GLOBEFISH Highlights, the GLOBEFISH Research Programme and the GLOBEFISH Commodity Updates

31/10/2014 Issue 4/2014

HIGHLIGHTS A quarterly update on world seafood markets

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

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

This issue of GLOBEFISH Highlights has been prepared by Audun Lem, Paola Sabatini and Karine Boisset with contributions from Shirlene M. Anthonysamy, Felix Dent, Eloisa Espinosa, Fatima Ferdouse, Erik Hempel, María Martí-Fluxa, Marie Christine Monfort, Rodrigo Misa, Ferit Rad, Nianjun Shen, Meyling Tang, Katia Tribilustova and Stefania Vannuccini. Anna Child provided editing services and Turan Rahimzadeh was responsible for the layout. The Norwegian Seafood Council provided data support for the FAO Fish Price Index.

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Bibliographic reference: GLOBEFISH Highlights 2014 A quarterly update FAO/GLOBEFISH Highlights based on (4/2014): p. 62 the GLOBEFISH databank

GLOBEFISH celebrates 30 YEARS! Proud to be part of a strong international network of seafood trade experts Visit our anniversary section at www.globefish.org 1984 – 2014 INSIDE THIS ISSUE...

Global fish economy Tighter supply ahead for seabass and seabream as Tur- New forecasts point to a slowdown in world fish supply growth key eases off production this year, to 1.9% compared with 3.1% in 2013. This is largely A recent Federation of European Aq- the result of lower percentage growth of the world aquacul- uaculture Producers (FEAP) report has ture sector, which has been driving all fish production increases highlighted the lower juvenile produc- for many years now while capture fisheries fluctuates around tion last year in Turkey, a trend which the 90 million tonne mark. The slowing expansion is also pro- is expected to continue in 2014. p. 33 jected to be reflected in world export volumes, although relatively higher growth in total export value shows that prices Norway adapts quickly as Russian ban prompts global are rising overall and demand is still following a strong upward salmon market shuffle trajectory. p. 2 In the wake of the Russian ban on imports of seafood from certain Western International shrimp trade grows countries, exporters and importers During the first half of 2014, the alike have scrambled to secure new volume traded in the international trading partners to minimize disruption to supply chains and shrimp market increased by 5-6% the resulting loss of revenue. p. 38 compared with the same time period in 2013, mostly as a result of import TAC for mackerel, herring, blue whiting and capelin all growth in US and East Asian markets. p. 4 cut Based on scientific advice, ICES has rec- Traditional large markets for canned tuna failed to re- ommended significant cuts in the TACs cover during the first half of 2014 for mackerel, herring, blue whiting and During the first half of 2014, there capelin. At the same time, the organiza- were mixed trends in the global mar- tion claims that several species, such as mackerel, hake, and ket for canned and non-canned tuna monkfish have recovered. The situation for herring, however, is products. While the large traditional not so bright. p. 44 markets imported less compared with last year, import demand improved in both large and small Increased demand and limited volume available keep emerging markets. p. 12 fishmeal and fish oil prices up in the first half of 2014 While Peru’s total allowable catch (TAC) Cod prices rising in spite of record supplies for anchovy for the 2014 winter was set Cod prices are on the rise in major at 2.53 million tonnes, 23% more com- markets with a number of factors con- pared with the same time period for tributing, including a lower TAC, the 2013, the actual catch was lower than Russian ban on imports from western expected. Fortunately, the pressure on countries, and the Russian Federation withholding cod for its the prices from the short supply was offset partially by delayed own domestic consumption. p. 19 buying decisions due to weather uncertainty indicated by abnormal sea temperatures. Nevertheless, fishmeal prices again Improved supplies of octopus – slower trade in squid showed a significant increase beginning in June when buyers re- and cuttlefish alized that the TAC quota would not be met this season. p. 49 Contrary to expectations, octopus is now in good supply from Northwest First half of 2014 shows a vibrant oyster market Africa, but inventories have built up The first half of 2014 was characterized and put further pressure on prices. by a dynamic market for oysters and the Consequently, fishermen in Morocco consolidation of markets for mussels and and Mauritania stopped landing octopus, and prices in Japan scallops. During this period, interna- are now expected to increase. p. 24 tional trade was impacted by two main factors: water quality issues with the possible presence of virus Steady demand balanced by consistent supply and the appearance of trade obstacles, such as the embargo Global tilapia production is expected on European exports of food products to Russia. On a positive to almost double from 4.3 million front, the free trade agreement between Canada and Europe tonnes per year in 2010 to 7.3 million must be noted. p. 52 tonnes a year in 2030. With these estimates, tilapia will likely be one of the main contributors to the fastest growth in global aquaculture aside from carp and catfish. p. 28 SPECIAL FEATURE Demand continues to pick up in non-major markets Recent developments and trends in the Spanish seafood With the largest producing country p. 58 Viet Nam planning for higher produc- market tion along with steady production from other producers, supplies of pangasius will remain stable. . p. 31 Fish and fishery products statistics p. 62 GLOBAL FISH ECONOMY

New forecasts point to a slowdown in world the case of cod, for example, it is possible to fish supply growth this year, to 1.9% compared redirect the substantial Russian catch to meet with 3.1% in 2013. This is largely the result of a domestic demand, while for salmon Norwegian lower percentage growth rate in the world aq- supplies must be replaced by Chilean or Faro- uaculture sector, which has been the driver of ese salmon or perhaps partly by Turkish bass all fish production increases for many years now and bream. The subsequent short-term price as capture fishery supplies fluctuate around the development then depends how swiftly other 90 million tonne mark. The slowing expansion importers and exporters can identify new trad- is also projected to be reflected in world ex- ing partners, match product requirements and port volumes, though relatively higher growth adapt their logistics to move excess supply or to in total export value demonstrates that overall, make up shortfalls. For many countries, and not prices are rising and demand continues to follow only those excluded for the ban, the situation a strong upward trajectory. The major unknown represents an opportunity to gain a foothold in now is the extent to which apparent limits on previously less accessible markets. Although the maximum size of the aquaculture industry the picture is still not completely clear, so far can be overcome by technological advances and it appears that the impact of the ban has been by innovations in feed that reduce farmed fish relatively well absorbed by the markets. dependency on their wild counterparts.

On the market side, the large emerging markets of China, the Republic of Korea and Brazil continue to expand rapidly, while Mexico is increasingly becoming an important export destination for Latin American producers of high-value species such as shrimp and salmon. World fish market at a glance However, it is in fact the USA that is the stand- 2012 2013 2014 Change: 2014 out performer so far in 2014. On its current tra- estim. f'cast over 2013 jectory, the US market could grow by some 18% million tonnes % in value terms this year, as consumer demand is WORLD BALANCE supporting high prices for multiple species. Of the other major markets, growth in the EU has Production 158.0 162.9 165.9 1.9 been reasonably steady on the back of a some- Capture fisheries 91.3 92.4 92.0 -0.4 what hesitant economic recovery, while Japan Aquaculture 66.6 70.5 73.9 4.9 continues to decline but at a slower rate. Trade value (exports USD billion) 129.4 136.4 145.4 6.6

Trade volume (live Another important event in the seafood in- weight) 58.1 58.8 59.4 1.0 dustry this year has been the Russian ban on im- Total utilization 158.0 162.9 165.9 1.9 ports from a number of major Western producing Food 136.2 141.1 144.6 2.5 countries, with Norway a notable example. Giv- Feed 16.3 16.8 16.6 -1.2 en that the Russian Federation imports seafood Other uses 5.4 5.0 4.7 -6.0 products worth over USD 3 billion each year, the ban could have significant effects on the struc- ture of the global market for as long as it re- SUPPLY AND DEMAND INDICATORS mains in force. The exact nature and magnitude Per caput food consumption: of these effects for different species depends Food fish (kg/year) 19.2 19.7 20.0 1.4 on a number of factors, primarily the degree of From capture fisheries (kg/ 9.8 9.9 9.8 -1.0 market globalization, the substitutability of the year) product, and whether or not the Russian Fed- From aquaculture (kg/year) 9.4 9.8 10.2 3.7 eration has significant domestic production. In Totals may not match due to rounding.

2 Globefish Highlights October 2014 GLOBAL FISH ECONOMY

After hitting a record high earlier this year, the FAO Fish Price Index fell back in the second quarter of 2014, although it is still higher than compared with the same period last year. The major contributor to the drop was the aquaculture sub-index, particularly shrimp and salmon. In the latter case, the price fall can be attributed to higher supply growth and earlier harvesting in Norway this year. For shrimp, it is more a case of alternative producers such as India, Indonesia and Ecuador boosting volumes to take pressure off prices, which had developed after disease issues in Thailand, China and Mexico. Meanwhile, capture fisheries has been fluctuat- ing as positive development for certain important whitefish species such as cod is offset by weak demand for tuna in developed markets.

The FAO Fish Price Index (100=2002-2004)

180

160

140

120

100

60 TOTAL AQUACULTURE 40 CAPTURE

Data Source: Norwegian Seafood Council

Globefish Highlights October 2014 3 SHRIMP

International shrimp trade grows, supported largely by increased imports by the US and East Asian markets

During the first half of 2014, the volume traded in the international shrimp market increased by 5-6% compared with the same time period in 2013, mostly as a result of import growth in US and East Asian markets. In terms of farmed shrimp production, positive trends have been posted so far in Ecuador, Indonesia, Viet Nam and India but supply shortfalls in Thailand, China and Mexico are higher than forecasted. As a result, the level of current supply is lower than the early-year forecast, which has kept shrimp prices stable in the global market.

Shrimp production by species (2012)

Penaeus vannamei Others 32% 42%

Akiami paste shrimp 8%

Northern prawn 4% Giant tiger prawn Source: FAO 14%

hatcheries and farms. Hatcheries in Hainan lost thousands Supply of brood stocks and post larvae, with seed production in this area reduced by almost 50%, a significant negative In Asia, the seasonal peak of farmed shrimp was impact to shrimp farming in the southern provinces. delayed due to hot/dry weather and the late arrival of Subsequently, vannamei shrimp supplies were limited monsoon season. Overall, supplies were low to moderate from Hainan, Guangxi and Guangdong with rising ex-farm in the producing countries during the April-October prices. period. Moreover, the aquaculture areas affected by EMS in Southeast Asia and Latin America have not been able While EMS disease persists in affected areas in to recover fully yet. Viet Nam, new areas in the country have evolved for vannamei farming. Some farmers also moved away from In Thailand, the main production period was delayed rice to shrimp farming due to increased salinity in waters till August, with harvests mostly consisting of small sized in the Mekong Delta. These developments have given Viet shrimp as farmers avoided a longer farming period. Nam a recent boost in vannamei shrimp production. For Therefore, the total production of shrimp in 2014 is likely black tiger shrimp, production has declined marginally in to be below 200 000 tonnes in Thailand, which is lower Ca Mao and Bac Lew but increased by more than 15% in than the earlier forecast of 250 000 tonnes. Kien Giang where some farmers have moved back to this species due to the price weakening of vannamei during In Southern China, a strong typhoon hit shrimp the first quarter of the year. The industry association aquaculture areas in July, causing extensive damage to the in Viet Nam, VASEP, reported that total production of

4 Globefish Highlights October 2014 SHRIMP farmed shrimp through mid-August was 317 305 tonnes June 2014 against the same period last year, with a firm in which 152 035 tonnes were black tiger shrimp. Frozen and steady price trend. The top ten importers, namely shrimp imports, both vannamei and black tiger, continue the EU, the USA, Japan, Viet Nam, Republic of Korea, to come into the country from Latin America and other China, Hong Kong SAR, Mexico, Canada and Australia, Asian countries for export processing. bought a total of nearly 850 000 tonnes of shrimp during this period. The demand trend was mixed in these In India, vannamei production increased moderately markets; imports declined in Japan, Hong Kong SAR and while black tiger production is on the decline. Until Canada but remained positive in the others. September, ex-farm prices continued an upward trend due to supply demand imbalance and good import demand It is also interesting to note the trend in exports from East Asia. The official forecast in India suggests that during this period, in which Ecuador was the top supplier, farmed shrimp production, dominated by vannamei, may very closely followed by India. The average monthly increase by 10-20% during the current fiscal year (April exports from each of these countries were nearly 24 000 2014-March 2015). Production of black tiger shrimp is tonnes. The other leading exporters are Viet Nam, China, likely to decline at the same rate as many farmers in Indonesia and Thailand. Monthly exports from China and the northeast aquaculture belt have moved to vannamei Indonesia were about 13 000 tonnes each. The export aquaculture this year. volume from Viet Nam is not officially reported, but it is known to be higher than China and Indonesia. In Latin America, farmed shrimp production is generally good and stable, particularly in Ecuador, Japan Honduras, Nicaragua, and Peru. However, production continues to be lower in Mexico as a result of EMS. In a The Japanese market, the third largest shrimp precautionary measure related to the EMS issue, Peru has market globally, continues to import less shrimp as a suspended imports of shrimp from China, Thailand, Viet result of the yen devaluation beginning in December Nam, Malaysia, India and Mexico for the next year. 2012. In late September 2014, the yen dropped to a six year low at yen 110 equal to USD 1 creating panic in Landings from capture fisheries the market. Prices have also started to move up in yen along the distribution chain, causing serious concern in US domestic shrimp landings in August increased by the trade prior to the year-end high consumption season. 6.3% to 8 534 tonnes compared with the same month last Prices are expected to increase further by 10% due to this year. However, cumulative landings for January-August factor, which is a bad news for marketers in Japan. The were lower than last year’s at 26 924 tonnes. import price of farmed shrimp has already increased by USD 3.00 per kg during the June-September period. Import and export trends

According to INFOFISH estimates, the volume import in global shrimp trade increased by 5-6% during January- Imports Shrimp (frozen): Japan Jan-Jun Imports 2009 2010 2011 2012 2013 2014 Shrimp (by product): Japan (1 000 tonnes) Jan-Jun Viet Nam 14.0 16.3 13.0 14.1 14.8 12.3 2009 2010 2011 2012 2013 2014 Indonesia 17.3 15.7 15.1 15.1 16.6 10.5 (1 000 tonnes) Argentina 0.7 0.9 2.3 3.7 4.8 8.9 Live 0.1 0.1 0.0 0.3 0.5 0.2 India 9.2 9.1 8.1 10.1 11.9 7.5 Fresh/chilled 0.0 0.0 1.0 - 0.6 0.1 Thailand 14.1 17.6 15.8 16.2 12.0 4.7 Frozen, raw 85.2 86.4 83.6 85.7 84.5 65.4 China 5.4 5.5 7.1 6.5 5.3 4.6 Dried/salted/in brine 1.8 1.5 1.6 1.4 1.0 1.0 Russian Fed. 4.5 4.4 4.4 3.8 3.7 3.9 Cooked, frozen 8.7 9.7 9.8 11.3 11.9 9.5 Canada 3.9 3.4 2.9 2.9 2.0 2.6 Cooked & smoked 0.1 0.1 0.2 0.2 0.1 0.1 Myanmar 3.1 2.1 2.6 2.4 2.2 2.1 Frozen ebi ** ** ** ** 0.2 0.2 Greenland 3.9 2.2 1.9 1.5 2.0 1.6 Prepared/preserved* 20.9 21.3 23.6 23.2 23.1 16.9 Malaysia 2.4 3.1 4.5 3.5 2.5 1.5 Sushi (with rice) 0.1 0.7 1.5 1.0 1.2 0.8 Bangladesh 1.5 1.4 1.2 1.2 1.9 1.3 Total 116.9 119.8 121.3 123.1 123.1 94.2 Others 5.3 4.7 4.9 4.9 4.8 4.0 *(incl. tempura shrimp ) ** (included under others) Total 85.2 86.4 83.7 85.7 84.6 65.4 Source: Japan Customs Source: Japan Customs

Globefish Highlights October 2014 5 SHRIMP

White Shrimp in Japanese market, Imports origin Indonesia Shrimp: USA 30 USD/kg Jan-Jun 2009 2010 2011 2012 2013 2014 25 (1 000 tonnes) Indonesia 40.1 29.4 35.3 37.4 35.8 48.0 20 Ecuador 33.3 35.8 35.0 44.1 39.2 46.7 16/20 India 8.6 7.3 14.9 20.5 36.8 40.7 15 Viet Nam 14.6 14.1 16.9 16.8 19.0 33.6 Thailand 73.4 81.4 77.0 60.1 41.1 26.0 10 31/40 China 17.5 18.8 16.2 16.2 16.1 16.5 Malaysia 7.4 9.1 9.2 10.9 8.4 7.4 5 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Peru 5.2 4.2 4.9 4.6 5.5 6.7 Source: Infofish ITN Mexico 12.4 10.5 6.7 10.8 7.4 4.7 Guyana 5.8 4.3 4.0 6.1 4.8 4.0 Others 18.1 14.1 12.3 12.5 9.8 14.3 Total imports during the first half of the year were 28 Total 236.3 229.0 232.4 239.8 223.9 248.6 200 tonnes below the same period last year. The market Source: NMFS share of tropical shrimp has been increasingly taken over by the cheaper cold-water prawn, particularly from Argentina and The Russian Federation. Imports of raw, frozen cold-water shrimp were 34% higher during this period at 17 037 tonnes but the large decline in tropical shrimp (-23,491 tonnes), was not compensated for. The top five shrimp suppliers to Japan for the period were Viet Nam, Thailand, Indonesia, Argentina and China. Imports In this price sensitive market, supplies of value added shrimp, generally exported by Thailand, Viet Nam Shrimp: USA and China, have also been affected. Jan-Jun 2012 2013 2014 Until June, monthly imports of raw frozen shrimp Product remained below 10,000 tonnes impacting the cumulative 1 000 million 1 000 million 1 000 million tonnes USD tonnes USD tonnes USD volume during the first half of the year. Indeed, supplies declined by 22.6% compared with the same period last Peeled frozen 90.5 821.2 93.4 846.1 102.4 1 303.9 year. Other frozen 33.8 330.8 27.1 272.9 33.0 474.1 Breaded 18.4 125.1 16.4 109.2 19.8 176.1 Within the domestic wholesale trade, shrimp prices have increased in Japan since July, while local inventories Other prep 1.3 7.3 1.1 6.4 1.1 6.5 remain lower than compared with other years. Headless shell-on frozen All sizes 94.7 777.1 84.3 772.5 90.8 1 073.1 < 15 8.4 123.1 7.2 112.2 6.8 122.8 In the retail trade, demand for farmed shrimp is 15/20 8.7 87.3 6.4 69.1 6.8 100.7 bound to decline due to rising prices. Marketers are likely 21/25 11.9 104.2 12.7 129.3 12.8 170.8 to promote the Argentinean seabob shrimp during the 26/30 14.8 123.6 14.4 134.5 14.7 182.9 Christmas and New Year season. 31/40 17.7 128.8 16.4 136.5 15.9 178.2 USA 41/50 11.8 79.7 11.8 89.5 12.0 121.4 51/60 10.2 65.0 8.1 56.3 10.7 102.5 Total shrimp supply in the US market is up with 61/70 6.3 39.0 4.1 26.8 6.2 55.2 continued growth expected. Despite falling production > 70 4.7 26.6 3.1 18.3 4.9 38.6 and exports from Thailand, imports continue to grow Other from other sources in Asia and Latin America. So far the products 1.2 7.8 1.5 19.5 1.3 18.4 situation has not had a serious impact on prices, which are Total 239.8 2 069.3 223.9 2 024.8 248.6 3 052.1 still at historically high levels and stable, demonstrating Source: NMFS that demand is in balance with supply.

6 Globefish Highlights October 2014 SHRIMP

Shrimp prices (16-20 count) in main wholesale This summer, demand was strong in both restaurants markets, USA and Japan and in supermarkets primarily driven by consumer confidence, improved disposable income and employment 10 opportunities. With market indicators such as an upward USD/lb trending US stock market and gasoline prices on the 9 Gulf brown, New York decline, the middle to upper class consumers, the 8 primary audience for shrimp in the USA, now have more disposable income. 7

6 During the first half of 2014, relatively large imports of shrimp from Indonesia (+34%), Ecuador (+19%) and Viet 5 Nam (+77%) pushed the total import volume of shrimp into the USA at 11% higher compared with the same time 4 Indian white, Tokyo period last year. Notably, supplies were up for all types 3 of product groups, including shell-on/easy-peel, semi- Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 processed and processed, contributing to a much higher Source: Infofish ITN percentage rise in the import value (+50%) that crossed USD 3 billion during the January-June period this year. Although rising shrimp prices were given as the reason for this development, it is also this import growth that Imports/Export contributed to the hefty increase in value. Indonesia was Shrimp: EU-28 the top supplier during this period; the average import price of Indonesian shrimp increased by 40% which could Jan-Jun be linked to higher volume imports of large sized shell- 2009 2010 2011 2012 2013 2014 on/easy-peel shrimp (un/15 through 21/25) (+35%) and (1 000 tonnes) also all types of peeled shrimp (+40%). Similarly, imports IMPORTS of peeled shrimp (including peeled tail-on or PTO, Ecuador 32.8 37.0 48.6 44.1 41.5 46.4 butterfly-cut etc.) were 70% and 30% higher from Viet India 29.8 27.1 29.0 26.3 29.7 40.9 Nam and Ecuador respectively. The rise in Indian shrimp imports was moderate at 10%. Greenland 32.9 31.8 34.7 28.4 30.4 28.3 Denmark 22.9 24.7 22.4 19.8 23.1 21.8 In August and September, the Department of Viet Nam 10.3 15.3 20.3 15.5 14.8 19.2 Commerce upheld higher duty rates for Thai, Indian and Argentina 13.9 11.5 17.9 13.9 14.9 17.7 Vietnamese shrimp exporters, which were preliminarily Netherlands 16.8 18.0 22.0 20.1 16.3 16.5 raised in March. Bangladesh 16.1 16.8 17.5 15.7 15.8 14.3 Canada 15.7 14.3 14.1 16.5 11.5 12.3 EU China 16.1 17.7 20.1 18.0 15.7 11.8 Import demand for shrimp remains selective in the Belgium 10.4 10.9 13.8 11.2 10.6 10.9 EU. Asian processors are constantly asked to produce Spain 9.0 10.3 10.1 12.8 10.6 10.7 frozen products with 20-30% glaze though the market is Morocco 7.1 7.0 7.2 7.2 6.0 7.6 unable to support high prices. There are more imports Thailand 18.9 28.7 28.6 24.9 16.7 7.4 from Latin America, namely Ecuador, Nicaragua and Indonesia 12.3 11.0 10.3 5.8 5.4 7.3 Honduras due to the preferential tariff rates. Others 78.4 74.4 71.6 67.0 61.5 65.1 During the first half of 2014, shrimp imports into the Grand Total 343.4 356.8 388.0 347.1 324.6 338.1 EU from third countries (extra-EU imports) were almost Total Intra 6% higher at 253 600 tonnes compared with the same Imports 85.6 92.4 98.4 88.2 85.1 84.5 period last year. Ecuador, the top supplier, increased Total Extra Imports 257.8 264.4 289.6 258.9 239.5 253.6 supply by 12.7% and had an 18.7% share in total imports. India was the second leading supplier with a 38% rise in EXPORTS exports. Imports from Indonesia also increased by 35% Grand Total 167.9 168.3 180.6 158.0 149.5 143.7 while Thai exports dipped strongly by 55% following Total Intra the withdrawal of GSP on Thai shrimp in the EU market Exports 119.7 122.1 136.9 121.5 115.7 111.0 beginning in January 2014. Total Extra Exports 48.1 46.2 43.7 36.5 33.7 32.7 Nicaragua and Honduras export shrimp at zero Source: EUROSTAT import duty to this market area, and thus increased supplies by 25% and 31% respectively during this period.

Globefish Highlights October 2014 7 SHRIMP

Imports Imports Shrimp: Denmark Shrimp: UK Jan-Jun Jan-Jun 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 (1 000 tonnes) (1 000 tonnes) IMPORTS India 3.5 3.4 3.5 3.7 4.2 5.3 Greenland 31.6 30.8 33.8 27.5 29.7 27.4 Bangladesh 2.8 2.8 3.0 2.9 3.7 3.8 Canada 10.2 7.0 6.3 9.7 7.1 7.1 Denmark 4.7 4.6 4.0 3.3 3.9 3.4 USA 0.1 0.3 0.4 1.1 1.1 1.5 Thailand 4.7 6.5 8.1 9.4 7.1 3.4 Faroe Islands 1.7 1.2 0.2 0.6 0.5 1.2 Canada 2.3 3.1 3.4 3.8 2.8 3.3 Viet Nam 0.6 0.7 0.9 1.0 0.8 1.1 Viet Nam 1.3 2.2 2.9 2.4 2.4 2.4 India 0.3 0.3 0.3 0.2 0.4 0.8 Iceland 3.7 3.5 2.7 2.7 1.9 2.3 Others 5.8 5.6 5.1 4.5 5.5 5.1 Indonesia 3.7 3.5 3.7 1.6 2.0 2.1 Total 50.3 45.9 47.0 44.6 45.1 44.2 Others 6.8 6.8 7.4 7.9 7.0 7.0 EXPORTS Total 33.5 36.3 38.7 37.8 35.0 33.0 Sweden 9.8 9.2 10.8 10.7 11.3 11.0 Source: Her Majesty's Revenue & Customs UK 6.2 5.9 5.1 4.3 4.8 4.7 Italy 2.6 2.7 2.5 2.3 3.4 3.6 Imports Norway 3.8 3.9 4.0 3.5 3.8 3.6 Shrimp: France Germany 3.6 3.2 3.4 3.3 3.2 3.2 Jan-Jun China 3.8 2.8 3.7 2.4 3.4 3.2 2009 2010 2011 2012 2013 2014 Russian Fed. 10.6 7.3 4.6 3.7 2.9 3.1 (1 000 tonnes) Morocco 2.1 2.4 1.8 1.1 2.7 2.4 Ecuador 7.9 12.3 12.9 13.7 16.7 16.1 Netherlands 2.7 2.5 2.2 1.5 1.3 2.2 India 5.5 5.9 5.9 6.3 6.5 7.8 Greenland 1.3 0.4 1.0 0.0 1.1 2.1 Viet Nam 1.5 2.6 2.3 2.1 2.2 3.5 Others 9.4 10.3 11.2 9.3 8.3 8.2 Venezuela 1.7 1.8 1.7 2.8 2.8 3.3 Total 56.0 50.6 50.3 42.2 46.1 47.4 Netherlands 3.0 2.8 3.0 3.3 3.4 2.8 Source: EUROSTAT Madagascar 3.2 3.1 2.8 2.9 2.6 2.3 Spain 1.3 2.7 2.2 2.8 2.0 1.8 Bangladesh 1.5 2.3 2.5 1.8 2.6 1.6 Imports Others 18.8 19.3 15.6 14.6 10.6 9.4 Shrimp: Spain Total 44.4 52.8 48.9 50.3 49.6 48.6 Jan-Jun Source: Direction Nationale des Statistiques du Commerce 2009 2010 2011 2012 2013 2014 Extérieur – DNSCE (1 000 tonnes) IMPORTS Imports Ecuador 7.7 8.3 15.4 13.5 10.7 14.1 Shrimp: Italy Argentina 11.6 8.3 14.4 11.4 11.1 12.9 Jan-Jun China 10.6 10.1 11.6 9.4 7.9 6.3 2009 2010 2011 2012 2013 2014 Morocco 2.9 2.2 2.3 2.2 1.9 2.4 (1 000 tonnes) Nicaragua 1.5 0.9 1.0 1.5 1.3 2.0 Ecuador 9.2 10.6 11.0 9.5 9.3 10.8 Others 22.8 24.9 28.3 20.0 18.4 20.0 India 2.3 2.9 3.3 2.5 2.6 3.5 Total 57.3 54.6 72.9 58.0 51.3 57.8 Spain 2.7 2.4 3.0 3.6 4.0 3.0 EXPORTS Argentina 2.0 2.8 3.0 1.9 2.6 3.0 Italy 4.9 4.9 8.9 7.1 7.5 5.5 Denmark 2.1 2.3 2.1 1.3 1.7 2.2 Portugal 3.5 3.5 3.5 3.8 3.0 4.4 Netherlands 1.6 2.0 2.6 2.1 1.1 1.8 France 3.9 3.2 3.0 4.5 3.3 2.4 Viet Nam 0.6 1.0 1.2 0.5 0.9 1.1 Others 2.2 1.5 2.6 2.9 2.6 3.1 Others 7.5 7.0 7.0 4.5 4.8 4.2 Total 14.6 13.1 17.9 18.3 16.3 15.4 Total 28.1 31.0 33.3 25.9 26.9 29.8 Source: Agencia Tributaria Source: ISTAT

