Overview of seafood exports from the Russian Far East to February 2009

In February 2009 the off-season for main Russian fisheries in the nation's Far East have already finished, however it has not resulted into a noticeable rise of activity of shipments to main export markets. Nevertheless, there has been a considerable rise of shipments of frozen pollock roe, live and frozen crabs and live sea urchins to Japan, as well as frozen squid of the Russian origin to China, according to the overview prepared by analysts of http://www.fishnet-russia.com/ (https://www.fishnet.ru/) based on Japanese and Russian sources.

The strong exchange rate of Yen in February 2009 has continued influencing greatly the price situation for shipments of Russian seafood to Japan. The impact of the new regulation of mandatory customs clearance of catches in Russia's EEZ at home ports on the nation's export to main recipient countries has still been extremely vague, probably a thorough analysis would require a longer period of observation or probably no serious impact would ever be observed. In the meantime, Russia's official export statistics will obviously reflect the fact of switching to the new system.

Fish roe

In February 2009 progressing of the Japanese import of frozen pollock roe of the Russian origin (partly and purely theoretically the shipments could be represented by roe of cod and other cod species, however in the recent years the Russian fishermen have been exporting to the Japanese market pollock roe practically exclusively) was still more active than usual for the off-season and the total volume of import through the first two months of the year reached 1300 tonnes, 130% up on the same period last year. Probably, the activity was caused by emerging demand from some industrials willing to purchase extra raw material before the start of the new season of shipments, which could be accompanied by decreasing volumes due to a more than 20% drop of production output in Alaska.

The February volume of Russian export to Japan decreased on January by 20%, however as compared to last year it grew practically by 60% to only a little less than 600 tonnes. Besides, there was a noticeable rise of prices for the Russian raw material. More specifically, in February 2009 the average import price increased by more than 100 Yen or 1.00 USD per kilo on January 2009. As compared to last year, the prices rose nearly by 20% or 170 Yen per kilo and taking into account Yen's strong exchange rate the price increase looked even more serious. The increase of prices for the Russian shipments in the beginning of the current year approximately by 15% was in keeping with the rising price trend for the previous season of shipments, which trend resulted into a considerable boost of prices for the Russian raw material purchased by the Japanese importers. However, according to the results of the first round of auctions in Busan, in this season the Russian producers will be facing difficulties even to maintain prices at the level of the season 2008, let alone to achieve a further price rise which in theory could come true in a situation of a generally limited production of the pollock roe in Alaska and in Russia. The thing is that there are strong negative trends, namely high inventories of raw and processed pollock roe in Japan, problems with activity of consumption of final products at the Japanese market and a dramatic (at least by 20%) decrease of prices for the US raw roe of the season A.

Unlike the situation with the Japanese import, shipments of the Russian raw to the South Korean market and to China developed much slower than last year. In February 2009 import to South Korea grew by 25% on January 2009 but it was limited to only 100 tonnes and the total volume of import through January and February 2009 amounted to less than 200 tonnes, 56% down on the corresponding result of 2008 (on February 2008 it went down by 60%). The average import price in February 2009 grew by 18% on January 2009 and amounted to ca.10.60 USD per kilo CIF, thus at least equaling the average price of the Japanese import, while for the South Korean users the traders normally purchase the raw material of much lower quality and at less high prices than for the Japanese users (in 2008 the average price of the Japanese import exceeded seafood import to the South Korea by 30%). Presumably in this connection, the products cleared at customs in February 2009 were meant for sales in Japan, not in South Korea.

Progressing of shipments of Russian raw material to China was extremely slow in February 2009. The total import through the month amounted to only 50 tonnes and the total import volume through January 2009 and February 2009 did not reach even 100 tonnes, 65% down on last year. Taking into account that in 2008 import to China decreased by 40%, the first two months could become a model in terms of shipments' dynamics in 2009, though the new season of pollock roe shipments did not start and imports contained either products from less important fisheries or even other than pollock roe (extremely low prices could also be indicative of the above development with the average prices even in February amounting to only ca.3.90 USD per kilo versus 5.00 USD per kilo last year, and taking into account that in January 2009 the average import price amounted to only 0.65 USD per kilo, the average indications for two months amounted to ca.2.20 USD per kilo).

