INDUSTRY NEWS
World production of fish and fishery products is expected to slightly expand by 1.1% this year, compared with 2016, thanks largely to the end of El Niño and the associated recovery of catch volumes for certain fisheries, particularly the anchoveta fishery in South America.
THANKS TO EL NIÑO END
Global fish production forecast to grow 1% in 2017
Global production of fish and fishery products is expected to slightly expand by 1.1% this year, compared with 2016.
According to FAO's fish-trade site Globefish, the growth is largely accounted for by the end of El Niño and the associated recovery of catch volumes for certain fisheries, particularly the anchoveta fishery in South America.
Aquaculture production, meanwhile, is forecast to continue to grow at a rate similar to last year. Globefish cited recent OECD-FAO projections that said this sector is set to account for the majority of all production (including non-food uses) by 2022.
"Driven by robust demand growth worldwide, a substantial proportion of global (aquaculture) production will be exported, with the value of world trade in fish and fishery products expected to increase by a projected 5.8% to US$150.9 billion in 2017", Globefish said.
The demand growth has had an upward effect on prices, pushing the FAO Fish Price Index up by 7 points year-on-year as of April 2017.
Salmon prices
Salmon prices have gone up to record levels. Good demand for shrimp in both Western and Asian markets have offset production increases, while cephalopods and bivalves are primarily responsible for the increase in the "other fish" category.
White fish was the only species category for which aggregate traded prices have declined (-5 points), caused primarily by weak demand in major markets for pangasius and tilapia.
India and Chile are expected to be the standout seafood exporters in 2017. In India's case, bumper harvests of farmed vannamei shrimp are the main factor in the expected US$2.3 billion (+41%) increase in Indian seafood exports in 2017.
For Chile, a combination of a recovery in salmon harvest volumes and the high price level for salmon products will equate to a projected rise of $1.6 billion (+30 percent) in export value. Ecuador (primarily shrimp and tuna), Peru (primarily fishmeal and fish oil) and Norway (primarily salmon, groundfish and small pelagics) are also forecast to see substantial increases in exports this year, Globefish said.
On the importer side, both developed and developing markets are expected to perform well in 2017. Globefish said significant import growth is forecast for the Southeast Asian emerging markets in particular, while the traditional "big three" (the US, the European Union and Japan) will all see seafood demand boosted by improving economic conditions.
MAIN PRODUCT SALMON ALSO DOWN
Norway seafood exports down 18% in volume, 8% in value in Sept.
Norway's seafood exports in September dropped 18% to 189,000 tonnes from a year before, with value also decreasing 8%, or NOK 681 million, to NOK8 billion (US$1.1 billion), according to the Norwegian Seafood Council (NSC).
In the nine months through September, Norway exported 1.8 million tonnes of seafood with a value of NOK69 billion ($8.7 billion). This is a volume increase of 3% and a value increase of 6%, or NOK3.7 billion, from the same period last year.
NSC Director Asbjørn W. Rørtveit.said that for seafood exports to reach NOK100 billion in 2017, the value added for the last three months of the year must be NOK4.75 billion, which "is unlikely".
Salmon exports
September exports of salmon, Norway's top seafood product, reached 97,300 tonnes, down 2% from the same month last year. Export value amounted to NOK5.8 billion ($731.07 million), which is at the same level as September last year.
From January to September, exports of salmon reached 711,000 tonnes, the same level as last year. Value hit NOK48 billion, an increase of 10%, or NOK 4.2 billion, from the same period last year.
The average price of whole, fresh salmon in September was NOK55.47 ($7) per kilogramme, or NOK 1.12/kg higher than the same month last year.
During the nine-month period, Poland and France bought the most salmon from Norway.
Trout, shellfish, crab exports
Norway exported 3,800 tonnes of trout in September, down 41% from last year. Value amounted to NOK257 million ($32.4 million), down 30%, or NOK113 million.
From January to September, Norway exported 26,000 tonnes of trout with a value of NOK2 billion ($252.05 million). This is a volume decline of 53%, while the value fell by 33%, or NOK 988 million, compared with the same period last year.
In September Norway exported 1,500 tonnes of shellfish worth NOK 158 million ($19.9 million). This is a volume decline of 56% and an 8% decline in value.
In January-September, Norway exported 38,000 tonnes of shellfish with an export value of NOK1.3 billion ($163.82 million). This is a volume decline of 5% and a value decline of 11%.
During the same nine-month period, Norway exported 1,400 tonnes of red king crab worth NOK385 million ($48.52 million). This is a volume decline of 17%, while export value fell by 5%, or NOK21 million.
