Overview of Moscow's freshfrozen fish market as per third week of May 2010

As per the third week of May 2010 trade in freshfrozen seafood in Moscow has shown mixed price trends, analysts of https://www.fishnet.ru/admin/www.megafishnet.com (https://www.fishnet.ru/) concluded after analyzing the current situation on the market.

In the week under analysis the market participants, in particular importers and exporters, were mostly focused on the latest trends in exchange rates of hard currencies. More specifically, active traders say that there is uncertainty connected with a dramatic weakening of Euro. With Euro weakening the Russian products on the European market have been depreciating. Despite the Russian exporters have got contracts in USD, European importers pay in Euro which has caused losses for the Russian suppliers. On the other hand, they have been observing extremely non-stable exchange rate of USD rising by ca.RUR1.50 thus meaning a rise of products' import value in RUR equivalent.

The total Russian harvest of aquatic biological resources from 1 January 2010 totaled 1,596,400 metric tons, 252,700 tonnes up on last year. The TACs' take-up amounted to 40%, still rising by 18.8% on last year.

According to Russia's Statistics Committee, in 2008 Russians consumed nearly two million tonnes of fish products with annual per capita consumption amounting to 19.7 kilos rising to 20.2 kilos in 2009.

New sanitary rules

Another development of the third week of May 2010 has been the order of Russia's Head Sanitary Doctor "About Approval of Sanitary Rules and Norms 2.3.2.2603-10" stipulating normative content of glazing in frozen fish fillets.

More specifically, under the new rules labels of consumer packs of fish products shall contain extra information about frozen fish products such as:

• 1) for glazed products the net weight shall be specified without glazing
• 2) products made from frozen raw fish shall be specified as double frozen.

Frozen salted and marinated fish products shall be labeled as frozen products.

When processing fish fillets with food additives the water content in fillets after deglazing shall not exceed 86% of fillet weight. Weight of frozen fish glazing shall not exceed 5% of net weight for finfish-based items, 6% of shrimp products and for fish products made from other aquatic invertebrates, marine mammals, seaweed and other aquatic animals and plants shall not exceed 8% of glazed products.

The above mentioned sanitary rules shall come into effect as of 1 October 2010.

Pink and chum salmon

As per the third week of May 2010 pink salmon sales have remained stable, while chum salmon has been selling very badly. The market has been still facing downward pressure on prices.

Headed and gutted pink salmon in lots with up to 50% of products with good meat content has been sold at RUR75.00-76.00 per kilo with the sales being fairly stable. Product lots with up to 80% of good quality pinks from leading producers have been sold at RUR80.00 per kilo.

Head-on and gutted pink salmon has been offered at about RUR60.00 per kilo of pinks with soft meat and at RUR70.00 per kilo of pinks with good quality meat.

According to active traders, the market supply of headed and gutted pink salmon of the second grade, the price for which has declined already to RUR55.00 per kilo. The demand for such products from the processors has been very weak. Prices for chum salmon of the first grade amount to ca.RUR75.00 per kilo.

Salmon caviar

According to active traders, sales of salmon caviar have been flat. Lightly salted caviar has been offered from RUR110.00 to RUR130.00 per 140-gram can depending on quality. Pink and chum salmon in bulk has been traded from RUR900.00 to RUR1050.00 per kilo.

Atlantic salmon/trout

Prices for chilled salmon on the Russian market remain high. Depending on fish size offers of large importers start from RUR285.00-290.00 per kilo. Prices for chilled Norwegian trout have been even higher and started from RUR310.00 per kilo.

Norwegian salmon SUPERIOR has been offered in Moscow from RUR275.00 per kilo of the size 4-5, from RUR275.00 per kilo of the size 5-6, from RUR275.00 per kilo of the size 6-7, from RUR277.00 per kilo of the size 7-8, from RUR281.00 per kilo of the size 8-9, from RUR283.00 per kilo of the size 9-10 and from RUR285.00 per kilo of the size 10-12.

