Overview of Moscow's freshfrozen fish market as per the first week of October 2008

As per the first week of October 2008 the Moscow freshfrozen seafood market has been marked by moderate activity, analysts of www.fishnet-russia.com (www.fishnet.ru) concluded after analyzing the current situation on the market.

The world financial crisis has continued to affect to a certain degree the general situation of all the branches of the economy. Packers and other processing companies which traditionally buy raw material at this period have instead been waiting for credit loans for fulfillment of their obligations.

During the first week of October 2008 the Moscow and other markets of the Western Russia have been characterized by the increase of prices of pelagic and groundfish species as well as more active growth of prices of salmon species and salmon roe.

Pink salmon

According to interviewed traders, the pink salmon supply has been limited and the price has been consequently growing. The average price amounted to ca.RUB70 per kilo (from 10 to 20 tonnes ex-coldstore) for the products of good quality. Apart from this, there has been a plentiful supply of pink salmon 2008 of medium or poor quality the price of which is unlikely to grow, stabilizing at the level of RUB51.00 - 53.00 per kilo landed in the Russian Far East ports ex-coldstore.

Transportation costs via railroad have so far stayed yet at RUB1.6 million for standard 4 car reefer section. Meanwhile market participants are expecting the reduction of delivery costs in order to start shipping to the West of Russia in the second part of October.

The w/r silverside pink salmon of first grade price amounted to RUB68 /10 tonnes+ and the pink salmon head-on, gutted 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.

The price of pink salmon head-off, gutted, first grade has been notably different from the same item head-on due to the high demand of processors. The price of this item reached the level of RUB90.00 per kilo (from 10 tonnes, delivered from Moscow ex-coldstore).

IQF Pink salmon skin-on fillet 300 was marketed at about RUB95.00-110.00 per kilo.

Chum salmon

According to Moscow market players, the supply of chum salmon has been limited. Due to a relative shortage of supply the prices of chum salmon head-on, gutted amounted to ca. RUB82.00 - 85.00 per kilo.

Head-off chum salmon was marketed at RUB85.00 - 95.00. The prices of head-off, gutted chum salmon Sakhalin (which is suitable only for canning and supplies to federal institutional customers) are most likely to vary from the prices of head-off West Kamchatka (which is more demanded for processing and selling for its better organoleptic characteristics) at a level of ca. RUB10 per kilo.

Salmon roe

According to market players based in Vladivostok, on 2 October 2008 an auction of frozen salmon roe of Russian origin was held in Yuzhno-Sakhalinsk. The auction was organized by Gidrostroy Company (large processor and exporter based in the Russian Far East).

The total volume of supply at the auction amounted to ca.405 tonnes (nearly 395 tonnes of frozen pink salmon roe and slightly over 10 tonnes of frozen chum salmon roe). The buying activity of Russian wholesalers and processors was so high that all the roe offered at the auction was sold to Russian buyers. The Gidrostroy representative confirmed to http://www.fishnet-russia.com%20(www.fishnet.ru/) that the winners of the auction made their bids at the price of about USD30.00 per kilo (presumably on delivered to Vladivostok basis).

The processors have been strongly inclined to buy only roe of the superior quality while the roe of the poor quality is to wait for its buyers during the tough period of poor supply in December 2008.

Ikura

Traders do not haste to sell off salted salmon roe even of worse quality. Wholesalers have been stretching the sales of the products from the short inventories. It can be explained by the overall price rise and the forthcoming New Year demand. Besides, many agree on obvious reduction of the illegal roe on the market that may also contribute to the price rising trend.

Thus, the traders want to reduce the trading volume but to keep incomes. In this situation, many companies offered salmon roe at increasingly 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.

Many Moscow -based processors have already offered the canned roe (packed in tin 140g) at a price of ca. RUB190.00 - 200.00 per can. The roe in glass jar 100g was offered at a price RUB150.00.

According to some experts' speculations, by the New Year the salmon roe price can come nearer to the level of RUB1800.00 per kilo.

The prices of the other salmon species roe also increased. Sockeye roe was marketed at a price from 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. The coho salmon Kamchatka was offered at a price of ca.RUB1400.00 per kilo. Besides, Moscow traders sold frozen pink salmon roe in sacks from RUB800.00 to 850.00 per kilo.

Atlantic salmon

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

Atlantic salmon 1-2 superior originating from Denmark was offered from 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 from RUB130.00 per kilo, while the size 2-3 superior was offered from RUB140.00 per kilo.

Trout

According to Moscow market participants, the supplies of frozen Chilean trout have been stable. The prices of this item have been slightly growing.

