 0.8

Yemen * * * * 0.8 2.8

Vietnam * * * * 0.6 0.9

Others 11.7 14.2 12.2 8.1 3.0 5.0


Wholesale pricesCuttlefi sh, squid: Japan

Source: INFOFISH Trade News, GLOBEFISH AN 10501, 09

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0


USD/kg

Squid **

Cuttlefish *

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0


USD/kg

Squid

Prices Domestic fl ying squid: Japan

Source: INFOFISH Trade News, GLOBEFISH AN 10501, 09

* whole 10 kg/block, 0.4-0.6 kg/pc; ** whole 7.5 kg/block, 21-25 pc/kg;

Squid 77%

3 562 779

Octopus, 8%

376 711

Cuttlefish, 7%

302 453

Cephalopods nei 8%

359 285

Cephalopods production by species (2008)

Source: FAO


Tilapia demand continues to grow

Global demand for tilapia continues to grow both in international and in domestic markets. Prices are expected to be higher in 2011 with demand fi rm, rising processing costs and a balanced supply. Exports from China in 2010 grew 25% in volume reaching 321 885 tonnes. Besides the major markets of the USA and Mexico, increased exports went to the African region and to EU markets. Fillets continue to be the major growth contributor while demand for whole fi sh remains fi rm. The US imported more than 200 000 tonnes of tilapia with nearly 75% supplied by China.

TILAPIA

Supply

The Chinese government has introduced a minimum wage so that processing costs in China are already beginning to rise. These costs will eventually be passed on to consumers. Therefore prices of tilapia are likely to be higher in 2011. Chinese tilapia production in 2010 is not expected to exceed 1.2 million tonnes.

While China’s fi sh processing industry continues to depend on imported raw material, exports of locally farmed tilapia expanded worldwide with 322 000 tonnes of sales last year, mostly consisting of raw fi llets and some breaded products (76%). Nearly half of China’s tilapia exports went to the US market. Whole frozen tilapia prices have grown by 55% since 2006.

Demand is expected to expand further in the Chinese domestic market as the government continues to develop the transportation infrastructure in the country. Last year, a leading producer and distributor of tilapia took on a national project to establish the transport of tilapia by train from the southern China to the northern provinces.

ExportsTilapia: China

2006 2007 2008 2009 2010

quantity (1 000 tonnes)frozen whole 46.9 14.0 12.7 33.1 75.7

other tilapia 133.9 201.2 211.7 226.0 264.1

Total 180.8 215.2 224.4 259.1 321.8

value (million USD)frozen whole 50.0 16.3 20.0 48.2 125.9

other tilapia 353.5 474.6 713.6 662.0 878.3

Total 403.5 490.8 733.6 710.2 1 004.2

Unit value USD/kgfrozen whole 1.1 1.2 1.6 1.5 1.7

other tilapia 2.6 2.4 3.4 2.9 3.6

Total 2.2 2.3 3.3 2.7 3.1Source: GLOBEFISH/INFOYU

Higher production, however, is reported from Brazil, which anticipates a production of close to 200 000 tonnes in 2010. Much of the local production is channeled to the domestic market. With the stronger Brazilian currency (the Real), it is much more viable to sell to the domestic market where consumption is growing than to export. The Brazilian currency strengthened by nearly 33% from its high in late 2008. The government is also encouraging the aquaculture industry.

Meanwhile, according to the Agriculture and Livestock Ministry (MAG), tilapia production in Paraguay registered the highest growth rate in the region’s history (200% since 2003). This is line with the national plan, one focus being the improvement of the domestic and foreign markets for local aquaculture products. Domestic distribution is increasing with national supermarket chains now offering the species to consumers.

The Nowegian group, Genomar reported a huge loss last year following high mortalities at its tilapia farm in Malaysia. This has disrupted supplies of raw materials for export processing and has pushed prices up. Its China-based hatchery was also affected by fl oods last October.

USA

NMFS reported that 215 378 tonnes of tilapia were imported into the market last year compared with 183 000 tonnes the year before. China supplied some 74% (worth USD 843 million) of these imports, which are dominated by frozen fi llets, followed by Taiwan Province of China, Indonesia and Ecuador. Latin American countries contribute the largest supplies of fresh tilapia fi llet with Ecuador, Honduras and Costa Rica taking the leading positions. Ecuador exported 17% less in 2010 compared with 2009. Supplies of fresh fi llets also increased from Honduras and Costa Rica.

Much greater supplies are also noted from Thailand, from 288 tonnes in 2009 to 2 241 tonnes last year. With importers intending to promote the fi llet segment during the Lent season, imports are expected to remain strong in the coming months to meet demand.


Wholesale priceTilapia fi llets: USA

Source: Oil World, GLOBEFISH AN 11702, 11706

*) origin South America; **) origin China

ImportsFresh Tilapia Fillets: USA

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Ecuador 10.6 10.9 11.9 8.5 9.1 7.9

Honduras 6.6 7.3 7.9 8.3 6.5 7.2

Costa Rica 3.7 2.7 4.8 5.6 5.7 5.8

Brazil 1.0 1.0 0.2 0.5 0.3 0.3

El Salvador 0.3 0.2 0.3 0.5 0.5 0.3

Taiwan PC 0.0 0.0 0.0 0.6 0.2 0.2

Others 0.5 0.9 1.1 2.1 2.1 1.9


ImportsWhole Frozen Tilapia: USA

2005 2006 2007 2008 2009 2010

(1 000 tonnes)China 30.9 40.5 32.5 29.0 29.7 22.9

Taiwan PC 24.1 18.3 13.5 15.9 13.2 16.3

Thailand 0.2 0.6 0.2 3.3 0.9 1.2

Panama 0.5 0.4 0.1 0.3 0.1 0.2

Indonesia 0.2 0.3 0.0 0.2 0.0 0.0

Others 0.6 0.7 0.6 0.9 0.3 0.3

Total 56.5 60.8 46.9 49.6 44.2 40.9Source: GLOBEFISH, *) included under others

ImportsFrozen Tilapia Fillets: USA

2005 2006 2007 2008 2009 2010

(1 000 tonnes)China 44.1 63.3 87.5 87.2 100.7 135.5

Indonesia 6.4 7.1 8.6 9.6 8.8 10.2

Taiwan PC 3.1 3.1 2.6 2.1 2.3 2.2

Thailand 0.9 0.2 0.0 0.4 0.7 1.1

Viet Nam 0.4 0.0 0.1 0.0 0.2 0.2

Panama 0.2 0.2 0.2 0.4 0.3 0.2

Others 0.5 0.5 1.6 0.9 1.9 1.3


Reportedly, fresh seafood prices, including those of tilapia are higher in supermarkets. According to a report by Perishables Group, tilapia prices in US supermarkets were 14.2% higher than in January 2010. Over the January to December period last year, frozen tilapia fi llet prices (ex-warehouse, New York) moved up by 18% while fresh tilapia prices have strengthened by 5% since January 2010.

The economic crisis has taken a toll on the US market for high value fresh/chilled (air-fl own) tilapia fi llet as consumers switched to the cheaper alternative - frozen fi llet. The dwindling demand for fresh/chilled tilapia fi llet was refl ected in the declining imports of this category for the last two consecutive years. Imports of fresh/chilled tilapia slipped further in 2010 by 20% compared with the peak level of 2008.

The combined value of US imports of tilapia and pangasius in 2010 crossed the USD 1 billion mark confi rming the continued growth in demand for tropical food fi sh, particularly fi llets, in the market.

ImportsTilapia (by product form): USA

2006 2007 2008 2009 2010

(1 000 tonnes)Whole frozen 60.8 46.9 49.6 44.2 40.9

Frozen fi llets 74.4 100.6 100.6 114.8 150.8

Fresh fi llets 23.1 26.2 29.2 24.4 23.7

Total 158.3 173.7 179.4 183.4 215.4Source: GLOBEFISH

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5


USD/lb

frozen**

fresh*

TILAPIA


Europe

Tilapia’s popularity is growing at a slower but still steady pace in the EU market. Imports of fi llet into the EU-27 were nearly 19 000 tonnes last year, 85% of which originate from China. Indonesia supplied about 1 500 tonnes followed by Thailand and Viet Nam. Poland remains the single largest EU market for tilapia fi llet with close to 7 000 tonnes of imports last year followed by Spain, Germany and the Netherlands. Imports are likely to be higher in 2011 as market growth remains good. For EU consumers, tilapia is certainly a cheaper alternative to the coldwater white fi sh varieties.

TILAPIA NEWS

REGAL SPRINGS INDONESIA FARM GETS TILAPIA STANDARDRegal Springs Tilapia Group’s Indonesia farm has now been certifi ed under the new standards created by the tilapia aquaculture dialogues. The farm is the second in the world to be certifi ed by the International Standards for Responsible Tilapia Aquaculture (ISRTA). The fi rst was Regal Springs’ tilapia farm in Honduras, which was certifi ed in October 2010. The tilapia aquaculture dialogues were led by the World Wide Fund (WWF) and industry stakeholders as part of the Aquaculture Stewardship Council initiative (ASC). As the ASC has not set up its verifi cation scheme yet, the ISRTA standards were developed under an agreement between the WWF and GlobalGap to allow aquaculture operations to be audited in the meantime. Under the agreement, the aquaculture dialogue standards are added on, in their entirety, to the GlobalGap standards. Regal Springs Tilapia is the world’s largest producer and importer of tilapia fi llets to the USA. It started as a small venture in the early 1990’s amidst ancient spring waters in Central Java, Indonesia. The company now has more than 6 000 employees and production sites across Honduras, Indonesia and Mexico. The Swiss-based Institute for Marketecology (IMO) conducted the audit, issuing the certifi cate for GlobalGAP and a letter of compliance for the ISRTA. IMO also carried out the auditing for Regal Springs’ Honduras farms last year. As part of the latest audit, Regal Springs’ processing plant in northern Sumatra was also awarded GlobalGAP certifi cation and a Chain of Custody certifi cation. The ISRTA assesses farms on seven environmental and social impacts principles. These are: compliance with local, regional and national laws; conservation of natural habitat and local biodiversity; conservation of water resources; conservation of species diversity and wild populations; responsible use of resources; proper management of fi sh health and welfare in an environmentally responsible manner; and social responsibility toward workers and communities Source: INTRAFISH

Source: elaborated from National Trade Statistics

Unit valueTilapia exports: China

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2004 2005 2006 2007 2008 2009

other tilapia

Average

frozen whole

USD/Kg

ImportsTilapia: PolandYear COUNTRY Month tons USD2010 CHINA 1 521 1 275 017

2 764 1 950 736

3 858 2 269 012

4 594 1 654 455

5 425 1 210 229

6 370 1 047 888

7 371 1 052 853

8 393 1 092 408

9 726 1 981 722

10 650 1 781 810

11 518 1 441 359

12 597 1 765 072

CHINA Total 6 786 18 522 561

Outlook

The minimum wage introduced by China is one factor that will keep the price of tilapia high in 2011. Another factor is that land for aquaculture in China is becoming more diffi cult to obtain and thus supply is unlikely to increase markedly. However, a programme offered by the Chinese government to encourage re-stocking after the fl oods in October 2010 by subsidizing the cost of fi ngerlings by as much as half has given rise to predictions that 2011 production will exceed that of 2010. Demand will continue to be strong. Even if increased prices are passed on to consumers, tilapia will still be a cheaper option than cod or salmon.

TILAPIA


Asian countries look to pangasius for domestic consumption as Viet Nam’s exports crumble

Viet Nam remains the main supplier of pangasius catfi sh in international trade despite cutbacks in 2011 production. However, aquaculture production of pangasius is developing in other Asian countries as well, contributing largely to domestic food security programmes. Worldwide demand for imported pangasius fi llet remained stable with minor declines in the traditional markets supplied by Viet Nam. Export price increased from Viet Nam as a result of a shortage of raw material.

PANGASIUS

Viet Nam

Stringent import requirements imposed by some markets in Europe, Asia and Latin America have restricted export access for Viet Nam - the world’s largest producer of pangasius catfi sh. According to VASEP (Viet Nam Association of Seafood Exporters and Producers ) aquaculture production of pangasius totaled 1.2 million tonnes in 2010. In January 2011, VASEP established minimum farm-gate and export prices for pangasius fi llet at USD 1.00/kg and USD2.80/kg FOB respectively. A supply shortage this year pushed up raw material prices to USD 1.19-1.24 per kg in the Mekong Delta.

ExportsPangasius: Viet Nam

2007 2008 2009 2010

(1 000 tonnes)EU 172.8 224.3 224.1 221.9

Russia 48.7 118.2 39.5 30.3

Ukraine 23.0 74.4 37.7 na

Asean 33.8 34.0 43.5 41.6

China & HK 18.2 18.5 19.4 23.7

USA 21.2 24.2 41.6 55.7

Mexico 14.3 23.2 31.1 39.3

Egypt 6.3 26.6 26.1 26.5

Others 48.7 97.6 144.7 204.7

Total 387.0 640.8 607.7 659.3

Source: VASEP

EU

The combined EU imports of pangasius fi llet from Viet Nam fell slightly (-3.5%) to nearly 210 000 tonnes in 2010, according to Eurostat. Spain remained the largest market but import dropped by 6% totaling 50 000 tonnes. There were also lower imports in most of the EU markets compared with 2009.

ImportsFreshwater Fish from Viet Nam: EU

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Spain 10.0 22.0 33.6 44.7 52.2 49.1

Germany 7.3 12.1 16.3 24.8 35.3 31.4

Poland 3.8 23.5 39.8 44.1 27.5 20.9

Netherlands 6.0 21.6 29.6 32.9 25.5 27.3

Romania 0.0 0.0 0.2 3.9 12.0 13.8

Italy 2.7 7.6 11.3 15.9 11.7 10.2

Belgium 6.7 9.8 9.3 12.9 11.4 9.8

UK 0.2 0.9 2.0 4.2 7.2 8.6

France 0.1 0.9 2.7 4.3 4.8 4.9

Czech Rep 0.0 0.5 1.4 3.1 4.6 3.6

Lithuania 0.0 0.4 1.0 2.6 3.5 2.2

Others 2.2 4.8 8.1 13.6 20.2 26.4

Total 38.9 104.0 155.3 207.0 215.8 208.2Source: EUROSTAT

Pangasius production is expected to be lower during the fi rst quarter of 2011. Coupled with heavy losses incurred by businesses and low farm-gate prices last year, some 30% farmers have left the pangasius industry, reported industry sources in Viet Nam.