Import of Russian herring roe to Japan in the first months of the current year was recorded neither in frozen nor in processed form, but last year the import volumes were not very large either, at about 15 tonnes namely. Processed salmon roe of the Russian origin, both in skeins and sieved, was not observed in the Japanese import statistics in January and February 2009 either, though shipments of frozen salmon roe were developing fairly quickly. In February 2009 their volume increased on January by more than 55% to ca.260 tonnes, five times up on the last year result. In January-February 2009 the traders imported more than 400 tonnes of salmon roe, 7.5 times up on the corresponding result of last year. The average import price in February 2009 decreased by 30% on January 2009 to ca.1440 Yen per kilo. The average price for the first two months of the year amounted to more than 1650 Yen per kilo versus ca.320 Yen per kilo last year.

Salmon

The rates of the Japanese import of frozen sockeye of the Russian origin in February 2009 dramatically slowed down as compared to those in January 2009 when the traders cleared at customs more than 1000 tonnes. The import volume amounted to only 150 tonnes, 88% down on the volume of February import in 2008, while the total volume of import through the first two months of the current year amounted to only 1200 tonnes, falling practically twice on last year. Market specialists think that in January and February 2009 the customs cleared products purchased or contracted by the importers in the closing quarter of the year 2008.

However, the average import price in February 2009 jumped by 40% on January 2009 and amounted to 560 Yen per kilo, practically 100 Yen per kilo up on last year. Nevertheless, the average indications for the opening two months of the year were limited to 420 Yen per kilo versus 470 Yen per kilo last year, and in the second half of 2008 the average prices were much higher than in 2009, namely ranging from 480 to 520 Yen per kilo and the February result was close to the July price when imports were dominated by products not from fixed seine fisheries, but from marine operations.

The February import of other species of frozen salmon of the Russian origin to Japan was not active at all, at customs the traders cleared only 5 tonnes of coho and ca.10 tonnes of other salmon species, mostly chum salmon. Last year import was also not active (in January and February 2008 the customs cleared only 30 tonnes) which could be explained by fairly natural reasons because even during the fishery's peak the Japanese import of all frozen salmons of the Russian origin, except for sockeye, does not reach serious heights. The average import prices of frozen coho salmon amounted to ca.280 Yen per kilo, and that of frozen chum salmon amounted to ca.190 Yen per kilo (last year it was ca.165 Yen per kilo).

The Chinese import of frozen salmon of the Russian origin in February 2009 came to an abrupt halt after in January the traders imported ca.2800 tonnes versus less than 200 tonnes in January 2008. However in February 2008 import of the Russian raw material was not recorded, while in February 2007 they imported ca.500 tonnes and the total import volume for January-February 2009 amounted to ca.1200 tonnes. In the following several months large additional volumes of the Russian raw will hardly be transported via the customs because the processors have been already provided with the raw material large enough until resumption of seasonal shipments which will start in August or even in September, but the outlook for shipments remains vague taking into account the current situation on the main markets for the Chinese processed products in the North America and Western Europe.

Herring

The Japanese import of frozen herring of the Russian origin got slower in February 2009 with the total imported volume amounting to only 420 tonnes, 76% down on January 2009 and nearly 70% down on the import volume in February 2008, while the total volume of import through the first two months amounted to only ca.2200 tonnes, 40% down on last year. The average import price in February 2009 jumped by 17% on January 2009 to 100 Yen per kilo, but last year it was much higher at 125 Yen per kilo, and in general in the first two months of the year it was limited to only 90 Yen per kilo, 26% down on last year.

Much slower rates in February 2009 were observed for the Japanese import of fillets made from Russian herring, which were represented by the Chinese products. Through the month traders imported only 300 tonnes versus more than 800 tonnes in January 2009 and 450 tonnes in February 2008. Nevertheless, in general through January-February 2009 they imported more than 1130 tonnes, 31% up on last year, therefore the trend has remained positive so far. The average import price grew by 8% on January 2009 to ca.430 Yen per kilo versus less than 417 Yen per kilo last year, and in general for the period it amounted to 405 Yen per kilo, 3% down on last year.

Bottomfish

In February 2009 the volume of the Chinese import of frozen pollock, cod and other congeners, including probably longfin codling Laemonema, appeared to be even smaller than in January 2009 and amounted to only 4660 tonnes, 5% down namely. As compared to February last year it went down nearly by 85% or 25,000 tonnes, while the total volume of the Chinese import of the Russian raw fish for fillet production (for further export mostly to Europe and the USA) amounted to only 9600 tonnes in January-February 2009, 84% or more than 51,000 tonnes down on the corresponding result of last year. Market players say that now the decrease of the Chinese export of fillets (taking into account that the official statistics does not break fillets into particular species) more or less correspond to the decrease of shipments of the Russian raw material.

