Overview of Moscow's freshfrozen fish market as per third week of June 2009

As per the third week of June 2009 trade in freshfrozen seafood in Moscow has shown mixed price trends, analysts of www.fishnet-russia.com (www.fishnet.ru) concluded after analyzing the current situation on the market.

Among important events of the week, Chairman of Russia's Government Vladimir Putin has held a meeting devoted to development of onshore infrastruсture for seafood handling, storage and processing. The nation's PM has underlined that the Government is ready to consider temporary cancellation of import customs duties for coldstorage and other equipment needed for seafood storage and processing. Besides, PM has also highlighted the need of easier access to borrowed money funds for investors engaged in building and modernization of fish processing facilities. According to Putin, the budget of the current year 2009 includes 250 million RUR to subsidize bank interest rates for the respective loans.

The participants of the meeting have also discussed the possibility of mortgage of capture quotas as security when applying for bank credit. If the credit is not duly paid, the bank would be able to sell the quotas at auction.

Along with the above developments, in the third week of June 2009 the news has come that the resource fees will be reduced to 15% of the basic rate for sole traders.

In the same week Russia's Federal Service for Veterinary and Phytosanitary Surveillance Rosselkhoznadzor has released the lists of vessels and companies based in the Falkland Islands and engaged in fishing, processing and storage which are approved for export to the Russian Federation after 15 June 2009. The Russian vets have also released the information about introduction of temporary restrictions for seafood shipments from Latvia, the USA and Estonia as of 20 June 2009.

As per close to mid-June 2009 the market players were concerned that the lists of approved Chinese plants have not yet been published. The thing is that very recently free seafood importation from the Chinese plants to the Russian Federation was allowed only until 1 July 2009 and afterwards importation would have been allowed only from approved plants. According to one importer, the Chinese plants say that the inspections were carried out one month ago. Happily the market could sigh with relief as at the moment of going to press the news has come that the deadline for switch to approved plants have been shifted to 1 September 2009.

Santa-Bremor Company operating in the free economic zone of Brest, Belarus, and holding a 98% share in the nation's seafood export may be facing troubles caused by the economic conflict between Russia and Belarus. The Russian are unhappy with what they call unfair competition because that the company's rising shipments of ready-to-eat seafood to Russia have been encouraged by tax exemptions for exported products, the privileges having been granted to it as a resident of the free economic zone.

According to the reports coming from the Russian Far East, the tariffs for seafood shipments have started to grow.

In general, as per the third week of June 2009 the market has been showing mixed price trends for finfish and non-finfish products. In particular, the market has displayed smaller prices for pollock, tilapia fillets, large sizes of farmed trout and Atlantic salmon. In the meantime, prices for magister squid tubes and small sizes of farmed salmon and trout have slightly strengthened.

Pink salmon

According to the market participants, the coldstore inventories of chum salmon in Moscow have been exhausted as per the third week of June 2009 Moscow and the species ceased to be freely available on the market. According to one trader, the inventories of head-on gutted pink salmon in the city's coldstores amounted to ca.300 tonnes, while the inventories of w/r pink salmon amount to ca.400 tonnes. Experts think that by the moment of arrival of the first lots of products from the new season of 2009 the above inventories will have been sold out.

About 50% of the sockeye capture quota has been covered in Kamchatka in the Ust Kamchatka district, namely 2400 tonnes out of allowed 5100 tonnes. Experts note excellent quality of the products, the harvest to be exported in full. The price of newly harvested sockeye amounts to ca.6 USD (about RUR200.00 per kilo).

With the prices being as high as above, the traders forecast the pink salmon prices at about RUR75.00 per kilo on the fishing grounds and ca.RUR100.00 per kilo in Moscow.

As per the third week of June 2009 the pink salmon prices on Moscow's seafood market have remained as follows:

• RUR125.00-130.00 per kilo of pink salmon w/r -;
• RUR130.00-140.00 per kilo of pink salmon head-on gutted,
• RUR110.00-140.00 per kilo of Russian skin-on pink salmon fillets IQF 300g.

Salmon roe

In the third week of June 2009 the situation on the market of salted salmon roe has remained difficult with the sales being very weak.

