International & Trade

August 10, 2014 — Ken Franke couldn’t explain it, but inexplicably, just as quick as Mexico closed its waters to bluefin fishing, it reopened them Sunday to recreational fishing.

Franke, who is president of the Sportfishing Association of California (SAC), said he received verbal permission from Mexico City to tell his sport boats to start hooking and keeping bluefin. Back in mid-July, Mexico, for no apparent reason, shut down bluefin fishing for both commercial and recreational fishing. Suspect environmental groups, using the usual junk science, had been rattling their alarmist calls that the Pacific bluefin population was down to 4 percent of its virgin stock. Franke has questioned the science. He offered solutions and that must have been enough for Mexico.

Read the full story from U-T San Diego

August 8, 2014 — The cascading impact of Moscow's ban on many Western food imports this week may be starkest when it comes to fish.

Amid the global tug of war over the future of Ukraine, 34 tons of Ola Braanaas's salmon got caught in the middle.

"We have to sell our fish at any price now," the Norwegian salmon exporter, whose biggest customer was Russia, said on Friday. "The fish has to go."

The cascading impact of Moscow's ban on many Western food imports this week may be starkest when it comes to fish.

On Friday, Norwegian fish purveyors, for whom Russia is a key market, scrambled to find new buyers. Chile and the tiny Faroe Islands saw an opportunity to fill the gap in feeding the Russian appetite for salmon and other sea creatures. Shares in a Russian fish production company that until recently was partly owned by a U.S.-sanctioned Russian tycoon soared 19%.

"We consider the recent Russia events as a 'Black Swan' on the demand side," a fish industry analyst, Kolbjorn Giskeodegard, said in a research note, referring to the financial-markets term for an unexpected and consequential event.

Russian fish consumers should gird for higher prices, market-watchers said, while shoppers elsewhere could expect discounts.

Russia on Thursday prohibited for one year imports of beef, pork, poultry, fish, fruit, vegetables, cheese, milk and other dairy products from the U.S., Canada, the European Union, Norway and Australia. The move came in retaliation for sanctions against Russia's oil, banking, and military sectors, which the EU and U.S. said they enacted to pressure Russia to stop destabilizing Ukraine.

Read the full story at The Wall Street Journal

 

SEAFOODNEWS.COM [The Nation] by Pariphan Uawithya — August 8, 2014 — Makro, Tesco Lotus and Tops supermarket chains recently became the first retailers in Thailand to stop selling parrotfish, after receiving an overwhelming number of petitions from environmentalists and concerned consumers.

It is remarkable how an online campaign calling on Thai and international retailers to stop selling parrotfish drew huge consumer and media attention, gained public momentum, and achieved results in a matter of days. One of the retailers, Makro, even posted a message on its website reaffirming its commitment to environmental protection.

It is evident that consumer pressure can quickly and effectively shape corporate behaviour to become more responsible towards the environment that we all depend on. This most recent call to action indicates a growing interest and awareness among Thai consumers in a do-no-harm policy for the environment and the need to protect our coastal ecosystem.

Each Thai consumes an average 33 kilograms of seafood per year, almost twice the global average. While demand for seafood continues to grow, supply from domestic waters is decreasing at a rate of 1.7 per cent per year. Of the total marine catch, 60 per cent is caught in Thai waters and the rest from waters outside the Thai Exclusive Economic Zone. The colourful parrotfish plays a unique role in maintaining the health of coral reefs by grazing reef crust, eating algae that threaten growth and beauty of coral reefs, and producing coral reef sand. When parrotfish are overfished, and polluted wastewater is released into our ocean, algae overgrow and threaten both coral reefs and the health of our marine ecosystem.

Retail grocers are one of the main sources of consumer seafood purchases in urban areas and thus have a strong connection to the health of Thai waters and oceans. While removing parrotfish from the shelves is a step in the right direction, retailers could go to the next level by creating sustainable seafood purchasing policies, requiring their suppliers to deliver seafood products that are caught sustainably, and placing sustainable-sourced seafood products in their stores. There are already efforts underway in the US and Europe, where retailers source and sell sustainable seafood products in their stores. How did it happen? Consumers demanded it and retailers seized the business opportunity.

On the other hand, banning the sale of parrotfish will affect the income level of fishers who catch and sell it. The state of our coastal fisheries is so severe that fishing folk are often forced either to catch parrotfish to make ends meet, as fishery stocks are declining due to unregulated overfishing, or fish in protected areas and coral reefs. Independent fishers represent 90 per cent of the world's fishers and catch half of the world's fish, but because their operations are small, they are unable to tap into new market opportunities and benefit from the price premiums that certified sustainable seafood can command. A long-term solution to this problem is to support fishery improvement efforts that restore the marine and coastal ecosystem, allowing fish stocks to bounce back to sustainable levels while providing livelihood  support to fishers so that they can afford to adjust their catch practices. To drive more significant change now, establishing industry-wide, not just company-wide, sustainability commitments are important.

