Scallop prices respond as Japanese circulation bounces back

News 11:53 21/08/2012 KT
(IntraFish) US scallops prices are up in comparison to 2009 but are not as high as they were last year, largely due to higher supply coming out of Japan.

“This year it’s more evenly spread out, whereas last year was more of a feast or famine,” Eastern Fisheries Executive Vice President Joe Furtado told IntraFish. Scallopers are coming out of a unique situation brought on by the Japan's nuclear fallout last year.

Even though seafood from Japan was safe to eat, negative consumer perception still lingered from the Fukushima nuclear meltdown, making seafood from Japan a risky commodity to try to sell, Furtado said.

That meant circulation of Japanese scallops, which have become a staple in the giant US and Chinese markets, went down dramatically, and prices responded accordingly  by increasing dramatically. Figures from Seatrade International show prices at this time last year at $10.50 per pound for most sizes, whereas this year, with supply back up, prices are at $9.75 to $10.

The higher overall supply from Northern Japan, which is expected to hit the US market by early August, is having a big affect, Furtado said.

"The northern Japanese fishery has become a staple import for both the United States and China, and with the events surrounding last year’s tsunami, buyers were forced to shift their efforts more heavily into the US fishery," Furtado said. But both supply and prices could change as the year continues.

“Right now you're going to see the (US) landings slow down a little bit, and I think you're going to see boat prices arc upward," Ross Paasche, president of the American Scallop Association, told IntraFish.

At this time last year, prices started to arc upward, and by the end of the year, they had reached a 9 year high of $11 per pound for both 10-20 and 20-30 count per pound sizes.

Prices for scallops at the auction in New Bedford, Massachusetts:

8-10 per pound count: $10.54 on July 18

10-20 per pound count: $10.10 on July 17

Twelve and under per pound count: $9.90 on July 18

Demand up in China

Chinese scallop buyers are shifting their preferences towards higher end products in an effort to keep up with the country shifting landscape. 

Over the past two years, Eastern Fisheries’ biggest area of growth has been in China, where demand for dry, chemical free, unadulterated, frozen scallops has increased dramatically, Furtado said.

Two years ago, just 10 percent of the scallops Eastern shipped to China were dry and chemical free. That number shifted to 50 percent last year, and 80 percent this year. However, this may not be a direct reflection of the final product form Chinese consumers are eating.

“I don’t know how many of those customers are taking those products and further processing themselves,” he said.

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