8 Globefish Highlights October 2014 SHRIMP

Imports/Exports Imports Shrimp: Belgium Shrimp: Germany Jan-Jun Jan-Jun 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 (1 000 tonnes) (1 000 tonnes) IMPORTS Viet Nam 3.3 3.8 6.7 4.7 3.7 4.1 India 6.0 4.1 7.4 5.6 8.0 10.8 Netherlands 2.9 3.1 3.7 3.3 3.2 3.1 Netherlands 5.5 6.1 8.9 8.3 5.5 5.5 India 3.3 2.7 2.2 2.2 2.4 2.3 Bangladesh 5.0 4.9 5.7 3.6 3.1 3.5 Bangladesh 3.3 2.6 2.8 3.7 2.9 2.3 Viet Nam 1.3 2.2 2.0 1.3 1.9 3.0 Thailand 5.3 6.3 5.3 5.4 4.0 2.3 Ecuador 4.1 2.5 5.6 3.7 1.3 1.5 Belgium 1.8 2.5 2.2 1.8 1.8 1.8 Others 8.8 9.4 8.6 5.9 4.7 3.8 UK 0.9 1.6 1.3 1.3 1.3 1.7 Total 30.7 29.2 38.1 28.3 24.4 28.0 Others 6.7 6.3 6.8 6.6 5.2 5.6 EXPORTS Total 27.4 28.8 30.8 28.8 24.5 23.3 France 9.5 8.4 12.9 8.6 5.9 5.4 Source: Germany Customs Netherlands 2.8 3.1 4.8 4.6 3.9 4.0 Spain 2.6 2.6 2.7 2.5 2.7 2.8 Germany 2.6 3.1 2.7 2.6 2.4 2.6 UK 2.3 1.7 1.1 0.5 1.1 1.2 As a single import market, Spain and France were Italy 1.0 0.6 0.7 0.4 1.1 1.0 the lead importers followed by the UK, the Netherlands, Italy, Belgium and Germany. Others 2.9 2.8 3.3 3.3 3.1 2.7 Total 23.6 22.3 28.2 22.6 20.2 19.7 In Spain, Ecuador continues to dominate the market Source: EUROSTAT with increased supply, while imports also increased from Argentina, Morocco and Nicaragua. Imports/Exports In France, overall imports declined with lower supply Shrimp: Netherlands from Ecuador though imports increased from India, Viet Jan-Jun Nam and Venezuela. 2009 2010 2011 2012 2013 2014 (1 000 tonnes) In Denmark, the reprocessing industries imported less during the first half of the year compared with the IMPORTS first half of 2013, but exported more when comparing the India 5.2 4.7 3.3 2.9 2.8 6.4 same time periods. Morocco 3.5 4.0 4.1 4.5 3.1 4.0 Belgium 1.7 2.3 4.3 3.7 3.1 3.3 On 17 July, the EU and Ecuador signed a deal which Indonesia 2.8 2.8 2.1 1.6 1.4 2.7 will allow the country to join its Andean neighbours Bangladesh 2.6 2.9 2.5 2.5 1.9 1.9 Peru and Columbia in its trade agreement with the EU. Denmark 1.8 2.2 1.8 1.3 1.0 1.8 According to the European Commission, the terms of the new agreement go beyond the unilateral EU-GSP Viet Nam 0.8 0.9 1.9 2.0 1.6 1.6 for which Ecuador is no longer eligible. However, it will Germany 3.8 3.9 4.9 3.8 2.8 1.5 allow Ecuador, the number one exporter of shrimp to the Others 9.6 7.0 8.9 8.7 6.7 6.8 EU, to benefit from improved access for its main exports Total 31.9 30.8 33.9 30.9 24.3 29.9 including fishery products to the EU markets. EXPORTS Morocco 12.1 13.3 13.7 11.7 10.2 11.3 The Russian Federation Belgium 6.4 6.9 7.5 6.0 5.1 5.3 Germany 5.0 5.5 6.8 5.8 5.3 5.3 The imposition of an import ban from EU to The Russian Federation will undoubtedly affect imports from France 6.8 7.6 6.8 5.9 4.4 3.4 this source, particularly for Denmark and Greenland. Spain 2.4 1.0 0.8 1.2 1.0 1.4 During January-April 2014, Russian shrimp imports from Italy 0.9 1.4 1.8 1.4 0.8 0.9 Denmark were over 2 000 tonnes. As an alternative source, Others 3.3 2.4 1.4 1.5 1.5 1.3 Argentina has increased shrimp supplies to this market by Total 36.8 38.0 39.0 33.6 28.4 28.8 73% during this period at 534 tonnes and demand may Source: EUROSTAT increase this volume further.

Globefish Highlights October 2014 9 SHRIMP

Black Tiger - In Europe, origin: Bangladesh Imports/Exports Bangladesh BT, HL Shrimp: China USD/kg 16/20, c&f Jan-Jun 17.0 2009 2010 2011 2012 2013 2014 15.0 (1 000 tonnes) 13.0 15.00 IMPORTS 11.0 9.0 Canada 5.3 5.0 5.3 7.5 6.4 7.4 7.0 Ecuador 0.1 0.8 2.1 1.7 3.7 5.7 Thailand 2.5 6.1 3.2 4.6 4.9 3.7 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 May-10 May-11 May-12 May-13 May-14 India 1.0 1.0 1.3 1.3 3.0 2.6 Greenland 3.4 4.5 2.4 1.7 2.6 2.3 Argentina 0.2 0.1 0.3 0.8 1.6 2.3 Others 9.8 7.8 9.5 6.2 5.4 8.2 Whiteleg shrimp - Penaeus vannamei Head-on, shell-on, for EMP, origin: Ecuador (fob) Total 22.2 25.3 24.2 23.8 27.7 32.1

40-50 pc/kg EXPORTS USD/kg Japan 15.7 17.9 35.5 21.1 15.1 15.6 USA 18.8 16.9 14.2 15.4 15.6 14.8 11.00 Malaysia 6.0 9.2 8.8 12.2 19.5 10.2 9.50 8.50 8.00 Hong Kong 6.50 SAR 5.2 8.6 10.5 7.8 12.6 9.7 5.00 3.50 Spain 10.9 9.3 9.2 8.7 8.2 6.2 Australia 2.3 3.9 3.0 4.9 3.6 6.2 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 May-10 May-11 May-12 May-13 May-14 Republic of Korea 12.6 9.6 12.5 14.8 10.4 5.6 Taiwan PC 3.2 3.6 4.2 5.0 5.9 5.2 Mexico 2.4 5.4 5.2 3.7 4.4 3.9 30-40 pc/lb Whiteleg shrimp - Penaeus vannamei Russian Fed. 2.4 5.6 4.7 5.7 6.0 3.9 Head-on, shell-on, In Spain, origin: Central America 40-50 60-70 100-120 Canada 2.7 4.6 2.7 5.4 2.5 2.8

EUR/kg Others 11.8 14.7 15.6 15.3 18.4 13.8 Total 94.2 109.2 126.1 120.1 122.2 97.9 10.25 9.50 Source: China Customs 9.25 8.70 8.25 7.25 6.85 6.25 5.25 5.70 4.25 Asia/Pacific 3.25 The large shrimp importers in the Asian/Pacific Jul-13 Jul-14 Jan-13 Jan-14 Mar-13 Mar-14 Nov-12 Nov-13 Sep-12 Sep-13 Sep-14 May-13 May-14 region are Viet Nam, China, Republic of Korea, Hong Kong SAR and Australia.

According to INFOFISH analysis, Viet Nam is possibly Argentina Red Shrimp - Pleoticus muelleri > 10-20 pc/kg the number one import market for farmed shrimp in the Head-on, shell-on, In Spain, origin: Argentina > 20-30 > 30-40 Asian/Pacific region with estimated imports of frozen > 40-60 > 60-80 shrimp for the first half of 2014 at 50 000 tonnes. Ecuador EUR/kg and India were the main suppliers with imports also 10.75 increasing from Indonesia, Bangladesh and others. Most 8.50 9.25 7.70 of these volumes are reprocessed for export markets. 7.75 7.30 6.25 7.10 4.75 China mainly imports for domestic consumption with 3.25 supplies of both cold and warm-water shrimp increasing into the market during the first half of 2014 compared Jul-13 Jul-14 Jan-13 Jan-14 Mar-13 Mar-14 Nov-12 Nov-13 Sep-12 Sep-13 Sep-14 with the same period last year. This trend continued May-13 May-14 during July-September in order to procure supply for the Mid-Autumn festival held in early October. Industry Graphs source: European Price Report sources indicate that actual import volumes, particularly from Viet Nam and Myanmar, are much higher than official

10 Globefish Highlights October 2014 SHRIMP figures due to undocumented border trade. In Ecuador, shrimp producers are planning to increase production during the next harvesting season. However, The shortage of farmed shrimp supply, however, has the next season’s supply will not be in the market before affected Chinese exports during the reporting period. March/April.

Maldives has emerged as a niche market for its Japan has become less attractive for vannamei neighbouring countries. Indeed, Indian shrimp exports shrimp exporters, while limited demand for black tiger to this destination were 133 tonnes during January-May shrimp will continue to cater to the high-end market 2014 and Sri Lanka exported 55 tonnes during January- during the year-end festival season. For cold-water June 2014. Maldives has a large tourism-based catering shrimp, Japanese importers will also have to compete industry that requires shrimp while demand from local with the import demand for Argentinean shrimp and the consumers has also increased. Last year, Maldives domestic market in The Russian Federation in the coming imported more than 300 tonnes of shrimp from India and months. 89 tonnes from Sri Lanka. There seems to be positive trend in the US shrimp Outlook market and consumer demand is forecasted to increase from November through the New Year. Shrimp is likely to In Asia, farmed shrimp production is likely to decrease join the turkey during the traditional Thanksgiving family in the coming months while the sector approaches the dinners in November and also in Christmas and New Year production season’s end. Industry reports from Thailand celebrations. These are indications of a positive outlook indicate less than 200 000 tonnes of production for 2014. in the coming months.

SHRIMP IMPORTS IN VOLUME BY EU COUNTRIES, USA AND JAPAN - JANUARY-JUNE (IN TONNES)

Tonnes Comparison to 800 000 2013, in %

700 000 JAPAN -23% JAPAN JAPAN JAPAN JAPAN 600 000 JAPAN

500 000 USA USA USA USA USA 11% USA 400 000

EU 28 (intra) 300 000 EU 28 (intra) EU 28 (intra) EU 28 (intra) EU 28 (intra) EU 28 (intra)

200 000 EU 28 (extra) EU 28 (extra) EU 28 (extra) EU 28 (extra) EU 28 (extra) 4% 100 000 EU 28 (extra)

2009 2010 2011 2012 2013 2014

SHRIMP IMPORTS IN VALUE BY EU COUNTRIES, USA AND JAPAN - JANUARY-JUNE (IN '000 USD)

'000 USD Comparison to 2013, in % 8 000 000 -9% 7 000 000 JAPAN

6 000 000 JAPAN JAPAN JAPAN 5 000 000 USA +51% JAPAN JAPAN 4 000 000 USA USA USA USA USA 3 000 000 EU 28 (intra) EU 28 (intra) +27% EU 28 (intra) EU 28 (intra) 2 000 000 EU 28 (intra) EU 28 (intra) EU 28 (extra) 1 000 000 EU 28 (extra) EU 28 (extra) EU 28 (extra) EU 28 (extra) EU 28 (extra)

2009 2010 2011 2012 2013 2014

Globefish Highlights October 2014 11 TUNA

Traditional large markets for canned tuna failed to recover during the first half of 2014, despite considerable weakening of the raw material price

During the first half of 2014, there were mixed trends in the global market for canned and non-canned tuna products. While the large traditional markets imported less compared with last year, import demand improved in both large and small emerging markets. Overall, exports of canned tuna from Asia and Latin America increased either marginally or showed negative growth during this period.

Supply was applied to 40% of the fleet, was implemented from 29 July to 28 September. As of late September, skipjack The FAD fishing ban in the Western and Central Pa- prices were USD 1 700 per tonne, ex vessel Manta and cific has been extended from three to four months until expected to drop further. In contrast, yellowfin prices in- October 2014. However, this will not have much impact creased to USD 2 600 per tonne. on fish prices due to lower than expected demand from Asian canners. This is a result of weak demand for canned In the Atlantic Ocean, fishing has been moderate to tuna from the two large markets, the USA and the EU. good. As nearly two-thirds of the catch are skipjack, lo- Prices for frozen skipjack increased only by 10% from May cal canneries are better stocked compared with previous to September. Catches in the major fishing grounds has months. Both skipjack and yellowfin prices have fallen to been moderate to good during the July to September pe- EUR 1 250 and EUR 2 250 per tonne, ex vessel Abidjan, riod with skipjack prices ranging between USD 1 550–1 respectively. 600 per tonne, CFR Bangkok. In the Indian Ocean, fishing remains steady. Ves- In the Eastern Pacific, catches have been moder- sels are generally operating on FADs and catching mostly ate as the cold equatorial waters are making fishing dif- skipjack. Canneries in that region are adequately sup- ficult without using fish finders. The first Inter-American plied with raw materials, while skipjack prices weakened Tropical Tuna Commission (IATTC) closure period, which to EUR 1 150 per tonne and yellowfin to EUR 2 000 per

Tuna production by species (2012) Pacific bluefin Others tuna 12% 1% Atlantic bluefin tuna Skipjack tuna 0% 50%

Albacore 5%

Bigeye tuna 8%

Yellowfin tuna 24%

12 Globefish Highlights October 2014 TUNA tonne, FOB Mahe.

With sufficient supplies from the Indian and Atlantic Oceans, skipjack and yellowfin prices (whole frozen) to Market news and trends Europe declined to EUR 1 300 per tonne and EUR 2 300 per tonne, CFR Spain. Import prices for cooked, double Samoa Tuna Processors, a division of Tri cleaned yellowfin loins remains at USD 8 300 per tonne Marine in Bellevue, Washington, has launched DDP Italy. super-frozen tuna (SFT), realizing a significant demand particularly in Japan, where SFT In Mexico, the fishing season for bluefin has been accounts for about 80% of the local sashimi suspended by national authorities when the TAC of 5 000 tuna consumption. New SFT is frozen utilizing tonnes was reached on 11 July, a move that is in line with a revolutionary technology developed in Japan the IATTC regulation to conserve tuna resources. Mexico a few decades ago, which virtually erases the operates large tuna farming facilities, where juvenile fish time gap between catch and consumption. are reared to marketable sizes (40 kg and up) for the From the moment it is brought on-board the sashimi trade. Industry sources from Japan report that fishing vessel and blast frozen at -60°C, to the tuna farms in Mexico are trying to produce bigeye and time it is brought back to chilled temperature, yellowfin tuna as supplies of bluefin juvenile for farming the quality and the organoleptic characteristics are becoming limited due to various conservation meas- of the fish remain intact, just like the moment ures. The redmeat varieties are likely to be marketed it was caught, according to Antonio Orsini, to the USA as selling to Japan may not cover production Director of Fresh and Frozen for Tri Marine. costs. Samoa Tuna began processing SFT this month, utilizing its newly built fresh and frozen In Japan, total tuna landings during the first half processing facility in American Samoa. of this year were at a three-year low, though landings of fresh tuna from coastal waters were higher compared While Tri Marine recognizes that most with last year’s. Supplies from distant water fishing demand for the SFT line is in Japan, executives believe that demand from the EU, the USA and other countries will grow. In the EU, the demand has been growing rapidly with 50% of all chilled Landings tuna currently sold in UK retail markets being super-frozen. The tuna market in the USA is Tuna: Japan very peculiar, since this is one of the very few Jan-Jun countries in the world where carbon monoxide 2009 2010 2011 2012 2013 2014 or clear smoke treatment is allowed. Samoa (1 000 tonnes) Tuna also recently started producing albacore tuna and yellowfin tuna loins and steaks, and Bluefin plans to launch wahoo, mahi and opah portions Fresh 0.6 0.6 1.1 0.6 1.0 1.7 over the next few months. Frozen 0.0 0.5 0.3 0.3 0.2 0.3 Albacore Fresh 29.6 20.8 23.4 30.3 28.0 30.0 Frozen 6.5 3.4 4.4 10.2 11.4 8.1 (mainly frozen fish) were lower, particularly for albacore Bigeye and yellowfin. Local catches of bigeye increased in Sep- Fresh 3.0 1.6 1.4 1.6 1.3 1.4 tember. Notably, the first land-based farmed bluefin tuna Frozen 9.1 8.1 8.7 11.0 12.3 12.7 was harvested in Japan in September. The fish weighed Yellowfin 15.3 kg per piece and was sold at yen 2 200 per kg in the Fresh 4.7 4.6 3.6 3.1 3.3 2.4 Tsukiji auction market. Frozen 3.2 2.5 3.2 17.3 8.5 16.8 Skipjack Non-canned tuna market (fresh and frozen) Fresh 20.7 19.6 20.8 16.3 28.6 20.3 Japan Frozen 105.8 101.7 101.2 102.9 101.8 102.4 Total Japan remained the world’s largest market for Fresh 58.6 47.3 50.3 51.9 62.3 52.8 sashimi tuna but with falling demand. During June to Au- Frozen 124.7 116.2 117.8 141.7 134.1 140.3 gust, demand for sashimi tuna was low in the restaurant Grand Total 183.3 163.5 168.0 193.7 196.4 193.1 trade, which is generally associated with the hot, rainy Source: INFOFISH and stormy weather. More so, the devaluation of the yen

Globefish Highlights October 2014 13 TUNA

Imports Imports Fresh/chilled tuna: Japan Fresh Tuna: USA Jan-Jun Jan-Jun 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 (1 000 tonnes) (1 000 tonnes) Bigeye 7.8 5.8 5.6 6.6 5.6 4.9 Yellowfin 7.6 8.1 8.3 8.3 8.0 8.9 Yellowfin 8.3 7.9 7.6 6.5 5.1 4.1 Bigeye 2.7 2.5 1.5 2.0 2.0 1.9 Bluefin 2.8 2.2 1.2 1.6 2.3 2.4 Albacore 0.4 0.2 0.3 0.4 0.4 0.4 S.Bluefin 1.4 0.8 0.6 0.7 0.9 0.6 Bluefin 0.2 0.3 0.2 0.2 0.3 0.4 Albacore 0.1 0.0 0.0 0.0 0.0 0.0 Skipjack 0.0 0.0 0.0 0.0 0.0 0.0 Skipjack 0 0.0 0.0 0.0 0.0 0.0 Others 0.1 0.2 0.2 0.2 0.3 0.2 Total 20.4 16.7 15.0 15.4 13.9 12.0 Total 11.0 11.3 10.5 11.1 11.0 11.8 Source: INFOFISH Source: NMFS

Imports Imports Frozen tuna: Japan Tuna loins*: USA Jan-Jun Jan-Jun 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 (1 000 tonnes) (1 000 tonnes) Bigeye 39.6 41.6 32.1 42.2 41.2 38.8 Thailand 4.7 13.2 14.2 8.6 13.3 14.5 Yellowfin 22.9 24.8 22.7 28.3 20.2 20.6 China 0.0 0.0 2.0 5.8 5.2 10.5 Skipjack 32.0 32.5 20.4 15.8 8.5 10.6 Mauritius 3.4 2.3 3.4 2.9 4.7 4.7 Albacore 3.1 7.5 9.4 6.0 7.9 6.5 Fiji 5.8 6.3 4.2 4.0 5.7 4.5 S. Bluefin 1.0 1.2 0.5 0.6 0.7 0.5 Ecuador 0.0 0.1 0.0 1.3 0.7 0.3 N. Bluefin 3.7 0.9 1.6 0.3 0.3 0.3 Trinidad & Tobago 5.1 4.2 3.2 0.0 0.0 0.0 Total 102.3 108.5 86.6 93.3 78.8 77.3 Others 2.3 7.3 4.9 8.2 6.0 3.4 Source: INFOFISH Total 21.3 33.5 31.9 30.8 35.6 37.9 Source: NFMS * cooked and frozen product

to USD 110 in September has affected imports of high Coldstorage holdings priced tuna. Tuna: Japan During the first half of 2014, Japanese imports of 120 1000 tonnes fresh and frozen tuna declined again following last year’s trend. Indeed, cumulative imports of fresh and frozen 100 tuna and tuna loins were 3% lower than compared with the same time period last year, imports of whole/dressed Others 80 fish particularly declined. Frozen tuna loin imports remained stable at slightly lower than 20 000 tonnes dur- 60 Skipjack ing this period. Overall, consumer demand for sashimi and sushi products in Japan has been declining, and fresh

40 Albacore salmon is now the cheaper and popular alternative.

Bigeye 20 Imports of only frozen tuna into Japan during the first six months of the year also declined compared to last Yellowfin 0 year (-2%), as supplies of bigeye, albacore and s. bluefin 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 tuna were lower. Some of these fish were processed into Source: INFOFISH Trade News frozen loins for which the market demand has been stable compared with demand for whole/dressed fish.

14 Globefish Highlights October 2014 TUNA

the USA, most of the yellowfin and bigeye tuna enter the Imports non-sashimi market segment. Tuna pouches: USA Jan-Jun US imports of semi-processed cooked and frozen 2009 2010 2011 2012 2013 2014 loins also increased by 6.5% for which the average import (1 000 tonnes) price was almost 26% lower in June 2014 against June 2013. These supplies were meant for local processing of Thailand 11.5 11.7 9.6 9.6 10.3 10.6 canned/pouched tuna. Ecuador 5.2 6.5 5.8 5.5 7.0 6.6 Others 2.8 4.0 3.3 2.4 1.8 4.5 Canned tuna Total 19.5 22.2 18.7 17.5 19.1 21.7 Source: NFMS There have been mixed trends in the global canned tuna market during the first half of this year. Compared with last year, imports declined in the large European and North American markets, while emerging markets in the Middle East, West Africa and Latin America bought more. Imports USA Canned tuna (excl. pouches): USA Jan-Jun Demand in the world’s single largest canned tuna 2009 2010 2011 2012 2013 2014 market remained flat throughout the year with a 4.9% de- (1 000 tonnes) cline in total imports of processed tuna during January- Thailand 36.7 56.0 51.5 32.9 43.2 33.7 June 2014 compared with the same period last year. Im- Viet Nam 7.1 11.5 12.0 10.5 10.2 9.2 ports of canned tuna in particular had a negative growth rate (-16.7 %) though the market bought more semi- Philippines 14.8 11.1 14.1 11.8 9.0 7.8 processed cooked/frozen loins (for domestic processing) Indonesia 7.7 8.3 6.3 4.9 4.9 4.9 for which the average import price was nearly 23% lower China 3.4 2.8 4.1 4.3 5.5 4.0 Others 3.4 3.5 5.7 4.4 3.9 4.3 Total 73.1 93.2 93.6 68.8 76.7 63.9 Source: NFMS CFR Prices Canned tuna*: USA, EUROPE

60.00

USD/carton Europe USA 50.00

Compared with last year, imports of whole dressed 40.00 fresh/chilled tuna for non-canned usage increased in the USA USA marginally during the first half of this year, with in- 30.00 creased supplies of yellowfin tuna. Demand for yellowfin, which is generally used for producing tuna steaks etc., 20.00 typically increases during the summer months. Imports of the high value, sashimi grade bluefin also increased, con- 10.00 firming a better demand trend. Imports of whole/dressed frozen tuna meant for similar usages, were slightly higher 0.00 Jul-14 Jul-13 Jul-12 Jul-11 Jul-10 Jul-09 Jan-14 Jan-13 Jan-12 Jan-11 Jan-10 Jan-09 Sep-13 Sep-12 Sep-11 Sep-10 Sep-09 Sep-14 Nov-13 Nov-12 Nov-11 Nov-10 Nov-09 Mar-14 Mar-13 Mar-12 Mar-11 Mar-10 Mar-09 May-14 May-13 May-12 May-11 May-10 than 1 000 tonnes during this period. May-09 * 48x6.5 oz Europe, 48x6 oz USA, chunk, origin Thailand Frozen tuna loins imports also increased by 5% dur- Source: GLOBEFISH ing the first half of 2014 compared with the same time period in 2013. The rising import trend can be explained by the fact that the average import price was 20% lower than compared with the same period last year. than the same period a year ago. Supplies increased sig- Notably, US imports of air-flown fresh/chilled tuna nificantly from China and the Philippines. There were are almost equivalent to the volume of air-flown fresh/ also increased imports of higher value pouched tuna dur- chilled tuna imported into Japan. However, in Japan these ing this period (+13.6%), where Thailand was the lead imports mainly consist of sashimi grade tuna, whereas in supplier.

