MARKET REPORT:

SHRIMP

Production boom expected in U.S. Gulf fishery
Peeled and cooked-peeled product dominate the domestic shrimp markets

Peeled shrimp, mostly from the U.S. Gulf of Mexico, have been on a roller-coaster ride since April 2000, when the Louisiana inshore fishery opened. A price drop was precipitated by the prospect of near-record production. With the new Louisiana season, prices have again dropped, due also to higher-than-usual cold-storage holdings of peeled shrimp.

Biologists predict that the new season’s production will be higher than usual throughout the Gulf of Mexico. With a production boom in this year’s brown shrimp fishery, shell-on and peeled inventories could again start to build.

Though the U.S. East Coast production of coldwater pinks is down, imports from Canada’s North Atlantic production should moderate domestic prices.

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With a continued strong U.S. dollar, more black tigers, shell-on and cooked, will be shipped into the United States in the next few months.

While Ecuador’s virus problems persist, other Latin American countries are taking up the slack. Brazil’s production has increased, and most of that should go to the U.S. market, where the currency is stronger.

Another market factor to consider this summer is the effect of higher fuel costs. Fewer vacations via automobile may mean fewer opportunities for seafood restaurants. How will that affect shrimp demand and consumption?

The shrimp market report is prepared by Bill Chauvin of Shrimp World. For shrimp news updates, see his Web site at www.shrimpcom.com

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GROUNDFISH

European demand for whitefish builds
Pollock prices start to rise, but cod, haddock imports remain firm

After a stable first quarter, strengthening demand and diminishing availability have caught up with prices of frozen pollock.

Europe’s hoof-and-mouth scare and harvest cutbacks in Russia’s Sea of Okhotsk boosted buying interest, which became evident when Chinese product rose to around $1 for 4- to 6-ounce and 6- to 8-ounce IQF fillets early this year. In May, domestic FAS shatterpacks jumped to $1.25 to $1.35 for 4-6s and $1.40 to $1.50 for 6-8s, and once-frozen blocks to 95 cents to $1.

Through February, U.S. exports of frozen pollock fillets to France, Portugal, Germany and the United Kingdom approached 4 million pounds, dwarfing last year’s two-month total of less than 40,000 pounds.

European buyers seem willing to pay more for frozen Atlantic cod fillets, which may be harder to find this summer if additional conservation measures are implemented in the North Sea. But Icelandic shatterpacks still cost $2.90 to $3 for 4-8s, $3 to $3.10 for 8-12s and 12-16s in mid-May.

Haddock shatterpacks were also steady at $3.35 to $3.40 for 4-8s, and $3.50 to $3.60 for 8-12s and 12s-and-up (skinless, boneless).

Halibut landings have topped the 17-million-pound mark. By mid-May, 14.2 million pounds, 24 percent of the 58.5-million-pound quota, had been caught in Alaska waters; and 3 million pounds, more than one-quarter of the 10.6-million-pound quota, were harvested in British Columbian waters. Ten- to 40-pound fresh, whole fish went for $2.90 to $3.15. – STEVEN HEDLUND

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SHELLFISH

Supply pinch drives mussel prices up
Quahog processors are also digging for product to keep prices down

In anticipation of a supply shortage this summer, Prince Edward Island blue-mussel growers are charging an additional 5 cents or more a pound, forcing distributors to raise their prices.

After hitting an all-time low of 71 cents a pound in February, PEI mussels commanded 85 to 90 cents in mid-May. More Canadian product that otherwise would be cooked and frozen may be used to supplement live supplies. Meanwhile, PEI producers are accused of dumping mussels on the U.S.

market. If found guilty, tariffs will likely be imposed on PEI product.

Quahog processors were compelled to jack up prices of fried-clam strips and clam chowders for industrial use because quahog catches have dropped considerably. Last year, only 3.1 million bushels – less than two-thirds of the quota – were harvested.

Many fishermen have switched from targeting quahogs, or ocean clams, to more lucrative species like scallops. Rising fuel costs and unfavorable weather conditions have also contributed to the supply crunch. Processors are dishing out more than the usual $4 to $4.75 a bushel to lure fishermen.