The average import price in February 2009 reached the level of 2.20 USD per kilo jumping by 16% on January 2009 and 38% on February 2008. The high level of the average prices could prove that both in January and in February cod dominated in imports, while the share of pollock was not as high as usual, moreover, according to some information, the Chinese buyers were keen to decrease purchase prices of Russian pollock at least to 1300 USD per tonne. The observation implicitly confirmed the information on big problems with the sales of frozen pollock, about which the Russian producers complained in the first quarter of the year.

The Japanese import of frozen pollock of the Russian origin got suspended in February 2009, but import of cod grew more than three times as compared to January 2009 and amounted to 160 tonnes. In January-February 2009 the total import amounted to more than 200 tonnes, though it was twice below the import results in January-February 2008. Just like in January 2009 the average import price amounted to ca.260 Yen per kilo, nearly 50% down on last year figures.

Import of ocean perch, mostly from Atlantic fisheries, of the Russian origin to Japan in February 2009 decreased by 46% on January 2009 and amounted to ca.180 tonnes. For January-February 2009 it was limited to only 500 tonnes, 45% down on last year. Though the average import price somewhat decreased, it still remained at 350 Yen per kilo, approximately on a par with last year.

At the same time, shipments of Pleurogrammus Atka mackerel got much brisker and the volume of February import exceeded the result of January 2009 nearly by 120%, while the total volume of shipments reached the level of 4500 tonnes, growing by 500 tonnes on last year. The average import price increased closer to the level of 200 Yen per kilo or more than 15% up on last year.

In February 2009 import frozen flounder of the Russian origin to Japan grew by 60% on January 2009 and amounted to ca.170 tonnes, still twice down on the result of last year. The total import volume for the first two months of the year also halved to only 270 tonnes. The average import price went down to under 240 Yen per kilo, 14% down on the corresponding figure for last year. The average indications for January-February 2009 amounted to only 260 Yen per kilo, 12% down on last year. Shipments of fresh flounder were not observed.

Import of frozen halibut dramatically slowed down with the volume of shipments falling to only 50 tonnes versus nearly 300 tonnes in January 2009. The total volume of halibut imported for the first two months of the year amounted to only ca.350 tonnes, 55% down on last year. The average import price in February happened to be a little smaller than that of last year and amounted to ca.585 Yen per kilo. However, in general for the period it made 605 Yen per kilo, ca.2% up on 2008.

The volume of February import of frozen flounder of the Russian origin to China amounted to ca.340 tonnes, 56% down on last year. In the first two months of the year Chinese traders imported only ca.410 tonnes, four times down on last year. The average import price was limited to the level of 1.00 USD per kilo, practically 40% down on last year. The Chinese import of frozen halibut of the Russian origin in February 2009 amounted to 110 tonnes, and the total volume of frozen halibut imported in January-February 2009 amounted to 270 tonnes, 35% up on last year, with the average import price decreasing by more than 1.00 USD per kilo to only ca.1.90 USD per kilo.

Crabs

According to the official information, in February 2009 there was a very serious deceleration of shipments of live Russian crab to Japan with the total volume of shipments amounting to only ca.700 tonnes versus more than 1800 tonnes in January. Import of red king and blue king crabs amounted to 250 tonnes, 67% down on last year. However, in February 2008 the volume of shipments was even smaller and through the first two months of the year the traders imported only ca.400 tonnes versus more than 1000 tonnes in the same period of the current year 2009. Import of live snow crab decreased by 64% on January 2009 and amounted to only 300 tonnes, though, just like the case with shipments of red king crab, the imports showed much brisker progressing than last year. In January-February 2009 the red king crab shipments totalled ca.1350 tonnes, 4% up on last year. The total volume of import of live hairy crab grew by approximately 3.5% on last year and made 120 tonnes, of which ca.60% were shipped in February 2009 when the volumes were five times larger than in the same month of last year.

The average import price of live red king crab decreased by more than 50% on January 2009 and amounted to less than 400 Yen per kilo, while last year it was at the level of 1200 Yen per kilo, and in general for the period under analysis it made only ca. 720 Yen per kilo, 13.5% down on last year, first of all due to the product's worsening quality in terms of size and species. However, as for shipments of live snow crab the average import price grew by 6.5% to 400 Yen per kilo, and in February 2009 it was even close to 450 Yen per kilo (last year in February 2009 it amounted to 625 Yen per kilo with a very small volume of shipments). As for shipments of hairy crab, the average indications in February 2009 amounted to 870 Yen per kilo, 26% down on the result of January 2009 and 14% down on February 2008. However, in general for the period it exceeded 1000 Yen per kilo, 3% up on last year.

