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HIGHLIGHTS A quarterly update on world seafood markets

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Global fi sh economy Seabass and seabream impress Russia After a strong rebound in 2010, the current year looks likely In 2010, producers in Mediterranean to set new trade records thanks to strong demand and rising countries scaled back operations prices. p. 2 because of tighter access to credit and uncertain demand. This will result Shrimp prices reach record high in lower output in 2011 causing the current price to rise. The In real terms, 2010 was a good year for question remains as to what will happen during the fall after shrimp farmers and traders worldwide. the new season begins. p. 31 The market has also made a clear recovery after the global fi nancial Salmon production in 2010 less than half in Chile crisis hit in 2008. Shrimp prices have Chilean production of Atlantic salmon reached record highs in major domestic and import markets – a in 2010 was less than half of the levels trend that continued throughout 2010 and has continued during registered in previous years. The the fi rst quarter of 2011. p. 4 available fi gures for harvests show that up to November 2010 there was a 54% reduction in aquaculture Effect of Japan’s tsunami on tuna market uncertain output. p. 35 The devastating earthquake and tsunami have had serious effects on Mackerel wars continue into 2011 Japan’s fi shing industry and trade, as During 2010 Russia emerged as an Japan is the world’s largest sashimi important market for mackerel, tuna market p. 11 although the declining trend of exports from Norway continued. Herring exports Groundfi sh needs to focus more on value added in 2010 also declined but prices rose to counteract the negative products impact. Supplies of pelagic fi sh have tightened recently, and The remarkable resurgence of the main reason for this is the poor supply of Norwegian spring groundfi sh, especially Atlantic cod, spawning herring. p. 41 which will exceed one million tonnes in 2011 for the fi rst time in more than Fishmeal production at lowest level in years keeps a decade, will be welcome in global prices high markets. However, the groundfi sh industry needs to be creative in Combined world production of fi shmeal order to get the attention of consumers who are more interested fell sharply last year caused by declining in low prices. p. 18 catches in producing countries in South America. By region, fi shmeal output Octopus supply tight, squid improving fell back 27% in South America whereas Tight supplies affected trade in 2010, European production bounced upwards especially for octopus. Imports into all by 39% thanks to higher catches in Norway in particular. p 45 the major markets declined, and prices edged upwards. For squid, supplies were better, and the outlook for 2011 Fish oil price continues to track crude oil price The fi sh oil market is in stand-by mode is good. The cuttlefi sh market is quiet, with stable volumes and awaiting the results of the Peruvian slightly increasing prices. p. 22 fi sheries. Current prices are at record levels and despite increased oil Tilapia demand continues to grow production during the fi rst two months Global demand for tilapia continues of 2011 compared with last year, up to grow both in international and from 59 000 tonnes to 78 000 tonnes, prices should remain in domestic markets. Prices are high. p. 48 expected to be higher in 2011 with demand fi rm, rising processing costs and a balanced supply. New Challenges for Bivalve Molluscs Exports from China in 2010 grew 25% in volume reaching The bivalve mollusc sector faced a 321 885 tonnes. p. 26 number of challenges in 2010, including a reduction in the import of scallops to the European Union, an oversupply of Asian countries look to pangasius for domestic mussels that led to a drop in the average consumption as Viet Nam’s exports crumble price in Chile, and the shortage of oysters in the French market Viet Nam remains the main supplier of with a corresponding 40% price rise. p. 49 pangasius catfi sh in international trade. However, aquaculture production of p. 53 pangasius is developing in other Asian Fish and fi shery products statistics countries as well, contributing largely to domestic food security programmes. Worldwide demand for SPECIAL FEATURE imported pangasius fi llet remained stable with minor declines in Value-addition in the fi sh processing industry - additives the traditional markets supplied by Viet Nam. p. 29 and coatings p. 54 GLOBAL FISH ECONOMY

After a strong rebound in 2010, the current the direct damage caused to domestic production if year looks likely to set new trade records consumer preferences were to move towards imported thanks to strong demand and rising prices. products. In this case, the impact on world ﬁ sh markets would be signiﬁ cant.

Japan For the industry, one likely effect overall is a change in strategy to one of less concentrated supply. Operators The tragic earthquake and accompanying tsunami in will be willing to forego some economies of scale Japan is affecting world markets for food. Japan is the to ensure a more diversifi ed supply. It can be expected world’s single largest importer of fi sh and fi shery products, that parts of the processing facilities destroyed will not and in the short term, the damage to infrastructure be rebuilt as plant owners choose to re-locate industry and the disruption in transportation and electricity elsewhere. Much of Japan’s fi sh processing capacity has transmission is negatively impacting imports, distribution already been outsourced to neighboring countries such and consumption of chilled and frozen products. The as China, Viet Nam and Thailand, and this trend will earthquake and tsunami have also destroyed many fi shing continue. zones and fi shing vessels, thereby reducing Japan’s ability to catch and produce fi sh locally. Fish processing plants 2010 with strong rebound in global fi sh trade have been damaged as well. International trade in fi sh and fi shery products The 2009 combined production of marine capture bounced back in 2010 to pass the USD 100 billion mark fi sheries and marine aquaculture of the three most again. In part, this was thanks to higher average fi sh affected prefectures was 446 000 and 198 000 tonnes, or prices, which had declined sharply after the crisis struck 11 and 17% respectively of the total Japanese production. in late 2008 and continued through 2009. Consumer A reduction of 80% in production can be expected in those demand was particularly strong in developing countries affected areas as a result of the tsunami. It must be borne supported by the faster than expected economic recovery in mind that Japan is heavily dependent on imports as in these countries. This rising demand was and is still being well for its fi sh consumption so the contribution of the met through higher domestic production and imports of affected areas to total supply is actually far less. tropical aquaculture products. The effect on Japanese consumer sentiment and consumption resulting from the nuclear fall-out is still Prices unknown, although the frequent interruption in power supply will continue to limit consumption of chilled In 2010, the farmed shrimp price reached its highest and frozen products. Equally, consumer reaction to level in a decade. Quotations for farmed salmon, tilapia, domestically sourced fi shery products is uncertain. This pangasius, Indian carp and other species have also gone up factor could potentially be much more important than in domestic and international markets - a trend expected to infl uence and redirect world fi shery trade in the future.

Top-10 Importers

20 2009 2010 15 USD bill

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

* Excludes Intra-EU trade Source: INFOFISH

2 Globeﬁ sh Highlights April 2011 GLOBAL FISH ECONOMY

In part the high prices of farmed species were caused by World fi sh markets at a glance factors on the supply side but with the expected growth 2008 2009 2010 Change in demand over the next decade and with rising prices of f’cast 2010 a number of input factors, including energy and fi shmeal, over 2009 prices for both wild and farmed species can be expected million tonnes % to rise to even higher levels. WORLD BALANCE As shown by the FAO Fish Price Index, current fi sh Production 142.3 144.6 147.0 1.7 prices are higher on average than ever before, indeed Capture fi sheries 89.7 88.9 89.8 1.0 higher than the levels reached before the start of the Aquaculture 52.5 55.7 57.2 2.7 2008 economic crisis. Aquaculture products, in particular, Trade value (exports USD billion) 102.0 95.4 101.9 6.8 have shown strong increases and at present levels are Trade volume (live weight) 55.2 54.9 55.3 0.7 23% higher than in September 2008. Again, this is mostly Total utilization explained by factors on the supply side but it is also evident that the market is willing and able to accept Food 115.1 118.4 119.5 1.0 these prices. Feed 20.2 19.0 20.1 5.8 Other uses 7.0 7.2 7.4 2.8 Capture prices on the other hand, after a sharp drop SUPPLY AND DEMAND INDICATORS in the aftermath of the crisis, have only recently regained Per caput food consumption pre-crisis price levels. Food fi sh (kg/year) 17.1 17.3 17.3 0.2 From capture fi sheries (kg/year) 9.3 9.1 9.0 -1.7 Outlook From aquaculture (kg/year) 7.8 8.2 8.3 2.6 After a strong 2010, the current year is expected to Totals may not match due to rounding. yield new records in international fi sh trade. Volumes are sustained by fi rm demand in most markets, in particular in developing countries, and prices are rising for both capture and farmed species. The situation in Japan has added some uncertainty regarding Japanese consumer behavior, its possible impact on demand for imported fi sh products and the repercussions in world markets. The FAO Fish Price Index (2005=100)

145

135

125

115

105

TOTAL AQUACULTURE CAPTURE

75 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Data Source: Norwegian Seafood Export Council

Globeﬁ sh Highlights April 2011 3 SHRIMP

Shrimp prices reach record high

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

Exports Latin America

Shrimp exports increased from most of the producing Farmed shrimp supplies are not expected to improve countries in 2010. The global leader in production, China before May-June, when the main harvest season should reported an 11.60% rise in shrimp exports reaching start. Demand for shrimp is also expanding for Latin 275 000 tonnes, but placed second in ranking behind American products. The presence of Chinese importers in Thailand as more products entered the strong domestic Ecuador has been good, procuring raw frozen and value- market. Shrimp exports from Thailand totaled 428 000 added products. tonnes, representing a 10% increase compared with 2009. Viet Nam was possibly the third leading shrimp supplier in USA the global market. The trade association VASEP reported 241 000 tonnes of exports in 2010, 13.4% higher than Domestic landings totaled 95 655 tonnes, a decrease 2009. India, Indonesia and Malaysia also reported export of 27.1% compared with 2009. The only state to increase recovery in 2010 against 2009. landings was Florida (+14.7%); in Texas, Alabama, Mississippi and Louisiana landings decreased by 14.3%, Supply 56.1%, 60% and 32% respectively. The smaller supply

Asia

Overall supply of farmed shrimp has been seasonally Shrimp production by main species (2008) low in Asia during the ﬁ rst quarter of 2011 and the new season’s harvest was expected to be ready in April. However, in late March severe ﬂ ooding in southern Thailand washed away more than 50 000 tonnes of shrimp affecting hundreds of farms in the region. The situation will certainly take its toll on exports from Thailand in Others 27% the coming months. Catching of black tiger shrimp 1 592 526 Penaeus vannamei 39% commenced in Bangladesh and India in late March with 2 260 503 low to moderate landings.

The ﬁ rst large harvests of farmed vannamei shrimp Northern prawn, took place in India last year, amounting to about 20 000 7% tonnes, contributing to higher exports. One vannamei 383 649 Giant tiger shrimp farm (Sharat Industries) was also certiﬁ ed prawn, 17% Akiami paste 965 981 ‘sustainable’ by Friend of the Sea in February 2011. shrimp 10% Indian vannamei production this year is forecast to reach 558 224 35 000 tonnes. Source: FAO

4 Globeﬁ sh Highlights April 2011 SHRIMP

had an impact on prices, which showed signiﬁ cant rises. Imports in 2010 For this year, the outlook is quite different as NOAA has reopened shrimp ﬁ shing in 4 200 square miles of Gulf Despite record high shrimp prices in the international waters, which might have a positive impact on supply. market, Japan imported 5.84% more shrimp last year compared with 2009. Cumulative shrimp imports in 2010 reached 280 732 tonnes - the highest volume recorded Shrimp prices (16-20 count) in main wholesale since 2007 by Japanese Customs. Supplies increased for markets, USA and Japan both raw and processed shrimp.

8 Thailand was the leading exporter with higher USD/lb supplies of raw and value added products. Overall, Gulf brown, New York 7 Thailand supplied 77 642 tonnes, Viet Nam 55 416 tonnes, Indonesia 38 518 tonnes and India 28 517 tonnes. Exports of coldwater varieties also increased from Russia and 6 Argentina.

5 The Japanese market imported more value added Indian white, Tokyo shrimp in 2010. The share of processed shrimp in total 4 shrimp imports increased from 24% in 2009 to 34% in 2010. Thailand captured a 56% market share in processed 3 shrimp exports whereas Viet Nam held the second position Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 with a 20% market share for products under the HS code 160520.

Japan Imports

The end-of-winter season in early March started with Shrimp (by product): Japan much anticipation and planning for good seasonal demand 2007 2008 2009 2010 in April and May. However, the devastating tsunami on (1 000 tonnes) 11 March and its after effects have totally changed the Live 0.2 0.1 0.1 0.1 direction of the Japanese seafood market, including for Fresh/chilled 0.0 0.0 0.0 0.0 shrimp. The magnitude 9 earthquake, which triggered 30 Frozen, raw 207.3 196.6 197.6 205.3 feet high tidal waves, killed more than 20 000 people in Dried/salted/in brine 1.6 1.8 2.9 2.6 the coastal region northeast of Tokyo. Cooked, frozen 17.9 19.7 20.9 21.6 Currently there is no real direction in the market. Cooked & smoked 0.3 0.3 0.3 0.3 The large number of cancellations in hotel and restaurant Prepared/preserved* 48.2 44.0 41.1 46.6 bookings, including high-end sushi and tempura Sushi (with rice) 0.1 0.1 2.2 2.0 restaurants clearly indicates a scenario of minimizing Total 275.5 262.6 265.2 280.7 celebrations during the Spring festival. People in the Shrimp production by main species (2008) *(incl. tempura shrimp)Source: JFTA/INFOFISH greater Tokyo area (Kanto) where shrimp consumption is the highest in the country are mourning the rising tsunami death toll and extremely worried about the continued nuclear crisis. Following a nationwide drive to raise funds Raw frozen shrimp dominated the product mix with for tsunami/earthquake victims, there will be less money a 73% share in total shrimp imports. Viet Nam was the Others 27% spent on expensive food such as shrimp during this year’s 1 592 526 Penaeus leading supplier of raw frozen shrimp in 2010. However, vannamei 39% Hanami or Cherry Blossom festival. the supply from Viet Nam increased by only 1.42% against 2 260 503 a 17.36 % rise in imports from Thailand and a 16.50% rise In early April, shipments of black tiger shrimp bound from India. Supplies also increased from Malaysia. Imports for Osaka from Kolkata and to Nagoya from Indonesia were of coldwater shrimp were higher from Russia, Argentina Northern prawn, noted. In March,Indian packers also sold a considerable and Denmark compared with 2009. 7% quantity of large sizes (11/15 to 26/30 ) of headless 383 649 Giant tiger vannamei to Japan. Many of these shipments are now prawn, 17% USA Akiami paste 965 981 delayed at origins as a result of the infrastructural damage shrimp 10% as well as the nuclear radiation scare in Japan. Current 558 224 imports are slow from Thailand and Malaysia because of In the US, the shrimp market has been strengthening the high offer prices. since late January. Imports in that month were higher than 2010 and 2009. Overtaking Viet Nam, supplies from India

Globeﬁ sh Highlights April 2011 5 SHRIMP

Imports Imports Shrimp (frozen raw): Japan Shrimp: USA 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 (1 000 tonnes) (1 000 tonnes) Viet Nam 54.6 51.1 40.0 42.2 39.9 40.5 Thailand 160.9 193.7 188.3 182.4 192.8 203.2 Thailand 18.4 20.1 26.4 24.9 32.1 37.7 Ecuador 49.6 59.4 59.1 56.3 61.6 65.0 Indonesia 52.6 58.7 59.1 84.0 69.3 61.1 Indonesia 45.6 43.7 37.1 37.4 34.8 32.0 Viet Nam 42.9 37.1 39.3 47.9 44.1 48.4 India 26.3 28.5 27.0 24.0 24.3 28.3 China 45.2 68.2 48.4 47.8 42.2 48.1 China 24.1 22.8 24.0 16.8 14.9 13.8 India 35.7 27.3 20.8 15.2 19.9 30.2 Russian Fed. 10.4 9.5 8.9 7.8 7.1 7.9 Malaysia 17.2 20.3 22.8 30.1 18.4 24.3 Malaysia 3.1 3.1 4.2 4.5 5.1 7.3 Mexico 28.1 35.4 40.6 34.5 41.1 23.5 Canada 8.1 8.7 7.6 7.7 7.2 7.1 Honduras 10.5 9.3 7.3 5.7 8.7 10.2 Myanmar * * 8.0 6.8 6.7 5.9 Bangladesh 15.8 19.4 14.9 13.7 9.9 8.1 Greenland 7.5 6.8 5.4 5.6 6.5 5.0 Guyana 8.6 7.8 8.9 9.1 8.9 7.8 Argentina 0.6 3.4 1.9 2.6 3.6 4.9 Peru 4.5 5.3 7.2 7.5 8.5 7.0 Philippines 6.2 5.3 4.3 3.5 4.0 3.5 Nicaragua 4.9 4.8 4.2 2.4 4.8 4.4 Bangladesh na na 2.6 3.1 2.4 2.5 Venezuela 11.4 9.9 10.8 7.1 3.8 3.6 Australia 3.6 3.2 1.9 2.3 2.0 2.1 Panama 5.9 4.7 4.5 3.6 3.6 3.3 Others 23.9 23.8 18.6 7.4 7.0 6.9 Canada 7.7 7.1 6.0 5.0 3.0 2.8 Total 232.4 230 207.3 196.6 197.6 205.4 Others 27.3 21.9 14.8 11.8 11.6 9.8 Source: GLOBEFISH AN 10127, *) included under others Total 528.8 590.3 556.9 564.2 552.2 560.8 Source: NMFS; GLOBEFISH AN 10129 increased signiﬁ cantly, with vannamei shrimp having a major share. Stocks in the market are low. Imports picked up strongly in March as new harvests will not reach the market before April/May.

Thai dominance in supply remains with higher exports of raw and processed shrimp. Compared with Imports January last year, Indonesian supplies recovered with Shrimp: USA higher exports of shell-on and peeled products. 2008 2009 2010 Product 1 000 million 1 000 million 1 000 million Despite higher prices, shrimp demand in the last tonnes USD tonnes USD tonnes USD quarter of 2010 was slightly better than in the same period of 2009, giving a signal of the positive trend of the sector Breaded frozen 37.9 192.1 37.4 198.4 41.6 230.9 regarding demand and prices (although the benefi ts of good prices are being absorbed by the producers rather Other froz. prep. 90.5 696.6 96.8 722.3 95.1 745.5 than intermediaries and retailers). Other prep. 1.3 6.4 1.2 5.2 1.5 7.1 Peeled frozen 183.7 1 364.5 184.6 1 303.8 188.9 1 521.3 Signifi cant import value increment as a result Frozen shell-on 244.5 1 780.2 221.9 1 469.9 226.0 1 727.7 of higher prices in 2010 < 15 22.8 285.1 18.3 204.2 18.4 242.2 15/20 21.5 220.3 16.7 147.3 19.8 216.9 During 2010, US shrimp imports were slightly 21/25 30.2 260.9 30.7 241.0 28.2 256.6 higher than the previous year totaling 560 800 tonnes, 26/30 34.4 245.5 35.6 239.0 34.5 270.2 an improvement of 1.6% compared with 2009. In value, 31/40 42.5 264.4 45.2 266.5 46.9 311.4 imports totaled USD 4 295 million, an increase of 13.7% 41/50 31.5 181.1 29.1 152.0 28.9 171.8 against the previous year. This signifi cant rise is explained mainly by higher prices in the international market. In 51/60 31.7 173.5 24.2 118.0 25.2 138.6 2009 the average price paid for a tonne was USD 6 842, 61/70 18.0 93.1 13.2 63.8 14.5 76.6 while in 2010 the average price was 12% higher, reaching > 70 11.9 56.2 9.1 38.1 9.6 43.4 USD 7 659. Unit value increased in all product categories, Other 6.4 53.0 107.1 800.8 7.8 62.5 but some products and counts were particularly Total general 564.2 4092.7 552.2 3778.1 560.8 4294.9 noteworthy, for example, the peeled frozen shrimp price Source: NMFS increased by 14%, the frozen shell-on price increased on

6 Globefi sh Highlights April 2011 SHRIMP average 15.4%, but overall it is clear that medium and authorities on wild shrimp linked to the use of TED´s as large counts prices explained the good growth. While the well as the “white spot” disease in the aquaculture sector. 61/70 count price increased by 9.2%, U15, 15/20, 21/25 The Mexican market share declined from 7.3% in 2009 to and 26/30 count prices increased by 17.5%, 23.8%, 15.8% 4.2% this year. and 16.4% respectively. Imports In mid- March, In volume, imports of frozen shell-on increased Frozen Shrimp: China after a long period by 1.9%, but here again each count showed variation. 2008 2009 2010 of evaluation the Smaller counts, 61/70 and <70, increased in volume by (1 000 tonnes) US International 10% and 5.6% respectively, as well as the 21/25 count, Trade Commission Canada 10.4 9.7 15.5 up by a signifi cant 19%. In contrast, the 26/30 count was decided to maintain down by 8%, and the rest remained almost unchanged. Greenland 7.2 8.3 9.9 the anti-dumping Thailand 1.5 2.2 6.9 duties on imports of Denmark 2.3 2.7 3.7 frozen warmwater White Shrimp in Japanese market, Malaysia 1.5 1.5 2.6 shrimp from Brazil, origin Indonesia India 1.5 1.6 2.0 China, India and 30 Thailand. The USD/kg Ecuador - 0.3 1.2 decision was taken Total 33.8 37.8 51.6 25 to protect domestic Source: GLOBEFISH AN 010150 production and will 16/20 be enforced until at 20 least 1 February 2015, when a new evaluation will begin. The industry representative from Thailand, meanwhile, 15 indicated that the extension will not have much impact on their exports, which have increased signifi cantly in 31/40 10 recent years to this market.

5 Boston Seafood Show 2011 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Source: Infofi sh ITN Industry representatives at 2011 Boston Seafood Show reported an overall positive industry outlook for Now that the overall fi gures of the market in the fi rst this year, much better than for the last two years. There year of economic growth after the crisis are available, is a consensus that most in the sector made money in some general conclusions can be reached. The volume of 2010. However, with wholesale prices of the majority of imports remained approximately at the same level since seafood products on the rise, there may be resistance 2007, showing that the economic impact of the crisis did from the market. The rising gasoline prices and the not reduce the consumption of shrimp. However, the situation in Japan are also major concerns. Shrimp pattern of shrimp consumption was changed as result of demand during the Lent is relatively low as traditional the crisis. During the recession period medium counts Lenten purchasing is more oriented towards fi nfi sh. A real became more popular while consumption of large counts increase in shrimp demand is expected when the weather declined, and this trend was reversed, with large counts improves, especially in the Mid West and north eastern becoming popular again, once economic growth turned states. Meanwhile, some importers believe that a price positive. This may have had an impact on the reduction correction is likely this summer. Wholesale prices of most of the average price per tonne during 2009, as medium sizes and presentations are now quite high and many have counts are cheaper than large ones. not yet been passed on to consumers.

Thailand remained the largest supplier to the US Europe exporting 203 237 tonnes, up 5.4% from 2009. Imports from China, Viet Nam, Malaysia, India and Ecuador Despite the economic crisis, the EU shrimp market increased, while imports from Indonesia and Mexico was relatively strong during the ﬁ rst quarter of 2011. dropped signiﬁ cantly. Ecuador increased market share From Asia, demand was good for traditional shell-on black from 11% to 11.6%, and became the second major shrimp tiger, peeled shrimp and also for vannamei. Importers importer to the US in 2010. Its imports increased by 5.6%. have started buying large sizes of vannamei from Asia. Imports from Viet Nam and China increased by 9.7% and Indian packers, for example, have cemented exclusive 14% respectively. The largest growth rates came from arrangements with major importers in France and Spain India (+51.4%), Malaysia (+32.2%) and Honduras (+17.2%). for supplying head-on vannamei. European buyers are In contrast, exports from Indonesia dropped by 11.9%, facing strong competition from US counterparts who are and Mexico’s declined sharply by 42.8%. This level buying large quantities of blocks and IQF (net weight) of reduction is explained by a ban imposed by the US products.

