Overview of seafood exports from the Russian Far East in the first nine months of 2008. Full story.

In September 2008 Russia's export of frozen salmon to Japan and China was much more active than last year, which was a remarkable development against the background of declining catches, according to the overview prepared by analysts of http://www.fishnet-russia.com/ (https://www.fishnet.ru/) based on Japanese and Russian sources.

According to the estimated data on seafood import into these countries, the halibut shipments went up, while the shipments of flounder went down. Along with the above developments, there was also a considerable decrease of shipments of Russian pollock and cod. Those were the only general trends in the dynamics of the Japanese and Chinese import of Russian seafood with imports of frozen fish roes to China growing on last year versus to the product's lower shipments to Japan. Besides, the Japanese market received more frozen crabs, while the shipments of the product to China decreased again.

Salmon

In September 2008 the shipments of frozen sockeye of the Russian origin to the Japanese market were less active than in August 2008, when the traders imported more than 5700 tonnes, however the import volume of ca.4500 metric tons exceeded the last year result by 12%. Thanks to the above development the total import to Japan through the first nine months of the year considerably reduced the lag on the last year result and amounted to 17,350 tonnes by the end of September, merely 2.5% down on late September 2007. The average price of Russia's salmon import to Japan went down by 4% as compared to August and amounted to a bit below 500 Yen per kilo CIF, however as compared to the previous year the price remained practically non-changed. Taking into account a stronger rate of Yen to USD as compared to last year the above development can speak about a strong growth of the average import price in USD which should please the Russian producers and suppliers.

According to the official information, import of the Russian sockeye to China in September 2008 amounted to only 160 tonnes, but even this volume has been nearly 120% up on last year. Nevertheless, the total volume of shipments directly from the Russian sources through the period since the start of the year did not reach even 300 tonnes, more than 70% down on the corresponding result of last year. The average import price in September amounted to only 2.00 USD per kilo CIF versus 19.00 USD per kilo last year, though the latter indication caused very many doubts, because it was in absolutely no keeping with the price indications of the Chinese import and exceeded them several times.

The Chinese import of other Pacific salmon species, mostly pink salmon, chum salmon and coho salmon, in September 2008 got much brisker and reached 9500 tonnes, nearly 30% or more than 2000 tonnes up on last year. Taking into account lean year for pink salmon fishery, the above result may be taken as recovery, at least partial, of interest of the Chinese processors in the Russian raw material, which dramatically decreased in 2007 under very favourable conditions for pink salmon and chum salmon purchases in Alaska.

The total volume of the Chinese import of these Russian salmon species through the first nine months of the current year reached the level of 15,500 tonnes, nearly 3% up on last year, but nearly 8000 tonnes or one third down which could hardly satisfy the Russian producers who could not completely rely on domestic sales. The average import price both in September and in the first nine months of the year did not differ much from the last year (more specifically, in September 2008 it amounted to 2.00 USD per kilo, and in the first nine months of the year it averaged 1.90 USD per kilo).

The Japanese import of chum salmon and coho salmon of the Russian origin was also developing in September much more actively than in 2007, but the volumes remained not very large. Import of coho salmon amounted to ca.260 tonnes, growing nearly 5.5 times on September 2008, while as compared to August 2008 the shipments only doubled. At the same time, import of coho in the first nine months of the year went down by 25% to less than 400 tonnes. The average import price in September was higher than the last year indication nearly by 19% and amounted to ca.325 Yen per kilo. However, through the period the average price amounted to only 230 Yen per kilo, or practically 100 Yen per kilo down on the last year result. Import of the Russian chum salmon in September amounted to ca.700 tonnes, 17% up on last tear. Since the beginning of the year its shipments to the Japanese market grew by 8% to 2600 tonnes, but the average import price was limited to 300 Yen per kilo, some 15% down on the corresponding result of 2007.

