Overview of Moscow's freshfrozen fish market in the first week of December 2008

In the first week of December 2008 trade in freshfrozen seafood in Moscow has remained less active as compared to the traders' expectations in view of the New Year holidays, analysts of www.fishnet-russia.com (www.fishnet.ru) concluded after analyzing the current situation on the market.

Spokesmen of large traders say that though there is a rise of activity before the New Year, strengthening of the USD exchange rate considerably exceeds the rise of the sales volumes.

As compared to late November in early December 2008 prices for most of the seafood products in Moscow have not changed considerably, however the market participants report a drop of prices for a number of products against a rise of prices for other products. In particular, there has been a noticeable rise of prices for pink-coloured pangasius fillets as well as slight fluctuations of prices for magister squid tubes.

In the end of November 2008 the traders have been concerned by possible suspension of seafood importation from non-approved processing plants of China, Vietnam, Japan and the EU as according to the Russian vets those countries have taken no measures to respond to the new requirements forwarded with a good notice. The Japanese are eventually trying to mend the problem and the Japanese delegation has made an agreement with the Russian vets from Rosselkhoznadzor that they will come to check the Japanese plants from 15 to 22 December 2008. As for other countries, especially EU members, the threat of being closed for exportation to Russia is still possible because none of the plants has been certified by the Russian vets. In early December 2008 Russia's Federal Service for Veterinary and Phytosanitary Surveillance Rosselkhoznadzor has announced introduction of temporary restriction for seafood importation from all Vietnamese plants as of 20 December 2008. Loss of confidence in controlling bodies of Vietnam has become an officially announced reason behind the ban.

Another important event of the first week of December 2008 is the increase of the refinancing rate to 13% by the Central Bank of Russia. This has been the second increase of the financing rate within one month. Earlier, on 11 November 2008 the Bank of Russia has raised the refinancing rate from 11% to 12% per annum. The nation's fishermen cannot but be affected as they get loans in the Russian banks and the interest rates will be inevitably increased accordingly.

Naturally the general concern has been caused by steadily strengthening USD rate which has reached RUB28.00 per USD by the beginning of December 2008.

Pink salmon

In the first week of December 2008 the situation on Moscow's pink salmon market has remained stable. Traders report a steady demand for the product without any considerable changes observed on the market.

In Moscow 1st graded w/r pink salmon silverside has been offered from RUB68.00 per kilo for the lots from 10 tonnes, 1st graded head-on gutted pink salmon has been traded from RUB68.00 per kilo on the same terms.

Prices of 1st grade pink salmon headed and gutted amount to RUB87.00-90.00 per kilo for the lots from 10 tonnes ex-coldstore in Moscow.

Pink salmon fillets skin-on IQF 300 grams have been available at RUB95.00-112.00 per kilo.

American headed pink salmon 1+ in transit to coldstore has been offered from RUB95.00 tonnes in Saint Petersburg.

Chum salmon

According to the market participants, in the first week of November 2008 trade in chum salmon has been moderate. Prices for 1st grade head-on and gutted chum salmon harvested in Kamchatka have amounted to ca.RUB77.00-80.00 per kilo ex-coldstore in Moscow.

Headed and gutted chum salmon of fairly good quality and from the Okhotsk and Kamchatka harvest has been offered from RUB84.00-86.00 per kilo in Moscow.

Headed chum salmon with spawning changes has been marketed from RUB60.00 to RUB75.00 per kilo.

IQF chum salmon fillets (with <5% glazing) made in Kamchatka has been traded ex-coldstore in Moscow from RUB105.00 per kilo.

Salmon roe

As per the first week of December 2008 prices of salmon roe have remained stable. The market participants think that most probably the wholesale prices for bulk, packed and canned salmon caviar will stay unchanged both in December 2008 and in the beginning of the coming year. The price peak to RUB1800-2000 per kilo as expected by the traders has not come true. The current economic crisis has also played its role in this situation as it has made the consumers save on food, especially on delis.

In the first week of December 2008 large suppliers have been selling salted caviar in cubotainers from RUB1250 to 1350 per kilo in Moscow.