VASEP has predicted a drastic drop in exports in 2011 compared with 2010, down from 640 000 tonnes to 360 000 tonnes.

Prices offered by the EU market rose by nearly 30% by the end of last year. The tight supply situation and ceiling price imposed by VASEP has pushed prices up further by 13% as of April this year.

USA

Total catfi sh imports including pangasius and channel catfi sh (Ictalurus) increased to 62 385 tonnes last year, up 6.3% from 2009. Supplies from Viet Nam accounted


‘Panga’ Catfi sh fi llet prices, cfr Spain

Source: EPR

PANGASIUS

Last year, the Ministry of Marine Affairs and Fisheries (MMAF) in Indonesia enforced a new regulation on fi shery imports to protect consumers from sub-standard imported products and trade related frauds. The regulation requires imported fi shery products to be accompanied with health and country of origin certifi cates from the exporting country’s competent authority. For frozen fi sh including fi llets, the maximum glazing allowed is 20%. Imported pangasius fi llet often carries the name “dory” and in some cases the glazing is as high as 40% without any mention of the net product weight on the packaging label.

Some regulatory measures have been also adopted in Brazil for imported fi shery products.

Outlook

With lower production expected in 2011 in Viet Nam this year, the market will remain tight with fi rmer prices. New supplying countries are adding production targeting both domestic markets and export destinations, but the impact in the short term will be limited.

PANGASIUS NEWS

USDA ANNOUNCES PROPOSED RULE FOR THE INSPECTION OF CATFISH AND CATFISH PRODUCTS

The US Department of Agriculture (USDA) announced a proposed rule requiring inspection of catfi sh and catfi sh products by USDA’s Food Safety and Inspection Service (FSIS). USDA is proposing these regulations to implement provisions as required by the Food, Conservation and Energy Act of 2008, also known as the 2008 Farm Bill. The 2008 Farm Bill amended the Federal Meat Inspection Act making catfi sh an amenable species under the Act, thereby requiring that all catfi sh undergo inspection by FSIS. In addition, the Act takes into account the conditions under which catfi sh are raised and transported to processing establishments as part of the new inspection programme.The 2008 Farm Bill requires the Secretary of Agriculture to defi ne the term “catfi sh” for this new inspection programme. The proposed rule provides two options for the defi nition of catfi sh and seeks public comment on the issue. One option is the current labeling defi nition in the 2002 Farm Bill, which includes all species in the family Ictaluridae. The other option is to defi ne catfi sh as all species in the order Siluriformes, including the three families typically found in human food channels, including Ictaluridae, Pangasiidae, and Clariidae.The proposed rule describes the new requirements that will apply to catfi sh produced in or imported to the US. Among these requirements is that products labeled as “catfi sh” must bear either the FSIS mark of inspection or a mark of inspection from the country from which it was exported. The proposed rule also describes how FSIS will inspect US catfi sh farms as well as transportation from farms to processing establishments, as required under the 2008 Farm Bill. In this regard, FSIS will focus on factors affecting the safety of the product being produced, such as water quality and feed. The proposed rule anticipates a transition period during which domestic and international operations will come into compliance with the catfi sh inspection programme.Once the catfi sh inspection programme rules are issued in fi nal form, FSIS will follow-up by announcing the implementation dates for key provisions in the rule.

for about 80% of the total catfi sh imports into the US market. However, channel catfi sh, which account for 9% of total US catfi sh imports, declined by 32%, largely supplied by China. Imports of pangasius from China, in contrast, increased by 25% compared with 2009. Supplies from Thailand, Malaysia and Indonesia, although minor, declined because of better trade opportunities in the domestic fresh fi sh markets.

The US domestic catfi sh market continues to struggle amid growing imports. Restaurateurs and retailers are resisting any price increase while the recession is still taking its toll. Supplies from the domestic catfi sh industry are also expected to be reduced this year.

Asia and beyond

The Association of Southeast Asian Nations (ASEAN) is the third largest import market for Vietnamese pangasius fi llet; overall ASEAN imports fell by 4.7% in 2010, although imports increased marginally into the Singapore and Malaysian markets. Higher imports were also seen in Hong Kong Special Administrative Region, Republic of Korea and India from Viet Nam.

ImportsCatfi sh: USA

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Viet Nam 8.6 18.0 16.6 24.2 38.7 49.2

China 1.7 7.6 9.9 12.5 10.4 8.1

Thailand 1.5 3.4 5.6 5.6 6.2 3.5

Malaysia 0.5 2.9 0.4 0.1 0.5 0.3

Others 1.3 2.5 2.4 1.9 2.9 1.3


2

2.5

3

3.5

Jun-07 Nov-07 Apr-08 Sep-08 Feb-09 Jul-09 Dec-09 May-10 Oct-10 Mar-11

Fillets - interleaved, 10% glaze, skinless, boneless, belly-off

Fillets - IQF, white, 20%, 1kg poly bag

USD/kg


Seabass and seabream impress Russia

In 2010, producers in Mediterranean countries scaled back operations because of tighter access to credit and uncertain demand. This will result in lower output in 2011 causing the current price to rise. The question remains as to what will happen when the new season begins during summer.Demand has been resilient despite the economic diffi culties facing great parts of the European market. Seabass and seabream remain attractive products and the growing popularity in new markets including northern Europe and Russia will balance the dependence on traditional markets in southern Europe.

EUROPEAN SEABASS AND GILTHEAD SEABREAM

Italy: Europe’s leading market still growing

Italy’s market for bass and bream products continues to grow. It has always relied on imports for most of its supply but domestic producers have also contributed a signifi cant share to overall consumption. National production, however, has been stagnant for many years at around 16 000 tonnes as domestic producers struggle to compete with larger and more effi cient producers in Greece and Turkey. As a result Italian producers are targeting the higher paying segments of the market.

Imports last year grew by 15% in volume and a substantial 24% in value, thanks to higher market prices during the year. Despite the economic crisis, the two species are still considered to be relatively inexpensive and are sold in mainstream supermarkets at between EUR 6 and EUR 9 per kilo. Penetration in the restaurant segment is almost complete with most restaurants offering bass and bream on the menu. The potential for increasing consumption in Italy, therefore, is more linked to increased consumption by the consumers that already buy the species than by improved distribution.

ProductionSeabass (Dicentrarchus labrax): World

2006 2007 2008 2009 2010 2011*

(1 000 tonnes)Greece 40.0 43.0 48.0 42.0 40.0 38.0

Turkey 30.0 33.0 35.0 32.0 30.0 33.0

Italy 9.1 10.0 9.0 9.0 8.0 7.0

France 5.6 5.0 4.0 4.0 4.0 4.0

Spain 8.9 11.0 11.0 10.0 8.0 7.0

Egypt 2.1 3.0 2.0 2.0 2.0 2.0

Croatia 1.6 2.0 2.0 2.0 3.0 3.0

Portugal 1.4 2.0 2.0 2.0 2.0 2.0

Tunisia 0.5 1.0 1.0 1.0 1.0 1.0

Others 0.6 1.0 1.0 1.0 1.0 1.0

Total 99.8 111.0 115.0 105.0 99.0 98.0Source: FAO/AQUAMEDIA (for 2007and 2008), (*) Provisional

Production Seabream (Sparus aurata): World

2006 2007 2008 2009 2010 2011*

(1 000 tonnes)Greece 60.0 72.0 90.0 88.0 83.0 82.0

Turkey 22.5 28.0 32.0 31.0 28.0 31.0

Spain 20.2 23.0 25.0 25.0 21.0 18.0

Italy 8.9 9.0 9.0 9.0 8.0 7.0

Egypt 3.0 3.0 3.0 3.0 3.0 3.0

Israel 2.8 3.0 3.0 3.0 3.0 3.0

Portugal 1.6 2.0 2.0 2.0 2.0 2.0

Croatia 1.0 1.0 1.0 1.0 1.0 1.0

France 2.2 2.0 2.0 2.0 2.0 2.0

Others 2.8 3.0 3.0 3.0 3.0 3.0

Total 125.0 146.0 170.0 167.0 154.0 152.0Source: FAO/AQUAMEDIA (for 2007 and 2008), (*) Provisional

ImportsFresh Seabream and Seabass: Italy

2008 2009 2010 2008 2009 2010

( 1 000 tonnes) (million Euro)

Seabream

(dentex/pagellus)

Greece 1.4 1.2 1.1 7.6 5.5 5.6

Total 2.0 2.1 2.0 12.2 14.7 14.9

Seabream

(gilthead)

Greece 14.1 14.5 17.2 44.7 54.5 73.6

Turkey 1.9 2.0 2.2 5.7 6.4 8.1

Total 18.3 19.1 22.6 61.2 75.3 100.9

SeabassGreece 9.8 18.4 16.7 44.3 51.6 73.7

Turkey 3.6 4.4 2.3 26.6 15.3 8.3

Total 16.4 19.1 21.7 88.4 86.1 102.4Gr.Total 36.7 40.3 46.3 161.9 176.1 218.2Source: ISTAT


However, there are a few segments that are relatively uncovered, such as the more mountainous areas of the Appenines, but this holds for fi sh consumption in general, except for smoked and conserved varieties, and possibly trout. Another segment is frozen products. As the frozen food sector increases in popularity in Italy, with the addition of better quality and prestige products, more frozen bass and bream products are likely to come on the market.

Greece remains the dominant supplier of seabass and seabream, followed by Turkey. Some of the Turkish product is imported through Greece so the market share represented by Greece is somewhat exaggerated. The average import price from Greece and Turkey varies quite substantially, with Greece receiving prices about 20% higher. In part, this could refl ect bigger average sizes.

The outlook for the Italian market over the next quarter is positive with relatively good balance between supply and demand. Despite economic concerns, demand should not suffer much. The new generation fi sh is not expected to come to market until the summer months but quantities are somewhat uncertain. Producers reduced output in all the major supplying countries in 2010. For 2011 reduced volumes are likely in the fi rst half of the year.

Spain: diffi cult domestic market leads producers to look towards imports

Spanish consumers have been reluctant to spend over the last few of years as the economic situation is uncertain with unemployment edging towards 20%. Surprisingly enough, import volumes of both bass and bream rose slightly in 2010, probably as a result of Spanish consumers looking for less expensive alternatives to the domestic production.

PricesSeabass and Seabream: Italy

Source: EPR; GLOBEFISH AN 10512, 10514fresh whole 300-450 gr/pc, origin Greece

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00


EUR/kg

Seabass

Seabream

France: stable volumes

Import volumes were stable in 2010 whereas import values increased 13%. Higher average import prices curtailed consumer enthusiasm but the French market remains an important one for Greek producers in particular, with Spanish suppliers also active. The French processing industry is innovative in looking for new products, and frozen portion size fi llets have recently been introduced successfully.

ImportsSeabream and Seabass: France

2008 2009 2010 2008 2009 2010

(1 000 tonnes) (million Euro)

Seabream

(dentex/pagellus)

Greece 0.7 0.5 0.6 2.5 2.1 2.9

Total 1.3 1.4 1.5 4.8 5.2 5.8

Seabream

(gilthead)

Greece 4.6 5.2 4.6 15.8 18.8 20.4

Spain 1.5 1.9 1.4 5.4 7.2 6.6

Total 6.4 7.4 6.9 22.4 27.5 30.3

SeabassGreece 2.9 3.1 3.4 14.4 14.1 16.9

UK 0.2 0.2 0.3 0.8 1.8 2.1

Total 4.4 4.8 5.2 22.9 23.5 27.6Gr. Total 12.1 13.6 13.6 50.1 56.2 63.7Source: French national statistics

ImportsSeabream and Seabass: Spain

2008 2009 2010 2008 2009 2010

(1 000 tonnes) (million Euro)

Seabream

(all species)

France 1.1 0.4 0.3 1.0 3.2 2.9

Greece 5.6 8.5 8.2 25.5 30.8 34.7

Morocco 0.5 0.4 0.3 3.4 1.6 1.6

Total 8.6 9.5 9.7 33.0 39.7 43.0

SeabassFrance 0.5 0.4 0.4 6.1 4.6 3.8

Greece 4.0 3.6 4.6 22.8 15.4 19.5

Morocco 0.1 0.1 0.1 2.0 0.6 0.4

Turkey 3.6 2.5 2.4 7.7 9.5 8.9

Total 8.7 6.9 7.5 43.3 36.4 34.0Gr. Total 17.3 16.4 17.2 76.3 76.1 77.0Source: Spanish national statistics




UK: cautious consumers add to market uncertainty

One of the positive developments in bass and bream consumption over the last few years has been the growing popularity in selected northern European markets. The UK, in particular, has been a well-developed market for bass, which is known from domestic wild fi sheries. Bass import volumes grew 10% in 2010 whereas bream volumes were stable. The outlook for the UK market is dependent upon consumer sentiment and, with a foreseen reduction in purchasing power, the immediate outlook for bass and bream consumption is not overly positive. Import volumes in 2011 will probably remain at 2010 levels, close to 8 000 tonnes, depending on price developments.

Germany: small but growing

One of the newer markets for bass and bream is showing good growth. Although the two species are not traditionally known to German consumers, increased travel and interest in Mediterranean cuisine underpin consumption. Volumes reached almost 2 500 tonnes in 2010 and although not particularly large, they provide a welcome outlet for Mediterranean producers trying to

diversify away from an overdependence on traditional markets in southern Europe. Outlook for 2011 is positive although the price conscious German market will react if prices go too high.

Outlook

During the last year the market was fairly balanced, however, the outlook for the rest of this year is uncertain. Diffi cult access to credit in both Spain and Greece will limit production increases in 2011, especially during the fi rst half of the year. In Turkey, however, production will reportedly grow in 2011, with domestic Turkish demand strong thanks to the buoyant state of the Turkish economy.