Globeﬁ sh Highlights April 2011 7 SHRIMP

Supply was seasonally low during the fi rst quarter Frozen shrimp supplies from major exporting countries of 2011. The strong demand in Asia during the Lunar increased, except for imports from China, while imports (Chinese) New Year celebration in February also diverted from Argentina, the largest supplier increased by 17.8%, a considerable amount of shrimp into regional markets in Ecuador 14.7% and Thailand 53.3%. China, Hong Kong Special Administrative Region, Taiwan Province of China and Singapore. Imports into the UK increased marginally by 1.2% in quantity, but value was signifi cantly up by 10.8%. Thailand Strong growth in 2010 was the largest supplier exporting over 17 000 tonnes of frozen and prepared/processed products. Other main In 2010, the EU shrimp market posted fi gures showing suppliers from Asia were Indonesia, India, Bangladesh positive growth, which were refl ected by increasing and Viet Nam. imports. The EU imported 836 854 tonnes of shrimp from internal and external sources, representing an increase of 3% over 2009. Imports Shrimp imports into Spain, the largest EU market, Shrimp: UK did not show any reduction. Instead, imports increased 2005 2006 2007 2008 2009 2010 by 4.7% in volume and 24.3% in value, totaling 170 720 (1 000 tonnes) tonnes worth EUR 877.6 million. Though relatively small, Shell-on Coldwater imports of processed products grew strongly by over 41%. Denmark 2.6 2.8 2.4 2.2 2.2 1.3 Others 1.3 1.8 2.4 1.9 1.9 2.1 Total 3.9 4.6 4.8 4.1 4.1 3.4 Imports Shell-on Warmwater Shrimp: Spain India 10.8 11.3 10.5 7.6 7.6 7.6 2005 2006 2007 2008 2009 2010 Thailand 0.6 1.2 4.1 4.8 5.4 7.3 (1 000 tonnes) Bangladesh 9.0 6.2 5.7 4.6 6.1 5.3 Argentina 5.3 24.9 34.0 28.5 36.2 42.7 Indonesia 6.1 5.2 6.3 5.9 4.2 5.0 Ecuador 15.6 19.5 21.5 27.9 20.4 23.5 Viet Nam * * 1.0 2.4 3.4 3.5 China 26.5 28.8 28.0 27.1 25.4 22.7 Others 12.9 14.1 11.1 10.2 9.8 9.2 Thailand 0.5 1.2 1.7 5.7 7.7 11.8 Total 39.4 38.0 38.7 35.5 36.5 37.9 Nicaragua 3.2 4.0 6.6 5.8 6.5 5.9 Cooked & Peeled Colombia 9.6 8.8 7.9 7.9 7.2 5.3 Iceland 17.7 16.9 15.3 13.4 12.3 12.5 Netherlands 5.4 5.0 5.0 4.0 4.1 4.5 Thailand 2.6 3.9 5.2 4.9 7.7 9.6 Morocco 6.5 5.3 6.7 6.4 5.2 4.2 Denmark 5.4 6.6 6.9 6.3 6.7 6.7 Belgium 2.8 4.4 3.6 4.6 4.5 4.2 Canada 4.9 4.5 3.9 2.6 3.5 3.3 Mozambique 4.8 4.6 5.7 4.0 3.4 4.0 Indonesia 2.4 3.1 2.6 2.8 3.3 2.8 Portugal 1.8 1.7 1.8 2.7 3.2 3.8 Others 13.6 11.6 10.1 10.6 10.8 9.8 Honduras 5.3 6.9 7.5 4.1 4.5 3.4 Total 46.6 46.6 44.0 40.6 44.3 44.7 Others 68.6 64.3 48.7 38.2 34.8 34.6 Grand Tot. 89.9 89.2 87.5 80.2 84.9 85.9 Total 155.9 179.5 178.8 166.8 163.1 170.7 Source: GLOBEFISH AN 010141 Source: GLOBEFISH AN 010150

Ecuador gained the most from the growing shrimp Exports import into France, supplying over 24 000 tonnes to the Shrimp: Spain market last year, up 38% over 2009. India was second 2005 2006 2007 2008 2009 2010 but its supply declined slightly in 2010. Viet Nam and (1 000 tonnes) Bangladesh signiﬁ cantly increased their exports by 34% Italy 5.3 8.1 11.3 8.3 10.7 12.4 and 41% respectively. Shrimp imports into France totaled 114 600 tonnes last year, up 5.4% during the reporting Porturgal 5.7 6.4 8.1 7.8 8.4 9.6 period. France 3.1 2.9 7.9 3.4 6.9 5.8 Greece 0.3 0.6 0.8 0.8 1.1 1.1 Italy, another major market in Europe, imported 73 Others 1.5 2.6 3.8 2.9 3.1 2.0 800 tonnes, with supplies increased from major exporting Total 15.9 20.6 32.0 23.2 30.2 30.8 countries except Ecuador. Imports from Argentina, Spain, Source: GLOBEFISH Denmark and the Netherlands were up.

8 Globeﬁ sh Highlights April 2011 SHRIMP

Imports Imports Shrimp: France Shrimp: Germany 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 (1 000 tonnes) (1 000 tonnes) Shell-on coldwater Thailand 3.5 4.0 8.9 9.3 11.5 12.3 Netherlands 2.8 2.6 2.6 2.6 2.4 2.6 Viet Nam 3.3 4.0 5.7 8.1 9.8 11.5 Denmark 2.2 2.3 1.9 1.5 1.7 1.3 Bangladesh 2.7 3.0 3.1 3.5 6.5 6.7 Others 1.5 1.3 1.1 1.3 2.5 3.0 Netherlands 3.6 4.1 5.7 3.9 4.2 6.1 Total 6.5 6.2 5.6 5.4 6.6 6.9 India 4.2 5.3 6.4 5.7 5.5 5.1 Shell-on warmwater Belgium 2.5 2.8 2.6 2.0 3.5 4.0 Ecuador 9.1 12.3 15.8 19.5 17.6 24.2 Denmark 2.1 1.5 2.6 2.7 2.3 2.8 India 4.8 7.6 7.9 8.8 11.5 10.5 UK 3.0 3.1 2.5 1.6 2.1 2.7 Madagascar 10.3 9.6 9.4 9.3 8.6 7.5 Others 10.2 12.1 11.3 11.6 11.4 11.0 Thailand na na na na na 6.6 Total 35.1 39.9 48.8 48.4 56.8 62.2 Vietnam 3.5 3.7 2.8 3.5 3.5 4.7 Source: GLOBEFISH AN 010146 Spain na na na na na 4.5 Venezuela 0.6 1.7 3.6 3.7 3.9 4.5 Bangladesh 1.0 1.1 1.4 3.1 3.0 4.1 Colombia 2.2 2.4 3.7 4.6 5.7 4.1 Imports Indonesia 6.7 5.7 4.3 4.2 3.6 3.2 Others 42.9 41.1 39.3 30.6 31.2 25.3 Shrimp: Denmark 2005 2006 2007 2008 2009 2010 Total 81.1 85.2 88.2 87.3 88.6 99.2 (1 000 tonnes) Cooked & peeled Greenland 81.4 84.0 78.1 77.1 71.5 70.6 Thailand 1.4 1.5 2.3 2.0 3.5 4.0 Canada 31.7 37.4 43.2 26.8 17.3 16.8 Netherlands 2.6 2.7 2.5 2.6 2.6 2.8 Iceland na na na na na 2.4 India 0.4 0.8 1.3 1.3 1.6 1.9 Viet Nam 0.4 0.8 0.9 1.7 2.1 2.1 Others 9.1 8.6 7.6 6.7 5.8 6.0 Faroe Islands 2.5 2.3 0.7 2.1 2.4 1.9 Total 13.5 13.6 13.7 12.6 13.5 14.7 Thailand na na na na na 1.9 Grand Tot 101.1 105.0 107.5 105.3 108.7 114.6 Bangladesh 0.9 1.2 1.7 1.3 1.5 1.6 Source: GLOBEFISH Others 19.1 16.7 18.3 16.9 12.0 7.7 Total 136.0 142.2 143.0 125.8 106.8 105.0 Imports Source: GLOBEFISH Shrimp: Italy 2005 2006 2007 2008 2009 2010 (1 000 tonnes) Ecuador 14.5 18.1 19.0 20.4 21.8 21.4 Exports Argentina 1.2 6.8 10.2 8.1 8.2 11.6 Shrimp: Denmark Spain 4.0 5.3 6.7 3.8 5.9 6.7 2005 2006 2007 2008 2009 2010 Denmark 6.9 7.3 7.4 6.5 4.7 5.0 (1 000 tonnes) Netherlands 3.6 3.5 3.2 3.0 3.8 4.9 Sweden 15.0 18.5 19.3 18.6 19.0 19.4 Others 32.7 31.9 29.0 26.9 25.6 24.2 Russia 28.7 27.3 38.0 30.3 19.8 14.1 Total 62.9 72.9 75.5 68.7 70.0 73.8 UK 12.6 14.8 14.4 12.8 13.2 12.8 Source: GLOBEFISH AN 010148 China 14.4 18.3 9.5 10.9 14.2 12.6 Norway 9.4 7.2 9.0 8.5 8.2 9.1 Germany 6.7 7.4 8.7 8.6 7.5 6.4 Asian countries did well last year in the German Netherlands 9.0 7.5 7.8 6.6 5.0 5.6 market led by Thailand. Thai exports increased by 7% Italy 8.4 9.6 9.0 8.7 5.8 5.4 followed by Viet Nam (+17.3%) and Bangladesh (3%). Others 48.8 52.3 49.6 49.4 46.4 48.4 Overall shrimp imports into Germany increased 9.5% in Total 137.9 144.3 146.0 135.8 120.1 114.4 2010 amounting to 62 200 tonnes. Source: GLOBEFISH

Globeﬁ sh Highlights April 2011 9 SHRIMP

Meanwhile shrimp imports and exports in the shrimp import market in East Asia in 2010, with supplies Danish market posted negative growth in both directions increasing from 42 800 tonnes in 2009 to 57 500 tonnes last year. Shrimp imports, mainly from Greenland and in 2010. Canada, declined slightly with lower supplies from these two sources. There was, however, indication that supplies In another development, reports indicate that the from Asian countries, even though relatively small in Indonesian government has extended the ban on the quantity, posted positive growth. import of vannamei shrimp for health and disease related reasons. The ban will be extended at least up to the end Similarly, Danish shrimp exports also declined by of the fi rst semester of 2011. According to the Maritime 4.7%, totaling 114 400 tonnes in 2010. Exports from Affairs and Fisheries Ministry, the ban is based on the Denmark to major markets such as Sweden, Russia, the scientifi c fi ndings of the World Organization for Animal UK and China were lower. Health (OIE), which pointed out that the shrimp carried 13 viruses harmful for the health of humans and other Asia shrimp species.

Most of the East Asian markets showed strong growth Outlook in demand in 2010, supplied by domestic and regional sources. The 240 000 tonnes of shrimp imported into the In Japan, the negative effects of the earthquake and Republic of Korea, China, Hong Kong Special Administrative subsequent tsunami are already being felt with retail sales Region, Malaysia, Thailand and Singapore in 2010, was lower compared with normal years. Overall consumption 15% higher than 2009. More domestic supplies in China, during April/May will be much lower this year against the Malaysia and Thailand were also marketed locally at good planned sales volume. Japanese importers are not in a prices. hurry to replenish stocks. Extremely limited demand from the distribution chain, particularly in Tokyo, will continue China’s shrimp imports bounced back in 2010 to 57 to inﬂ uence Japanese importers’ future buying pattern. 500 tonnes compared with 42 800 tonnes in 2009. Frozen The higher import trend in January 2011 compared with shrimp dominated the imports with a total amount of 52 the last four years is unlikely to be sustained during the 623 tonnes. Greenland and Canada were the suppliers of rest of the year. coldwater shrimp. From Asia, Thailand, Malaysia, India and Myanmar were the main suppliers. Import growth In the USA, demand for shrimp is likely to increase rate was higher for live and fresh shrimp compared with as summer approaches, but price direction may be frozen products. downwards, as current prices are high and consumer resistance will come into play if higher prices are passed However, the Republic of Korea was the leading on.

SHRIMP VOLUME IMPORTED BY EU-27, USA AND JAPAN - JANUARY-DECEMBER (IN TONNES) Comparison to 2009, in %

Tonnes 1 538 817 1 592 045 1 715 621 1 687 233 1 641 664 1 636 878 1 676 060

1 750 000

JAPAN JAPAN +5% 1 500 000 JAPAN JAPAN JAPAN JAPAN JAPAN EU 25 (intra) EU 25 (intra) 1 250 000 EU 25 (intra) EU 25 (intra) EU 25 (intra) EU 25 (intra) EU 25 (intra) +2% 1 000 000 EU 25 (extra) EU 25 (extra) EU 25 (extra) EU 25 (extra) EU 25 (extra) EU 25 (extra) 750 000 EU 25 (extra)

500 000

USA 250 000 USA USA USA USA USA USA +2%

2004 2005 2006 2007 2008 2009 2010

10 Globeﬁ sh Highlights April 2011 TUNA

Effect of Japan’s tsunami on tuna market uncertain

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

Tuna supply worldwide remained low during tuna of West African origin has fallen. This situation is the fi rst quarter of the year with fl uctuating signifi cantly affecting the tuna market in Spain. prices. Price Captures in the Western Tropical Pacifi c were lower in the January-April period. Usually this would allow In April, the frozen skipjack price softened slightly boat owners to increase prices, but at present they may for delivery to Thai canners at USD 1 500/tonne after be forced to accept lower prices for lower catches. Boat reaching USD 1 600 a month ago. However, the situation owners are also affected by sharp fuel price increases in Japan is causing concern in the canning industry, forcing a reduction in fi shing effort at the moment. although the effect of the tsunami on fi shing is still unclear. Albacore fi shing off the northeast coast is the While there has been some increase in landings main ground for pole and line fi shing in Japan and this in the Eastern Tropical Pacifi c around Peru, these runs has undoubtedly been badly affected. By mid March, the usually do not last long. Good catches in the ETP pulled price of frozen albacore had risen to USD 2 800/tonne for skipjack prices down in early March, but a shortage of delivery to Thailand. cold storage capacity in Ecuador delayed offl oading of raw material. Canneries in Ecuador were unable to benefi t from the drop as they were not able to purchase suffi cient quantities to take advantage of reduced prices. Spanish and French seiner fl eets are operating around the TUNA NEWS Seychelles, but Indian Ocean catches have been poor. FARMED BLUEFIN The internal turmoil in Côte d’Ivoire has affected raw material landings at local ports and the demand for Libya has been the main source of Atlantic bluefi n tuna for the Mediterranean tuna fattening farms in recent years. As a result of the present political situation, supply from the Libyan bluefi n Coldstorage holdings tuna industry could be impacted. However, the Tuna: Japan market is not expected to be affected in the immediate future as the Mediterranean catch 120 quota for farming is low at present and the 1000 tonnes season only begins in mid March. If the situation 100 Others remains unclear, the quota is likely to be caught elsewhere in the Mediterranean 80

60 Skipjack

40 Albacore Japan Bigeye 20 General trend Yellowfin 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 Spring demand for fresh and frozen tuna in Kanto Source: INFOFISH Trade News, GLOBEFISH AN 015000 (greater Tokyo) and other parts of Japan is much lower

Globeﬁ sh Highlights April 2011 11 TUNA

Landings Imports Tuna*: Japan Fresh/chilled tuna: Japan 2004 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 (1 000 tonnes) (1 000 tonnes) Bluefi n Yellowfi n 21.4 19.0 16.9 15.5 15.5 16.1 fresh 4.9 4.1 2.9 3.4 2.7 2.2 1.0 Bigeye 16.8 15.8 14.5 15.0 15.2 11.6 frozen 1.8 1.4 1.6 0.9 1.0 0.7 1.3 Bluefi n 9.9 7.4 5.1 4.4 5.8 4.0 Bigeye S. bluefi n 2.5 1.8 1.2 1.2 3.4 2.1 fresh 11.7 9.4 14.8 11.9 9.3 7.9 5.6 Albacore 0.2 0.3 0.3 0.3 0.3 0.3 frozen 23.1 22.3 20.8 20.0 20.4 17.9 17.5 Skipjack 0.0 0.0 0.1 0.0 0.0 0.0 Yellowfi n Total 50.9 44.3 38.1 36.3 40.2 34.1 fresh 7.6 8.7 8.6 6.4 10.2 7.6 8.9 Source: National Statistics frozen 29.6 30.6 32.2 9.8 9.0 8.1 6.4 Albacore fresh 32.9 20.2 26.8 48.7 31.3 40.0 30.6 frozen 21.5 15.6 9.6 14.9 9.5 16.7 16.9 Imports Skipjack Frozen tuna: Japan fresh 58.9 95.5 79.0 72.9 76.0 43.3 68.2 2005 2006 2007 2008 2009 2010 frozen 133.3 246.5 220.2 224.2 208.0 200.9 212.6 (1 000 tonnes) Total 325.2 454.2 416.5 413.2 377.4 345.2 369.4 Yellowfi n 123.5 90.3 58.7 47.4 44.1 50.1 Source: MAFF, Japan; * including distant water catches Bigeye 101.9 86.3 86.8 77.8 77.1 73.9 Skipjack 52 50.5 31.3 33.5 53.3 59.6 S. bluefi n 7.2 7.9 8.4 7.4 6.9 6.7 Albacore 6.1 6.2 6.0 8.3 8.5 23.2 N. Bluefi n 4.2 5.1 6.3 4.2 4.0 1.8 than in previous years. The annual cherry blossom Total 295 246.3 197.5 178.3 193.9 215.3 festival Hanami at the beginning of April will be much Source: INFOFISH more muted this year. Business in the catering trade plummeted following cancellations from foreign tour groups. Many high-end restaurant operators reported a 90% rate of cancellation for bookings during the festival celebrations. tuna. Demand for dried katsuobushi products is better than for raw tuna at the moment. One Bloomberg report Supply indicated a shift in consumer demand from fi sh to cheap meat, to avoid contaminated sea water. Japan’s tuna landings, particularly from the coastal fi sheries, increased for yellowfi n, albacore and skipjack Annual tuna imports in 2010 in 2010. Affordable prices, compared with expensive bluefi n and bigeye tuna, make these species popular in Following the trend of previous years, Japanese the retail trade. This year coastal supplies will certainly imports of high value bluefi n and bigeye tuna declined be lower than previous years. Although higher imports in 2010 but the market bought more yellowfi n (+10%), are forecast, the nation-wide austerity measures and skipjack (+16%) and albacore (+168%) compared with deteriorated consumer sentiment could make for a 2009. Consumer demand has gradually moved towards negative market direction. cheaper tuna and tuna products because of the persistent downturn in the restaurant business, lower supplies The usual spring rush has not taken place in the worldwide and higher market prices. fresh and frozen sashimi market. Auction volume at the Tsukiji market is down as much as 70% compared with last During 2004-2010, supplies of air-fl own tuna shrank year’s. Imports of air-fl own tuna have been much lower in by nearly 40%; frozen tuna imports was also 34% lower April. Electricity rationing and lack of fuel have reduced during this period. On the contrary, frozen red-meat tuna the operating hours in the catering trade. Household loin imports showed an increase of more than 50%. These consumption of sashimi tuna has declined, affecting sales are mostly sold in supermarkets. To accommodate lower at supermarkets. Many consumers are concerned about household budgets, supermarkets also offer smaller the health risks of buying pre-packed sashimi and sushi packs/trays of sashimi tuna to consumers.

12 Globeﬁ sh Highlights April 2011 TUNA

Total tuna imports including loins and fi llets into Imports the Japanese the market were 278 023 tonnes in 2010 Tuna pouches: USA - higher than 2008 (246 108 tonnes) and 2009 (264 090 2005 2006 2007 2008 2009 2010 tonnes). Other imported tuna products not included in (1 000 tonnes) this total, were bushi or dried tuna (3 832 tonnes) and Thailand 19.7 18.6 16.5 19.3 16.5 21.6 canned tuna (43 551 tonnes). Ecuador 13.6 15.6 10.8 13.5 11 13.3 Others 2.7 3.8 3.8 5.9 3.6 6.2 USA Total 36.0 38.0 31.1 38.7 31.1 41.1 Supported by improved household demand, US Source: NFMS: GLOBEFISH AN 11038 imports of non-canned tuna increased 3.4% in 2010 reaching 48 823 tonnes, consisting of fresh (air-fl own) and frozen dressed fi sh and, frozen loins/fi llets, against 45 081 tonnes imported in 2009. Frozen fi llets and loins Imports had a 50% share in these imports at 23 152 tonnes. Canned tuna (excl. pouches): USA 2005 2006 2007 2008 2009 2010 Whole/dressed frozen tuna imports, meant for (1 000 tonnes) sashimi and non-canned tuna use were 43% lower Thailand 77.4 74.3 66.1 64.7 78.8 96.8 compared with last year’s. However, this was only 4.5% of the total non-canned tuna supply from imported sources. Philippines 43.8 35.2 26.6 25.9 25.1 22.4 Foreign supplies of fresh tuna (air-fl own), dominated by Indonesia 18.0 16.4 14.1 13.5 13.1 13.7 yellowfi n, remained stable with a marginal rise in supply. Ecuador 15.5 4.4 1.9 0.7 1.6 3.4 In comparison with 2009, the average import price Others 14.3 22.2 25.3 27.8 23.4 23.3 increased by 10-15% for almost all tuna products in the Total 169.0 152.5 134.0 132.6 142.0 159.6 market. Source: NFMS: GLOBEFISH AN 11032 Canned tuna

Signifi cant developments took place in the global Imports canned tuna market during the fi rst quarter of 2011. Fresh Tuna : USA Three big US companies have started a major campaign to revive the domestic canned tuna market. In the 2005 2006 2007 2008 2009 2010 UK, major retailers and canned tuna packers have (1 000 tonnes) committed to selling canned tuna produced from ‘pole Albacore 0.7 0.9 0.9 0.7 0.7 0.5 and line’ caught raw material. The recent high tuna raw Yellowfi n 17.1 17.8 18.0 15.9 14.2 16.0 material price coupled with rising costs of fuel, tinplate Bigeye 5.0 4.9 5.6 5.5 5.5 4.0 and vegetable oil will be felt by the global canned tuna Bluefi n 1.7 1.1 1.1 0.4 0.4 0.5 industry this year. The aftermath of the devastating Skipjack 0.0 0.1 0.0 0.0 0.0 0.0 earthquake and tsunami in Japan could also impact the canned tuna industry. Others 1.0 0.4 0.1 0.2 0.0 0.0 Total 25.5 25.2 25.7 22.7 20.8 21.3 Revival in the market Source: ITN To reverse negative trends in the US canned tuna market, three of the US’ largest canned tuna suppliers, Bumble Bee, Chicken of the Sea and StarKist have joined Imports forces with the Thai Food Processors Association (TFPA) Tuna loins: USA in launching a multi-million dollar marketing campaign 2005 2006 2007 2008 2009 2010 from 17 January 2011. Called “Tuna The Wonderfi sh”, the campaign includes a series of nation-wide television and (1 000 tonnes) printed advertisements, internet coverage, and a public Thailand 8.7 12.5 7.8 14.9 10.1 26.8 relations initiative. Fiji 14.5 12.4 11.0 10.7 12.7 14.9 Trin & Tob 13.4 12.3 10.5 9.7 9.4 7.6 US canned tuna consumption has been on the decline Ecuador 6.5 4.0 1.2 0.9 0.1 0.1 for several years dropping to 2.5 lb/capita in 2009 from Others 3.6 9.9 13.3 9.0 16.4 16.4 a high of 3.4 lb/capita recorded in 2003. Industry players said that the timing of the campaign is appropriate given Total 46.7 51.1 43.8 45.2 48.7 64.8 the current economic situation in the US. With increasing Source: NFMS: GLOBEFISH AN 11056

Globeﬁ sh Highlights April 2011 13 TUNA

C&F prices prices. Thus canned tuna imports in 2010 showed lower Canned tuna*: USA, EUROPE growth in value and higher growth in volume. 35.00 Last year canned tuna imports into the USA posted strong growth. Imports of all categories increased except 30.00 for light meat tuna in oil, which declined 7% in volume but

25.00 was up 4.9% in value. The strongest growth was recorded for canned albacore. Imports of the most popular product, 20.00 light meat tuna in brine, also increased.

15.00 Thailand remained the largest supplier. Overall imports from ASEAN countries also increased. The strong 10.00

5.00 EUROPE USA Imports 0.00 04 05 06 07 08 09 10 04 05 06 07 08 09 10 11 ------Canned tuna: Germany Jul Jul Jul Jul Jul Jul Jul Jan Jan Jan Jan Jan Jan Jan Jan * 48x6.5 oz Europe, 48x6 oz USA, chunk, origin Thailand 2005 2006 2007 2008 2009 2010 Source: GLOBEFISH AN 11101, 11102 (1 000 tonnes) Philippines 20.3 23.4 24.1 18.5 19.9 17.3 Papua NG 9.6 4.4 5.7 6.1 6.8 11.2 Ecuador 14.6 15.8 21.2 28.6 14.5 8.9 Indonesia 7.0 6.0 8.1 6.8 8.2 6.7 food and oil prices, consumers are opting for value for Netherlands * * * * 4.3 6.3 money, eating more at home and looking for simple meal solutions. Canned tuna ﬁ ts in well with consumer Thailand 11.5 18.1 11.9 8.2 4.3 4.2 expectations. Vietnam * * * * 4.0 3.3 Seychelles 6.6 6.7 2.1 4.4 1.2 3.2 With increasing production costs, however, heavily France 5.7 2.2 1.1 0.9 0.8 0.3 discounted price reductions by retailers are unlikely this Others 8.5 10.2 10.9 7.0 3.6 4.7 year. According to industry sources, the growth in the US Total 83.8 86.8 85.1 80.6 67.5 66.1 canned tuna market in 2010 was driven mainly by growing sales through retail stores in promotions and discounted Source: GLOBEFISH

Imports Imports Canned tuna: France Canned tuna: UK 2005 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 (1 000 tonnes) (1 000 tonnes) Spain 21.8 22.0 19.9 14.2 18.2 22.3 Mauritius 25.9 27.8 27.2 22.9 28.8 C. d’Ivoire 21.6 23.1 27.0 22.0 19.8 18.6 Seychelles 32.0 23.9 16.7 19.7 14.5 Seychelles 11.3 14.7 13.6 11.7 12.8 13.3 Ghana 17.0 18.4 22.7 19.3 18.6 Ecuador 7.2 * 10.1 9.8 12.4 12.0 Thailand 16.9 14.9 14.6 16.8 13.6 Ghana 6.5 * 5.2 5.3 5.8 7.7 Philippines 10.0 13.0 19.2 16.4 14.0 Thalland * * * 5.1 9.6 7.6 Ecuador 6.8 7.8 18.9 7.4 4.1 Madagascar 14.7 15.4 10.9 5.6 8.2 5.5 France 1.7 3.0 4.0 2.7 2.3 Philippines * * * 2.6 5.6 2.6 Spain 1.7 1.4 3.3 2.2 3.7 Mauritius * * * 1.5 2.1 1.4 Maldives 1.9 2.2 1.0 1.0 1.2 Senegal 4.3 1.1 1.7 1.3 1.8 0.8 Indonesia 0.9 1.7 1.4 0.7 1.5 Italy 8.0 8.9 3.5 2.3 0.3 0.2 Germany 1.7 2.7 2.0 1.1 1.8 Others 15.2 35.2 14.4 19.5 4.9 4.1 Others 12.1 13.7 13.1 5.9 4.1 Total 110.6 120.4 106.3 100.9 101.5 96.1 Total 128.6 130.5 144.0 116.1 108.2 Source: GLOBEFISH AN 11030 Source: GLOBEFISH AN 11050

14 Globefi sh Highlights April 2011 TUNA import growth, however, does not necessary indicate a from pole-and-line catch by August this year. Earlier this rise in consumer demand. Instead, it was mainly to fi ll year, Sainsbury’s announced that they will source all tuna the gap left by declining domestic production (US packs), used as an ingredient in its readymeals, sandwiches, and particularly from canneries in American Samoa. several other products only from fi sheries using the pole and line method. Similarly, Tesco has also pledged that EU all its own brand canned tuna will be caught by the pole- and¬-line method by the end of 2012. Recently Tesco At the beginning of 2011, the EU canned tuna market was rather quiet. Many buyers have not been active in the market but have closely watched the fast changing scenario in the global tuna market. Offers from packers have also been limited because of the shortage Imports and price volatility of skipjack that ranged between USD Tuna loins: Italy 1 500-1 600/tonne in March, cfr Bangkok. At the same 2005 2006 2007 2008 2009 2010 time canned tuna prices remained fi rm and offer prices received by German importers from ACP countries were (1 000 tonnes) around EUR 36.5 (USD 50.69) per carton (48x6.5 oz) for Ecuador 12.0 14.6 11.9 11.7 13.2 9.9 Thailand 1.3 3.2 4.4 2.3 8.7 5.2 Kenya 8.1 6.7 7.9 4.8 1.5 2.3 Colombia 14.3 9.7 7.0 5.4 2.0 1.4 Imports Others 4.9 8.5 8.0 12.6 11.9 14.3 Canned tuna: Italy Total 40.6 43.0 39.2 36.8 37.3 33.1 2005 2006 2007 2008 2009 2010 Source: GLOBEFISH AN 11050 (1 000 tonnes) Spain 37 36.7 39.7 39.6 38.1 41.5 Cote d’Ivoire 8.9 9.1 10.0 9.1 10.6 7.4 Colombia 7.0 5.0 6.6 10.5 8.9 8.0 Seychelles 7.0 6.9 3.9 5.5 6.4 7.1 Imports France 4.6 3.4 5.3 5.0 4.9 0.6 Tuna loins: Spain Portugal 2.8 2.6 2.4 2.1 1.8 1.8 2005 2006 2007 2008 2009 2010 Others 4.2 5.8 9.0 12.0 12.8 13.8 (1 000 tonnes) Total 71.5 69.5 76.9 83.8 83.5 80.2 Ecuador 8.8 16.0 13.2 22.4 28.7 25.7 Source: GLOBEFISH Guatemala 6.6 2.2 0.0 1.5 5.7 8.7 El Salvador 13.2 10.9 14.8 12.4 13.1 7.6 Mauritius * * * * * 7.5 Thailand 1.9 0.0 2.9 3.5 6.6 5.6 canned solid tuna in sunfl ower oil, while chunk tuna was China * * * * * 2.8 quoted slightly lower at EUR 35.5 (USD 49.30) cfr Hamburg Portugal 1.2 1.4 1.5 1.0 0.9 0.4 (0% duty). It is possible that the price of canned tuna Colombia 0.1 0.3 0.4 0.7 0.6 0.4 will increase in the near future as a result of increasing Others 4.0 6.7 5.7 4.7 13.3 7.4 costs. Total 35.8 37.5 38.5 46.2 68.9 66.1 Source: GLOBEFISH The market for cooked and cleaned frozen tuna loins remains strong, refl ecting the high prices of raw material during February.

