May 9, 2008

UK's M&J warns of cod shortage, higher prices

One of the leading seafood suppliers in the UK, M&J Seafoods, warned that cod could be in short supply and prices could rise over the next three or four months.

The company said reports were coming out of Iceland that 90 percent of that country's cod quota has already been used and a new deal would not take effect until the beginning of September.

Northern hemisphere cod quotas were also nearing their end, said M&J.

To guarantee supplies through the summer, the company is sourcing from everywhere, M&J added.

According to M&J, there are signs that cod prices could soon start to go up.

"It is also not beneficial for trawlers to land the codlings when larger cod is demanding a higher price so it looks as though codlings are going to be in short supply. Baltic codlings are available but these are not too good in quality at the moment," the company said in its report.

Last year, Iceland reduced its allowable catch for cod by 60,000 tonnes to only more than 130,000 tonnes. The move came after the country's Marine Research Institute said that there was a serious threat to future stocks.

The decision has led to more expensive cod in the UK and Europe, caused cuts in fish-processing jobs in Iceland and hit the Icelandic economy.

The industry is expecting an increase in cod quota this year, but an announcement is not expected until the end of June or beginning of July.