Globefish Highlights October 2014 15 TUNA

EU Imports Tuna loins: Spain Low demand for canned tuna in the EU remains a Jan-Jun major concern for Ecuador and Thailand, which are the top two suppliers of processed tuna (canned tuna or HS 2009 2010 2011 2012 2013 2014 160414) to this market. (1 000 tonnes) Ecuador 16.6 15.0 12.9 11.1 10.9 8.3 The EU imported 246 737 tonnes of processed tuna Thailand 6.6 4.9 10.6 2.1 4.5 7.2 (canned tuna and cooked/frozen loins) from third coun- China 1.6 2.2 3.1 1.6 5.0 4.9 El Salvador 9.1 4.5 2.9 2.7 3.2 2.8 Guatemala 2.7 4.5 4.0 4.2 3.7 2.3 Papua New Guinea 0.2 0.9 1.5 2.4 4.0 2.2 Mauritius 2.2 2.4 6.6 4.1 2.1 2.1 Imports Indonesia 0.0 0.0 0.8 2.0 1.6 0.8 Canned tuna: Italy Others 4.4 2.0 2.3 2.3 1.0 3.8 Jan-Jun Total 43.4 36.3 44.6 32.6 35.9 34.4 2009 2010 2011 2012 2013 2014 Source: Agencia Tributaria (1 000 tonnes) Spain 21.0 21.6 25.1 23.2 18.8 28.3 Colombia 4.2 5.3 5.6 4.7 3.5 4.9 Imports Seychelles 3.0 3.1 2.7 3.1 4.6 4.4 Canned tuna: UK Ecuador 1.6 3.0 2.3 1.8 3.1 4.4 Jan-Jun Mauritius 2.1 2.0 2.0 2.8 2.9 3.3 2009 2010 2011 2012 2013 2014 Côte d'Ivoire 5.4 2.9 2.2 4.6 3.7 3.2 (1 000 tonnes) Portugal 0.8 0.5 0.8 1.0 1.1 0.9 Mauritius 9.0 11.6 11.4 13.6 11.0 10.3 El Salvador 0.2 0.2 0.4 0.3 0.5 0.6 Philippines 8.4 8.2 6.0 5.5 5.2 6.6 Thailand 1.2 1.6 1.5 1.2 1.0 0.5 Seychelles 9.5 6.0 7.2 6.9 7.1 6.3 France 3.6 0.3 1.0 0.5 0.1 0.0 Thailand 9.9 6.5 13.1 5.4 8.6 5.4 Others 1.2 1.0 1.2 1.2 1.6 2.1 Ghana 8.5 9.8 7.2 6.8 6.4 5.1 Total 44.3 41.4 44.8 44.4 40.9 52.6 Ecuador 3.1 2.4 5.8 4.7 4.5 4.6 Source: Eurostat Papua New Guinea 1.0 0.8 0.7 0.7 1.9 2.8 Indonesia 0.3 0.9 1.2 2.6 3.9 2.8 Spain 1.1 0.8 2.8 3.2 3.1 1.9 France 1.2 1.2 0.6 0.6 1.3 1.0 Others 3.0 2.4 3.4 2.4 3.3 2.4 Imports Total 54.9 50.5 59.4 52.4 56.3 49.2 Tuna loins: Italy Source: Her Majesty's Revenue & Customs Jan-Jun 2009 2010 2011 2012 2013 2014 CFR Prices (1 000 tonnes) Frozen Skipjack: Thailand and Africa Thailand 8.4 4.4 3.2 4.8 2.7 3.5 2500 Ecuador 7.3 5.1 5.5 5.0 6.0 3.0 USD/tonne Solomon Islands 0.3 1.8 2.0 1.9 1.5 2.7 2000 Kenya 0.7 1.0 1.9 1.3 1.6 2.1 Thailand China 2.2 2.2 2.3 1.5 1.6 1.0 1500 Mauritius 1.5 2.2 0.7 1.5 1.0 1.0

Colombia 0.8 0.2 1.5 0.6 0.4 0.9 1000 Others 0.9 2.7 1.8 1.6 4.3 6.3 Africa

Total 22.1 19.6 18.9 18.1 19.1 20.5 500 Others 0.4 0.4 0.4 0.5 1.2 1.7

Total 11.3 9.9 8.4 11.3 9.9 10.5 0 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Source: Eurostat Source: ITN

16 Globefish Highlights October 2014 TUNA

Imports Tuna - Pacific Ocean Skipjack Bangkok CFR Canned tuna: France Skipjack Ecuador, ex-vessel USD/kg Jan-Jun 2009 2010 2011 2012 2013 2014 3.00 (1 000 tonnes) 2.50 Spain 10.0 11.1 16.7 8.9 10.5 13.5 2.00 1.55 1.50 Seychelles 6.6 6.5 9.5 12.0 12.5 11.4 1.00 1.70 Côte d'Ivoire 11.7 10.0 6.1 10.8 12.9 6.4 0.50 Ecuador 7.2 6.6 7.4 5.8 7.6 5.3 Jun-11 Jun-12 Jun-13 Jun-14

Mauritius 0.4 0.8 1.1 2.2 2.7 4.1 Mar-11 Mar-12 Mar-13 Mar-14 Dec-10 Dec-11 Dec-12 Dec-13 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Ghana 3.2 3.8 4.3 3.0 2.2 3.9 Thailand 4.8 4.6 5.2 2.9 4.4 3.5 Madagascar 5.1 1.7 5.0 3.7 3.3 2.6 Others 7.5 4.7 3.6 2.5 3.3 3.8 Tuna - Spanish canneries Yellowfin > 10 kg, Spain CFR

Total 56.5 49.8 58.9 51.9 59.4 54.5 EUR/kg Skipjack main sizes, Spain CFR Source: Direction Nationale des Statistiques du Commerce Extérieur – DNSCE 3.00 2.50 2.00 2.30 1.50 1.00 1.30 0.50 Imports Jun-11 Jun-12 Jun-13 Jun-14 Mar-11 Mar-12 Mar-13 Mar-14 Dec-10 Dec-11 Dec-12 Dec-13 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Canned tuna: Germany Jan-Jun 2009 2010 2011 2012 2013 2014 Tuna - Indian/Atlantic Oceans (1 000 tonnes) Skipjack, Seychelles, FOB Philippines 10.1 7.7 8.6 7.7 6.5 7.4 Yellowfin, Seychelles, FOB EUR/kg Skipjack, Abidjan ex-vessel Ecuador 8.2 5.0 5.1 3.9 7.1 5.9 Yellowfin, Abidjan, > 10 kg, ex-vessel Viet Nam 2.3 1.6 2.7 2.8 4.0 4.4 3.00 2.50 2.20 Papua New Guinea 2.0 5.6 4.7 5.9 4.7 4.1 2.40 2.00 Netherlands 1.9 2.4 3.6 2.9 2.7 4.0 1.50 1.05 Indonesia 3.6 3.1 4.2 3.1 2.0 1.9 1.00 1.15 Thailand 2.1 2.4 1.9 1.5 2.6 1.4 0.50 Seychelles 0.6 1.9 1.0 0.1 0.3 0.2 Jun-11 Jun-12 Jun-13 Jun-14 Mar-11 Mar-12 Mar-13 Mar-14 Dec-10 Dec-11 Dec-12 Dec-13 Others 2.4 2.1 4.3 5.2 7.4 5.9 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Total 33.1 31.8 36.1 33.0 37.3 35.2 Source: Germany Customs

Tuna - Loins

Skipjack - frozen cooked loins, single cleaned, Spain/Italy DDP USD/kg Yellowfin - frozen cooked loins, double cleaned, Italy DDP

10.00 tries during the first half of 2014, of which 25% was 9.00 8.30 8.00 cooked/frozen loins. 7.00 6.00 6.10 5.00 During this period, canned tuna imports were nearly 4.00 3.00 7% lower at 183 049 tonnes compared with last year. Ex- 2.00 cept for Italy, imports declined in all of the largest markets, including France, the UK, and Germany. Jun-11 Jun-12 Jun-13 Jun-14 Mar-11 Mar-12 Mar-13 Mar-14 Dec-10 Dec-11 Dec-12 Dec-13 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14

EU tuna canners in Spain, France, Italy and Portu- gal imported 62 424 tonnes of cooked/frozen loins for Graphs Source: GLOBEFISH European Price Report

Globefish Highlights October 2014 17 TUNA re-processing during the first half of 2014, which is 1.2% Exports higher than compared with the same period last year. Interestingly, there was a shift in sourcing where supplies Canned tuna: Thailand from non-African, Caribbean and Pacific (ACP) countries Jan-Jun increased this year. Thailand became the top supplier of 2009 2010 2011 2012 2013 2014 cooked loins overtaking Ecuador and delivering 60% more (1 000 tonnes) than compared with the first half of 2013 at nearly 14 000 USA 48.1 59.8 53.3 37.2 36.0 37.8 tonnes. The other lead suppliers in ranking were Ecuador, Libya 15.5 11.1 4.2 15.8 13.8 19.4 China, the Philippines and Indonesia. Imports from Papua New Guinea declined by 38.6% while exports from Kenya Australia 15.3 20.6 23.6 16.0 15.9 17.3 were nearly 75% higher than compared with the January- Japan 12.9 11.6 14.8 13.5 14.5 13.2 June period last year. In 2013, Ecuador and Papua New Canada 16.3 14.4 16.9 12.8 13.2 12.6 Guinea were the top two suppliers of cooked/frozen tuna Egypt 14.1 25.2 21.9 20.1 10.3 11.1 loins to EU canners. Saudi Arabia 7.1 12.0 10.2 10.9 9.1 9.3 Chile * * * * 4.6 6.9 Other markets Papua New Guinea * * * * 3.1 5.9 Canned tuna imports into Japan during the first half of 2014 were 4% lower than the same time period last South Africa 5.6 4.9 4.6 5.4 4.6 5.1 year as a result of the weak yen. Demand has improved in Syria * * * * 4.4 4.3 Australia where there was a 11.2% rise in imports mainly UK 9.7 6.2 16.0 2.3 6.1 4.0 supplied by Thailand. Australian canned tuna imports also Yemen * * * * 4.9 4.0 consisted of high value products. Tunisia * * * 5.8 5.4 3.6 Others 87.5 108.9 104.6 63.4 60.1 61.7 In the Middle East, canned tuna imports increased Total 232.1 274.7 270.1 203.2 206.0 216.2 in most of the markets and supplies are dominated by Asian tuna packers. However, it is also interesting to note Tunisia * * * * 1.9 1.2 increased exports from Italy and Spain to the oil rich Arab Syria 2.6 2.9 3.3 1.1 * * markets. Others 61.5 15.4 38.0 24.1 25.2 23.7 Total 131.2 104.9 136.0 101.4 104.6 105.4 Exports Source: Thai Customs * included under “others”

In order of ranking, the top seven global exporters of canned and processed tuna are Thailand, Ecuador, Philippines, Spain, China, Mauritius and Indonesia. With the exception of Thailand, exports declined from all of pan, the sashimi market has been showing some signs of these countries during the first half of this year as a re- improvement since mid-September, a trend that is ex- sult of stagnant import demand from North American and pected to continue into the autumn and winter months. European markets. In terms of regulations that will impact supplies Thailand maintained the positive growth rates to and prices in the near-future, the FAD fishing ban in the these markets through increased supplies of cooked Western and Central Pacific will be over starting from No- loins. Strong export diversification to the emerging mar- vember and the tight tuna supply situation is expected kets in the Middle East and West Africa is keeping the to ease in the coming months. Hence, fish prices may Thai canned tuna industry ahead of others. weaken further in the coming months.

During January-May 2014, the Philippines exported In addition, beginning January 2015, the fishing day 10% less canned/processed tuna compared with the same fee for foreign fishing fleets operating in the PNA (Parties period last year but captured more of the market share to the Nauru Agreement) waters of the Western and Cen- in the EU, Association of Southeast Asian Nations (ASEAN) tral Pacific will increase to USD 8 000 from the present and in some Middle Eastern markets. Similarly, China ex- rate of USD 6 000. This was decided on in June at the 9th ported more canned tuna to Latin America and West Af- Meeting of PNA Ministers held in the Marshall Islands. PNA rica during the reporting period. members expressed serious concern over the status of bigeye tuna stocks in the Pacific, where the stocks have Outlook dropped below the WCPF limit reference point and therefore needs to be reduced by about 40% in order to return to sustainable levels. The PNA highlighted the fact that For the rest of 2014, the global demand trend for bigeye tuna catches dropped significantly during the FAD sashimi, non-sashimi and canned tuna is likely to follow ban period. the pattern observed during January-September. In Ja-

18 Globefish Highlights October 2014 GROUNDFISH

Cod prices rising in spite of record supplies

Cod prices are on the rise in major markets with a number of factors contributing, including a lower TAC, the Russian ban on imports from western countries, and the Russian Federation withholding cod for its own domestic consumption. The industry is expected to find ways to adapt to this new trade situation in the near term.

Cod increased from 38 752 tonnes in 2013 to 51 911 tonnes in 2014 (+34%). As the price of fresh cod also went up, the Markets for traditional groundfish products such value of exports increased by almost 47%, from NOK 665 as klipfish (salted and dried cod and cod-like species), million in 2013 to NOK 976 million in 2014. In terms of stockfish (air-dried cod fish) and salted fish have been average export price, the price went from NOK 17.16 per relatively good this year. There was only a slight drop in kg in 2013 to NOK 18.80 per kg in 2014 (+9.6%). Notably, shipments of klipfish from Norway during the first eight in recent months, the price of fresh cod has increased months of the year. The total volume exported declined even more, and in August, the average export price of from 58 747 tonnes to 57 884 tonnes (-1.5%). However, Norwegian fresh whole cod was NOK 25.22 per kg (fob prices were good, and the export value rose from NOK 1 Norway). 830 million to NOK 1 965 million (+7.4%). Prices for frozen whole cod have also increased, Norwegian stockfish exports have been relatively partly as a result of the very good demand for raw modest so far this year. Though the volume during the material for salted and dried fish in Europe. Norwegian first eight months of the year increased by 31.5% to 3 849 exports of frozen whole cod increased from 49 941 tonnes tonnes, stockfish prices have fallen dramatically, from during the first eight months of 2013 to 58 050 tonnes NOK 94.16 per kg in 2013 to just NOK 76.57 per kg in during the same period in 2014 (+16.2%). The value of 2014. The main markets for Norwegian stockfish are Italy exports went up from NOK 748 million in 2013 to NOK 948 and Nigeria. million in 2014 (+26.8%).

Norwegian exports of fresh and frozen whole cod With poor landings of Pacific cod at the moment and increased significantly during the first eight months of rising demand globally, overall prices have climbed. The the year. Exports of fresh whole cod during the period Russian ban on imports from western countries is another factor that is pushing prices up.

Groundfish production by species (2012)

saithe 5%

haddock 6%

whiting Alaska pollock 6% 45%

hake 15%

cod 23%

Globefish Highlights October 2014 19 GROUNDFISH

International trade developments: others are ready to take over. Russian Federation Taking advantage of the Russian Federation’s import ban on western At present, the Russian domestic countries, the Argentinian company market for groundfish species is Friogorifico del Sud Este is expecting to characterized by increasing prices. Demand export about 20% more fish to the Russian for cod domestically is strong, leading to the Federation than last year. The company industry keeping more of its own landings to already exports about 70 tonnes per month, compensate for the loss of foreign imports. of which about 50 tonnes are hake, the According to the Federal Agency for rest being red shrimp. Other companies Fisheries in Russia, the catch of cod in the in Argentina are also reporting increased Northern Basin had reached 360 800 tonnes interest from Russian importers. as of 23 September, which is 49 800 tonnes higher than compared with the same time period in 2013. Haddock supplies followed a downward trend with a volume of 50 100 tonnes (10 200 tonnes less compared with the corresponding period in 2013) and the catch of capelin down to 26 000 tones (34 Imports 400 tonnes less). Cod-like groundfish: USA Jan-Jun The catch season for cod will soon be 2009 2010 2011 2012 2013 2014 over, and with substantial volumes exported, the wholesale prices in Murmansk will follow (1 000 tonnes) an upward trend. Current prices for freshly Fillets frozen cod (1-2 kg) range from RUB 127-130 China 38.2 34.4 42.2 41.0 40.0 41.8 per kg (EUR 2.53-2.59), while for haddock Iceland 5.1 5.0 3.5 4.6 6.0 5.8 (0.5-1 kg) prices range from RUB 140-145 Russian Fed. 0.8 6.5 2.4 1.9 3.6 2.7 per kg (EUR 2.79-2.89). Canada 2.3 2.6 2.1 2.6 1.6 1.0 Norway 0.6 0.4 0.3 0.4 1.3 1.0 The Russian import ban on seafood from a number of western countries has had an Others 2.4 1.3 1.6 4.1 6.6 8.2 impact on various parts of the industry. For Total 49.4 50.2 52.1 54.6 59.1 60.5 example, the US whiting fishery is suffering, Blocks/Slabs with the Russian embargo putting things China 21.4 18.1 17.3 17.1 14.5 16.5 to a sudden halt in August. While fishing is Iceland 0.7 0.3 0.3 0.5 0.9 0.9 still continuing, fishing companies as well as Norway 0.1 0.4 0.5 0.2 0.3 0.5 packers and exporters are feeling the effect Argentina 0.5 0.3 0.2 0.5 0.6 0.4 of losing 15-20% of their market. Russian Fed. 1.8 0.8 0.6 0.3 0.2 0.1 Not surprisingly, US seafood processors Canada 0.3 0.1 0.1 0.2 0.1 0.1 are now calling for a retaliatory ban on Others 0.9 1.0 1.0 1.4 1.5 0.6 Russian seafood in the USA, where imports Total 25.7 21.0 20.0 20.2 18.1 19.1 are substantial. For example, in 2013, the Gr. Total 75.1 71.2 72.1 74.8 77.2 79.6 USA imported USD 220 million worth of Source: NMFS Russian king crab and snow crab. For king crab, the Russian Federation accounts for about 90% of the total US supply (Source: Seafood.com). Consequently, a retaliatory US ban on Russian seafood could have a major impact on the market and prices.

While US and EU exporters may lose the Russian market at least in the short-term,

20 Globefish Highlights October 2014 GROUNDFISH

Norwegian export prices Imports Average export prices in NOK per kg, Frozen Alaska pollock fillets: France fob Norway Jan-Jun 2009 2010 2011 2012 2013 2014 (1 000 tonnes) China 12.9 9.8 14.7 12.5 11.2 9.1 USA 3.1 2.5 5.2 4.9 4.0 4.7 Russian Fed. 3.4 2.4 2.9 2.5 5.8 4.1 Germany 1.2 1.8 3.0 2.8 3.4 3.6 Others 0.6 0.8 0.2 0.3 0.3 0.3 Total 21.1 17.3 26.0 23.0 24.7 21.8 Source: Direction Nationale des Statistiques du Commerce Extérieur – DNSCE

Imports Imports Frozen cod fillets: Germany Frozen Alaska pollock fillets: Germany Jan-Jun Jan-Jun 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 (1 000 tonnes) (1 000 tonnes) China 4.4 4.0 7.4 5.5 5.7 5.4 China 46.0 44.1 45.7 38.1 46.0 42.4 Poland 0.9 4.1 2.1 2.6 3.6 3.8 USA 13.5 18.4 22.7 27.6 15.3 21.4 Viet Nam 0.0 0.7 0.7 0.7 1.1 0.8 Russian Fed. 13.2 9.1 8.5 4.5 6.3 5.1 Norway 0.1 0.2 0.2 0.2 0.3 0.7 Others 3.0 2.4 2.4 2.8 2.0 2.0 Denmark 0.8 1.1 1.3 0.8 0.5 0.6 Total 75.8 74.0 79.3 73.0 69.6 70.9 Russian Fed. 0.4 0.3 0.3 0.3 0.4 0.4 Source: Germany Customs Iceland 0.5 0.4 0.3 0.0 0.1 0.2 Others 1.0 0.6 0.2 1.2 1.9 1.8 Total 8.1 11.4 12.5 11.3 13.6 13.7 Source: Germany Customs

US imports of cod and cod-like groundfish are edging Imports upwards again. During the first half of 2014, imports of Frozen cod: UK fillets were up by 2.4%, while imports of blocks and slabs were up by 3.1%. China has remained the main supplier Jan-Jun to the USA for years now, and is maintaining that position 2009 2010 2011 2012 2013 2014 well this year. Indeed, China accounted for 69.1% of US cod (1 000 tonnes) fillet imports and 86.4% of imports of blocks/slabs. Other China 6.7 6.3 7.7 8.4 10.0 11.6 important suppliers like Iceland, the Russian Federation, Iceland 7.7 7.8 8.3 8.4 9.3 9.3 Canada and Norway held their market positions. Russian Fed. 4.6 5.0 4.1 6.4 7.6 7.1 Norway 4.4 4.7 5.6 4.3 5.1 6.7 On the European market, there was stagnation or decline in imports of cod products. Germany registered Germany 0.9 3.3 4.3 4.1 4.0 3.1 practically no increase in imports of frozen cod fillets Denmark 3.6 3.5 3.7 3.8 4.7 2.8 during the first half of the year (+ 0.7%), while the UK saw Faroe Islands 3.1 3.0 3.5 3.6 4.4 2.6 a decline in imports of frozen cod from 50 200 tonnes in Greenland 0.8 1.9 1.8 2.4 2.2 1.8 2013 to 48 400 tonnes in 2014 (-3.6%). The main suppliers Poland 2.2 1.3 1.1 1.4 1.4 0.7 to Germany were China (39% of total) and Poland (28% Others 1.7 1.9 2.0 1.1 1.5 2.7 of total). On the UK market, China, Iceland, the Russian Federation, and Norway were the main suppliers. There Total 35.7 38.7 42.1 43.9 50.2 48.4 was little change in their relative positions. Source: Her Majesty's Revenue & Customs

Globefish Highlights October 2014 21 GROUNDFISH

Imports Surimi - In France, origin: Spain

Frozen hake fillets: Germany Stick 250 gr/pc Jan-Jun EUR/kg 2009 2010 2011 2012 2013 2014 2.8 (1 000 tonnes) 2.5 Peru 1.6 2.3 2.1 0.5 1.4 2.1 Namibia 0.9 1.1 1.4 1.7 1.6 1.4 2.3 2.43 USA 2.4 2.8 2.4 2.6 0.4 0.5 2.0 Argentina 1.9 1.5 0.3 0.6 0.9 0.3 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 May-10 May-11 May-12 May-13 Others 2.0 0.7 0.9 0.7 0.6 0.3 May-14

Total 8.8 8.4 7.1 6.1 4.9 4.6 Graph Source: European Price Report Source: Germany Customs the TAC for pollock in the Bering Sea will automatically be increased, because there is a 2 million tonne limit on groundfish species harvested in this area. The survey does indicate, however, that the outlook for the long-term is optimistic, and later surveys confirm this trend. Imports Frozen hake: Italy So far this year, the pollock fishery in the Bering Sea is going well, and by mid-August, 72% of the quota Jan-Jun had been landed. Surimi production in the region during 2009 2010 2011 2012 2013 2014 the B season was by mid-August almost 70 000 tonnes. (1 000 tonnes) Combined with production from the A season, the total Spain 2.3 3.6 3.3 2.6 2.4 2.9 surimi production in the Bering Sea amounted to 138 000 South Africa 2.8 2.6 2.6 2.9 3.0 2.7 tonnes. If production from the Gulf of Alaska is added, Argentina 5.5 4.8 4.4 3.2 3.9 2.1 total production came to 145 000 tonnes. Namibia 1.8 2.1 2.1 2.3 3.1 2.1 Because of the large size of the fish caught, it is Uruguay 1.6 3.4 3.5 1.2 1.9 1.4 expected that a larger portion of the catch will go to Peru 0.0 0.0 0.1 0.3 0.8 0.9 PBO block production this year. Processors indicate that Chile 0.5 0.8 0.4 0.3 0.3 0.1 as much as 50% of the catch could end up as PBO blocks. Others 1.5 2.8 2.8 2.9 3.8 4.1 This is a major change from the normal split of 70% Total 16.0 20.1 19.2 15.7 19.2 16.3 surimi/30% blocks that has been the norm for the past Source: ISTAT four years.

There seems to be a stagnation or small decline in the trade of frozen Alaska pollock fillets on the EU markets. German imports during the first half of the year were practically level (+1.9%) while French imports declined by 11.7%. On both markets, the main supplier, Cod prices, which have been on a declining trend in China, had a reduction in shipments (-8% in Germany some markets, demonstrated a lift during the past few and -19% in France), while the USA registered a massive months on European markets. Recent Norwegian export (+40%) increase in shipments to Germany as well as a prices indicate a general price increase across the board, good (+17.5%) increase to the French market. The Russian both on what is for Norway consumer markets like the Federation suffered a 19% set-back on the German market EU, and reprocessing markets like China and Poland. and 29% decline on the French market. Prices for fresh fillets have also been on the rise, while prices for frozen fillets have declined recently. On the US Hake market, cod prices have stayed level, as have prices for Alaska pollock. After ten years of MSC certification, the hake fishery in South Africa is considered a success, not only in Alaska pollock terms of being a sustainable fishery, but also in terms of profitability. South Africa’s hake exports have expanded NOAA recently released the results of a survey of the during this ten-year period, and according to FIS, this is pollock resources in the Bering Sea, which showed that attributable to obtaining MSC certification. Apparently, there is nearly a 60% increase in the pollock biomass in the the market has reacted very positively to the certification, region (Source: NOAA). However, this does not mean that and this has resulted in increased exports to markets such

22 Globefish Highlights October 2014 GROUNDFISH as the UK, Germany, Switzerland, Sweden and Australia, During the first five months of 2014, US pollock where consumers are more concerned with sustainably surimi exports registered a slight (+1%) increase compared caught seafood. with the same period in 2013. During this period, the USA exported 67 376 tonnes of pollock surimi. Domestic Argentinian hake exports to Eastern Europe, production amounted to 75 461 tonnes, but a higher especially Ukraine, have been seriously reduced in recent domestic demand channelled more product into the US months. Indeed, shipments from Argentina to Ukraine market instead of to export markets. Japan is the largest were reduced by 37% during the first six months of the export market and during the first five months of 2014, year, and shipments to other countries in the region are Japan imported 29 516 tonnes of US pollock surimi, an also down compared to last year, although Argentina is increase of 28% compared with the same period last year. still exporting to these countries in spite of the recent The second largest importer, the Republic of Korea, on economic and political problems. However, prices on the other hand, showed a 10% decline in imports from the these markets have also dived. Hake prices to Ukraine USA. Alaska’s pollock surimi production is expected to have dropped from USD 2 923 per tonne during the first pass 180 000 tonnes for the first time in nearly a decade half of 2013 to USD 2 252 during the same period in 2014. this year, and Japan’s imports of Alaskan pollock surimi is expected to reach 100 000 tonnes. European imports of frozen hake declined during the first six months of 2014. On the German market, imports In Senegal, the surimi business is developing in an fell by 6%, and on the Italian market by 15%. These two impressive way. The investment fund Hermes-Sojitz is important EU markets are supplied by different countries. investing in a high-tech surimi plant in Senegal, which On the German market the most important suppliers are will become the first such high-tech plant in Africa. Peru and Namibia, while on the Italian market the main Production will be based on low-value grey fish species, suppliers are Spain, South Africa, Argentina and Namibia. while traditional production methods use only white fish The Spanish market is supplied mainly by Argentina and species. The target markets are in Asia, and investors Namibia. expect that they will be able to produce frozen surimi at prices lower than their competitors. Surimi Outlook Total frozen surimi supplies to the Japanese market are expected to remain at around 290 000 tonnes this year. While cod supplies are strong, prices have stayed Japanese domestic production by Hokkaido processors is high and are climbing, mainly as a result of the situation expected to fall to about 44 000 tonnes, but this decline created by the Russian ban on imports from western will most probably be offset by increased imports from countries. This situation will require some changes in the USA. trade patterns, but the industry will surely find ways to adapt. Demand seems to be fairly stable at the moment, Frozen surimi prices are expected to go up as so one should not expect dramatic changes in the next a result of production development and in spite of few months. increased production in other Asian countries. Last year, there was a 20% decline in imports from Asian countries to Japan due to the sharp decline in the value of the Japanese yen. However, this year imports from Asia are rising again, despite of the weak yen. CFR prices Groundfish blocks: USA

Haddock, H&G, origin: Norway 3.5 USD/lb H&G - < 800 gr/pc EUR/kg 3.0

3.00 2.5 Cod 2.50 2.0 2.00 Hake

1.50 1.5 Alaska pollack 1.00 1.0 Jul-12 Jul-13 Jul-14 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Jan-12 Jun-12 Jan-13 Jun-13 Jan-14 Jun-14 Mar-12 Mar-13 Mar-14 Feb-12 Feb-13 Feb-14 Dec-11 Nov-12 Dec-12 Nov-13 Dec-13 Aug-12 Sep-12 Aug-13 Sep-13 Aug-14 Sep-14 May-12 May-13 May-14 0.5 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Graph Source: European Price Report Source: ITN

Globefish Highlights October 2014 23 CEPHALOPODS

Improved supplies of octopus – slower trade in squid and cuttlefish

Contrary to expectations, octopus is now in good supply from Northwest Africa, but inventories have built up and put further pressure on prices. Consequently, fishermen in Morocco and Mauritania stopped landing octopus, and prices in Japan are now expected to increase. Overall, less squid and cuttlefish is being traded internationally as imports into all major markets are down.