During the current quarter, after some early hesitation, the market has fi rmed. Prices will remain fi rm with increases expected for bream in particular over the next quarter until the new production reaches market size in early summer.

The restructuring of the European bass and bream sector is likely to continue with leading Spanish producer Culmarex now up for sale, as the group’s new owner has chosen to concentrate on its salmon business.

UK seabream imports

(1 000 tonnes)

2008 2009 2010

Greece 1.4 0.9 0.9

Netherlands 0.4 0.5 0.6

France 0.3 0.4 0.3

Italy 0.3 0.2 0.1

Morocco 0.2 0.0 0.0

Others 0.0 0.2 0.2

Total 2.5 2.2 2.3

UK seabass imports(1 000 tonnes)

2008 2009 2010

Greece 2.5 1.9 2.8


Italy 1.1 0.5 0.1

France 0.9 0.5 0.4

Others 0.0 0.7 0.4

Total 5.6 5.0 5.5

Souce: National Statistics

ImportsFresh Seabream and Seabass: Germany

2008 2009 2010

(tonnes)

Seabream

(dentex/pagellus)

Greece 332 388 461

Total 584 532 586

Seabream

(gilthead)

Greece 489 385 947

Italy 120 92 159

France 50 163 69

Total 844 840 947

SeabassGreece 196 281 380

Italy 45 111 252

France 171 133 133

Total 621 722 900Gr.Total 2 049 2 094 2 433Source: National statistics


Impressive popularity of seabass and seabream in Russia continues

According to restaurant chefs in the Russian capital, everybody is interested in seabass and seabream. Even if they are not on the menu, chefs are requested to prepare them. However, this seldom happens because most restaurants in Moscow, even those serving traditional Russian cuisine, offer either seabass or seabream or both, thus following popular demand.

The constantly increasing demand for seabass and seabream has been acknowledged by all distributing companies and restaurants. A few years ago these species were regarded as premium products but today seabass, seabream and even black cod are found on the menus of restaurants not only in Moscow but also in the regions. Good taste, convenient portion size and reasonable price are some of the factors that make these species attractive to Russian consumers.

Source: FAO 2008

Position of seabass and seabream in the TOP-30 imported fi sh and seafood products in by value to Russia in 2010

ProductsCustoms value of goods

2009 2010

place share RUB place share RUB

Seabass (Dicentrarchus Labrax) *32 0.3% 152 497 188 20 0.6% 345 884 881

Seabream (Sparus Aurata)**30 0.3% 157 593 222 21 0.6% 338 731 274

* Fresh or chilled except fi llets and meat of fi sh of 0304 position, liver and roe.

** Fresh or chilled, except fi llets and meat of fi sh of 0304 position, liver and roe.

Gilthead seabream 65%

140,838

European seabass, 35%

75,266

Seabass and seabream production (2008)

The statistics of fi sh and seafood imports (group HS 03 – fi sh and crustaceans, mollusks and other aquatic invertebrates) in Russia in 2009/2010 was analysed and the products ranked according to customs value. Seabass and seabream moved upward as indicated in the table above. The customs import value of fresh and chilled seabass increased from RUB 153 million (EUR 3.8 million) in 2009 to nearly RUB 346 million (EUR 8.6 million) in 2010, and its import position went up from 32nd to 20th place. The import value of seabream also doubled. The customs import value of fresh and chilled seabream grew from RUB 158 million (EUR 3.9 million) in 2009 to RUB 339 million (EUR 8.4 million) in 2009, moving from 30th to 21st place.

Source: Fishnet.ru at

SEABASS AND SEABREAM NEWS

SPAIN: SUBSIDIARY OF NIREUS INVESTS HEAVILY TO INCREASEPRODUCTION

Predomar’s (Preengorde de Doradas para Maricultura S.L.) latest expansion of its facilities will allow it to produce 25% more seabass and seabream, after an investment of EUR 1 million. The manager of the aquaculture fi rm, Carlos Llorens, recalled that the project began in 2008 and expects it to be completed during the fi rst quarter of 2011. The total investment amounts to around EUR 2.5 million, reports El Almería. Currently, the farm located in Carboneras can produce up to 12 million units of seabream and seabass. After the enlargement, the company expects to be able to cultivate around 15 million fry. “With regards to pumping, a new tank has been installed that will distribute water to the entire plant, as well as a powerful fi ltration system than can reduce emissions from disposals,” he said. Last year, Predomar - which is owned by the Greek company Nireus - ended the year with a turnover of EUR 5.5 million, 22% more than in 2009 (EUR 4.5 million). At present, Predomar markets its seabass and seabream to national aquaculture companies in order to continue with the fattening phase of the fry. “Overall, our market is in Murcia, Valencia and the Canary Islands,” stated the businessman. With regard to the crisis in the sector, Llorens admitted that it is affecting them as much “as everyone,” but emphasized the support from its parent company in Greece, which will “guarantee continuity.” Source: FIS.COM



Salmon production in 2010 less than half in Chile

Chilean production of Atlantic salmon in 2010 will probably be less than half of the levels registered in previous years. The available fi gures for harvests show that up to November 2010 there was a 54% reduction in aquaculture output. A similar trend is observed in coho salmon (-51% up to November), and to a lesser extent, in trout (-21% in the same period). Trout is consolidating its leading position after the ISA virus spread among Atlantic salmon, and currently accounts for nearly 40% of all salmonid production. According to preliminary fi gures, total production of salmon and trout in 2010 totaled 287 500 tonnes, 22% below total production in 2009.

SALMON

As already mentioned in previous issues, the industry has gone through stringent transformations, which are expected to place it on the road to a sound recovery. However, the new structure has been criticized already by the coho salmon and trout producers as having higher production costs. Nevertheless, some companies are aiming to double production in 2011, while others consider the Chilean salmon sector as set for a longer term recovery, with higher production, and a recovery of profi tability. Some forecasts, such as the one stated by representatives of the industry at the North Atlantic Seafood Forum, expect that the 2007 level of output will be reached by 2013.

Lower supply refl ected in lower exports, while trade directions shift

The lower availability of raw material was refl ected in a 20% drop in exported volumes, totaling 297 200 tonnes of salmon and trout sold to foreign markets. It is important to note that trout has surpassed Atlantic salmon as the main exported species, accounting for 42% of total volumes traded, and an even higher share in total exported value (44%). Overall exports of salmon and

trout fell 2% in terms of value, totaling USD 2 061 million, following increases in average unit prices (of +21.5% for Atlantic and Coho salmon, and of +19% for trout).

Perhaps more noteworthy is the shift in the direction of trade. Japan is still the main destination both in volume and value, with 144 000 tonnes worth USD 909 million. However, Latin America is now placed second, above the US, in terms of quantity, with 50 640 tonnes against 45 200 tonnes. However, the situation is the opposite in terms of value, while US purchases fell 20%

Salmon fi llet prices (FOB Miami, chilled, C-trim, Alt. fresh, 3-4 bs)

ProductionFarmed salmon: World

2006 2007 2008 2009* 2010*

(1 000 tonnes)

ATLANTIC SALMON

Norway 600 725 790 880 860

Chile 370 355 360 180 90

UK 125 140 145 150 155

Canada 115 110 110 120 125

Faeroe Is. 13 20 25 30 35

Australia 16 20 20 20 22

Ireland 15 15 15 15 18

USA 10 12 12 15 18

Others 3 3 3 5 5

Total 1 267 1 400 1 480 1 415 1 328

PACIFIC SALMON

Japan 10 10 10 10 10

Chile 115 120 113 120 125

Canada 10 8 7 7 8

New Zealand 10 10 10 10 11

Total 145 148 140 147 154

Gr. Total 1 412 1 548 1 20 1 559 1 482Source: GLOBEFISH AN 12201

* estimate

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11


to USD 448 million, 20% growth in purchases from Latin America to USD 347 million was not enough to surpass the US market. Interestingly, Latin American demand is driven by Brazil, which represents 76% of total trade in quantity. The region has become an important market for Chilean salmon, helped by strong economic performance, which is translated in a higher purchasing power. After Japan, Latin American markets showed a lower reduction in traded volume (-11%). Another difference is that, while Japan is focused on trout and coho salmon, Brazil demands

Exports (quantity)Salmon and Trout: Chile

2008 2009 2010 2008 2009 2010

1 000 tonnes million USDJapan 163 153 144 708 825 909

USA 108 69 45 795 554 448

EU (25) 43 25 9 284 160 72

Lat.America 53 57 51 268 290 347

Others 79 65 49 335 273 285

Total 446 369 297 2391 2101 2061Source: Boletín de Exportaciones del IFOP

Exports (quantity)Salmon and Trout: Chile

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Salmon 309.0 291.5 284.7 320.8 270.2 170.9 Frozen 201.7 201.7 183.4 212.4 195.8 115.8

Fresh 98.5 85.0 94.4 100.8 65.3 49.1

Canned 5.0 3.5 3.2 3.4 2.7 1.1

Salted 0.6 1.3 0.8 0.9 3.7 2.4

Smoked 2.5 2.6 2.9 3.3 2.7 2.5

Trout 74.7 93.3 111.1 124.8 99.1 126.2 Frozen 67.9 86.1 103.2 115.8 88.3 107.4

Fresh 0.7 1.0 3.1 5.5 5.9 12.7

Canned 3.6 0.2 0.2 0.2 0.1 0.1

Salted 2.0 1.8 0.9 0.1 1.5 3.0

Smoked 0.5 4.2 3.7 3.3 3.3 3.0

Total 383.7 384.8 395.8 445.6 369.2 297.2Source: Boletín de Exportaciones del IFOP

Exports (value)Salmon and Trout: Chile

2005 2006 2007 2008 2009 2010

(million USD)Salmon 1 369 1 695 1 715 1 797 1 507 1 159 Frozen 854 1088 1015 1085 997 691

Fresh 455 578 636 643 436 408

Canned 30 20 22 21 18 9

Salted 3 8 52 6 21 15

Smoked 24 31 37 42 35 36

Trout 352 484 523 594 594 902 Frozen 305 428 463 527 504 744

Fresh 3 8 19 32 42 101

Canned 33 1 1 1 1 1

Salted 10 9 4 1 8 19

Smoked 1 39 36 34 39 39

Total 1 721 2 179 2 238 2 391 2 101 2 061Source: Boletín de Exportaciones del IFOP

Exports (unit value)Salmon and Trout: Chile

2005 2006 2007 2008 2009 2010

(USD/kg) Salmon 4.4 5.8 6.0 5.6 5.6 6.8 Frozen 4.2 5.4 5.5 5.1 5.1 6.0

Fresh 4.6 6.8 6.7 6.4 6.7 8.3

Canned 6.0 5.8 6.7 6.2 6.7 8.1

Salted 4.4 6.1 7.0 6.7 5.5 6.3

Smoked 9.8 11.6 12.7 12.7 13.0 14.3

Trout 4.7 5.2 4.7 4.8 6.0 7.2 Frozen 4.5 5.2 4.5 4.6 5.7 6.9

Fresh 5.0 6.2 6.1 5.8 7.1 7.9

Canned 9.0 6.1 5.5 5.0 7.3 9.3

Salted 4.7 4.8 4.9 10.0 5.7 6.2

Smoked 5.2 9.2 9.8 10.3 12.0 12.8

Average 4.5 5.7 5.8 5.4 5.7 6.9Source: Boletín de Exportaciones del IFOP

ImportsSalmon: Japan

Fresh Frozen2008 2009 2010 2008 2009 2010

(1000 tonnes)Atlantic 20.0 20.7 20.0 4.4 5.0 1.1Norway 15.6 18.6 18.0 1.0 0.7 0.5

UK 0.5 0.4 0.4 0.0 0.0 0.0

Chile - - - 3.0 3.9 0.2

Australia 1.1 1.1 1.3 0.0 0.0 0.0

Denmark - - - 0.3 0.3 0.4

Pacifi c 0.6 0.6 0.8 126.9 123.2 127.2Canada 0.1 0.1 0.1 0.7 0.7 6.7

USA 0.0 0.0 0.0 18.1 21.3 24.0

N. Zealand 0.6 0.5 0.7 0.7 2.0 1.6

Chile - - - 80.9 77.6 71.1

Russ. Fed. - - - 26.4 21.8 25.0

Total 20.6 21.3 20.8 131.3 128.2 128.3Source: Japanese national import statistics

SALMON


SALMON

mainly Atlantic salmon. Some recent developments, such as the Free Trade Agreement signed with Nicaragua, indicate that the region is acquiring a position that it is likely to retain. In the meantime, import by the EU has fallen to 8 700 tonnes worth USD 72 million, which represents a marginal position in overall trade of salmon and trout during 2010, displaced by the consolidation of Latin America and the other main markets.

Demand seems not to be a problem for Chilean salmonids

Despite higher prices, demand for Chilean products does not seem to decrease. At the beginning of the year japanese consumption of fi shery products was showing signs of recovery. However, the impact that the earthquake and following tsunami will have on demand in the Japanese market is still to be seen. In contrast, the Latin American region and other emerging economies are taking a leading role. This could imply that in the mid-term, as long as production recovers, pressure on prices could be higher, as the Chilean industry would have to supply the markets that it has managed to keep, as well as those that is has gained in the recent years.

Lower salmon imports in the US

Overall imports of salmon in the US in 2010 fell 3% in volume totaling 234 000 tonnes, but given a 12% increase in unit value, the value of imports totaled USD 1 822 million (+8%). Imports of Atlantic salmon accounted for 75% of total imported volumes and 78% of total value, with 176 400 tonnes worth USD 1 439 million. The average unit value of Atlantic salmon imports grew 14% in a year-on-year comparison.

The US Atlantic salmon market was dominated by three main players, Canada, Norway and Chile; however, each country focuses on different market niches. Canada accounted for 44% of total Atlantic salmon imports, and supplied mainly fresh whole salmon (91% of total sales to the US). Norway was placed second, with a 20% share in terms of volume, focusing on the fi llet market, with 66% of exports to the US being frozen fi llets, while 33% were fresh fi llets. As for Chile, the market trend is similar to that of Norway, although the focus on fresh fi llets is more pronounced; 78% of Chilean exports to the US were fresh fi llets, while 16% were frozen fi llets. Recently, the Norwegian salmon industry announced its intention of resuming actions against the imposition of anti-dumping duties on whole salmon exports to the US, effective since 1991. This could help Norwegian producers regain market share in this segment.