Unlike shipments of live crab, in February 2009 import of frozen Russian crab to Japan was more active than in January 2009, though not very noticeably, while as compared to February 2009 the shipments increased considerably. Import of king crab in February 2009 grew by 7% to ca.930 tonnes, and in general for two months of the year the traders imported nearly 1800 tonnes, 12% or 200 tonnes up on last year (in February 2009 import increased by 65% on February 2008). The average import price in February 2009 somewhat decreased on January 2009 and amounted to 1355 Yen per kilo, nearly 20% down on last year, in general for two months of the year it amounted to ca.1370 Yen per kilo, 15% down on 2008.

Import of frozen snow crab of the Russian origin to Japan grew by 4% on January 2009 to ca.330 tonnes. The total volume imported to the country in the first two months of the year amounted to ca.650 tonnes, 37.5% up on last year. The average import price in February 2009 was limited to less than 690 Yen per kilo, 43% down on January 2009 and 32.5% down on February 2008. The average indications since the beginning of the year amounted to ca.940 Yen per kilo, 9% down on the corresponding result of last year.

In February 2009 the Japanese customs did not clear shipments of Russian frozen hairy crab and frozen crab meat.

Shipments of frozen Russian crab to China and the USA in February 2009 were much less active than last year. The Chinese import in February 2009 was limited to 400 tonnes, 27% down on last year. In January and February 2009 it amounted to only 700 tonnes, two times down on the first two months of 2008. However, even despite a February rise to 3.20 USD per kilo the average import price in the opening two months of the year amounted to only 2.65 USD per kilo, more than 10% down on January-February 2008 (presumably due to a further decrease of the share of king crab in shipments).

The volume of the US import of frozen Russian crab in February 2009 amounted to ca.1740 tonnes, 23% down on last year. At the same time, shipments of snow crab decreased by 65% to less than 150 tonnes, and import of king crab (mostly blue king crab, rather than red king) declined only by 15%.

In general, for the period since the beginning of the year import of frozen Russian crab to the USA amounted to 3820 tonnes, nearly 30% or 1500 tonnes down on the respective result of 2008. Import of king crab (mostly harvested in the Russian Far East, but partly from the Barents Sea, though the start of the Barents Sea red king crab fishery has been postponed to mid-August also due to resumed capelin fishery) decreased by 26% to 3350 tonnes, while import of snow crab sank by 40% to 470 tonnes.

The average US import price of Russian king crab in February 2009 reached 17.10 USD per kilo FAS or ex-vessel, 8% up on January 2009, but 1% down on February 2008. In general during the first two months of the year the average price leveled at 16.40%, 2.5% or 0.40 USD per kilo up on last year. In the meantime, in January-February 2009 the average price of frozen Russian snow crab rose nearly by 15% or 0.80 USD per kilo to 6.10 USD per kilo.

Other species

Import of frozen Russian shrimp to Japan in February 2009 slightly decreased on January 2009 to 560 tonnes, which was more than 51% down on the result of February 2008. In the first two months of the year traders imported a little more than 1150 tonnes of frozen shrimp, 38% down on last year. The average import price for the period amounted to 1215 Yen per kilo, 12% up on last year. In February 2009 it made ca.1230 Yen per kilo, also growing by 12% on February 2008.

Import of live sea urchin got dramatically brisker and its volume increased by 35% to 820 tonnes or nearly 45% up on last year. The total import volume in January-February 2009 grew practically by 25% to ca.143 tonnes, but the average import price through the period went down by 34% to less than 590 Yen per kilo. In February 2009 it was even lower at a little more than 470 Yen per kilo, 36% down on January 2009 and 57% down on February 2008.

Neither Japanese nor South Korean customs cleared shipments of Russian surimi in February 2009.

In February 2009 as well as in the first two months of the year the Chinese import of frozen Russian squid was progressing unexpectedly actively. More specifically, in February 2009 traders imported nearly 500 tonnes of squid versus only 20 tonnes last year, and in January-February 2009 the Chinese customs cleared more than 550 tonnes versus 23 tonnes last year. The average import price remained practically unchanged at 0.65 USD per kilo, while the average import price for squid from all the sources amounted to 1.15 USD per kilo.