Imports Cephalopods production by species (2012) Octopus: Japan Octopus Cuttlefish Jan-Jun 9% 1% 2009 2010 2011 2012 2013 2014 (1 000 tonnes) Cephalopods Morocco 7.5 6.7 2.7 3.8 12.4 9.7 nei 18% Mauritania 11.0 5.7 6.3 8.5 9.9 5.1 China 2.1 4.1 3.7 3.7 2.9 3.3 Viet Nam 2.1 1.3 1.4 1.9 1.6 1.4 Thailand 0.8 0.5 0.6 0.7 0.5 0.4 Squid 72% Spain 0.9 0.6 0.9 1.5 0.6 0.0 Others 0.8 0.4 1.0 1.4 1.3 0.9 Total 25.2 19.3 16.6 21.5 29.2 20.8 Source : FAO Source: Japan Customs

Octopus

Beginning on 1 June, the Moroccan octopus quota was increased by 6% to 9 400 tonnes this season. Later, an extra 1 800 tonnes were added to the quota, thus increasing potential supplies significantly (Source: Imports Minato-Tsukiji). However, importers in the main market, Octopus: Italy Japan, are showing little interest in buying as inventories are adequate. Jan-Jun 2009 2010 2011 2012 2013 2014 In fact, Japan saw a decline of some 15-16% in (1 000 tonnes) supplies of octopus in May, and this resulted in a hefty Morocco 9.3 6.0 2.9 2.8 8.2 5.5 30% price increase. During the first half of 2014, imports Spain 4.1 4.6 4.5 3.0 4.0 3.2 of octopus into Japan dropped by almost 30% compared Indonesia 1.7 2.1 2.4 2.5 1.2 1.9 with the same time period a year ago. The two main Mexico 0.1 1.0 2.5 0.6 0.5 1.5 suppliers (Morocco and Mauritania) experienced declines in shipments of 22% and 48%, respectively. China increased Mauritania 2.8 1.2 1.1 0.5 0.8 1.4 octopus shipments to Japan to 3 300 tonnes (+15%), while Tunisia 0.6 0.6 2.2 2.4 0.5 1.2 Vietnamese shipments declined slightly to 1 400 tonnes India 1.2 0.9 1.0 0.9 1.1 1.1 (-13%). Spanish exports to Japan, which in previous years Senegal 1.7 1.1 1.8 2.5 1.2 1.0 have been substantial, have dwindled to almost nothing. Thailand 1.3 0.7 0.4 0.8 0.3 1.0 The main reason for this seems to be that Spanish vessels Viet Nam 1.8 2.1 1.6 1.6 0.9 0.9 no longer have access to fishing grounds off of Western Others 1.2 1.8 2.6 2.2 1.6 2.0 Sahara, and the fishing agreement between EU and Morocco, which was the basis for Spanish octopus fishing Total 26.0 22.0 22.8 19.8 20.3 20.7 off the north-western coast of Africa, has been difficult. Source: Eurostat

24 Globefish Highlights October 2014 CEPHALOPODS

Mauritanian octopus prices in Japan are too low, Squid according to Mauritanian exporters. The Mauritanian pot-caught octopus fishery has been going very well, During the first half of 2014, international trade in and the result is that a lot of product has been released squid products declined marginally compared with the on the market. Local inventories were building up, and same period in 2013. All major markets imported less this put pressure on prices. Inventories in Mauritania squid than last year. rose to over 4 000 tonnes in the summer. This situation resulted in fishermen stopping fishing in the middle of In 2013, Chilean exports of jumbo flying squid the season, as sales negotiations between Mauritania (Dosidicus gigas) declined by about 15% compared with and Japan were not concluded. Consequently, supplies 2012. This was also well below the figure for 2011, tightened, and as a result, the price of frozen octopus which amounted to USD 117 million. With a total quota on the Japanese market is now on the way up again. In of 194 040 tonnes, only about half has been landed at late August, Mauritanian authorities reacted by banning this point. Chilean observers point out that Chile is not landings of octopus in Mauritanian ports for a period of the main producer, the USA and Peru are. In addition, three months starting on 21 of August. The inventories of when landings are good and demand is high, prices tend frozen octopus had by then grown to 6 000 tonnes, and to stagnate. At the moment, prices for jumbo flying squid prices were falling. The move was expected to enable are on a declining trend. exporters to unload the high inventories and at the same time bring prices back up. The squid (Illex argentines) fishing season in the shared Argentina-Uruguay fishery was closed early on During the first six months of the year, Italian 31 August. The reason given for the closure was the octopus imports are level with the same time period last conservation of the cephalopod stocks in the region. The year. Total imports amounted to 20 700 tonnes, compared season opened on 1 May and by 25 August, 164 814 tonnes to 20 300 tonnes during the same period in 2013. Main had been landed, compared with 189 685 tonnes during suppliers Morocco and Spain both shipped less octopus the same period in 2013. to Italy in 2014, while Indonesia, Mexico, Mauritania and Tunisia all saw increased shipments. An investment group in Peru has announced plans to create a new joint venture company that will increase cold storage capacity and introduce a value added plant for giant squid, producing for the retail segment. Imports The joint venture company will be called Fripusa, and Octopus: Spain processing company Seafrost and fishing group Industrial Pesquera Santa Monica will participate in the joint Jan-Jun venture. The company aims to primarily increase cold 2009 2010 2011 2012 2013 2014 (1 000 tonnes) Morocco 12.9 11.8 8.0 6.7 12.4 8.5 Mauritania 4.4 2.2 3.1 2.7 2.1 3.4 Portugal 0.6 0.7 1.0 0.9 3.5 2.0 Imports Italy 0.3 0.6 0.4 0.5 0.3 0.6 Algeria 0.3 0.3 0.4 0.4 0.4 0.5 Squid: Japan Jan-Jun Viet Nam 0.7 0.9 0.5 0.6 0.3 0.4 2009 2010 2011 2012 2013 2014 Senegal 0.3 0.4 0.7 0.8 0.2 0.4 (1 000 tonnes) India 0.4 0.3 0.5 0.3 0.2 0.3 China 11.1 12.3 14.4 16.8 18.8 17.0 China 1.9 1.5 0.2 0.2 0.6 0.1 Peru 6.8 1.2 4.8 2.9 4.7 5.5 Others 1.2 2.2 2.9 2.0 0.8 2.2 Thailand 3.1 4.2 3.7 3.4 3.3 2.8 Total 23.1 21.0 17.6 15.1 20.7 18.4 Chile 0.0 0.1 0.9 3.5 2.5 2.7 Source: Agencia Tributaria Viet Nam 2.7 2.7 2.3 2.7 2.1 1.8 Argentina 2.2 0.3 0.4 0.3 0.4 1.4 USA 1.6 2.0 1.8 0.5 0.9 0.7 Spanish imports, on the other hand dropped by 11% India 0.5 0.8 1.0 0.7 0.8 0.5 during the first half of 2014 compared with the same Philippines 0.4 0.6 0.4 0.6 0.7 0.5 period last year. The total amount imported stood at 18 Others 2.5 1.8 1.4 2.3 2.0 2.0 400 tonnes. Although Morocco experienced a 32% drop in Total 30.8 25.9 31.1 33.7 36.1 34.9 shipments to Spain, it is still the main supplier, accounting Source: Japan Customs for 46% of total octopus imports into Spain.

Globefish Highlights October 2014 25 CEPHALOPODS storage facilities, but later on a new processing line for largest supplier, India, increased by 23% to 9 000 tonnes. producing value added breaded products based on giant Other main suppliers to the Spanish markets were China, squid will be added. The target markets are the retail Morocco, Peru and the USA. sectors in Colombia, Chile and Brazil. Brazil in particular is considered a very promising market. Imports In New Zealand, a “monster squid” weighing 350 kg Squid: Spain was caught by a vessel in Antarctic waters. The squid was of the species Mesonychoteuthis hamiltoni, living at great Jan-Jun depths around Antarctica and is a favoured prey item for 2009 2010 2011 2012 2013 2014 sperm whales. It was the first ever such species caught, (1 000 tonnes) and has been the focus of interest by several scientists. Falkland Isl. The species is of very limited commercial value. (Malvinas) 14.6 20.9 17.1 22.8 17.0 15.5 India 6.2 10.9 8.0 9.3 7.3 9.0 Japanese squid imports during the first half of China 3.5 5.3 5.8 5.0 5.0 4.6 2014 declined slightly (-3.3%) to 34 900 tonnes. The Morocco 2.8 3.1 4.1 2.7 4.8 4.1 main supplier was China, accounting for 17 000 tonnes Peru 2.7 6.7 6.3 4.3 6.4 3.7 or almost half of total imports. Peru, Thailand and Chile are other main suppliers, accounting for 15.8%, 8.0% and USA 0.3 1.4 1.6 3.6 0.2 2.3 7.7%, respectively. Mauritania 0.7 0.5 0.6 0.6 1.4 1.1 Namibia 0.3 0.4 0.8 0.8 1.3 1.0 Italian squid imports also declined slightly by 3.1% Portugal 0.6 1.1 1.6 0.8 0.6 0.8 during the same period, to 36 900 tonnes. Spain and South Africa 2.0 2.9 2.4 1.4 0.5 0.4 Thailand were the main suppliers. While Spain saw a small France 0.5 1.0 1.0 0.9 0.6 0.4 decline in shipments (-13%), shipments from Thailand UK 0.9 1.7 0.6 0.1 0.3 0.2 increased by 11% to 9 900 tonnes, and shipments from China by 16% to 4 300 tonnes. Chile 0.0 0.0 0.8 1.6 0.3 0.0 Others 3.3 1.0 2.0 1.3 1.5 2.2 Total 38.3 56.8 52.7 55.2 47.2 45.3 Imports Source: Agencia Tributaria Squid: Italy Jan-Jun 2009 2010 2011 2012 2013 2014 (1 000 tonnes) Imports of squid to the US market dropped by almost 14% to 29 500 tonnes during the first six months of 2014. Spain 9.9 10.8 11.5 9.6 11.9 10.3 The main supplier by far was China, which accounted for Thailand 10.8 11.5 11.9 9.2 8.9 9.9 17 500 tonnes or 59% of the total. China 1.3 1.7 3.1 2.2 3.7 4.3 India 2.0 4.3 4.2 1.6 3.6 3.1 Viet Nam 2.5 3.6 3.6 2.7 2.1 1.7 Imports Indonesia 0.5 1.1 1.6 1.1 1.2 1.2 South Africa 2.3 2.9 3.0 1.5 1.0 1.0 Squid: USA Others 4.7 4.1 3.7 3.4 5.7 5.4 Jan-Jun Total 34.0 40.0 42.5 31.2 38.1 36.9 2009 2010 2011 2012 2013 2014 Peru 1.1 0.9 0.0 0.1 1.0 0.2 (1 000 tonnes) Others 1.4 1.5 1.4 0.9 1.2 0.9 China 11.9 15.4 16.9 19.4 18.9 17.5 Total 15.7 18.0 20.6 13.5 18.3 17.5 Republic of Korea 3.9 3.5 2.4 1.7 1.7 2.1 Source: ISTAT Thailand 2.7 2.3 1.9 2.3 2.1 1.6 Taiwan PC 3.4 2.7 1.3 1.8 1.3 1.6 India 1.9 2.5 1.8 2.2 1.8 1.3 Spanish squid imports declined by 4% during the first Peru 1.6 1.6 1.4 1.9 2.0 1.1 half of the year, to 45 300 tonnes. As in previous years, the Falkland Islands (Malvinas) were the main supplier, New Zealand 0.6 0.8 0.7 0.5 1.1 0.4 accounting for 15 500 tonnes or roughly one third of the Others 2.6 2.2 2.8 7.2 5.4 3.9 total. But shipments from the Falkland Islands (Malvinas) Total 28.6 31.0 29.3 37.0 34.3 29.5 declined by 8.8%, while shipments from the second Source: NMFS

26 Globefish Highlights October 2014 CEPHALOPODS

Cuttlefish Imports The cuttlefish trade also declined in 2014. The main Cuttlefish: Spain markets imported less, with the largest decline registered Jan-Jun in Spain and Japan. The largest importer, Spain, imported 2009 2010 2011 2012 2013 2014 14 200 tonnes, 23.7% less cuttlefish during the first six (1 000 tonnes) months of 2014 compared with the same period in 2013. Morocco 7.7 8.4 9.5 7.7 9.8 8.6 Italy imported 14% less, at 9 200 tonnes, and Japan saw Mauritania 2.0 1.5 1.1 1.7 2.2 1.7 a decline of 23.5% less. The major suppliers varied from one importing country to the next. For Spain, the main France 1.3 1.5 1.8 2.1 1.7 1.0 supplier was Morocco, accounting for 60.6%. For Italy, the India 6.1 6.5 5.9 4.5 1.8 0.6 main supplier was Tunisia, but the country accounted for Ghana 0.9 1.0 1.1 0.7 0.2 0.5 only 22.8% of the total. For Japan, the main supplier was Senegal 0.2 0.2 0.6 0.2 0.3 0.4 still Thailand, which accounted for 38 % of total imports. China 2.3 1.8 0.6 0.9 1.3 0.2 Others 2.1 3.4 3.4 2.3 1.4 1.2 Total 22.6 24.3 23.8 20.1 18.6 14.2 Source: Agencia Tributaria

Imports Prices Cuttlefish: Japan Jan-Jun Octopus prices in Spain have been remarkably flat over the past 18-24 months, with no movement 2009 2010 2011 2012 2013 2014 whatsoever. In Japan, the market has been a little more (1 000 tonnes) volatile, due to heavy inventories. Prices in Europe are Thailand 3.5 3.3 2.7 2.8 2.3 2.0 expected to stay level, while in Japan they may edge Morocco 1.4 1.8 0.9 1.9 1.7 1.2 upwards slightly. Viet Nam 2.0 1.7 1.4 1.8 1.1 0.9 Malaysia 0.9 0.8 0.6 0.6 0.6 0.5 For squid, prices in Europe have stagnated, in spite Republic of of less product entering the market. For some sizes, prices Korea 0.3 0.3 0.3 0.2 0.2 0.1 are on a downward trend. No changes are foreseen. Others 1.1 0.9 1.0 1.2 0.8 0.5 Total 9.1 8.9 6.9 8.6 6.8 5.2 Squid - In Italy, origin: South Africa Source: Japan Customs

EUR/kg Squid - Whole, FAS, size M

8.00 7.00 Imports 7.50 6.00 Cuttlefish: Italy 5.00 Jan-Jun 4.00 2009 2010 2011 2012 2013 2014 3.00 (1 000 tonnes) Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Tunisia 1.8 2.9 3.4 2.7 1.9 2.1 May-10 May-11 May-12 May-13 May-14 Spain 2.2 2.1 1.6 1.5 2.0 1.6 Morocco 1.4 1.1 1.5 0.6 1.1 1.5 Source: European Price Report France 2.2 3.3 3.7 3.6 3.0 1.4 Senegal 1.0 1.0 1.1 0.7 0.9 0.9 UK 0.5 0.6 0.4 0.7 0.9 0.3 Mauritania 1.0 0.6 0.2 0.1 0.2 0.2 Outlook India 0.4 0.2 0.4 0.3 0.1 0.2 The current supply outlook is one of small changes. Viet Nam 0.2 0.3 0.5 0.4 0.1 0.1 For octopus, supplies from Africa are good, and some Netherlands 0.2 0.4 0.3 0.5 0.1 0.1 price pressure may be seen in Japan, but not in Europe, Others 0.8 0.8 0.9 0.8 0.5 0.8 where prices will remain flat. For squid and cuttlefish, Total 11.8 13.3 13.9 12.2 10.7 9.2 there is less product in the market, which has affected Source: ISTAT trade. As inventories decline, prices may hold better.

Globefish Highlights October 2014 27 TILAPIA Steady demand balanced by consistent supply

Global tilapia production is expected to almost double from 4.3 million tonnes per year in 2010 to 7.3 million tonnes a year in 2030. With these estimates, tilapia will likely be one of the main contributors to the fastest growth in global aquaculture aside from carp and catfish. Asia remains the main driver of tilapia production with China in the lead. Supplies from Latin America are also expected to increase though a drought in the Santa Fe do Sul region in Brazil has resulted in a 30% drop in tilapia production. The region is one of the largest producers of tilapia with an annual production of about 22 000 tonnes annually. According to INFOFISH analysis, global exports of tilapia during the first half of 2014 reached approximately 200 000 tonnes. Supplies were primarily from China in the frozen form with the largest market being the USA. However, imports increased to other markets as well as to new markets.

China USA

During the first six months of 2014, total Chinese Tilapia continues to be one of the most popular sea- exports of frozen tilapia increased marginally (+1.3%) food items in the USA, which was confirmed by the steady compared with the same period in 2013. Although frozen growth in overall tilapia imports (+5%) during the first fillets account for the largest share, exports of this cat- half of 2014 compared with the same period last year. egory declined by about 1%. However, exports of whole frozen and breaded tilapia showed growth of 2.8% and Fresh tilapia imports into the USA during the first 3.9% respectively. A significant share of the whole- fro half of the year slipped down 4.3% from the same period zen category continue to be directed to African markets last year, while the import value strengthened marginally which are paying better prices due to growing demand. (0.4%). Honduras, the main supplier of fresh tilapia to Substantial exports are also taking place to Iran and other the USA increased its exports significantly by 39%, taking Middle Eastern countries. Exports also increased to Latin advantage of lower supplies from producers who moved American countries namely Costa Rica, Peru and Chile. from farming tilapia to shrimp, particularly in Ecuador and Costa Rica.

Meanwhile, imports of frozen tilapia (whole and fillet) during the first half of 2014 were up 6.6% compared with the same time period a year ago. Whole frozen tilapia imports declined by 10% from China as it diverted Tilapia exports from China more exports to the African markets. Meanwhile, Seattle by product category US-based Tai Foong USA is the first company in the USA (volume in thousand tonnes) to source and sell ASC certified tilapia under its “North- Annual ern Chef” brand. The products have been on sale since mid-May this year across the country in Sprouts Farmers 2009 2010 2011 2012 2013 Market and Ingles Markets. The company reports that the Whole frozen 33.1 75.7 107.6 111.5 134.6 ASC certified tilapia has become the number one seller in Frozen fillets 134.9 186.5 158.1 179.6 182.1 their “Northern Chef” finfish line of products due its high Breaded 90.0 59.5 63.3 69.8 85.8 quality, clean taste and responsibly farmed attributes.

Total 259.1 322.0 329.0 360.9 402.5 Frozen fillet imports into the USA, which dominated January-June the frozen category, increased by 13.3% with China main- 2010 2011 2012 2013 2014 taining its position as the lead supplier. However, imports Whole frozen 32.2 51.3 47.7 59.1 60.7 are also increasingly coming from other sources. Frozen fillets 81.1 63.3 76.5 71.1 70.3 EU Breaded 23.6 25.2 26.6 31.1 32.3 Total 136.9 139.8 150.8 161.2 163.3 Continuing the growth from the first quarter of 2014, Source: China Customs frozen tilapia fillet imports into the EU-28 demonstrated

28 Globefish Highlights October 2014 TILAPIA a 6.7% increase from the same period in 2013, signaling a remains stable, with Honduras and Costa Rica as main growing demand. Although China was the main supplier, suppliers of fresh tilapia fillets to the USA, supplying ap- imports from this source dropped by 16.2% from a year proximately 5 300 tonnes and 2 900 tonnes respectively ago. As a result, other suppliers in Viet Nam, Indonesia, during the first half of 2014. Exports from Ecuador de- Thailand, Bangladesh, Taiwan Province of China and Cos- clined by 56% compared with the same period in 2013 as ta Rica took advantage of China’s drop and established many farmers moved from farming tilapia to shrimp. Fur- a stronger presence in the market place during the first ther development in value added products is expected, half of the year. During this period, Viet Nam and Indo- opening a wider range of options for the final consumer. nesia took an 18% and 14% share of the market compared with 4.4% and 11% during the same period last year. The In the domestic market, much of the tilapia con- growth in demand has been attributed to the availability sumption in the region has opened opportunities for mar- of ASC certified products in the market. kets other than for export. Incentives to develop small and medium scale production projects aim to meet the Latin America demand of the domestic market and substitute or com- plement other species traditionally consumed. Despite In Latin America, the tilapia industry started the these efforts, consumers in Latin America continue fo- year strongly, particularly for production. As a result, cusing more on price than on quality. Furthermore, small exports posted positive growth, compensating for the and medium scale producers have not established meas- international drop in prices. The outlook for the region ures that would guarantee product quality for the export

Imports Imports Fresh Tilapia Fillets: USA Frozen Tilapia Fillets: USA Jan-Jun Jan-Jun 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 (1 000 tonnes) (1 000 tonnes) Honduras 3.2 3.5 4.2 2.5 3.8 5.3 China 44.9 57.5 51.9 71.3 56.5 64.8 Costa Rica 2.9 3.2 1.7 1.2 3.5 2.9 Indonesia 4.0 4.6 4.0 6.4 5.4 5.4 Colombia 0.7 1.2 1.1 1.2 1.9 1.9 Thailand 0.2 0.5 0.4 1.1 0.5 0.8 Ecuador 4.8 4.1 4.1 3.3 3.2 1.4 Taiwan PC 1.1 1.0 0.8 0.8 0.7 0.5 Others 0.8 0.5 0.6 0.3 1.7 2.0 Ecuador 0.5 0.3 0.2 0.4 0.4 0.0 Total 12.4 12.5 11.7 8.5 14.1 13.5 Others 0.7 0.6 0.6 0.8 0.4 0.9 Source: NMFS Total 51.4 64.5 57.9 80.8 63.9 72.4 Source: NMFS

Imports Imports Whole Frozen Tilapia: USA Tilapia (by product form): USA Jan-Jun Jan-Jun 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 (1 000 tonnes) (1 000 tonnes) China 11.9 11.3 10.1 12.4 10.8 9.5 Whole frozen 20.1 20.0 16.9 18.0 19.0 16.0 Taiwan PC 7.3 7.5 5.9 5.1 7.5 5.6 Frozen fillets 51.4 64.5 57.9 80.8 63.9 72.4 Thailand 0.6 1.0 0.3 0.2 0.2 0.3 Fresh fillets 12.4 12.5 11.7 8.5 14.1 13.5 Others 0.3 0.2 0.6 0.3 0.5 0.6 Total 83.9 97.0 86.5 107.3 97.0 101.9 Total 20.1 20.0 16.9 18.0 19.0 16.0 Source: NMFS Source: NMFS

Globefish Highlights October 2014 29 TILAPIA market, which is currently dominated by large producers.

Domestic prices remain stable, in Honduras wholesale prices vary between USD 1.43 and USD 2.00 and in Recent news: Cluster farming helps Guatemala between USD 1.15 and USD 1.41 for whole ti- improve tilapia production in Fiji lapia. In collaboration with the EU and the Fiji Ministry of Fisheries and Forests, the Asia Secretariat of the Pacific Community (SPC) has been working with small-scale tilapia farmers to improve production by working together in According to national statistics, Indonesia, the sec- cluster groups. Through work in Asia and Africa, ond largest exporter of frozen tilapia fillets behind China, experience has demonstrated that small-scale supplied 22% more tilapia to the international market in farmers can bolster economies of scale while the first half of 2014 compared with the same time pe- increasing their bargaining power for inputs by riod in 2013. Notably, the USA absorbed nearly 60% of the working in collaboration via clusters. share. Taiwan PC exported 11 391 tonnes of whole frozen In Fiji, over a dozen farmers have formed tilapia during the first half of 2014. Taiwan PC supplied two cluster groups in the Western and Central close to 53% of frozen tilapia (mostly whole products) to Divisions though the efforts of SPC’s Fisheries, the USA. The Middle East is also an important market for Aquaculture and Marine Ecosystems (FAME) Taiwanese tilapia. division and the European Union-funded Increasing Agricultural Commodity Trade (IACT) Tilapia imports into Asian countries are rather small project. Clusters have been assisted through as most of the local production enters the domestic mar- technical assessment of their farming methods, kets. During the first half of the year, imports into Sin- recommendations on how to improve production gapore, Malaysia, Hong Kong SAR, Republic of Korea and and regular cluster meetings to help coordinate Japan totaled approximately 2 000 tonnes according to their efforts. national statistics. Imports into Japan mainly constituted Since the formation of the clusters in 2013, of izumidai quality (sashimi) tilapia, which is supplied by the production performance of the farmers Taiwan PC. Japan also has imports from the Philippines, involved has been closely monitored, and the which is mostly directed to the Filipino community in results have been positive. “The production Japan. Recently, frozen tilapia imports are also being of tilapia by the participating farmers in the shipped into new markets namely Iran, Ukraine and Ka- Central Division cluster in the 2013–2014 period zakhstan. has doubled, in comparison with the 2011–2012 period prior to the IACT project intervention. Ghana Production for the Western Division cluster is also expected to increase significantly” said Ghana’s ban on imports of tilapia aims to build a Jone Varawa, a member of the SPC aquaculture stronger domestic production sector, as the move is team working with the clusters. thought to spur growth in local aquaculture. The issues He explained that, in a cluster model, Ghana is currently facing can be partially attributed to some farmers may choose to specialise in one its high reliance on imported products. According to the aspect of the fish custody chain, such as in Minister of Fisheries and Aquaculture, the ban would cre- hatchery production, fingerling nursery, or ate about 50 000 jobs in the aquaculture sector of the feed manufacture. Other farmers then ‘cluster’ economy, which is aiming to provide livelihood opportu- around these nodes of services and are able to nities to young unemployed persons. Whether the import concentrate their efforts purely on fish grow- ban will result in a viable domestic sector able to offer out. products competitive with other sources of protein re- He added further, “The farm cluster mains to be seen. strategy helps commercial tilapia farmers in Fiji to take responsibility for their own aquaculture services and farm inputs, rather than relying Outlook heavily on government support which is better directed toward small-scale farms growing fish The tilapia market will remain firm with steady de- for food security. This is a welcome development mand leading to stronger prices in producing countries’ for farmers who will be able to better respond domestic markets. As long as tilapia prices stay competi- to the market demand for fish and contribute tive, it is possible for new markets to strengthen and de- towards improving food security in the country,” velop further. he said. Source: FIS.com

30 Globefish Highlights October 2014 PANGASIUS

Demand continues to pick up in non-major markets, major producer lays out five year plan

With the largest producing country Viet Nam planning for higher production along with steady production from other producers, supplies of pangasius will remain stable. During the first half of 2014, frozen pangasius fillet imports by more than 70 countries increased by 77% compared with the first half of 2013. Though the USA, the single largest market for frozen pangasius fillets, imported 5% less, imports continued to increase into markets in the EU, Latin America and Asia.

Viet Nam to the Russian Federation increased by 14% compared with the same period of 2013, reaching USD 29 million In a move to strengthen the industry, a five year in value. The Russian Federation is an attractive market plan has been approved by the Ministry of Agriculture and for Viet Nam because of its tax incentives and strong Rural Development (MARD) to increase the production of consumption. pangasius to 1.6 million tonnes by 2020 and up exports to 650 000 tonnes. The plan, to be executed by 2015, calls USA for expanding infrastructure, selecting higher quality strains and improving the overall production chain. In a During the first half of 2014, frozen catfish fillet related development, the MARD has declared that as of imports decreased marginally (-7%) from a year ago due to June 2014, frozen pangasius fillets for exports must not tight supply from the major producer, Viet Nam. Though contain moisture exceeding 83% while glazing is limited not reflected in the table below, it should be noted that to 10%. The aim is to ensure that the quality of products for frozen pangasius fillets, there were 16 tonnes and 69 is maintained as the industry strives to revive the market. tonnes imported from Bangladesh and China respectively.