Sustainability issues and controversy over the increased the proportion of pole-and-line caught tuna to Interim Economic Partnership Agreement (EPA) between 25% of their own brand canned tuna. However, it remains the EU and Papua New Guinea have created uncertainty doubtful as to whether or not pole and line tuna ﬁ sheries in the market. would be able to meet the increased demand, as they only contribute a small percentage of overall tuna catches. Recently, Princes, owned by Japanese giant Mitsubishi, and Asda, owned by Walmart, have committed Meanwhile, the Interim EPA that gives duty free to sourcing canned tuna only from pole and line ﬁ sheries status for canned tuna imported from Papua New Guinea, and FAD-free tuna by 2014. John West Foods has also regardless of the origin of raw materials, has prompted committed to sourcing 20% of its canned tuna products protest from the EU tuna canning industry, particularly

Globeﬁ sh Highlights April 2011 15 TUNA

Imports Exports Canned, Prepared/Preserved tuna: Japan Canned tuna: Thailand 2008 2009 2010 2005 2006 2007 2008 2009 2010 (1000 tonnes) JPY JPY JPY tonnes tonnes tonnes Mill. Mill. Mill. USA 111.8 103.2 87.7 94.9 112.7 117.3 Canned yellowﬁ n tuna Egypt 25.0 34.1 25.1 34.6 39.8 51.5 Thailand 16 234 8 781 15 025 6 718 14 481 5 975 Australia 33.0 32.6 33.3 39.7 32.4 41.0 Philippines 3 231 1 551 3 503 1 360 4 628 1 701 Canada 28.8 29.7 26.4 28.1 30.8 28.8 Japan 28.6 26.3 25.7 28.3 24.3 23.5 Indonesia 4 130 2 334 4 108 2 004 5 086 2 328 Libya 25.2 27.6 28.8 33.8 33.7 20.5 Vietnam 510 202 372 144 309 94 Saudi Arabia 15.1 20.1 21.2 19.5 17.0 18.7 Total* 24 165 12 920 23 082 10 280 24 568 10 146 UK 16.6 19.7 13.4 15.8 17.0 13.9 Canned skipjack/bonito South Africa 6.2 9.3 9.8 8.4 9.8 11.3 Philippines 498 221 287 128 235 84 UAE 10.0 6.0 7.4 Indonesia 3 109 1 963 3 432 1 736 3 082 1 483 Syrian AR * * * 4.6 13.0 9.2 Thailand 6 098 3 288 7 982 356 8 831 3 544 Chile * * * 4.3 4.6 7.6 Netherlands * * * 4.0 5.1 7.4 Total* 9 713 5 476 11 796 5 448 12 211 5 138 France * * * 6.2 9.4 7.4 Others Finland * * * * * 6.7 Thailand 5 676 3 118 5 416 2 149 3 386 1 294 Yemen * * * * * 6.3 Philippines 865 472 1 097 436 1 630 698 Papua N.Guinea * * * 4.3 3.6 5.5 Indonesia 552 340 427 189 385 148 Tunisia * * * * * 5.5 Vietnam 2 511 1 347 1 887 883 1 155 541 Germany 17.1 18.6 11.7 6.4 3.6 5.4 Poland * * * 4.4 4.4 4.9 Total* 9 868 5 437 9 080 3 808 6 772 2 801 Algeria * * * * 5.0 6.2 Gr.Total 43 746 23 833 43 958 19 536 43 551 18 085 Jordan * * * * * 4.9 Source: Japan Customs / INFOFISH New Zealand * * * 4.8 4.4 4.9 * (inclunding others) Lebanon * * * * * 4.6 Italy 6.3 3.6 5.4 11.2 NA 4.4 Others 141.2 234.6 179.1 142.8 108.8 110.7 Total 454.9 559.4 467.6 506.1 485.4 535.5 from Spain. They are concerned that Papua New Guinea Source: GLOBEFISH AN 10080 will become a hub for processing canned tuna from giant Asian packers such as the Philippines, Thailand and China that will ﬂ ood EU markets and negatively impact canneries in Spain. However, looking at last year‘s EU trade data, this is not likely to happen in the near future. C&F Prices In 2010, the EU imported 18 288 tonnes of canned and Frozen Skipjack: Thailand and Africa prepared/preserved tuna (HS160414) from Papua New Guinea, 12.4% more than the previous year. However, this 2500 was only around 4% of the total 442 545 tonnes imported USD/tonne into the EU from third countries. 2000 Thailand

The EU imports of canned, prepared and preserved 1500 tuna posted negative growth of 5% to 442 545 tonnes last Africa year from 465 832 tonnes in 2009, with fewer shipments 1000 coming from Asian countries. Imports from Thailand, the Philippines, Indonesia and Viet Nam showed declines of 8.7%, 21.3%, 20.3% and 15.9% in quantity respectively. 500 Among the major suppliers, only Mauritius posted signiﬁ cant growth, up 21.8% last year to 54 387 tonnes. 0 Imports from Ecuador, the largest supplier of canned Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 and prepared/preserved tuna to the EU, also showed a 4.5-7 lbs: decline of 7.3% during the reporting period. Source: GLOBEFISH AN 11112

16 Globeﬁ sh Highlights April 2011 TUNA

Japanese demand for canned tuna is expected Tuna prices to increase in 2011 Loins: Italy

7.00 Following the radiation food scare and power EUR/kg Yellowfin shortages, demand for canned seafood, including canned 6.00 tuna, is expected to increase as consumers have difﬁ culty keeping fresh and frozen products at home. Canned tuna 5.00 shipments from Asian packers are expected to increase 4.00 soon. 3.00 In 2010, Japan imported 43 551 tonnes of canned Skipjack 2.00 and prepared/preserved tuna worth JPY 18 085 million

(USD 220 million). Thailand, the Philippines and Indonesia 1.00 were the main suppliers taking almost a 96% share in 0.00 total canned tuna imports. Last year, Thailand and the Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Philippines exported 26 698 tonnes and 6 493 tonnes to Japan respectively. Meanwhile Indonesia exported 8 553 Source: GLOBEFISH AN 11114 tonnes, up 7.4% during the review period.

Market expansion continues for Thai products Outlook

Thai canned tuna exports increased in 2010, despite For the fi rst time in 62 years, the famous Ueno Park declining sales to some major markets. While exports to Cherry Blossom festival in Tokyo has been cancelled and the largest market, the USA, increased, supplies to other celebrations in Osaka and Nagoya, with focus on fund traditional markets namely Canada, Japan, Libya and raising for the victims of tsunami. Therefore, seasonal the UK declined. There were higher exports to Australia, demand for sashimi tuna is expected to be much lower Germany, Egypt and Saudi Arabia. New and non-traditional during April and May. markets that imported more canned tuna from Thailand last year were Poland, Argentina and Chile. In the USA, the combined efforts of a number of companies to promote canned tuna should lead to growth in this market, p a r t i c u l a r l y Tuna production by species (2008) as economic Pacific bluefin recovery is still tuna, 17 118, Others, progressing very 0% 683 815, slowly. Thailand 14% will hope to benefi t from this campaign Atlantic bluefin and to further tuna, 26 349, increase exports 1% to the US as well as to new and non-traditional Albacore, markets identifi ed 198 654, Skipjack tuna last year. 4% 2 421 679 E u r o p e a n 50% Bigeye tuna, countries may 403 771, Yellowfin tuna have to face an increase in the 8% 1 141 089 23% price of canned tuna as increasing Source: FAO production costs are passed on to consumers.

Globeﬁ sh Highlights April 2011 17 GROUNDFISH

Groundﬁ sh needs to focus more on value added products

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

In 2010, total groundfi sh production around the 2010 period, China commanded 67% of the market, with world was estimated at 6.2 million tonnes round weight, US involvement reduced to 22% and Russia´s to only 11% while approximately 30% of the groundfi sh came from of the market. catch areas close to the EU (1.9 million tonnes). Of this, 50% is consumed in Europe. C&F prices There is also concern about how the recent tsunami in Japan will affect the groundfi sh sector, as Pacifi c cod Groundfi sh blocks: USA is landed in northern Japan, including the Tohoku region 3.0 north of Tokyo. USD/lb Cod 2.5 Another important consideration is the role China will play as whitefi sh supplier to EU. In 2010 740 000 tonnes 2.0 round weight came from China. According to Kontali, Alaska pollack between 2002 and 2003, Chinese Alaska pollock fi llet Hake exports represented 40% of the market, with 35% coming 1.5 from the USA and 25% from Russia, while during the 2009-

1.0

Imports 0.5 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Cod-like frozen groundfi sh: USA Source: GLOBEFISH AN 010805, 010806, 010834 2005 2006 2007 2008 2009 2010 (1 000 tonnes) Fillets More value added products China 89.8 91.3 74.5 71.0 74.8 74.6 Iceland 16.5 16 11.1 6.6 6.5 9.2 With more whitefi sh supplies available during 2011, Canada 6.7 9.7 5.5 2.3 2.4 5.3 companies will need to do more to attract the consumer’s attention by focussing on more value-added and ready- Norway 1.2 2.1 0.2 0.8 0.8 0.8 to-eat products, especially cod and haddock. Recently, Others 8.9 9.0 6.4 5.9 4.7 10.8 Pescanova launched a new range of frozen fi sh, which Total 123.1 128.1 97.7 86.6 89.2 100.7 is gluten-free, on to the market, one of the fi rst lines of Blocks/Slabs fi sh products in Europe aimed at consumers with gluten China 32.2 25.4 41.7 35.2 38.9 35.9 intolerance and also a line of surimi noodles for the Russian Fed. 1.1 0.5 0.8 1.3 2.9 1.2 children’s segment. Findus is introducing similar products in France. During the second quarter they will launch a Norway 1.4 0.5 0.1 0.2 0.6 0.8 “family format” range of ready-prepared whitefi sh meals. Argentina 2.9 2.9 2.0 2.3 1.4 0.7 According to Findus, innovation and a buoyant frozen fi sh Iceland 1.9 0.6 0.8 0.9 1.0 0.7 sector will be signifi cant in 2011. Canada 0.6 0.5 2.1 0.7 0.5 0.4 Others 2.6 2.0 1.7 1.4 1.4 1.8 In Namibia, a new hake-processing plant has begun Total 42.7 32.4 49.2 42.0 46.7 41.5 operating in Walvis Bay. Omankete Seafood Processors is a Gr. Total 165.8 160.5 146.9 128.6 135.9 142.2 consortium of nine fi shing entities that has formed a joint venture with Seawork Fish Processors in a EUR 3 million Source: NMFS project to produce value-added hake products, including

18 Globeﬁ sh Highlights April 2011 GROUNDFISH

fi llets and portions for markets in Europe, Australia and Russian Federation and the USA decreasing. the USA. The company expects to produce about 100 tonnes of fi nished products a month initially and to reach As far as the German market is concerned, frozen 250 tonnes a month over the next 18 months. cod fi llets showed a signifi cant rise in imports in 2010, from 11 400 tonnes to 21 100 tonnes compared with 2009 The lack of confi dence in the economic recovery (up 85%), with China and Poland as important suppliers. has led consumers to buy more whitefi sh products for cooking at home as people are not eating out as often as The opposite situation can be seen in Spain. In 2010 in the past. Frozen products, which can be found in single export fi gures showed that the Norwegian contribution to portions or in larger packs, provide a versatile option for Spanish cod imports fell to 13 000 tonnes. home use. Norway exported a total of 393 660 tonnes of Wild whitefi sh versus farmed fi sh groundfi sh last year, for a value of NOK 10.5 billion. This is the second best year ever recorded, with the top year Wild caught whitefi sh will not face increased being 1998. An upward trend in prices and increased competition from pangasius and tilapia this year, quotas contributed to the good results. Exports of clipfi sh as production of these species is in decline at reached a new record of 97 350 tonnes, with Brazil now present. VASEP says that exports are likely to be the biggest market for clipfi sh. Export volumes of salted reduced from 640 000 tonnes during 2010 to around fi sh and stockfi sh also increased in 2010, to 31 122 tonnes 360 000 tonnes in 2011. and 7 845 tonnes respectively.

In the case of farmed cod, a production between Looking for profi tability 15 00 tonnes and 17 000 tonnes in 2011 is expected, a drop from the 20 000 tonnes produced in 2010. However, The Norwegian Institute of Food, Fisheries and experts say farming will not be the solution for wild catch Aquaculture Research (NOFIMA) will institute a new suppliers. According to Kontali Analyse, harvest volumes research programme in 2011 to look at the reasons why could drop to 12 000 tonnes in 2012. However, the the cod industry in Norway has been under-performing Oslo–listed cod farming company, Codfarmers, reported improved fi gures for 2010, partly as a result of a recovery in the price of cod. Codfarmers production in 2010 was 6 255 tonnes, an increase of 2 237 tonnes over 2009. Imports Meanwhile, during 2009 and 2010 stocks wild Atlantic cod Frozen Alaska pollock fi llets: Germany have recovered well, a trend likely to continue in 2011. 2005 2006 2007 2008 2009 2010 It presents an opportunity to promote wild groundfi sh products as a competitive and available alternative at (1 000 tonnes) reasonable prices. China 58.1 88.0 78.5 89.7 85.9 88.1 USA 47.0 39.4 55.2 53.4 30.0 36.3 EU market Russian.F. 15.5 27.6 25.4 28.9 25.9 17.6 Others 3.0 6.1 5.3 4.9 6.4 4.5 In 2010 frozen cod imports to the UK increased by Total 123.6 161.1 164.4 176.8 148.2 146.5 7%, from 69 300 tonnes to 74 400 tonnes, with Norway Source: Statistisches Bundesamt as the second most important supplier (up 46%), after Iceland. However, import volumes still have not returned to the 100 000 tonnes or more that were imported in 2005 and 2006. Germany has also gained market share in the Imports UK with a rise from 1 100 tonnes in 2009 to 6 300 tonnes Frozen cod fi llets: Germany in 2010, an almost 600% rise. 2005 2006 2007 2008 2009 2010 According to fi gures from the Norwegian Seafood (1 000 tonnes) Export Council (NSEC), French cod sales rose in 2010, China 8.3 8.1 12.2 12.1 4.6 9.7 with prices of frozen cod fi llets soaring 18.1%. French Poland 2.1 1.4 3.8 2.2 2.3 5.2 consumption of frozen cod fi llets amounted to 8 607 Denmark 1.4 1.2 1.5 1.8 1.3 2.2 tonnes in 2010, 19.4% more than the year before. Norway 1.9 0.6 0.6 0.2 0.3 0.8 Consumption of fresh cod also increased, particularly in Russia 1.1 2.4 1.1 1.1 0.5 0.6 the fi rst half of the year, but fell back in the second half Iceland 1.0 0.5 0.3 0.2 1.0 0.6 because of tight supply. Imports of frozen Alaska pollock fi llets increased to 39 600 tonnes in the same period, 5% Others 1.4 1.8 2.7 2.1 1.5 2.0 more than in 2009. China remained the top supplier with Total 17.2 16.0 22.2 19.7 11.4 21.1 23 200 tonnes, (58% of the total), with imports from the Source: Statistisches Bundesamt

Globeﬁ sh Highlights April 2011 19 GROUNDFISH

with US observers onboard and US vessels, with Russian Imports scientists aboard, in Russian waters. Frozen Alaska pollock fi llets: France 2005 2006 2007 2008 2009 2010 In another development in March this year, WWF (1 000 tonnes) and the Russian Pollock Catchers Association have joined China 14.3 18.6 18.6 21.7 22.2 23.1 forces to improve the institutional regulation of Russian fi sheries, through a number of initiatives, including USA 12.5 10.8 10.3 7.9 6.0 5.2 a national plan to combat IUU fi shing, the creation of Russian Fed. 2.1 4.3 4.0 7.1 5.8 5.3 a Fishery Improvement Plan (FIP) for the fi shery and Germany 5.8 6.3 4.4 4.2 2.7 4.0 preparing for talks that could lead to the establishment Others 1.4 0.8 0.7 0.6 1.0 2.0 of a fund to fi nance improvements in monitoring and Total 36.1 40.8 38.0 41.5 37.7 39.6 implementation of best practices. Source: National Trade Statistics USA groundfi sh stock allocation increases in New England for 2011 Imports Frozen cod: UK At the beginning of February, NOAA approved 2005 2006 2007 2008 2009 2010 measures that will allow for the increase in catch limits for a number of groundfi sh stocks off the coast of New (1 000 tonnes) England. Lower limits were imposed in 2010 to enable Iceland 14.8 16.1 18.0 14.2 19.3 16.8 some of these stocks to recover. The stocks affected are Norway 9.0 14.0 11.4 12.0 9.3 13.6 mainly yellowtail fl ounder, witch fl ounder and winter China 16.5 23.2 21.9 21.4 13.8 13.5 fl ounder, with increases ranging from 40% to 69%. In Russian Fed. 36.9 13.0 4.1 3.9 6.5 7.5 another announcement, NOAA, as a result of negotiations Germany 1.3 1.9 4.5 3.7 1.1 6.3 with Canada, increased the overall yellowtail quota to Denmark 16.7 16.9 12.4 9.0 7.3 5.9 2.5 million pounds, 18% more than the 2010 allocations. Faroe Is. 4.9 6.5 4.4 4.9 4.6 5.0 Poland 1.3 6.5 3.6 3.8 3.9 2.2 Hake landings and markets in 2010 Others 7.1 8.2 6.0 6.0 3.4 3.6 The most abundant groundfi sh species landed in Total 108.5 106.3 86.3 79.0 69.3 74.4 Argentina in 2010 were hake (Merluccius hubbsi 277 Source: Seafi sh/national trade statistics 506 tonnes) and hoki (Macro-ronus magellanicus 81 019 tonnes. These two species were also the major groundfi sh export species. During 2010 152 427 tonnes of hake over the past few years and to try to identify measures were exported, worth USD 346.7 million, down 0.8% in that will make the sector more profi table. Although both volume but up by 1.7% in value compared with 2009. Hoki exports and prices of cod increased in 2010, export prices exports were 18 194 tonnes, worth USD 38 million. The are still nearly 10% lower than they were 10 years ago. main destination for Argentine seafood exports in 2010 The research programme will look at the economic factors was Spain, which took 90 890 tonnes worth USD 396.4 affecting the cod sector, as well as regulation governing its million. operation. One of the goals is to fi nd equitable regulation that will allow for sustainable harvesting and increase the market value of wild cod stocks. Imports Higher Russian Pollock TAC likely in 2012 Frozen hake fi llets: Germany 2005 2006 2007 2008 2009 2010 Recent scientifi c surveys undertaken by TINRO, the (1 000 tonnes) Russian Pacifi c Fisheries Research Centre confi rm that USA 3.6 4.4 6.1 6.3 7.2 4.8 most of the regional pollock stocks are in reasonable Argentina 5.8 6.9 6.1 3.5 5.1 2.3 condition and some are even growing. This will enable Peru 4.1 4.1 4.1 3.7 4.2 4.4 the 2012 pollock quota to be increased by 100 000 Namibia * * * * 2.7 2.5 tonnes, compared with the 2011 forecast. The quota for all Russian pollock stocks this year is 1 649 400 tonnes. Sudafrica * * * * 1.5 0.4 Chile. 2.0 2.2 1.0 1.5 0.8 0.0 TINRO will join with scientists from the USA to Russian Fed. 6.2 0.2 0.0 0.0 0.0 0.0 develop a 3-year program to study the resources of the Others 7.1 6.6 4.5 5.6 2.2 0.8 northwest region of the Bering Sea. The program will Total 28.8 24.4 21.8 20.6 23.7 15.2 allow Russian research vessels to work in US waters, Source: Statistisches Bundesamt

20 Globeﬁ sh Highlights April 2011 GROUNDFISH

Imports At the same time haddock stocks in Norwegian and Russian waters have more than tripled over the past Frozen hake: Italy decade. This is the result of responsible management of 2005 2006 2007 2008 2009 2010 this fi shery and good environmental conditions. (1 000 tonnes) Argentina 10.5 14.8 10.8 10.2 11.9 11.6 Authorities in Argentina announced that catch quotas Spain 6 6.3 5.3 4.6 4.6 7.0 for hake for the opening season of 2011 will be 193 000 Uruguay 4.7 5.8 4.6 4.0 3.4 5.6 tonnes and for hoki, 150 000 tonnes. However, up to 28 March, only 33 392 tonnes of hake had been caught, an S. Africa 6.4 4.8 4.4 5.5 5.6 5.0 18.9% decrease on the amount caught in 2010. The hake Namibia 2.7 2.4 1.7 2.8 3.0 4.0 fi shery in the Common Fishing Zone between Argentina Chile 0.4 0.2 0.2 0.4 1.4 1.4 and Uruguay will now be closed from 1 April to 21 June. Peru 0.0 0.0 0.0 0.4 0.0 0.1 Others 2.0 2.3 2.8 2.7 2.3 4.8 Namibia is facing a crisis in its hake fi shing sector, as Total 33.1 36.6 29.8 30.6 32.2 39.5 the Minister of Fisheries and Marine Resources has refused to grant an extra quota for hake for the current season, Source: National Trade Statistics which ends at the end of April. Some processing companies The German market for Argentine frozen hake fi llets will have to lay off workers as there is not suffi cient raw declined in 2010, from 5 100 tonnes to 2 300 tonnes material to continue operations. The current exchange Other suppliers such as USA, Namibia and Chile also lost rate is also having a negative impact on prices. However, market share. The total amount of German imports of the new season will begin in May and it is expected that frozen hake fi llets was 15 200 tonnes, a reduction of 35%, scientists will recommend an increased quota. from 23 700 tonnes in 2009. Italian imports of Argentine frozen hake remained much the same as in 2009, about Groundfi sh markets will benefi t in 2011 by reduced 11 000 tonnes. Spain almost doubled its presence in this pangasius exports from Viet Nam. market, growing from 4 600 tonnes to 7 000 tonnes in 2010, compared with the previous year. Groundfish production by species (2008) Chilean landings of hake species in 2010 were slightly higher overall in 2010 than in 2009, according Others, to the latest report of the Fisheries and Aquaculture 1 361 790, Sector by the Subsecretariat of Fisheries (Subpesca). Up 16% to December 2010 southern hake landings were 23 800 Alaska pollock, tonnes, 2.2% lower than in 2009 (24 346 tonnes), with the 2 650 351 Whiting, 31% industrial fl eet landing the largest volume (13 000 tonnes) 1 415 487, and artisanal fl eet landing 10 700 tonnes. Subpesca also 17% reported that landings of common hake last year totalled Hake, 46 900 tonnes, a rise of 6.9% over 2009 (43 821 tonnes). Cod, 1 128 783, 1 162 679, 13% A study led by researchers at the University of 14% Oviedo (Spain) has found that 38.9% of hake consumed Source: FAO Saithe, Haddock, in Spain is mislabelled. DNA studies showed that the 456 455, 332403, labels misreported either the name of the species or its 5% 4% geographical origin. The most common error was to label hake caught off the African coast as being of American or Eurpean origin, and thus able to be sold at a higher price GROUNDFISH NEWS than cheaper African varieties. SURIMI WAKES UP Outlook The Spanish National Association of Manufacturers of Canned Seafood (Anfaco-Cecopesca) reports that exports of surimi products from Spain increased 25% during 2010, reaching 3 According to Kontali Analyse, global groundfi sh 500 tonnes with the main destination being other EU markets. supplies have considerably increased during the fi rst According to Anfaco, during 2010, 176 100 tonnes of prepared, two months of the year, especially in the case of Alaska canned or semi-canned fi sh and shellfi sh were imported, mainly from the American continent, of which 11% of the total was surimi, pollock, with landings of 90 000 tonnes or approximately or close to 20 000 tonnes. In Spain, the surimi sector is waking up 15% of quotas in the fi rst two months of 2011, compared after a quiet period. ‘Antonio y Ricardo’ (Confremar), a group from with the same period in 2010. The supply of Atlantic cod Madrid, has purchased production facilities in Vigo. In addition, showed a considerable increase as well, while the supply the Lithuanian company Viciunai, one of the European leaders in surimi production, will start production at the former Multi-Prosur of saithe went down by 30% (17 000 tonnes) compared facilities in Cantabria. with the January-February period in 2010.

