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Thank you for joining us for The Tradex Foods - "3-Minute Market Insight"
The Monday morning “pulse report” for seafood purchasers.
--------SOME FAST FACTS TO START THIS WEEKS BROADCAST:
-Pangasius raw material prices have fallen by 500 VND per KG or 2.4 cents per KG US this
week. --------In news this week – Whitefish Pricing
is volatile. -Rising consumer demand for Whitefish finished
product is resulting in raw material shortages and increased lead times at Asian processing
plants. -Processors are making large commitments – in
particular on Cod Loins and *** portions to Brazil.
-As a result many processors are reporting that production is either full until mid-summer
- or that Cod lead times are a minimum of 10 weeks.
-It’s a similar story for other Whitefish as well – Ocean Perch materials are so low
that suppliers have to bid on product. -Current Ocean Perch raw material price is
$4500 per metric ton – which translates into $1 more per pound for fillets in comparison
to two months ago. -Tilapia is one Whitefish that processors
are not reporting delayed production. -The reason is sluggish demand in North America
due to extremely high prices. -Tilapia prices have been high since supply
dropped in 2010. -Moving forward – I expect prices to remain
high until at least September or October when the season opens.
-However - a number of factors – including China labor shortages - increased labor wages
- shortages of electricity - high material costs - currency appreciation and cut back
on business loans from banks are putting pressure on mid-sized companies and may result in high
prices into 2012. --------Some Salmon News
-While Salmon fisheries are just opening – the Frozen Salmon processing season in Asia is
winding down. -Currently - there are not any lead times
for Salmon production – the challenge is more the issue of finding the raw material.
-As I look forward to July - when processing volumes pick back up - if Chum price predictions
are accurate - then many customers who list Pacific Salmon - may be switching to Pinks.
-Historically - Pinks have been canned - but growing demand for value-added production
overseas has driven the amount of frozen product to almost 50 percent of production last year
– and that proportion may grow even more this year.
--------In other news - Newfoundland Snow Crab landings are 40 percent ahead of 2010.
-Last week we reported that Snow Crab prices may come down, but I recently heard that packers
are saying commitments to Japanese and Asian buyers - as well as with major US retailers
will leave less product available for the spot market and will likely keep prices high.
--------Thank you for joining me for The Tradex Foods - "3-Minute Market Insight"
This is Robert Reierson - “BUY SMART” and “EAT MORE SEAFOOD”