The average level of prices for 140-gram can amounts to ca.RUB180.00. Price-lists of many wholesalers display large fluctuations of product prices depending on producer and used raw. More specifically, canned salmon caviar in 140-gram cans has been offered from RUB160.00 to RUB240.00 per unit. Large processors have been offering the product from ca.RUB175.00 per can. Salmon caviar in 100-gram glass jar has been traded from RUB150.00 per can.

Prices of caviar of other salmon species in Moscow have declined by RUB100.00 per kilo on the average. In particular, sockeye caviar has been available in the capital from RUB1200.00 per kilo.

Chum salmon caviar has been offered at ca.RUB1300.00 per kilo subject to sales in cubotainers.

Traders have been also offering Chinook caviar from RUB1350.00 per kilo.

Caviar of coho salmon harvested in Kamchatka has been marketed at ca.RUB1250.00 per kilo.

Along with the above, the traders have been also offering frozen trout roe ex-farm from RUB1500.00 per kilo.

Fresh roes of sockeye, coho and pink salmon in sacks have slightly depreciated to RUB600.00-650.00 per kilo.

Atlantic salmon

According to foreign sources, the recent rise of prices for the Norwegian salmon has not lived long. After rises in October and in November, prices subject to delivery in December 2008 have decreased approximately to NOK25.00 per kilo (2.81 Euro or 3.58 USD).

In the first week of December 2008 many large Russian importers have reduced their prices for frozen Atlantic salmon in Moscow. On the average the price drop has been reported at 3-5% as compared to late November 2008. Evidently the prices are not rising due to weaker demand for delicatessen products as reported by many chain retailers. The demand for delicatessen fish, Atlantic salmon in particular, has fallen by 20-40% on the average.

In Moscow Atlantic salmon 5-6 Superior made in Norway has been on sale from RUB210.00 per kilo, while the sizes 6-7, 7-8, 8-9 and 9+ have been correspondingly offered from RUB205.00-245.00, RUB212.00-RUB248.00, RUB230.00 and RUB230.00 per kilo. Traders have reported absence of smaller sizes 1-2 and 3-4 in the price-lists of several companies.

As for Chilean salmon, despite a rapid growth of the USD exchange rate the product prices have remained stable so far. More specifically, Chilean salmon 1-2 premium has been marketed from RUB130.00 per kilo, while the sizes 2-3, 3-4, 4-5, 5-6 and 6-7 have been traded from RUB160.00, RUB200.00, RUB208.00, RUB208.00 and RUB211.00 per kilo respectively.

Atlantic salmon 1-2 made in Denmark has been traded in Moscow at about RUB150.00 per kilo.

Traders have been also offering headed Australian salmon 2.5 at ca.RUB64.50 per kilo.

Chilled Atlantic salmon 5-6, 6-7 has been offered on request by many traded already from RUB185.00 per kilo.

Trout

In the first week of November 2008, just like the market of frozen Atlantic salmon, Moscow's market of frozen trout has been showing certain weakening of prices for Norwegian products and comparable stability of prices for Chilean trout. The market participants say that the demand has remained not as brisk as it was expected.

Prices of Chilean trout Superior have been reported at RUB178.00 per kilo of the size 1.8-2.7 and from RUB188.00 per kilo of trout 2.7-4.0.

As per the first week of November, Chilean trout Premium have been marketed from RUB172.00 per kilo of the size 0.9-1.8, from RUB173.00 per kilo of the size 1.8-2.7 and RUB179.00 per kilo of the size 2.7-4.0.

Norwegian trout Superior has been available from RUB172.00 per kilo of the size 1.8-2.7, from RUB182.00 per kilo of the size 2.7-3.6, RUB200.00 per kilo of the size 3.6-4.5, and at ca.RUB203.00 per kilo of the size 4.5+.

Danish trout 0.9-1.8 and 2.7-4.0 has been sold from RUB165.00 and RUB185.00 per kilo correspondingly.

In Moscow large wholesaler has been offering chilled H&G trout farmed in Karelia at RUB168.00 per kilo of the size 0.9-1.8.

Karelian trout has been offered ex-farm at RUB135.00 per kilo of the size 1.5, RUB140.00 per kilo of the size 1.5-2.0, RUB150.00 per kilo of the size 2.0-3.0 and at RUB160.00 per kilo of the size 3.0+.