Viet Nam is also planning to develop a sustainable Aside from pangasius fillet imports, nearly 4 100 supply chain in order to increase exports to the EU. tonnes of frozen Ictalurus sp catfish fillets were also At present, pangasius is exported to 150 countries imported, a growth of 11% from the same period in 2013. and territories totalling a revenue of more than USD 1.8 billion a year, of which the EU accounts for 21% of EU (Source: VASEP). Exports to the EU experienced a 9% decline during the first half of 2014 compared with the During the first half of 2014, imports of frozen same period last year, which is considered to be mainly pangasius fillets into the EU declined by nearly 10% attributed to the EU’s economic slump. To revive exports from the same period in 2013, continuing the downhill to the EU, VASEP recommends working to build a national trend from the first quarter of 2014. Imports into most brand for the product and improved organization of EU member countries declined including the leading distribution activities. Furthermore, it is also proposed importers; Spain, the Netherlands and Germany. On that Viet Nam defines the export price for pangasius via public auctions with buyers. Imports Meanwhile, the United States Department of Frozen Catfish fillets: USA Commerce released its preliminary tariffs on Vietnamese Jan-Jun frozen pangasius fillet imports. The tariffs have been set at a ‘zero’ to USD 2.39 (EUR 1.75) per kg on all fillets 2009 2010 2011 2012 2013 2014 exported from August 2012 through July 2013. The new (1 000 tonnes) duties will take effect when the final decision is made. Viet Nam 16.4 19.6 34.9 47.4 48.4 44.8 Relevant parties will have 120 days to reply before a final China 4.3 5.6 2.0 0.2 0.0 0.0 determination is issued. Thailand 3.5 1.4 0.7 0.0 0.0 0.0 Malaysia 0.1 0.3 0.0 0.0 0.0 0.0 Following the lifting of the Russian import ban on 13 companies in Viet Nam (see section on the Russian Indonesia 0.2 0.1 0.0 0.0 0.0 0.0 Federation below) strong growth in exports to the Russian Others 0.9 1.0 0.3 0.0 0.0 0.0 Federation is predicted for the second half of the year. Total 25.4 28.0 37.9 47.6 48.4 44.8 During the first four months of 2014, Viet Nam’s exports Source: NMFS

Globefish Highlights October 2014 31 PANGASIUS the other hand, imports were higher into several other void. countries, namely the UK, Italy, Slovenia, Cyprus, Croatia and Malta. A veterinary doctor from the technical team in charge of the General Coordination of Fishing and India Aquaculture Sanitary of the Monitoring and Control Secretariat in Brazil confirmed that “the issuance of new During the first half of 2014, India imported licenses to import aquatic animals and their aquaculture approximately 4 000 tonnes of frozen basa fillets from and/or fishing products originating in Viet Nam has Viet Nam (valued at USD 6.5 million), continuing their been banned since 22 September, 2014.” He added that positive import trend from the first quarter. Aside from “import licenses that have already been issued will not the local catering sector which is the main users of this be encompassed in the restriction and can be used until product, Abad Fisheries, one of India’s leading seafood their validity expires” (Source: MercoPress). exporters, is entering the value added market with a range of products including breaded items targetting Outlook consumers in the middle class and above. The market will likely remain firm with good supplies Hong Kong SAR from Viet Nam and other producers. On the demand side, sales will remain strong in non-major markets. Hong Kong SAR imported close to 8 000 tonnes of frozen pangasius fillets from Viet Nam during the first half of 2014. Seafood consumers there will now have access to ASC certified fish in supermarkets following Market Recent news: Insurance challenges for Place by Jasons’ introduction of ASC labeled responsibly farmed pangasius in their stores. The NBM pangasius aquaculture fillets (454 g) is a frozen product farmed and supplied by the ASC certified An My Fish JSB farm in Viet Nam. There Speakers at the recent Global Aquaculture are currently 44 pangasius farms certified against the Alliance’s annual Global Outlook on Aquaculture ASC standard and four more farms are currently under Leadership (GOAL) conference in October in Ho assessment. ASC certified seafood is growing in popularity Chi Minh City, Viet Nam, reported that insurance across Hong Kong SAR and Asia. will be crucial help aquaculture production develop more quickly. Speakers noted that currently, obtaining insurance for many of the small and The Russian Federation medium sized operators, which comprise much of the aquaculture sector, is a significant hurdle. The Russian Federation imported roughly 6 000 Paddy Secretan, representing Aquaculture tonnes of frozen pangasius fillets from Viet Nam in 2013. Underwriting Management Services, stated, In early 2014, the Russian Federation ceased imports of “There is no specific insurance policy designed several Vietnamese seafood products, including tra, basa for the fish farmer. If you own a hairdresser or a fish and frozen shrimp procuts, for failing to meet food garage, you can get a specific insurance policy. safely requirements. The regulation took effect from 31 A fish farmer cannot.” This is a challenge due January 2014, but was recently lifted halfway through to the significant losses that the sector has sus- the year, when both countries agreed to review the ban tained over the years, leading to insurers think- and update the exchange of information in order to ing that the risk is not worth it. Though farmed resume trade. seafood standards were noted as making it easier for insurers to choose companies that have more Brazil sophisticated business models, the plethora of standards makes it very confusing for them. Between January and August 2014, Brazil imported Au Quan Hien of Aegis Insurance Services re- about 27 000 tonnes of frozen pangasius fillets from ported that in Viet Nam, the industry does not Viet Nam, a significant increase of 88% more than look like a great option for insurers as the risks compared with the same period last year. However, currently outweigh the possible benefits. For eve- reporting incidences of lack of sanitary and phyto- ry USD 1 of insurance, there is USD 3 of claims, sanitary controls, Brazil is temporarily suspending said Hien, creating a very weak case for insurers. pangasius import licences. The news was confirmed by Hien suggested the possibility for Vietnamese Argentina’s Chamber of Fish Processing Plants Exporters, companies to come together in a cooperative, which reported that Brazil will stop importing about 10 which would provide more scale and less risk for 000 containers of Vietnamese pangasius per year. The insurance companies. Brazilian aquaculture industry is considering increasing the production of catfish domestically in order to fill the Source: Undercurrent News

32 Globefish Highlights October 2014 EUROPEAN SEABASS AND GILTHEAD SEABREAM

Tighter supply ahead for seabass and seabream as Turkey eases off production

A recent Federation of European Aquaculture Producers (FEAP) report has highlighted the lower juvenile production last year in Turkey, a trend which is expected to continue in 2014. Together with similar scale backs in a number of other producing countries, the net result is expected to be an overall drop in production, particularly for bream, over at least the next two years. Considering that a significant price rise has accompanied flat production growth this year, which suggests that demand is growing, this could well be a positive turn towards more consistent profitability for the industry as a whole. Production Bass and bream production (2012) Seabass (Dicentrarchus labrax): World Jan-Dec Seabass 2009 2010 2011 2012 2013* 2014* 24% (1 000 tonnes) Turkey 47 51 47 66 60 64 Greece 34 40 44 43 45 44 Egypt 7 18 19 15 15 14 Spain 13 12 18 15 15 15 Seabream 76% Italy 7 7 7 7 8 8 France 7 9 8 7 7 6

Source : FAO Others 8 9 11 10 10 11 Total 122 146 154 162 160 162 Greece and Turkey Source: FAO (until 2011) (*) Estimate

So far this year, the relatively higher prices are only Production bringing some relief to a Greek industry still in turmoil. Selonda is undergoing major restructuring that sees Seabream (Sparus aurata): World banks take 82% ownership, while industry leader Nireus Jan-Dec sinks deeper into the red. Lower biomass this year has 2009 2010 2011 2012 2013* 2014* meant that the struggling companies have not been (1 000 tonnes) able to take full advantage of higher prices, and a large Greece 61 57 71 72 73 71 proportion of sales are still being made below cost price. Turkey 30 29 33 32 45 47 On the positive side, however, major European markets Spain 24 21 16 17 18 19 are slowly recovering - a positive development for Greek producers whose dependence on export markets will be Egypt 8 17 16 16 17 17 an advantage if Greece lags behind overall EU economic Italy 6 7 6 6 8 7 performance. Tunisia 2 3 5 6 6 7 Cyprus 3 3 3 3 3 3 Seabass and Seabream - In Italy, origin: Greece Malta 2 2 1 3 3 3 France 1 3 2 2 2 2 Seabass fresh whole 300-450 gr/pc EUR/kg Seabream fresh whole 300-450 gr/pc Israel 1 1 1 2 2 2 6.5 Others 7 8 7 8 8 9 6.0 5.5 5.10 Total 144 151 161 168 185 187 5.0 4.5 4.95 Source: FAO (until 2011) (*) Estimate 4.0 3.5 Due to lower supply this year, Greece posted lower 3.0 volumes of bass and bream to all major markets except for France in the case of bream, which continues to go Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 May-10 May-11 May-12 May-13 May-14 against the trend in its continued preference for Greek Source: European Price Report fish. The Greek export price for both bass and bream was

Globefish Highlights October 2014 33 EUROPEAN SEABASS AND GILTHEAD SEABREAM

Exports Exports Fresh Seabream: Greece Fresh Seabream : Turkey Jan-Jun Jan-Jun 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 (1 000 tonnes) (1 000 tonnes) Italy 14.2 14.0 10.2 10.7 9.5 9.2 Russian Fed. 0.0 0.3 0.7 0.8 1.1 1.9 Spain 5.4 4.1 4.2 4.6 4.8 4.8 Netherlands 0.5 0.4 0.5 0.5 1.4 1.7 France 3.5 3.3 3.1 3.0 3.0 3.3 Lebanon 1.0 1.0 1.0 0.7 1.6 1.6 Portugal 2.3 1.2 2.1 2.3 2.4 2.3 Italy 0.9 1.0 1.0 0.9 1.6 1.6 Germany 1.2 1.1 1.0 1.2 1.1 1.1 Spain 0.3 0.1 1.1 1.0 0.8 1.3 Others 2.7 2.6 2.6 2.9 2.7 2.7 Others 0.7 0.6 0.8 1.2 2.0 2.9 Total 29.3 26.3 23.2 24.7 23.5 23.4 Total 3.4 3.4 5.1 5.1 8.5 11.0 Others 0.5 0.6 0.6 0.6 0.8 0.7 Source : State Institute of Statistics Total 13.9 13.7 11.4 11.2 10.9 11.1 Source : EUROSTAT Exports Exports Fresh Seabass : Turkey Jan-Jun Fresh Seabass : Greece 2009 2010 2011 2012 2013 2014 Jan-Jun (1 000 tonnes) 2009 2010 2011 2012 2013 2014 Netherlands 1.2 0.9 0.8 0.5 1.5 2.0 (1 000 tonnes) Italy 2.3 1.2 0.9 1.2 1.5 1.9 Italy 7.1 8.9 9.0 7.9 7.1 6.7 Russian Fed. 0.0 0.3 0.7 0.5 1.1 1.8 France 1.5 1.8 2.0 1.7 1.4 1.2 Spain 1.5 1.3 1.1 0.4 1.2 1.3 Spain 2.0 2.8 2.1 1.2 1.9 1.1 UK 0.3 0.2 0.2 0.6 0.8 1.0 Portugal 1.1 1.3 1.3 1.1 1.2 1.1 Lebanon 0.5 0.7 0.6 0.3 0.5 0.6 UK 0.9 1.7 2.0 0.3 1.0 0.8 Greece 1.5 1.0 0.4 0.4 0.0 0.0 Others 1.6 1.8 2.3 2.8 1.5 1.4 Others 0.1 0.2 0.3 0.4 1.2 1.9 Total 14.2 18.3 18.7 15.0 14.1 12.3 Total 7.4 5.8 5.0 4.3 7.8 10.5 Source : EUROSTAT Source : State Institute of Statistics up in the first six months of the year, by some 13%, and 7% just for bass. while the United Arab Emirates and Lebanon are notable growth markets. Export prices have been increasing for In Turkey, as far as prices in July, August and Turkish fish, up by 10% for bass and 18% for bream from September 2014 are concerned, bass and bream January to August 2014. producers witnessed the most stable period in the last few years thanks to the tourism season and favorable The Russian Federation climate for export (i.e. high demand and weak Turkish lira). The mean price of fresh/whole bass which was After the introduction of the food embargo from about USD 6.0 in January and remained about USD 6.32 western countries, which came into force in August 2014, in August 2014. Increasing demand for 400-600 g bream the segment of bass and bream in the Russian fish market from Europe had a positive impact on price of this species was influenced by changes in the geography of exporting and mean price of fresh/whole bream, which was USD countries and logistics, while the assortment of product 5.48 in January went up to 6.55 in August 2014. composition remained the same. Deliveries of bass and bream from Italy, France and Greece were replaced by Turkey is also being proactive on the marketing side, Turkey and North African countries. The major trend was looking increasingly to value added fillets and ready-to- the further strengthening of Turkey as the main suppliers cook products to diversify their product range and open of bass and bream on the Russian market. The Russian up access to new markets. Northern Europe in particular ban is an opportunity for Turkey, not least because bass is a target in this respect. Turkey continues to work its and bream are the second largest category after salmon way into traditionally Greek markets at the same time, on Russian shelves, and the Russian Federation is now and its share of supply to Italy, UK, Spain, Germany and facing a shortage of the latter option. the Netherlands was up in the first six months of 2014. Exports of bass were also up substantially to the USA, According to the data from Russian Federal State

34 Globefish Highlights October 2014 EUROPEAN SEABASS AND GILTHEAD SEABREAM

Customs, by the beginning of October 2014, the Russian year could stifle demand once again. Federation imported 3 131 tonnes of bream and 2 963 tonnes of bass. Turkey had a share of 93% in the bream volumes and a share of 92% in the bass volumes. The Russian Federation is now Turkey’s top market for bream Imports and moving rapidly up the ranks for bass as well. Russian Fresh Seabream and Seabass: Italy growth continues to outpace all other major markets, (quantity) absorbing larger volumes at rising prices – a sign of an upward trend in underlying demand. In addition to Jan-Jun Turkey, deliveries of bass and bream from Northern 2009 2010 2011 2012 2013 2014 African countries are increasing, especially from Tunisia (1 000 tonnes) and Morocco. Seabream (dentex/pagellus) Italy Spain 0.3 0.3 0.3 0.3 0.3 0.2 Greece 0.6 0.6 0.4 0.5 0.2 0.2 Import demand for bass and bream on the Italian Total 1.1 1.1 0.8 0.9 0.5 0.6 market shows slight improvement so far this year, although it is likely that the drop in domestic production Seabream is a significant contributing factor. The composition of (gilthead) external suppliers is shifting, with Croatian suppliers Greece 7.5 8.3 8.3 9.4 8.8 8.2 increasing their share of the market, while imports of Turkey 0.9 1.0 1.0 0.9 1.5 1.6 cheaper Turkish-origin fish continue to grow each year. Malta 0.5 0.7 0.8 1.0 0.7 0.6 The seasonal summer spike in prices was more pronounced Total 9.6 10.8 11.0 12.4 12.2 11.6 than usual this year, suggesting a more active market, but economic slowdown going into the second half of the Seabass Greece 5.1 8.0 8.4 7.3 6.9 6.8 Turkey 2.3 1.2 0.9 1.2 1.5 1.8 Imports Croatia 0.4 0.5 0.9 0.6 0.6 0.7 Fresh Seabream and Seabass: Italy France 0.8 0.6 0.6 0.5 0.5 0.3 (value) Total 8.8 10.5 11.1 10.1 9.9 10.0 Jan-Jun Gr.Total 19.5 22.3 22.9 23.4 22.6 22.2 2009 2010 2011 2012 2013 2014 Source: Eurostat (million Euro) Seabream Imports (dentex/pagellus) Fresh Seabream and Seabass: Spain Spain 2.8 2.9 2.8 3.0 2.7 2.7 (value) Greece 2.8 3.0 2.3 2.9 0.9 1.1 Jan-Jun Portugal 1.0 1.1 1.3 0.8 0.8 1.1 2009 2010 2011 2012 2013 2014 Total 7.5 7.8 6.7 7.2 4.8 5.5 (million Euro) Seabream Seabream (gilthead) (all species) Greece 27.2 35.9 42.2 41.0 38.4 40.5 Greece 16.4 16.5 20.2 14.1 18.9 18.7 Turkey 2.9 3.9 4.7 3.6 6.0 7.3 Turkey 1.1 0.4 5.1 4.6 3.5 6.9 Malta 1.8 3.1 4.2 4.0 2.9 2.7 Morocco 0.8 0.6 1.8 1.9 1.5 1.7 Spain 2.2 2.2 2.3 3.2 2.4 2.0 Portugal 0.7 0.5 0.5 1.4 1.4 1.4 Total 36.7 48.4 57.7 56.6 54.7 58.4 France 1.7 1.7 0.8 0.6 0.7 0.6 Seabass Total 21.0 20.3 28.9 22.7 26.2 30.0 Greece 23.3 35.1 40.7 41.0 35.6 38.9 Seabass Turkey 8.2 4.1 3.8 6.0 6.0 8.6 Greece 8.5 10.4 10.9 7.6 11.7 8.5 Croatia 1.7 2.1 4.0 2.8 3.1 3.8 Turkey 5.8 4.8 4.8 1.8 5.2 7.1 France 6.4 5.2 5.3 4.1 4.3 3.0 France 2.5 2.0 1.6 1.6 1.6 2.0 Spain 0.6 1.0 0.8 1.5 2.2 1.9 Total 17.9 18.2 17.9 11.4 19.2 18.6 Total 41.5 49.1 57.3 57.6 52.7 57.8 Gr. Total 38.9 38.5 46.8 34.1 45.4 48.6 Gr.Total 85.8 105.3 121.7 121.4 112.2 121.7 Source: Agencia Tributaria Source: Eurostat

Globefish Highlights October 2014 35 EUROPEAN SEABASS AND GILTHEAD SEABREAM

Imports Imports Fresh Seabream and Seabass: Spain Fresh Seabream and Seabass: France (quantity) (quantity) Jan-Jun Jan-Jun 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 (1 000 tonnes) (1 000 tonnes) Seabream Seabream (all species) (dentex/pagellus) Greece 4.7 3.9 3.9 3.2 3.9 4.0 Spain 0.2 0.2 0.3 0.3 0.1 0.2 Turkey 0.3 0.1 1.0 1.1 0.9 1.5 Greece 0.3 0.3 0.5 0.3 0.0 0.1 Morocco 0.2 0.1 0.2 0.2 0.2 0.2 Total 0.7 0.8 1.0 0.7 0.3 0.4 France 0.2 0.2 0.1 0.0 0.0 0.0 Seabream Total 5.7 4.6 5.5 4.6 5.1 5.8 (gilthead) Seabass Greece 3.0 2.5 2.3 1.8 3.0 3.1 Greece 1.9 2.5 2.2 1.5 2.5 1.9 Spain 0.9 0.7 0.3 0.9 1.3 1.3 Turkey 1.5 1.3 1.1 0.4 1.2 1.5 Total 3.9 3.5 2.8 3.0 4.7 4.9 France 0.3 0.2 0.2 0.1 0.1 1.3 Seabass Total 3.9 4.1 3.5 2.0 4.0 4.8 Greece 1.5 1.7 2.0 1.3 1.4 1.1 Gr. Total 9.6 8.7 9.0 6.6 9.1 10.6 Spain 0.1 0.2 0.3 0.4 0.6 0.4 Source: Agencia Tributaria Total 2.3 2.4 2.7 2.3 2.7 2.2 Gr. Total 7.0 6.7 6.6 5.9 7.7 7.5 Imports Source: DNSCE Fresh Seabream and Seabass: Germany Jan-Jun 2009 2010 2011 2012 2013 2014 Imports (1 000 tonnes) Fresh Seabream and Seabass: France Seabream (value) (dentex/pagellus) Jan-Jun Greece 0.2 0.3 0.2 0.2 0.2 0.3 2009 2010 2011 2012 2013 2014 Total 0.3 0.3 0.2 0.2 0.2 0.3 (million Euro) Seabream Seabream (gilthead) (dentex/pagellus) Turkey 0.0 0.0 0.1 0.2 0.7 0.7 Spain 0.6 0.7 1.2 1.1 0.6 0.6 Greece 0.4 0.5 0.4 0.5 0.7 0.4 Greece 1.3 1.4 2.6 1.4 0.2 0.4 Italy 0.1 0.1 0.1 0.0 0.1 0.4 Total 2.4 2.9 5.0 2.8 1.1 1.4 Total 0.7 0.7 0.7 0.7 1.7 1.8 Seabream Seabass (gilthead) Greece 0.2 0.3 0.3 0.3 0.3 0.2 Greece 10.4 11.2 11.6 9.4 11.2 11.5 France 0.1 0.1 0.1 0.1 0.1 0.1 Spain 2.8 3.0 1.4 4.8 6.3 4.8 Italy 0.0 0.1 0.2 0.0 0.1 0.1 Total 13.6 15.6 14.6 15.6 19.9 19.0 Total 0.4 0.5 0.7 0.8 1.1 1.1 Seabass Gr.Total 1.4 1.6 1.6 1.8 3.0 3.2 Greece 6.4 8.4 9.9 8.1 6.8 6.0 Source: Germany Customs Spain 0.6 1.3 1.8 2.2 3.9 2.5 Netherlands 0.9 0.9 0.9 1.1 1.1 1.3 Spain Total 10.7 12.4 14.5 14.1 14.6 13.5 Gr. Total 26.7 30.9 34.1 32.4 35.6 33.9 Spain’s economic outlook is generally more positive than its Mediterranean EU neighbours, at least in relative Total 4.5 4.5 5.7 5.4 5.8 5.7 terms, with the bass and bream market showing some Gr. Total 10.9 11.4 13.7 12.8 14.5 14.8 signs of life in the Spanish market. By August 2014, Source: Direction Nationale des Statistiques du Commerce wholesale volumes and prices, domestic production and Extérieur – DNSCE import volumes were all up, although in the case of bass

36 Globefish Highlights October 2014 EUROPEAN SEABASS AND GILTHEAD SEABREAM this was offset by a substantial weakening of import Imports prices. Fresh Seabass : USA France Jan-Jun 2012 2013 2014 There has not been much improvement in wholesale (1 000 tonnes) prices in France this year, and import demand for both Greece 0.9 1.1 1.2 species appears to be weak. Higher prices for Greek Turkey 0.1 0.2 0.8 product is a contributing factor but increased promotion Guatemala 0.0 0.0 0.2 of domestically sourced fish and a sluggish economy are also no doubt playing a role. Trinidad & Tobago 0.0 0.2 0.1 Spain 0.0 0.1 0.1 Germany and UK Others 0.2 0.3 0.2 Total 1.2 1.9 2.6 The German market is developing well, with the Source : U.S. Department of Commerce, Bureau of Census growth of the Turkish share of bream supplies standing out. Turkish fish started out much cheaper than its Greek Imports competition on the German market, but it is now catching up fast on the back of strong demand. Meanwhile, the UK Fresh Seabream : USA is displaying distinct sensitivity to the higher prices and Jan-Jun volumes have dropped appreciably for both species. 2012 2013 2014 (1 000 tonnes) USA Greece 0.1 0.1 0.1 Others 0.0 0.1 0.1 The US market is another where Turkish suppliers Total 0.1 0.2 0.2 are quickly increasing their share of the market at the expense of Greece. Turkey quadrupled its share of the US Source : U.S. Department of Commerce, Bureau of Census market in 2013, and on the current trajectory a similar result should be achieved in 2014. If it continues, this trend will see Turkey become the dominant supplier to Imports the rapidly expanding US market by next year. Fresh Seabass: UK Jan-Jun Outlook 2009 2010 2011 2012 2013 2014 (1 000 tonnes) In the short-term, prices on the major European markets will begin their annual downward slide as we Netherlands 0.7 1.0 0.8 0.6 1.2 1.4 move into autumn and winter, with the uptrend beginning Greece 0.9 1.7 2.3 2.3 2.7 1.1 again in December. Looking slightly further ahead, while France 0.3 0.2 0.4 0.3 0.2 0.2 Greece can now work to consolidate and push operating Italy 0.4 0.1 0.1 0.0 0.0 0.0 costs down, it is Turkey that has undoubtedly maneuvered Others 0.3 0.2 0.1 0.6 0.9 0.9 itself into the best position. Turkish producers are clearly Total 2.7 3.1 3.7 3.9 5.0 3.6 mindful of feed costs and the general rule that ramping up production too quickly has negative impacts. They Source : Her Majesty's Revenue & Customs have also recognized that the current financial limits on Greek expansion means that Turkey can reasonably Imports expect tightening supply on their side to result in boosted Fresh Seabream: UK prices and thereby widening margins. An additional factor is higher fish mortalities in 2014, said to be slightly Jan-Jun above 2013 (around 5% more), adding to expectations for 2009 2010 2011 2012 2013 2014 balanced supply and price stability in 2015. On the market (1 000 tonnes) side, Turkish exporters have also sought to maximize their Greece 0.5 0.5 0.6 1.2 1.7 1.0 growth potential. The Russian Federation, together with Netherlands 0.3 0.3 0.3 0.2 0.4 0.3 emerging markets in the Middle East, are now essentially France 0.2 0.1 0.2 0.1 0.1 0.1 wholly Turkish markets and are moving upwards rapidly, Germany 0.0 0.0 0.0 0.1 0.1 0.1 while Turkish exporters have also secured a firm foothold in the US and major EU markets (with the exception of Others 0.2 0.2 0.3 0.3 0.0 0.4 France). If prices strengthen in line with expectations Total 1.1 1.1 1.3 1.9 2.3 1.9 following supply contractions, then the future of Turkey’s Source : Her Majesty's Revenue & Customs bass and bream sector may well be bright.

Globefish Highlights October 2014 37 SALMON

Norway adapts quickly as Russian ban prompts global salmon market shuffle

In the wake of the Russian ban on imports of seafood from certain Western countries, exporters and importers alike have scrambled to secure new trading partners to minimize disruption to supply chains and the resulting loss of revenue. In the market for farmed Atlantic salmon, Norway has had to find new markets for more than 100 000 tonnes of fish, while Chile has sought to take full advantage of the gap left in the vast Russian market by the exit of its main competitor.

Production Recent news Farmed salmon: World Jan-Dec Prior to the Russian ban, analysts were 2009 2010 2011 2012 2013* 2014* somewhat divided as to the magnitude of the impact on the Norwegian industry, but the (1 000 tonnes) general feeling was that the globalized nature ATLANTIC SALMON of the market and the continuing strength of Norway 863 940 1065 1232 1100 1250 demand in alternative export destinations Chile 233 123 264 400 515 528 would prevent prices and revenues from fall- UK 133 155 158 163 155 160 ing substantially. As we enter the fourth quar- Canada 100 101 102 108 115 120 ter, the picture is still not completely clear, Faroe Islands 51 45 60 77 60 65 but it appears that these forecasts were essentially correct. After a concerted effort by Australia 30 32 35 44 31 32 the Norwegian salmon sector to identify new Ireland 12 16 12 12 15 12 markets and reroute supply volumes, togeth- USA 14 20 19 19 15 16 er with a regulatory decision to temporar- Others 3 6 10 12 3 4 ily increase the Maximum Allowable Biomass Total 1440 1438 1726 2067 2009 2187 (MAB) for farms by 6% to prevent a spike in PACIFIC SALMON supply volumes, Norwegian export revenue Chile 158 123 161 164 160 115 in August and September 2014 was actually higher than last year. New Zealand 12 13 14 12 12 13 Japan 16 15 0 10 8 8 Meanwhile, in Chile, the outlook is look- Total 186 151 175 186 180 136 ing more positive after some difficult years. Gr. Total 1626 1589 1901 2252 2189 2323 Sanitary conditions are improving, and boom- Source: FAO (until 2012) (*) Estimate ing demand in core markets is pushing up prices even as production continues to grow, albeit at a slower rate. The additional opportunities presented by the Russian ban have Salmon production (farmed and wild) been a further boost to the Chilean industry, by species (2012) although the transfer from Norwegian to Chil- Sockeye (=Red) salmon ean salmon is not straightforward, as the lat- 5% ter supplies mainly frozen and value-added Coho(=Silver) product and logistical constraints make it dif- salmon ficult to focus on fresh whole salmon as Nor- 6% way has traditionally done. The fresh whole Chum (Keta=Dog) salmon segment in the Russian Federation is now sup- 6% plied primarily by the Faroe Islands, who are benefiting from the exceptionally high prices Pink Atlantic salmon resulting from the lack of competition. (=Humpback) 69% salmon 14%

Source : FAO

38 Globefish Highlights October 2014 SALMON

Salmon fillet prices (FOB Miami, chilled, Exports (value) C-trim, Alt. fresh, 3-4 bs) Salmon and Trout: Norway 6.00 Jan-Jun 5.50 2009 2010 2011 2012 2013 2014

5.00 (bill. NOK) Salmon 10.4 13.7 14.9 15.2 18.9 23.6 4.50 Fresh 8.1 10.2 11.4 12.1 15.7 19.3 4.00 Frozen 0.4 0.6 0.8 0.6 0.4 0.6 3.50 Fresh fillet 1.2 1.8 1.6 1.4 1.7 2.2 3.00 Froz. Fillet 0.7 1.1 1.1 1.1 1.1 1.5

2.50 Trout 0.6 0.5 0.4 0.8 1.0 1.2 Source: Norwegian Seafood Council 2.00 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14

Source: European Price Report Exports (quantity) Salmon and Trout: Norway Prices Jan-Jun 2009 2010 2011 2012 2013 2014 The full effect of the Russian ban on Norwegian (1 000 tonnes) salmon price levels is difficult to identify precisely, as Salmon 312.1 358.1 359.6 493.7 460.8 503.7 there have been a range of other factors influencing price Fresh 256.0 280.9 292.1 415.7 392.0 428.8 trends over the last couple of months. Prices did indeed Frozen 16.8 21.6 22.2 24.3 16.1 18.6 drop directly prior and following the ban, particularly for Fresh fillet 24.3 34.7 26.9 31.4 32.5 35.7 the larger sizes that the Russian market tends to favor, Froz. Fillet 15.0 20.9 18.4 22.3 20.2 20.6 but some commentators point to the seasonal increase in harvesting volumes at the end of the summer as the Trout 18.1 12.3 9.2 25.6 25.2 25.7 primary factor behind the drop. The price fall was, in any Source: Norwegian Seafood Council case, short-lived and the NASDAQ salmon index showed prices for fresh whole Atlantics stabilizing around NOK 32 the first three quarters at 725 000 tonnes, 9% higher than per kg in late August 2014. In fact, the average price of compared with the same period last year, for a total value Norwegian exports in September 2014 was higher than the of NOK 31.9 billion, representing a 17% increase. same month last year. In September, the Russian ban and continuing For Chilean salmon on the US market, recent prices tensions in Ukraine saw a decrease of 56% in export have been slightly down compared with last year’s, value to Eastern Europe compared with September 2013. despite the diversion of a proportion of Chilean supply However, the effectiveness of the Norwegian strategy to to the Russian market. Brazilian importers, however, are redirect supply volumes is reflected in September value reporting having to pay higher prices as a consequence of increases of 15%, 19% and 10% to the EU, the USA and the willingness of their Russian counterparts to pay over Asia respectively, combined with a 4% rise in the average the odds. Meanwhile, Chilean Coho prices on the Japanese export price compared with the same month in 2013. In market are much improved so far this year, boosted by low the EU, it is mainly demand from Polish smokehouses that production volumes. is pushing up prices and revenues, but the substantially weaker Norwegian krone this year is also a significant In the market for wild salmon, the ban has seen factor. Russian pink salmon catches absorbed to a greater extent by the domestic market, and the lack of an alternative The USA is a prime example of where Norwegian source of raw material is creating problems for Chinese exporters have been able to take full advantage of Chile’s processors who must now pay more for US fish. Russian distraction, ramping up exports of fresh whole Atlantics but at the same time focusing on the value- Norway added fillets that the US market prefers. These products, particularly frozen fillets, are currently in high demand in Despite a relatively small increase in biomass at the the USA, with Norway able to make sales at considerably beginning of the year compared with 2014, good water higher prices than last year. If the current trajectory temperatures this year have allowed for faster growth and continues, 2014 could be a record year for Norwegian Norwegian export volumes are up significantly this year. exporters in the USA. The Norwegian Seafood Council (NSC) put the figure for