In Thailand, there are some positive changes that offer hope for dwindling coastal fisheries. Just last year, two start-up sustainable and safe seafood stores opened to fill this market demand. These sustainable seafood entrepreneurs buy fish from coastal fishers at premium price in exchange for improved fishery practices, such as replacement of the routinely used formalin, a chemical preservative that causes many health risks, with cold-storage as the means for preventing spoilage. The entrepreneurs sell their fish to restaurant owners, urban consumers, hotel operators, and others who demand safe and sustainable local seafood. Already, some aquatic species in the fishery areas are reportedly bouncing back after applying improved fisheries management practices. In addition, fishers are able to earn a better income while consumers are able to purchase safe, formalin-free seafood products and have more access to information about seafood that they consume.

These early success stories are grounded on the work of NGOs and researchers, committed local authorities, strong advocates, and fisher groups who organise themselves to negotiate with larger commercial interests, emerging sustainable seafood entrepreneurs, and rising domestic demand for safe and sustainable seafood. Through funding from the Rockefeller Foundation, we are also exploring solutions to replace unsustainable fishing practices with innovative approaches that build the resilience of coastal fisheries, while improving the economic and social conditions of the poor and vulnerable people whose well-being depends on it.

If consumers make their voices heard, and retailers listen, there is a high potential to grow the sustainable seafood market in Thailand. At the policy-level, governments must also promote ecosystems that incentivise lasting partnerships between small-scale fisher communities and the rest of the industry in order to promote sustainable management. With so much attention on the industry now, collective action can help build a future in which profits derived from fish are more equitably and responsibly earned and shared. In doing so, you not only improve the state of the ocean, one of our most precious natural resources, but also enhance the sustainability and profitability of fisheries.

This story originally appeared on Seafood.com, a subscription site. It is reprinted with permission.

 

August 8, 2014 — According to the Russian Embassy in Reykjavík, Iceland is not included in the boycott list, but the embassy’s representatives would not comment on whether that could change.

Helgi Anton Eiríksson, CEO of Iceland Seafood International (ISI), one of the biggest exporter of Icelandic seafood, stated that Iceland must be careful in its relations with Russia in the coming days and weeks so that Russia’s importation ban on products won’t include Iceland.

“To land on the list would be a shock for us and for the interests of Iceland and our seafood companies. [Russia] is our most important market for pelagic seafood and especially for mackerel, now that we find ourselves in the middle of the mackerel season,” Helgi said in an interview with Fréttablaðið.

Russia yesterday placed a ban on the importation of various food products, including seafood, from the European Union, Norway, the U.S., Canada and Australia as a response to sanctions placed on Russia by these countries following Russia’s interference with internal affairs in Ukraine.

Icelandic Minister for Foreign Affairs Gunnar Bragi Sveinsson commented that Russia’s move does not in any way impact Iceland’s support for Ukraine.

Read the full story at Iceland Review

 

August 6, 2014 — U.S. economic sanctions against Russia over Ukraine may wind up helping the Alaskan fishing industry.

At least that's the hope of those promoting "Just Say Nyet," a petition intended to get Congress to ban Russian seafood imports.

Organizers cite Russia's possible involvement in the downing of a Malaysian Airlines passenger jet over Ukraine on July 17, and Russian support for Syrian President Bashar Assad in his country's civil war as reasons to boycott Russian seafood.

The website features a photo of Russian President Vladimir Putin holding a giant pike. Kremlin aides have said he caught the freshwater fish in a lake in Siberia, not the Gulf of Alaska.

The Obama administration and the European Union have ratcheted up sanctions against Moscow for its interference in Ukraine, imposing four rounds of travel bans and asset freezes since March against individuals, banks, oil companies, arms suppliers and other institutions. Fish have yet to make the list.

Read the full story from the LA Times

August 7, 2014 — Norwegian salmon farmers including Marine Harvest ASA (MHG), the world’s largest, slumped in Oslo as Russia retaliated against economic sanctions with import bans on food products including fish.

Marine Harvest, controlled by billionaire John Fredriksen, fell as much as 12 percent in intraday trading, the most in more than six months, while Leroey Seafood ASA dropped as much as 9.6 percent, Salmar ASA (SALM) 9.9 percent and Cermaq ASA (CEQ) 8.2 percent. Oslo’s 13-member Seafood Index slumped as much as 9.3 percent, the most on record.

Russian Prime Minister Dmitry Medvedev said today that the country will ban all cheese, fish, beef, pork, fruit, vegetable and dairy imports from countries that have imposed sanctions on Moscow over its support for separatists in eastern Ukraine. Norway, while not a member of the European Union, has said it will probably follow the latest set of EU sanctions that target Russia’s finance, energy and defense industries, and is among the countries targeted by the bans.