Prices of trout 1.8-2.7 grew to the minimal level of RUB168.00 per kilo and the highest level of RUB190.00 per kilo, while the size 2.7-4.0 was marketed at RUB176.00 - 185.00 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 at RUB180.00 - RUB185.00 per kilo.

Fresh trout from Karelia was marketed from RUB110.00 to RUB140.00 per kilo.

Herring

During the last week of September the Norwegian herring fishery unrolled under favourable conditions. The daily catch volumes varied from 150 - 600 tonnes of herring mainly 300+ size.

As per the 39 week of 2008 the total herring catch exceeded 24,300 tonnes. Considerable part of the fish was sold for human consumption at prices of NOK 3.67 on the average very attractive for the fishermen.

The market has been showing high demand for herring that cannot but influence the price level.

According to the market participants, as per the first week of October, the Moscow market faced a shortage of herring of all products both of Russian and foreign origin. The favorable situation on the foreign markets caused many Russian fleets to export the bulk of their herring products that increased the shortage of the fish on the domestic market.

Besides, according to a trading source the shortage of both Norwegian and Russian origin herring may grow further due to alleged big contracts of Norwegian exporters with Africa (w/r small herring) and EU (herring fillets).

As a representative of NSEC told http://www.fishnet-russia.com/ (https://www.fishnet.ru/) the demand for Norwegian spring spawning herring has increased over the last few years and the export from Norway to EU countries and Africa has increased in 2007 and 2008. However, the quota for Norwegian spring spawning herring is much larger than what it was a few years ago and Norway has enough herring to supply Russian and other eastern European market as well as the EU markets and the African market. The herring shipped to Africa is of smaller size than what any of the other markets usually want to buy and therefore cheaper. The export to Africa consists mostly of whole frozen small herring, but to the EU countries it is also a lot of fillet products.

Meanwhile, the price of herring 200 - 300 in Murmansk varied from RUB22.00 to 23.50 per kilo and the price of herring 300+ amounted to ca.RUB28.50 - 30.00 per kilo. The catches of both items remained stable.

The offers of Norwegian herring 300+ appeared in Murmansk at a price of RUB29.50 per kilo, of RUB34.00 for herring 330+, and of RUB38.50 for the herring 350+.

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 300+ herring of the new season was offered at RUB 29.50 - 30.00 per kilo, at RUB37.00 - 40.50 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.

During the first week of October large shipments of herring fillets 6 - 10 from Iceland were expected in Murmansk at a price RUB50.00 - 51.00 per kilo.

Mackerel

The massive fishery of mackerel in Norway has continued. As per 39 week of 2008 the Norwegian vessels fished more than 17,600 tonnes of mackerel average size 400+. All the catches of mackerel have been sold for human consumption at an average price of NOK11.43 per kilo.

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

According to industry sources, Pacific mackerel fishery is to start in October. The mackerel of this season is traditionally more fatty and firm and goes for smoking and other purposes. But the consumption of the Pacific mackerel is limited to the Russian Far East and Siberian regions. Presumably, the small-sized mackerel 200 - 400 will be the only raw material available this year for canned processing due to full absence of supply from Mauritania.

Headed mackerel 400 - 600 Japan was offered in Moscow at a price of RUB77.00 - 100 per kilo, ex-coldstore.

Some importers have been marketing the mackerel originated from Canada, which exportation on the territory of Russian Federation has not been restricted by Russian vet authorities.

The Canadian mackerel 300 - 500 delivered in St. Petersburg has already been available at a price RUB66 per kilo, the mackerel 400 - 600 was marketed at RUB80.00 - 90.00 per kilo. The mackerel 600+ was offered in Moscow at RUB105 per kilo, ex-coldstore.

Norwegian mackerel 300 - 500 was offered at ca. RUB64.00 - 87.00; 400 - 600 at RUB86.00 - 95.00 per kilo and the mackerel 600+ was marketed from RUB118.00 - 125.00 per kilo, delivered in St. Petersburg.

There appeared offers of mackerel 400 - 600 from Ireland at a price of RUB74.00 - 83.00 per kilo. The headed mackerel 200 - 400 produced in Scotland was available in St. Petersburg at RUB84.00 per kilo, ex-coldstore.

The price of headed Russian mackerel 200-300 amounted to RUB67.00 in Murmansk and at RUB68.00 - 72.00 (in St. Petersburg) and at RUB69.00 per kilo in Moscow. The volumes of supply have not been large while the prices have been stable. The mackerel 300+ was marketed in St. Petersburg at around RUB94.00 - 96.50 per kilo.