Chilled trout farmed in Karelia has been marketed ex-farm from RUB130.00 to RUB140.00 per kilo.

Chilled products from Norway have been sold by a large supplier on order from RUB155.00 per kilo of the size 3-4, head-on and gutted.

Herring

As per early December 2008 the market participants have been reporting a stable situation with a certain downwards trend.

Norwegian herring has been offered in Moscow from RUB31.00 per kilo of the size 300+, RUB34.00 per kilo of the size 350+, and from RUB48.00 per kilo of the size 400+.

Norwegian herring flaps 5-8 have been offered ex-coldstore in Moscow from RUB50.00 per kilo, while the count 6-10 has been on offer from RUB47.00-50.00 per kilo.

Besides, traders have also been marketing Icelandic herring fillets 6-10 harvested in September-October 2008 in transit to coldstore in Murmansk at a price of ca.RUB50.00 per kilo, while the size 4-8 has been available at ca.RUB53.00 per kilo.

In the first week of December 2008 prices for the Russian herring have remained stable. More specifically, Russian herring 200-300 has been offered ex-coldstore in Saint Petersburg from RUB22.00 per kilo, while the sizes 250+ and 300+ are available from RUB23.00 and RUB30.00 per kilo correspondingly.

Poorly graded herring classified as large and fat has been marketed from RUB23.00 per kilo.

Herring flaps 6-10 made by the Russian producer FOR have been offered ex-coldstore in Saint Petersburg from RUB46.50 per kilo.

Prices of Okhotsk herring of the standard size 25+ have remained at RUB18.00-19.00 per kilo.

Mackerel

In the first week of December 2008, the situation on the mackerel market has remained calm with a slight decrease of the lowest price for the Norwegian mackerel.

More specifically, Norwegian w/r mackerel has been offered by many market participants in Saint Petersburg at following prices: RUB62.00 per kilo of the size 300-500, RUB82.00 per kilo of the size 400-600, and from RUB120.00 per kilo of the size 600+.

Icelandic mackerel 300+ has been offered ex-coldstore from RUB60.00 per kilo in Saint Petersburg and from RUB62.00 per kilo in Moscow.

Canadian mackerel 300-500 delivered in St. Petersburg has been available at a price RUB66.00 per kilo, the mackerel 400-600 has been marketed at RUB78.00-85.00 per kilo and the size 600+ has been available at RUB110.00 per kilo.

Scottish mackerel 300-500 has been available in St. Petersburg from RUB60.00 per kilo ex-coldstore. The sizes 400-600 and 600+ have been offered from RUB83.00-85.00 and RUB125.00 per kilo correspondingly.

The price of headed Russian mackerel 200-300 has amounted to RUB66.00 in Murmansk, RUB68.00-72.00 in St. Petersburg and RUB73.00-74.00 per kilo in Moscow.

Along with the above, traders have started to offer landed Pacific mackerel w/r 500-600 harvested by the Japanese and Chinese fishermen at prices up to RUB60.00 per kilo ex-container in Saint Petersburg.

There have also been offers of Japanese mackerel 400-600 ex-coldstore in Moscow at RUB66.00 per kilo

Baltic herring, Baltic sprat

As per the first week of December 2008, the market of Baltic sprat has been showing a certain drop of prices. Prices of Baltic herring have also displayed slight decreases.

More specifically, Estonian sprat 10-12 cm in transit to coldstore has been sold at RUB21.50 per kilo in Saint Petersburg. The same product has been offered at about RUB25.00 per kilo ex-coldstore in Moscow.

Swedish sprat 10-12 cm has been available ex-coldstore in Moscow from RUB24.00 per kilo and from RUB23.00 per kilo for lots larger than 20 tonnes. The same product in transit to coldstore has been marketed at RUB22.00 in St. Petersburg.

Finnish herring 11-15 have been marketed in Saint Petersburg from RUB19.50 per kilo. Subject to prepayment the count 15-17 has been offered at RUB23.00 per kilo, while the count 17+ has been available at RUB24.00 per kilo ex-coldstore in Moscow.

Finnish herring flaps have been traded in Moscow at RUB35.00 per kilo ex-coldstore.