GOOD HARVEST
Alaska 2017 commercial salmon harvest up 67% in value
Alaska's 2017 commercial salmon fishery all species harvest was 224.6 million wild salmon with an estimated preliminary ex-vessel value of US$678.8 million, up 66.7% from 2016's value of $407.3 million.
The Alaska Department of Fish and Game (ADF&G) said that although there are still fish being caught, the majority of 2017 salmon fisheries have ended.
Of the total number of fish, sockeye salmon again came in as the most valuable species, accounting for 48% of the value at $326.1 million and 23% of the harvest at 52.4 million fish.
Pink salmon accounted for 25% of the value at $169.0 million, and 63% of the harvest at 141.6 million fish. Chum salmon accounted for 19% of the value at $128.3 million and 11% of the harvest at 25.2 million fish.
Coho salmon accounted for 6% of the value at $37.6 million and 2% of the harvest at 5.1 million fish. The Chinook salmon harvest was 251,141 fish with an estimated preliminary value of $17.8 million.
Forrest Bowers, deputy director of the Division of Commercial Fisheries, characterized the 2017 Alaska salmon season as a banner year for the industry and state of Alaska.
"Tremendous harvests occurred across Alaska—from Kotzebue to Southeast, highlighted by an all-time record statewide chum salmon harvest. In addition, 2017 is the third year in a row statewide sockeye salmon harvest exceeded 50 million fish. Record wild salmon harvests like these are a testament to Alaska's sound, science-based management, the professionalism of ADF&G's staff, and thoughtful stakeholder engagement", he said.
In terms of poundage, the all species wild salmon harvest of 1.041 billion pounds ranks third from 1975 to 2017 and is only the third time harvest has exceed 1 billion pounds. In terms of ex-vessel value, the all species harvest of $676.6 million ranks third from 1975 to 2017.
This year's chum salmon harvest of 25.2 million fish is the largest harvest ever. Along with record breaking numbers, this year's chum salmon ex-vessel value of $128.3 million ranks second-best from 1975 to 2017. This year's pink salmon harvest ranks third in terms of ex-vessel value and fourth in terms of poundage.
SALMON ISSUES
Farmed salmon feed needs revamp…
A research institute said the amounts of vitamin and mineral supplements in the feed for Atlantic salmon must be adjusted in line with the changing composition of salmon feed from being fish-based to plant-based.
The Norway-based National Institute of Nutrition and Seafood Research (NIFES) pointed out that a shift from mainly marine ingredients to feeds where more than 70% comes from plants has changed the requirements, adding that implementation of this new knowledge is important for the growth and welfare of the salmon.
"Lack of micronutrients can be fatal for the fish. Too little of just one nutrient is enough to cause problems", said Kristin Hamre, senior scientist at the NIFES.
NIFES said that while most of the feed was previously composed of fish meal and fish oil, most commercial salmon feeds now contain more than 70% plant ingredients.
It said plants contain anti-nutrients that can cause the fish to absorb less of the nutrients in the feed and, in some cases, the salmon therefore need different quantities of vitamins and minerals.
'Even if the plants contain these nutrients, the fish are unable to absorb them to the same extent as they would from marine feeds. Plant ingredients also contain lower levels of some nutrients than fish meal and fish oil do. That is why we need to adjust the amount of micronutrients", said Hamre.
Project Arraina
Since 2011, NIFES has been part of the EU project Arraina, the goal of which is to find out how much micronutrients different species of fish need now that the composition of the feed has changed. Norway and Scotland have collaborated on the part of the project that concerns salmon.
It was found that for some of the vitamins and minerals studied so far, the old recommendations are far from what the fish actually need.
"When we first saw the results, we could hardly believe our eyes. For example, when the results for the B vitamin niacin came in, it turned out that salmon needs four times as much niacin as previously recommended, and twice as much vitamin B6", Hamre said.
Through the Arraina project, NIFES scientists have created nutrient packages of all the micronutrients, which they have added in graded levels to the feed.
The scientists have reviewed vitamins C and E, eight different B vitamins and several minerals, using a method where they look for the level of all micronutrients in one and the same trial, instead of studying one at a time.
'…[I]n the future we will study selected nutrients in more detail. With increasing use of plant ingredients in the feed, it is important that we find the right supplementation of vitamins and minerals to ensure good growth and robust and healthy fish", Hamre said.
…Sea lice continues to plague industry
Sea lice has become such a big problem that it is disrupting salmon farms around the world, and scientists have to work double time to mitigate, if not eliminate, infestation.