Chilean salmon PREMIUM has been marketed from RUR225.00 per kilo of the size 1-2, from RUR275.00 per kilo of the size 8-9, from RUR280.00 per kilo of the size 9-10 and from RUR285.00 per kilo of the size 10-15.

As per the third week of May 2010 Norwegian trout SUPERIOR has been offered in Moscow at following prices: from RUR240.00 per kilo of the size 0.9-1.8, from RUR255.00 per kilo of the size 1.8-2.7, from RUR268.00 per kilo of the size 2.7-3.6, from RUR277.00 per kilo of the size 3.6-4.5, and from RUR280.00 per kilo of the sizes 4.5+.

Chilean trout PREMIUM has been available in Moscow from RUR235.00 per kilo of the size 0.9-1.8, from RUR245.00 per kilo of the size 1.8-2.7, from RUR263.00 per kilo of the size 2.7-4.0 and from RUR270.00 per kilo of the size 3.6-4.5.

Faroese trout SUPERIOR has been offered from RUR255.00 per kilo of the size 1.8-2.7, from RUR270.00 per kilo of the size 2.7-3.6, from RUR290.00 per kilo of the size 3.6-4.5 and at RUR295.00 per kilo of the size 4.5+.

Rainbow trout of various sizes from Spain has been sold in Moscow from RUR190.00 per kilo.

Herring

As per the third week of May 2010 herring prices have been showing positive trends. Traders have been reporting upward pressure on prices for herring 300+. Imported herring fillets have been appreciating.

The offer prices for Russian Atlantic herring in Saint Petersburg amount to ca.RUR25.00 per kilo of the size 200-300 and ca.RUR28.50 per kilo of the size 300+ subject to large wholesale purchases.

Norwegian herring has been offered in Saint Petersburg at the following prices: from RUR29.00 per kilo of the size 300+, from RUR37.00-38.00 per kilo of the size 350+ and from RUR56.00-63.00 per kilo of the size 400+.

Norwegian butterfly herring fillets 5-8 have been traded in Saint-Petersburg from RUR48.00 per kilo, ex-coldstore, and the count 6-10 has been offered at RUR43.50 per kilo.

Herring fillets 6-10 and 7-12 made by Murmansk Trawl Fleet have been traded ex-coldstore in Moscow at RUR41.00-42.00 per kilo.

Mackerel

According to some industry insiders, the mackerel fishery has not been launched so far. The first catches of red-feed mackerel fit for canning are expected to begin in the end of the month.

As per the third week of May 2010 the mackerel market experts has kept showing a shortage. The prices remain stable.

In Saint Petersburg Norwegian mackerel has been offered from RUR53.00 per kilo of the size 200-400, RUR74.00-77.00 per kilo of the size 300-500 and from RUR106.00-110.00 per kilo of the size 400-600.

Scottish mackerel has been marketed in Saint Petersburg at the following prices: from RUR72.00-75.00 per kilo of the size 300-500, from RUR105.00-108.00 per kilo of the size 400-600 and from RUR133.00 per kilo of the size 600+.

Irish mackerel has been traded from RUR72.00-75.00 per kilo of the size 300-500, from RUR105.00 per kilo of the size 400-600 and at RUR130.00-143.00 per kilo of the size 600+ in Saint Petersburg.

Icelandic mackerel headed has been traded in Saint-Petersburg at RUR52.00 per kilo of the size 200-400, RUR72.00 per kilo of the size 300-500 and from RUR101.00-105.00 per kilo of the size 400-600.

French mackerel 350-550 has been offered at RUR86.00 per kilo, while the size 400-600 has been marketed from RUR101.00 per kilo in Saint Petersburg.

Baltic herring, Baltic sprat

According to provisional catch figures, the Russian harvest of sprat in the Baltic Sea amounts to 9700 tonnes, 2000 tonnes down on last year. Sprat harvest in the Sea of Azov and in the Black Sea amounts to 1800 tonnes, 800 tonnes down last year, while the sprat catch in the Caspian Sea totals 1600 tonnes, 1100 tonnes down on last year.