Globeﬁ sh Highlights April 2011 21 CEPHALOPODS

Octopus supply tight, squid improving

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

Octopus Wholesale prices Octopus: Japan Japan’s imports of octopus fell again last year, from 16 a total of 56 200 tonnes to 44 700 tonnes. The main USD/kg determinant for this trade seems to be availability, as the 14 octopus ﬁ shery off the coast of Morocco and Mauritania 2.0-3.0 kg/pc 12 has gone through a series of difﬁ culties in recent years. 10

0.3-0.5 kg/pc 8

Imports 6

Octopus: Japan 4

2005 2006 2007 2008 2009 2010 2 (1 000 tonnes) 0 Mauritania 19.5 16.6 14.0 12.6 26.5 16.2 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Morocco 8.7 8.7 10.3 10.9 13.8 10.8 Source: INFOFISH Trade News, GLOBEFISH AN 10507 China 9.9 8.2 7.2 6.7 5.5 9.4 Viet Nam 5.6 5.5 4.8 5.5 3.7 3.4 Spain 6.2 4.0 1.8 2.7 3.0 1.8 Monthly octopus prices, whole, frozen, in Thailand 3.0 1.9 1.8 1.2 1.4 1.0 Spain, Origin: Morocco Others 2.6 3.5 6.9 5.1 2.3 2.1 18.00 Total 55.5 48.4 46.8 44.7 56.2 44.7 EUR/kg

China 16.00

14.00 T8 12.00 Of Japan’s total import volume of frozen octopus, as much as 27 000 tonnes or 60% were imported from 10.00 Morocco and Mauritania, a ﬁ gure that shows a decrease T2 of 33% over that recorded in 2009. Thus both Morocco 8.00 and Mauritania registered declining exports of octopus to Japan in 2010. Meanwhile, China exported 9 400 tonnes 6.00 11 05 06 07 08 09 10 ------

of octopus to the Japanese market, which was 70% Mar Mar Mar Mar Mar Mar Mar more than in 2009. The other main exporters of octopus Source: EPR to Japan (Viet Nam, Spain and Thailand) all registered declines in volumes shipped.

The average unit price of the octopus from Morocco 2010 than in 2009. In the case of Italy, imports fell by and Mauritania went up between 2006 and 2008, but 14%, to 47 200 tonnes. Morocco and Mauritania, which collapsed in 2009 and recovered somewhat last year. are normally the main suppliers, suffered signiﬁ cant After the global ﬁ nancial crisis of 2008, the average unit declines in their exports to Italy, by 43% and a massive price dropped to JPY 500 (USD 6.00) in 2009, and a year 66%, respectively. Spain, on the contrary, increased its later rose to JPY 573 (USD 6.80). Now it is anticipated exports to Italy by some 25%. that during 2011, the upward trend will continue. In Spain imports from Morocco fell by 17% while Tight supplies also affected other markets. Both imports from Mauritania fell by 59%. Imports from Mexico, Spain and Italy imported lower amounts of octopus in Portugal and Senegal increased slightly.

22 Globeﬁ sh Highlights April 2011 CEPHALOPODS

In California, squid is becoming an important species Imports in the state’s fi shing industry. Once thrown overboard Octopus: Italy or used as bait, squid have steadily become the largest 2005 2006 2007 2008 2009 2010 commercial fi shery in California, surpassing salmon and (1 000 tonnes) other more traditional fi sheries. In 2009, slightly more Spain 8.4 8.5 6.9 8.2 7.7 9.6 than 100 000 tonnes were landed with a value of USD 56.5 million. Morocco 9.1 11.7 12.3 14.5 16.2 9.2 Mexico 3.3 2.8 4.6 2.2 3.1 5.8 The total quota for 2011 was set at 118 000 short Viet Nam 3.8 5.6 3.3 4.5 4.3 4.3 tons (about 107 048 tonnes), and it was expected that Indonesia 1.7 * 2.5 4.0 2.8 4.1 this would soon be reached and the fi shery would be Senegal 4.7 3.7 4.2 3.4 4.9 2.9 closed by the end of March. Mauritania 5.4 3.4 2.5 1.4 6.6 2.2 Tunisia 2.7 1.9 2.0 0.8 1.0 1.9 International trade in squid was very mixed last year. Japan had stable import quantities, at around 59 Thailand 3.3 3.4 2.4 2.8 2.8 1.2 000 tonnes. There were some movements among the Others 6.3 10.2 7.4 9.1 5.5 6.0 suppliers, though. China, Thailand and the USA increased Total 48.7 51.2 48.1 50.9 54.9 47.2 their exports to Japan, while Peru, in particular, registered Source: GLOBEFISH AN 10457 a drop in exports to Japan.

Imports Octopus: Spain Imports 2005 2006 2007 2008 2009 2010 Squid: Japan (1 000 tonnes) 2005 2006 2007 2008 2009 2010 Morocco 18.2 20.2 19.6 23.2 20.0 16.6 (1 000 tonnes) Mauritania 2.8 4.9 4.9 4.5 9.2 3.8 China 28.9 28.9 30.2 26.1 23.7 26.6 China 1.3 2.8 1.6 1.8 3.7 3.0 Thailand 9.2 7.6 8.1 7.1 6.8 7.6 Mexico * * * * 0.9 2.5 USA 7.7 4.6 5.4 3.9 4.0 6.3 Portugal 1.9 1.4 1.7 2.2 1.1 1.9 Viet Nam 5.9 7.0 6.8 5.5 5.5 5.4 Viet Nam 0.7 1.9 2.2 1.6 1.7 1.7 Peru 3.3 4.8 7.8 12.8 10.4 4.8 Senegal 2.0 0.5 0.5 0.6 0.9 1.1 India 1.8 1.9 1.0 1.2 1.3 2.1 Others 9.9 8.6 8.8 8.7 5.8 5.6 Korea Rep. 0.3 0.4 0.9 0.8 0.4 1.0 Total 36.8 40.3 39.3 42.6 43.3 36.1 Taiwan PC 0.6 0.3 0.4 0.2 0.0 1.0 Source: GLOBEFISH AN 10452 New Zealand 3.3 1.4 3.3 0.9 1.4 0.5 Morocco 0.2 0.8 0.2 0.2 0.4 0.4 Argentina 2.0 5.6 10.4 6.3 3.0 0.4 Others 1.1 2.6 2.6 2.8 2.2 3.3 Squid Total 64.3 65.9 77.1 67.8 59.1 59.4 The squid fi shery off the coast of Argentina in 2010 Source: GLOBEFISH AN 10437, *) included under others was another disappointing season, with 84 409 tonnes landed in Argentinean ports. This is a little better than the very poor season in 2009 but still a big drop from the 225 000 tonnes caught in 2008. Following the opening of The USA is not only a growing producer of squid, it is the season in January 2011, the squid fi shery is reported also becoming an important market for this commodity. to be quite good this year. The size of the squid caught In 2010, US imports of squid increased by 18.5% to 66 500 varies, most of it being small to medium size, but it is tonnes. The main supplier by far was China, accounting expected that larger squid will beginning to appear as the for over half of total imports. Other major suppliers season progresses. include the Republic of Korea, India and Taiwan Province of China. According to reports, the value of squid harvested off Argentina peaked at USD 2 236/tonne in November On the European market, Spain and Italy are the last year, an increase of 90.1% over the same period in largest importers. Both countries registered signifi cant 2009. increases in imports in 2010, perhaps as a substitute for

Globeﬁ sh Highlights April 2011 23 CEPHALOPODS

the declining octopus imports. Italy increased total squid Imports imports by 15.6%, to 100 000 tonnes. Spain,increased Squid: USA imports by even higher amounts reaching 47.3% or 167 2005 2006 2007 2008 2009 2010 500 tonnes. (1 000 tonnes) China 25.6 32.9 28.8 27.7 26.1 37.4 Cuttlefi sh Rep. Korea 3.0 2.8 3.1 5.4 5.9 5.4 India 6.1 8.2 4.5 6.9 3.8 5.1 Cuttlefi sh imports were quite stable last year, with practically no change in the main markets. Japan, Spain Taiwan PC 4.7 5.6 5.9 5.4 6.9 4.5 and Italy all imported more or less the same amounts as Thailand 7.1 7.4 7.2 8.2 4.7 4.1 in 2009. Supplies were relatively stable, with India being New Zealand 3.8 2.2 2.5 1.0 1.0 3.1 the main supplier. Peru 1.7 1.7 0.1 2.0 3.2 2.8 Others 6.0 8.4 10.3 8.5 4.5 4.1 Squid and cuttlefi sh prices have developed differently Total 58.0 69.2 62.4 65.1 56.1 66.5 over the last seven or eight years. Cuttlefi sh prices have been on an upward trend since 2001, while squid prices Source: GLOBEFISH AN 10459 stagnated in 2004 and have been relatively stable since then. However, in 2010 they started to climb.

Imports Imports Squid: Italy 2005 2006 2007 2008 2009 2010 Cuttleﬁ sh: Japan 2006 2007 2008 2009 2010 (1000 tonnes) Spain 28.8 30.3 25.2 22.1 27.4 29.2 (1 000 tonnes) Thailand 12.5 11.5 8.3 7.5 6.9 Thailand 20.5 21.2 22.8 23.4 22.4 20.7 Viet Nam 4.7 5.1 4.5 4.0 3.9 India 3.3 3.8 2.9 3.5 4.1 9.3 Morocco 3.5 3.9 2.2 2.8 3.2 S. Africa 5.4 5.0 3.7 3.7 4.8 5.2 Malaysia 2.2 1.6 1.7 1.9 1.8 Argentina 7.6 8.9 10.7 10.0 4.7 4.1 Korea Rep. 0.4 0.3 0.6 0.8 0.5 Peru 6.4 3.4 3.4 0.9 2.5 1.7 China 1.5 0.4 0.1 0.0 0.0 New Zealand 1.6 2.3 0.1 0.1 0.0 0.0 Ghana 0.2 0.5 0.0 0.0 0.0 Others 21.5 22.8 32.8 23.2 20.6 29.8 Others 3.1 2.6 2.3 2.0 2.7 Total 95.1 97.7 101.6 86.9 86.5 100.0 Total 28.1 26.0 19.7 19.0 18.9 Source: GLOBEFISH AN 10455

Imports Imports Cuttleﬁ sh: Italy Squid: Spain 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 (1 000 tonnes) (1 000 tonnes) France 7.0 5.9 6.7 5.6 3.7 6.3 Falkland/Malv. 48.0 42.4 40.3 45.6 34.2 51.3 Tunisia 2.7 3.1 5.1 4.1 3.5 5.5 China 7.0 8.1 6.4 6.7 14.1 30.1 Spain 5.2 4.8 3.7 4.6 5.3 4.5 Argentina 46.6 83.6 61.3 54.4 28.1 23.3 Senegal 3.0 2.2 2.4 1.9 2.3 2.2 India 20.1 18.2 12.8 15.5 15.1 22.3 Morocco 0.7 1.1 0.8 1.0 2.9 1.9 Peru 3.7 1.8 4.5 1.2 3.0 12.5 Viet Nam 5.0 1.7 0.8 1.0 0.6 0.7 Morocco 3.7 4.5 1.4 3.3 4.0 5.0 China 0.8 0.5 0.1 0.6 0.7 0.6 South Africa 5.0 4.0 3.5 4.5 3.7 4.6 India 5.8 2.9 0.9 0.7 0.7 0.5 USA 3.6 3.9 1.7 2.2 1.5 3.2 Thailand 4.9 1.6 0.3 0.2 0.5 0.2 Others 18.0 14.7 13.9 17.0 10.0 15.0 Others 15.5 9.1 5.9 5.5 4.3 4.1 Total 155.7 181.2 145.8 150.4 113.7 167.4 Total 50.6 32.9 26.7 25.2 24.5 26.5 Source: GLOBEFISH AN 10450 Source: GLOBEFISH AN 10439

24 Globeﬁ sh Highlights April 2011 CEPHALOPODS

Outlook Prices Domestic ﬂ ying squid: Japan The prospects for a better squid season off Argentina 8.0 this year are hopeful. Price indications are still uncertain USD/kg although the price remains stable and has not yet dropped 7.0 down to the usual pre-season low. Much will depend on the US dollar exchange rate. Octopus prices are also 6.0 expected to remain higher this year. 5.0

4.0

3.0 Squid

Imports 2.0 Cuttleﬁ sh: Spain 1.0

2005 2006 2007 2008 2009 2010 0.0 (1 000 tonnes) Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Source: INFOFISH Trade News, GLOBEFISH AN 10501, 09 India 17.1 19.8 18.1 16.8 20.1 18.8 Morocco 6.3 11.3 10.1 12.1 12.8 13.2 China 7.3 8.0 5.1 6.4 6.7 4.4 Wholesale prices Mauritania 3.2 3.2 3.6 2.5 2.9 2.0 Cuttleﬁ sh, squid: Japan Ghana 2.2 2.3 2.0 1.5 1.5 1.9 France 5.4 5.1 6.7 3.8 0.6 0.8 10.0 USD/kg Yemen * * * * 0.8 2.8 9.0 Vietnam * * * * 0.6 0.9 8.0 Others 11.7 14.2 12.2 8.1 3.0 5.0 7.0 Total 53.2 63.9 57.8 51.2 49.0 49.8 6.0 Cuttlefish * 5.0 Source: GLOBEFISH AN 10457 4.0

3.0 Squid **

2.0

1.0 * whole 10 kg/block, 0.4-0.6 kg/pc; ** whole 7.5 kg/block, 21-25 pc/kg; 0.0 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Source: INFOFISH Trade News, GLOBEFISH AN 10501, 09

Cephalopods production by species (2008)

Cephalopods nei Cuttlefish, 8% 7% 359 285 302 453

Octopus, 8% Squid 376 711 77% 3 562 779

Source: FAO

Globeﬁ sh Highlights April 2011 25 TILAPIA

Tilapia demand continues to grow

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

Supply Higher production, however, is reported from Brazil, which anticipates a production of close to 200 000 tonnes The Chinese government has introduced a minimum in 2010. Much of the local production is channeled to the wage so that processing costs in China are already domestic market. With the stronger Brazilian currency beginning to rise. These costs will eventually be passed (the Real), it is much more viable to sell to the domestic on to consumers. Therefore prices of tilapia are likely to market where consumption is growing than to export. be higher in 2011. Chinese tilapia production in 2010 is The Brazilian currency strengthened by nearly 33% from not expected to exceed 1.2 million tonnes. its high in late 2008. The government is also encouraging the aquaculture industry. While China’s fi sh processing industry continues to depend on imported raw material, exports of locally Meanwhile, according to the Agriculture and farmed tilapia expanded worldwide with 322 000 tonnes Livestock Ministry (MAG), tilapia production in Paraguay of sales last year, mostly consisting of raw fi llets and some registered the highest growth rate in the region’s history breaded products (76%). Nearly half of China’s tilapia (200% since 2003). This is line with the national plan, exports went to the US market. Whole frozen tilapia one focus being the improvement of the domestic and prices have grown by 55% since 2006. foreign markets for local aquaculture products. Domestic distribution is increasing with national supermarket chains now offering the species to consumers. Exports The Nowegian group, Genomar reported a huge loss Tilapia: China last year following high mortalities at its tilapia farm in 2006 2007 2008 2009 2010 Malaysia. This has disrupted supplies of raw materials for quantity (1 000 tonnes) export processing and has pushed prices up. Its China- frozen whole 46.9 14.0 12.7 33.1 75.7 based hatchery was also affected by fl oods last October. other tilapia 133.9 201.2 211.7 226.0 264.1 Total 180.8 215.2 224.4 259.1 321.8 USA value (million USD) frozen whole 50.0 16.3 20.0 48.2 125.9 NMFS reported that 215 378 tonnes of tilapia were imported into the market last year compared with 183 other tilapia 353.5 474.6 713.6 662.0 878.3 000 tonnes the year before. China supplied some 74% Total 403.5 490.8 733.6 710.2 1 004.2 (worth USD 843 million) of these imports, which are Unit value USD/kg dominated by frozen fi llets, followed by Taiwan Province frozen whole 1.1 1.2 1.6 1.5 1.7 of China, Indonesia and Ecuador. Latin American countries other tilapia 2.6 2.4 3.4 2.9 3.6 contribute the largest supplies of fresh tilapia fi llet with Total 2.2 2.3 3.3 2.7 3.1 Ecuador, Honduras and Costa Rica taking the leading positions. Ecuador exported 17% less in 2010 compared Source: GLOBEFISH/INFOYU with 2009. Supplies of fresh fi llets also increased from Honduras and Costa Rica. Demand is expected to expand further in the Chinese domestic market as the government continues to develop Much greater supplies are also noted from Thailand, the transportation infrastructure in the country. Last from 288 tonnes in 2009 to 2 241 tonnes last year. With year, a leading producer and distributor of tilapia took on importers intending to promote the fi llet segment during a national project to establish the transport of tilapia by the Lent season, imports are expected to remain strong train from the southern China to the northern provinces. in the coming months to meet demand.

26 Globeﬁ sh Highlights April 2011 TILAPIA

Imports Imports Fresh Tilapia Fillets: USA Tilapia (by product form): USA 2005 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 (1 000 tonnes) (1 000 tonnes) Ecuador 10.6 10.9 11.9 8.5 9.1 7.9 Whole frozen 60.8 46.9 49.6 44.2 40.9 Honduras 6.6 7.3 7.9 8.3 6.5 7.2 Frozen fi llets 74.4 100.6 100.6 114.8 150.8 Costa Rica 3.7 2.7 4.8 5.6 5.7 5.8 Fresh fi llets 23.1 26.2 29.2 24.4 23.7 Brazil 1.0 1.0 0.2 0.5 0.3 0.3 Total 158.3 173.7 179.4 183.4 215.4 El Salvador 0.3 0.2 0.3 0.5 0.5 0.3 Source: GLOBEFISH Taiwan PC 0.0 0.0 0.0 0.6 0.2 0.2 Others 0.5 0.9 1.1 2.1 2.1 1.9 Total 22.7 23.1 26.2 26.1 24.4 23.7 Source: GLOBEFISH Reportedly, fresh seafood prices, including those of tilapia are higher in supermarkets. According to a report by Perishables Group, tilapia prices in US supermarkets were 14.2% higher than in January 2010. Over the January to December period last year, frozen tilapia fi llet prices (ex-warehouse, New York) moved up by 18% while fresh tilapia prices have strengthened by 5% since January 2010. Imports Whole Frozen Tilapia: USA The economic crisis has taken a toll on the US market for high value fresh/chilled (air-fl own) tilapia fi llet as 2005 2006 2007 2008 2009 2010 consumers switched to the cheaper alternative - frozen (1 000 tonnes) fi llet. The dwindling demand for fresh/chilled tilapia fi llet China 30.9 40.5 32.5 29.0 29.7 22.9 was refl ected in the declining imports of this category for Taiwan PC 24.1 18.3 13.5 15.9 13.2 16.3 the last two consecutive years. Imports of fresh/chilled Thailand 0.2 0.6 0.2 3.3 0.9 1.2 tilapia slipped further in 2010 by 20% compared with the Panama 0.5 0.4 0.1 0.3 0.1 0.2 peak level of 2008. Indonesia 0.2 0.3 0.0 0.2 0.0 0.0 The combined value of US imports of tilapia Others 0.6 0.7 0.6 0.9 0.3 0.3 and pangasius in 2010 crossed the USD 1 billion mark Total 56.5 60.8 46.9 49.6 44.2 40.9 confi rming the continued growth in demand for tropical Source: GLOBEFISH, *) included under others food fi sh, particularly fi llets, in the market.

Wholesale price Tilapia ﬁ llets: USA Imports 4.5 USD/lb Frozen Tilapia Fillets: USA fresh* 2005 2006 2007 2008 2009 2010 4.0

(1 000 tonnes) 3.5 China 44.1 63.3 87.5 87.2 100.7 135.5 3.0 Indonesia 6.4 7.1 8.6 9.6 8.8 10.2 Taiwan PC 3.1 3.1 2.6 2.1 2.3 2.2 2.5

Thailand 0.9 0.2 0.0 0.4 0.7 1.1 2.0 Viet Nam 0.4 0.0 0.1 0.0 0.2 0.2 frozen** 1.5 Panama 0.2 0.2 0.2 0.4 0.3 0.2

Others 0.5 0.5 1.6 0.9 1.9 1.3 1.0 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Total 55.6 74.4 100.6 100.6 114.8 150.8 *) origin South America; **) origin China Source: GLOBEFISH Source: Oil World, GLOBEFISH AN 11702, 11706

Globeﬁ sh Highlights April 2011 27 TILAPIA

Europe

Tilapia’s popularity is growing at a slower but still TILAPIA NEWS steady pace in the EU market. Imports of fi llet into the EU-27 were nearly 19 000 tonnes last year, 85% of REGAL SPRINGS INDONESIA FARM GETS TILAPIA STANDARD Regal Springs Tilapia Group’s Indonesia farm has now been which originate from China. Indonesia supplied about certifi ed under the new standards created by the tilapia 1 500 tonnes followed by Thailand and Viet Nam. Poland aquaculture dialogues. The farm is the second in the world remains the single largest EU market for tilapia fi llet with to be certifi ed by the International Standards for Responsible close to 7 000 tonnes of imports last year followed by Tilapia Aquaculture (ISRTA). The fi rst was Regal Springs’ tilapia farm in Honduras, which was certifi ed in October Spain, Germany and the Netherlands. Imports are likely 2010. The tilapia aquaculture dialogues were led by the to be higher in 2011 as market growth remains good. For World Wide Fund (WWF) and industry stakeholders as part EU consumers, tilapia is certainly a cheaper alternative of the Aquaculture Stewardship Council initiative (ASC). As to the coldwater white fi sh varieties. the ASC has not set up its verifi cation scheme yet, the ISRTA standards were developed under an agreement between the WWF and GlobalGap to allow aquaculture operations to be audited in the meantime. Under the agreement, the aquaculture dialogue standards are added on, in their entirety, to the GlobalGap standards. Regal Springs Tilapia Imports is the world’s largest producer and importer of tilapia fi llets to the USA. It started as a small venture in the early 1990’s Tilapia: Poland amidst ancient spring waters in Central Java, Indonesia. The company now has more than 6 000 employees and Year COUNTRY Month tons USD production sites across Honduras, Indonesia and Mexico. 2010 CHINA 1 521 1 275 017 The Swiss-based Institute for Marketecology (IMO) 2 764 1 950 736 conducted the audit, issuing the certifi cate for GlobalGAP and a letter of compliance for the ISRTA. IMO also carried 3 858 2 269 012 out the auditing for Regal Springs’ Honduras farms last 4 594 1 654 455 year. As part of the latest audit, Regal Springs’ processing plant in northern Sumatra was also awarded GlobalGAP 5 425 1 210 229 certifi cation and a Chain of Custody certifi cation. The ISRTA 6 370 1 047 888 assesses farms on seven environmental and social impacts principles. These are: compliance with local, regional and 7 371 1 052 853 national laws; conservation of natural habitat and local 8 393 1 092 408 biodiversity; conservation of water resources; conservation of species diversity and wild populations; responsible use of 9 726 1 981 722 resources; proper management of fi sh health and welfare 10 650 1 781 810 in an environmentally responsible manner; and social 11 518 1 441 359 responsibility toward workers and communities Source: INTRAFISH 12 597 1 765 072 CHINA Total 6 786 18 522 561

Unit value Tilapia exports: China Outlook

4.0 USD/Kg The minimum wage introduced by China is one factor that will keep the price of tilapia high in 2011. Another 3.5 factor is that land for aquaculture in China is becoming 3.0 more diffi cult to obtain and thus supply is unlikely to increase markedly. However, a programme offered by 2.5 the Chinese government to encourage re-stocking after 2.0 the fl oods in October 2010 by subsidizing the cost of fi ngerlings by as much as half has given rise to predictions 1.5 that 2011 production will exceed that of 2010. Demand 1.0 will continue to be strong. Even if increased prices are other tilapia passed on to consumers, tilapia will still be a cheaper Average 0.5 option than cod or salmon. frozen whole 0.0 2004 2005 2006 2007 2008 2009 Source: elaborated from National Trade Statistics

28 Globeﬁ sh Highlights April 2011 PANGASIUS

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

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

Stringent import requirements imposed by some The combined EU imports of pangasius fi llet from markets in Europe, Asia and Latin America have Viet Nam fell slightly (-3.5%) to nearly 210 000 tonnes in restricted export access for Viet Nam - the world’s largest 2010, according to Eurostat. Spain remained the largest producer of pangasius catfi sh. According to VASEP (Viet market but import dropped by 6% totaling 50 000 tonnes. Nam Association of Seafood Exporters and Producers ) There were also lower imports in most of the EU markets aquaculture production of pangasius totaled 1.2 million compared with 2009. tonnes in 2010. In January 2011, VASEP established minimum farm-gate and export prices for pangasius fi llet at USD 1.00/kg and USD2.80/kg FOB respectively. A supply shortage this year pushed up raw material prices to USD 1.19-1.24 per kg in the Mekong Delta. Imports Freshwater Fish from Viet Nam: EU 2005 2006 2007 2008 2009 2010 (1 000 tonnes) Exports Spain 10.0 22.0 33.6 44.7 52.2 49.1 Pangasius: Viet Nam Germany 7.3 12.1 16.3 24.8 35.3 31.4 2007 2008 2009 2010 Poland 3.8 23.5 39.8 44.1 27.5 20.9 (1 000 tonnes) Netherlands 6.0 21.6 29.6 32.9 25.5 27.3 EU 172.8 224.3 224.1 221.9 Romania 0.0 0.0 0.2 3.9 12.0 13.8 Russia 48.7 118.2 39.5 30.3 Italy 2.7 7.6 11.3 15.9 11.7 10.2 Ukraine 23.0 74.4 37.7 na Belgium 6.7 9.8 9.3 12.9 11.4 9.8 Asean 33.8 34.0 43.5 41.6 UK 0.2 0.9 2.0 4.2 7.2 8.6 China & HK 18.2 18.5 19.4 23.7 France 0.1 0.9 2.7 4.3 4.8 4.9 USA 21.2 24.2 41.6 55.7 Czech Rep 0.0 0.5 1.4 3.1 4.6 3.6 Mexico 14.3 23.2 31.1 39.3 Lithuania 0.0 0.4 1.0 2.6 3.5 2.2 Egypt 6.3 26.6 26.1 26.5 Others 2.2 4.8 8.1 13.6 20.2 26.4 Others 48.7 97.6 144.7 204.7 Total 38.9 104.0 155.3 207.0 215.8 208.2 Total 387.0 640.8 607.7 659.3 Source: EUROSTAT Source: VASEP

Prices offered by the EU market rose by nearly 30% Pangasius production is expected to be lower during by the end of last year. The tight supply situation and the ﬁ rst quarter of 2011. Coupled with heavy losses ceiling price imposed by VASEP has pushed prices up incurred by businesses and low farm-gate prices last further by 13% as of April this year. year, some 30% farmers have left the pangasius industry, reported industry sources in Viet Nam. USA

VASEP has predicted a drastic drop in exports in Total catﬁ sh imports including pangasius and channel 2011 compared with 2010, down from 640 000 tonnes to catﬁ sh (Ictalurus) increased to 62 385 tonnes last year, 360 000 tonnes. up 6.3% from 2009. Supplies from Viet Nam accounted

Globeﬁ sh Highlights April 2011 29 PANGASIUS

‘Panga’ Catfi sh fi llet prices, Last year, the Ministry of Marine Affairs and Fisheries (MMAF) in Indonesia enforced a new regulation on fi shery cfr Spain imports to protect consumers from sub-standard imported 3.5 products and trade related frauds. The regulation USD/kg requires imported fi shery products to be accompanied with health and country of origin certifi cates from the exporting country’s competent authority. For frozen fi sh 3 including fi llets, the maximum glazing allowed is 20%. Imported pangasius fi llet often carries the name “dory” and in some cases the glazing is as high as 40% without any mention of the net product weight on the packaging 2.5 label.