Many wholesalers have kept offering good quality chum salmon and pink salmon roe in cubotainers at about RUR1200.00-1300.00 per kilo, though these quotes are well above actual prices at which the products are sold.

Frozen sockeye and coho roe in skeins has been offered at RUR500.00-600.00 per kilo. Pink salmon roe in skeins is traded from RUR700.00 per kilo, VAT inclusive.

Atlantic salmon and trout

According to the Norwegian Fish Pool electronic market, in the near future traders expect a new rise for Atlantic salmon prices. More specifically, the prices for 3-6kg salmon are forecasted to grow from the current 33 NOK to 38.50 Nok per kilo (4.33 Euro or 6.09 USD). This will happen due to the lack of salmon supply, especially at farms in the North Norway. The average weight of salmon has become lower since the beginning of 2009, which can be attributed to increased slaughtering on the farms.

However, new classes will be ready for slaughtering only after summer and Fish Pool forecasts a price decrease approximately to 32 NOK per kilo in September 2009.

As for Moscow's market, there is a slight rise for small sizes 4-5 and 5-6 kilos and a certain decrease of prices for large sizes of Norwegian and Chilean salmon.

As per the third week of June, Norwegian salmon SUPERIOR has been offered in Moscow from RUR280.00 per kilo of the size 4-5, from RUR285.00 per kilo of the size 5-6, from RUR290.00 per kilo of the size 6-7, from RUR295.00 per kilo of the size 7-8 and from RUR295.00 per kilo of the size 8-9.

Chilean salmon PREMIUM has been marketed from RUR250.00 per kilo of the size 4-5, from RUR260.00 per kilo of the size 5-6, from RUR265.00 per kilo of the size 6-7 and from RUR270.00 per kilo of thesize 7-8.

On Moscow's trout market the price fall for Chilean trout has turned to be larger than that for Norwegian trout with the biggest depreciations observed for large sizes.

As per the third week of June 2009, Norwegian trout SUPERIOR has been offered in Moscow at following prices: from RUB240.00 per kilo of the size 0.9-1.8, from RUB255.00 per kilo of the size 1.8-2.7, from RUB265.00 per kilo of the size 2.7-3.6, from RUB280.00 per kilo of the size 3.6-4.5, and from RUB290.00 per kilo of the sizes 4.5+.

Chilean trout PREMIUM has been available in Moscow from RUB240.00 per kilo of the size 0.9-1.8, from RUR245.00 per kilo of the size 1.8-2.7, from RUR260.00 per kilo of the size 2.7-3.6 and from RUR265.00 per kilo of the size 3.6-4.5.

French trout SUPERIOR headed has been traded at RUR252.00 per kilo of the size 0.9-1.8, from RUR260.00 per kilo of the sizes 1.8-2.7 and 2.7-3.6 and from RUR262.00 per kilo of the size 3.6-4.5. Appreciations have been observed for large sizes.

Herring

As per the third week of June 2009 traders reported short herring supply. According to a spokesman from a large Murmansk company, the prices have been agreed for June products to be landed in the first days of July 2009. The price with a 20% prepayment amounts to RUR21.00 for the size 200-, RUR22.00 per kilo of the size 200-300, and RUR24.00 per kilo of the size 300+.

At present herring 200-300 has been offered in Murmansk at RUR28.00-29.00 per kilo.

Herring from Norway has been offered in Saint Petersburg at RUR28.50 per kilo of the size 200-300, at RUR32.00 per kilo of the size 250+, from RUR40.00 per kilo of the size 300+ and from RUR54.00 per kilo of the size 350+.

In Moscow Norwegian herring 300+ has been marketed at RUR40.00 per kilo and the size 350+ has been offered at RUR55.50 per kilo. The supply of the size 400+ has been limited. The prices fluctuate at about RUR63.00-65.00 per kilo.

Norwegian butterfly herring fillets 4-8 have been traded in Moscow from RUR62.00 per kilo, and the count 6-10 has been offered in Moscow at RUR59.00-63.00 per kilo.

Pacific herring has been marketed ex-coldstore in Moscow at RUR28.00-30.00 per kilo of the size 270+ and at RUR36.00 per kilo of the size 300+.

Mackerel

As per the third week of June 2009, the situation on the mackerel market has not changed in general. Traders keep reporting a strong demand against the background of short supply of small sizes mackerel. Sales of large sizes have been weak due to low demand.