Baltic herring, Baltic sprat

The Baltic sprat has disappeared from some suppliers' price lists, although there was no price growth of this fish item on the market. The bulk of Baltic sprat was offered as in transit for landing in St. Petersburg.

Estonian sprat 10 - 12 was sold at RUB21.50 per kilo. The Swedish sprat 10 - 12 was available in Moscow at RUB24.50 per kilo. The Baltic sprat 8 - 10 was marketed in Moscow at RUB18.00 per kilo. Latvian sprat 9 - 12 was offered at a price of RUB21.00 per kilo.

Finnish herring was marketed at RUB24.00-26.00 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, ex-coldstore.

Capelin

As per the first week of October the shortage of capelin on the Moscow fish market has grown. The supply was quite limited. The small sized capelin 45 - 55 has practically disappeared from the offer lists of many sellers.

According to Murmansk experts, Icelandic capelin 40 - 50 was practically not available on the market. The last of inventories was being sold at a price of RUB34.00 per kilo.

The Canadian capelin 30-40 per kilo was sold at a price RUB43.00 per kilo, ex-coldstore. The price of capelin delivered in St. Petersburg amounted to ca. RUB41.00 per kilo, ex-coldstore.

There were no offers of capelin from other countries.

The Blue whiting

As per the first week of October 2008, blue whiting prices kept rising in Moscow, according to industry sources. 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 - 27.00. 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 RUB28.00 - 31.00 per kilo.

The freshfrozen blue whiting fillets of Russian origin were sold at RUB54.00 - 58.00 per kilo. The blue whiting backs produced by Murmansk Trawl Fleet was offered at RUB42.00 - 48.00 per kilo, ex-coldstore. 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.

The Scottish blue whiting was offered at RUB26.00 - 27.00 per kilo.

Alaska Pollock

As per the beginning of October the inshore fleet of Kamchatka started covering Alaska pollock quotas in the West and South-West coast of the peninsula. The fishing fleet of small and medium sized vessels has been increasing that means that the supply will be strong and the price growth of groundfish species like plaice, cod, wachna cod, as well as Alaska pollock is not expected. In the beginning of October the Chinese buyers increased their FOB price bids as well as their buying activity of the pollock from the Russian Bering sea. In fact, the Alaska pollock from this area was never sold on the domestic market that is why it did not influence much the price situation on the Russian market.

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

Since the 22 September 2008 the prices of Alaska pollock in Moscow have not changed. The pollock 250+ was sold at RUB40.00 - 45.00, the Alaska pollock 300+ was marketed from RUB42.00 per kilo while pollock 350+ was offered at RUB48-55 per kilo.

As for APO fillets, the market remained well supplied with double frozen pollock fillets coming from China. There were offers of skinned APO fillets IQF 6-8 (180g) and 8+ (220+g).

The average price of APO fillets 6 - 8 amounted to RUB70.00-75.00 per kilo. In particular, IQF fillets 8+ (220+) amounted to ca.RUB75.00 per kilo.

Hake

According to Russian importers the shortage of hake supplies from all countries on the Moscow market stayed. As it was said before, the shortfall of hake in the USA amounted to nearly 100,000 tonnes and that is unclear if the fishery will be resumed. The fisheries in Canada and Latin America have also been poor.

At present, the price of hake HGT reached USD3 per kilo FOB, resulting into an unacceptable price for the end Russian market. As per the beginning of the October 2008 the restrictions of exportation from Latin America imposed by Russian vets were postponed till 1 November 2008.

There were single offers of HGT hake 300-500 from the USA from RUB88.00 to RUB95.00 per kilo as well as offers of hake 300 - 600 IQF landed 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 at 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 RUB110.00-125.00 per kilo, skinned wings of squid were marketed at RUB81.00 per kilo, squid rings were offered at RUB118.00 per kilo and the squid in salad mix was available at RUB91.00 per kilo.

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 first week of October 2008 the situation on the Moscow market of the pangasius fillet has stabilized although some price rise can be felt.

More specifically, minimal price of pink fillets 200+ stayed at RUB58.00 per kilo, while the maximum price grew to RUB67.00 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.

Ocean perch

According to industry representatives, the fishery of ocean perch conducted by Murmansk Trawl Fleet in September 2008 was finished due to the complete covering of the quota leading to drastic increase of prices of ocean perch 150 - 300. Namely, the price of this item grew to RUB105 per kilo. It is likely to be connected with the termination of the fishing permits for this species fishery till the end of 2008.

Seller prices in Moscow as per 6 October 2008, RUB per kilo