In 2010, Norway was the top supplier in both the fresh and frozen Atlantic salmon fi llets segments, with 41% and 44% shares respectively. Chile, once the main player in both segments, is now the second supplier of

fresh fi llets with a 39% share, and the third supplier of frozen fi llets with a 17% share, after China (25%).

Prices of fresh fi llets showed signifi cant increases from mid November 2010, and have remained stable from the beginning of 2011 until mid February, when they began to increase again. By mid-March quotations for Norwegian salmon were 20% higher both for Norwegian and Chilean fresh fi llets. Frozen fi llets, on the contrary, have remained stable since prices showed a minor reduction at the beginning of the third quarter 2010.

Good outlook for domestic production

Recently, a fi shermen’s cooperative from Alaska obtained Friend of the Sea certifi cation for its king and coho salmon fi sheries. The cooperative uses the trolling method, enabling each fi sh to be captured individually. According to Alaskan authorities, the outlook for the 2011 season is very good, as a result of a combination of favourable environmental conditions and the management measures adopted. It is forecast that 203 million fi sh will be caught this season. Captures of pink salmon are expected to grow 25% to 133.7 million fi sh, while sockeye salmon captures are forecast to be 45 million fi sh (+11%). Californian authorities also expect good salmon runs this year, and preliminary projections indicate that captures could grow as much as 200%, from the 245 000 fi sh projected in 2010 to 729 000 fi sh.

Higher supply seems likely in the US market

The recovery of the Chilean industry, as well as the positive outlook for domestic salmon fi sheries, indicates that supply of salmon to the US market could be higher in 2011. This, despite targeting different market segments, could ease the pressure on prices, which have shown an upward trend in the fresh fi llets segment, while the whole fi sh markets have remained stable with a slight upward trend in some products. Currently, supplies are adequate

ImportsSalmon: USA

2005 2006 2007 2008 2009 2010

(1 000 tonnes)

Fresh fi lletsNorway 1.3 2.6 2.3 2.3 18.8 22.7

Chile 83.5 71.8 80.1 76.4 41.5 21.5

Canada 11.2 6.3 4.2 5.4 5.0 6.8

Other 2.1 2.6 4.4 2.3 8.3 6.5

Total 98.1 83.3 90.1 86.3 73.5 57.5All salmon 232.8 242.7 250.2 241.8 241.9 234.1Source: GLOBEFISH AN 11630


for slow demand. This could drive prices down, which, in the mid-term, could see demand pick up.

EU

Reduced production levels in 2010 caused a tight salmon market with high prices. Demand was good throughout the year in spite of some resistance from processors and consumers to the more expensive value-added products.

In 2011, despite the usual weekly fl uctuations, Atlantic salmon prices have been remarkably stable during the fi rst quarter, oscillating around NOK 40 CFA Oslo. The forward market expects Atlantic salmon prices to soften somewhat over the next quarter and then drop during the autumn and winter. Similarly, 2012 and 2013 forward prices (in NOK) are expected to be 23% and 33% lower than present levels.

The trout market remains undersupplied as Norwegian farmers give priority to salmon production and Chile’s producers are still much below historic production levels.

Norway

The leading producer and exporter of Atlantic salmon saw export volumes grow close to 10% in 2010. Higher prices during the year led to a signifi cant increase in values, up 33% to NOK 30.5 Billion. Trout exports dropped 35% in volume as producers switched to salmon because of the high prices. As a result, trout prices also strengthened during the year.

Norway’s exports of Atlantic salmon in January-March 2011 were 207 000 tonnes (round weight equivalents), slightly down (-3.1%) from the same period in 2010.

However, values were up 17.1% to NOK 7.5 billion (EUR 1.0 billion) as a result of the higher prices.

Export volumes to the EU, Norway’s largest market with 65% of sales, declined slightly (-3.6%) during the quarter but volumes shipped to the US fell dramatically, from 13 700 in 2010 to 7 900 this year (-43%). The reason for the latter is improved conditions in Chile with Chilean salmon exports to traditional markets increasing again, including to the USA.

The comeback of Chile in the US market is seen particularly in the fresh fi llet market where Norway’s shipments dropped 58% during the quarter. Norway’s fresh fi llet exports to the Japanese market, however, showed a dramatic increase of 73%.

Norway’s fi rst quarter trout exports in 2011 were down in both value and volume. Average export prices rose 27%. The main markets for Norway’s trout, Russia and Japan, were both weaker during the quarter, whereas trout shipments to the EU grew by a surprising 27%.

UK

Salmon export volumes from the UK rose a healthy 14% in 2010. France, traditionally its main market for fresh exports, grew by 21% but since 2009 has been overtaken by the US, which has seen imports from the UK and Norway bounce upwards as a result of the cut-back in Chile’s production.

Markets

EU

The EU is still growing in terms of salmon consumption although the high price for Atlantic salmon is forcing processors in particular to look for alternatives. This explains in part the strong growth in imports of frozen salmon products from China. Cost is also driving the outsourcing of the smoking industry to Poland and the Baltics. During the fi rst quarter of 2011, Norway’s salmon exports to EU-27, although up in value by 17%, fell back almost 4% in volume.

France

France, the largest market for salmon in the EU, grew by 4% in volume in 2010. The fresh categories are showing the strongest growth, partly because of the decline in Chilean frozen salmon exports. Norway remains the principal supplier dominating the fresh whole (71%) and fresh fi llet (91%) categories.

The rapid growth of China’s frozen fi llets exports, which has now reached 40% of imports, issignifi cant. A large share of this is Pacifi c species

PricesSalmon: Europe, origin: Norway

Source: EPR; GLOBEFISH AN 10512, 10514Fresh, gutted, head-on, 3-5 kg/pc

1.00

2.00

3.00

4.00

5.00

6.00

7.00


EUR/kg

5-6 kg

2-3 kg

SALMON


SALMON

ExportsSalmon: UK (by product and country)

2005 2006 2007 2008 2009 2010

(1 000 tonnes)FRESH - - - - - -

France 24.7 17.9 17.7 18.2 18.8 22.8

USA 5.3 8.1 13.8 13.9 22.8 27.4

Ireland 3.4 2.6 5.1 4.2 4.7 3.7

Germany 1.7 2.6 3.0 2.4 2.1 2.1

Others 6.3 7.6 6.1 6.6 7.8 11.1

Total 41.3 38.7 45.8 45.4 56.3 67.1FROZEN - - - - - -

France 0.1 3.0 5.0 3.6 1.4 2.4

Russian Fed. 1.1 1.5 3.0 0.1 1.2 2.2

Others 1.2 1.0 2.0 3.6 6.4 3.2

Total 2.4 5.6 10.0 7.3 8.9 7.8CANNED - - - - - -

Ireland 0.6 0.5 0.7 0.8 1.0 0.8

Others 0.2 0.6 0.5 0.6 0.5 0.4

Total 0.8 1.0 1.2 1.4 1.5 1.2Gr. Total 44.6 45.3 57.1 54.1 66.6 76.1Source: EUROSTAT/National Statistics

rather than Atlantics.

In the smoked category, Poland dominates with 73% of French imports. All other foreign suppliers, including Scotland, have seen their share diminish as a result. This is all the more remarkable as the share of Poland only a few years back was less than 5% of the import market. French domestic smokers continue to target the top segments but are more affected by higher costs than foreign suppliers.

During the fi rst quarter of 2011, Norway’s exports to the French market dropped.

Germany

German import volumes were fl at in 2010 (+0.6%) after a large increase in 2009 (+19%). The German market is price sensitive and demand was held back by high prices throughout the year. Norway dominates overall followed by Poland, which has captured the smoked segment. China is also showing strong growth in the frozen category, reaching almost 18 000 tonnes last year.

During the fi rst quarter of 2011, Germany’s imports from Norway fell back 4% in volume.

Atlantic salmon 64%

459 683

Pink(=Humpback)salmon

2% 282 693

Pacific salmons nei

7% 167 500

Sockeye(=Red)salmon

6% 136 311

Coho(=Silver)salmon

6% 126 275

Chum(=Keta=Dog)salmon

5% 121 623

Salmon (farmed and wild) prodution by species (2008)

Source: FAO


Japan

Imports were fl at in 2010 in both the fresh and frozen categories. Norway dominates the fresh Atlantic segment and Chile the frozen Pacifi c category. Imports from Chile were only slightly down from 2009 (-8.3%), as Chilean producers continues to give priority to the Japanese market for its coho exports in particular.

Outlook

Chile’s salmon production is increasing but it is unclear how much will come to market this year. The production goals for 2012 and 2013 set by Chile’s salmon

industry are ambitious but whether the rapid projected growth can be sustained long-term is still open to debate, both in Chile and in Europe. Prices will therefore remain high for most of the year and only weaken when additional supplies from Chile reach the market during the second half.

ImportsSalmon: France

2006 2007 2008 2009

(1 000 tonnes)Fresh salmon 86.2 88.5 90.7 107.4 110.7

Norway 59.1 63.3 64.6 74.0 78.9

UK 18.8 17.8 17.6 19.3 21.0

Denmark 3.0 1.9 1.6 2.1 1.9Ireland 2.5 2.3 2.2 3.8 4.8

Spain 0.3 0.5 0.3 0.4 0.5

Faroe Isl. 0.1 0.3 1.8 1.6 0.5

Froz. Pacifi c salmon 5.9 5.3 4.1 3.7 3.4

USA 5.6 5.3 2.8 3.1 3.0

Canada 0.2 0.1 0.2 0.3 0.1

Froz. Atlantic salmon 4.9 4.5 3.1 3.3 4.6

Denmark 3.6 0.5 0.4 0.1 0.1

UK 0.3 0.6 0.7 1.4 2.0

Norway 0.3 0.7 1.0 0.9 0.9

Smoked salmon 5.0 4.1 4.8 5.7 7.3

UK 2.1 1.0 0.9 1.0 0.7

Poland 0.2 2.4 2.8 3.4 5.3

Fresh fi llets salmon 5.2 5.0 6.1 9.7 10.6

Norway 4.3 3.6 5.2 8.2 9.6

Denmark 0.5 0.3 0.4 0.3 0.2

Belgium 0.2 0.3 0.0 0.1 0.0

UK 0.1 0.2 0.3 0.5 0.5

Frozen fi llets salmon 18.3 18.9 19.6 21.3 20.6

Chile 9.2 9.1 8.8 9.0 3.8

China 3.6 3.5 4.5 5.8 8.2

USA 1.3 1.7 1.3 1.2 1.1

Denmark 1.1 0.5 0.3 0.6 0.9

Norway 1.0 1.7 2.1 2.5 3.0

Faroe Isl 0.8 0.8 0.7 0.4 0.4

Grand Total 125.4 126.3 128.4 151.1 157.2Source: National Statistics

ImportsSalmon: Germany (by origin)

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Norway 54.4 48.9 48.9 40.7 51.7 57.9

Poland 12.3 13.7 15.5 19.4 28.0 25.1

China 4.8 8.6 10.9 12.3 13.7 17.7

Denmark 9.6 8.5 8.5 8.3 8.6 8.1

Chile 14.6 15.7 14.5 13.3 7.9 2.0

Others 14.8 16.1 12.0 10.2 13.9 13.8


ImportsSalmon: Germany (by product)

2006 2007 2008 2009 2010

(1 000 tonnes)Fresh salmon 47.9 47.0 38.0 48.0 49.2

Frozen salmon 7.2 4.7 3.5 4.8 4.3

Smoked salmon 16.4 18.0 22.0 31.7 28.7

Fresh fi llets salmon 6.5 6.2 6.2 7.8 7.8

Frozen fi llets salmon 33.5 34.5 33.7 31.5 31.5

Salted salmon 0.0 0.0 0.0 0.0 0.0

Total 111.5 110.4 103.4 123.8 121.5Source: Statistisches Bundesamt

Exports (quantity and value)Salmon and Trout: Norway

2008 2009 2010 2008 2009 2010

(1 000 tonnes) (bill. NOK)Salmon 597.5 685.9 751.4 17.2 23.0 30.5

Fresh 514.8 568.0 615.0 13.8 17.5 23.1

Frozen 32.7 32.1 35.9 0.9 1.0 1.4

Fresh fi ll. 35.2 57.1 67.0 1.6 2.7 3.7

Froz. fi ll. 14.8 28.7 33.5 0.9 1.8 2.3

Trout 73.7 61.3 40.0 1.8 1.9 1.6

Source: Norwegian Seafood Export Council

SALMON


Mackerel wars continue into 2011

During 2010 Russia emerged as an important market for mackerel, although the declining trend of exports from Norway continued. Herring exports in 2010 also declined but prices rose to counteract the negative impact.Supplies of pelagic fi sh have tightened recently, and the main reason for this is the poor supply of Norwegian spring spawning herring. Landings during the fi rst two months of 2011 were down markedly, and the outlook for herring supplies is somewhat pessimistic. In contrast, prices for herring have increased already and are expected to strengthen further. Mackerel prices are also expected to rise somewhat in the second quarter.

SMALL PELAGICS

Mackerel

The Faroe Islands caused considerable consternation when they set their own mackerel quota of 150 000 tonnes for this year, up from 85 000 tonnes last year. As a reaction to this unilateral decision by the Faroes, the EU was reported to be considering imposing a ban on the imports of Faroese seafood products. However, the Faroes responded by saying that such a ban would have little impact on its industry.

For 2011 the coastal states have failed to reach a multilateral agreement on mackerel quotas, and this has led to the major fi shing nations setting high quotas. Before the Faroese announcement, the quotas set by Iceland, Norway, Russia and the EU already exceeded the recommendation by the International Council for the Exploration of the Sea (ICES). The projected 2011 quota allocations amount to 947 000 tonnes, far above the 646 000 tonnes recommended by ICES.