Globefish Highlights October 2014 39 SALMON

On the negative side, sea lice levels continue to Exports (quantity) concern the industry in Norway, adding to production Salmon and Trout: Chile costs and resulting in forced harvesting when regulatory Jan-Jun limits are breached. An additional recent setback is the 2009 2010 2011 2012 2013 2014 ban imposed by Chinese authorities at the beginning of (1 000 tonnes) September, banning all imports of whole Norwegian salmon due to concerns over infectious salmon anemia (ISA). Salmon 157.6 89.7 114.0 175.8 231.4 246.1

Frozen 116.8 61.5 78.2 108.2 152.0 152.2 Trout Fresh 37.9 24.9 33.1 63.9 76.6 91.8 Canned 1.5 0.7 0.3 0.3 0.2 0.3 Despite taking a substantial and inevitable hit in Salted 0.2 1.4 1.1 1.8 1.3 0.7 August following the Russian ban, dropping by 30% in Smoked 1.2 1.3 1.3 1.6 1.3 1.0 volume and 28% in value, the Norwegian trout industry Trout 58.1 61.9 73.1 78.7 66.3 39.0 appears to have coped remarkably well with the overnight Frozen 53.2 52.1 63.7 68.0 58.6 33.4 disappearance of by far their most important market. After a 20% increase in the trout MAB was approved in Fresh 2.9 6.4 5.9 4.2 4.2 4.1 August, NSC figures for September put total export value Canned 0.1 0.0 0.0 0.0 0.0 0.0 4% higher compared with September 2013, to NOK 207 Salted 0.4 1.7 1.6 4.3 1.4 0.6 Smoked 1.5 1.6 1.8 2.2 2.1 0.9 Total 215.7 151.6 187.1 254.5 297.6 285.0 Source: Boletín de Exportaciones del IFOP Exports (quantity) Exports (value) Salmon and Trout: Chile Salmon and Trout: Chile Jan-Jun 2009 2010 2011 2012 2013 2014 Jan-Jun (1 000 tonnes) 2009 2010 2011 2012 2013 2014 Japan 94.0 71.8 87.8 120.2 98.1 77.8 (million USD) USA 42.0 23.1 29.2 49.7 64.8 71.9 Japan 471.0 429.5 599.2 776.4 437.9 595.0 EU 15.0 4.2 4.2 7.1 18.4 16.6 USA 316.0 218.2 328.1 409.8 541.4 754.1 Latin America 29.0 26.5 22.9 38.9 48.5 56.8 EU 134.0 32.0 41.3 47.9 110.3 135.4 Others 36.0 26.0 39.9 36.6 67.9 61.9 Latin America 87.0 166.7 177.8 214.4 286.3 413.5 Others 137.0 140.2 257.9 194.5 312.5 415.9 Total 216.0 151.6 184.0 252.6 297.6 285.1 Source: IFOP Total 1146.0 986.6 1404.2 1643.0 1688.4 2313.9 Source: Boletín de Exportaciones del IFOP Exports (unit value) Exports (value) Salmon and Trout: Chile Salmon and Trout: Chile Jan-Jun Jan-Jun 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 (in USD/kg) (million USD) Salmon 5.22 6.33 7.54 6.26 5.59 7.85 Salmon 823.0 567.7 859.6 1100.2 1293.9 1931.4 Frozen 4.78 5.52 6.55 5.91 4.70 7.38 Frozen 557.9 339.2 512.5 640.5 714.0 1123.3 Fresh 6.29 7.98 9.56 6.57 7.24 8.51 Fresh 238.4 198.4 316.3 419.9 554.6 781.7 Canned 6.54 7.31 10.54 13.33 9.48 9.43 Canned 9.9 5.3 3.3 3.8 1.7 3.0 Salted 5.22 6.01 6.75 6.67 3.31 7.34 Salted 1.8 8.2 7.4 12.0 4.4 5.3 Smoked 12.52 13.23 15.73 15.00 14.76 17.46 Smoked 15.0 16.6 20.1 24.0 19.2 18.1 Trout 5.56 6.77 7.91 6.90 5.95 9.82 Trout 323.4 418.9 578.2 542.8 394.5 382.4 Frozen 5.32 6.50 7.67 6.74 5.52 9.41 Frozen 283.2 338.5 489.1 458.4 323.8 313.9 Fresh 6.81 7.63 8.72 8.33 7.85 11.46 Fresh 20.1 48.9 51.8 34.9 32.8 47.0 Canned 6.96 8.66 10.74 0.00 0.00 0.00 Canned 0.5 0.4 0.1 0.0 0.0 0.0 Salted 5.52 6.15 6.82 3.72 5.60 6.52 Salted 2.3 10.7 10.9 16.3 7.6 3.7 Smoked 11.60 12.40 14.30 15.00 14.13 18.93 Smoked 17.3 20.4 26.2 33.2 30.3 17.9 Average 5.31 6.51 7.68 6.46 5.67 8.12 Total 1146.4 986.6 1437.8 1643.0 1688.4 2313.8 Source: Boletín de Exportaciones del IFOP Source: Boletín de Exportaciones del IFOP

40 Globefish Highlights October 2014 SALMON billion. It is the Eastern European markets of Belarus (now Exports the number one market for Norwegian trout), Poland and Ukraine that are absorbing the surplus volumes, and it is Salmon: UK (by product and country) likely that at least a proportion of this fish is making its Jan-Jun way into Russia. 2009 2010 2011 2012 2013 2014 (1 000 tonnes) Chile FRESH WHOLE USA 9.3 12.5 16.8 16.5 17.4 22.9 According to the report of the Undersecretary France 7.2 11.1 7.0 8.1 7.0 11.4 of Fisheries and Aquaculture, in the first half of 2014, harvests of Atlantic salmon were up by 12% compared with China 0.0 0.2 2.0 2.8 4.1 7.0 the same period last year. Coho harvests, on the other Ireland 1.6 1.0 1.5 1.8 1.9 2.6 hand, were down 31.1%, while trout harvests were down Poland 0.2 1.0 2.7 3.7 1.9 1.1 18.1%. In terms of trade, salmonids exports (excluding Germany 0.8 0.8 0.8 0.4 0.3 0.6 fishoil and meal) during the first six months of the year Others 2.4 2.8 2.5 4.5 6.5 5.8 were down slightly by volume (-4.2%) but demonstrated a Total 21.5 29.4 33.3 37.8 39.1 51.4 37% increase in value in comparison with the same period in 2013. FROZEN WHOLE France 0.4 0.9 1.5 0.7 0.5 0.8 IFOP reports that Atlantic salmon was the most Russian Fed. 0.3 1.6 0.7 1.7 0.4 0.5 exported species throughout the first six months of the Others 1.9 0.8 1.5 1.7 2.1 2.5 year, with a 21.5% increase registered, while a significant Total 2.6 3.3 3.7 4.1 3.0 3.8 raise of 52% is noted in the exported value. However, by CANNED the end of September, a downward trend was observed Ireland 0.5 0.5 0.5 0.4 0.3 0.3 in prices of Atlantic salmon in the US market, due to an adequate supply from Chile for the current demand. Coho Others 0.2 0.2 0.1 0.4 0.5 0.4 salmon was the second species in importance, though Total 0.7 0.7 0.6 0.8 0.8 0.7 exports were down 21% in the first half of 2014 compared Gr. Total 24.8 33.4 37.6 42.7 42.9 55.9 with 2013. Others 0.7 0.5 0.8 0.7 0.6 0.8 Total 1.0 1.4 1.8 2.0 1.4 1.9 Chilean salmon farmers estimate that they could OTHER SALMON triple their exports to the Russian Federation due to the seafood import ban. It is estimated that Chilean exports Total 1.4 2.1 2.2 1.8 1.6 1.5 to the Russian Federation could grow from 2 500-3 000 Gr. Total 13.5 18.7 23.1 25.2 23.0 27.5 tonnes a month to 7 000-8 000 tonnes. However, instead Source: Her Majesty's Revenue & Customs of the fresh salmon that Norway was supplying the Russian Federation, Chilean exports would be dominated by frozen salmon. imports from the USA have risen significantly in the first Despite these estimations, the Chilean industry still seven months of 2014, although prices have fallen as has issues to face. Though sanitary concerns seem to be Alaskan exporters seek to clear inventories left over from under control, the industry is continuing its process of last year. consolidation, reflected by a series of acquisitions and fusions, especially among foreign investors. USA

UK Chile continues as the main salmon supplier to the USA with import volumes during the first half of 2014 Minimum exposure to the Russian market has seen increasing by 17% and value by 39% compared with the Scottish salmon industry’s upward growth trajectory the same period in 2013. Canada was the second most continue uninterrupted so far in 2014. The USA, France and important supplier, though volumes dropped by 40%. China are now the top three markets for UK exporters, and all three have absorbed greater volumes at higher prices In the wild salmon market, catches in Alaska have so far this year (data available up to July). UK suppliers exceeded forecasts, particularly for sockeye, which should have also been focusing on developing Asian markets, and eventually exert some pressure on prices. For pink salmon, are hoping to capitalize on the growing popularity of sushi suppliers are actively working to shift an oversupply from in markets closer to home. the record catches last year by increasing canned exports to the UK and frozen raw material to Chinese processors. The UK’s domestic market is also performing well, For chum, the market is a difficult one for buyers, as and retail sales are up so far this year. Canned pink salmon catches dropped by 50% this year.

Globefish Highlights October 2014 41 SALMON

Imports past two months. According to the X5 Retail Group, the prices for salmon and trout products from suppliers went Salmon: France up 10-15% in August, with a further 20% increase assumed Jan-Jun for the September-October period. Popularity of salmon in 2009 2010 2011 2012 2013 2014 the hotel, restaurant and catering sector, especially sushi, (1 000 tonnes) has declined due to the high prices. Fresh whole 45.5 50.0 46.4 54.8 49.2 45.2 Japan Norway 31.6 36.4 32.8 39.0 36.3 28.6 UK 7.7 8.5 8.8 9.5 8.4 11.6 Chilean exporters, the primary suppliers to the Frozen Pac 1.4 1.5 1.1 1.2 0.9 1.0 Japanese market, are benefiting from the improved price USA 1.1 1.3 1.1 1.1 0.7 0.9 situation resulting from reduced Coho production volumes. Frozen Atl 1.0 2.0 4.3 0.1 0.1 0.1 Another significant trend is the shifting preferences of Smoked 2.5 2.9 3.2 3.9 3.9 3.2 Japanese importers towards frozen fillets rather than the Poland 1.6 2.1 2.4 3.1 3.1 2.2 traditional headed and gutted Coho. Import volumes of frozen fillets almost doubled in the first seven months UK 0.3 0.3 0.3 0.2 0.3 0.3 of the year compared with 2013, while prices followed Fresh fillets 4.5 5.4 5.5 8.0 9.5 8.3 a distinct upward trend, pointing to strong underlying Norway 4.0 4.8 5.1 7.2 8.2 7.0 demand. Frozen fillets 10.5 9.9 10.3 8.9 11.1 11.3 Chile 4.9 2.4 2.0 2.7 4.4 3.4 France China 2.5 3.7 4.5 3.0 2.4 2.8 French buyers’ aversion to Norwegian prices is clearly Grand Total 66.8 73.4 72.1 78.1 76.1 70.1 evident in 2014, with import volumes of fresh whole Source: Direction Nationale des Statistiques du Commerce Norwegian Atlantics falling by some 22% in response to a Extérieur – DNSCE 7% increase in price. The shortfall in supply is currently being made up primarily by cheaper UK salmon. Demand for frozen fillets appears to be growing in France also, although Chilean suppliers are facing stiff competition in this segment from China. Markets Germany Of the world’s major salmon markets, it is the USA that Germany is another major market where importer is currently looking more promising for suppliers. Despite preferences appear to be shifting. Germany traditionally the high price levels, the economic situation is generally imports large volumes of smoked Norwegian salmon via better than in the EU and Japan, meaning that the average Polish smokehouses, but recent high prices are evidently consumer has more to spend on premium proteins such as beginning to have a dampening effect on demand. Likely salmon. Recent growth in the USA has been impressive, and related to this trend is the growth in fresh whole salmon consumption levels are still well below saturation point, particularly for smoked product. The EU is also looking more positive as the economic recovery puts more money in consumer pockets. Meanwhile, demand continues to grow in emerging markets, and the spectacular increases in Chinese and Brazilian import volumes are deserving of Imports particular attention. Salmon: Germany (by product) Jan-Jun The Russian Federation 2009 2010 2011 2012 2013 2014 (1 000 tonnes) The recent food embargo from some western Fresh salmon 24.3 23.2 24.3 21.4 20.3 29.9 countries in the Russian Federation, which was introduced in August 2014, has inevitably shifted suppliers, logistics Frozen salmon 2.3 2.7 2.3 1.6 2.6 3.3 and prices. Imports of Norwegian Atlantic salmon have Smoked salmon 15.5 15.3 17.7 15.9 18.3 15.6 been replaced by imports of Atlantic salmon from the Faroe Fresh fillets 3.8 4.1 3.5 3.6 4.5 3.9 Islands and Chile, although some Norwegian salmon was Frozen fillets 16.3 16.7 16.1 12.9 15.6 17.7 distributed to the Russian market through Belarus post- Salted salmon 0.1 1.1 2.2 3.0 4.1 0.7 processing. In August 2014, exports of Norwegian salmon Total 62.6 62.6 65.6 58.5 65.6 71.1 to the Russian Federation declined by 82% compared with July. With a more restricted supply, retail prices for Source: Germany Customs salmon products domestically have been booming in the

42 Globefish Highlights October 2014 SALMON

Imports Imports Salmon: Germany (by origin) Salmon: USA Jan-Jun Jan-Jun 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 (1 000 tonnes) (1 000 tonnes) Norway 24.4 27.5 27.5 24.2 23.0 25.2 Fresh fillets Poland 13.9 13.4 14.1 16.0 20.7 14.0 Chile 26.7 10.5 17.8 29.5 42.5 48.3 Denmark 4.6 4.4 4.7 4.3 5.0 11.4 Norway 7.7 13.4 5.3 2.0 2.3 5.7 China 6.4 8.5 8.5 6.9 5.2 7.4 Canada 2.1 3.9 3.0 1.8 3.2 2.0 Lithuania 1.1 1.6 2.9 2.6 2.0 3.0 Other 3.7 4.0 6.3 5.1 5.9 7.7 Sweden 2.6 1.4 1.9 1.2 1.5 1.3 Total fresh Others 9.6 5.8 6.0 3.3 8.2 8.8 fillets 40.1 31.8 32.4 38.4 53.9 63.7 Total 62.6 62.6 65.6 58.5 65.6 71.1 Frozen fillets 26.8 28.6 30.4 28.0 34.2 38.4 Source: Germany Customs Smoked 1.8 2.0 1.9 2.6 2.5 2.2 Salted 0.0 0.0 0.0 0.0 0.0 0.0 All salmon 123.9 116.4 112.6 137.1 149.1 154.9 Imports Source: NMFS Salmon: Japan Jan-Jun 2009 2010 2011 2012 2013 2014 (1 000 tonnes) Outlook Fresh * Atlantic 10.3 10.1 10.1 14.1 11.1 9.5 Global salmon supply growth in 2014 is expected to Norway 8.9 8.7 8.5 13.0 9.5 8.6 be above the recent average at around 8%, but this should be seen as only temporary relief from the now prevailing UK 0.2 0.2 0.3 0.3 0.3 0.2 norm of low supply, growing demand and high prices. For Australia 0.5 0.6 0.8 0.6 0.5 0.2 2015 to 2017, industry growth forecasts range from 3 to Pacific 0.3 0.4 0.4 0.3 0.4 0.2 5% annually, a rate that will undoubtedly be outpaced by Total fresh 10.6 10.5 10.5 14.4 11.5 9.7 the increase in global demand for salmon, with continuing Frozen* high prices the likely consequence. Regulatory limits Atlantic 4.0 0.5 1.0 1.1 0.4 0.8 in Norway and biological constraints in Chile mean it is Norway 0.2 0.2 0.6 0.4 0.2 0.1 difficult to see where future growth is going to come from, at least while terrestrial farming remains too expensive to Chile 3.5 0.1 0.1 0.6 0.1 0.5 be viable. Denmark 0.2 0.2 0.3 0.1 0.1 0.1 Pacific 58.8 59.8 74.9 91.1 88.9 61.1 These limits on supply expansion mean that revenues Canada 0.1 0.3 1.0 0.3 0.6 0.1 cannot simply be reinvested in maximizing production. USA 3.1 2.9 3.2 2.1 0.9 1.0 Instead, the salmon industry now has the opportunity New Zealand 1.3 1.2 0.7 0.3 1.5 1.4 to lead the rapidly growing global aquaculture sector in terms of sustainability, technological innovation and Chile 52.6 53.6 67.5 85.6 78.8 55.3 business development. In the latter respect, there is still Russian Fed. 1.7 1.7 2.5 2.8 7.2 4.6 considerable scope for further consolidation, particularly Total frozen 62.8 60.3 75.9 92.2 89.3 61.9 in Chile, and vertical integration of intermediaries in the Grand Total 73.4 70.8 86.4 106.6 100.8 71.6 supply chain. Source: Japan Customs * mainly Atlantic **mainly Pacific In the shorter term, the full impact of the Russian ban is still obscured by a number of uncertainties. The increase in the Norwegian MAB may have reduced downward price pressure for the time being, but the additional harvest imports into Germany in 2014, suggesting that smoking or volumes will have to hit the markets eventually, likely other value addition is now increasingly taking place post- in early 2015. Whether this will have a significant price import. Similarly to France, there has been a revival of effect is difficult to say, given the projected decrease in trade in cheap frozen fillets from China this year after a supply growth next year. For the remainder of 2014, the lull in 2013. current lull in prices should soon be reversed by seasonal demand in the fourth quarter.

Globefish Highlights October 2014 43 SMALL PELAGICS

TAC for mackerel, herring, blue whiting and capelin all cut

Based on scientific advice, ICES has recommended significant cuts in the TACs for mackerel, herring, blue whiting and capelin. At the same time, the organization claims that several species, such as mackerel, hake, and monkfish have recovered. The situation for herring, however, is not so bright.

The Barents Sea survey, undertaken by Norway’s Institute of Marine Research (IMR), showed that while some stocks like cod and mackerel are strong, the situation for herring and capelin gives cause for concern. Herring stocks have been greatly reduced (perhaps as a result of heavy cod stocks feeding on herring), and researchers found reduced stocks of adult capelin as well. ICES has recommended reductions in the TAC for Norwegian spring spawning herring, and it is expected that the joint Norwegian- Russian Fisheries Commission will set a lower TAC for capelin next year as well.

Imports Mackerel Frozen Mackerel: Germany Supplies Jan-Jun 2009 2010 2011 2012 2013 2014 According to Undercurrent News, the Atlantic (1 000 tonnes) mackerel TAC was reduced from 927 000-1.011 million UK 0.8 1.1 3.6 5.7 5.4 5.0 tonnes to 831 000-906 000 tonnes, a reduction of 100 000 Ireland 2.9 3.1 2.8 2.2 2.7 2.2 tonnes. Though survey results from this summer found Netherlands 2.0 2.5 3.1 3.0 1.9 2.0 Poland 1.7 1.4 1.8 0.2 0.6 0.8 Denmark 2.4 1.7 1.9 0.8 0.6 0.3 Exports Others 1.0 1.9 2.5 2.0 1.5 1.5 Frozen Mackerel: Norway Total 10.8 11.7 15.7 13.9 12.7 11.8 Jan-Jun Total 5.9 6.4 7.5 8.5 7.9 6.1 2009 2010 2011 2012 2013 2014 Source: Germany customs (1 000 tonnes) China 4.9 6.6 9.4 15.0 9.8 13.2 Nigeria 0.2 0.3 2.9 3.9 1.1 11.1 Nethrlands 0.3 0.3 1.7 4.2 1.4 7.2 that the total mackerel biomass has increased slightly to Japan 5.8 3.2 2.6 9.5 6.7 5.4 about 9 million tonnes, about two thirds of the stocks Turkey 5.7 8.5 7.6 8.7 4.9 5.4 were found to be less than six years old, which that is Russian Fed. 10.9 9.1 10.7 12.7 8.1 5.0 why ICES recommended the TAC cut. Lithuania 0.7 0.2 1.3 3.6 3.4 4.1 Poland 2.8 3.6 3.8 2.7 2.0 3.8 The researchers noticed that due to higher surface temperatures in the ocean attributed to global warming, Rep. of Korea 4.7 3.0 6.4 1.9 2.3 2.7 mackerel had moved further north and west than before. Ukraine 3.8 3.1 4.3 3.7 5.6 1.8 This has, in turn, pushed the herring even further Others 8.1 4.7 7.4 11.2 13.8 11.0 northwest. Total 47.9 42.6 58.1 77.1 59.1 70.7 Others 6.1 3.7 5.5 7.6 9.4 4.2 By mid-September, Greenland had caught over 77 Total 36.2 38.0 48.1 57.3 46.7 52.4 000 tonnes of mackerel out of a total quota of 100 000 Nigeria 0.8 0.3 24.9 3.0 7.5 1.1 tonnes. Fishing will continue until the quota is filled. Iceland, however, is ending its mackerel season, having Belarus 1.7 1.3 2.5 1.3 1.2 1.1 caught about 134 000 tonnes out of a total quota of 161 Others 4.3 4.8 13.6 7.2 11.6 11.3 000 tonnes. The Faroe Islands also have considerable Total 52.0 78.5 176.3 128.1 115.7 97.0 quantities left of their quota: 65 905 tonnes have been Source: Statistics Norway landed out of a quota of 156 240 tonnes. Norway has

44 Globefish Highlights October 2014 SMALL PELAGICS landed 52 000 tonnes of its 227 000 tonne quota. if possible. Nigeria is seen as a potential market for larger amounts of Norwegian mackerel in the longer When the Norwegian mackerel season kicked off, term, but this market presents several challenges, such there was concern that the size of the fish was very small. as import restrictions recently introduced under the new As a consequence of the small sizes initially caught, there Agriculture Minister. was also worries that prices might come under pressure, and that the smaller fish would be diverted to markets In Japan, demand is strong, with the market that are less size and quality conscious, such as Egypt, importing about 15 000 to 20 000 tonnes by the end Nigeria, and Turkey. of September. Japan has a preference for Norwegian mackerel of good quality. Nigeria, on the other hand, also Trade imports large quantities of mackerel, but will settle for smaller sizes and lower quality. The Russian import ban on seafood from some western countries has led to a shortage of mackerel and Prices herring on the Russian market. While the authorities claim that domestic production can replace imports, Frozen mackerel prices took a deep dive during July traders active in this market say this is not the case due and August. Norwegian export prices for frozen mackerel to difficult distribution logistics. It was estimated that the >600 g fell from NOK 35.83 per kg (fob Norway) in May to Russian Federation had lost access to about half a million just NOK 13.97 per kg in August. Prices for smaller sizes tonnes of seafood, which has until now been imported. (<600 g) also fell, but not so dramatically, from NOK 12.76 per kg in May to NOK 9.87 per kg in August. Information During the first half of 2014, frozen mackerel exports from European markets indicates that prices have been from Norway showed a significant increase. The total more level, such as in Italy. volume exported amounted to 70 700 tonnes, which was 19.6% more than compared with the same period in 2013. Herring The most important markets were China, accounting for 13 200 tonnes (or 18.7%), Nigeria (11 100 tonnes or 15.7%) Supplies and the Netherlands (7 200 tonnes or 10.2%). Norway registered declining exports to important markets like According to the Norwegian IMR, the Norwegian Japan (-19.4%) and the Russian Federation (-38.3%). spring spawning herring stocks have been deteriorating since 2004. The spawning biomass has fallen below 4 Frozen mackerel imports into Germany fell slightly million tonnes, and if it falls as low as 2.5 million tonnes, by 7% during the first half of 2014. The main suppliers researchers will advise a total stop to this fishery. Next were the UK, Ireland and the Netherlands. year, IMR estimates that the spawning stock will be at around 3.5 million tonnes. Mackerel supplies from Norway are particularly high this year, and the Russian Federation was expected to After the disastrous Exxon Valdez oil spill in 1989, take over 50 000 tonnes of this. Now Norway must look Alaska’s herring stocks suffered a serious set-back. for alternative markets, or an alternative way to sell However, the stock is now recovering, and some are mackerel to the Russian Federation via other countries hoping that the Alaska herring fishery may be re-opened in 2015 albeit with a small TAC.

Trade

Norwegian frozen mackerel export prices After the Russian Federation imposed the import ban on seafood from Norway, Norwegian exports to the Russian Federation fell by a massive 82% in August. Herring and trout were the most affected products. Herring exports dropped from 2 841 tonnes in July to just 1 130 tonnes in August (-60%). The export price to the Russian Federation went up by almost 5%, though. The Russian Federation is the single largest import market for Norwegian herring, and during the first 8 months of 2014, the Russian Federation had imported 31 725 tonnes of frozen whole herring from Norway, accounting for 31% of Norway’s total exports of frozen herring. Thus, Norwegian herring exporters are feeling the import ban particularly hard. Source: NSC/Central Bureau of Statistics, Norway

Globefish Highlights October 2014 45 SMALL PELAGICS

Currently, Russian fish processing companies are ready to substitute Norwegian Atlantic herring with Imports Atlantic herring from Iceland and the Faroe Islands, and Frozen Herring Fillets: Germany to a lesser extent with Pacific herring from the Russian Jan-Jun Far East. The Russian herring market is estimated at 430 2009 2010 2011 2012 2013 2014 000 tonnes annually, and 45% of market demand was previously covered by imported Atlantic herring. (1 000 tonnes) Norway 6.2 9.1 5.8 6.2 3.3 4.8 Overall supplies of herring have been a little tighter Denmark 1.2 0.9 0.9 2.8 2.6 2.4 this year, and this is reflected in international trade UK 0.0 0.0 0.1 3.3 1.1 1.1 figures. Norwegian exports of frozen whole herring Iceland 0.0 0.3 1.2 0.6 1.0 1.1 declined from 86 000 tonnes during the first half of 2013 Netherlands 0.6 0.6 0.7 0.6 0.6 0.7 to 81 500 tonnes during the same period in 2014 (-5.2%). Others 0.9 0.5 0.4 0.4 2.6 0.1 These trends were before the Russian import ban, so the Russian Federation was still by far the largest market, Total 8.9 11.4 9.1 13.9 11.2 10.2 taking 28 200 tonnes, or 35.3% of total Norwegian frozen Total 6.6 7.4 6.0 9.0 7.6 7.3 herring exports.. Other main markets like Ukraine and Source: Germany customs Lithuania took 13 500 and 13 300 tonnes, respectively. While Ukraine demonstrated a slight decline in imports

Exports Exports Dutch Frozen Herring Jan-Jun Frozen Whole Herring: Norway 2009 2010 2011 2012 2013 2014 Jan-Jun (1 000 tonnes) 2009 2010 2011 2012 2013 2014 Egypt 4.2 16.3 5.8 7.0 9.2 22.1 (1 000 tonnes) Nigeria 26.7 3.0 21.1 10.6 25.1 19.4 Russian Fed. 82.7 79.4 44.0 36.7 27.0 28.2 China 5.0 9.6 10.1 7.1 7.0 7.1 Ukraine 44.2 37.3 30.8 28.3 15.7 13.5 Germany 1.9 0.9 1.3 1.0 1.2 1.8 Lithuania 10.5 12.6 10.0 12.1 10.5 13.3 Japan 0.6 0.8 0.9 0.3 0.3 0.2 Netherlands 12.3 15.0 13.6 7.5 7.9 9.4 Others 5.3 5.0 3.1 3.9 6.8 9.0 Latvia 1.2 2.8 1.9 1.8 2.2 4.1 Total 43.7 35.6 42.3 29.9 49.6 59.6 Egypt 8.5 21.8 16.1 14.2 9.4 2.8 Others 1.8 1.5 1.6 3.5 4.1 0.0 Kazakhstan 5.0 6.1 4.4 1.6 1.1 1.8 Total 22.9 31.2 21.3 40.5 43.9 41.1 Germany 1.8 2.2 3.2 2.5 1.8 1.6 Source: Eurostat Poland 3.1 3.0 1.8 2.1 2.0 1.3 Nigeria 81.1 62.3 43.2 4.2 2.9 0.5 UK 2.8 5.7 1.6 0.4 0.2 0.2 Others 14.6 12.8 12.9 8.2 5.3 4.8 Total 267.8 261.0 183.5 119.6 86.0 81.5 Source: Statistics Norway German imports of frozen herring fillets fell slightly during the first half of the year, by -8.9%. Norway, the main supplier, strengthened its position on this market.

