Top Story: Canadian trade agreement with EU will reshape some US seafood markets
News Summary:
The top 3 Canadian exports to the US are lobster, crab, and salmon, and lobster and crab markets are likely to be reshaped by the Free trade agreement with the EU, which will be signed in Ottawa on Sept. 25th. The deal will eliminate virtually all seafood tariffs for Canadian product going to the EU, with expansion of the lobster and crab markets likely to be the most significant. Combined with growing Asian demand for both species, this will mean a permanent shift towards a higher value for lobster and crab, at least until aquaculture on these products matures.
Thai shrimp exporters got a 1.1% duty from the Dept. of Commerce in their latest final admin review. So far the DOC has not deviated from their preliminary numbers, at least regarding Thailand and India. Vietnam’s duty rates will be announced in Sept.
Alaska’s overall salmon production is well down this year, even though statewide runs have come in heavier than forecast. The chum runs in both the Yukon and even farther north in Kotzebue- have been huge, with Kotzebue chum landings near records. The iced fish is flown to Anchorage for processing, so harvest volumes depend on lift capacity.
Tilapia seedlings are in short supply in China, as hot weather means hatcheries need to delay production. Some estimates are demand is up 20%.
Also, as everyone in the cold water shrimp business knows, the product shortages are leading to record high prices. Last time this happened, in the 1980’s a big collapse followed - but this time the high prices are driven by a regime shift leading to lower landings across the North Atlantic, generally blamed on cod predation.
We run restaurant news on our site even though the articles are not among the most read because restaurant and foodservice trends have a big impact on seafood sales. McDonald’s is facing a very tough situation as young people abandon the restaurant chain in droves, looking for fresher and more healthy presentations. It seems like this would be a marketing opportunity to create something other than the standard breaded portion for fast casual - as that type of fish presentation may be losing appeal. Of course - McDonald’s woes are driven by customer perception of poor hamburgers, not fish. But we are still part of the ‘traditional’ mix.
John Sackton, Editor And Publisher , Lexington, Massachusetts
Seafood.com News 1-781-861-1441
Email comments to jsackton@seafood.com
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