(IntraFish) FAO fish price index is up 2.8 percent for 2012 so far and is set for further increases as production grows.
Sustained demand for seafood products is boosting aquaculture production worldwide and pushing seafood prices higher, said a new report from United Nations Food and Agriculture Organization (FAO).
Overall production is expected to grow by at least 2 percent in 2012, supported by a strong increase in aquaculture output.
Trade is expected to remain brisk with 2012 export values rising again, according to the report, authored by Audun Lem, senior fisheries officer.
“In the aftermath of the Brussels seafood show, the market for fish and fishery products appears more influenced by supply variations for the individual species and products, rather than any clear weakening of demand,” said the report.
Despite slow economic growth and reduced purchasing power in many of the traditional key import markets, such as Spain, Italy and France, demand for seafood is strong overall, it said.
“The FAO Fish Price Index shows current quotations close to all-time highs, especially for captured species,” said the report.
“Rising energy and feed costs are likely to keep fish prices high during the year.”
At the same time, prices are important drivers of demand as shown by the salmon market where added farmed production and lower prices in 2012 compared to 2011 are boosting consumption in all salmon markets, it said.
The FAO is forecasting total production of 157.3 million metric tons in 2012, up 2.1 percent on 2011. However wild fisheries are set to decline by 0.4 percent to 90 million metric tons, with aquaculture production rising 5.8 percent to 67.30 million metric tons.
In addition, FAO said world shrimp production fell by 20 percent — 2.5 million metric tons — in 2011 because of supply shortfalls in Asia. However, with the new Asian 2012 season starting in April and May, supply is forecast to recover and prices to soften and the market should stay firm.
Tuna and groundfish supplies are also expected to increase, with demand for the former, including skipjack and yellowfin, declining due to high prices. Supplies of farmed whitefish, including pangasius and tilapia are not expected to see substantial growth in the near future. Cod prices are expected to climb somewhat, while Alaska pollock prices will continue to decline.