April 18, 2019 — SEAFOOD NEWS — The market for U.S. origin Atlantic sea scallops remains unsettled at the start of the 2019 fishing year which began on April 1, 2019. With consecutive days of landings over the 200,000 lb. mark, the industry is split. Some are taking a step back, allowing for the raw material market to stabilize before adjusting their prices, while others promote discounts with the abundant landings typical of the season opening.
Inventory holdings play a key role when determining price adjustments at the start of the season. Those with healthier inventory levels with product purchased when prices were higher will be slower to discount at the first sign of the market softening.
The graph below illustrates how the most dramatic discounts are typically seen in the first two months of the season, before the market begins to stabilize through the end of the year.
In looking at our current season, while the daily catch rates have been ample, the scallop quality is characterized as ‘medium’, with splits and pieces taking a higher percentage rate than favorable, resulting in weaker boat prices. The weeks ahead will reveal if the 2019 season will follow seasonal trends or create its own path.
The following story was published on SeafoodNews.com, a subscription site. It is reprinted with permission.