As per the third week of May 2010 traders have been reporting stable prices for Baltic sprat with Russian sprat slightly appreciating.

In particular, Estonian sprat 10-12 cm has been sold from RUR16.00 per kilo ex-coldstore in Saint Petersburg.

Swedish sprat 10-12 cm has been available at RUR20.00 per kilo in Saint Petersburg and RUR21.50 per kilo in Moscow.

Baltiс sprat harvested by the Russian vessels has been offered in Saint Petersburg from RUR19.50 per kilo.

According to provisional catch figures, the Russian harvest of Baltic herring amounts to 4900 tonnes, 2000 tonnes down on last year.

As per the third week of May 2010 prices for Baltic herring have been showing mixed trends, in particular, prices for Russian products have declined, while the Finnish herring has slightly appreciated.

Russian herring 12-14 has been sold in Saint Petersburg at RUR18.00 per kilo ex-coldstore, while the size 20+ has been sold at RUR25.50 per kilo.

Finnish herring has been traded from RUR22.00 per kilo of the size 12-15 cm, RUR26.00 per kilo of the size 15-17.

Swedish herring 14-18 has been marketed at RUR25.00 per kilo in Saint Petersburg and at RUR25.50 per kilo in Moscow.

Capelin

As per the third week of May 2010 the situation on the capelin market has not changed.

In Saint Petersburg Norwegian capelin has been available at following prices: RUR28.00 per kilo of the count 25-35, RUR25.00 per kilo of the count 30-40, RUR23.00 per kilo of the count 35-45 and RUR20.00 per kilo of the count 40-50.

Russian capelin has been offered at RUR18.00-21.00 per kilo ex-coldstore in Murmansk depending on quality. In Moscow capelin harvested by Murmansk Trawl Fleet has been available at RUR24.00-27.00 per kilo of the count 40-50.

Blue whiting

The Russian fishery of blue whiting in the southeast part of the Faroese fishing zone has continued, but fish concentrations have been gradually declining as the stock has been more actively migrating to the north to the feeding grounds of the Norwegian Sea. The fleet has also been moving northwards following the stock's migration. The total harvest of blue whiting in the Faroese fishing zone through the week under analysis has decreased to 7300 tonnes, 2600 tonnes down on last year, contribution of Kaliningrad-led fishermen amounting to 24%. As per 12 May 2010 the blue whiting has been covered at 100% in the Norwegian EEZ, 46% in the Faroese fishing zone and 48.1% in the NEAFC waters.

Prices of blue whiting as per the third week of May 2010 have remained stable.

In Saint Petersburg Scottish blue whiting 25+ has been sold ex-coldstore at RUR25.00 per kilo. Norwegian blue whiting has been offered at RUR27.00 per kilo. Russian blue whiting made by Murmansk Trawl Fleet has been marketed in Murmansk at RUR24.50-25.00 per kilo, at RUR25.50-26.50 per kilo of blue whiting made by FOR in Saint Petersburg.

Alaska pollock

Inshore pollock fishery has continued. In the period from 12 to 19 May 2010 the fishermen harvested ca.14,046 tonnes of pollock. Prices in Vladivostok amount to ca.RUR20.00-23.00 per kilo of inshore pollock 25+.

As per the second week of May pollock prices have slightly declined.

Headed pollock 25+ has been sold in Vladivostok from RUR35.00 per kilo.

In Moscow headed pollock has been available from RUR44.00 per kilo of the size 20+, RUR44.50 per kilo of the size 25+, from RUR46.00 per kilo of the size 30+ and from RUR48.30 per kilo of the size 35+.

Prices for the Chinese pollock fillets IQF ex-coldstore in Moscow have been stable. Fillets of the count of 6-8 have been offered by many suppliers from RUR53.00 per kilo, while the count 8+ has been available at prices from RUR54.00 subject to large wholesale lots.

Hake

According to the Federal Customs Service, import of frozen H&G hake to Russia in 2009 amounted to 14,089 tonnes down from 19,297 tonnes imported in 2008. In the meantime, import of hake fillets increased from 2932 tonnes in 2008 to 4895 tonnes in 2009.