Swedish herring 14-18 has been offered at RUB25.00 per kilo in Moscow, the size 18+ has been available at RUB31.00 per kilo ex-coldstore.

Capelin

In the first week of December 2008 the situation on the capelin market has remained on a par with the previous week, though the prices for the Russian capelin of small sizes and from the new harvest have begun declining.

One large importer has been offering capelin 30-40 originating from Iceland and Canada ex-coldstore in Moscow at prices set at RUB42.00 per kilo.

Norwegian small capelin 40-50 and 55-65 has been offered ex-coldstore in Saint Petersburg from RUB52.00 per kilo.

Traders have been offering more Russian capelin ex-coldstore in Murmansk. According to Murmansk sources, though mostly small size capelin has been on offer so far, the demand for the products has been fairly good. As compared to the end of November 2008, prices have decreased.

As per the first week of December 2008 Russian traders have been offering small capelin 60-70 from the new harvest from RUB31.00 per kilo ex-coldstore in Murmansk. Capelin 70+ has been marketed at RUB30.00-33.00 per kilo in Moscow and from RUB32.00 per kilo in Saint Petersburg.

Blue whiting

In the first week of November 2008 the situation on the blue whiting market has been calm. In Murmansk traders have kept offering blue whiting 20+ ex coldstore at RUB22.00 per kilo. In Saint Petersburg prices have been stable at RUB24.00-26.00 per kilo, while in Moscow the average prices have been reported at ca.RUB30.00 per kilo.

Offer prices for blue whiting from the harvest of June-July have ranged from RUB25.50 to RUB27.00 per kilo ex regional coldstore.

Large importers have been asking from RUB26.00 to RUB29.50 per kilo of blue whiting. The average price charged by most of the wholesalers has been fluctuating at RUB27.00 per kilo.

Scottish blue whiting has been offered ex-coldstore in Moscow and the surrounding region at RUB26.00-28.00 per kilo.

Norwegian blue whiting has been offered in Saint Petersburg at RUB24.50 per kilo.

The blue whiting backs produced by Murmansk Trawl Fleet have been offered at RUB42.00-48.00 per kilo ex-coldstore.

Blue whiting fillets have been offered ex-coldstore in Saint Petersburg from RUB40.00 per kilo.

Traders have also launched sales of blue whiting fillet cubes originating from China at a price of RUB68.00 per kilo. Along with the above, wholesalers have been also offering 100% blue whiting mince made in Saint Petersburg at RUB30.00 per kilo.

Russian pollock

In the first week of December 2008 the fishery industry has been hit by negative information from Kamchatka and Magadan about suspension of the fishing operations on the inshore grounds of pollock and mixed bottomfish for human consumption according to the amendments to the Federal Law "On Fishery ..." coming into effect from 26 November 2008.

Experts say that absence of landings from the inshore zone may result into a rise of prices for pollock and other whitefish species from the Sea of Okhotsk in the short term outlook.

As per the fourth week of November 2008, pollock has been traded in Moscow from RUB50.00 per kilo of the size 25+, from RUB55.00 per kilo of the size 30+, and at RUB55.00-57.00 per kilo of the size 35+. There are offers of pollock fillets ex-coldstore in Moscow region at RUB87.00-89.00 per kilo of skin-on product and at RUB90.00-91.00 per kilo of skinned product.

As for double frozen products originating from China, Moscow traders have a fairly large supply of fillets 6-8 and 8+ on offer. The lowest price of pollock fillets 6-8 have dropped to ca.RUB67.00 per kilo, while the size 8+ has depreciated to RUB68.00 per kilo at the minimum.

Subject to prepayment the products are marketed from RUB65.00 per kilo in transit to port of Saint Petersburg.

According to a spokesman of a large company based in the Russian Far East, at this stage it is quite a challenge to forecast how the Okhotsk fishery will be progressing next year, because it is not clear how the market will respond to compulsory calls at ports for customs clearance of pollock catch from the EEZ as of 1 January 2009.

In connection with the celebrations of the Chinese New Year and with the above mentioned reason, in the beginning of the year export of Russian pollock may be complicated, thus resulting into a rise of offers on the domestic market and potential decline of pollock prices.