Pollock roe

In September 2008 importation of frozen pollock roe of the Russian origin to Japan kept falling, which was in line with the typical development of seasonal shipments. The rates of the product's import to the South Korea were also slow, and against such background dramatic activation of import to China could not but attract attention of the market specialists. Some of them think that in September the total growth of the Chinese import of frozen roe was probably driven by acceleration of salmon roe shipments (the official data for the Chinese import does not specify shipments as to species), but most of them still think that in September 2008 the traders shipped via the Chinese customs frozen pollock roe, which was kept in customs coldstores in the South Korea and Japan.

The volume of the Japanese import in September 2008 decreased below 400 tonnes, 14% down on last year, but since the start of the year import of the Russian products to Japan grew by 67.5%. The annual volume of import in 2007 was exceeded by more than 55%, which explicitly meant that the Japanese importers and users were resuming their strategy of working with the Russian raw material versus the previously practiced usage of capacities of the Chinese processors.

Import to China in September 2008 showed a dramatic boost with the total volume of the Russian products cleared at customs through the month exceeding 1300 tonnes, which made more than 40% of the total volume of import in the first nine months of the year. The total volume shipped to the countries from July to September 2008 exceeded 2000 tonnes, 43% up on last year. However, the total volume of shipments from the beginning of the year amounted to only 3100 tonnes versus nearly 6500 tonnes in 2007. Thus, import went more than twice down (by 53% namely), therefore even the dramatic boost of the import trade activity in September 2008 did not reverse the situation. More specifically, in 2008, regardless of the trend observed in the previous years, the Japanese importers and users have been showing strong preference for building up the inventories of the Russian pollock roe in Japan proper.

In September 2008 import of the Russian pollock roe to the South Korea, just like to Japan, continued decreasing and amounted to only 150 tonnes, nearly 25% down on August 2008 and approximately on a par with corresponding result of last year. However, the total import of the Russian pollock roe shipped to the South Korean market since the start of the year by the end of September 2008 amounted to only 2700 tonnes, 23% down on 2007. Growth of prices of the Russian products at auctions in Busan and a reduction of the share of the low grade roe in the total volume of its supply considerably limited the capability of the South Korean buyers thus causing a decrease of import to the South Korea.

The total volume of import of the Russian raw material to Japan, the South Korea and China amounted to ca. 1850 tonnes, 1000 tonnes up on 2007, and the total import to those three countries in the first nine months of the year amounted to ca.24,850 tonnes, growing by 3500 tonnes or 16%, with the total result for the year 2007 already exceeded nearly by 6%. According to the Japanese specialists, such rise of shipments could mean that the growth of pollock roe production on the Russian grounds appeared to be larger than expected even despite measures of leading producers (united under the Association) aimed at reducing the output. The factors stimulating the production growth included a dramatic decrease of the harvest in Alaska and a price rise. As a result, the growing output of the Russian producers enabled them to considerably improve their production indices.

The average price of the Japanese import through the first nine months of the year rose by 17% to 1260 Yen per kilo, and with the strong exchange rate of Yen the growth of the purchasing price in USD was much higher (the indications for imports to China could indirectly prove that). The average price of import to China rose by 38.5% to ca.11.10 USD per kilo, and even the price of import to the South Korea also increased, though by 12% only, to ca.8.50 USD per kilo.

Import of frozen roe of other species, the bulk of which was contributed by salmon roe according to some sources, was limited to only 25 tonnes versus approximately 30 tonnes last year. The average import price fell by more than 30% to 850 Yen per kilo to become an extremely low result for offer prices of the Russian products in this season, which were much higher than 15.00 USD per kilo.

Crabs

The Chinese import of frozen crab of the Russian origin, mostly snow crab presumably, declined again. The previous decrease of the shipments dynamics was observed from January to April, during which the import volume went down from nearly 1200 tonnes in December 2007 to less than 200 tonnes in April 2008, then from May to July 2008 it was increasing and approached to 900 tonnes, and at last in the following two months it descended again to 500 tonnes. The September result was weaker than the last year result by 38%, with the average import price going down to only 2.20 USD per kilo, 33% down on September 2008 (probably due to a drastic reduction of the red king crab share in shipments).