Through the first quarter of the year the import volume of H&G hake amounted to ca.2500 tonnes, and that of fillets - 397 tonnes.

As per the third week of May the situation on the hake market has remained stable and prices have not changed.

Block-frozen H&G hake from Canada has been offered ex-coldstore in Saint Petersburg at RUR83.00 per kilo of the size 300+, while the size 300-500 (interleaved hake) has been offered at RUR87.00 per kilo on the average, and at RUR93.00 per kilo in Moscow. The supply has been limited.

US hake 200-400 has been offered in Saint Petersburg at RUR80.00 per kilo, while the size 300-500 has been marketed at RUR82.00-83.00 per kilo.

In Moscow HGT hake IQF from Uruguay has been offered at ca.RUR67.00 per kilo of the size 150-300, at ca.RUR81.00 per kilo of the size 300-500 and at RUR86.00 per kilo of the size 500+. Meat in discs and cubes has been marketed from RUR58.00-66.00 per kilo.

Prices for Argentinean HGT hake amount to RUR95.00 per kilo of the size 500-800, RUR92.00 per kilo of the size 300-500 and RUR81.00 per kilo of the size 200-300. Hake fillets 60-200 and 200-300 have been sold correspondingly at RUR127.00 and RUR136.00 per kilo.

Chinese hake fillets skin-on 6-8 and 8+ have been sold ex-coldstore in Moscow from RUR71.00 per kilo. Cubes have been marketed at RUR60.00 per kilo.

Squid

According to provisional catch figures, from 5 to 12 May 2010 the fishermen of the Russian Far East harvested ca.233 tonnes of magister squid and ca.290 tonnes of other squid species. As per 11 May 2010 leading harvester NBAMR did not have any catches of squid.

According to recent information, the number of vessels operating on the squid grounds in the waters of the North Kuriles jumped two times. Last year NBAMR sent 6 fishing vessels to the grounds and in the current year 2010 only two vessels owned by the company have taken part in Atka mackerel and squid fishery. Magadan-based vessel owned by Tikhrybkom and Vladivostok-based vessel owned by Dalmoreproduct as well as four Kamchatka ships owned by Okeanrybflot have switched from Atka mackerel fishery to dedicated squid fishery. Through the period under analysis those vessels harvested ca.750 tonnes of squid, the total daily catch rising from 65 tonnes to 235 tonnes.

The squid harvest by NBAMR vessels amounted to 223 tonnes as per 18 May 2010.

As per the third week of may the situation on the squid market have remained stable. Prices for both Russian and imported products have not changed.

In Moscow squid tubes has been offered from RUR95.00 to RUR105.00 per kilo. Squid tentacles have been available from RUR52.00 to RUR58.00 per kilo.

Cleaned squid tubes U10 and U5 of the Chinese origin have been traded in Saint Petersburg from RUR109.00-120.00 and RUR110.00-120.00 per kilo correspondingly.

Giant squid fillets from Peru have been available from RUR49.00 to RUR65.00 per kilo.

Pangasius

The negative price trend of the previous week has continued in the third week of May 2010.

In Moscow and Saint Petersburg many large importers and wholesalers have been offering pangasius at RUR68.00 per kilo on the average, the product lots to be shipped from Saint Petersburg.

In Moscow most of wholesale offers have been at the level of RUR69.00-72.00 per kilo.

Pangasius fillets in cubes have been marketed from RUR48.00 per kilo.

Tilapia

In the third week of May 2010 the market of tilapia has continued showing a negative price trend. More specifically, prices have fallen below RUR100.00 per kilo.

In Saint Petersburg tilapia fillets 3-5 ounces have depreciated to RUR99.00 per kilo subject to prepayment, while the size 5-7 has been marketed at prices descending to RUR102.00 per kilo.

Most of Moscow-based wholesalers have been offering prices at RUR104.00-110.00 per kilo of the count 3-5 and RUR107.00-115.00 per kilo of the count 5-7.