“There’s a lot of uncertainty,” Nordea Markets analyst Kolbjoern Giskeoedegaard said by phone. “If there’s a full ban, we’ll get a period with a significant price fall.”

Read the full story at Bloomberg Businessweek

SEAFOODNEWS.COM by John Sackton — Aug 7, 2014 — Russia's announcement early today of the food commodity imports it will ban covers most frozen fish and seafood products.  However canned products under custom codes 1604 and 1605 will not be included.

The list of banned products covers all fresh and frozen fish, molluscs, and crustaceans.
 
The most immediate impacts for US producers will be felt on the West Coast, with hake, surimi, frozen pink salmon and salmon roe all significant export products to Russia.  All are now subject to the import ban.
 
For whiting/hake, US exports to Russia through June were worth about $4 million, and for all of 2013, the total export value was nearly $8 million.
 
For pollock surimi, shipments through June to Russia were worth $3.5 million, and for all of 2013 $8.2 million.
 
Salmon roe is where the most direct market impact might be felt because Russian imports of salmon roe represent a larger share of total production than they do for hake or surimi.  In 2013, total salmon roe exports to Russia were valued at $45.9 million, with a volume of over 7 million pounds.  Through June, shipments of salmon roe out of inventory from last year were worth $8.5 million, with a total volume of 1.1 million pounds.
 
The imposition of the import ban on salmon roe at the height of the roe production season is going to have a market impact, since the roe not shipped to Russia will have to be sold in Eastern Europe and Japan.  As a result, these markets will have to absorb greater supply, with a corresponding decline in price.
 
Frozen pink salmon will also be affected.  In 2013, virtually no frozen pinks were sold to Russia, but in 2014, that jumped from less than $250,000 to $3.3 million, making frozen pink salmon the second most valuable US export in the first half of the year, after whiting.
 
Canned pink salmon and other canned seafoods are not part of the ban.   However, Russia is not an export market for canned salmon from the US, and the exemption will have little impact.
 
The Russian sanctions on fresh and frozen fish and seafood were applied to the EU, Canada and Australia as well.  The biggest impact will be in Norway, where an immediate fall in salmon prices is expected.
 
Russia imported 6.6 billion NOK worth of seafood from Norway last year, of which 4.2 billion NOK was salmon.
 
Analysts who have modeled the impact of a Russian ban see an immediate price drop of more than 10-12%, and then a near term market settling about 10-12% below current levels for fresh Norwegian salmon.
 
Long term, if these sanctions continue in place for a year or longer, these same analysts from the Bergen firm Optimeering expect the impact to be minimal, as new markets will be found and trade patterns adjusted.
 
One of the 'winners' on salmon is likely to be Chile, whose exports are not affected.  Ironically, the same Norwegian firms cut out of the market via Norway, will be expanding their sales in Russia through their Chilean subsidiaries.  However, the Chilean shipments will be frozen Atlantic salmon, which has had nowhere near the growth experienced in fresh.
 
Russia is likely to expand its imports from Asia, including black market channels through China.  China already imports Norwegian and other farmed salmon, and it would not take much for some of this salmon to find its way to Russia.

This story originally appeared on Seafood.com, a subscription site. It is reprinted with permission.

SEAFOODNEWS.COM by Eugene Gerden — MOSCOW — Aug 5, 2014 –Sanctions imposed on Russia by Western countries will not have a negative effect on the country’s fishing industry, according to Russian leading fish producers and processors.

According to Alexander Fomin, president of the All-Russian Association of fishery entrepreneurs and exporters, currently the Russian fishing industry does not feel any consequences, regarding with the impositon of sanctions and there is a possibility that a favorable trade regime will continue.

At the same time, according to Alexey Aronov, the Executive Director, of the Russian Association of industrial and commercial enterprises of the fish market, there is a possibility that the sanctions may result in a drop of fish imports to the country and a decline of aquaculture salmon, mainly from Norway, which is currently estimated at 220,000 tonnes.

However he has also added that this will be only beneficial for Russia, as the majority of imported frozen fish in Russia is sold with a high content of glaze.

The same position is shared by George Martynov, president of the Association of Primorye Fish Industry Companies, according to him, sanctions will not affect Russian fishing industry, as the majority of fish is currently imported from Asia-Pacific states and China, which will not join to the sanctions. 

At the same time, in case of China, both countries have not ruled out the possibility to start mutual payments in national currencies in the fishing industry. This will allow to further increase exports of fish and seafood to China.  But this plan has already been criticized by some Russian fishery analysts  he says, as the devaluation of national currency  – the ruble and the increase of fish exports to China may pose a threat to food security of Russia.

At the same time, according to producers, among the major risks for the industry posed by sanctions are the inability of domestic producers to attract cheap loans in Western banks on favorable terms, as well as to conduct IPOs abroad.