From the beginning of the year China imported ca.5130 tonnes of Russian crabs, thus displaying a double decrease on last year. The average import price went down by 3% to 2.75 USD per kilo.

The Japanese import in September 2008 developed much more actively, both in terms of volumes and in prices. Import of frozen king crab, mostly red with a share of blue, amounted to nearly 1000 tonnes, jumping by 117% on August and by 107% on last year. The total volume of shipments since the start of the year was not very much behind the last year result (it went down by 17% to ca.5700 tonnes). The average import price in September amounted to ca.1845 Yen per kilo, only 0.55 Yen per kilo up on August and 35% up on the corresponding result of last year. The average indication for the first nine months of the year amounted to ca.1795 Yen per kilo, 49% up on last year.

In September 2008 import of frozen snow crab of the Russian origin to Japan went down by one third as compared to August and amounted to 800 tonnes, but as compared to last year it grew practically by 40%. In general, the total volume imported in January-September 2008 amounted to ca.10,500 tonnes, only 6% down on last year. The average import price in September 2008 amounted to 1250 Yen per kilo, nearly 16% up on last September. The average result for the first nine months of the year amounted to ca.1130 Yen per kilo, ca.3% up on the same period last year, with the Yen rate being much stronger than last year.

In the month under analysis shipments of other frozen crab species of the Russian origin to Japan were not registered, while shipments of live hairy crab reached 350 tonnes, 25% up on last year. Thanks to the latter positive development, import of live hairy crab since the beginning of the year through to September 2008 amounted to ca.1850 tonnes, only 6% down on the same period of last year. The average import price amounted to ca.580 Yen per kilo, more than 16% down on last year. Import of live snow crab in September 2008 showed a dramatic boost to 1830 tonnes, nearly 8% up on last year, while the whole volume of import in the first nine months of the year 2008 reached 18,000 tonnes, less than 3% down on last year. The average import price in September 2008 settled at 365 Yen per kilo, only 4% down both on September 2007 and August 2008. In the first nine months of the year it remained practically at 400 Yen per kilo, less than 5% down on last year.

Shipments of live red (and blue) king crab in September also increased dramatically and reached 730 tonnes, 30% up on August 2008, and as compared to last year it grew by 2.5%. The total volume of shipments in the first nine months of the year amounted to a little more than 4000 tonnes, 16% down on the corresponding result of 2007. In the meantime, the average import price through the period amounted to ca.670 Yen per kilo, 5.5% up on last year. In September 2008 the latter indication averaged ca.740 Yen per kilo, nearly 25% up on last year or 20% up on August.

Bottomfish

The Chinese import of frozen halibut (all species) of the Russian origin in September 2008 grew nearly by 70% on last year to ca.400 tonnes, while the total volume of shipments from January to September amounted to ca.2100 tonnes with a 10% rise. The growth could be only attributed to the rise of shipments of black halibut, because import of white halibut remained on a par with last year at 720 tonnes. The price indications in September 2008 were lower than last year, and the average prices of white halibut came down to only 1.40 USD per kilo, 26% down on September 2007, while the indications of black halibut decreased by 16% to less than 2.70 USD per kilo.

Import of the Russian halibut to Japan in September 2008 grew by 16.5% on last year and exceeded 550 tonnes. Besides, the total volume of the Japanese import in the first nine months of the year amounted to ca.4200 tonnes, nearly 24% up on the corresponding result of last year. Moreover, the average import price did not decline, but increased, though by less than 4%, and amounted to 650 Yen per kilo. In September 2008 it averaged already ca.680 Yen per kilo, displaying an increase of 13.5% on last year.

Shipments of frozen flounder of the Russian origin to Japan in September 2008 were limited to less than 100 tonnes, declining by 64% on last year. The total import volume in the first nine months of the year also considerably decreased by practically 50% to 2300 tonnes only, with the average import price through the period declining by nearly 15% to 290 Yen per kilo, though in September 2008 it was somewhat higher at ca.320 Yen per kilo, 7% up on last September.

