Moscow's freshfrozen fish market displaying mixed trends in late March 2009

As per the fourth week of March 2009 trade in freshfrozen seafood in Moscow has shown mixed price trends for several frozen fish products, analysts of www.fishnet-russia.com (www.fishnet.ru) concluded after analyzing the current situation on the market.

Unlike official forecasts of a large rise of supplies to the domestic market, seafood shipments from the Russian Far East have displayed a negative trend. To the markets of the European part of Russia seafood has been shipped in smaller volumes as in January-February 2009 the Far Eastern Railways transported 69,200 tonnes, 18% down on the same period last year. Due to weakening exchange rate of the Russian ruble it has become more profitable for the market players to export seafood rather than ship production to the domestic market.

The nation's media keeps discussing the information about possible launch of an Ocean chain of affordable seafood stores. In particular, the Federal Fisheries Agency and authorities of Saint Petersburg have held talks about launching 5-7 stores in the city.

According to the Agency's head Andrey Krainy, the municipal properties to provide floor space for the stores will be rented by the Ocean chain at soft rates to enable seafood prices 30% lower than in other retail chains. In earlier reports Krainy said that in late spring of the current year Ocean shops would be opened in Arkhangelsk and Astrakhan. Another two shops will be launched in Murmansk soon.

The fact that retail seafood prices considerably exceed the wholesale price tags can be proved by the price-lists of Moscow's big multiples. In particular, as per 25 March 2009 Moscow's hypermarket and supermarket chain The Seventh Continent has been charging RUB113.90 per 0.8kg of headed pollock in retail packs versus the highest wholesale price of about RUB70.00 per kilo. The chain has been also offering vacuum-packed HGT pollock at RUB242.00 per 900 grams. Skinned tilapia fillets in 500-gram packs have been marketed at a price of RUB207.00 versus the average wholesale price of RUB170.00 per kilo. Pangasius fillets in 500-gram packs cost RUB117.00 with the average wholesale price of RUB70.00 per kilo. Taking into account such high retail prices in the large multiples the launch of the Ocean affordable seafood chain has been getting an ever more urgent issue.

As for the fishing scene, the capelin fishery in Norway, which is an important source of the species for the Russian market, has been coming to an end. During this fishery season capelin has been mostly large (30/40 and 35/40 fish per kilo) with the share of roe capelin being fairly high.

According to the Norwegian electronic auction Sildeslaget, as per 19 March 2009 the Norwegian vessels harvested 198,000 tonnes of capelin, thus exhausting practically all the quota. More specifically, the quota remainder amounts to 25,000 tonnes.

One of these days the Vietnamese authorities have set up the so called Management Board of Exporting Pangasius to Russian Market under the initiative of the nation's Association of Fish Processors and Exporters (VASEP). In particular, the board is aimed at bringing the products in compliance with the Russian food safety standards and elimination of violations disclosed at pangasius farms and processing plants. Despite the information about Russia's lifting a ban for pangasius import from Vietnam which has been circulated in the Vietnamese media reports, official sources in Russia's Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) say that the restrictions have not been lifted and when it happens is still unknown as per late March 2009.

In January 2009 Russia's import of hake products has kept falling. More specifically, in January 2009 only 120 tonnes of hake were imported to Russia, 73% down on the same month last year. The average import price has increased by 25% on January 2008 and reached 1.90 USD per kilo FAS or ex-transport vessel.

Along with the above development frozen Norwegian salmon has somewhat appreciated. More specifically, as per the fourth week of March 2009 the product price has jumped to 30.46 NOK per kilo (+2.7%).