If the Faroes land their quota, more mackerel will enter the markets, but this is not expected to have much impact on prices, as the largest exporter of mackerel,

Norway, have been exporting lower quantities over the past three years.

Exports of mackerel from Norway declined again last year, continuing the trend over the past two years. Total Norwegian exports of frozen mackerel fell from 189 000 tonnes in 2009 to 178 800 tonnes in 2010, just above half of the export level in 2007.

During the fi rst two months of 2011, however, frozen mackerel exports have increased again. During January and February, a total of 41 500 tonnes were exported from Norway, compared with 32 700 tonnes during the same period last year. The average FOB export price went up from NOK 9.89 to NOK 11.12 per kg. The largest markets were Russia (8 000 tonnes), China (6 900 tonnes) and Turkey (6 200 tonnes)

Russia is emerging again as an important market for mackerel. In fact, Russian imports of pelagics have shifted from being composed mainly of herring and capelin, to mackerel. In 2010, Russia imported 107 925 tonnes of frozen mackerel, constituting 36.5 % of the country’s imports of pelagics, compared with 21.4% in 2007. However, Russian imports of pelagic fi sh have declined by 22.5% over the past four years, so it looks as if mackerel is capturing market share from other small pelagics on the Russian market. The fact is that Russian domestic landings of mackerel have increased gradually over the past years, from 72 000 tonnes in 2008 to over 98 000 tonnes in 2010. At the same time, imports of mackerel into Russia have grown from 60 000 tonnes in 2008 to almost 108 000 tonnes in 2010. Thus, the Russian market for mackerel is indeed growing.

Germany, another major importer of frozen mackerel, increased its imports by over 26% in 2010, to 13 400 tonnes. The main supplier to the German market was the Netherlands, followed by Ireland and the UK.

While mackerel prices have been declining for some time, some observers are now expecting a turn-around and that prices will increase.

ExportsFrozen Mackerel: Norway

2005 2006 2007 2008 2009 2010(1 000 tonnes)

Japan 78.1 45.0 119.7 118.1 51.4 47.0

China 40.7 25.4 60.2 66.3 33.5 30.5

Ukraine 7.6 10.6 39.2 20.6 13.0 20.4

Russ. Fed. 9.7 20.1 35.0 33.0 20.0 19.2

Turkey 7.8 8.0 26.0 20.8 18.2 17.7

Poland 3.6 4.8 4.3 12.2 12.1 11.2

Korea Rep. 2.3 4.7 14.8 6.2 7.7 7.6

Others 14.4 22.0 40.0 57.3 33.1 25.2

Total 164.2 140.6 339.2 334.5 189.0 178.8Source: Norwegian Seafood Export Council


Catches of horse mackerel and jack mackerel in the South Pacifi c and the North Atlantic have been declining over the past four to fi ve years, and this decline will continue in 2011, according to projections. This will undoubtedly lead to further price increases. However, it is not expected that prices will go up by more than approximately 5-7%.

Herring

The supply situation for herring is probably going to be a lot tighter than it has been in the recent past. Projected catches of Atlantic herring for 2011 are well below last year. This is in spite of positive reports about herring stocks. In fact, at the North Atlantic Seafood Forum in early March, one speaker predicted a massive decline in landings, and a corresponding rise in prices.

The major supplier of herring, Norway, saw an 8% decline in exports of frozen herring in 2010. This trend has strengthened in 2011. During the fi rst two months of the year, Norwegian exports of frozen herring declined

ImportsFrozen Mackerel: Germany

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Netherlands 1.1 1.3 1.9 2.0 2.5 3.6

Ireland 2.8 0.8 1.2 1.0 3.7 3.2

UK 1.5 1.2 0.3 1.8 1.2 1.3

Denmark 1.0 0.7 1.4 1.4 0.8 1.3

Others 1.1 2.0 0.4 1.8 2.4 4.0


ExportsFrozen Whole Herring: Norway

2005 2006 2007 2008 2009 2010(1 000 tonnes)

Nigeria * 3.1 20.1 138.5 115.5 118.0

Russ. Fed. 195.9 150.6 207.5 163.4 134.7 114.1

Ukraine 109.0 88.2 89.2 79.4 87.8 56.8

Lithuania 7.7 9.5 11.3 15.3 20.2 20.7

Netherlands 11.2 12.9 15.7 13.0 14.1 17.6

Poland 4.9 4.8 3.2 3.8 5.3 4.9

Belarus 9.1 7.7 10.2 7.9 8.4 3.8

USA 1.8 1.4 0.6 0.3 1.0 0.6

Others 27.2 44.6 42.5 69.9 59.0 73.9

Total 366.8 322.8 400.3 491.5 446.0 410.4Source: Norwegian Seafood Export Council

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80


EURO/kg

flaps*

whole**

Norwegian herring export prices (FOB Norwegian border)

Source: Norwegian Seafood Export Council

by almost 32%. At the same time, average FOB export prices increased from NOK 3.71 per kg during the fi rst two months of 2010 to NOK 5.59 for the same period in 2011, and prices are still climbing. Herring prices are now higher than at any time since 2001 – 2002, except for the short peak in the middle of 2008. Prices in February this year were on average 56% higher than in February last year.

The largest markets for frozen Norwegian herring are Nigeria (23 000 tonnes during the fi rst two months of 2011), Ukraine (12 000 tonnes) and Russia (12 000 tonnes).

ImportsFrozen Herring: Germany

2005 2006 2007 2008 2009 2010 (1 000 tonnes)

Norway 5.7 6.4 12.9 7.8 15.4 20.9

Netherlands 6.0 2.4 2.7 2.3 2.8 2.8

Denmark 21.7 17.9 4.1 4.3 3.8 2.7

Ireland 4.9 3.8 3.6 2.2 2.1 2.1

Canada 3.4 0.5 5.2 0.5 0.7 0.7

UK 12.2 3.3 7.0 1.1 0.5 0.5

Others 3.1 1.4 2.9 0.7 3.8 3.9


Germany imported more frozen herring last year. Total imports increase from 29 000 tonnes to 33 500 tonnes (+15.5%). Practically all of this increase came from Norway.

SMALL PELAGICS


SMALL PELAGICS

Exports of herring fi llets from Norway have increased, especially to Germany. During the fi rst two months of 2011, a total of nearly 49 500 tonnes of herring fi llet exported, and at very high prices. The average FOB export price was NOK 9.93 per kg, up from NOK 6.78 during the same period in 2010. Germany was the largest market for Norwegian herring fi llets during this period, and Germany alone imported over 22 000 tonnes.

ExportsDutch herring

2004 2005 2006 2007 2008 2009

(1 000 tonnes)Nigeria 120.7 98.5 109.4 82.4 51.0 48.9

Egypt 18.0 39.1 15.6 16.0 14.3 23.6

China 14.0 2.6 6.2 4.9 5.4 10.1

Germany 2.5 3.9 3.2 3.4 4.6 2.0

Japan 1.3 1.5 1.2 0.9 0.6 1.1

Malta 4.8 7.7 5.6 8.4 0.7 1.0

France * 1.2 1.1 1.2 1.3 0.9

UK * 0.5 1.4 0.7 0.8 0.8

Lithuania * * * 2.5 1.5 0.7

Thailand * * * 0.3 0.6 0.5

Spain * 0.7 3.6 0.3 0.2 0.3

Romania * 1.6 1.6 0.8 0.4 0.3

Belgium 0.8 0.6 0.6 0.6 0.6 0.2

Poland 3.7 2.3 0.8 0.7 0.7 0.2

Cote d’Ivoire 2.6 0.6 0.5 1.2 0.6 0.1

Italy * 1.3 3.1 3.0 0.3 0.1

Israel * * * 0.7 0.6 0.0

Russian Fed. * 1.8 1.9 0.8 0.2 0.0

Others 28.1 16.2 7.6 2.4 1.5 1.0

Total 196.5 180.1 163.4 131.3 86.0 91.9

While Norwegian herring exports fell in 2010, Dutch exports rose slightly, from 86 000 tonnes to 91 900 tonnes (+6.9%). Dutch exports to Nigeria, however, fell signifi cantly, while exports to Egypt rose by 65% and exports to China doubled.

France also increased its imports of frozen herring, although the total volume was relatively low. Imports rose from 6 618 to 7 406 tonnes. Again, Norway was the leading supplier, and increased its market share, as did the Netherlands, while the UK saw a signifi cant drop in exports of frozen herring to France.

Japan, which has been an important market for fresh

and frozen herring and herring roe, saw a turn-around in the trend of declining imports that has characterized this trade in recent years. Imports increased from 31 900 tonnes in 2009 to 36 500 tonnes in 2010. Practically all

ImportsFrench herring

2007 2008 2009 2010

(tonnes)

Norway 3 329 2 488 4 146 4 273

Iceland 1 298 3 609 1 280 1 809

UK 2 021 605 644 283

Netherlands 636 763 275 767

Denmark 301 86 122 158

Others 236 750 151 116

Total 7 821 8 301 6 618 7 406

of this increase was absorbed by the leading supplier to Japan, the USA.

ImportsFresh and Frozen Herring: Japan

2005 2006 2007 2008 2009 2010 (1 000 tonnes)

USA 25.9 27.6 16.1 21.4 21.9 26.4

Russia 9.7 9.0 5.9 8.1 5.0 5.4

Norway 4.0 4.5 3.9 4.3 3.6 3.3

Netherlands 1.6 1.3 0.8 0.7 0.6 0.6

Korea Rep 0.0 0.0 0.0 0.4 0.4 0.0

Others 0.6 0.4 0.9 0.1 0.4 0.8

Total 41.8 42.8 27.6 35.0 31.9 36.5Source: National Statistics

Canned sardines

Mixed trends can be observed on the markets for canned sardines. While the UK has shown strong growth in imports of this product, Germany and France registered a decline of 12% in imports in 2010 compared with 2009.

For France and Germany, Morocco is the major supplier, while Portugal has moved into fi rst place as supplier to the UK. However, Morocco plans to increase its role as supplier of canned sardines to world markets. In the so-called Halieutis Plan, which was updated and presented at the Halieutis Trade Show in Agadir towards the end of January, it was pointed out that there are large resources of sardines in the country’s southern waters, and that these have not been fully exploited so far. The country is planning to invest heavily in the development of its fi sheries, especially in the south.

However, the development in the south may well be jeopardized by a dispute with the Polisario, the Southern


Sahara independence group. Polisario recently claimed that the EU is fi shing illegally in Western Sahara waters under an agreement between Spain and Morocco. The Polisario claim is supported by the European Parliament, which recently issued a legal report that determined that the agreement was not respecting international law. Thus, development of fi sheries in this region may run into diffi culties.

ImportsCanned sardine: Germany

2005 2006 2007 2008 2009 2010 (1 000 tonnes)

Morocco 10.5 12.3 8.8 9.7 6.7 5.2

Netherlands 0.4 0.2 0.6 0.5 0.7 0.9

Portugal 0.3 0.3 0.5 0.7 0.1 0.0

Others 0.9 0.5 0.5 0.9 0.8 1.2


ImportsCanned sardines: France

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Morocco 12.0 13.1 10.6 12.8 13.6 11.3

Portugal 2.1 2.6 3.0 3.4 4.0 4.1

Spain 1.2 0.9 1.1 1.2 0.7 0.9

Others 0.6 0.2 0.4 0.7 0.7 0.5


Outlook

Herring supplies are forecast to be down quite considerably in 2011 and prices could continue to rise this year. In Norway, indications are that frozen mackerel exports are on the increase as well as prices, which when viewed in the light of Russia’s current demand for mackerel, could be a positive sign for 2011.

ImportsCanned sardine: UK

2005 2006 2007 2008 2009 2010( 1 000 tonnes)

Morocco 4.7 8.0 6.9 5.4 3.5 4.7

Portugal 1.7 3.6 5.0 5.7 3.4 5.0

3.5

Others 7.6 3.0 6.5 3.0 1.7 1.0

Total 14 14.6 18.4 14.1 8.6 14.2Source: Seafi sh

SMALL PELAGICS NEWS

USA: GULF OF MEXICO MENHADEN CATCH DOWN 17%

Gulf of Mexico menhaden landings fell 17% in 2010 and producers cite the disruption caused by the Deepwater Horizon oil spill curtailed the season. “Clearly we had a rough go of it,” said Ben Landry, spokesman for Omega Protein, which operates a processing facility in Moss Point. Landry told The Mississippi Press that the company believes the season’s lower-than-average catch was due to the water closures rather any problems with the menhaden population. The National Oceanic and Atmospheric Administration reports that the 2010 menhaden season saw 379 727 tonnes landed at four Gulf of Mexico sites, compared with 457 457 tonnes in 2009. The landings were down 15% from the fi ve-year average of 446 982 tonnes. The season was strong when the Gulf’s menhaden boats were free to fi sh, Landry said. But fi shing was closed for much of July and August, except for a small area in southwest Louisiana waters. Menhaden are processed into meals and oils used in products for humans, animals and plants. Last year’s season opened 19 April the day before the Deepwater Horizon rig exploded, unleashing the spill and setting in motion a wave of fi shing closures in the northern Gulf. “Once the fi shing grounds were reopened in October, we had a very strong October,” Landry said. “It was one of the most productive Octobers on record. We were able to minimize some signifi cant damages with a good October, but you still saw a signifi cant drop-off from the fi ve-year average and year-to-year catch.” The company expects the season will have a normal reopening in April, he said. Omega Protein has made an oil-spill damage claim to the Gulf Coast Claims Facility, he said. Omega Protein plans to operate eight fi shing vessels and three run boats from its Moss Point facility this year, Landry said. Overall, it expects to have 26 fi shing vessels in the Gulf. Source: INTRAFISH

UK: SCOTTISH HERRING PELAGIC TRAWL FISHERY IN MSC ASSESSMENT

The Scottish Pelagic Sustainability Group (SPSG) has entered its West of Scotland herring pelagic trawl fi shery into MSC assessment. If the fi shery is successful, it will mean that all of the SPSG’s key landings will be MSC certifi ed. The SPSG already holds MSC certifi cates for its North Sea herring, Atlanto-Scandian herring and North East Atlantic mackerel fi sheries. In total, the fi sheries land around 200 000 tonnes of fi sh. The SPSG was established in 2007 in response to an increasing demand from buyers for seafood that is demonstrably sustainable. It represents all sectors of Scotland’s pelagic industry, from catching and processing, through to marketing, and encompasses all of Scotland and Northern Ireland’s 28 pelagic trawlers. John Goodlad, SPSG Chairman says: “At our recent board meeting the directors unanimously agreed to enter the West of Scotland herring fi shery for full MSC assessment. SPSG are fully committed to the MSC process, with the aim of having all the main Scottish pelagic fi sheries certifi ed. “After successfully achieving MSC certifi cation for North Sea herring (July 2008), Western mackerel (January 2009) and Atlanto Scandian herring (2010), it was a natural step for us to seek certifi cation for the West of Scotland herring fi shery. If successful the four main Scottish pelagic fi sheries, accounting for over 98% of pelagic quota by volume and value, will be under MSC certifi cation. It will also demonstrate to seafood buyers and to the public, our wholehearted commitment to sustainable and responsible fi shing practices.” Source: FISHUPDATE.COM

SMALL PELAGICS


Fishmeal production at lowest level in years keeps prices high Combined world production of fi shmeal fell sharply last year caused by declining catches in producing countries in South America. By region, fi shmeal output fell back 27% in South America whereas European production bounced upwards by 39% thanks to higher catches in Norway in particular.