 

This story originally appeared on SeafoodNews.com, a subscription site. It has been reprinted with permission.

SEAFOODNEWS.COM [SCOM]  Aug 1, 2014 — There are some indications that disappointing production, plus the damages caused by the recent strong typhoon, are pushing shrimp prices higher in China again this year, which could have a global impact.

Amy Zhong reports, via Shuichan News, that the whiteleg shrimp price is certain to increase in Weihai, Shandong during this autumn and the coming spring because of Typhoon Rammasun. 

The aquaculture industry in such areas as Zhanjiang and Hainan has suffered great losses with a large number of equipment and ponds inundated in the flood owing to the fierce Typhoon Rammasun. And this will take a toll on the markets of aquatic products in the northern areas of China like Shandong.

For example, now the whiteleg shrimp price has started to rise in Weihai, Shandong. Its price reaches around 72 yuan/kilo ($11.65) for the size of 40 shrimp per kilo, increasing by 5.9% compared with the price earlier.

   As a matter of fact, the whiteleg shrimp price has been on the rise in Weihai, Shandong during the first half of this year even before Typhoon Rammasun, according to price data. The above mentioned shrimp’s price ranged between 66-70 yuan/kilo in the market which represents an increase of 70% compared with the same period last year.

The continually high shrimp price here this year mainly results from the fact that there has been a dramatic decrease in the output of whiteleg shrimps from the main production areas like Guangdong, Fujian and Hainan last year owing to the influence of different typhoon. And the output decrease is so drastic in Zhanjiang that many whiteleg shrimp traders in the South China have to go to purchase the shrimps in places like Hebei, which in turn motivates the shrimp price to increase there. And the same phenomenon is expected to reoccur this year.

Looking at China's import and export statistics for shrimp show this trend.  Frozen shrimp exports through June are down 13.5%; while imports are up 7.2%.

For fresh shrimp, imports from Thailand through June are down 20%, but this was made up by a surge in official imports from Vietnam, and there is a much larger volume that is not reported in the official statistics.

Ecuador has also increased its sales to China (through May) in the same proportion of as its growth of overall exports, which is about 30% ahead of last year.

in China, reporters feel it is certain that the whiteleg shrimp price will rise in this autumn and the coming spring based on the current situation.

Whiteleg shrimp farmers in the main production areas like Guangdong after the end of this typhoon are being advised to first,  monitor and regulate the water quality of their ponds. Second, they should use the hand-picked feed and control the shrimps’ consumption. Third, they need to rid the ponds of the dead shrimps and handle the sick ones in time so as to minimize the losses caused by the typhoon.

This story originally appeared on Seafood.com, a subscription site. It is reprinted with permission.

SEAFOODNEWS.COM [JAPAN REPORTS]  TOKYO — July 31, 2014 — Japan and Korea are in an abnormal plight of expelling each other's fishing vessels from respective exclusive economic zone (EEZ) as the bilateral fisheries negotiations come to a dead end.

In the annual talks, Japan urged Korea to improve the present situation of Korean fishing boats in its EEZ, pointing out that Koreans are engaged in illegal activities in hairtail catch.
 
Negotiations came to a halt as Korea refused to cater to this request.
 
The two countries were unable to strike an agreement by June 30, the limit date, thus ending up in shutting the other country’s fishing vessels from their EEZs effective from July 1.
 
This was the first case where the two countries' fishermen were rendered unable to operate in each other's EEZ ever since 1999 when the current Japan-Korea Fisheries Agreement took effect.
 
Any fishing boats operating in other country's EEZ before the two governments come to agreement would be categorized as engaging in illegal fishing and be subject to seizure by the other country's authorities.
 
Both governments are said to be aiming at resuming fisheries talks so that adverse effect may not spread to the other areas of their mutual relations. 
 
But observers point out that the settlement of the row might be delayed in the absence of a clue for resumption of talks between the two countries–now facing a broader bone of contention as represented by the differences in understanding of history in the recent past.  But recent reports suggest talks will resume in August.
 
According to the Japanese government's Fisheries Agency, about 120 Korean vessels that had operated in the Japanese EEZ as of the end of June turned back to Korean waters.
 
It is likely that no immediate impact on Japanese fishing vessels has been observed.
 
But if the negotiations continue to be stalled for a longer period, Japanese mackerel fishing near Korea's Cheju Island–which will go into the prime period from around October–might be subject to negative impact.
 
Japan and Korea negotiate over the conditions of fishing in each other's EEZ at the Japan-Korea Joint Fisheries Commission.
 
This year the commission had envisaged settling the fishing conditions and the number of fishing boats for the period from July 1, 2014 through June 30, 2015.

This story originally appeared on Seafood.com, a subscription site. It is reprinted with permission.