Japan is importing more fresh and frozen herring this year. Imports during the first six months of the year likely due to the war, there was an increase in shipments increased by 48.1% compared with the same time period to Lithuania. in 2013. The main supplier, the USA, strengthened its position considerably, while the Russian Federation lost Dutch exports of herring increased considerably market share. during the first six months of 2014. Total Dutch herring exports grew by +20.2%, with Egypt and Nigeria as the Prices main markets. Prices for herring have been on a declining trend for

46 Globefish Highlights October 2014 SMALL PELAGICS

In Peru, the first anchovy season of the year was Norwegian frozen herring export prices extended by ten days until 10 of August because of El Niño. By the end of July, about 65% of the total TAC of 2.53 million tonnes had been landed. The extension of the season was expected to bring the catch to 70-75% of the quota. Temperatures on the Peruvian coast have been higher than usual (due to El Niño), but since July they have started to return to normal.

The Spanish Ministry of Agriculture, Food and Environment closed the anchovy fishery in southern Galicia in August because the fleet had exceeded their 75 tonne quota by 500%. Not surprisingly, the Galician fishermen were unhappy about this closure. In the Gulf of Cadiz, the quota is much larger at 6 000 tonnes. Following Source: NSC/Central Bureau of Statistics, Norway this, in September, the sardine fishery in area VIIIc and area IX was closed as the quotas were filled. In response, the Association do Cerco Galicia of Galicia demands larger pelagic quotas for the second half of 2014.

Spain’s modest catches of sardines this season is Imports causing concern for the canning sector. Also, the fish are Fresh and Frozen Herring: Japan smaller, which affects the industry. The result is that the Jan-Jun canning industry in the region of the Bay of Biscaine is 2009 2010 2011 2012 2013 2014 facing issues in getting enough raw material for their (1 000 tonnes) operations. Representatives of the Canners Association of Cantabria claim that the resource is poorly managed, USA 13.7 15.2 16.9 11.7 11.3 18.7 and that this is part of the reason why the industry is now Russian Fed. 3.4 4.1 3.1 3.5 4.1 3.7 facing problems. Canada 0.0 0.0 0.0 0.1 1.2 2.7 Norway 2.6 2.7 2.6 1.6 1.9 1.9 In an effort to maintain supplies of sardines to Netherlands 0.6 0.6 0.2 0.4 0.3 0.3 Brazil, the Government reduced the import duty on Others 0.6 0.7 0.2 0.1 0.1 0.7 frozen sardines from 10% to 2% in August. The new tariff Total 20.9 23.3 23.0 17.4 18.9 28.0 Source: Japan Customs

Recent news: Thai Union takes over King Oscar some time, and this continued in the past quarter. Export prices for Norwegian whole frozen herring slid from NOK The Thai canned fish company Thai Un- 11.82 per kg in June to just NOK 6.36 per kg in August. ion has acquired 100% of the shares of one of This is a seasonal trend, though the longer-term trend is the best-known seafood brands in the world, still slightly downward. Export prices for frozen herring King Oscar sardines. Thai Union expects that fillets also declined, although not so dramatically, from the acquisition of the brand will enhance NOK 11.82 per kg in June to NOK 10.87 per kg in August. the company’s position on the market and help expand its turnover, which has been in- Anchovies and sardines creased to over USD 8 billion by 2020. Over the years, the King Oscar brand Supplies has expanded into new markets, introduced new product lines, and was eventually ac- In an effort to maintain sustainability in the quired by several different parent compa- artisanal anchovy fishery, Chilean authorities announced nies as the sardine canning industry evolved a ban on fishing sardine and anchovies from late July. in Norway. The ban will be in effect until 21 October, and was based on several scientific studies undertaken by the Fisheries Development Institute.

Globefish Highlights October 2014 47 SMALL PELAGICS

Imports Imports Canned sardine: Germany Canned sardines: France Jan-Jun Jan-Jun 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 (1 000 tonnes) (1 000 tonnes) Morocco 3.1 3.0 1.9 2.0 2.2 2.0 Morocco 5.9 4.8 3.8 4.6 6.6 5.2 Peru 0.2 0.4 0.3 0.9 0.5 0.5 Portugal 2.2 2.2 2.1 2.4 2.5 2.3 Netherlands 0.4 0.5 0.4 0.2 0.2 0.4 Spain 0.3 0.4 0.3 0.2 0.3 0.1 Others 0.2 0.3 0.4 0.2 0.2 0.2 Others 0.2 0.3 0.1 0.4 0.2 0.3 Total 3.9 4.2 3.0 3.3 3.1 3.1 Total 8.6 7.7 6.3 7.6 9.6 7.9 Source: Germany customs Source: Direction Nationale des Statistiques du Commerce Extérieur – DNSCE

Imports Canned sardine: UK applies to an import quota of 60 000 tonnes of frozen Jan-Jun sardines. 2009 2010 2011 2012 2013 2014 (1 000 tonnes) Canned sardines Morocco 2.3 2.3 1.2 1.6 2.1 2.7 Portuguese canned sardine exports grew in 2013. Portugal 2.0 2.7 2.5 2.6 2.2 1.8 Total canned fish exports from Portugal grew by 16%, Others 1.1 2.3 1.3 2.8 2.3 1.9 valued at about EUR 206 million in 2013, mainly driven Total 5.4 7.3 5.0 7.0 6.6 6.4 by sardine exports. Canned sardines accounted for about Source: Her Majesty’s Revenue & Customs one third of the total canned fish exports of 50 000 tonnes, which is 9.8% higher than in 2012. However, the value increased by 15.7%, as prices in the main markets increased.

Producers and exporters in Peru are now showing interest in developing the Portuguese market for its products. Peru participated at the recent Conxemar exhibition in Vigo, Spain in early October, and planned Imports to hold a business conference after Conxemar, where Canned sardine: USA Peruvian entrepreneurs would meet with 10 Portuguese Jan-Jun fishing companies. 2009 2010 2011 2012 2013 2014 Sardine prices have shown strength in the past few (1 000 tonnes) months, and prices for fresh whole sardines in Italy have Canada 2.9 3.1 3.0 2.0 1.6 2.5 increased significantly over the past quarter. Ecuador 1.7 1.6 1.1 2.2 2.1 2.3 Thailand 3.1 2.5 2.3 3.5 2.6 2.1 Outlook Morocco 1.9 1.9 1.7 1.7 2.2 2.0 Poland 0.7 1.9 2.9 2.0 2.9 1.9 Supplies of herring, capelin and blue whiting may China 0.2 0.7 0.8 1.5 0.7 1.3 become quite tight over the next six months, while supplies of mackerel will be slightly restricted as a result Philippines 0.9 0.8 1.3 1.0 0.8 1.1 of the reduced TAC, though this will improve again in Others 2.8 1.6 1.4 1.7 1.6 1.9 about a year’s time. For herring and capelin, on the other Total 14.2 14.1 14.5 15.6 14.5 15.1 hand, the outlook is bleaker and for a longer period. Source: NMFS Prices are on a slightly downward trend for mackerel and herring, while sardine prices are going up. If low supplies of herring continues for some time, prices will most likely come up.

48 Globefish Highlights October 2014 FISHMEAL AND FISH OIL

Increased demand and limited volume available keep fishmeal and fish oil prices up in the first half of 2014

While Peru’s total allowable catch (TAC) for anchovy for the 2014 winter was set at 2.53 million tonnes, 23% more compared with the same time period for 2013, the actual catch was lower than expected. Fortunately, the pressure on the prices from the short supply was offset partially by delayed buying decisions due to weather uncertainty indicated by abnormal sea temperatures. Nevertheless, fishmeal prices again showed a significant increase beginning in June when buyers realized that the TAC quota would not be met this season. Going forward, El Niño effects are less likely to hit the industry as se- verely as anticipated at the beginning of the year. Strong demand from aquaculture and animal farming will uphold the market in the long-term, while countries increasingly seek supply diversification. Production Fishmeal and Fish Oil production (2011) During the first half of 2014, total production from five of the major fishmeal producers registered at 1 107 Fishoil 000 tonnes, a slight increase compared with the same 16% time period in 2013 and 2012. Despite the early start, the anchovy catch in Peru was very low mainly due to the abnormally high sea temperatures forcing anchovy stocks to deeper and cooler waters or to the south where industrial catches were prohibited within a 10 mile zone. A short ban to suspend fishing operations for a few days due to high juvenile levels worsened the situation further. Fishmeal Even with an extension to 10 August, only 1.71 million 84% tonnes were caught, accounting for just 68% of the TAC. For fish oil, production was in a similar situation with only slightly higher volumes reported for the first half of the year when compared with the same time period in 2013. However, 2014 volumes remained lower than the average Production of years before 2013. The fish oil yield had been very low this season as the fish have had a low fat content. Fishmeal: 5 major producers Jan-Jun Exports 2009 2010 2011 2012 2013 2014 (1 000 tonnes) For fishmeal, although Peru doubled its export Peru/Chile 1324 1102 1334 851 672 667 volume in the first half of the year, it was still lower Denmark/ than what was exported for the same period in most of Norway 182 350 166 74 153 186 the years before 2013. China imported the majority of Iceland 70 156 81 130 93 107 fishmeal, taking almost 60% of Peruvian exports. Viet Total 1576 1608 1581 1054 918 1107 Nam became the fourth largest destination for Peruvian exports right after Japan, which is diversifying its fishmeal Source: IFFO * these figures refer only to IFFO member countries supply sources to include African countries in order to reduce the high cost triggered by yen’s depreciation. In Chile, the growing salmon and shrimp farming sector Production consumed a significant amount of fishmeal traditionally destined for export, and as a result, Chile exported less Fish oil: 5 major producers fishmeal during the first half of 2014 than compared with Jan-Jun the same time period last year. 2009 2010 2011 2012 2013 2014 (1 000 tonnes) In terms of fish oil, the USA exported 42 900 tonnes Peru/Chile 304 179 273 206 147 197 of fish oil in the first half of 2014, most of which originated Denmark/ from gulf menhaden. It is anticipated that the menhaden Norway 25 72 53 29 42 47 fishery will maintain its high level of fish oil supply and Iceland 20 22 35 44 27 16 export because of a positive stock assessment. Peru Total 349 274 361 278 216 289 almost tripled its fish oil export, reaching 84 900 tonnes. Source: IFFO * these figures refer only to IFFO member countries

Globefish Highlights October 2014 49 FISHMEAL AND FISH OIL

Exports Imports Fishmeal: Peru Fishmeal*: USA Jan-Jun Jan-Jun 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 (1 000 tonnes) (1 000 tonnes) China 529.1 305.1 453.1 426.1 165.7 316.8 Chile 3.4 7.8 5.7 7.6 7.0 15.7 Germany 73.6 51.9 47.5 90.5 12.5 64.5 Mexico 11.0 4.4 5.2 6.9 8.3 7.2 Japan 67.6 51.8 34.3 58.5 20.0 37.6 Canada 1.5 2.9 2.7 2.2 1.9 2.5 Viet Nam na na 25.2 39.9 4.2 30.0 Others 4.0 3.5 1.7 2.9 3.5 2.4 Taiwan PC 34.4 13.7 17.7 31.4 4.2 16.2 Total 20.0 18.6 15.3 19.6 20.7 27.8 UK na na 11.6 11.6 1.3 6.0 Source: NMFS * excluding solubles Others 207.7 109.1 70.8 7.9 33.1 63.4 Total 878.0 531.6 660.2 665.9 241.0 534.4 Source: Produce

Imports Fishmeal: UK Jan-Jun Exports 2009 2010 2011 2012 2013 2014 Fishmeal: Chile (1 000 tonnes) Peru 16.3 18.3 10.9 12.7 1.4 7.4 Jan-Jun Ireland 12.5 9.6 1.2 3.8 6.8 5.8 2009 2010 2011 2012 2013 2014 Germany 1.0 6.8 6.1 4.3 4.0 5.5 (1 000 tonnes) Denmark 7.0 15.9 9.9 1.1 4.4 2.6 China 235.0 94.3 63.1 70.2 75.8 49.9 Iceland 0.0 1.3 1.4 6.0 3.3 0.0 Republic of Korea 13.0 9.7 7.0 8.6 5.5 12.3 Norway 1.2 2.4 3.1 0.1 1.1 3.4 Japan 31.0 26.0 15.0 13.1 15.6 11.6 Others 6.9 3.9 4.0 5.5 4.5 6.7 Spain 13.0 14.2 9.3 8.8 6.5 10.7 Total 44.9 58.1 36.7 33.5 25.5 31.4 Italy 10.0 8.6 7.0 7.1 5.5 7.2 Source: Her Majesty’s Revenue & Customs Germany 22.0 3.7 9.0 10.3 0.5 3.0 Others 41.0 40.1 23.2 42.8 31.4 43.6 Total 378.0 196.6 133.7 161.0 140.8 138.5 Source: Produce Markets

Germany

Germany reported 100 000 tonnes of fishmeal imports in the first six months of 2014, which was Imports relatively stable. The majority was supplied by Peru at Fishmeal: Germany 61 700 tonnes. Both Morocco (-75%) and Iceland (-93%) significantly reduced their exports to Germany. Jan-Jun 2009 2010 2011 2012 2013 2014 (1 000 tonnes) USA and UK Peru 106.4 86.1 18.5 53.0 20.0 61.7 Denmark 4.6 6.3 10.2 2.7 14.0 11.2 The USA and the UK imported slightly more fishmeal Morocco 0.0 21.1 19.2 13.5 18.1 4.6 during the period. For the UK, the major origin was Peru France 2.0 1.5 1.6 2.5 8.6 1.7 while for the USA it was mainly supplied by Chile. Iceland 0.0 0.0 1.5 1.3 20.1 1.5 Prices Others 13.6 9.6 10.5 24.0 14.9 19.3 Total 126.6 124.6 61.5 97.0 95.7 100.0 Starting at the beginning of 2014, fishmeal prices Source: Germany Customs began to increase again, staying firm beginning in March/ April. The market stayed quiet as buyers were reluctant

50 Globefish Highlights October 2014 FISHMEAL AND FISH OIL

Exports Prices Fishmeal and Soymeal Fishoil: Peru

2500 Jan-Jun USD/tonne 2009 2010 2011 2012 2013 2014 * all origins, 64-65% cif Hamburg; 44% cif Rotterdam (1 000 tonnes) 2000 Belgium 34.0 21.9 14.5 25.4 6.4 23.3 1500 Denmark 25.0 7.6 21.2 45.5 10.3 22.8 Fishmeal* Chile 12.0 19.7 26.2 33.4 3.0 22.0 China 17.3 8.7 8.6 * 1.3 3.9 1000 Norway 10.4 7.8 3.0 13.6 1.2 3.8 Soymeal** 500 Canada 5.8 10.4 5.1 16.3 1.9 0.9 Australia 4.2 5.2 1.0 4.2 1.5 0.4 0 Others 23.6 11.9 15.7 7.3 4.2 7.7 Sep-02Sep-03Sep-04Sep-05Sep-06Sep-07Sep-08Sep-09Sep-10Sep-11Sep-12Sep-13Sep-14 Total 132.3 93.3 95.4 145.6 29.9 84.9 Source: Oil World, GLOBEFISH Source: Produce * included under "others"

although prices were still lower than what was registered during the same period of 2013. Exports Soymeal prices were relatively stable during the Fishoil: Chile period. It is expected that its substitution role for Jan-Jun fishmeal will continue to strengthen. 2009 2010 2011 2012 2013 2014 (1 000 tonnes) Outlook Denmark 0.0 4.0 0.0 0.0 0.0 13.7 Belgium na na 0.0 5.4 1.4 1.5 In the long-term, growing demand from aquaculture and the terrestrial farming industry will continue to push Japan 4.0 3.5 3.3 5.1 3.9 1.4 up prices of both fishmeal and fish oil. In the near future, China 10.7 8.8 2.8 3.5 5.3 0.6 China will demand more super prime fishmeal for their Norway 1.0 2.4 0.0 1.4 2.3 0.0 pig farms before the Chinese New Year. Japan and the Others 40.1 7.8 18.7 7.1 25.9 25.2 Republic of Korea will also be seeking increased supplies in Total 55.8 26.5 24.7 22.5 38.7 42.4 order to feed eels and other high value fish. Increasingly, Source: Boletín de Exportaciones del IFOP countries will begin to diversify their supplies from non- traditional suppliers. Production from by-products of processing will also definitely grow.

Exports In terms of Peruvian stocks, Peru’s El Niño institute Fish oil: USA ENFEN said the El Niño phenomenon affecting catches Jan-Jun should lessen in August with little risk of returning by the end of 2014. With the low catches of anchovy in 2009 2010 2011 2012 2013 2014 the past season, it was expected that a second season’s (1 000 tonnes) quota would be around 2 million tonnes. However, Menhaden 10.8 27.8 7.8 6.1 7.1 34.1 recently Peru’s marine institute IMARPE advised not to Other 11.3 6.8 10.5 9.7 8.7 8.8 open the country’s second anchovy fishing season, at Total 22.1 34.6 18.3 15.8 15.8 42.9 least until another survey is carried out in November. This Source: NMFS advisement is a result of survey findings that estimated very limited anchovy biomass at just 1.45 million tonnes in the north-center region of Peru. to confirm orders while weather uncertainty still lingered. In addition, according to Undercurrent News, China More and more studies demonstrate that the health had preemptively built up considerable fishmeal stock benefits of farmed salmon are hardly reduced by cutting of about 253 000 tonnes. From June onwards, fishmeal the amount of fishmeal in the salmon diet. These findings prices strengthened quickly as it became clear that the may encourage farmers to apply more substitutes such quota could not be achieved during the season. Indeed in as rapeseed oil and soymeal in the future in order to September, the super prime fishmeal reached USD 1 900 respond to the rising prices of fishmeal and fish oil while per tonne FOB Peru. Fish oil prices continued to increase not compromising the health benefits of their products.

Globefish Highlights October 2014 51 BIVALVES

First half of 2014 shows a vibrant oyster market

The first half of 2014 was characterized by a dynamic market for oysters andthe consolidation of markets for mussels and scallops. During this period, international trade was impacted by two main factors: water quality issues with the possible presence of virus and the appearance of trade obstacles, such as the embargo on European exports of food products to Russia. On a positive front, the free trade agreement between Canada and Europe must be noted.

Mussels Imports/Exports World Mussel: World Jan-Jun During the first half of 2014, world exports of mussels 2013 2014 increased by 9 000 tonnes or 6% overall compared with (1 000 tonnes) the same time period in 2013. Exports from Chile, the IMPORTS number one global exporter, registered a pale increase France 27.9 29.1 of 2%, while Spain’s exports rose much more significantly, by 30%. Denmark, another large scale European exporter, Italy 19.7 20.6 recorded a dramatic 57% increase. Sales of green-lipped USA 16.7 17.8 mussels (Perna canaliculus) from New Zealand expanded Spain 13.6 10.9 by 20% to place this southern hemispheric country as the Netherlands 11.1 9.4 world’s third largest mussels exporter, exporting a total Germany 7.0 8.1 of 19 400 tonnes, behind Chile (37 700 tonnes) and Spain Belgium 6.5 6.5 (21 700 tonnes). UK 2.8 3.1 EU Thailand 2.0 2.8 Republic of Korea 2.5 2.4

France consolidated its position as the number Total 131.7* 130.3* one EU importer, with a 4% increase in imports to reach EXPORTS 29 100 tonnes to take 31% of the market share. French sources of supplies are diversified, with Spain, Chile, the Chile 36.8 37.7 Netherlands and Italy as the top suppliers in that order. Spain 16.6 21.7 Spain registered a 41% increase in sales to France, and New Zealand 16.1 19.4 Chile a 34% increase during the time period. During the Denmark 9.5 14.9 summer of 2014, mussel growers in France along the west Netherlands 14.5 13.7 coast suffered severe losses, with the bacterium Vibrio Italy 7.1 8.2 splendidens suspected as the main culprit, although Canada 8.0 7.6 poor water quality and the presence of pesticides is also blamed. The next GLOBEFISH Highlights issue will report Greece 5.6 5.5 if the drop in landings stimulates imports. Ireland 6.4 4.8 China 4.3 4.1 In Italy, the second largest market for mussels, Total 139.8 148.7* imports increased by 5% in the first half of 2014 compared Ireland 4.7 3.6 with the same time period for 2013. Total 74.0 72,7* In Spain, mussel production reached 231 754 tonnes Source: GTIS at EUR 108 million ex-farm value during 2012, when the * estimates latest global data is available (Source: La Acuicultura i Espana, Apromar 2014). Galicia is the dominant production region, supplying 98% of all production. Between 2009 Chile and 2013, a total of EUR 25.8 million was granted in aid for productive investment in aquaculture, with EUR 18.7 Over the first 4 months of the year, the main export million of this total destined to the holders of the mussel companies of mussels (Mytilus chilensis) in Chile were farming facilities (Source fis.com). Blueshell and Saint Andrews Smoky Delicacies, followed

52 Globefish Highlights October 2014 BIVALVES

Imports Imports Mussels: EU-27 Mussels: France Jan-Mar Jan-Jun 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 (1 000 tonnes) (1 000 tonnes) France 14.4 18.5 16.9 14.9 13.8 13.8 Spain 6.9 7.1 6.4 7.1 4.9 6.9 Italy 10.0 11.5 10.5 10.2 12.1 11.1 Chile 4.6 6.1 6.2 5.7 4.1 5.5 Belgium 4.7 4.1 4.7 4.4 4.4 3.7 Netherlands 6.8 7.2 7.6 6.9 6.3 5.2 Netherlands 4.7 7.2 6.3 9.1 8.5 4.8 Italy 2.2 4.8 4.2 3.3 4.9 4.8 Spain 2.5 4.5 4.8 3.5 5.0 2.8 Denmark 0.8 1.2 0.4 0.6 1.2 2.9 Germany 4.0 2.9 4.5 7.5 3.0 4.6 UK 1.9 1.9 1.6 2.0 2.8 1.2 UK 1.2 1.1 1.6 1.4 1.3 1.3 Ireland 3.5 6.8 4.6 3.0 1.6 1.0 Portugal 0.6 0.7 0.6 0.5 0.8 0.7 Greece 1.8 0.8 0.8 1.2 1.3 0.5 Others 3.8 2.3 2.3 2.1 2.0 2.3 Others 1.1 1.2 0.9 0.9 0.8 1.1 Grand Total 45.9 52.8 52.2 53.6 50.9 45.1 Total 29.6 37.1 32.7 30.7 27.9 29.1 Total Intra 36.6 41.5 39.4 45.4 39.9 37.0 Source: Direction Nationale des Statistiques du Commerce Total Extra 9.3 11.3 12.8 8.2 11.0 8.1 Extérieur – DNSCE Source: EUROSTAT and Customs

Imports Mussels: Italy Market focus: France Jan-Jun France is the world’s largest market for 2009 2010 2011 2012 2013 2014 mussels, with over 180 000 tonnes consumed in (1 000 tonnes) all processed forms every year, an average of 3 Spain 8.7 8.4 7.0 9.7 9.9 9.9 kg per annum per inhabitant. According to the Chile 2.3 4.4 6.3 2.8 4.4 4.8 latest mussel study commissioned by FranceA- Greece 4.5 1.6 2.6 3.3 3.8 4.4 griMer, the public body in charge of seafood pro- Ireland 0.6 0.8 0.5 0.2 0.6 0.3 motion, the preferred format is live mussel, with New Zealand 0.4 0.2 0.4 0.1 0.2 0.3 about 100 000 tonnes consumed per annum, of which roughly 40% are imported (source: FAM, Germany 0.4 0.3 0.3 0.2 0.2 0.3 L’image de la moule). Mussels enjoy a very posi- Turkey 1.1 1.2 1.0 0.0 0.0 0.0 tive consumer image, with eight out of ten con- Others 0.5 0.3 0.2 0.2 0.5 0.6 sumers reporting they consume mussels at least Total 18.4 17.3 18.5 16.6 19.6 20.6 once a year and three out of ten at least six Source: Eurostat times a year. For six consumers out of ten, the favourite dish is the famous “moules frites”, or mussels with French fries. French consumers have a rather good knowledge of the production mode: eight out of ten know that they are domi- by Sud Maris Chile and Sociedad Comercial Ria Austral. nantly farmed, but few can describe the farm- According to Infotrade and fis.com, the harvests of ing techniques. The study also revealed that in mussels accumulated through July totalled 197 380 the past, mussel consumption was concentrated tonnes, 9.7% less than in the same period in 2013. 100% in the summer and autumn seasons, from July of harvests came from region 10. to December, to coincide with the local production. Thanks to the development of logistics and Canada preservation techniques, live mussels are now supplied all year long to restaurants, super- Cape Breton Bivalve Inc., based in St. Anns Harbour, markets and traditional fishmongers. In 2013, Nova Scotia, will establish a new mussel processing line. France imported about 2 000 to 4 000 tonnes per The project will expand and upgrade the former 5M month of live mussels from European countries AquaFarms in St Anns Harbour. The company intends to (The Netherlands, Spain, UK, Denmark, Italy, export fresh mussels locally and cooked frozen products Ireland, Greece). to Europe, China and Japan.