FISHMEAL

Prices remain high with the price multiplier between fi shmeal and soymeal at around 4.3. Soymeal prices are also high with the market expected to remain tight for quite some time. However, given the weakness of the dollar, the high fi shmeal prices are often more acceptable to importers when expressed in local currencies, although the multiplier always remains the same.

Production

The current situation is uncertain with operators watching the development of catch levels in South America closely. Fishing in Peru’s north and central fi shing areas on a 3.7 million tonnes quota opened in early April but it is still too early to forecast how the season will develop.

Norway’s capelin season is coming to an end with the quota of 275 000 tonnes virtually exhausted. Iceland remains off-season with landings for meal and oil starting up only in early summer.

China remains the principal destination thanks to its growing need for fi shmeal for a number of uses, ranging from aquaculture feeds to inputs for its livestock and hog production.

Morocco’s fi shmeal exports grew slightly from 91 505 tonnes in 2009 to 95 000 tonnes in 2010. New operators have entered the industry with additional production capacity added.

Markets

China

China, the dominant market for fi shmeal consumption and imports, reported a 21% drop in purchases from abroad in 2010. The high prices during the year forced operators to look for alternative meals and to increase the vegetable component in feeds. The value of imports was still up given the higher prices.

China remains the world’s largest market for fi shmeal. It takes half of Peru’s production and almost 40% of Chile’s. China’s long-term growth in animal production including aquaculture underpins demand, and despite increasing use of vegetable meals and oils in feed formulations, its reliance on fi shmeal imports will not decline.

On a global basis, fi shmeal production in the major producing countries during January and February 2011 was slightly higher than last year, up 7%, reaching 291 000 tonnes. However it is too soon to speculate whether supply this year will overtake that of 2010.

Exports

With declining catch levels last year, exports from the major world producers Peru and Chile fell sharply in 2010, by 29 % and 47% respectively. For both countries,

ProductionFishmeal: World

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Peru/Chile 2 941 2 232 2 120 2 063 2 039 1 487

Denmark/Norway 376 389 317 302 274 433

Iceland 179 162 135 251 198 225

Total 3 496 2 783 2 572 2 616 2 511 2 146Source: IFFO

ImportsFishmeal: China

2008 2009 2010 2008 2009 2010

(1 000 tonnes) (USD million)Peru 876 730 612 862.8 676.8 965.9

Chile 239 340 131 262.7 344.7 232.0

USA 77 89 67 100.0 111.8 121.1

Thailand 6 7 49 5.1 6.3 68.4

Russia 49 40 46 72.2 57.1 93.7

South Africa 13 9 26 13.1 8.7 42.2

Pakistan 13 18 21 9.1 13.5 20.8

Vietnam 2 5 18 1.9 4.3 20.9

Total* 1 351 1 311 1 042 1 398.9 1 303.3 1 668.2* (including others)

Source: China Customs/ INFOFISH


During the winter season demand is reduced but with the spring season now under way, requests will grow from both aquaculture and other sectors. Inventories are reportedly around 150 000 tonnes, sligthly above the last four years average.

EU imports from non-EU producers dropped 24% in 2010. Supply from the dominant producers, Peru and Chile, were both lower as a result of reduced catches whereas shipments from Morocco were up a massive 243% to 52 000 tonnes.

This is a drop of 27% from the previous year but in line with volumes reached in earlier years. (In addition to Germany’s own needs for fi shmeal, the country also is an important player in international meal trade with exports to a number of other user countries).

Peru is the principal supplier with 70% of the market. The large increase in imports from Morocco reaching 36 000 tonnes in 2010, or 16% of the total, is noteworthy.

ImportsFishmeal: EU*

2009 2010

(1 000 tonnes)Peru 373.3 248.5

Chike 90.0 58.9

Morocco 15.1 51.8

Norway 34.9 30.3

Iceland 22.1 18.1

Faroe Is 4.1 10.9

Others 22.6 9.4

Total 562.2 427.9* only imports from non EU countries

ImportsFishmeal: Germany

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Peru 200.4 202.1 192.3 131.1 251.1 159.3

Denmark 4.2 8.8 3.7 8.6 16.0 13.4

Chile * 1.0 7.1 5.0 15.5 4.8

USA * * * 0.0 9.9 0.0

Morocco * * * 1.8 5.6 36.0

France 1.5 2.6 2.0 3.6 4.0 3.7

Norway 1.2 1.0 1.0 0.3 1.0 1.4

Iceland 6.6 1.2 1.4 7.5 0.0 0.0

Others 17.6 18.7 2.7 7.1 6.6 7.4

Total 231.5 235.4 210.2 165.0 309.7 226.1* included under others


Germany

Despite a large drop in imports in 2010, Germany remains Europe’s principal shipment destination for fi shmeal with more than 225 000 tonnes imported.

ExportsFishmeal: Peru

2005 2006 2007 2008 2009 2010

(1 000 tonnes)China 1049.4 535.2 555.2 831.9 753.9 554.5

Germany 235.9 208.9 166.0 191.9 269.1 136.3

Japan 170.2 174.0 149.7 148.1 117.1 112.2

Taiwan PC 84.0 57.1 39.3 46.8 61.4 34.5

Viet Nam na na na 63.1 62.5 37.5

UK na na na 22.7 54.4 32.2

Others 461.9 338.4 349.1 259.5 335.7 177.3


Germany is an important hub for northern and western Europe because of its sophisticated terminals in the port of Bremen. Large volumes of fi shmeal from Peru and Chile are shipped in bulk to this port, discharged, controlled for salmonella, cleared for EU customs and fi nally distributed to EU-27 and Norway.

Domestic consumption is estimated at around 40 000 to 45 000 tonnes a year.

UK

Import volumes dropped almost 12% in 2010 and remain far below historic levels. Peru remains the principal supplier but Denmark has gained market share in the UK thanks to an increase in production.

Use of fi shmeal in the salmon feed industry dropped by 5% because of the high fi shmeal price and other protein products used as substitute.

Similarly, pig and poultry producers reduced their fi shmeal content in feed.

USA

US imports were up 12% last year. Chile is the principal supplier, more than doubling its exports in 2010

FISHMEAL


FISHMEAL

ImportsFishmeal*: USA

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Chile 6.5 5.9 6.7 5.5 5.9 13.1

Canada 8.7 7.4 6.5 4.4 6.7 6.7

Mexico 11.1 27.6 20.0 22.7 17.9 5.8

Morocco * * * 0.0 0.0 5.7

Peru 14.3 11.2 1.1 0.6 0.5 3.2

Panama 0.8 1.6 0.6 0.3 0.0 0.5

India NA NA NA 1.1 2.1 0.0

Iceland 13.9 0.6 0.5 0.0 0.0 0.0

Others 5.2 4.4 4.2 3.5 1.8 4.1

Total 60.5 58.7 39.6 38.1 34.8 39.1Source: GLOBEFISH AN 11630 * excluding solubles

to the US market. Traditionally, Mexico has been the leading exporter to the US with a market share of around 50% but this dropped markedly in 2010 to less than 15% because of reduced catches.

In the US, domestic consumption is down as high prices are forcing users to look for cheaper alternatives.

ExportsFishmeal: Chile

2005 2006 2007 2008 2009 2010

(1 000 tonnes)China 264 169 189 245 328 120

Japan 100 83 65 51 61 55

Germany 23 33 32 37 30 12

Spain 28 28 33 32 30 24

Rep. Korea 33 30 28 25 30 20

Italy 30 26 27 22 26 19

Taiwan PC 72 50 30 18 21 8

Others 154 72 84 58 79 61

Total 709 519 488 487 605 319Source: GLOBEFISH AN 11625, (*) included under others

Chile

Chile is not only a producer of fi shmeal but a consumer as well. Chile accounted for approximately 20-25% of the value of Skretting’s fi sh feed sales in the third quarter of 2010.

* all origins, 64-65% cif Hamburg; 44% cif Rotterdam

PricesFishmeal and Soymeal

Source: Oil World, GLOBEFISH AN 11702, 11706

0

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Soymeal**

Outlook

The long term trend is one of growing demand and fairly stable supply. The short term picture is more uncertain and hinges on the catch levels in South America. Prices will remain high during the year at sizable multiples to soybean for which the market also remains tight.

Sales volume of fi sh feed in Chile is expected to grow about 11% in 2011, according to feed suppliers. This follows growth of 31% in 2010, indicating the resurgence of Chilean salmon production.

ImportsFishmeal: UK

2005 2006 2007 2008 2009 2010

(1 000 tonnes) Peru 23.2 37.6 19.3 25.0 54.3 33.6

Denmark 16.1 25.3 12.9 22.0 19.1 29.7

Germany 15.7 30.8 13.5 8.3 2.5 14.9

Ireland 11.6 6.0 11.4 9.1 22.1 10.9

Norway 3.7 7.9 9.8 3.8 2.4 3.6

Iceland 33.3 13.6 3.8 10.3 1.7 2.8

Chile 12.6 10.9 5.0 0.0 4.8 0.3

Faroe Is. 10.9 2.3 3.4 7.9 0.0 0.0

Others 9.8 5.0 8.3 4.5 7.5 5.1

Total 136.9 139.4 87.4 90.9 114.4 101.0 Source: GLOBEFISH AN 11632, (*) included under others


Fish oil price continues to track crude oil price

The fi sh oil market is in stand-by mode awaiting the results of the Peruvian fi sheries. Current prices are at record levels and despite increased oil production during the fi rst two months of 2011 compared with last year, up from 59 000 tonnes to 78 000 tonnes, prices should remain high.

FISH OIL

PricesFish Oil and Soybean Oil

Source: GLOBEFISH AN 12002, 2003

ProductionFish oil: World

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Peru/Chile 413 405 577 459 410 237

Denmark/Norway 87 104 74 93 79 110

Iceland 55 42 46 81 44 67

Total 589 594 697 633 532 414Source: IFFO

Markets

Diminishing supplies led to a tight market in 2010. In addition, a growing share of production is going into the valuable fi sh oil food supplement market.

Outlook

Although there is uncertainty regarding the catch levels in South America, demand for aquaculture is bound to grow in 2011 because of the come-back of the Chilean salmon industry. Therefore, the market will remain tight in 2011.

The high degree of correlation between crude oil prices and fi sh oil continues. With crude oil prices at around USD 120 per barrel (Brent) and expected to remain high because of instability in many crude oil producing countries, fi sh oil prices should remain at high levels during 2011.

ExportsFish oil: Peru

2007 2008 2009 2010

(1 000 tonnes)Belgium 52.8 64.6 67.3 44.8

Chile 92.9 52.3 22.5 61.9

Denmark 86.2 32.6 85.1 42.7

Norway 26.2 31.4 19.5 14.2

Others 47.7 53.9 92.7 71.4

Total 305.7 234.9 287.2 235.1

Source: Produce

ExportsFish oil: Chile

2007 2008 2009 2010

(1 000 tonnes)Japan 8.3 15.8 10.6 7.5

Denmark 0.0 15.0 0.0 4.0

China 18.1 12.6 0.0 11.0

Norway 10.0 5.5 1.0 6.4

Others 35.6 32.2 69.1 21.3

Total 72.0 81.0 80.8 50.0Source: Boletín de Exportaciones del IFOP

Production

World production is linked to available catches and the share of catch destined for fi sh oil production. Both Peru and Chile, the two leading producers, saw reduced catch levels in 2010 and a fall in oil production as well. The situation in the North Atlantic was more positive with producers showing an increase in output. Overall output from the 5 top producers fell 22% in 2010.

Exports

The leading exporters, Peru and Chile, experienced drastic falls in shipments in 2010, down 18% and 38% respectively. Chile suffered not only from declining catches but also damage to its industry infrastructure from the 2010 earthquake. As a result, Chile’s imports of oil from Peru for its aquaculture industry increased signifi cantly last year from 22 000 to 62 000 tonnes.

Further north, good catch levels of menhaden during 2010 allowed for an upsurge in US oil exports by a signifi cant 57%.

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Soybean Oil

Fish Oil


BIVALVES

New Challenges for Bivalve Molluscs

The bivalve mollusc sector faced a number of challenges in 2010, including a reduction in the import of scallops to the European Union, an oversupply of mussels that led to a drop in the average price in Chile, and the shortage of oysters in the French market with a corresponding 40% price rise. Galician clam producers are concerned that they will not have enough seed available in 2011, as hatcheries prefer to produce oyster seeds for the french market.

Oysters

The annual consumption of oysters in France is around 150 000 tonnes. However, as a result of a viral disease that has affected the sector for several years, by December 2010 supply could not keep up with demand any more. This crisis could favour oyster producers in Brazil, Mexico and other countries that have focused on the American market until now.

According to the French Research Institute for the Exploitation of the Sea (Ifremer), a variety of the herpes virus and several bacteria species have killed more than 80% of young oysters. In 2008 the effect was even worse with a 90% mortality of oyster seeds.