Fillets - interleaved, 10% glaze, skinless, boneless, belly-off Some regulatory measures have been also adopted Fillets - IQF, white, 20%, 1kg poly bag in Brazil for imported ﬁ shery products. 2 Jun-07 Nov-07 Apr-08 Sep-08 Feb-09 Jul-09 Dec-09 May-10 Oct-10 Mar-11 Source: EPR Outlook

With lower production expected in 2011 in Viet Nam this year, the market will remain tight with fi rmer prices. for about 80% of the total catfi sh imports into the US New supplying countries are adding production targeting market. However, channel catfi sh, which account for both domestic markets and export destinations, but the 9% of total US catfi sh imports, declined by 32%, largely impact in the short term will be limited. supplied by China. Imports of pangasius from China, in contrast, increased by 25% compared with 2009. Supplies from Thailand, Malaysia and Indonesia, although minor, declined because of better trade opportunities in the PANGASIUS NEWS domestic fresh fi sh markets. USDA ANNOUNCES PROPOSED RULE FOR THE INSPECTION OF The US domestic catfi sh market continues to struggle CATFISH AND CATFISH PRODUCTS The US Department of Agriculture (USDA) announced a proposed amid growing imports. Restaurateurs and retailers are rule requiring inspection of catfi sh and catfi sh products by USDA’s resisting any price increase while the recession is still Food Safety and Inspection Service (FSIS). USDA is proposing these taking its toll. Supplies from the domestic catfi sh industry regulations to implement provisions as required by the Food, are also expected to be reduced this year. Conservation and Energy Act of 2008, also known as the 2008 Farm Bill. The 2008 Farm Bill amended the Federal Meat Inspection Act making catfi sh an amenable species under the Act, thereby Asia and beyond requiring that all catfi sh undergo inspection by FSIS. In addition, the Act takes into account the conditions under which catfi sh are raised and transported to processing establishments as part of the new The Association of Southeast Asian Nations (ASEAN) is inspection programme. the third largest import market for Vietnamese pangasius The 2008 Farm Bill requires the Secretary of Agriculture to defi ne fi llet; overall ASEAN imports fell by 4.7% in 2010, the term “catfi sh” for this new inspection programme. The proposed although imports increased marginally into the Singapore rule provides two options for the defi nition of catfi sh and seeks public comment on the issue. One option is the current labeling and Malaysian markets. Higher imports were also seen defi nition in the 2002 Farm Bill, which includes all species in the in Hong Kong Special Administrative Region, Republic of family Ictaluridae. The other option is to defi ne catfi sh as all species Korea and India from Viet Nam. in the order Siluriformes, including the three families typically found in human food channels, including Ictaluridae, Pangasiidae, and Clariidae. The proposed rule describes the new requirements that will apply to Imports catfi sh produced in or imported to the US. Among these requirements Catfi sh: USA is that products labeled as “catfi sh” must bear either the FSIS mark of inspection or a mark of inspection from the country from which 2005 2006 2007 2008 2009 2010 it was exported. The proposed rule also describes how FSIS will (1 000 tonnes) inspect US catfi sh farms as well as transportation from farms to processing establishments, as required under the 2008 Farm Bill. Viet Nam 8.6 18.0 16.6 24.2 38.7 49.2 In this regard, FSIS will focus on factors affecting the safety of China 1.7 7.6 9.9 12.5 10.4 8.1 the product being produced, such as water quality and feed. The proposed rule anticipates a transition period during which domestic Thailand 1.5 3.4 5.6 5.6 6.2 3.5 and international operations will come into compliance with the Malaysia 0.5 2.9 0.4 0.1 0.5 0.3 catfi sh inspection programme. Once the catfi sh inspection programme rules are issued in fi nal Others 1.3 2.5 2.4 1.9 2.9 1.3 form, FSIS will follow-up by announcing the implementation dates Total 13.7 34.4 34.8 44.2 58.7 62.4 for key provisions in the rule. Source: GLOBEFISH

30 Globeﬁ sh Highlights April 2011 EUROPEAN SEABASS AND GILTHEAD SEABREAM Seabass and seabream impress Russia

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

Production Production Seabass (Dicentrarchus labrax): World Seabream (Sparus aurata): World 2006 2007 2008 2009 2010 2011* 2006 2007 2008 2009 2010 2011* (1 000 tonnes) (1 000 tonnes) Greece 40.0 43.0 48.0 42.0 40.0 38.0 Greece 60.0 72.0 90.0 88.0 83.0 82.0 Turkey 30.0 33.0 35.0 32.0 30.0 33.0 Turkey 22.5 28.0 32.0 31.0 28.0 31.0 Italy 9.1 10.0 9.0 9.0 8.0 7.0 Spain 20.2 23.0 25.0 25.0 21.0 18.0 France 5.6 5.0 4.0 4.0 4.0 4.0 Italy 8.9 9.0 9.0 9.0 8.0 7.0 Spain 8.9 11.0 11.0 10.0 8.0 7.0 Egypt 3.0 3.0 3.0 3.0 3.0 3.0 Egypt 2.1 3.0 2.0 2.0 2.0 2.0 Israel 2.8 3.0 3.0 3.0 3.0 3.0 Croatia 1.6 2.0 2.0 2.0 3.0 3.0 Portugal 1.6 2.0 2.0 2.0 2.0 2.0 Portugal 1.4 2.0 2.0 2.0 2.0 2.0 Croatia 1.0 1.0 1.0 1.0 1.0 1.0 Tunisia 0.5 1.0 1.0 1.0 1.0 1.0 France 2.2 2.0 2.0 2.0 2.0 2.0 Others 0.6 1.0 1.0 1.0 1.0 1.0 Others 2.8 3.0 3.0 3.0 3.0 3.0 Total 99.8 111.0 115.0 105.0 99.0 98.0 Total 125.0 146.0 170.0 167.0 154.0 152.0 Source: FAO/AQUAMEDIA (for 2007and 2008), (*) Provisional Source: FAO/AQUAMEDIA (for 2007 and 2008), (*) Provisional

Italy: Europe’s leading market still growing Imports Italy’s market for bass and bream products continues Fresh Seabream and Seabass: Italy to grow. It has always relied on imports for most of its 2008 2009 2010 2008 2009 2010 supply but domestic producers have also contributed ( 1 000 tonnes) (million Euro) a signiﬁ cant share to overall consumption. National Seabream production, however, has been stagnant for many years (dentex/pagellus) at around 16 000 tonnes as domestic producers struggle Greece 1.4 1.2 1.1 7.6 5.5 5.6 to compete with larger and more efﬁ cient producers in Greece and Turkey. As a result Italian producers are Total 2.0 2.1 2.0 12.2 14.7 14.9 targeting the higher paying segments of the market. Seabream (gilthead) Imports last year grew by 15% in volume and a Greece 14.1 14.5 17.2 44.7 54.5 73.6 substantial 24% in value, thanks to higher market prices Turkey 1.9 2.0 2.2 5.7 6.4 8.1 during the year. Despite the economic crisis, the two Total 18.3 19.1 22.6 61.2 75.3 100.9 species are still considered to be relatively inexpensive Seabass and are sold in mainstream supermarkets at between EUR 6 and EUR 9 per kilo. Penetration in the restaurant Greece 9.8 18.4 16.7 44.3 51.6 73.7 segment is almost complete with most restaurants Turkey 3.6 4.4 2.3 26.6 15.3 8.3 offering bass and bream on the menu. The potential for Total 16.4 19.1 21.7 88.4 86.1 102.4 increasing consumption in Italy, therefore, is more linked Gr.Total 36.7 40.3 46.3 161.9 176.1 218.2 to increased consumption by the consumers that already Source: ISTAT buy the species than by improved distribution.

Globeﬁ sh Highlights April 2011 31 EUROPEAN SEABASS AND GILTHEAD SEABREAM

However, there are a few segments that are relatively Imports uncovered, such as the more mountainous areas of the Appenines, but this holds for fi sh consumption in general, Seabream and Seabass: France except for smoked and conserved varieties, and possibly 2008 2009 2010 2008 2009 2010 trout. Another segment is frozen products. As the frozen (1 000 tonnes) (million Euro) food sector increases in popularity in Italy, with the Seabream addition of better quality and prestige products, more (dentex/pagellus) frozen bass and bream products are likely to come on the market. Greece 0.7 0.5 0.6 2.5 2.1 2.9 Total 1.3 1.4 1.5 4.8 5.2 5.8 Greece remains the dominant supplier of seabass Seabream and seabream, followed by Turkey. Some of the Turkish (gilthead) product is imported through Greece so the market share Greece 4.6 5.2 4.6 15.8 18.8 20.4 represented by Greece is somewhat exaggerated. The Spain 1.5 1.9 1.4 5.4 7.2 6.6 average import price from Greece and Turkey varies quite Total 6.4 7.4 6.9 22.4 27.5 30.3 substantially, with Greece receiving prices about 20% higher. In part, this could refl ect bigger average sizes. Seabass Greece 2.9 3.1 3.4 14.4 14.1 16.9 The outlook for the Italian market over the next UK 0.2 0.2 0.3 0.8 1.8 2.1 quarter is positive with relatively good balance between Total 4.4 4.8 5.2 22.9 23.5 27.6 supply and demand. Despite economic concerns, demand Gr. Total 12.1 13.6 13.6 50.1 56.2 63.7 should not suffer much. The new generation fi sh is not Source: French national statistics expected to come to market until the summer months but quantities are somewhat uncertain. Producers reduced output in all the major supplying countries in 2010. For 2011 reduced volumes are likely in the fi rst half of the Spain: diffi cult domestic market leads year. producers to look towards imports

Spanish consumers have been reluctant to spend Prices over the last few of years as the economic situation Seabass and Seabream: Italy is uncertain with unemployment edging towards 20%. Surprisingly enough, import volumes of both bass and 6.00 bream rose slightly in 2010, probably as a result of Spanish EUR/kg 5.50 consumers looking for less expensive alternatives to the Seabass domestic production. 5.00

4.50

4.00 Imports 3.50 Seabream and Seabass: Spain 3.00 Seabream 2008 2009 2010 2008 2009 2010

2.50 (1 000 tonnes) (million Euro) Seabream 2.00 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 (all species) fresh whole 300-450 gr/pc, origin Greece France 1.1 0.4 0.3 1.0 3.2 2.9 Source: EPR; GLOBEFISH AN 10512, 10514 Greece 5.6 8.5 8.2 25.5 30.8 34.7 Morocco 0.5 0.4 0.3 3.4 1.6 1.6 France: stable volumes Total 8.6 9.5 9.7 33.0 39.7 43.0 Seabass Import volumes were stable in 2010 whereas France 0.5 0.4 0.4 6.1 4.6 3.8 import values increased 13%. Higher average import Greece 4.0 3.6 4.6 22.8 15.4 19.5 prices curtailed consumer enthusiasm but the French Morocco 0.1 0.1 0.1 2.0 0.6 0.4 market remains an important one for Greek producers in Turkey 3.6 2.5 2.4 7.7 9.5 8.9 particular, with Spanish suppliers also active. The French processing industry is innovative in looking for new Total 8.7 6.9 7.5 43.3 36.4 34.0 products, and frozen portion size ﬁ llets have recently Gr. Total 17.3 16.4 17.2 76.3 76.1 77.0 been introduced successfully. Source: Spanish national statistics

32 Globeﬁ sh Highlights April 2011 EUROPEAN SEABASS AND GILTHEAD SEABREAM

diversify away from an overdependence on traditional UK seabream imports markets in southern Europe. Outlook for 2011 is positive (1 000 tonnes) although the price conscious German market will react if prices go too high. 2008 2009 2010 Greece 1.4 0.9 0.9 Netherlands 0.4 0.5 0.6 France 0.3 0.4 0.3 Imports Italy 0.3 0.2 0.1 Fresh Seabream and Seabass: Germany Morocco 0.2 0.0 0.0 2008 2009 2010 Others 0.0 0.2 0.2 (tonnes) Total 2.5 2.2 2.3 Seabream (dentex/pagellus) Greece 332 388 461 Total 584 532 586 UK seabass imports Seabream (1 000 tonnes) (gilthead) 2008 2009 2010 Greece 489 385 947 Greece 2.5 1.9 2.8 Italy 120 92 159 Netherlands 1.1 1.4 1.8 France 50 163 69 Italy 1.1 0.5 0.1 Total 844 840 947 Seabass France 0.9 0.5 0.4 Greece 196 281 380 Others 0.0 0.7 0.4 Italy 45 111 252 Total 5.6 5.0 5.5 France 171 133 133 Souce: National Statistics Total 621 722 900 Gr.Total 2 049 2 094 2 433 Source: National statistics UK: cautious consumers add to market uncertainty

One of the positive developments in bass and bream consumption over the last few years has been the growing Outlook popularity in selected northern European markets. The UK, in particular, has been a well-developed market for During the last year the market was fairly balanced, bass, which is known from domestic wild fi sheries. Bass however, the outlook for the rest of this year is uncertain. import volumes grew 10% in 2010 whereas bream volumes Diffi cult access to credit in both Spain and Greece will were stable. The outlook for the UK market is dependent limit production increases in 2011, especially during upon consumer sentiment and, with a foreseen reduction the fi rst half of the year. In Turkey, however, production in purchasing power, the immediate outlook for bass and will reportedly grow in 2011, with domestic Turkish bream consumption is not overly positive. Import volumes demand strong thanks to the buoyant state of the Turkish in 2011 will probably remain at 2010 levels, close to 8 000 economy. tonnes, depending on price developments. During the current quarter, after some early Germany: small but growing hesitation, the market has fi rmed. Prices will remain fi rm with increases expected for bream in particular over the next quarter until the new production reaches market One of the newer markets for bass and bream is size in early summer. showing good growth. Although the two species are not traditionally known to German consumers, increased The restructuring of the European bass and bream travel and interest in Mediterranean cuisine underpin sector is likely to continue with leading Spanish producer consumption. Volumes reached almost 2 500 tonnes in Culmarex now up for sale, as the group’s new owner has 2010 and although not particularly large, they provide chosen to concentrate on its salmon business. a welcome outlet for Mediterranean producers trying to

Globeﬁ sh Highlights April 2011 33 EUROPEAN SEABASS AND GILTHEAD SEABREAM

Position of seabass and seabream in the TOP-30 imported ﬁ sh and seafood products in by value to Russia in 2010 Customs value of goods Products 2009 2010 place share RUB place share RUB

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

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

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

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

Impressive popularity of seabass and seabream The statistics of ﬁ sh and seafood imports (group in Russia continues HS 03 – ﬁ sh and crustaceans, mollusks and other aquatic invertebrates) in Russia in 2009/2010 was analysed and According to restaurant chefs in the Russian capital, the products ranked according to customs value. Seabass everybody is interested in seabass and seabream. Even if and seabream moved upward as indicated in the table they are not on the menu, chefs are requested to prepare above. The customs import value of fresh and chilled them. However, this seldom happens because most seabass increased from RUB 153 million (EUR 3.8 million) restaurants in Moscow, even those serving traditional in 2009 to nearly RUB 346 million (EUR 8.6 million) in Russian cuisine, offer either seabass or seabream or both, 2010, and its import position went up from 32nd to 20th thus following popular demand. place. The import value of seabream also doubled. The customs import value of fresh and chilled seabream grew The constantly increasing demand for seabass and from RUB 158 million (EUR 3.9 million) in 2009 to RUB seabream has been acknowledged by all distributing 339 million (EUR 8.4 million) in 2009, moving from 30th companies and restaurants. A few years ago these species to 21st place. were regarded as premium products but today seabass, seabream and even black cod are found on the menus of Source: Fishnet.ru at restaurants not only in Moscow but also in the regions. Good taste, convenient portion size and reasonable price are some of the factors that make these species attractive to Russian consumers. SEABASS AND SEABREAM NEWS SPAIN: SUBSIDIARY OF NIREUS INVESTS HEAVILY TO INCREASE PRODUCTION

Predomar’s (Preengorde de Doradas para Maricultura S.L.) latest expansion of its facilities will allow it to produce 25% more seabass Seabass and seabream production (2008) and seabream, after an investment of EUR 1 million. The manager of the aquaculture fi rm, Carlos Llorens, recalled that the project began in 2008 and expects it to be completed during the fi rst quarter of 2011. The total investment amounts to around EUR 2.5 million, reports El Almería. Currently, the farm located in Carboneras can produce up to 12 million units of seabream and seabass. After the enlargement, the company expects to be able to cultivate around 15 million fry. “With regards to pumping, a new tank has been installed that will distribute water to the entire plant, as well European as a powerful fi ltration system than can reduce emissions from seabass, 35% disposals,” he said. Last year, Predomar - which is owned by the 75,266 Greek company Nireus - ended the year with a turnover of EUR Gilthead 5.5 million, 22% more than in 2009 (EUR 4.5 million). At present, seabream 65% Predomar markets its seabass and seabream to national aquaculture 140,838 companies in order to continue with the fattening phase of the fry. “Overall, our market is in Murcia, Valencia and the Canary Islands,” stated the businessman. With regard to the crisis in the sector, Llorens admitted that it is affecting them as much “as Source: FAO 2008 everyone,” but emphasized the support from its parent company in Greece, which will “guarantee continuity.” Source: FIS.COM

34 Globeﬁ sh Highlights April 2011 SALMON

Salmon production in 2010 less than half in Chile

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

As already mentioned in previous issues, the Production industry has gone through stringent transformations, which are expected to place it on the road to a sound Farmed salmon: World recovery. However, the new structure has been criticized 2006 2007 2008 2009* 2010* already by the coho salmon and trout producers as having (1 000 tonnes) higher production costs. Nevertheless, some companies ATLANTIC SALMON are aiming to double production in 2011, while others Norway 600 725 790 880 860 consider the Chilean salmon sector as set for a longer term recovery, with higher production, and a recovery Chile 370 355 360 180 90 of profi tability. Some forecasts, such as the one stated UK 125 140 145 150 155 by representatives of the industry at the North Atlantic Canada 115 110 110 120 125 Seafood Forum, expect that the 2007 level of output will Faeroe Is. 13 20 25 30 35 be reached by 2013. Australia 16 20 20 20 22 Ireland 15 15 15 15 18 Lower supply refl ected in lower exports, USA 10 12 12 15 18 while trade directions shift Others 3 3 3 5 5 Total 1 267 1 400 1 480 1 415 1 328 The lower availability of raw material was refl ected in a 20% drop in exported volumes, totaling 297 200 PACIFIC SALMON tonnes of salmon and trout sold to foreign markets. It Japan 10 10 10 10 10 is important to note that trout has surpassed Atlantic Chile 115 120 113 120 125 salmon as the main exported species, accounting for Canada 10 8 7 7 8 42% of total volumes traded, and an even higher share in New total exported value (44%). Overall exports of salmon and Zealand 10 10 10 10 11 Total 145 148 140 147 154 Gr. Total 1 412 1 548 1 20 1 559 1 482 Salmon fi llet prices (FOB Miami, chilled, Source: GLOBEFISH AN 12201 * estimate C-trim, Alt. fresh, 3-4 bs)

6.50

6.00 trout fell 2% in terms of value, totaling USD 2 061 million, 5.50 following increases in average unit prices (of +21.5% for Atlantic and Coho salmon, and of +19% for trout). 5.00

4.50 Perhaps more noteworthy is the shift in the direction of trade. Japan is still the main destination both in 4.00 volume and value, with 144 000 tonnes worth USD 909 million. However, Latin America is now placed second, 3.50 above the US, in terms of quantity, with 50 640 tonnes against 45 200 tonnes. However, the situation is the 3.00 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 opposite in terms of value, while US purchases fell 20%

Globeﬁ sh Highlights April 2011 35 SALMON

Exports (quantity) Exports (unit value) Salmon and Trout: Chile Salmon and Trout: Chile 2008 2009 2010 2008 2009 2010 2005 2006 2007 2008 2009 2010 1 000 tonnes million USD (USD/kg) Japan 163 153 144 708 825 909 Salmon 4.4 5.8 6.0 5.6 5.6 6.8 USA 108 69 45 795 554 448 Frozen 4.2 5.4 5.5 5.1 5.1 6.0 EU (25) 43 25 9 284 160 72 Fresh 4.6 6.8 6.7 6.4 6.7 8.3 Lat.America 53 57 51 268 290 347 Canned 6.0 5.8 6.7 6.2 6.7 8.1 Others 79 65 49 335 273 285 Salted 4.4 6.1 7.0 6.7 5.5 6.3 Total 446 369 297 2391 2101 2061 Smoked 9.8 11.6 12.7 12.7 13.0 14.3 Source: Boletín de Exportaciones del IFOP Trout 4.7 5.2 4.7 4.8 6.0 7.2 Frozen 4.5 5.2 4.5 4.6 5.7 6.9 Fresh 5.0 6.2 6.1 5.8 7.1 7.9 Exports (quantity) Canned 9.0 6.1 5.5 5.0 7.3 9.3 Salmon and Trout: Chile Salted 4.7 4.8 4.9 10.0 5.7 6.2 2005 2006 2007 2008 2009 2010 Smoked 5.2 9.2 9.8 10.3 12.0 12.8 (1 000 tonnes) Average 4.5 5.7 5.8 5.4 5.7 6.9 Salmon 309.0 291.5 284.7 320.8 270.2 170.9 Source: Boletín de Exportaciones del IFOP Frozen 201.7 201.7 183.4 212.4 195.8 115.8 Fresh 98.5 85.0 94.4 100.8 65.3 49.1 Canned 5.0 3.5 3.2 3.4 2.7 1.1 to USD 448 million, 20% growth in purchases from Latin Salted 0.6 1.3 0.8 0.9 3.7 2.4 America to USD 347 million was not enough to surpass Smoked 2.5 2.6 2.9 3.3 2.7 2.5 the US market. Interestingly, Latin American demand is driven by Brazil, which represents 76% of total trade in Trout 74.7 93.3 111.1 124.8 99.1 126.2 quantity. The region has become an important market for Frozen 67.9 86.1 103.2 115.8 88.3 107.4 Chilean salmon, helped by strong economic performance, Fresh 0.7 1.0 3.1 5.5 5.9 12.7 which is translated in a higher purchasing power. After Canned 3.6 0.2 0.2 0.2 0.1 0.1 Japan, Latin American markets showed a lower reduction Salted 2.0 1.8 0.9 0.1 1.5 3.0 in traded volume (-11%). Another difference is that, while Smoked 0.5 4.2 3.7 3.3 3.3 3.0 Japan is focused on trout and coho salmon, Brazil demands Total 383.7 384.8 395.8 445.6 369.2 297.2 Source: Boletín de Exportaciones del IFOP