An overdue supply boost in early May drove prices of American lobster – halves, quarters and chickens – from the mid- to high-$7 range to the low- to mid-$5 by mid-May. Jumbos and selects were still fetching $7 to $7.25. But prices typically fall in June, when availability improves in the Maritimes and New England.

Half of Newfoundland’s snow crab quota, which was increased to 54,710 metric tons in early May, is typically landed by the end of June. In mid-May, 5- to 8-ounce sections brought $3.27, down from $3.35 at the fishery’s April opening.

Prices of domestic red king crab are firm, even though U.S. imports of Russian product were down 30 percent, to 2,343 metric tons, through February. Hampered by its ailing economy, Japan has shown little buying interest, which may keep 12- to 14-ounce legs and claws from reaching the $11 mark. – S.H.

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SALMON

Memorial Day signals demand boost
Wild salmon shadows farmed product, but prices are hard to ignore

Farmed Atlantic salmon distributors were optimistic that Memorial Day weekend would generate stronger demand than Mother’s Day. Retailers are running promotions and offering specials on grill-friendly fish now that summer is unofficially under way. Prices are as low as the mid-$1 range for whole farmed fish and in the mid-$2 range for fillets.

But Atlantic salmon will have to compete with cheaper-than-usual wild product from the West Coast. Strong chinook catches in Southeast Alaska, Oregon and California supplied distributors with an abundance of product, pushing prices down. Fresh California kings brought $2.35 to $2.50 a pound in mid-May. And Alaska’s prized Copper River fishery kicked off May 17.

Even though demand for wild salmon displaces farmed product in the summer, some retailers are moving a lot of pen-reared fish at $2.99 a pound. They’re able to because British Columbia-raised whole fish, for one, have been readily available for $1.45 to $1.55. Chilean fillets cost as little as $2.40. New Brunswick-raised whole fish was also a good deal at $1.80 to $1.85 for 6-8s and 8-10s, $1.75 to $1.85 for 10-12s, $1.60 to $1.70 for 14-16s and $1.55 to $1.60 for 16-18s.

Infectious salmon anemia, which spread from New Brunswick to three Maine aquaculture facilities, is forcing producers to pull fish out of the water early.

That, coupled with the progression of the production cycle, has boosted availability on the East Coast. – S.H.

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FOCUS

Summer calls for tuna
Yellowfin, bigeye prices hinge on supply

Availability of fresh tuna was adequate for the demand boost anticipated in June. Interest tapered off after Mother’s Day, one of the busiest restaurant holidays, but was expected to pick up Memorial Day weekend.

Restaurateurs and retailers start running promotions and offering specials on tuna and other grill-friendly fish in June. Plus, millions of vacationers flock to the seashore for the summer once school is out.

In Miami in mid-May, imported tuna brought $4.50 a pound for No. 2-plus yellowfin and $4.25 for No. 2-plus bigeye. At New York’s Fulton Fish Market, cuts of No. 2-plus yellowfin commanded $5.50 from Venezuela, and $6 from Vietnam.

Depending on quality, H&G fish were wholesaling for $5.50 to $5.75, and loins for $7.95 to $8.25, according to one distributor, who says, "Good tuna is hard to find."

H&G fish typically weigh 40 to 60 pounds. Loins are usually cut into 8- to 10-pound skin-on portions.

As for domestic product, No. 2-plus yellowfin were going for $5.25 to $5.50, and No. 1 yellowfin for $7.25 to $7.50.

Prices were steady last month. Whether they will rise this month hinges on availability. The full moon on June 6 should help boost catch rates in the Eastern Hemisphere.

Through February, U.S. imports of fresh yellowfin topped 2,600 metric tons, a 485-metric-ton increase from last year’s two-month total. At 710 metric tons, Vietnam was the leading supplier, followed by Brazil (366 metric tons), Trinidad and Tobago (333 metric tons), the Philippines (268 metric tons) and Panama (149 metric tons). – S.H.

Market Reports online

For weekly updates on all Market Report species, check SeaFood Business’ price and supply news at www.Gofish.com.

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