This high mortality not only affected the supply of oysters, but also led to price rises of between 30 and 40% in the French domestic market last year. Oysters in Asia have not been affected by the virus and scientists are bringing oyster species back from Japan in the hopes of fi nding resistant species. Another approach is to try to breed a ‘super-resistant’ strain from those that have survived.

In addressing this problem, the European Food Safety Authority (EFSA) announced in November 2010 that the regulation governing the application of measures to control the increased mortality of Pacifi c oyster should be extended until the end of April 2011. This regulation stipulates that, following the detection of the virus by testing, a containment area must be established to prevent the movement of oysters out of that area. The Panel on Animal Health and Welfare (AHAW) was asked to give a scientifi c opinion on the mortality events and concluded that a robust health surveillance system is needed in Europe.

This problem also affects oysters in the UK, Ireland and New Zealand.

In December 2010 live Pacifi c oysters (Crassostrea gigas) from France were on sale for EUR 11.15/ kilo on the Italian wholesale market while Italian oysters were selling for EUR 4.15/kilo.

Scallops

Demand for frozen scallop products from Peru increased markedly in 2010 and several new companies entered this market. Exports for 2010 increased by 88.9% and were valued at USD 117.8 million, according to the

ExportsOysters : France

2008 2009 2010

(1 000 tonnes)Italy 6.0 6.1 5.4

Belgium 1.0 0.9 0.6

Germany 0.6 0.5 0.6


Spain 0.3 0.2 0.5

Ireland 0.3 0.5 0.4

Switzerland 0.2 0.2 0.3

Russian Fed 0.4 0.2 0.2

Hong Kong 0.1 0.1 0.2

UK 0.1 0.1 0.0

Others 0.6 0.6 0.9

Total 10.0 9.9 9.8Source: National statistics

ImportsScallops Selected European countries

2005 2006 2007 2008 2009 2010

(1 000 tonnes)France 23.3 25.9 21.4 25.4 27.9 28.0

Spain 9.8 10.3 11.6 13.3 12.5 11.5

Italy 5.6 6.3 6.3 5.6 5.2 6.4

Belgium 4.6 6.4 3.9 4.7 3.8 4.6

Netherlands 3.0 2.7 2.4 2.4 3.3 3.2

UK 2.1 2.2 2.5 2.5 3.8 2.2

Denmark 1.0 1.2 1.2 0.9 0.9 1.5

Germany 1.0 1.1 1.2 1.4 1.3 1.4

Others 1.9 2.5 2.5 2.4 3.0 3.9

Total 52.4 58.6 53.0 58.5 61.6 62.8


The effects of the earthquake and tsunami in Japan in March were felt by scallop farms across the Pacifi c in northern Chile, where waves devastated a large part of the farming sites at Coquimbo bay. The fi shermen’s association calculates the loss at USD 6 million, as 80% of scallop long lines were destroyed. This area was already suffering a crisis as a result of competition with Peruvian producers who are able to export at lower prices because of wild captures and cheaper labour.

Mussels

In 2010 mussel imports by the European Union reached 189 700 tonnes, with France taking 47 700 tonnes, followed by Italy with 38 500 tonnes and Belgium with 35 100 tonnes. Imports by Spain and the United Kingdom declined, with Spain importing 13 100 tonnes, down from 15 100 in 2009 and the UK 6 900 tonnes, down from 11 900 tonnes the previous year.

ImportsScallops: France

2005 2006 2007 2008 2009 2010


Peru 2.2 2.5 2.6 3.5 5.3 8.0

Canada 1.7 1.3 1.8 2.2 1.6 1.7

Chile 3.3 1.7 1.7 1.6 2.8 1.1

UK 0.6 1.3 1.1 1.6 4.6 4.0

Japan 0.4 1.6 0.8 1.6 1.0 0.7

USA 2.8 3.6 1.3 1.5 5.5 3.6

Viet Nam 1.3 1.7 0.8 0.4 0.2 0.9

Denmark 0.0 0.2 0.7 0.2 0.0 0.0

Others 3.5 2.6 1.2 1.4 1.7 2.1

Total 19.1 21.8 17.0 20.4 28.0 28.0Source: National statistics

ImportsScallops: Italy

2005 2006 2007 2008 2009 2010

( tonnes)UK 1 437 1 406 1 547 1 435 1 502 1 842

Peru 84 275 363 543 495 515

France 622 682 484 427 321 457

Spain 244 274 656 393 194 334

Vietnam 369 640 479 66 27 0

Tunisia 251 73 53 20 3 3

Others 576 512 508 446 478 504

Total 3 583 3 862 4 090 3 330 3 020 3 655Source: National statistics

ImportsScallops: Spain

2005 2006 2007 2008 2009 2010

(tonnes)Italy 3 327 2 401 2 766 6 798 5 822 4 088

France 3 353 3 451 3 118 2 832 3 330 3 557

UK 1 388 1 633 1 860 1 328 1 036 1 335

Peru 304 826 393 702 273 449

Others 1 358 1 941 1 316 1 404 2 084 2 072

Total 9 730 10 252 9 453 13 064 12 545 11 501Source: National statistics

consulting fi rm Maximixe. Exports to overseas countries increased substantially but demand from neighbouring Chile increased by almost 1 000%. Imports of frozen scallops by the USA also increased, by 34.5%.

ImportsMussels

2005 2006 2007 2008 2009 2010

(1 000 tonnes)France 55.5 41.8 43.6 41.3 45.4 47.7

Italy 22.7 34.7 33.3 36.2 41.4 38.5

Belgium 15.5 21.9 28.6 37.1 28.1 35.1

Netherlands 22.3 28.5 16.9 18.9 15.7 16.8

Spain 26.6 24.4 33.7 14.4 15.1 13.1

Germany 10.9 9.9 8.8 9.2 9.7 10.1

UK 14.9 17.2 11.0 9.7 11.9 6.9

Portugal 6.2 7.3 5.8 3.8 4.8 6.7

Others 21.1 16.1 20.0 18.1 14.9 14.8


ImportsMussels: France

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Netherlands 18.1 13.0 13.0 12.5 11.9 13.9

Spain 8.8 12.6 12.6 12.2 14.6 12.4

Chile 3.1 3.5 3.5 9.8 8.4 10.7

Ireland 9.6 9.0 9.0 5.6 5.3 8.6

Greece 3.8 5.8 5.8 2.6 3.7 2.7

Italy 5.1 5.6 5.6 2.5 2.3 4.7

Denmark 3.0 2.2 2.2 2.4 1.7 2.0

UK 3.1 2.1 2.1 1.6 2.4 2.2

Others 4.1 5.0 5.1 2.3 0.9 0.9


BIVALVES


BIVALVES

In the Netherlands, producers of the blue mussel (Mytilus edulis), exported 461 tonnes in 2010 compared with 387 tonnes in 2009. Some private initiatives were able to give a boost to the sector, including mussel seed hatcheries and inland farms.

Galician mussel farmers are preparing to oppose the fraudulent use of local labelling on canned mussels imported from Chile by launching the brand “Mejillón de Galicia®”. However, at the end of March 2011 the company accused of selling canned mussels from Chile as if they were from Galicia admitted that it had made a mistake and the Regulatory Council for the Galician Mussel withdrew the criminal charges. The company gave assurances that they would remove all the cans from the market and would respect to the protected designation of origin in future.

2010 was a diffi cult year for Chilean mussel producers, with an oversupply of mussels that meant companies had to sell their product at very low prices, even below the production price. As a result of the fi nancial crisis in Europe all inventories of mussels were depleted and were not replenished until stocks were

almost used up, which is one of the reasons why import demand was slow.

According to Infotrade, more than 80 600 tonnes of Chilean mussels were exported to the EU in 2010, worth USD 36 million. The price was around USD 2 dollars per kilo, though some companies sold below USD 1.50 per kilo, a very low price compared with the USD 3 that was paid in 2007, the industry´s best year.

In addition, the Chilean industry suffered from production problems of mussels growing very slowly and taking double the amount of time to reach harvestable size compared with previous years. This is likely to have an ongoing negative effect on volumes forecast for 2011.

The Shellfi sh Growers Association of Calbuco has suggested that this decline might be related to La Niña phenomenon, although a number of other environmental conditions could also be affecting the growth of mussels.

Chilean mussel farmers also suffered from the Japanese tsunami as storm surges and strong currents damaged farms in Chiloe and other areas.

On a positive note, the Chilean mussel producer Toralla was certifi ed sustainable by Friend of the Sea in January 2011. The farm uses long-line methods to harvest the mussels, which are exported worldwide. About 12 000 tonnes of mussels are sold in a year.

Gulf of Mexico oil spill still affecting consumer perceptions

Consumer behaviour in the USA has been changed considerably by the perceptions that the oil spill that released about 200 million gallons of oil into the Gulf of Mexico last year affected all seafood available in the US. In fact, only about 2% of all fi sh and seafood sold in the USA comes from the Gulf of Mexico, but overall seafood consumption was still down even four months after the spill had been stopped.

ImportsMussels: Spain

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Chile 6.2 8.5 7.5 9.3 8.0 10.7

France 3.0 2.3 2.1 1.9 1.4 2.2

Italy 1.4 1.2 1.0 0.5 1.0 1.1

Portugal 0.2 0.4 0.4 0.0 0.3 0.5

N. Zealand 3.4 2.6 3.5 0.0 0.0 0.0

Others 3.0 2.9 2.6 5.0 1.5 0.7


ImportsMussels: Italy

2005 2006 2007 2008 2009 2010

(1 000 tonnes)Spain 11.5 18.1 17.5 20.2 23.9 22.1

Chile 3.6 4.2 4.8 7.0 4.7 6.6

Greece 9.4 9.4 4.9 6.1 7.4 3.4

Ireland 0.6 0.8 0.9 1.0 1.2 1.4

N.Zealand 0.8 0.8 0.7 0.4 0.6 0.3

Denamrk 0.4 0.4 0.3 0.3 0.2 0.2

Netherlands 0.2 0.2 0.1 0.2 0.1 0.1

Others 2.7 2.8 3.1 2.7 3.3 3.0


ExportsMussels: Netherlands

2005 2006 2007 2008 2009 2010

(tonnes)Belgium 338.1 239.5 230.3 220.1 222.9 241.5

France 221.7 172.9 131.5 100.6 106.5 155.4

Germany 54.4 47.8 31.6 32.8 38.5 45.9

UK 5.3 10.8 9.9 7.5 7.2 7.8

Luxemburg 0.1 4.5 4.2 4.3 4.3 4.4



However, one species that was indirectly hit badly by the disaster was oysters. The state of Louisiana lost about 80% of the oysters that should have been harvested in the middle months of last year because of mortalities caused by the pumping of millions of gallons of freshwater into the Gulf to prevent oil from reaching the estuaries, thereby changing salinity levels.

As oyster production declined, prices went up, meaning that company sales were only down about 25%

Spain approved fi rst abalone hatchery

The fi rst abalone marine farm and hatchery in Galicia, Spain, was approved at the beginning of 2011, after waiting for some considerable time for Consell of the Xunta de Galicia to revoke the ‘ban’ on new aquaculture plants. The company, Galician Marine Aquaculture, plans to produce 300 tonnes of abalone in the next fi ve years. The Ministry of Marine Affairs and the European Fisheries Fund Initiative will co-fi nance the farm along with company to the amount of EUR 3.5 million.

This is the fi rst aquaculture plant in Galicia in the last fi ve years and it is one of the biggest investments in relation to molluscs.

This project is the fi rst in this area of Spain to develop industrial farming of abalone and therefore the economic effect it will have cannot be quantifi ed yet.

Indications are that abalone will reach prices in Europe of over EUR 70 per kg for a high quality live abalone. It is anticipated that most of the production from the farm will be exported.

EU to introduce new method to detect marine biotoxins

Following reports that the previous methods of testing for the presence of marine biotoxins in bivalve molluscs had signifi cant defi ciencies, the European Commission (EC) published a new regulation (EU) 15/2011 amending the previous regulation governing recognised testing methods. The new methods are based on liquid chromatography-mass spectrometry and they will replace the mouse or rat bioassays that have been used up to now.

The new regulations were published on 10 January 2011 but are not due to be implemented until 1 July and will then be used in conjunction with the biological methods until the end of December 2014.

The Spanish government as well as the Xunta de Galicia will appeal the decision to implement the new regulation as they feel that the new methods will lead to more frequent closures of shellfi sh areas because it will be easier to detect red tides. Spain considers that the

rat bioassays that were used in the past gave satisfactory results and the new, more expensive chemical analysis will be considerably slower, therefore putting both producers and consumers at a disadvantage according to Francisco Vidal Pardo, technical general secretary at the Ministry of Marine Affairs.

Outlook

The aftermath of the earthquake and tsunami in Japan is likely to be add to uncertainty about supply, imports and exports of all fi sh and shellfi sh species, including bivalve molluscs. However, it is too soon to predict what the impact will be throughout 2011 but it is a factor that should be considered. Already Australian oyster farmers are facing reduced demand for oysters normally imported by Japan and it is known that scallop and oyster farms in the northeast of Japan were badly damaged by the tsunami, including pearl production from oysters.