Prices for Norwegian mackerel from large importer in Saint Petersburg amount to RUR100.00 per kilo of the size 400-600. In Moscow the same size has been offered at RUR104.00-107.00 per kilo.

Irish mackerel has been traded at RUR98.00 per kilo of the size 400-600, at RUR126.50-128.00 per kilo of the size 600+.

Japanese mackerel 400-600 has been offered ex-coldstore in Moscow at RUR112.00 per kilo and at RUR75.00 per kilo of the size 300-500 per kilo.

Traders have been also offering French mackerel 400-600 at RUR88.00 per kilo.

Baltic herring, Baltic sprat

As per the third week of June 2009 the situation on the Baltic sprat market has remained stable without any price changes.

More specifically, Estonian sprat 10-12 cm has been sold at RUB24.00 per kilo ex-coldstore in Moscow.

Latvian sprat has been sold at RUR25.00 per kilo.

Swedish sprat 10-12 cm has been available from RUB28.00 per kilo.

As per the third week of June 2009, Baltic herring prices have remained stable.

Swedish herring has been offered ex-coldstore in Moscow from RUR30.00 per kilo of the size 14-18 and at RUR44.00 per kilo of the size 8-12.

Estonian herring has been marketed ex-coldstore in Moscow at RUR27.00 per kilo of the size 14+.

Capelin

Large coldstore inventories of capelin and comparably weak demand have resulted into a certain standstill on the capelin market.

In Murmansk the average price for capelin from the harvest of February-March 2009 amounts to ca.RUR25.00 per kilo.

In Saint Petersburg prices for Norwegian capelin amount to RUR36.00 per kilo of the size 20-30, RUR32.00-33.00 per kilo of the size 25-35, RUR30.00 per kilo of the size 30-40 and RUR26.00-27.00 per kilo of the size 40-50.

In Moscow Norwegian capelin has been marketed at RUR33.00-36.00 per kilo of the size 30-40, RUR29.00 per kilo of the size 35-45, RUR29.00 per kilo of the size 40-50.

Russian capelin 30-40 made by Arkhangelsk Trawl Fleet has been offered ex-coldstore in Moscow region at RUR27.40 per kilo subject to prepayment.

Blue whiting

As per the third week of June 2009 the situation on the blue whiting market has been comparably stable.

In Saint Petersburg blue whiting has been traded at ca.RUR23.00-24.50 per kilo.

In Moscow blue whiting has been offered at RUR26.00-28.00 per kilo.

Alaska pollock

As per the third week of June 2009 the pollock prices have kept falling. In Vladivostok the prices for wholesale purchases from 40 tonnes have been as follows: RUR46.00-47.00 per kilo of the size 25+. In Moscow pollock has been offered at ca.RUR52.00-54.00 per kilo for the lots from 20 tonnes.

According to a spokesman of one large Pacific company, the supply of inshore pollock has been growing. At present, traders have sold ca.5000 tonnes and no faults of the product quality have been disclosed yet.

With the supply being not very large the size 25+ has been offered from RUR56.00 per kilo, the sizes 30+ and 35+ have been traded from RUR57.00 per kilo and RUR59.00 per kilo correspondingly.

Chinese pollock fillets skinned IQF have been offered by many suppliers ex-coldstore in Moscow from RUR74.00 per kilo of the size 6-8 and from RUR75.00-78.00 per kilo of the size 8+.

Hake

According to official sources, from 1 January 2009 to 11 June 2009 hake landings in Argentina amounted to 121,771 tonnes, practically on a par with the landings of 124,290 tonnes through the same period of 2008.

As per the third week of June 2009 the hake market of Moscow and Saint Petersburg has been showing comparable stability.

Canadian HGT hake IQF has been offered ex-coldstore in Saint Petersburg at RUR90.00-94.00 per kilo of the size 300-500, RUR83.00 per kilo of the size 300+ and at RUR86.00 per kilo of the size 500+.

Canadian hake 300-600 has been sold in Moscow at RUR95.00-98.00 per kilo of IQF products and at RUR92.00-94.00 per kilo of block frozen products.

Prices for American HGT hake in Moscow amount to RUR88.00 per kilo of the size 300+ and RUR90.00 per kilo of the size 300-500.

