Overview of Moscow's freshfrozen fish market as per end of September 2008

As per the end of September 2008 the Moscow freshfrozen market was marked by certain slackening of activity, analysts of www.fishnet-russia.com (www.fishnet.ru) concluded after analyzing the current situation on the market.

Many of the market players which participated at the World-Food Moscow 2008 exhibition confirmed the fact of decreasing of activity in seafood trade as well as the decreased number of customers. The continuous crisis on the world financial markets also influenced the general atmosphere in the industry.

As per the end of September 2008 the prices of pelagic fish species, blue whiting, salmon species and salmon roe continued growing.

Salmons

The Kamchatka-based Commission of Anadromous Fish Species Fishery Regulation taking into account the recommendations of KamchatNIRO scientists and regional body of Rosrybolovstvo (Fishery Agency) came to the decision of closing the commercial salmon fisheries in Kamchatka Bay and the river Kamchatka.

The Sakhalin-based fishermen covered the quotas at 69.6% and by the 24th of September the fishermen caught more than 84,500 tonnes of pink salmon out of planned 111,300 tonnes by the end of the fishing season.

More than 100,000 tonnes of salmon species were fished on Kamchatka. The commercial fishery ended up and the allocated quotas were covered at 88 %. The local fishermen harvested more than 23,700 tonnes of salmonids out of 33, 000 tonnes of quotas allocated in the East of Kamchatka and more than 80,200 tonnes of salmon species were taken up of 85,500 tonnes of quotas in the West coast of the peninsula.

Pink salmon

Despite the expected decreasing of prices of pink salmon after the end of the fishing season, the prices of this salmon species have gone up. According to some traders, the pink salmon supply has been limited and the price has been consequently growing. The average price amounted to ca.RUB70 per kilo.

The w/r silverside pink salmon of first grade grew to RUB69 /10 tonnes+ and of first grade was marketed at RUB70 for the same volume of 10 tonnes+.

On the Moscow market the average price of head-on and gutted silverside pink salmon 1.5+ originating from Kamchatka amounted to RUB70 - 77 per kilo.

IQF Pink salmon skin-on fillet 300 was marketed at about RUB90.00-99.50 per kilo.

Chum salmon

As per the 24 th of September the allocated chum salmon quota of almost 18,000 tonnes was covered at more than 31%, namely at more than 5,600 tonnes.

According to Moscow market players, the supply of chum salmon was short and in this situation the prices of head-on and gutted chum salmon amounted to ca. RUB79.00-85.00 per kilo.

There were offers of IQF head-on gutted chum salmon 2.5-3 from RUB84.00 per kilo. Headed chum salmon was traded from RUB85.00 to RUB95.00 per kilo.

Salmon roe (ikura)

As per the end of September there was a slight increase of salmon roe prices on the Moscow market. Large wholesalers decided to stretch the sales of the products in the inventories (which have been short) at least up to the New Year.

Thus, the traders want to reduce the trading volume but to keep incomes. In this situation, many companies offered salmon roe at higher prices. The prices offered by large suppliers varied from RUB1300.00 - 1500.00 per kilo. Most typically, salmon roe has been marketed at the price RUB1300.00 per kilo.

On the other hand, taking into account the poor fishing season in the current year, the Kamchatka and Sakhalin- based salmon roe producers decided to increase the offer prices. More specifically, according to some sources, one of the largest roe producers on Kamchatka offered its products at a price of RUB1600.00 per kilo, explaining the fact by the overall price rise and the forthcoming New Year demand. Besides, the experts pointed out the reduction of presence of the illegal roe on the market that may also contribute to the price rising trend on the market.

According to some predictions of the Moscow-based experts, by the New Year holidays the price of the salmon roe may come up to the level of RUB1800.00 per kilo.

Also there is information that one of the large farmed trout producers is to wholesale its products of the new harvest at a price of RUB1800.00. Taking into account this fact and the fact that the trout roe is about RUB200.00 more expensive than the salmon one, the experts of the industry speculate that the RUB1800.00 price level could be quite possible.

The prices of the other salmon species roe also increased. Sockeye roe was marketed at a price of RUB1400.00 per kilo. The price of chum salmon roe amounted to nearly RUB1400.00 per kilo.

There were offers of chinook salmon roe at RUB1450 per kilo. Besides, Moscow traders sold frozen pink salmon roe in sacks from RUB800.00 to 850.00 per.

Atlantic salmon

As per the 37week the average export price of frozen Atlantic salmon in Norway amounted to NOK 32.94 per kilo, up 4.3 % from the previous week price.

During the period of the review Moscow traders offered Atlantic salmon of various sizes and quality.

Atlantic salmon 1-2 superior originating from Denmark was offered at RUB150.00 per kilo, while the size 3-4 kilos was available at ca.RUB190.00 per kilo.

Chilean salmon 1-2 superior was marketed at RUB130.00 per kilo, while the size 2-3 superior was offered at RUB140.00 per kilo.

