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Market Watch

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SPECIES SUPPLY & PRICING UPDATE
atlantic_cod Atlantic Cod Atlantic Cod pricing has increased dramatically in the New Year compared to 2009 and 2010 levels, as H&G supplies have tightened before fishing commences again. We believe prices will soften somewhat from these elevated levels when inventories get replenished, but for now incremental purchases are challenging from a price and availability level.
pacific_cod Pacific Cod The Pacific Cod market has continued to strengthen as of late, mirroring trends in the Atlantic Cod market. While 2011 quotas are anticipated to be up significantly which should eventually put some downward pressure on future pricing, today’s market is characterized by strong demand and limited supply with spot pricing significantly higher than 3-6 months ago. As with Atlantic, we anticipate some price softening as the year progresses and inventories are built back up to historic levels.
n_atlantic_haddock N. Atlantic Haddock The haddock market is active but stable, as stocks continue to recover in the Barents Sea and other North Atlantic fisheries. With vessels actively finding good supplies of Haddock in January, overall haddock pricing continues to be very attractive compared to cod and a great menu alternative.
alaska_pollock Alaska Pollock Heading into the “A” season, the Alaskan biomass is significantly stronger than in past years, and quotas have increased substantially. H&G pricing is favorable as unsold Russian inventory continues to be discounted to stimulate buyer interest. Even though Russian quotas will decline somewhat in 2011, it is anticipated that pricing will be very good on Pollock in the near term given the significant increases coming in Alaskan production.
perch Perch Perch H&G supply in China continues to improve. Pricing has been edging up as of late with Japanese buyers being more aggressive on “A” grade product due to the strength of the Yen. Expect perch pricing to continue to firm slightly in 2011 as a result of this activity as well as ongoing inflation in labor costs and transportation.
wild_salmon Wild Salmon The market for both Pinks and Chums continues to be challenging, as pricing has firmed significantly compared to last year. Supplies are very short now in the market, especially for Pinks, and it is anticipated that it will remain that way throughout 2011. Producers are able to charge more for Pink and Chum salmon that in past years, as traditional sources of salmon for the US market like farmed Atlantics continue to struggle to regain their past volume level, and worldwide demand for Pinks and Chums continues to grow as quality and consistency continues to improve every year.
shrimp Shrimp The commodity shrimp complex continues to feel the aftershocks of the challenging close to the 2010 season. Tigers remain in short supply (especially large sizes) and pricing is still firm as a result of multiple supply issues, as well as increased demand from China. Whites have experienced the same issues, however some price easing on those products is expected as we move further into 2011 and the new harvest comes to market.
tilapia Tilapia Tilapia pricing will be much firmer in 2011 compared to last year's levels as we head into the annual Chinese New Year shutdown period. With strong retail demand early in the season, increased feed and transportation costs, RMB currency strengthening, and ongoing disease issues, farmers are reacting accordingly and adjusting prices to reflect these costs increases. The colder than anticipated Chinese winter may exacerbate some of these trends. New season arrivals in Q3 2011 will bring some relief to the record high pricing of 2010.
striped_pangasius Striped Pangasius The uncertainties associated with the pending farm bill, the evolving duties situation on packers, and the ongoing campaign of the Catfish Farmers of America to denigrate Vietnamese quality continues to exert downward pressure on supplies and upward momentum on pricing. Production of this fish is estimated to be 30-45% less this year and there are discussions of the Vietnamese government setting a minimum floor price. Expect this to be a fluid and challenging species as progress is made slowly but surely in 2011 on the above issues related to striped pangasius.
flats Flats (Flounder/Sole) The current Flatfish market is strong with pricing firming. Large sizes continue to be a challenge across all Pacific flat species as well as with our Yellowtail North Atlantic Flounder. The Canadian Yellowtail product recently attained MSC approval which will increase interest for this species over time. In the near term, Yellowtail supplies will be tight due to fishing and production constraints, though longer term, we do anticipate greater supply of Yellowtail Flounder/Sole due to increased quota by Q3/Q4 2011.
cw_shrimp CW Shrimp The fishing season came to an end abruptly and the late-season storm damage in Newfoundland only served to tighten an already challenging supply situation. Inventories will not be sufficient to bridge the demand gap until new season production is available in June/July 2011. Consequently, pricing will be extremely firm on limited inventory throughout the first half of 2011. Expect shortages in the near term with customers temporarily looking at warm water shrimp alternatives.
atlantic_crab Atlantic Crab The combination of lower catches, stronger demand and the ongoing strength of the Canadian dollar at the close of 2010 has resulted in very firm pricing on Snow Crab. Clusters in particular are in short supply with spot market pricing at multi-year highs currently. Due to last year’s lower pricing, hand picked snow crab combo meat is a good value with expectations for increased demand, though combo meat pricing will rise in 2011 based on this year’s higher cluster pricing.
lobster Lobster The final catch results from Maine and Canada to close out 2010 were solid, with inventory being available although pricing has firmed compared to the lows of the prior two years. Canner size whole cooked lobsters will remain short in supply.