Imports Exports (value) Salmon: Japan Salmon and Trout: Chile Fresh Frozen 2005 2006 2007 2008 2009 2010 2008 2009 2010 2008 2009 2010 (million USD) (1000 tonnes) Salmon 1 369 1 695 1 715 1 797 1 507 1 159 Atlantic 20.0 20.7 20.0 4.4 5.0 1.1 Frozen 854 1088 1015 1085 997 691 Norway 15.6 18.6 18.0 1.0 0.7 0.5 Fresh 455 578 636 643 436 408 UK 0.5 0.4 0.4 0.0 0.0 0.0 Canned 30 20 22 21 18 9 Chile - - - 3.0 3.9 0.2 Salted 3 8 52 6 21 15 Australia 1.1 1.1 1.3 0.0 0.0 0.0 Smoked 24 31 37 42 35 36 Denmark - - - 0.3 0.3 0.4 Trout 352 484 523 594 594 902 Paciﬁ c 0.6 0.6 0.8 126.9 123.2 127.2 Frozen 305 428 463 527 504 744 Canada 0.1 0.1 0.1 0.7 0.7 6.7 Fresh 3 8 19 32 42 101 USA 0.0 0.0 0.0 18.1 21.3 24.0 Canned 33 1 1 1 1 1 N. Zealand 0.6 0.5 0.7 0.7 2.0 1.6 Salted 10 9 4 1 8 19 Chile - - - 80.9 77.6 71.1 Smoked 1 39 36 34 39 39 Russ. Fed. - - - 26.4 21.8 25.0 Total 1 721 2 179 2 238 2 391 2 101 2 061 Total 20.6 21.3 20.8 131.3 128.2 128.3 Source: Boletín de Exportaciones del IFOP Source: Japanese national import statistics

36 Globefi sh Highlights April 2011 SALMON mainly Atlantic salmon. Some recent developments, such Imports as the Free Trade Agreement signed with Nicaragua, indicate that the region is acquiring a position that it Salmon: USA is likely to retain. In the meantime, import by the EU 2005 2006 2007 2008 2009 2010 has fallen to 8 700 tonnes worth USD 72 million, which (1 000 tonnes) represents a marginal position in overall trade of salmon Fresh fi llets and trout during 2010, displaced by the consolidation of Norway 1.3 2.6 2.3 2.3 18.8 22.7 Latin America and the other main markets. Chile 83.5 71.8 80.1 76.4 41.5 21.5 Demand seems not to be a problem for Chilean Canada 11.2 6.3 4.2 5.4 5.0 6.8 salmonids Other 2.1 2.6 4.4 2.3 8.3 6.5 Total 98.1 83.3 90.1 86.3 73.5 57.5 Despite higher prices, demand for Chilean products All salmon 232.8 242.7 250.2 241.8 241.9 234.1 does not seem to decrease. At the beginning of the Source: GLOBEFISH AN 11630 year japanese consumption of fi shery products was showing signs of recovery. However, the impact that the earthquake and following tsunami will have on demand in the Japanese market is still to be seen. In contrast, the Latin American region and other emerging economies are fresh fi llets with a 39% share, and the third supplier of taking a leading role. This could imply that in the mid- frozen fi llets with a 17% share, after China (25%). term, as long as production recovers, pressure on prices could be higher, as the Chilean industry would have to Prices of fresh fi llets showed signifi cant increases supply the markets that it has managed to keep, as well from mid November 2010, and have remained stable as those that is has gained in the recent years. from the beginning of 2011 until mid February, when they began to increase again. By mid-March quotations for Lower salmon imports in the US Norwegian salmon were 20% higher both for Norwegian and Chilean fresh fi llets. Frozen fi llets, on the contrary, Overall imports of salmon in the US in 2010 fell 3% in have remained stable since prices showed a minor volume totaling 234 000 tonnes, but given a 12% increase reduction at the beginning of the third quarter 2010. in unit value, the value of imports totaled USD 1 822 million (+8%). Imports of Atlantic salmon accounted for Good outlook for domestic production 75% of total imported volumes and 78% of total value, with 176 400 tonnes worth USD 1 439 million. The average Recently, a fi shermen’s cooperative from Alaska unit value of Atlantic salmon imports grew 14% in a year- obtained Friend of the Sea certifi cation for its king and on-year comparison. coho salmon fi sheries. The cooperative uses the trolling method, enabling each fi sh to be captured individually. The US Atlantic salmon market was dominated by According to Alaskan authorities, the outlook for the three main players, Canada, Norway and Chile; however, 2011 season is very good, as a result of a combination of each country focuses on different market niches. Canada favourable environmental conditions and the management accounted for 44% of total Atlantic salmon imports, and measures adopted. It is forecast that 203 million fi sh supplied mainly fresh whole salmon (91% of total sales will be caught this season. Captures of pink salmon are to the US). Norway was placed second, with a 20% share expected to grow 25% to 133.7 million fi sh, while sockeye in terms of volume, focusing on the fi llet market, with salmon captures are forecast to be 45 million fi sh (+11%). 66% of exports to the US being frozen fi llets, while 33% Californian authorities also expect good salmon runs this were fresh fi llets. As for Chile, the market trend is similar year, and preliminary projections indicate that captures to that of Norway, although the focus on fresh fi llets is could grow as much as 200%, from the 245 000 fi sh more pronounced; 78% of Chilean exports to the US were projected in 2010 to 729 000 fi sh. fresh fi llets, while 16% were frozen fi llets. Recently, the Norwegian salmon industry announced its intention of Higher supply seems likely in the US market resuming actions against the imposition of anti-dumping duties on whole salmon exports to the US, effective since The recovery of the Chilean industry, as well as the 1991. This could help Norwegian producers regain market positive outlook for domestic salmon fi sheries, indicates share in this segment. that supply of salmon to the US market could be higher in 2011. This, despite targeting different market segments, In 2010, Norway was the top supplier in both the could ease the pressure on prices, which have shown an fresh and frozen Atlantic salmon fi llets segments, with upward trend in the fresh fi llets segment, while the whole 41% and 44% shares respectively. Chile, once the main fi sh markets have remained stable with a slight upward player in both segments, is now the second supplier of trend in some products. Currently, supplies are adequate

Globeﬁ sh Highlights April 2011 37 SALMON

Prices However, values were up 17.1% to NOK 7.5 billion (EUR Salmon: Europe, origin: Norway 1.0 billion) as a result of the higher prices.

7.00 Export volumes to the EU, Norway’s largest market EUR/kg with 65% of sales, declined slightly (-3.6%) during the 6.00 5-6 kg quarter but volumes shipped to the US fell dramatically, from 13 700 in 2010 to 7 900 this year (-43%). The reason 5.00 for the latter is improved conditions in Chile with Chilean

4.00 salmon exports to traditional markets increasing again, including to the USA.

3.00 2-3 kg The comeback of Chile in the US market is seen 2.00 particularly in the fresh fi llet market where Norway’s shipments dropped 58% during the quarter. Norway’s fresh 1.00 fi llet exports to the Japanese market, however, showed a Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 dramatic increase of 73%. Source: EPR; GLOBEFISH AN 10512, 10514 Fresh, gutted, head-on, 3-5 kg/pc Norway’s fi rst quarter trout exports in 2011 were down in both value and volume. Average export prices rose 27%. The main markets for Norway’s trout, Russia and Japan, were both weaker during the quarter, whereas trout shipments to the EU grew by a surprising 27%. for slow demand. This could drive prices down, which, in the mid-term, could see demand pick up. UK

EU Salmon export volumes from the UK rose a healthy 14% in 2010. France, traditionally its main market for Reduced production levels in 2010 caused a tight salmon fresh exports, grew by 21% but since 2009 has been market with high prices. Demand was good throughout overtaken by the US, which has seen imports from the UK the year in spite of some resistance from processors and and Norway bounce upwards as a result of the cut-back consumers to the more expensive value-added products. in Chile’s production. In 2011, despite the usual weekly fl uctuations, Atlantic salmon prices have been remarkably stable Markets during the fi rst quarter, oscillating around NOK 40 CFA Oslo. The forward market expects Atlantic salmon prices EU to soften somewhat over the next quarter and then drop during the autumn and winter. Similarly, 2012 and 2013 The EU is still growing in terms of salmon consumption forward prices (in NOK) are expected to be 23% and 33% although the high price for Atlantic salmon is forcing lower than present levels. processors in particular to look for alternatives. This explains in part the strong growth in imports of frozen The trout market remains undersupplied as salmon products from China. Cost is also driving the Norwegian farmers give priority to salmon production and outsourcing of the smoking industry to Poland and the Chile’s producers are still much below historic production Baltics. During the fi rst quarter of 2011, Norway’s salmon levels. exports to EU-27, although up in value by 17%, fell back almost 4% in volume. Norway France The leading producer and exporter of Atlantic salmon saw export volumes grow close to 10% in 2010. France, the largest market for salmon in the EU, Higher prices during the year led to a signifi cant increase grew by 4% in volume in 2010. The fresh categories are in values, up 33% to NOK 30.5 Billion. Trout exports showing the strongest growth, partly because of the dropped 35% in volume as producers switched to salmon decline in Chilean frozen salmon exports. Norway remains because of the high prices. As a result, trout prices also the principal supplier dominating the fresh whole (71%) strengthened during the year. and fresh fi llet (91%) categories.

Norway’s exports of Atlantic salmon in January-March The rapid growth of China’s frozen fi llets 2011 were 207 000 tonnes (round weight equivalents), exports, which has now reached 40% of imports, slightly down (-3.1%) from the same period in 2010. issignifi cant. A large share of this is Pacifi c species

38 Globeﬁ sh Highlights April 2011 SALMON

rather than Atlantics. Exports Salmon: UK (by product and country) In the smoked category, Poland dominates with 73% of French imports. All other foreign suppliers, including 2005 2006 2007 2008 2009 2010 Scotland, have seen their share diminish as a result. (1 000 tonnes) This is all the more remarkable as the share of Poland only a few years back was less than 5% of the import FRESH ------market. French domestic smokers continue to target the France 24.7 17.9 17.7 18.2 18.8 22.8 top segments but are more affected by higher costs than USA 5.3 8.1 13.8 13.9 22.8 27.4 foreign suppliers. Ireland 3.4 2.6 5.1 4.2 4.7 3.7 Germany 1.7 2.6 3.0 2.4 2.1 2.1 During the fi rst quarter of 2011, Norway’s exports to Others 6.3 7.6 6.1 6.6 7.8 11.1 the French market dropped. Total 41.3 38.7 45.8 45.4 56.3 67.1 FROZEN ------Germany France 0.1 3.0 5.0 3.6 1.4 2.4 German import volumes were fl at in 2010 (+0.6%) Russian Fed. 1.1 1.5 3.0 0.1 1.2 2.2 after a large increase in 2009 (+19%). The German market Others 1.2 1.0 2.0 3.6 6.4 3.2 is price sensitive and demand was held back by high prices Total 2.4 5.6 10.0 7.3 8.9 7.8 throughout the year. Norway dominates overall followed CANNED ------by Poland, which has captured the smoked segment. Ireland 0.6 0.5 0.7 0.8 1.0 0.8 China is also showing strong growth in the frozen category, Others 0.2 0.6 0.5 0.6 0.5 0.4 reaching almost 18 000 tonnes last year. Total 0.8 1.0 1.2 1.4 1.5 1.2 During the fi rst quarter of 2011, Germany’s imports Gr. Total 44.6 45.3 57.1 54.1 66.6 76.1 from Norway fell back 4% in volume. Source: EUROSTAT/National Statistics

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

Chum(=Keta=Dog) Coho(=Silver) salmon salmon 5% 6% Sockeye(=Red) 121 623 salmon 126 275 6% 136 311

Pacific salmons nei 7% 167 500

Pink(=Humpback) salmon 2% Atlantic salmon 64% 282 693 459 683

Source: FAO

Globeﬁ sh Highlights April 2011 39 SALMON

Japan industry are ambitious but whether the rapid projected growth can be sustained long-term is still open to debate, Imports were ﬂ at in 2010 in both the fresh and both in Chile and in Europe. Prices will therefore remain frozen categories. Norway dominates the fresh Atlantic high for most of the year and only weaken when additional segment and Chile the frozen Paciﬁ c category. Imports supplies from Chile reach the market during the second from Chile were only slightly down from 2009 (-8.3%), half. as Chilean producers continues to give priority to the Japanese market for its coho exports in particular.

Outlook Imports Chile’s salmon production is increasing but it is Salmon: Germany (by origin) unclear how much will come to market this year. The 2005 2006 2007 2008 2009 2010 production goals for 2012 and 2013 set by Chile’s salmon (1 000 tonnes) Norway 54.4 48.9 48.9 40.7 51.7 57.9 Poland 12.3 13.7 15.5 19.4 28.0 25.1 Imports China 4.8 8.6 10.9 12.3 13.7 17.7 Salmon: France Denmark 9.6 8.5 8.5 8.3 8.6 8.1 2006 2007 2008 2009 Chile 14.6 15.7 14.5 13.3 7.9 2.0 (1 000 tonnes) Others 14.8 16.1 12.0 10.2 13.9 13.8 Fresh salmon 86.2 88.5 90.7 107.4 110.7 Total 110.5 111.5 110.3 104.3 123.8 124.6 Norway 59.1 63.3 64.6 74.0 78.9 Source: Statistisches Bundesamt UK 18.8 17.8 17.6 19.3 21.0 Denmark 3.0 1.9 1.6 2.1 1.9 Ireland 2.5 2.3 2.2 3.8 4.8 Imports Spain 0.3 0.5 0.3 0.4 0.5 Faroe Isl. 0.1 0.3 1.8 1.6 0.5 Salmon: Germany (by product) Froz. Pacifi c salmon 5.9 5.3 4.1 3.7 3.4 2006 2007 2008 2009 2010 USA 5.6 5.3 2.8 3.1 3.0 (1 000 tonnes) Fresh salmon 47.9 47.0 38.0 48.0 49.2 Canada 0.2 0.1 0.2 0.3 0.1 Frozen salmon 7.2 4.7 3.5 4.8 4.3 Froz. Atlantic salmon 4.9 4.5 3.1 3.3 4.6 Smoked salmon 16.4 18.0 22.0 31.7 28.7 Denmark 3.6 0.5 0.4 0.1 0.1 Fresh fi llets salmon 6.5 6.2 6.2 7.8 7.8 UK 0.3 0.6 0.7 1.4 2.0 Frozen fi llets salmon 33.5 34.5 33.7 31.5 31.5 Norway 0.3 0.7 1.0 0.9 0.9 Salted salmon 0.0 0.0 0.0 0.0 0.0 Smoked salmon 5.0 4.1 4.8 5.7 7.3 UK 2.1 1.0 0.9 1.0 0.7 Total 111.5 110.4 103.4 123.8 121.5 Poland 0.2 2.4 2.8 3.4 5.3 Source: Statistisches Bundesamt Fresh fi llets salmon 5.2 5.0 6.1 9.7 10.6 Norway 4.3 3.6 5.2 8.2 9.6 Denmark 0.5 0.3 0.4 0.3 0.2 Belgium 0.2 0.3 0.0 0.1 0.0 Exports (quantity and value) UK 0.1 0.2 0.3 0.5 0.5 Salmon and Trout: Norway Frozen fi llets salmon 18.3 18.9 19.6 21.3 20.6 2008 2009 2010 2008 2009 2010 Chile 9.2 9.1 8.8 9.0 3.8 (1 000 tonnes) (bill. NOK) China 3.6 3.5 4.5 5.8 8.2 Salmon 597.5 685.9 751.4 17.2 23.0 30.5 USA 1.3 1.7 1.3 1.2 1.1 Fresh 514.8 568.0 615.0 13.8 17.5 23.1 Denmark 1.1 0.5 0.3 0.6 0.9 Frozen 32.7 32.1 35.9 0.9 1.0 1.4 Norway 1.0 1.7 2.1 2.5 3.0 Fresh fi ll. 35.2 57.1 67.0 1.6 2.7 3.7 Faroe Isl 0.8 0.8 0.7 0.4 0.4 Froz. fi ll. 14.8 28.7 33.5 0.9 1.8 2.3 Grand Total 125.4 126.3 128.4 151.1 157.2 Trout 73.7 61.3 40.0 1.8 1.9 1.6 Source: National Statistics Source: Norwegian Seafood Export Council

40 Globeﬁ sh Highlights April 2011 SMALL PELAGICS

Mackerel wars continue into 2011

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

Mackerel Norway, have been exporting lower quantities over the past three years. The Faroe Islands caused considerable consternation when they set their own mackerel quota of 150 000 Exports of mackerel from Norway declined again tonnes for this year, up from 85 000 tonnes last year. As last year, continuing the trend over the past two years. a reaction to this unilateral decision by the Faroes, the Total Norwegian exports of frozen mackerel fell from 189 EU was reported to be considering imposing a ban on 000 tonnes in 2009 to 178 800 tonnes in 2010, just above the imports of Faroese seafood products. However, the half of the export level in 2007. Faroes responded by saying that such a ban would have little impact on its industry. During the fi rst two months of 2011, however, frozen mackerel exports have increased again. During January For 2011 the coastal states have failed to reach a and February, a total of 41 500 tonnes were exported multilateral agreement on mackerel quotas, and this from Norway, compared with 32 700 tonnes during the has led to the major fi shing nations setting high quotas. same period last year. The average FOB export price Before the Faroese announcement, the quotas set by went up from NOK 9.89 to NOK 11.12 per kg. The largest Iceland, Norway, Russia and the EU already exceeded markets were Russia (8 000 tonnes), China (6 900 tonnes) the recommendation by the International Council for the and Turkey (6 200 tonnes) Exploration of the Sea (ICES). The projected 2011 quota allocations amount to 947 000 tonnes, far above the Russia is emerging again as an important market 646 000 tonnes recommended by ICES. for mackerel. In fact, Russian imports of pelagics have shifted from being composed mainly of herring and If the Faroes land their quota, more mackerel will capelin, to mackerel. In 2010, Russia imported 107 925 enter the markets, but this is not expected to have much tonnes of frozen mackerel, constituting 36.5 % of the impact on prices, as the largest exporter of mackerel, country’s imports of pelagics, compared with 21.4% in 2007. However, Russian imports of pelagic fi sh have declined by 22.5% over the past four years, so it looks as if mackerel is capturing market share from other small Exports pelagics on the Russian market. The fact is that Russian Frozen Mackerel: Norway domestic landings of mackerel have increased gradually 2005 2006 2007 2008 2009 2010 over the past years, from 72 000 tonnes in 2008 to over (1 000 tonnes) 98 000 tonnes in 2010. At the same time, imports of Japan 78.1 45.0 119.7 118.1 51.4 47.0 mackerel into Russia have grown from 60 000 tonnes in 2008 to almost 108 000 tonnes in 2010. Thus, the Russian China 40.7 25.4 60.2 66.3 33.5 30.5 market for mackerel is indeed growing. Ukraine 7.6 10.6 39.2 20.6 13.0 20.4 Russ. Fed. 9.7 20.1 35.0 33.0 20.0 19.2 Germany, another major importer of frozen Turkey 7.8 8.0 26.0 20.8 18.2 17.7 mackerel, increased its imports by over 26% in 2010, to Poland 3.6 4.8 4.3 12.2 12.1 11.2 13 400 tonnes. The main supplier to the German market Korea Rep. 2.3 4.7 14.8 6.2 7.7 7.6 was the Netherlands, followed by Ireland and the UK. Others 14.4 22.0 40.0 57.3 33.1 25.2 While mackerel prices have been declining for some Total 164.2 140.6 339.2 334.5 189.0 178.8 time, some observers are now expecting a turn-around Source: Norwegian Seafood Export Council and that prices will increase.

Globeﬁ sh Highlights April 2011 41 SMALL PELAGICS

Imports Norwegian herring export prices (FOB Norwegian border) Frozen Mackerel: Germany

2005 2006 2007 2008 2009 2010 1.80 EURO/kg

(1 000 tonnes) 1.60

Netherlands 1.1 1.3 1.9 2.0 2.5 3.6 1.40 Ireland 2.8 0.8 1.2 1.0 3.7 3.2 flaps* 1.20 UK 1.5 1.2 0.3 1.8 1.2 1.3 1.00 Denmark 1.0 0.7 1.4 1.4 0.8 1.3 0.80 Others 1.1 2.0 0.4 1.8 2.4 4.0 0.60 Total 7.5 6.0 5.2 8.0 10.6 13.4 whole** 0.40 Source: Statistisches Bundesamt 0.20

0.00 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Source: Norwegian Seafood Export Council Catches of horse mackerel and jack mackerel in the South Pacifi c and the North Atlantic have been declining over the past four to fi ve years, and this decline will continue in 2011, according to projections. This will by almost 32%. At the same time, average FOB export undoubtedly lead to further price increases. However, prices increased from NOK 3.71 per kg during the fi rst it is not expected that prices will go up by more than two months of 2010 to NOK 5.59 for the same period in approximately 5-7%. 2011, and prices are still climbing. Herring prices are now higher than at any time since 2001 – 2002, except for the Herring short peak in the middle of 2008. Prices in February this year were on average 56% higher than in February last year. The supply situation for herring is probably going to be a lot tighter than it has been in the recent past. The largest markets for frozen Norwegian herring Projected catches of Atlantic herring for 2011 are well are Nigeria (23 000 tonnes during the fi rst two months below last year. This is in spite of positive reports about of 2011), Ukraine (12 000 tonnes) and Russia (12 000 herring stocks. In fact, at the North Atlantic Seafood tonnes). Forum in early March, one speaker predicted a massive decline in landings, and a corresponding rise in prices.

The major supplier of herring, Norway, saw an 8% decline in exports of frozen herring in 2010. This trend Imports has strengthened in 2011. During the ﬁ rst two months of Frozen Herring: Germany the year, Norwegian exports of frozen herring declined 2005 2006 2007 2008 2009 2010 (1 000 tonnes) Norway 5.7 6.4 12.9 7.8 15.4 20.9 Exports Netherlands 6.0 2.4 2.7 2.3 2.8 2.8 Frozen Whole Herring: Norway Denmark 21.7 17.9 4.1 4.3 3.8 2.7 2005 2006 2007 2008 2009 2010 Ireland 4.9 3.8 3.6 2.2 2.1 2.1 (1 000 tonnes) Canada 3.4 0.5 5.2 0.5 0.7 0.7 Nigeria * 3.1 20.1 138.5 115.5 118.0 UK 12.2 3.3 7.0 1.1 0.5 0.5 Russ. Fed. 195.9 150.6 207.5 163.4 134.7 114.1 Others 3.1 1.4 2.9 0.7 3.8 3.9 Ukraine 109.0 88.2 89.2 79.4 87.8 56.8 Total 57.0 35.7 38.4 19.1 29.0 33.5 Lithuania 7.7 9.5 11.3 15.3 20.2 20.7 Source: Statistisches Bundesamt Netherlands 11.2 12.9 15.7 13.0 14.1 17.6 Poland 4.9 4.8 3.2 3.8 5.3 4.9 Belarus 9.1 7.7 10.2 7.9 8.4 3.8 USA 1.8 1.4 0.6 0.3 1.0 0.6 Germany imported more frozen herring last year. Others 27.2 44.6 42.5 69.9 59.0 73.9 Total imports increase from 29 000 tonnes to 33 500 Total 366.8 322.8 400.3 491.5 446.0 410.4 tonnes (+15.5%). Practically all of this increase came Source: Norwegian Seafood Export Council from Norway.