Globefish Highlights October 2014 53 BIVALVES

Imports Imports/Exports Mussels: Spain Oyster: World Jan-Jun Jan-Jun 2009 2010 2011 2012 2013 2014 2013 2014 (1 000 tonnes) (1 000 tonnes) Chile 5.1 6.9 10.1 6.5 9.8 7.5 IMPORTS New Zealand 1.1 1.5 1.7 0.9 0.7 0.7 Japan 4.9 5.0 France 0.6 1.0 0.7 0.6 0.7 0.5 USA 4.4 4.5 Others 1.2 1.4 1.3 1.6 2.4 2.2 Hong Kong SAR 3.2 3.6 Total 8.0 10.8 13.8 9.6 13.6 10.9 Italy 2.0 2.2 Source: Agencia Tributaria France 1.7 2.2 Canada 1.3 1.4 Spain 0.6 1.2 Belgium 0.8 0.8 USA Singapore 0.8 0.7 China 0.6 0.7 According to Nielsen quoted in SeafoodSource, during the 52 weeks ending 9 August, 2014, 1.1% of US Taiwan PC 0.5 0.7 households purchased mussels, which is steady compared Total 24.0* 25.8* with the previous year. Mussel sales peaked during the EXPORTS week of Christmas, averaging sales of USD 39 per store. Republic of Korea 6.0 6.5 The second highest-selling period occurred during the China 4.3 3.9 week of New Year’s. France 3.4 3.6 Ireland 1.9 2.7 Oysters USA 1.9 2.1 World Canada 1.8 1.8 Malaysia 0.5 1.2 World imports of oysters during the first half of 2014 Japan 0.7 0.8 reached 25 800 tonnes, which is 1 800 tonnes more than Mexico 0.4 0.7 during the first half of 2013, a growth of 8%. Japan, the Netherlands 0.9 0.5 world’s number one importer, grew imports steadily by Total 24.4* 26.2* 2%. The USA, the second largest importer, grew imports by 3%. Source: GTIS * estimates The Republic of Korea is the world’s largest supplier of oysters with 6 500 tonnes sold in the period from January to June 2014, demonstrating an 8% increase compared with the same time period in 2013. Ireland, though a modest exporter in comparison, broke growth records by increasing their oyster exports by 42%, up to 2 700 tonnes. According to an aquaculture survey in 2013 Oyster - Crassostrea gigas, origin: France - Source Insee published by Bord Iascaigh Mhara (BIM), the oyster farming sector employed 1 100 persons, responsible for a total EUR/dozen Monthly average consumer production of 8 700 tonnes. Ireland’s oyster economy is prices in metropolitan France - Medium-caliber cupped oysters export oriented, with France as their top client and Hong 11.00 Kong SAR now second. 10.00 9.84 9.00 EU 8.00 7.00 6.00 France occupies a unique position in Europe’s 5.00 oyster business, being simultaneously both an important importing and exporting country. During the first half Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 May-09 May-10 May-11 May-12 May-13 May-14 of 2014, the country exported 7% more compared with Source: European Price Report the same period in the year before. This strong growth is likely not to be duplicated in the coming months as

54 Globefish Highlights October 2014 BIVALVES the European export embargo on agriculture products Imports/Exports are reported to have an impact on Breton oyster sales to Russia. Exports from producers such as Cadoret, Parc Scallop: World de St Kerber and Prat ar Coum, which use to sell flat and Jan-Jun cupped oysters to Russia, have been interrupted. 2013 2014 (1 000 tonnes) In 2012, Spain’s production of oysters (Ostrea edulis) IMPORTS and (Crassostrea gigas) reached 1 756 tonnes for an ex- China 20.1 22.5 farm value estimated at EUR 4.4 million. This is the lowest level the country has recorded in the past 30 years, other USA 12.9 16.3 than for 2002 quality (Source: La Acuicultura i Espana, France 8.6 8.9 Apromar). The factors for the decline in production Hong Kong 5.3 5.0 include the presence of parasite Bonamia as well as the Republic of Korea 4.3 4.2 alteration of water. Canada 2.8 3.0 Italy 3.2 2.8 USA Netherlands 1.6 2.7 Due to historically low production (see GH July 2014), Belgium 2.0 2.3 Louisiana is importing oysters from Gulf and East Coast Spain 3.4 2.1 states. In contrast, the oyster stocks in the Chesapeake Taiwan PC 3.0 2.0 Bay are poised for the highest harvest since 1987. Overall, Total 81.9* 82.6* oyster demand in the USA continues to grow, with oyster EXPORTS bars becoming a rising trend. The climbing demand, China 15.2 20.0 combined with the reduced local supply, has increased retail prices by 20% over last year’s season. Peru 4.5 6.3 USA 5.8 5.9 Scallops UK 5.8 5.7 Canada 3.1 4.3 World Argentina 3.3 2.9 Belgium 2.1 2.4 Global imports of scallops reached an estimated 82 Netherlands 0.9 2.3 600 tonnes from January to June 2014, demonstrating France 1.3 1.9 a stabilisation compared with the same period in 2013 (+0.9%). In this global picture, several countries have Hong Kong SAR 1.3 1.2 shown a dramatic change, such as the USA with a 26% Japan 2.3 1.0 increase and China with 12%. During the same period for Italy 1.4 0.9 exports, China also grew their exports by 32% compared Total 54.5 58.8* with the same period a year earlier. Source: GTIS * estimates France, the world’s largest importer of scallops, bought 8 900 tonnes in the first half of 2014. After 2013, this is the second lowest record in the past six years. Imports Peru remains the largest supplier with 3 200 tonnes of Scallops: France Argopecten purpuratus and an improved market share Jan-Jun from 23% in the first half of 2013 to 36% during the same 2009 2010 2011 2012 2013 2014 time period in 2014. (1 000 tonnes) Peru 2.1 3.4 3.7 1.8 2.0 3.2 British Channel UK 2.4 1.7 1.9 1.8 2.2 2.0 After years of disagreement on scallops (Pecten Argentina 2.7 2.7 2.6 2.3 1.3 1.1 maximus) fishery management in the British Channel, USA 2.6 1.5 1.7 1.2 1.5 0.7 which separates France from England, French and Canada 0.6 0.7 0.6 0.4 0.5 0.5 English fishermen agreed to meet to set up a regional Viet Nam 0.2 0.6 0.3 0.4 0.3 0.2 management plan. The meeting, as part of the European Chile 1.2 0.7 0.3 0.3 0.0 0.0 four year project GAP 2 founded by the European Commission, was held in England in April 2014 and the Others 0.6 1.3 1.3 1.4 0.8 1.2 final report was published in September 2014. The report Total 12.4 12.6 12.4 9.6 8.6 8.9 concluded that fishers would welcome the opportunity to Source: Direction Nationale des Statistiques du Commerce support scientific studies directed towards a full scallop Extérieur – DNSCE

Globefish Highlights October 2014 55 BIVALVES stock assessment. In addition, the report confirmed that Imports greater resources should be directed towards this kind of participatory scientific research and that a full capacity Scallops: Italy assessment of scallop boats operating in the Channel Jan-Jun should be undertaken. 2009 2010 2011 2012 2013 2014 (1 000 tonnes) EU UK 1.4 1.5 1.8 1.9 1.7 1.4 France 0.5 0.7 0.7 0.6 0.6 0.7 During the first half of 2014, Italy’s imports of scallops dropped by 13% compared with the same period Peru 0.2 0.2 0.4 0.2 0.2 0.3 last year. Italian shipments to the UK dropped even more Spain 0.1 0.2 0.2 0.1 0.1 0.1 significantly (-20%) and overall were down to the low Others 0.6 0.6 0.5 0.5 0.5 0.5 level recorded 6 years ago. Total 2.8 3.2 3.6 3.2 3.2 2.8 Source: ISTAT In Spain, imports of scallops during the first half of the year reflected a severe 37% decline compared with the same time period in 2013. Imports from France, Spain’s largest supplier, were especially reduced, dropping by 65%.

Imports Scallops EU Imports/Exports Jan-Jun Clam/Cockle/Ark shell 2009 2010 2011 2012 2013 2014 Jan-Jun (1 000 tonnes) 2013 2014 France* 12.4 12.6 12.4 9.6 8.6 8.9 (1 000 tonnes) Italy* 2.8 3.2 3.6 3.2 3.2 2.8 IMPORTS Netherlands 1.3 2.0 1.2 2.1 1.6 2.7 Republic of Korea 30.4 35.8 Belgium 1.6 2.2 2.6 2.1 1.9 2.3 Japan 37.8 33.1 Spain* 4.8 4.3 4.0 2.6 3.4 2.1 Spain 10.7 11.9 Denmark 0.4 0.5 1.2 1.4 1.4 1.1 USA 10.2 10.7 Others 3.7 3.5 3.1 2.8 2.6 2.6 Portugal 4.1 5.2 Total 27.0 28.2 28.1 23.8 22.7 22.5 Italy 4.3 4.8 Total Intra 13.1 5.7 6.0 6.0 6.8 4.9 China 4.6 4.1 Total Extra 15.2 8.5 7.6 5.6 5.9 6.0 Thailand 3.3 3.8 Total Extra 0.6 0.4 0.6 1.0 1.5 1.2 Singapore 2.6 2.5 Source : EUROSTAT and Customs* Hong Kong SAR 1.4 1.8 Total 118.3* 119.7* EXPORTS Imports China 74.6 78.7 Scallops: Spain Republic of Korea 5.2 4.4 Jan-Jun USA 5.1 4.4 2009 2010 2011 2012 2013 2014 Thailand 4.8 4.3 (1 000 tonnes) Canada 3.8 3.8 France 0.5 0.9 1.0 0.4 1.7 0.6 Italy 4.9 3.6 UK 0.4 0.7 0.4 0.6 0.6 0.6 Portugal 2.1 3.6 Italy 3.2 2.1 1.5 0.9 0.5 0.3 Netherlands 2.5 2.9 Peru 0.1 0.1 0.2 0.0 0.1 0.1 Taiwan PC 1.4 0.6 Netherlands 0.1 0.2 0.2 0.2 0.1 0.1 Chile 1.0 1.6 Others 0.5 0.3 0.6 0.4 0.3 0.4 Total 112.2 115.2* Total 4.8 4.3 4.0 2.5 3.4 2.1 Source: GTIS Source: Agencia Tributaria * estimates

56 Globefish Highlights October 2014 BIVALVES

Also during this time period, the European Rapid Alert System for Food and Feed (RASFF) reported 33 International trade developments: border rejections of molluscs shipments, compared with Canada-Europe Free Trade Agreement 16 the same period a year earlier. Out of the products stopped at the EU border, 28 shipments (85%) concerned The Canadian-European free trade deal, clams (Meretrix spp, Ruditapes decussatus, and Venus called the Comprehensive Economic and Trade spp.). Norovirus was the number one cause for rejection. Agreement (CETA) will come into force after the In the same period in 2013, 15 concerned clams. signature of both the Canadian and the Euro- pean parliament. The agreement will include an Outlook immediate tariff elimination for frozen scallops (currently have an 8% rate), chilled and frozen “Molluscs such as clams, scallops and mussels are mussels (currently at a 20% rate), and other sea- expected to witness the fastest growth over the next food products. few years”, reported the Transparency Market Research experts, with the segment “expected to grow at an annual rate of 2.6% from 2013 to 2019, owing to their rising use in polyculture systems such as rice and fish Clams, cockle, ark shells farming worldwide” (Source: Aquaculture Market for Carp, Molluscs, Crustaceans, Salmon, Trout and Other World Fishes - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019, Transparency Market Total imports of small bivalves (clams, cockles, ark Research). Trade barriers or their abolishment may have a shells) reached approximately 120 000 tonnes during the strong impact on the international trade of these species. first half of 2014, demonstrating very modest growth Indeed, duty free access of Canadian products into the (+1%). The Republic of Korea, the world’s number one European market is expected to stimulate trade of fresh importer with a 30% market share, imported 18% more and frozen mussels and scallops, while embargoes on than compared with the same period in 2013, while exports of food product from Europe to Russia will most Japan’s imports fell by 12%. likely impact oyster trade.

Bivalves production by species (2012)

Clams 4%

Scallops 12%

Mussels 24% Oysters 60%

Globefish Highlights October 2014 57 SPECIAL FEATURE Recent developments and trends in the Spanish seafood market

third after Greece and Italy. However, Spain captured the Background second largest volume in the EU with only slightly less

than Denmark. Spain has an exploitable area of more than 850 square kilometers with the largest fishing fleet in the EU In terms of size, the majority are inshore fishing in terms of gross tonneage (internal volume of ships). vessels, with a length of up to 12 meters, mainly using According to the Ministerio de Agricultura, Alimentación gears and techniques that are only slightly invasive to y Medioambiente, the capture fisheries sector is worth the marine environment. Regions with the greatest num- about EUR 1 784 million, while the aquaculture sector is ber of vessels in the national fleet are Galicia (48%) and valued at EUR 489 million, In macroeconomic terms, the Andalusia (16%). primary sector represents 2.3% of the Spanish GDP (EUR 1 022 988 million in 2013), compared with the EU-28 average of 1.7% in 2011. Even with the economic crisis, fish consumption in Spain remains significant and in 2012 was Fishing fleet data comparison estimated to be valued at EUR 8 860 million. between Spain and the EU, 2013

Despite significant production capacity, it is not Spain EU % Total EU sufficient to meet local demand and thus imports are needed. Indeed, imports of fish and seafood products Gross tonnage (GT) 372 617 1 659 363 22.40% into Spain are valued at EUR 4 800 million. while its ex- Number of vessels 9 871 86 982 11.30% ports are worth EUR 2 905 million, 74% of which is traded Captures (million tonnes) 813 197* **pending data publication within the EU. It is estimated that the distribution and * Data 2012 ** 15% in EU-27 in 2010 Source: European Parliament processing industries add a 47% value to the product that Source: Fishery Statistics, Magrama, 2010, 2012, 2014 reaches the end consumer.

Fleet size Employment in the sector

Spain currently has 9 871 boats as part of its fleet, There is a very strong fishing heritage along the en- which are distributed amongst 11 fishing regions. This tire Spanish coast, with certain areas highly dependent is the largest fleet in the EU in terms of gross tonnage, on this activity in economic and social terms, both di- around 370 000 tonnes, almost twice the volume of the rectly and indirectly. Fishing communities in Spain are second largest European fleet, the UK. The Spanish fleet organized into guilds. is 29 years old on the average, which is one year older than the European average. 5.8% of men employed in Spain are dedicated to the agricultural and fisheries sector. In the first trimester of In terms of units, the Spanish fleet represents 11.3% 2014, this percentage increased, which is the first time of the total number of fishing vessels in the EU, which is for this growth since 2010.

58 Globefish Highlights October 2014 RECENT TRENDS IN THE SPANISH SEAFOOD MARKET

Survey data of the active population in fisheries, 2014

Variation from Variation from October-December 2013 January-March 2013 January-March 2014 Type of employment (thousands of people) Percentage Percentage Difference Difference Difference difference

Active 42.4 108 4.43% 1.5 3.67% Employed 36.1 0.1 0.28% 0 0.00% Unemployed 6.3 1.7 36.97% 1.5 31.25% Unemployment rate (*) 14.86% 3.53 - 3.12 - (*) In the economic sectors, the number of unemployed only includes those who have left their jobs within the last year Source: Source: INE, 2014

Over 95% of the jobs are on board of a ship, and in Landings of fresh fish follow a linear trend at around 77% of cases take place within national waters. Women’s 400 000 to 500 000 tonnes per year, however, with fro- participation in the harvesting industry is seemingly mini- zen fish, strong variations are observed. With sustained mal, reflecting only 4% of the employees. In 30% of the growth between 2009 and 2012, the value of frozen pro- cases, they work in towed dredges for shellfish fishing. duction is relatively stable, absorbing production devia- tions by the correction in unit value. Maritime fishing employment data by location and gender, 2012 Spanish vessel captures by preservation (tonnes and thousand EUR) % % technique, 2007-2012 On shore On board Total Women Men Atlantic North 648 20 123 20 771 5.81% 94.19% Mediterranean 73 8 312 8 385 1.45% 98.55% Others 550 5 966 6 516 1.64% 98.36% Total 1 271 34 401 35 672 4.03% 95.97% Source: Economic survey of marine fisheries, 2012

Production

The majority of Spain’s production comes from capture fisheries, representing 75% of total production. Aq- uaculture constitutes 25%, and has remained fairly stable Source: Author’s personal compilation based on Magrama’s within the last 5 years. data

Share of aquaculture in total fish production, By volume, most of the captures take place in the Northeastern Atlantic, while the ones that take place in 2007-2012 (tonnes and %) the Mediterranean stand out for their value.

Captures by origin, 2012 Millions Tonnes of EUR Northeastern Atlantic 282 176 640 Southwestern Atlantic 116 879 295 Mediterreaean 78 985 281 Eastern central Atlantic 115 372 169 Indian 99 684 191 Pacific 47 023 69 Other 73 078 138 Total 813 197 1 784 Source: Author’s personal compilation based on Magrama’s data Source: Author’s personal compilation based on marine fishing statistics Globefish Highlights October 2014 59 RECENT TRENDS IN THE SPANISH SEAFOOD MARKET

According to importers, due to consumption rates Top ten suppliers of Spanish fish and seafood and capture volumes, the references that set the market price development in Spain are hake and anchovy. The imports and top products supplied, 2012 highest unit value per tonne corresponds to the squid/ (value in million EUR) cuttlefish/octopus category for both fresh and frozen. Top The highest catches in volume correspond to the sardine/ Total Rank Country import Top product supplied product anchovy/herring category although its value is slightly value value less than a third of the previous category. World 4 421* F r o z e n s h r i m p a n d p r a w n s 656 1 Morocco 346 Frozen, salted, dried octopus 96 Capture ranking per product family, 2012 2 Ecuador 298 Prepared/preserved tuna/ 162 Fresh Frozen skipjack/albacore Millions Millions Tonnes Tonnes of EUR of EUR 3 Argentina 287 F r o z e n s h r i m p a n d p r a w n s 190 Hake/cod 62 441 176 54 310 116 4 France 256 F r e s h / c h i l l e d h a k e 31 Herring/sardine/anchovy 83 169 126 - - 5 China 149 F r o z e n s h r i m p a n d p r a w n s 68 Tuna/albacore/pipefish 37 519 121 201 396 393 6 Portugal 208 F r e s h / c h i l l e d t u r b o t 15 Squid/cuttlefish/octopus 27 486 115 26 298 110 7 UK 169 F r o z e n N o r w e g i a n l o b s t e r 20 Total 394 535 1008 41 8117 776 8 Namibia 168 F r o z e n h a k e fi l l e t s 90 Source: Author’s personal compilation based on marine fishing 9 Netherlands 147 F r e s h / c h i l l e d c o d l e t fi l l e t s 19 statistics 10 Chile 141 P r e p a r e d / p r e s e r v e d m u s s e l s 27

Spain produces 40% of mussels in the EU, 76% of Source: Global Trade Atlas, 2013 which comes from aquaculture. However, because the *Any discrepancies are due to rounding and exchange rates unit value of seabass is much higher, it is the first product in terms of value (21% of total aquaculture products value) though it only notes 5% of the weight of total production. Top ten Spanish fish and seafood imports Aquaculture ranking 2012 (value in million EUR) per product family, 2012 Millions Rank Product Value Tonnes of EUR Seabass 14 455 107 Frozen shrimp and prawns 656 Mussels 203 664 100 1 Frozen, dried or salted cuttlefish and squid 391 Gilt-head bream 16 607 96 2 Prepared or preserved tunas/skipjack/bonito 381 Trout 16 320 53

Total 266 703 489 3 Frozen, dried or salted molluscs 223 Source: Author’s personal compilation based on marine fishing 4 Frozen yellowfin tuna 188 statistics 5 Frozen, dried or salted octopus 180 6 Frozen hake fillets 126 Trade 7 Fresh or chilled hake 119 In terms of imports, Spain is the fourth largest im- 8 Fresh or chilled fish 91 porter of fish and seafood in the world, with imports val- 10 Fresh or chilled Atlantic and Danube salmon 80 ued at about EUR 4 810 million in 2012 according to the Spanish Magrama, the Ministry in charge of the agricul- Source: Global Trade Atlas, 2013 ture, food and environment sector (Ministerio de Agri- cultura, Alimentación y Medioambiente). According to traders and the Spanish Institute for Spain is a diverse market, importing from 150 coun- Foreign Trade, Spanish exports tend to be more processed tries, with imports trends also affected by demand for products, where squid rings, tuna fillets, anchovies and ethnic and foreign fish from immigrants. The tables be- other products with certificates of origin playing an im- low present the origin and value of the top imported portant role. products.

60 Globefish Highlights October 2014 RECENT TRENDS IN THE SPANISH SEAFOOD MARKET

Consumption Packaged

Per capita, Spain is the second-largest fish and seafood consuming country in the EU, right behind Portugal. Packaged fish and seafood retail sales in Spain Per capita consumption in the country increased by 1.8 by category (sales in thousand tonnes) percent in 2013 over 2012, averaging 26.8 kg per person Category 2010 2011 2012 2013* 2014 2015 2016 2017 per year. On average, Spaniards earmarked about 13% of their food budget in 2013 to fish and seafood products, Chilled 23.1 22.8 22.6 22.4 22.4 22.5 22.6 22.8 an expense that has increased 4% compared with 2012. Canned/pres 220 226.5 232.8 238.4 243.4 247.6 250.8 253.3 With these consumption rates, it is estimated that Spain’s Frozen proces 30.2 31 31.8 32.4 32.9 33.4 33.8 34 total market volume is 1 218 949 tonnes worth EUR 9 084 million. Total 273.2 280.3 287.2 293.2 298.7 303.5 307.2 310.1 *Data of 2013 is an estimate of closure* The most popular type of fish consumed is hake, followed by tuna. Results from a food consumption panel organized by Magrama demonstrates that fresh fish is the Packaged fish and seafood retail sales most consumed (44.6%), followed by seafood and pre- in Spain (sales in kilograms per capita) served fish. Demand and consumption of the latter has Category 2010 2011 2012 2013* 2014 2015 2016 2017 increased in 2013 and this trend is expected to continue Chilled 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 in the period 2014-2017. The tables below present past Canned/pres 5 4.9 5 5.3 5.4 5.5 5.5 and forecasted fish and seafood volume sales by species 5.2 category and product form. Frozen proc 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 Total 6 6.1 6.2 6.4 6.5 6.6 6.7 6.7 Fresh *Data of 2013 is an estimate of closure

Fresh fish and seafood volume sales (past and According to the results of the a food consumption forecasted) in Spain by category panel, fishery consumers are often households of couples with or without children, elderly and retired couples (volume in thousand tonnes) who live in small towns of less than 2 000 habitants. The Category 2010 2011 2012 2013* 2014 2015 2016 2017 regions that consume the most in Spain include Castile Leon, Galicia and Asturias. Crustaceans 183.6 184.7 179.3 177.3 177.8 180.1 185.4 186.7

Fish 856 842 832.7 825.6 835.8 849.5 856.3 860.3 Concerning the point of purchase, 67.2% of the fish products (by weight) are bought in supermarkets. In the Molluscs and 315.3 294.2 289.6 282.5 285.2 288.3 293.2 294.7 cephalopods last 12 months, purchases from discount grocery stores have increased the most (+5%). Purchases from tradition- Total 1354.6 1320.9 1301.6 1285.4 1298.7 1317.9 1334.9 1341.7 al shops on the other hand have dropped 3.5% in the same Source: Euromonitor, 2013. time period, although these shops continue to be the second most important purchase place for fishery products. * Data of 2013 is an estimate of closure. The real total consumption was of 1 219 thousand tonnes. In terms of information for consumers, Spanish la- Please note: Volume sales for the fresh fish and seafood market include both foodservice and retail sales. Any slight discrepancies in column totals are belling provides the commercial name of the species, due to rounding price per net of kilo drained, mode of presentation and processing, production method, capture or breeding zone and percentage of glazing (the water content covering the fish to protect it from oxidation or dehydration). La- Fresh fish and seafood volume sales in Spain beling also allows identifying organic products, though organic practices are still very minor in the country. (sales in kilograms per capita) Category 2010 2011 2012 2013* 2014 2015 2016 2017 Conclusion

Crustaceans 4 4 3.9 3.8 3.9 3.9 4 4.1 Despite the economic crisis, Spain remains one of Fish 19 18.2 18 17.9 18.2 18.5 18.7 18.8 the largest markets for fisheries in the EU. The country’s Molluscs and market continues to have great potential, especially with 6.9 6.4 6.3 6.1 6.2 6.3 6.4 6.4 cephalopods the introduction of new species such as cobia, a newly Total 29.5 28.6 28.2 27.9 28.2 28.7 29.1 29.3 licensed cultivation species in Spain. Other exotic species demanded by immigrants also present significant oppor- *Data of 2013 is an estimate of closure tunities for growth.

Globefish Highlights October 2014 61 Fish and fishery products statistics1 Capture fisheries Aquaculture fisher- Exports Imports production ies production

2011 2012 2011 2012 2012 2013 2014 2012 2013 2014 estim. estim. Million tonnes (live weight equivalent) USD billion

ASIA 48.9 50.2 54.8 58.9 51.2 53.4 55.7 43.9 42.5 43.3 China2 16.8 17.2 38.9 41.5 20.8 22.2 23.1 12.2 12.9 14.1 of which China, Hong Kong SAR 0.2 0.2 0.0 0.0 0.7 1.1 1.0 3.7 3.8 3.7 & Taiwan PC 0.9 0.9 0.3 0.3 2.0 1.8 1.9 1.0 1.0 1.2 India 4.3 4.9 3.7 4.2 3.4 4.6 6.5 0.1 0.1 0.1 Indonesia 5.7 5.8 2.7 3.1 3.6 3.8 4.1 0.4 0.4 0.3 Japan 3.8 3.6 0.6 0.6 1.8 2.0 1.9 18.0 15.4 14.9 Republic of Korea 1.7 1.7 0.5 0.5 2.0 1.8 1.7 3.7 3.6 4.3 Philippines 2.4 2.3 0.8 0.8 0.8 1.2 1.1 0.2 0.3 0.2 Thailand 1.8 1.8 1.2 1.2 8.1 7.0 6.3 3.1 3.2 2.6 Viet Nam 2.5 2.6 2.8 3.1 6.3 6.3 6.3 0.8 0.9 0.9 AFRICA 7.7 8.2 1.4 1.5 5.5 5.5 5.6 5.3 6.8 7.0 Ghana 0.3 0.4 0.0 0.0 0.0 0.0 0.0 0.2 0.4 0.4 Morocco 1.0 1.2 0.0 0.0 1.6 1.8 1.7 0.1 0.2 0.2 Namibia 0.4 0.5 0.0 0.0 0.8 0.8 0.8 0.0 0.0 0.1 Nigeria 0.6 0.7 0.2 0.3 0.3 0.2 0.2 1.5 2.4 2.3 Senegal 0.4 0.5 0.0 0.0 0.3 0.3 0.4 0.0 0.0 0.0 South Africa 0.5 0.7 0.0 0.0 0.6 0.5 0.7 0.4 0.5 0.5 CENTRAL AMERICA 2.4 2.2 0.3 0.3 2.3 2.4 2.6 1.7 1.9 2.4 Mexico 1.6 1.6 0.1 0.1 1.1 1.1 1.1 0.6 0.8 1.1 Panama 0.2 0.1 0.0 0.0 0.1 0.2 0.3 0.1 0.1 0.1 SOUTH AMERICA 14.0 10.1 2.1 2.3 12.8 13.7 16.4 2.8 3.3 3.7 Argentina 0.8 0.7 0.0 0.0 1.3 1.5 1.6 0.2 0.2 0.1 Brazil 0.8 0.8 0.6 0.7 0.2 0.2 0.2 1.2 1.5 1.6 Chile 3.1 2.6 1.0 1.1 4.4 4.9 5.9 0.4 0.4 0.5 Ecuador 0.5 0.5 0.3 0.3 2.8 3.6 4.5 0.2 0.1 0.1 Peru 8.2 4.8 0.1 0.1 3.3 2.7 3.6 0.1 0.2 0.2 NORTH AMERICA 6.2 6.2 0.6 0.6 10.4 10.8 11.2 20.3 21.8 25.3 Canada 0.9 0.8 0.2 0.2 4.2 4.4 4.5 2.7 2.8 2.9 United States of America 5.2 5.1 0.4 0.4 5.8 6.0 6.3 17.6 19.0 22.4 EUROPE 13.3 13.1 2.7 2.9 44.2 47.6 50.7 53.6 58.1 61.6 European Union 2 5.1 4.6 1.3 1.3 28.7 30.4 32.2 47.2 50.9 54.5 of which Extra-EU " " 0.0 5.7 5.9 6.0 24.9 26.5 28.4 Iceland 1.1 1.4 0.0 0.0 2.2 2.3 2.2 0.1 0.1 0.1 Norway 2.3 2.2 1.1 1.3 8.9 10.3 11.7 1.4 1.3 1.5 Russian Federation 4.3 4.3 0.1 0.1 3.2 3.4 3.4 2.7 3.3 3.1 OCEANIA 1.2 1.3 0.2 0.2 3.1 3.0 3.1 2.0 2.0 2.3 Australia 0.2 0.2 0.1 0.1 1.0 1.0 1.2 1.6 1.6 1.8 New Zealand 0.4 0.4 0.1 0.1 1.2 1.2 1.2 0.2 0.2 0.2 WORLD 3 93.7 91.3 62.0 66.6 129.4 136.4 145.3 129.5 136.6 145.6 World excluding Intra-EU " " " " 106.5 111.9 119.1 107.3 112.1 119.5 Developing countries 69.3 67.2 58.0 62.3 70.5 73.7 78.7 35.1 38.4 40.6 Developed countries 24.4 24.1 4.0 4.3 58.9 62.7 66.7 94.4 98.2 105.0 LIFDCs 14.0 14.8 6.5 7.3 7.5 9.1 11.0 3.6 5.1 5.0 LDCs 9.4 9.8 2.7 3.0 2.7 2.6 2.7 0.9 1.1 1.2 NFIDCs 21.3 18.5 4.0 4.3 10.2 10.0 10.8 3.9 4.3 4.6

621 Production and trade data exclude whales, seals, other aquatic mammals and aquatic plants. Trade data include fish mealGlobefish and fish oil. Highlights 2 Including October intra-trade. 2014 Cyprus is included in Asia as well as in the European Union. Starting with 2013 data, EU includes Croatia. 3 For capture fisheries production, the aggregate includes also 64 081 tonnes in 2011 and 37 360 tonnes in 2012 of not identified countries, data not included in other aggregates. Totals may not match due to rounding. Research Programme Vol. 116 The European market for bivalves other than mussels May 2014 €30 Vol. 115 The European market for mussels April 2014 €30 Vol. 114 Eel (Anguilla spp.): Production and trade * July 2014 ---- Vol. 113 Exchange rates and the seafood trade* Jan 2014 €30 Vol. 112 By-products of tuna processing Jul 2013 €30 Vol .111 Technical guide to fish canning May 2013 €30 Vol. 110 Innovative uses of fisheries by-products Feb 2013 €30 Vol. 109 Seafood markets in Southern Africa Jan 2013 €30 Vol. 108 Risks and benefits of seafood consumption* Jan 2013 €30 Vol. 107 El eco-etiquetado de productos pesqueros en España Sep 2012 €30 Vol. 106 El mercado de productos pesqueros en España Aug 2012 €30 Vol. 105 The European market for shrimp Aug 2012 €30 Vol. 104 The Seafood Market in France Aug 2011 €30 Vol. 103 Turbot – Production Technology and Markets Feb 2011 €30 Vol. 102 The Ornamental Fish Trade Nov 2010 €40 Vol. 101 Markets for Tilapia Jul 2010 €30 Vol. 100 Importance of APEC in world fisheries and aquaculture Mar 2010 €30 Vol. 99 Viet Nam - Seafood from Waterland Mar 2010 €30 Vol. 98 The seafood market in Greece Mar 2010 €30

* free electronic version available at www.globefish.org/globefish-research-programme.html

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

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