Trout

According to Moscow market participants, the prices of frozen Chilean trout have been stable.

Prices of trout 1.8-2.7 amounted to RUB165-170 per kilo, while the size 2.7-4.0 was marketed at ca.RUB175 per kilo.

The trout 1.8 - 2.7 Superior originating from Norway was marketed from RUB175 - 180 per kilo, while the size 2.7 - 3.6 Superior was marketed at RUB 175 - 185 per kilo.

There were also offers of frozen Danish trout, with prices being on a par with Chilean products.

Chilled products originating from Norway increased in price and were offered on order from RUB190.00 per kilo.

Fresh trout from Karelia was marketed from RUB110.00 to RUB130.00 per kilo.

Herring

The market has been showing high demand for herring but the shipments were small and the shortage of the fish species has been influencing the price level.

According to the market participants, as per the end of September, the market faced a shortage of herring of all products both of Russian and foreign origin.

The price of the Russian herring has been gradually rising and will likely to achieve the level of RUB23.00-24.00 per kilo for the herring 200-300 and RUB 30 for the category 300+ in Murmansk.

Herring 200 - 300 originating from Russia, Murmansk delivered from St. Petersburg was offered by Moscow traders at the price RUB23.00-25.00 per kilo. The size 300+ originating from St. Petersburg, Russia was marketed at RUB27-30.50 per kilo.

Herring flaps 6-10 made by Murmansk Trawl Fleet stayed at the level of RUB46.00 per kilo.

The Norwegian fishery continued its progress. During 38 week 29,600 tonnes of herring average size 300+ were harvested.

The 300+ herring of the new season was offered at RUB 28.00 - 30.00 per kilo, at RUB39.00 - 43.50 per kilo of the herring 350+ and at RUB 48.50 - RUB55.00 for the herring 400+.

Norwegian fresh frozen herring fillets 6-10 were available at RUB49.50-55.00 per kilo in St. Petersburg.

Mackerel

The massive mackerel fishery in Norway began in the second half of the September 2008 while the daily landings amounted to 3000 tonnes. The total volume of landings amounted to 30,000 tonnes as per the 20th of September. During 23 - 30 September the Norwegian vessels fished 17,700 tonnes of mackerel average size 412g.

According to foreign sources, there has been a shortage of large sized mackerel on the market that has been causing the prices of this category to increase.

According to the Japanese sources, the prices of large mackerel soared due to high buying activity of Eastern-European importers.

The prices of small-sized mackerel which amounted to NOK7.00-9.00 per kilo for Norwegian processors jumped to NOK12.00 - 13.00 due to the increasing of sizing. The lots of large size increased to NOK14 per kilo.

The offers of mackerel 400 - 600 for the Japanese importers on terms of C&F reached NOK17 per kilo while the mackerel 600+ the supply of which was limited increased in price to NOK21.00 - 24.50 per kilo.

The price of Russian headed mackerel 200-300 amounted to RUB67 per kilo in Murmansk, RUB68.00 - RUB72.00 in St. Petersburg and RUB69.00 per kilo in Moscow. The volumes of supplies are not large while the prices were stable. The mackerel 300+ was marketed in St. Petersburg at a price ca.RUB94 - 96.50 per kilo.

Canadian mackerel to be landed in Saint Petersburg was marketed in Moscow from RUB85.00 per kilo of the size 400-600, and from RUB94.00 to RUB115.00 per kilo of the size 600+.

Norwegian mackerel 300-500 was traded at a price about RUB65.00 - 87.00 per kilo, while the size 400 - 600 was available from RUB90.00 - 95.00 per kilo and the size 600+ from RUB118.00 - 125.00 per kilo landed in St. Petersburg.

According to traders, the shipments of Norwegian mackerel 300 - 500 were expected in Murmansk at a price of RUB62 per kilo, mackerel 400-600 at a price of RUB88 per kilo and the mackerel 600+ at a price of RUB105 per kilo.

Headed mackerel 400 - 600 from Japan was offered in Moscow from RUB77 to 100 per kilo ex-coldstore.

Baltic herring, Baltic sprat

As per the end week of September 2008 no changes were observed on the Moscow market of Baltic herring and Baltic sprat. There remained a lot of offers of Russian and imported sprat.

More specifically, Kaliningrad sprat was offered at RUB23.50-26.00 per kilo. Estonian and Swedish sprat was sold at RUB21.50-24.50 per kilo. Latvian sprat 9-12 cm was marketed at RUB21.00 per kilo.

Kaliningrad herring 18+ was offered at RUB29.50 - 30.50. Finnish herring was marketed at RUB23.00-26.00 per kilo of the size 12-15 and RUB26.00-32.00 for the size 16-18.

Prices of Swedish herring amounted to RUB27.00 per kilo of the size 16+ and RUB30.00 per kilo ex-coldstore of the size 18+.