Argentinean HGT hake has been offered in Moscow at RUR125.00 per kilo of the size 800-1200. Argentinean hake fillets 60-120 have been available in Moscow at RUR158.00 per kilo.

Chinese hake fillets skin-on have been sold ex-coldstore in Moscow at RUR86.00-88.00 per kilo of the count 6-8 and from RUR87.00-89.00 per kilo of the count 8+.

Ecuadorian HGT hake has been marketed at RUR70.00 per kilo of the size 80-100, at RUR83.00 per kilo of the size 100-200 and at RUR90.00 per kilo of the size 1000+.

Hake meat in cubes and discs from Uruguay has been traded at RUR75.00-77.00 per kilo.

Squid

According to spokesmen of companies in the Russian Far East, the squid fishery has been progressing extremely badly due to a number of reasons such as rising water temperatures making squid migrate more to the north thus impeding operations of the Russian fleets. Against the above background magister squid tubes have slightly appreciated.

Squid harvested by Nakhodka Trawl Fleet Base in April 2009 has been available ex-coldstore in Moscow at RUR74.00 per kilo. Squid harvested by Okeanrybflot in May 2009 has been offered at RUR73.00 per kilo. In general, the demand for squid has remained weak.

The average price for magister squid tubes in Vladivostok amounts to ca.RUR69.00-72.00 per kilo. In Moscow the price has reached ca.RUR72.00-75.00 per kilo for small wholesale purchases and RUR70.00 per kilo for truck loads.

Squid fillets made by Okeanrybflot have been sold in Moscow at RUR115.00 per kilo.

Peruvian fillets of giant squid have been marketed in Moscow at RUR52.00 per kilo.

Saury

According to a spokesman from one large company from the Russian Far East, the situation on the saury market has been difficult in the third week of June 2009. The prices for frozen saury have jumped more than twice since the beginning of the year. In the previous week Moscow trader has sold the last lot of saury 25+ at RUR55.00 per kilo, while in early 2009 the product cost ca.RUR22.00 per kilo.

The situation can be explained by the fact that the bulk of the saury stock has been canned with a fairly large volume going to refill the State Reserve.

Pangasius

As per the third week of June 2009 the pangasius market has remained stable after a price fall.

Large importers have been offering pangasius to be delivered to Saint Petersburg at prices starting from RUR75.00 per kilo.

In Moscow pangasius fillets have been offered by many suppliers at prices of about RUR82.00-85.00 per kilo.

Tilapia

On Moscow's tilapia market prices for tilapia fillets have continued to decline as per the third week of June.

More specifically, Chinese fillets of tilapia have been offered ex-coldstore in Saint Petersburg and Moscow at RUR139.00-147.00 per kilo of the size 3-5 and at RUR144.00-149.00 per kilo of the size 5-7.

HGT tilapia has been offered at RUR111.00 per kilo of the size 500-800 and at RUR114.00 per kilo of the size 800+. The prices remain stable.

Shrimp

According to many foreign sources, the world shrimp market has been showing a deep recession. The USA, the largest market of shrimp, have considerably reduced consumption. According to the official statistics information, in 2008 Russia imported 64,113 tonnes of all species of frozen shrimp, slightly down on 66,995 tonnes imported in 2007. Due to continuous economic recession importation of shrimp to Russia will probably continue falling, and main market players will probably change.

As per the third week of June 2009 frozen pink shrimp from Denmark has been marketed at RUR127.00-142.00 per kilo of the count 50/70, RUR100.00-117.00 per kilo of the count 70/90 and RUR107.00 per kilo of the count 90/120.

Canadian frozen shrimp has been offered in Moscow at RUR120.00-122.00 per kilo of the count 60/80 and at RUR100.00-110.00 per kilo of the count 70/90.

Tiger shrimp from Bangladesh and Indonesia has been traded at RUR425.00 per kilo of the count 16/20 and RUR545.00 per kilo of the count 13/15.

Queen shrimp from Ecuador has been sold at RUR215.00 per kilo of the count 20/40 and RUR225.00 per kilo of the count 10/30.

White shrimp from Thailand has been available at RUR220.00 per kilo of the size 51/60 and at RUR230.00 per kilo of the size 41/50.