BIVALVES NEWS

UK: FIRST SCOTTISH ENHANCED FISHERY ENTERS MSC ASSESSMENT

Seafood Shetland in partnership with the Scottish Shellfi sh Marketing Group (SSMG) has entered its mussel fi shery for Marine Stewardship Council (MSC) assessment. If successful, the fi shery’s products will be eligible to bear the MSC eco-label which the partnership believes will be a great boon for the industry, opening up new markets in the UK and further afi eld. The fi shery produces blue mussels (Mytilus edulis) grown on static ropes suspended in the clean waters around Shetland and the Scottish coast. At present, most of the mussels are sold in UK supermarkets, foodservice and an increasing European export market. Support for progressing to full assessment has been provided by The Co-operative Group, by way of a GBP 20 000 (EUR 23 200/USD 31 800) donation from its Sustainable Fishing Fund. The GBP 200 000 (EUR 232 000/USD 318 000) Sustainable Fishing Fund was created in 2008 to improve the sustainability of UK fi sheries. Source: INTRAFISH

Source: EPR

3.003.504.004.505.005.506.006.50

Mar

-07

Jul-

07

Nov

-07

Mar

-08

Jul-

08

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-08

Mar

-09

Jul-

09

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-09

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-10

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10

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In shellEUR/kg

Clam, wholesale Milan origin: Italy

5.25

BIVALVES


Fish and fi shery products statistics1

Capture fi sheries production

Aquaculture fi sheries production Exports Imports

2007 2008 2007 2008 2008 2009 2010 2008 2009 2010

estim. f’cast estim. f’cast

Million tonnes (live weight equivalent) USD billion

ASIA 46.3 46.9 44.2 46.7 35.0 34.1 37.7 32.9 30.5 33.7China2 16.0 16.0 31.7 33.1 12.1 12.2 14.3 8.3 8.3 9.6

of which China, Hong Kong SAR 0.2 0.2 0.0 0.0 0.5 0.8 0.8 2.4 2.5 2.9

& Taiwan Province of China 1.2 1.0 0.3 0.3 1.5 1.2 1.3 0.7 0.8 0.9

India 3.9 4.1 3.1 3.5 1.6 1.6 1.6 0.1 0.1 0.1

Indonesia 5.1 5.0 1.4 1.7 2.5 2.3 2.4 0.2 0.2 0.3

Japan 4.3 4.2 0.8 0.7 1.7 1.6 1.9 14.9 13.2 14.0

Korea, Rep. of 1.9 1.9 0.6 0.5 1.3 1.3 1.5 2.9 2.7 3.2

Philippines 2.5 2.6 0.7 0.7 0.6 0.6 0.6 0.1 0.2 0.2

Thailand 2.3 2.5 1.4 1.4 6.5 6.2 7.1 2.4 2.0 2.1

Viet Nam 2.0 2.1 2.1 2.5 4.6 4.7 5.0 0.5 0.5 0.5

AFRICA 7.2 7.2 0.8 0.9 4.8 4.6 4.8 3.0 3.1 3.4Ghana 0.3 0.4 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.1

Morocco 0.9 1.0 0.0 0.0 1.7 1.5 1.6 0.1 0.1 0.1

Namibia 0.4 0.4 0.0 0.0 0.6 0.6 0.6 0.0 0.0 0.0

Nigeria 0.5 0.5 0.1 0.1 0.1 0.3 0.4 0.6 0.8 0.9

Senegal 0.4 0.4 0.0 0.0 0.2 0.2 0.3 0.0 0.0 0.0

South Africa 0.7 0.6 0.0 0.0 0.5 0.4 0.5 0.2 0.3 0.3

CENTRAL AMERICA 2.0 2.1 0.3 0.3 2.2 1.8 1.9 1.2 1.0 1.1Mexico 1.5 1.6 0.1 0.2 0.8 0.8 0.8 0.6 0.4 0.4

Panama 0.2 0.2 0.0 0.0 0.4 0.3 0.3 0.0 0.0 0.0

SOUTH AMERICA 13.9 13.8 1.4 1.4 10.4 9.4 9.9 1.9 1.9 2.0Argentina 1.0 1.0 0.0 0.0 1.3 1.1 1.2 0.1 0.1 0.1

Brazil 0.8 0.8 0.3 0.3 0.3 0.2 0.2 0.7 0.7 0.8

Chile 3.8 3.6 0.8 0.8 3.9 3.6 3.8 0.3 0.1 0.1

Ecuador 0.4 0.4 0.2 0.2 1.8 1.6 1.7 0.2 0.2 0.2

Peru 7.2 7.4 0.0 0.0 2.4 2.2 2.3 0.1 0.1 0.1

NORTH AMERICA 6.0 5.5 0.7 0.6 8.5 7.8 8.5 16.2 15.1 16.4Canada 1.0 0.9 0.2 0.1 3.7 3.3 3.8 2.0 2.0 2.3

United States of America 4.8 4.4 0.5 0.5 4.5 4.1 4.5 14.1 13.1 14.2

EUROPE 13.2 13.0 2.4 2.3 38.9 35.5 36.9 50.5 46.6 48.2

European Union 2 5.2 5.1 1.3 1.3 26.2 23.6 24.7 44.7 41.4 42.5

of which Extra-EU “ “ “ “ 4.4 3.8 4.1 23.9 22.0 22.2

Iceland 1.4 1.3 0.0 0.0 2.1 1.7 1.8 0.1 0.1 0.1

Norway 2.4 2.4 0.8 0.8 6.9 6.9 7.0 1.2 1.1 1.2

Russian Federation 3.5 3.4 0.1 0.1 2.6 2.3 2.4 2.4 2.0 2.3

OCEANIA 1.3 1.1 0.2 0.2 2.3 2.2 2.2 1.3 1.3 1.4Australia 0.2 0.2 0.1 0.1 0.9 0.8 0.9 1.1 1.1 1.1

New Zealand 0.5 0.5 0.1 0.1 0.9 0.9 0.9 0.1 0.1 0.1

WORLD 3 89.9 89.7 49.9 52.5 102.0 95.4 101.9 107.4 99.5 106.1Developing countries 65.6 66.3 45.9 48.7 51.1 48.8 52.8 24.2 23.4 26.2

Developed countries 24.2 23.4 4.0 3.9 50.9 46.6 49.0 83.2 75.8 79.7

LIFDCs 35.4 35.9 38.8 41.0 19.8 19.5 21.7 8.2 8.4 9.4

LDCs 7.9 8.1 1.8 1.9 2.6 2.6 2.1 0.5 0.5 0.5

NFIDCs 18.2 18.7 2.7 2.9 8.8 8.1 7.9 2.8 2.7 2.91 Production and trade data exclude whales, seals, other aquatic mammals and aquatic plants. Trade data include fi sh meal and fi sh oil. 2 Including intra-trade. Cyprus is included in Asia as well as in the European Union. 3 For capture fi sheries production, the aggregate includes also 63 346 tonnes in 2007 and 59 408 tonnes in 2008 of not identifi ed countries, data not included in any other aggregates.

Totals may not match due to rounding.


SPECIAL FEATURE

Value-addition in the fi sh processing industry - additives and coatings

A changing and globalised world represents a challenge for the food and food processing industry. New trends develop, others disappear and yet others already present become dominant in the market. Quality of food continues to be a major concern for consumers today and thus the fi sh industry must make an effort to supply fi sh and fi sh products that retain all their properties and nutrients as if they had been freshly caught or harvested.

Compared with other foods, fi sh and seafood products are preferred live or fresh with no addition of additives, but as with most food products, seafood may require the use of additives to perform necessary technical functions within the food itself, or during seafood processing. Whether the use of additives needs to be declared will depend not only the applicable legislation but also on the stage at which it was used during seafood processing, or the function it performs in the fi nal product. All additives must be authorised for use in the particular food product.

There are many suppliers of these additives, however it is advisable to use good quality products and necessary to observe not only the legislation currently in force in the destination country to which the fi sh and fi sh products are going to be exported, but also the legislation in force in the country where the additives are going to be used. The Codex Alimentarius provides a worldwide standard, listing and identifying food additives, which forms the basis of the legislation of many countries. The laws of each country cover which additives may be used as ingredients in the manufacture or preparation of food and which may be part of the fi nished product. Food additives may only be authorised if there is a technological need for their use, if they do not mislead the consumer and if they present no hazard to the health of the consumer.

Food additives can be defi ned as: “any substance not normally consumed as a food in itself and not normally used as a characteristic ingredient of food, whether or not it has nutritive value, the intentional addition of which to food for a technological purpose in the manufacture, processing, preparation, treatment, packaging, transport or storage of such food results, or may reasonably be expected to result, in it or its by-products becoming directly or indirectly a component of such foods.”

Food additives must be declared on the label, but food additives can also be authorised for use as a “processing aid”. This is defi ned as: “any substance not consumed as a food by itself, intentionally used in the processing of raw materials, foods or their ingredients to fulfi l a certain technological purpose during treatment or processing, and which may result in the unintentional but technically unavoidable presence of residues of the substance or

its derivatives in the fi nal product, provided that these residues do not present any health risk and do not have any technological effect on the fi nished product.”

Here the substance has been added to aid processing and may or may not be present in the fi nal product. If it has no technological function in the fi nal product it does not need to be included in the labelling; if it continues to have a technological function it should be labelled as an additive.

The use of different additives has increased, enabling the industry to preserve the quality of the seafood, maintaining its organoleptical properties even after being processed and frozen.

Different additives are available, covering a wide range of products for different purposes. These additives can be used to stabilize the natural water content, maintaining freshness and preserving natural nutrients until the product reaches the consumer. The main types of additives are moisture restorers, antioxidants and preservatives, glazing products and measures to control and prevent black spots in shrimps and other crustaceans.

Humectants/moisture restores. After capture or harvesting, fi sh undergo biochemical changes and the pH drops sharply reducing the ability of tissues to retain moisture. This leads to a deterioration of the texture of the fi sh with a subsequent loss of nutrients, minerals and vitamins. Moisture restores have been developed to improve texture by increasing the water holding capacity of the fi sh tissues, enabling industrial handling as well as retaining colour and quality by helping to maintain the optimum pH level. They reduce oxidation and weight loss during the freezing, storage and defrosting processes, retaining the fresh quality of the raw material.

Antioxidants and colour stabilizers. In order to deliver fi sh and fi sh products in good condition to consumers, it is important to guarantee proper handling and preservation. With its high water content, fi sh meat alters easily as a result of oxidizing or freezing processes: a lack of protection will affect the quality of the product causing loss of commercial value and decreasing shelf life. Fat and pigment oxidation can be avoided with the correct use of an antioxidant and a colour stabilizer.

Glazing products. These are especially developed to protect fi sh and fi sh products during freezing process and in storage. During this period, dehydration and freezing burns can occur if the raw material is not properly protected. The glaze also works as a protective layer, to guard against microbial contamination and spoilage. This


gives products gives a shinny appearance. Fish can also be glazed with water/ice, but ice breaks and gives an opaque appearance to the product, so the surface is not clearly visible.

Measures to prevent melanosis/black spots. These measures are specially developed to reduce and inhibit the enzymatic process of melanosis (black spots) in crustaceans. The most common additive is sodium metabisulphite, which is dissolved in water tanks in which shrimp are dipped for a few minutes immediately after being harvested. Although there are no standards regarding this procedure, each company uses a different percentage of sodium metabisulphite according to the length of time the treatment is applied. Proper protection should be used when working with this additive, such as wearing masks and gloves. Sulphur dioxide (SO2) is released when sodium metabisulphite is dissolved in water and there are maximum limits to the amount of SO2 allowed in the edible parts, consequently companies have to be very careful when using it. In recent years alternative products have been developed that are even more effective in preventing melanosis and that do not cause the allergic reaction that can occur when ingesting food treated with sodium metabisulphite. The only disadvantage of these is that the price is quite high.

Many companies could feel tempted to use these products to increase yields and consequently their margins, but consumers have to be protected by the responsible use of such additives in the maintenance of the quality of the fi sh products, instead of trying to be more competitive abusing by consumers.

Additives can be used also in the packaging, where a modifi ed or protective atmosphere would help to preserve the quality of the fi sh for a longer period of time. The modifi cation process often serves to lower the amount of oxygen (O2), moving it from 20% to 0%, in order to slow down the growth of aerobic organisms and the speed of oxidation reactions. The removed oxygen can be replaced with nitrogen (N2), commonly acknowledged as an inert gas, or carbon dioxide (CO2), which can lower the pH or inhibit the growth of bacteria.

The use of modifi ed atmospheres in packaging, however, should not be considered as a mean of recovery or improvement in quality of a food product that is about to expire, but only as an operation of technological support combined with other processes (such as refrigeration, sanitary control, etc.) that helps to achieve the desired effects.

The fi sh processing industry also has to look to the future and the direction consumer demand is taking. Giving added value to the products will make a difference with competitors and allow companies to gain the trust of consumers. To differentiate your product from others is essential, and there are many ways of doing this. The

use of coatings is a good way of adding value to products. This industry started in the 50’s as consumers developed new needs and new life styles. In developed countries, the market for coated products is important but not showing much new growth. Today, although the coatings have evolved, consumers demand new, more innovative products, including organic products, products without gluten and with low oil absorption and perhaps most importantly, products that have health benefi ts.

The market for coated products, however, is growing in developing countries as consumers begin to purchase coated products and it will continue to evolve, trying to differentiate products and making them look more appealing to consumers. There are many factors that also make these types of products attractive for the producer, such as yield improvement and the ability to deliver better visual appeal and fl avour variations, as a unique fl avour profi le sets the product apart from the competition. The use of coatings also reduces oxidation and extends shelf life, as well as protecting the raw material from dehydration and burns.

There is a wide range of applications and coatings that can be applied to fi sh fi llets, fi sh portions, formed fi sh fi llets, croquets, among others. The following are some of the most common coatings.

• Predusts. These are thin coatings applied of the surface of the raw material. It is applied before the batter mix and is an effi cient way of adding special fl avours, as it is not in direct contact with the hot oil used in cooking and the fl avours will be retained.

• Batter mixes. These provide an adhesive layer between the raw material and the outer coating (for example, breadcrumbs).

• Tempuras.These provide a protective outer layer, adding fl avour, colour and a crispy texture.

• Breadcumbs. These are usually used as an outer coating applied after the batter. There are many types of breadcrumbs, including extruded crumbs and gluten free and organic crumbs, which are becoming more important in the market as consumers demand anti-allergy and better quality products.

• Sauces and marinades. With the use of these coatings, companies have to be very careful that they do not encourage microbial growth.

New trends and a growing demand for organic and healthy products by consumers obliges the industry to undertake research and to improve products in order to address consumer needs. There is a shift towards more natural products and also a global concern for sustainable use and the effects of global warming that is affecting consumer behaviour. Health and well-being are further consumer concerns. Current life styles have led to new demands from consumers looking for solutions to the lack of time for preparing food but not wanting to reduce the quality of their diet.

SPECIAL FEATURE

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