42 Globeﬁ sh Highlights April 2011 SMALL PELAGICS

Exports of herring fi llets from Norway have of this increase was absorbed by the leading supplier to increased, especially to Germany. During the fi rst two Japan, the USA. months of 2011, a total of nearly 49 500 tonnes of herring fi llet exported, and at very high prices. The average FOB export price was NOK 9.93 per kg, up from NOK 6.78 during the same period in 2010. Germany was the largest Imports market for Norwegian herring fi llets during this period, French herring and Germany alone imported over 22 000 tonnes. 2007 2008 2009 2010 (tonnes) Norway 3 329 2 488 4 146 4 273 Exports Iceland 1 298 3 609 1 280 1 809 Dutch herring UK 2 021 605 644 283 2004 2005 2006 2007 2008 2009 Netherlands 636 763 275 767 (1 000 tonnes) Denmark 301 86 122 158 Nigeria 120.7 98.5 109.4 82.4 51.0 48.9 Others 236 750 151 116 Egypt 18.0 39.1 15.6 16.0 14.3 23.6 Total 7 821 8 301 6 618 7 406 China 14.0 2.6 6.2 4.9 5.4 10.1 Germany 2.5 3.9 3.2 3.4 4.6 2.0 Japan 1.3 1.5 1.2 0.9 0.6 1.1 Malta 4.8 7.7 5.6 8.4 0.7 1.0 France * 1.2 1.1 1.2 1.3 0.9 Imports UK * 0.5 1.4 0.7 0.8 0.8 Fresh and Frozen Herring: Japan Lithuania * * * 2.5 1.5 0.7 2005 2006 2007 2008 2009 2010 Thailand * * * 0.3 0.6 0.5 (1 000 tonnes) Spain * 0.7 3.6 0.3 0.2 0.3 USA 25.9 27.6 16.1 21.4 21.9 26.4 Romania * 1.6 1.6 0.8 0.4 0.3 Russia 9.7 9.0 5.9 8.1 5.0 5.4 Belgium 0.8 0.6 0.6 0.6 0.6 0.2 Norway 4.0 4.5 3.9 4.3 3.6 3.3 Poland 3.7 2.3 0.8 0.7 0.7 0.2 Netherlands 1.6 1.3 0.8 0.7 0.6 0.6 Cote d’Ivoire 2.6 0.6 0.5 1.2 0.6 0.1 Korea Rep 0.0 0.0 0.0 0.4 0.4 0.0 Italy * 1.3 3.1 3.0 0.3 0.1 Others 0.6 0.4 0.9 0.1 0.4 0.8 Israel * * * 0.7 0.6 0.0 Total 41.8 42.8 27.6 35.0 31.9 36.5 Russian Fed. * 1.8 1.9 0.8 0.2 0.0 Source: National Statistics Others 28.1 16.2 7.6 2.4 1.5 1.0 Total 196.5 180.1 163.4 131.3 86.0 91.9 Canned sardines

Mixed trends can be observed on the markets for While Norwegian herring exports fell in 2010, canned sardines. While the UK has shown strong growth in Dutch exports rose slightly, from 86 000 tonnes to 91 imports of this product, Germany and France registered a 900 tonnes (+6.9%). Dutch exports to Nigeria, however, decline of 12% in imports in 2010 compared with 2009. fell signifi cantly, while exports to Egypt rose by 65% and exports to China doubled. For France and Germany, Morocco is the major supplier, while Portugal has moved into fi rst place as France also increased its imports of frozen herring, supplier to the UK. However, Morocco plans to increase although the total volume was relatively low. Imports its role as supplier of canned sardines to world markets. rose from 6 618 to 7 406 tonnes. Again, Norway was the In the so-called Halieutis Plan, which was updated and leading supplier, and increased its market share, as did presented at the Halieutis Trade Show in Agadir towards the Netherlands, while the UK saw a signifi cant drop in the end of January, it was pointed out that there are large exports of frozen herring to France. resources of sardines in the country’s southern waters, and that these have not been fully exploited so far. The Japan, which has been an important market for fresh country is planning to invest heavily in the development and frozen herring and herring roe, saw a turn-around of its fi sheries, especially in the south. in the trend of declining imports that has characterized this trade in recent years. Imports increased from 31 900 However, the development in the south may well be tonnes in 2009 to 36 500 tonnes in 2010. Practically all jeopardized by a dispute with the Polisario, the Southern

Globeﬁ sh Highlights April 2011 43 SMALL PELAGICS

Imports Canned sardine: Germany SMALL PELAGICS NEWS 2005 2006 2007 2008 2009 2010 (1 000 tonnes) USA: GULF OF MEXICO MENHADEN CATCH DOWN 17% Morocco 10.5 12.3 8.8 9.7 6.7 5.2 Netherlands 0.4 0.2 0.6 0.5 0.7 0.9 Gulf of Mexico menhaden landings fell 17% in 2010 and producers cite the disruption caused by the Deepwater Portugal 0.3 0.3 0.5 0.7 0.1 0.0 Horizon oil spill curtailed the season. “Clearly we had a Others 0.9 0.5 0.5 0.9 0.8 1.2 rough go of it,” said Ben Landry, spokesman for Omega Total 12.1 13.3 10.4 11.9 8.3 7.3 Protein, which operates a processing facility in Moss Point. Landry told The Mississippi Press that the company believes Source: Statistisches Bundesamt the season’s lower-than-average catch was due to the water closures rather any problems with the menhaden population. The National Oceanic and Atmospheric Administration reports that the 2010 menhaden season saw 379 727 tonnes landed Imports at four Gulf of Mexico sites, compared with 457 457 tonnes in 2009. The landings were down 15% from the fi ve-year average Canned sardines: France of 446 982 tonnes. The season was strong when the Gulf’s menhaden boats were free to fi sh, Landry said. But fi shing 2005 2006 2007 2008 2009 2010 was closed for much of July and August, except for a small (1 000 tonnes) area in southwest Louisiana waters. Menhaden are processed Morocco 12.0 13.1 10.6 12.8 13.6 11.3 into meals and oils used in products for humans, animals and plants. Last year’s season opened 19 April the day before the Portugal 2.1 2.6 3.0 3.4 4.0 4.1 Deepwater Horizon rig exploded, unleashing the spill and Spain 1.2 0.9 1.1 1.2 0.7 0.9 setting in motion a wave of fi shing closures in the northern Gulf. “Once the fi shing grounds were reopened in October, Others 0.6 0.2 0.4 0.7 0.7 0.5 we had a very strong October,” Landry said. “It was one of Total 15.9 16.8 15.1 18.1 19.0 16.7 the most productive Octobers on record. We were able to minimize some signifi cant damages with a good October, but Source: National Trade Statistics you still saw a signifi cant drop-off from the fi ve-year average and year-to-year catch.” The company expects the season Sahara independence group. Polisario recently claimed will have a normal reopening in April, he said. Omega Protein that the EU is fi shing illegally in Western Sahara waters has made an oil-spill damage claim to the Gulf Coast Claims Facility, he said. Omega Protein plans to operate eight fi shing under an agreement between Spain and Morocco. The vessels and three run boats from its Moss Point facility this Polisario claim is supported by the European Parliament, year, Landry said. Overall, it expects to have 26 fi shing vessels which recently issued a legal report that determined in the Gulf. Source: INTRAFISH that the agreement was not respecting international law. UK: SCOTTISH HERRING PELAGIC TRAWL FISHERY IN MSC Thus, development of fi sheries in this region may run into ASSESSMENT diffi culties. The Scottish Pelagic Sustainability Group (SPSG) has entered its West of Scotland herring pelagic trawl fi shery into MSC assessment. If the fi shery is successful, it will mean that all Imports of the SPSG’s key landings will be MSC certifi ed. The SPSG already holds MSC certifi cates for its North Sea herring, Canned sardine: UK Atlanto-Scandian herring and North East Atlantic mackerel 2005 2006 2007 2008 2009 2010 fi sheries. In total, the fi sheries land around 200 000 tonnes of fi sh. The SPSG was established in 2007 in response ( 1 000 tonnes) to an increasing demand from buyers for seafood that Morocco 4.7 8.0 6.9 5.4 3.5 4.7 is demonstrably sustainable. It represents all sectors of Portugal 1.7 3.6 5.0 5.7 3.4 5.0 Scotland’s pelagic industry, from catching and processing, through to marketing, and encompasses all of Scotland and 3.5 Northern Ireland’s 28 pelagic trawlers. John Goodlad, SPSG Others 7.6 3.0 6.5 3.0 1.7 1.0 Chairman says: “At our recent board meeting the directors unanimously agreed to enter the West of Scotland herring Total 14 14.6 18.4 14.1 8.6 14.2 fi shery for full MSC assessment. SPSG are fully committed to Source: Seafi sh the MSC process, with the aim of having all the main Scottish pelagic fi sheries certifi ed. “After successfully achieving MSC certifi cation for North Sea herring (July 2008), Western mackerel (January 2009) and Atlanto Scandian herring (2010), it was a natural step for us to seek certifi cation for the West Outlook of Scotland herring fi shery. If successful the four main Scottish pelagic fi sheries, accounting for over 98% of pelagic quota Herring supplies are forecast to be down quite by volume and value, will be under MSC certifi cation. It will considerably in 2011 and prices could continue to rise also demonstrate to seafood buyers and to the public, our wholehearted commitment to sustainable and responsible this year. In Norway, indications are that frozen mackerel fi shing practices.” Source: FISHUPDATE.COM exports are on the increase as well as prices, which when viewed in the light of Russia’s current demand for mackerel, could be a positive sign for 2011.

44 Globeﬁ sh Highlights April 2011 FISHMEAL

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

Prices remain high with the price multiplier between China remains the principal destination thanks to its fi shmeal and soymeal at around 4.3. Soymeal prices are growing need for fi shmeal for a number of uses, ranging also high with the market expected to remain tight for from aquaculture feeds to inputs for its livestock and hog quite some time. However, given the weakness of the production. dollar, the high fi shmeal prices are often more acceptable to importers when expressed in local currencies, although Morocco’s fi shmeal exports grew slightly from 91 505 the multiplier always remains the same. tonnes in 2009 to 95 000 tonnes in 2010. New operators have entered the industry with additional production Production capacity added.

The current situation is uncertain with operators Markets watching the development of catch levels in South America closely. Fishing in Peru’s north and central fi shing China areas on a 3.7 million tonnes quota opened in early April but it is still too early to forecast how the season will China, the dominant market for fi shmeal consumption develop. and imports, reported a 21% drop in purchases from abroad in 2010. The high prices during the year forced Norway’s capelin season is coming to an end with operators to look for alternative meals and to increase the quota of 275 000 tonnes virtually exhausted. Iceland the vegetable component in feeds. The value of imports remains off-season with landings for meal and oil starting was still up given the higher prices. up only in early summer. China remains the world’s largest market for fi shmeal. It takes half of Peru’s production and almost 40% of Chile’s. China’s long-term growth in animal Production production including aquaculture underpins demand, and Fishmeal: World despite increasing use of vegetable meals and oils in feed 2005 2006 2007 2008 2009 2010 formulations, its reliance on fi shmeal imports will not decline. (1 000 tonnes) Peru/Chile 2 941 2 232 2 120 2 063 2 039 1 487 Denmark/Norway 376 389 317 302 274 433 Iceland 179 162 135 251 198 225 Imports Total 3 496 2 783 2 572 2 616 2 511 2 146 Source: IFFO Fishmeal: China 2008 2009 2010 2008 2009 2010 (1 000 tonnes) (USD million) Peru 876 730 612 862.8 676.8 965.9 On a global basis, fi shmeal production in the Chile 239 340 131 262.7 344.7 232.0 major producing countries during January and February USA 77 89 67 100.0 111.8 121.1 2011 was slightly higher than last year, up 7%, reaching Thailand 6 7 49 5.1 6.3 68.4 291 000 tonnes. However it is too soon to speculate Russia 49 40 46 72.2 57.1 93.7 whether supply this year will overtake that of 2010. South Africa 13 9 26 13.1 8.7 42.2 Exports Pakistan 13 18 21 9.1 13.5 20.8 Vietnam 2 5 18 1.9 4.3 20.9 With declining catch levels last year, exports from Total* 1 351 1 311 1 042 1 398.9 1 303.3 1 668.2 the major world producers Peru and Chile fell sharply in * (including others) 2010, by 29 % and 47% respectively. For both countries, Source: China Customs/ INFOFISH

Globeﬁ sh Highlights April 2011 45 FISHMEAL

During the winter season demand is reduced but This is a drop of 27% from the previous year but in line with the spring season now under way, requests will grow with volumes reached in earlier years. (In addition to from both aquaculture and other sectors. Inventories are Germany’s own needs for ﬁ shmeal, the country also is an reportedly around 150 000 tonnes, sligthly above the last important player in international meal trade with exports four years average. to a number of other user countries).

EU imports from non-EU producers dropped 24% in Peru is the principal supplier with 70% of the market. 2010. Supply from the dominant producers, Peru and The large increase in imports from Morocco reaching 36 Chile, were both lower as a result of reduced catches 000 tonnes in 2010, or 16% of the total, is noteworthy. whereas shipments from Morocco were up a massive 243% to 52 000 tonnes.

Exports Imports Fishmeal: Peru Fishmeal: EU* 2005 2006 2007 2008 2009 2010 2009 2010 (1 000 tonnes) (1 000 tonnes) China 1049.4 535.2 555.2 831.9 753.9 554.5 Peru 373.3 248.5 Germany 235.9 208.9 166.0 191.9 269.1 136.3 Chike 90.0 58.9 Japan 170.2 174.0 149.7 148.1 117.1 112.2 Morocco 15.1 51.8 Taiwan PC 84.0 57.1 39.3 46.8 61.4 34.5 Norway 34.9 30.3 Viet Nam na na na 63.1 62.5 37.5 Iceland 22.1 18.1 UK na na na 22.7 54.4 32.2 Faroe Is 4.1 10.9 Others 461.9 338.4 349.1 259.5 335.7 177.3 Others 22.6 9.4 Total 2001.4 1313.6 1259.3 1564.0 1537.2 1084.5 Total 562.2 427.9 Source: GLOBEFISH AN 11634 * only imports from non EU countries

Germany is an important hub for northern and western Europe because of its sophisticated terminals in Germany the port of Bremen. Large volumes of fi shmeal from Peru and Chile are shipped in bulk to this port, discharged, Despite a large drop in imports in 2010, Germany controlled for salmonella, cleared for EU customs and remains Europe’s principal shipment destination for fi nally distributed to EU-27 and Norway. fi shmeal with more than 225 000 tonnes imported. Domestic consumption is estimated at around 40 000 to 45 000 tonnes a year.

Imports UK Fishmeal: Germany 2005 2006 2007 2008 2009 2010 Import volumes dropped almost 12% in 2010 and (1 000 tonnes) remain far below historic levels. Peru remains the principal supplier but Denmark has gained market share Peru 200.4 202.1 192.3 131.1 251.1 159.3 in the UK thanks to an increase in production. Denmark 4.2 8.8 3.7 8.6 16.0 13.4 Chile * 1.0 7.1 5.0 15.5 4.8 Use of fi shmeal in the salmon feed industry dropped USA * * * 0.0 9.9 0.0 by 5% because of the high fi shmeal price and other protein Morocco * * * 1.8 5.6 36.0 products used as substitute. France 1.5 2.6 2.0 3.6 4.0 3.7 Norway 1.2 1.0 1.0 0.3 1.0 1.4 Similarly, pig and poultry producers reduced their fi shmeal content in feed. Iceland 6.6 1.2 1.4 7.5 0.0 0.0 Others 17.6 18.7 2.7 7.1 6.6 7.4 USA Total 231.5 235.4 210.2 165.0 309.7 226.1 * included under others US imports were up 12% last year. Chile is the Source: GLOBEFISH AN 11635 principal supplier, more than doubling its exports in 2010

46 Globeﬁ sh Highlights April 2011 FISHMEAL

Imports Exports Fishmeal: UK Fishmeal: Chile 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 (1 000 tonnes) (1 000 tonnes) Peru 23.2 37.6 19.3 25.0 54.3 33.6 China 264 169 189 245 328 120 Denmark 16.1 25.3 12.9 22.0 19.1 29.7 Japan 100 83 65 51 61 55 Germany 15.7 30.8 13.5 8.3 2.5 14.9 Germany 23 33 32 37 30 12 Ireland 11.6 6.0 11.4 9.1 22.1 10.9 Spain 28 28 33 32 30 24 Norway 3.7 7.9 9.8 3.8 2.4 3.6 Rep. Korea 33 30 28 25 30 20 Iceland 33.3 13.6 3.8 10.3 1.7 2.8 Italy 30 26 27 22 26 19 Chile 12.6 10.9 5.0 0.0 4.8 0.3 Taiwan PC 72 50 30 18 21 8 Faroe Is. 10.9 2.3 3.4 7.9 0.0 0.0 Others 154 72 84 58 79 61 Others 9.8 5.0 8.3 4.5 7.5 5.1 Total 709 519 488 487 605 319 Total 136.9 139.4 87.4 90.9 114.4 101.0 Source: GLOBEFISH AN 11625, (*) included under others Source: GLOBEFISH AN 11632, (*) included under others

to the US market. Traditionally, Mexico has been the leading exporter to the US with a market share of around Outlook 50% but this dropped markedly in 2010 to less than 15% because of reduced catches. The long term trend is one of growing demand and fairly stable supply. The short term picture is more In the US, domestic consumption is down as high uncertain and hinges on the catch levels in South America. prices are forcing users to look for cheaper alternatives. Prices will remain high during the year at sizable multiples to soybean for which the market also remains tight.

Sales volume of ﬁ sh feed in Chile is expected to Imports grow about 11% in 2011, according to feed suppliers. This Fishmeal*: USA follows growth of 31% in 2010, indicating the resurgence 2005 2006 2007 2008 2009 2010 of Chilean salmon production. (1 000 tonnes) Chile 6.5 5.9 6.7 5.5 5.9 13.1 Canada 8.7 7.4 6.5 4.4 6.7 6.7 Mexico 11.1 27.6 20.0 22.7 17.9 5.8 Morocco * * * 0.0 0.0 5.7 Peru 14.3 11.2 1.1 0.6 0.5 3.2 Panama 0.8 1.6 0.6 0.3 0.0 0.5 Prices India NA NA NA 1.1 2.1 0.0 Fishmeal and Soymeal Iceland 13.9 0.6 0.5 0.0 0.0 0.0 2000 USD/tonne Others 5.2 4.4 4.2 3.5 1.8 4.1 1800 Total 60.5 58.7 39.6 38.1 34.8 39.1 1600 Fishmeal* Source: GLOBEFISH AN 11630 * excluding solubles 1400

1200

1000

800 Soymeal** 600

Chile 400

200 Chile is not only a producer of ﬁ shmeal but a 0 consumer as well. Chile accounted for approximately 20- Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 25% of the value of Skretting’s ﬁ sh feed sales in the third * all origins, 64-65% cif Hamburg; 44% cif Rotterdam quarter of 2010. Source: Oil World, GLOBEFISH AN 11702, 11706

Globeﬁ sh Highlights April 2011 47 FISH OIL

Fish oil price continues to track crude oil price

The fi sh oil market is in stand-by mode awaiting the results of the Peruvian fi sheries. Current prices are at record levels and despite increased oil production during the fi rst two months of 2011 compared with last year, up from 59 000 tonnes to 78 000 tonnes, prices should remain high. Markets Production Fish oil: World Diminishing supplies led to a tight market in 2010. In 2005 2006 2007 2008 2009 2010 addition, a growing share of production is going into the (1 000 tonnes) valuable fi sh oil food supplement market. Peru/Chile 413 405 577 459 410 237 Outlook Denmark/ Norway 87 104 74 93 79 110 Although there is uncertainty regarding the catch Iceland 55 42 46 81 44 67 levels in South America, demand for aquaculture is bound Total 589 594 697 633 532 414 to grow in 2011 because of the come-back of the Chilean Source: IFFO salmon industry. Therefore, the market will remain tight in 2011.

Production The high degree of correlation between crude oil prices and fi sh oil continues. With crude oil prices World production is linked to available catches and at around USD 120 per barrel (Brent) and expected to the share of catch destined for fi sh oil production. Both remain high because of instability in many crude oil Peru and Chile, the two leading producers, saw reduced producing countries, fi sh oil prices should remain at high catch levels in 2010 and a fall in oil production as well. levels during 2011. The situation in the North Atlantic was more positive with producers showing an increase in output. Overall output Prices from the 5 top producers fell 22% in 2010. Fish Oil and Soybean Oil

2000 Exports USD/tonne 1800 Fish Oil The leading exporters, Peru and Chile, experienced 1600 drastic falls in shipments in 2010, down 18% and 38% 1400 respectively. Chile suffered not only from declining catches but also damage to its industry infrastructure 1200 from the 2010 earthquake. As a result, Chile’s imports 1000 of oil from Peru for its aquaculture industry increased 800 signiﬁ cantly last year from 22 000 to 62 000 tonnes. 600 Soybean Oil

Further north, good catch levels of menhaden 400 during 2010 allowed for an upsurge in US oil exports by a 200 signiﬁ cant 57%. Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Source: GLOBEFISH AN 12002, 2003 Exports Exports Fish oil: Chile Fish oil: Peru 2007 2008 2009 2010 2007 2008 2009 2010 (1 000 tonnes) (1 000 tonnes) Japan 8.3 15.8 10.6 7.5 Belgium 52.8 64.6 67.3 44.8 Denmark 0.0 15.0 0.0 4.0 Chile 92.9 52.3 22.5 61.9 China 18.1 12.6 0.0 11.0 Denmark 86.2 32.6 85.1 42.7 Norway 10.0 5.5 1.0 6.4 Norway 26.2 31.4 19.5 14.2 Others 35.6 32.2 69.1 21.3 Others 47.7 53.9 92.7 71.4 Total 72.0 81.0 80.8 50.0 Total 305.7 234.9 287.2 235.1 Source: Boletín de Exportaciones del IFOP Source: Produce

48 Globeﬁ sh Highlights April 2011 BIVALVES

New Challenges for Bivalve Molluscs

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

Oysters In addressing this problem, the European Food Safety Authority (EFSA) announced in November 2010 The annual consumption of oysters in France is that the regulation governing the application of measures around 150 000 tonnes. However, as a result of a viral to control the increased mortality of Paciﬁ c oyster should disease that has affected the sector for several years, by be extended until the end of April 2011. This regulation December 2010 supply could not keep up with demand stipulates that, following the detection of the virus any more. This crisis could favour oyster producers in by testing, a containment area must be established to Brazil, Mexico and other countries that have focused on prevent the movement of oysters out of that area. The the American market until now. Panel on Animal Health and Welfare (AHAW) was asked to give a scientiﬁ c opinion on the mortality events and According to the French Research Institute for the concluded that a robust health surveillance system is Exploitation of the Sea (Ifremer), a variety of the herpes needed in Europe. virus and several bacteria species have killed more than 80% of young oysters. In 2008 the effect was even worse This problem also affects oysters in the UK, Ireland with a 90% mortality of oyster seeds. and New Zealand.

This high mortality not only affected the supply of In December 2010 live Paciﬁ c oysters (Crassostrea oysters, but also led to price rises of between 30 and gigas) from France were on sale for EUR 11.15/ kilo on 40% in the French domestic market last year. Oysters in the Italian wholesale market while Italian oysters were Asia have not been affected by the virus and scientists selling for EUR 4.15/kilo. are bringing oyster species back from Japan in the hopes of ﬁ nding resistant species. Another approach is to try Scallops to breed a ‘super-resistant’ strain from those that have survived. Demand for frozen scallop products from Peru increased markedly in 2010 and several new companies entered this market. Exports for 2010 increased by 88.9% and were valued at USD 117.8 million, according to the Exports Oysters : France 2008 2009 2010 (1 000 tonnes) Imports Italy 6.0 6.1 5.4 Scallops Selected European countries Belgium 1.0 0.9 0.6 2005 2006 2007 2008 2009 2010 Germany 0.6 0.5 0.6 (1 000 tonnes) Netherlands 0.5 0.5 0.6 France 23.3 25.9 21.4 25.4 27.9 28.0 Spain 0.3 0.2 0.5 Spain 9.8 10.3 11.6 13.3 12.5 11.5 Ireland 0.3 0.5 0.4 Italy 5.6 6.3 6.3 5.6 5.2 6.4 Switzerland 0.2 0.2 0.3 Belgium 4.6 6.4 3.9 4.7 3.8 4.6 Russian Fed 0.4 0.2 0.2 Netherlands 3.0 2.7 2.4 2.4 3.3 3.2 Hong Kong 0.1 0.1 0.2 UK 2.1 2.2 2.5 2.5 3.8 2.2 UK 0.1 0.1 0.0 Denmark 1.0 1.2 1.2 0.9 0.9 1.5 Others 0.6 0.6 0.9 Germany 1.0 1.1 1.2 1.4 1.3 1.4 Total 10.0 9.9 9.8 Others 1.9 2.5 2.5 2.4 3.0 3.9 Source: National statistics Total 52.4 58.6 53.0 58.5 61.6 62.8

Globeﬁ sh Highlights April 2011 49 BIVALVES

The effects of the earthquake and tsunami in Japan Imports in March were felt by scallop farms across the Paciﬁ c Scallops: France in northern Chile, where waves devastated a large part 2005 2006 2007 2008 2009 2010 of the farming sites at Coquimbo bay. The ﬁ shermen’s (1 000 tonnes) association calculates the loss at USD 6 million, as 80% of Argentina 3.3 5.3 5.0 6.3 5.3 6.0 scallop long lines were destroyed. This area was already suffering a crisis as a result of competition with Peruvian Peru 2.2 2.5 2.6 3.5 5.3 8.0 producers who are able to export at lower prices because Canada 1.7 1.3 1.8 2.2 1.6 1.7 of wild captures and cheaper labour. Chile 3.3 1.7 1.7 1.6 2.8 1.1 UK 0.6 1.3 1.1 1.6 4.6 4.0 Mussels Japan 0.4 1.6 0.8 1.6 1.0 0.7 USA 2.8 3.6 1.3 1.5 5.5 3.6 In 2010 mussel imports by the European Union Viet Nam 1.3 1.7 0.8 0.4 0.2 0.9 reached 189 700 tonnes, with France taking 47 700 tonnes, Denmark 0.0 0.2 0.7 0.2 0.0 0.0 followed by Italy with 38 500 tonnes and Belgium with 35 100 tonnes. Imports by Spain and the United Kingdom Others 3.5 2.6 1.2 1.4 1.7 2.1 declined, with Spain importing 13 100 tonnes, down from Total 19.1 21.8 17.0 20.4 28.0 28.0 15 100 in 2009 and the UK 6 900 tonnes, down from 11 Source: National statistics 900 tonnes the previous year.