In the meantime, the Chinese import of frozen flounder of the Russian origin in September 2008 was limited to 1800 tonnes, 49% down on last year, with the average import price remaining practically unchanged at 1.00 USD per kilo. The total volume of Russian flounder imported to China in January-September 2008 amounted to ca.12,600 tonnes, 56% down on last year. The average import price did not reach 1.20 USD per kilo again.

Importation of frozen pollock and other cod products of the Russian origin to China in September 2008 was also slower and the shipments amounted to only 12,800 tonnes, 65% down on last year. Since the beginning of the year the total import of pollock, the main raw material for the Chinese fillet producers practicing re-export of the final products to overseas markets, amounted to only 217,700 tonnes, 28.5% or more than 49,000 tonnes down on last year when the result was not high as compared to the volumes imported in 2005-2006. However, due to the above mentioned drop of shipments the average import price in January-September 2008 did not increase, but decreased, though by less than 5%, to 1.85 USD per kilo. The average price indication through the period could not increase even despite a 28% rise of the average import price in September 2008 which amounted to 2.50 USD per kilo.

The Japanese import of frozen pollock in September was limited to about ten tonnes, but the total result through the first nine months of the year reached 650 tonnes, 16% on last year (the average import price remained in keeping with last year at approximated 165 Yen per kilo). Import of frozen cod developed practically with the same slow dynamics and the volume of the species imported from Russia to Japan amounted to only 25 tonnes in September 2008, 89.5% down on the corresponding result of last year. Thus, the total volume shipped from January to September, which was surpassing the last year indices until September, went down by more than 10% to 1200 tonnes by the end of the month. The average import price in the first nine months of the year remained practically unchanged on last year at ca.505 Yen per kilo, up from less than 480 in September 2008.

In September 2008 shipments of ocean perch of the Russian origin to Japan were very active as compared to August and their volumes reached 1200 tonnes, more than 10 times up on August, but still 32% down on September 2007. The total result through the first three quarters of the year appeared to be weaker than last year, namely 17% down to less than 3400 tonnes. In the meantime, the average import price remained practically unchanged at ca.385 Yen per kilo (taking into account strengthening Yen rate the average import price in USD went up evidently). In September 2008 the average import price was higher than the last year figure by 20% and amounted to 417 Yen per kilo.

Import of Atka mackerel to Japan in September 2008 developed practically at the same rates as in August 2008. More specifically, the traders cleared more than 200 tonnes at customs, though the above volume was still more than 60% down on last year. At the same time, the total import volume through the period of January-September 2008 grew by ca.1000 tonnes to 15,800 tonnes. The average import price through the period rose by more than 15% and exceeded 180 Yen per kilo.

Other species

Import of frozen squid of the Russian origin to China in September 2008 was not registered, but the total result for the first nine months of the year amounted to more than 1400 tonnes, in excess of 1000 tonnes up on last year. At the same time, the average import price amounted to only 0.50 USD per kilo, 43% down on last year.

The Japanese import of frozen herring of the Russian origin amounted to only 24 tonnes in September 2008, versus more than 1000 tonnes in August 2008. However, the total volume of frozen herring imported to the country through the first nine months of the year exceeded 7500 tonnes, more than 3100 tonnes or 70% up on last year. The average import price also rose nearly by 15% to ca.135 Yen per kilo.

Shipments of live sea urchin of the Russian origin to Japan in September 2008 decreased by 26% as compared to the previous month and amounted to less than 260 tonnes, while the total import of the product since the start of the year went down by 19% to ca.7850 tonnes. The average import price remained practically at the August level at ca.725 Yen per kilo namely, 30% up on the corresponding result of last year. The average indication for the period of nine months was much lower at only 590 Yen per kilo, but it was practically 20% down on the last year figure.