Swedish herring 14-18 to be landed yet was offered at RUB22.00 - 24.00 per kilo, the size 18+ was available at RUB31.00 per kilo.

Capelin

There had been a shortage of capelin 40 - 50 and 45-55 on the Moscow market. The prices have been gradually growing.

Experts in Murmansk admitted the absence of the Icelandic capelin 40 - 50. Inventories were offered at a price of RUB34 per kilo. In Moscow there occurred offers from RUB37 per kilo.

Norwegian capelin of the count 45/55 per kilo was marketed from RUB37.00 to 39.50 per kilo. There were offers of capelin landed in St. Petersburg at a price of RUB37 per kilo. The capelin size 40-50 was offered at a price about RUB40.00 - 43.00 per kilo.

The Canadian capelin 30-40 per kilo was sold at a price RUB41.00 - 45.00 per kilo.

Blue whiting

As per the end of September 2008, blue whiting prices kept rising in Moscow, according to industry sources. The traders offered blue whiting of the spring season. The new blue whiting fishery is to start in November 2008. At present the price of the species ex-coldstore in Murmansk amounted to RUB25.50 - 26.00. The prices of the blue whiting of Russian origin in Moscow and St. Petersburg came up slightly and the fish was marketed at a price of RUB26.00 - 28.00 per kilo.

Blue whiting fillets freshfrozen originating from Russia were sold at RUB54.00 to 58.00 per kilo.

More specifically, large importers asked higher prices from RUB26.00 to RUB29.50 per kilo. The average prices of wholesalers fluctuated at ca.RUB27.00 per kilo.

Blue whiting from Ireland was offered at RUB24.00 per kilo. Scottish blue whiting was sold at RUB26.00 - 27.00 per kilo.

Alaska pollock

The situation with the Alaska pollock supply in Moscow remained fairly stable with the sales described as smooth.

Alaska pollock prices as per the end of September 2008 remained unchanged as compared to the previous week. More specifically, Alaska pollock 250+ was sold from RUB40.00 to RUB45.00 per kilo, while the sizes 300+ and 350+ were offered from RUB42.00 and at RUB48.00-55.00 correspondingly.

As for APO fillets, the market remained well supplied with double frozen pollock fillets coming from China. In particular, IQF fillets 8+ (220+) slightly appreciated to RUB83.00-85.00 per kilo.

Hake

The prices of hake on the Moscow market have been stable/rising. The shortage of hake from Canada and the USA has been felt. The prices of the products from the South America have been stable.

There were single offers of HGT hake 300-500 from the USA from RUB88.00 to RUB95.00 per kilo.

The Canadian HGT hake 300-500 IQF was marketed at a higher price of RUB88.00 per kilo, while the size 300 - 600 IQF to be landed was sold at RUB90.00 - 100.00 per kilo.

Argentinean interleaved hake 250 - 350 was sold from RUB110.00 per kilo. There were also offers of Argentinean interleaved skinned hake fillets 100-200 at RUB113.00 per kilo and interleaved skinned fillets 200-400 from RUB118.00 to RUB122.00 per kilo.

Skinned freshfrozen hake fillets 170-220 made in China were traded from RUB85.00 per kilo, while the interleaved size 200-250 was offered at RUB110.00 per kilo.

Uruguayan HGT hake was marketed at a price from RUB57 while hake fillets in cubes were sold at RUB64.00-70.00 per kilo.

Squid

The situation with supply on the squid market has stayed unchanged.

In Moscow prices of squid tubes harvested in 2008 and made by NBAMR have been stable and varied from RUB53.00-57.00 per kilo, and there were offers of skinned squid tube made by NBAMR at RUB120.00-125.00 per kilo.

There were offers of RUB47.00 per kilo of squid tube produced in October 2007.

Argentinean cleaned tubes of illex squid were marketed at RUB60.00-77.00 per kilo while the unclean squid tube was marketed at about RUB50 per kilo.

Cleaned tubes made in China depreciated to RUB60.00-75.00 per kilo depending upon the size.

New Zealand squid tubes 200-300 were offered at RUB50.00-55.00 per kilo, Peruvian squid and squid fillets came down and were traded at RUB37.00 per kilo.

Pangasius

As per the end of September the situation on the Moscow market of the pangasius fillet has stabilized. Some traders have been speaking about the price growth although there have been offers at rather low prices.

More specifically, minimal price of pink fillets 200+ stayed at RUB58.00 per kilo, while the maximum price amounted to ca.RUB62.00 per kilo.

There were also offers of fillets 600+ at ca.RUB75.00 per kilo. White-colour fillets were sold at RUB89.00-95.00 per kilo.

Moscow traders also offered other pangasius products such as HGT at RUB90.00-95.00 per kilo, steaks at ca.RUB50.00, and fillets in cubes delivered from Lithuania dropped to RUB51.00 per kilo. Thus, the prices of pangasius products varied from RUB51.00 to RUB60.00.

Seller prices in Moscow as per 15 September 2008, RUB per kilo