Imports Imports Scallops: Italy Mussels 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 ( tonnes) (1 000 tonnes) UK 1 437 1 406 1 547 1 435 1 502 1 842 France 55.5 41.8 43.6 41.3 45.4 47.7 Peru 84 275 363 543 495 515 Italy 22.7 34.7 33.3 36.2 41.4 38.5 France 622 682 484 427 321 457 Belgium 15.5 21.9 28.6 37.1 28.1 35.1 Spain 244 274 656 393 194 334 Netherlands 22.3 28.5 16.9 18.9 15.7 16.8 Vietnam 369 640 479 66 27 0 Spain 26.6 24.4 33.7 14.4 15.1 13.1 Tunisia 251 73 53 20 3 3 Germany 10.9 9.9 8.8 9.2 9.7 10.1 Others 576 512 508 446 478 504 UK 14.9 17.2 11.0 9.7 11.9 6.9 Total 3 583 3 862 4 090 3 330 3 020 3 655 Portugal 6.2 7.3 5.8 3.8 4.8 6.7 Source: National statistics Others 21.1 16.1 20.0 18.1 14.9 14.8 Total 195.8 201.7 201.8 188.8 187.0 189.7 Source: GLOBEFISH Imports Scallops: Spain 2005 2006 2007 2008 2009 2010 Imports (tonnes) Mussels: France Italy 3 327 2 401 2 766 6 798 5 822 4 088 2005 2006 2007 2008 2009 2010 France 3 353 3 451 3 118 2 832 3 330 3 557 (1 000 tonnes) UK 1 388 1 633 1 860 1 328 1 036 1 335 Netherlands 18.1 13.0 13.0 12.5 11.9 13.9 Peru 304 826 393 702 273 449 Spain 8.8 12.6 12.6 12.2 14.6 12.4 Others 1 358 1 941 1 316 1 404 2 084 2 072 Chile 3.1 3.5 3.5 9.8 8.4 10.7 Total 9 730 10 252 9 453 13 064 12 545 11 501 Ireland 9.6 9.0 9.0 5.6 5.3 8.6 Source: National statistics Greece 3.8 5.8 5.8 2.6 3.7 2.7 Italy 5.1 5.6 5.6 2.5 2.3 4.7 Denmark 3.0 2.2 2.2 2.4 1.7 2.0 consulting ﬁ rm Maximixe. Exports to overseas countries UK 3.1 2.1 2.1 1.6 2.4 2.2 increased substantially but demand from neighbouring Others 4.1 5.0 5.1 2.3 0.9 0.9 Chile increased by almost 1 000%. Imports of frozen Total 58.7 58.8 58.9 51.5 51.2 58.1 scallops by the USA also increased, by 34.5%. Source: National statistics

50 Globeﬁ sh Highlights April 2011 BIVALVES

almost used up, which is one of the reasons why import Imports demand was slow. Mussels: Italy 2005 2006 2007 2008 2009 2010 According to Infotrade, more than 80 600 tonnes of (1 000 tonnes) Chilean mussels were exported to the EU in 2010, worth Spain 11.5 18.1 17.5 20.2 23.9 22.1 USD 36 million. The price was around USD 2 dollars per kilo, though some companies sold below USD 1.50 per Chile 3.6 4.2 4.8 7.0 4.7 6.6 kilo, a very low price compared with the USD 3 that was Greece 9.4 9.4 4.9 6.1 7.4 3.4 paid in 2007, the industry´s best year. Ireland 0.6 0.8 0.9 1.0 1.2 1.4 N.Zealand 0.8 0.8 0.7 0.4 0.6 0.3 In addition, the Chilean industry suffered from Denamrk 0.4 0.4 0.3 0.3 0.2 0.2 production problems of mussels growing very slowly and Netherlands 0.2 0.2 0.1 0.2 0.1 0.1 taking double the amount of time to reach harvestable Others 2.7 2.8 3.1 2.7 3.3 3.0 size compared with previous years. This is likely to have an ongoing negative effect on volumes forecast for Total 29.2 36.7 32.3 37.9 41.4 37.1 2011. Source: National statistics The Shellfi sh Growers Association of Calbuco has suggested that this decline might be related to La Niña In the Netherlands, producers of the blue mussel phenomenon, although a number of other environmental (Mytilus edulis), exported 461 tonnes in 2010 compared conditions could also be affecting the growth of with 387 tonnes in 2009. Some private initiatives were mussels. able to give a boost to the sector, including mussel seed hatcheries and inland farms. Chilean mussel farmers also suffered from the Japanese tsunami as storm surges and strong currents Galician mussel farmers are preparing to oppose damaged farms in Chiloe and other areas. the fraudulent use of local labelling on canned mussels imported from Chile by launching the brand “Mejillón On a positive note, the Chilean mussel producer de Galicia®”. However, at the end of March 2011 the Toralla was certifi ed sustainable by Friend of the Sea in company accused of selling canned mussels from Chile January 2011. The farm uses long-line methods to harvest as if they were from Galicia admitted that it had made the mussels, which are exported worldwide. About 12 000 a mistake and the Regulatory Council for the Galician tonnes of mussels are sold in a year. Mussel withdrew the criminal charges. The company gave assurances that they would remove all the cans from the Gulf of Mexico oil spill still affecting consumer market and would respect to the protected designation perceptions of origin in future. Consumer behaviour in the USA has been changed 2010 was a diffi cult year for Chilean mussel considerably by the perceptions that the oil spill that producers, with an oversupply of mussels that meant released about 200 million gallons of oil into the Gulf of companies had to sell their product at very low prices, Mexico last year affected all seafood available in the US. even below the production price. As a result of the In fact, only about 2% of all fi sh and seafood sold in the fi nancial crisis in Europe all inventories of mussels were USA comes from the Gulf of Mexico, but overall seafood depleted and were not replenished until stocks were consumption was still down even four months after the spill had been stopped.

Imports Mussels: Spain Exports 2005 2006 2007 2008 2009 2010 Mussels: Netherlands (1 000 tonnes) 2005 2006 2007 2008 2009 2010 Chile 6.2 8.5 7.5 9.3 8.0 10.7 (tonnes) France 3.0 2.3 2.1 1.9 1.4 2.2 Belgium 338.1 239.5 230.3 220.1 222.9 241.5 Italy 1.4 1.2 1.0 0.5 1.0 1.1 France 221.7 172.9 131.5 100.6 106.5 155.4 Portugal 0.2 0.4 0.4 0.0 0.3 0.5 Germany 54.4 47.8 31.6 32.8 38.5 45.9 N. Zealand 3.4 2.6 3.5 0.0 0.0 0.0 UK 5.3 10.8 9.9 7.5 7.2 7.8 Others 3.0 2.9 2.6 5.0 1.5 0.7 Luxemburg 0.1 4.5 4.2 4.3 4.3 4.4 Total 17.0 17.9 17.1 16.7 12.2 15.2 Total 643.8 486.7 428.8 373.0 386.7 461.0 Source: National statistics Source: National statistics

Globeﬁ sh Highlights April 2011 51 BIVALVES

However, one species that was indirectly hit badly rat bioassays that were used in the past gave satisfactory by the disaster was oysters. The state of Louisiana lost results and the new, more expensive chemical analysis about 80% of the oysters that should have been harvested will be considerably slower, therefore putting both in the middle months of last year because of mortalities producers and consumers at a disadvantage according to caused by the pumping of millions of gallons of freshwater Francisco Vidal Pardo, technical general secretary at the into the Gulf to prevent oil from reaching the estuaries, Ministry of Marine Affairs. thereby changing salinity levels. Outlook As oyster production declined, prices went up, meaning that company sales were only down about 25% The aftermath of the earthquake and tsunami in Japan is likely to be add to uncertainty about supply, Spain approved fi rst abalone hatchery imports and exports of all fi sh and shellfi sh species, including bivalve molluscs. However, it is too soon to The fi rst abalone marine farm and hatchery in predict what the impact will be throughout 2011 but it Galicia, Spain, was approved at the beginning of 2011, is a factor that should be considered. Already Australian after waiting for some considerable time for Consell of the oyster farmers are facing reduced demand for oysters Xunta de Galicia to revoke the ‘ban’ on new aquaculture normally imported by Japan and it is known that scallop plants. The company, Galician Marine Aquaculture, plans and oyster farms in the northeast of Japan were badly to produce 300 tonnes of abalone in the next fi ve years. damaged by the tsunami, including pearl production from The Ministry of Marine Affairs and the European Fisheries oysters. Fund Initiative will co-fi nance the farm along with company to the amount of EUR 3.5 million.

This is the ﬁ rst aquaculture plant in Galicia in the last ﬁ ve years and it is one of the biggest investments in Clam, wholesale Milan origin: Italy relation to molluscs. EUR/kg In shell

This project is the ﬁ rst in this area of Spain to 6.50 develop industrial farming of abalone and therefore the 6.00 5.50 economic effect it will have cannot be quantiﬁ ed yet. 5.00 4.50 5.25 Indications are that abalone will reach prices 4.00 3.50 in Europe of over EUR 70 per kg for a high quality live 3.00 07 08 09 10 07 08 09 10 abalone. It is anticipated that most of the production 07 08 09 10 11 ------

from the farm will be exported. Jul Jul Jul Jul Mar Mar Mar Mar Mar Nov Nov Nov Nov EU to introduce new method to detect marine Source: EPR biotoxins

Following reports that the previous methods of testing for the presence of marine biotoxins in bivalve BIVALVES NEWS molluscs had signifi cant defi ciencies, the European UK: FIRST SCOTTISH ENHANCED FISHERY ENTERS MSC Commission (EC) published a new regulation (EU) 15/2011 ASSESSMENT amending the previous regulation governing recognised testing methods. The new methods are based on liquid Seafood Shetland in partnership with the Scottish Shellfi sh Marketing Group (SSMG) has entered its mussel fi shery for chromatography-mass spectrometry and they will replace Marine Stewardship Council (MSC) assessment. If successful, the mouse or rat bioassays that have been used up to the fi shery’s products will be eligible to bear the MSC eco-label now. which the partnership believes will be a great boon for the industry, opening up new markets in the UK and further afi eld. The fi shery produces blue mussels (Mytilus edulis) grown on The new regulations were published on 10 January static ropes suspended in the clean waters around Shetland 2011 but are not due to be implemented until 1 July and the Scottish coast. At present, most of the mussels are sold and will then be used in conjunction with the biological in UK supermarkets, foodservice and an increasing European methods until the end of December 2014. export market. Support for progressing to full assessment has been provided by The Co-operative Group, by way of a GBP 20 000 (EUR 23 200/USD 31 800) donation from its Sustainable The Spanish government as well as the Xunta de Fishing Fund. The GBP 200 000 (EUR 232 000/USD 318 000) Galicia will appeal the decision to implement the new Sustainable Fishing Fund was created in 2008 to improve the regulation as they feel that the new methods will lead to sustainability of UK fi sheries. Source: INTRAFISH more frequent closures of shellfi sh areas because it will be easier to detect red tides. Spain considers that the

52 Globefi sh Highlights April 2011 Fish and fi shery products statistics1 Capture fi sheries Aquaculture Exports Imports production fi sheries production 2007 2008 2007 2008 2008 2009 2010 2008 2009 2010 estim. f’cast estim. f’cast Million tonnes (live weight equivalent) USD billion ASIA 46.3 46.9 44.2 46.7 35.0 34.1 37.7 32.9 30.5 33.7 China2 16.0 16.0 31.7 33.1 12.1 12.2 14.3 8.3 8.3 9.6 of which China, Hong Kong SAR 0.2 0.2 0.0 0.0 0.5 0.8 0.8 2.4 2.5 2.9 & Taiwan Province of China 1.2 1.0 0.3 0.3 1.5 1.2 1.3 0.7 0.8 0.9 India 3.9 4.1 3.1 3.5 1.6 1.6 1.6 0.1 0.1 0.1 Indonesia 5.1 5.0 1.4 1.7 2.5 2.3 2.4 0.2 0.2 0.3 Japan 4.3 4.2 0.8 0.7 1.7 1.6 1.9 14.9 13.2 14.0 Korea, Rep. of 1.9 1.9 0.6 0.5 1.3 1.3 1.5 2.9 2.7 3.2 Philippines 2.5 2.6 0.7 0.7 0.6 0.6 0.6 0.1 0.2 0.2 Thailand 2.3 2.5 1.4 1.4 6.5 6.2 7.1 2.4 2.0 2.1 Viet Nam 2.0 2.1 2.1 2.5 4.6 4.7 5.0 0.5 0.5 0.5 AFRICA 7.2 7.2 0.8 0.9 4.8 4.6 4.8 3.0 3.1 3.4 Ghana 0.3 0.4 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.1 Morocco 0.9 1.0 0.0 0.0 1.7 1.5 1.6 0.1 0.1 0.1 Namibia 0.4 0.4 0.0 0.0 0.6 0.6 0.6 0.0 0.0 0.0 Nigeria 0.5 0.5 0.1 0.1 0.1 0.3 0.4 0.6 0.8 0.9 Senegal 0.4 0.4 0.0 0.0 0.2 0.2 0.3 0.0 0.0 0.0 South Africa 0.7 0.6 0.0 0.0 0.5 0.4 0.5 0.2 0.3 0.3 CENTRAL AMERICA 2.0 2.1 0.3 0.3 2.2 1.8 1.9 1.2 1.0 1.1 Mexico 1.5 1.6 0.1 0.2 0.8 0.8 0.8 0.6 0.4 0.4 Panama 0.2 0.2 0.0 0.0 0.4 0.3 0.3 0.0 0.0 0.0 SOUTH AMERICA 13.9 13.8 1.4 1.4 10.4 9.4 9.9 1.9 1.9 2.0 Argentina 1.0 1.0 0.0 0.0 1.3 1.1 1.2 0.1 0.1 0.1 Brazil 0.8 0.8 0.3 0.3 0.3 0.2 0.2 0.7 0.7 0.8 Chile 3.8 3.6 0.8 0.8 3.9 3.6 3.8 0.3 0.1 0.1 Ecuador 0.4 0.4 0.2 0.2 1.8 1.6 1.7 0.2 0.2 0.2 Peru 7.2 7.4 0.0 0.0 2.4 2.2 2.3 0.1 0.1 0.1 NORTH AMERICA 6.0 5.5 0.7 0.6 8.5 7.8 8.5 16.2 15.1 16.4 Canada 1.0 0.9 0.2 0.1 3.7 3.3 3.8 2.0 2.0 2.3 United States of America 4.8 4.4 0.5 0.5 4.5 4.1 4.5 14.1 13.1 14.2 EUROPE 13.2 13.0 2.4 2.3 38.9 35.5 36.9 50.5 46.6 48.2 European Union 2 5.2 5.1 1.3 1.3 26.2 23.6 24.7 44.7 41.4 42.5 of which Extra-EU “ “ “ “ 4.4 3.8 4.1 23.9 22.0 22.2 Iceland 1.4 1.3 0.0 0.0 2.1 1.7 1.8 0.1 0.1 0.1 Norway 2.4 2.4 0.8 0.8 6.9 6.9 7.0 1.2 1.1 1.2 Russian Federation 3.5 3.4 0.1 0.1 2.6 2.3 2.4 2.4 2.0 2.3 OCEANIA 1.3 1.1 0.2 0.2 2.3 2.2 2.2 1.3 1.3 1.4 Australia 0.2 0.2 0.1 0.1 0.9 0.8 0.9 1.1 1.1 1.1 New Zealand 0.5 0.5 0.1 0.1 0.9 0.9 0.9 0.1 0.1 0.1 WORLD 3 89.9 89.7 49.9 52.5 102.0 95.4 101.9 107.4 99.5 106.1 Developing countries 65.6 66.3 45.9 48.7 51.1 48.8 52.8 24.2 23.4 26.2 Developed countries 24.2 23.4 4.0 3.9 50.9 46.6 49.0 83.2 75.8 79.7 LIFDCs 35.4 35.9 38.8 41.0 19.8 19.5 21.7 8.2 8.4 9.4 LDCs 7.9 8.1 1.8 1.9 2.6 2.6 2.1 0.5 0.5 0.5 NFIDCs 18.2 18.7 2.7 2.9 8.8 8.1 7.9 2.8 2.7 2.9 1 Production and trade data exclude whales, seals, other aquatic mammals and aquatic plants. Trade data include fi sh meal and fi sh oil. 2 Including intra-trade. Cyprus is included in Asia as well as in the European Union. 3 For capture fi sheries production, the aggregate includes also 63 346 tonnes in 2007 and 59 408 tonnes in 2008 of not identifi ed countries, data not included in any other aggregates. Totals may not match due to rounding. Globefi sh Highlights April 2011 53 SPECIAL FEATURE

Value-addition in the fi sh processing industry - additives and coatings A changing and globalised world represents a its derivatives in the fi nal product, provided that these challenge for the food and food processing industry. New residues do not present any health risk and do not have trends develop, others disappear and yet others already any technological effect on the fi nished product.” present become dominant in the market. Quality of food continues to be a major concern for consumers today and Here the substance has been added to aid processing thus the fi sh industry must make an effort to supply fi sh and and may or may not be present in the fi nal product. If it fi sh products that retain all their properties and nutrients has no technological function in the fi nal product it does as if they had been freshly caught or harvested. not need to be included in the labelling; if it continues to have a technological function it should be labelled as an Compared with other foods, fi sh and seafood products additive. are preferred live or fresh with no addition of additives, but as with most food products, seafood may require the The use of different additives has increased, enabling use of additives to perform necessary technical functions the industry to preserve the quality of the seafood, within the food itself, or during seafood processing. maintaining its organoleptical properties even after being Whether the use of additives needs to be declared will processed and frozen. depend not only the applicable legislation but also on the stage at which it was used during seafood processing, Different additives are available, covering a wide or the function it performs in the fi nal product. All range of products for different purposes. These additives additives must be authorised for use in the particular food can be used to stabilize the natural water content, product. maintaining freshness and preserving natural nutrients until the product reaches the consumer. The main There are many suppliers of these additives, however types of additives are moisture restorers, antioxidants it is advisable to use good quality products and necessary and preservatives, glazing products and measures to to observe not only the legislation currently in force in the control and prevent black spots in shrimps and other destination country to which the fi sh and fi sh products are crustaceans. going to be exported, but also the legislation in force in the country where the additives are going to be used. The Humectants/moisture restores. After capture or Codex Alimentarius provides a worldwide standard, listing harvesting, fi sh undergo biochemical changes and the and identifying food additives, which forms the basis of pH drops sharply reducing the ability of tissues to retain the legislation of many countries. The laws of each country moisture. This leads to a deterioration of the texture cover which additives may be used as ingredients in the of the fi sh with a subsequent loss of nutrients, minerals manufacture or preparation of food and which may be and vitamins. Moisture restores have been developed to part of the fi nished product. Food additives may only be improve texture by increasing the water holding capacity authorised if there is a technological need for their use, if of the fi sh tissues, enabling industrial handling as well as they do not mislead the consumer and if they present no retaining colour and quality by helping to maintain the hazard to the health of the consumer. optimum pH level. They reduce oxidation and weight loss during the freezing, storage and defrosting processes, Food additives can be defi ned as: “any substance retaining the fresh quality of the raw material. not normally consumed as a food in itself and not normally used as a characteristic ingredient of food, whether or not Antioxidants and colour stabilizers. In order to deliver it has nutritive value, the intentional addition of which fi sh and fi sh products in good condition to consumers, it is to food for a technological purpose in the manufacture, important to guarantee proper handling and preservation. processing, preparation, treatment, packaging, transport With its high water content, fi sh meat alters easily or storage of such food results, or may reasonably be as a result of oxidizing or freezing processes: a lack of expected to result, in it or its by-products becoming protection will affect the quality of the product causing directly or indirectly a component of such foods.” loss of commercial value and decreasing shelf life. Fat and pigment oxidation can be avoided with the correct Food additives must be declared on the label, but food use of an antioxidant and a colour stabilizer. additives can also be authorised for use as a “processing aid”. This is defi ned as: “any substance not consumed as Glazing products. These are especially developed to a food by itself, intentionally used in the processing of protect fi sh and fi sh products during freezing process and raw materials, foods or their ingredients to fulfi l a certain in storage. During this period, dehydration and freezing technological purpose during treatment or processing, burns can occur if the raw material is not properly and which may result in the unintentional but technically protected. The glaze also works as a protective layer, to unavoidable presence of residues of the substance or guard against microbial contamination and spoilage. This

54 Globefi sh Highlights April 2011 SPECIAL FEATURE gives products gives a shinny appearance. Fish can also be use of coatings is a good way of adding value to products. glazed with water/ice, but ice breaks and gives an opaque This industry started in the 50’s as consumers developed appearance to the product, so the surface is not clearly new needs and new life styles. In developed countries, visible. the market for coated products is important but not showing much new growth. Today, although the coatings Measures to prevent melanosis/black spots. These have evolved, consumers demand new, more innovative measures are specially developed to reduce and inhibit products, including organic products, products without the enzymatic process of melanosis (black spots) in gluten and with low oil absorption and perhaps most crustaceans. The most common additive is sodium importantly, products that have health benefi ts. metabisulphite, which is dissolved in water tanks in which shrimp are dipped for a few minutes immediately after The market for coated products, however, is growing being harvested. Although there are no standards regarding in developing countries as consumers begin to purchase this procedure, each company uses a different percentage coated products and it will continue to evolve, trying of sodium metabisulphite according to the length of time to differentiate products and making them look more the treatment is applied. Proper protection should be appealing to consumers. There are many factors that also used when working with this additive, such as wearing make these types of products attractive for the producer, masks and gloves. Sulphur dioxide (SO2) is released when such as yield improvement and the ability to deliver better sodium metabisulphite is dissolved in water and there visual appeal and fl avour variations, as a unique fl avour are maximum limits to the amount of SO2 allowed in the profi le sets the product apart from the competition. edible parts, consequently companies have to be very The use of coatings also reduces oxidation and extends careful when using it. In recent years alternative products shelf life, as well as protecting the raw material from have been developed that are even more effective in dehydration and burns. preventing melanosis and that do not cause the allergic reaction that can occur when ingesting food treated with There is a wide range of applications and coatings sodium metabisulphite. The only disadvantage of these is that can be applied to fi sh fi llets, fi sh portions, formed that the price is quite high. fi sh fi llets, croquets, among others. The following are some of the most common coatings. Many companies could feel tempted to use these products to increase yields and consequently their • Predusts. These are thin coatings applied of the margins, but consumers have to be protected by the surface of the raw material. It is applied before the batter responsible use of such additives in the maintenance of mix and is an effi cient way of adding special fl avours, as the quality of the fi sh products, instead of trying to be it is not in direct contact with the hot oil used in cooking more competitive abusing by consumers. and the fl avours will be retained. • Batter mixes. These provide an adhesive layer Additives can be used also in the packaging, where a between the raw material and the outer coating (for modifi ed or protective atmosphere would help to preserve example, breadcrumbs). the quality of the fi sh for a longer period of time. The • Tempuras.These provide a protective outer layer, modifi cation process often serves to lower the amount of adding fl avour, colour and a crispy texture. oxygen (O2), moving it from 20% to 0%, in order to slow • Breadcumbs. These are usually used as an outer down the growth of aerobic organisms and the speed of coating applied after the batter. There are many types of oxidation reactions. The removed oxygen can be replaced breadcrumbs, including extruded crumbs and gluten free with nitrogen (N2), commonly acknowledged as an inert and organic crumbs, which are becoming more important gas, or carbon dioxide (CO2), which can lower the pH or in the market as consumers demand anti-allergy and inhibit the growth of bacteria. better quality products. • Sauces and marinades. With the use of these The use of modifi ed atmospheres in packaging, coatings, companies have to be very careful that they do however, should not be considered as a mean of recovery not encourage microbial growth. or improvement in quality of a food product that is about to expire, but only as an operation of technological support New trends and a growing demand for organic and combined with other processes (such as refrigeration, healthy products by consumers obliges the industry to sanitary control, etc.) that helps to achieve the desired undertake research and to improve products in order to effects. address consumer needs. There is a shift towards more natural products and also a global concern for sustainable The fi sh processing industry also has to look to the use and the effects of global warming that is affecting future and the direction consumer demand is taking. consumer behaviour. Health and well-being are further Giving added value to the products will make a difference consumer concerns. Current life styles have led to new with competitors and allow companies to gain the trust demands from consumers looking for solutions to the lack of consumers. To differentiate your product from others of time for preparing food but not wanting to reduce the is essential, and there are many ways of doing this. The quality of their diet.

Globeﬁ sh Highlights April 2011 55 About GLOBEFISH Research Programme Vol. 105 The Seafood Market in Chile 2011 €30 GLOBEFISH forms part of the Products, Trade and Marketing Service of the FAO Vol. 104 The Seafood Market in France 2011 €30 Fisheries and Aquaculture Department and is part of the FISH INFOnetwork (see below). Vol. 103 Turbot – Production Technology and Markets Feb 2011 €30 It collects information from the main market areas in developed countries. Part of its services is Vol. 102 The Ornamental Fish Trade Nov 2010 €40 an electronic databank and the distribution of information through the GLOBEFISH European Vol. 101 Markets for Tilapia Jul 2010 €30 Fish Price Report, the GLOBEFISH Highlights, the GLOBEFISH Research Programme and the Vol. 100 Importance of APEC in world fisheries and aquaculture Mar 2010 €30 Vol. 99 Viet Nam - Seafood from Waterland Mar 2010 €30 GLOBEFISH Commodity Updates. Vol. 98 The seafood market in Greece Mar 2010 €30 Vol. 97 Private standards in fisheries and aquaculture Apr 2009 €30 The GLOBEFISH Highlights are based on information available in the databank, supplemented Vol. 96 The Seafood Market in Spain Nov 2008 €30 by market information from six regional services which form the FISH INFOnetwork: INFOFISH Vol. 95 The Seafood Markets in Southern EU - Cyprus, Malta and Slovenia Apr 2008 €30 (Asia and the Pacific), INFOPESCA (Latin America and the Caribbean), INFOPECHE (Africa), Vol. 94 World Octopus Market Jul 2008 €30 INFOSAMAK (Arab countries), EUROFISH (Central and Eastern Europe) and INFOYU (China). Vol. 93 Global Production and Marketing of Canned Tuna Apr 2008 €30 Vol. 92 The Seafood Market in Italy Apr 2008 €30 This issue of GLOBEFISH Highlights has been prepared by Karine Boisset, Audun Lem Vol. 91 Ecolabels and Marine Capture Fisheries Apr 2008 €30 and Paola Sabatini with contributions from Nada Bougouss, Josè Estors Carballo, Fatima Vol. 90 Market Penetration of Developing Country Seafood Products... Apr 2008 €30 Ferdouse, Diego Gentile, Erik Hempel, Katia Tribilustova, Stefania Vannuccini, Jianwei Lei Vol. 89 World Surimi Markets Apr 2007 €30 and Meyling Tang. Hilary Cochrane provided editing services and Turan Rahimzadeh was Vol. 88 Republic of Korea Fishery Industry Profile - Post Harvest Sector Nov 2006 €30 responsible for the layout. The Norwegian Seafood Export Council provided data support for Vol. 87 Lobster Markets Nov 2006 €30 Vol. 86 Marketing of Aquacultured Finfish in Europe Sep 2006 €30 the FAO Fish Price Index. Please visit the GLOBEFISH web site (www.globefish.org) to see our latest titles GLOBEFISH Highlights are distributed to the subscribers of: INFOFISH Trade News, The GLOBEFISH Research Programme provides detailed analysis of selected markets, species and INFOPESCA Noticias Comerciales, INFOPECHE Nouvelles Commerciales, through EUROFISH products of relevance in international fish trade. In addition, studies are published on specific issues of and INFOYU. GLOBEFISH Highlights are also available in electronic form. importance to the sector.

HIGHLIGHTS A quarterly update on world seafood markets

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