Hake

In the first week of December 2008, despite continuous rise of the USD exchange rate, the hake prices have kept weakening. In particular, traders have reported a reduction of prices for Canadian hake HGT of the size 300-500 as well as prices for Chinese hake fillets.

The lowest price of HGT hake IQF 300-500 from Canada has dropped to ca.RUB82.00 per kilo in Moscow, while the size 500+ has been offered at about RUB87.00 per kilo.

Importers have been offering HGT hake 300-500 in transit to coldstore in Saint Petersburg at RUB80.00 per kilo subject to prepayment.

In the meantime, prices for the US-made products have remained comparably stable. The lowest price for

The lowest price of HGT hake 300-500 from the USA in Moscow has remained at RUB90.00 per kilo on the average.

The Russian hake made by ZAO Magellan (closed JSC) has been available at RUB88.00 per kilo ex-coldstore in Moscow.

Hake from Ecuador has been available in the capital from RUB72.00 per kilo of the size 80-100, from RUB80.00 per kilo of the size 100-200, from RUB81.00 per kilo of the size 200-400, from RUB86.00-89.00 per kilo of the size 400-600, at ca.RUB90.00 per kilo of the size 600-1000, and from RUB94.00 per kilo of the size 1000+.

Argentinean hake fillets skinned and interleaved have been marketed in Moscow from RUB118.00 per kilo of the size 100-200, while the size 200-400 has been sold at RUB125.00. However, the supply of the products has remained low.

Serious competition to all the traditional suppliers has been put up by double-frozen pollock fillets originating from China. As per early December 2008, the Chinese products have been sold in Russia at prices from RUB83.00 per kilo of the size 6-8 ounces and from RUB84.00 to RUB87.00 per kilo of the size 8+. However, there is a possibility that starting from 1 January 2009 the Chinese products may disappear from the offers of the Russian importers due to introduction of temporary restrictions for seafood shipments from non-approved plants.

Importers think that resumption of shipments after certification procedures should be expected not earlier than in April 2009.

Squid

After a certain rise of prices for magister squid, in the first week of December 2008 the situation on the market has got stabilized. More specifically, in the beginning of the month prices for megister squid from the new harvest have been reported at ca.RUB57.00-60.00 per kilo ex-coldstore in the Russian Far East. In Moscow prices of squid tubes ex-coldstore in Moscow have settled at RUB65.00-68.00 per kilo.

At the same time, prices for imported squid have remained stable so far.

Non-cleaned illex tubes originating from Argentina have been offered from RUB43.00 per kilo, while interleaved cleaned tubes of various sizes have been sold at RUB75.00 per kilo.

Cleaned squid tubes originating from China have been offered from RUB65.00 to RUB75.00 per kilo depending on the size. Squid fillets 100-200 have been offered at RUB75.00 per kilo.

Non-cleaned squid tubes 180 grams from Uruguay have been marketed at RUB60.00 per kilo.

New Zealand squid tubes 200-300 have been sold at RUB50.00-55.00 per kilo.

Peruvian giant squid fillets have been marketed from RUB37.00 per kilo.

Chilean giant squid fillets 2-4 have been offered from RUB40.00 per kilo.

Pangasius

In the first week of December 2008 the market of pangasius catfish has been tense. Along with a rise of prices for pink fillets after a large drop, traders have been expecting a complete suspension of shipments of all the products. In the beginning of December 2008 the Russian veterinary body Rosselkhoznadzor has announced introduction of temporary restrictions for seafood importation from all the processing plants of Vietnam as of 20 December 2008.

Prices for pangasius fillets in the first week of December 2008 have continued growing and reached RUB58.00 per kilo on the average. At the same time, retail prices have shown no signs of recent price fluctuations. According to many suppliers, despite a considerable drop of wholesale prices for pink fillets the retail prices for the same products have remained unchanged.

As per the first week of December 2008 the minimum price of pink-coloured pangasius fillets 200+ in Moscow has reached RUB56.00 per kilo. The average price from most of the importers amounts to ca.RUB58.00-61.00 per kilo.

White-coloured fillets 200+ IQF have been on sale in Saint Petersburg from RUB75.00 to RUB99.00 per kilo.

Average prices in Moscow, dateline 1 December 2008

Seller prices in Moscow as per 1 December 2008, RUB per kilo