The tiny crustaceans continue to doggedly infest salmon farms in the US, Canada, Scotland, Norway and Chile, which are the major suppliers of the high-protein fish, Associated Press reports.
Apparently, scientists did not anticipate how big the sea lice problem affecting salmon farms would become. "Our work has to be quicker than the evolution of the lice", Jake Elliott, vice president of Cooke Aquaculture in Blacks Harbour, New Brunswick, Canada, was quoted as saying.
In August last year at a salmon science symposium organised by the UK's University of Stirling Institute of Aquaculture, scientist Armin Sturm disclosed that it had been 15 years since the last new anti-sea lice product was introduced. "We really should try to get some new drugs", he said then.
AP cited experts who say defeating the lice will take several new and established technology including older management tools such as pesticides, and newer strategies such as breeding for genetic resistance.
Underwater lasers
Innovative solutions in use or development include bathing the salmon in warm water to remove lice and zapping the lice with underwater lasers.
The pests, according to Fish Farmer Magazine, cost the global aquaculture industry about $1 billion annually.
Saying it is the biggest threat to their industry, salmon farmers say the sea lice is making the fish more expensive to consumers.
Shawn Robinson, a scientist with the Canadian Department of Fisheries and Oceans, said the only hope is to develop new methods to control the spread of lice, which are present in the wild, but thrive in the ocean pens for fish farming.
"There are not enough tools right now to allow the farmer to really effectively deal with it," Robinson told AP.
HISTORIC FIRST FOR AQUA SCHEME
BAP certification formally recognised by GSSI
The Global Aquaculture Alliance's (GAA) Best Aquaculture Practices (BAP) certification on Oct. 4 received formal recognition from the Global Sustainable Seafood Initiative (GSSI), a global platform and partnership of seafood companies, NGOs, experts, governmental and intergovernmental organisations working toward more sustainable seafood.
The BAP certification is the first aquaculture scheme to achieve recognition and the fourth seafood certification scheme.
"I am pleased to express my sincere appreciation to the independent experts, the benchmark committee members, the GSSI secretariat and, of course, the GAA BAP staff for seeing BAP successfully through the benchmark process.
"This is a true testament to the successful design of the benchmark tool, which provides clarity on what constitutes a credible certification scheme and drives improvement wherever possible", said GSSI Steering Board Chair Bill DiMento, VP Quality Assurance, Sustainability and Government Affairs, High Liner Foods.
For his part, GAA Executive Director Wally Stevens said, "We are pleased to receive this recognition of our Best Aquaculture Practices programme. The BAP programme was first implemented in 2003 and this year will reach a milestone of 2,000 certified facilities around the world with anticipated farm-gate production exceeding 2 million metric tonnes".
The Global Aquaculture Alliance's mission is to promote responsible aquaculture practices through education, advocacy and demonstration.
GAA'S BAP certification programme is based on achievable, science-based and continuously improved performance standards for the entire aquaculture supply chain.
AWARENESS OF FISH'S NUTRITIONAL VALUE DRIVING GROWTH
Indonesian aquaculture annual growth seen at 13.2%
The Indonesian aquaculture market is forecast to grow at a CAGR (compounded annual growth rate) of 13.19% during the period 2017-2021, a new research report says.
The report, released by Research and Markets, identified the rich nutritional sources in aquaculture products as one driver of the market growth. Since the last decade, the awareness of the nutritious benefits of seafood has significantly increased. This has escalated the consumption rate of aquaculture products, the report claimed, adding this factor plays a key role in the development of the aquaculture market in Indonesia.
An analyst from the research team also said, "One trend in the market is development of new aquaculture species. Many different countries that are already mature in the aquaculture market, especially China, India, Vietnam, Indonesia, the US, Canada, and Norway, have explored new aquaculture species that are of high nutritional values".
Asia-Pacific, followed by Europe, dominates the trend of introducing aquaculture species with high nutritional value and low volume, the analyst added.
The report states that one challenge in the market is inversely proportional behavior of aquafarming seed quantity and quality. A sufficient quantity of premium-quality aquafarming seeds serves as the foundation for the aquaculture industry. These optimize aquaculture production because a proper balance between quantity and quality is a basic pre-requisite for a successful and sustainable aquaculture production.
With increasing quantity in the production, the quality is compromised, the report said. However, quality is very important because poor performance indicators like growth rate, production, survival and several diseases in seed quality have consistently been witnessed over the recent years.
Aquaculture is a process of rearing and cultivating aquatic animals and plants for food under controlled conditions. It includes the farming of more than 500 species of finfish, mollusks, crustaceans and other invertebrates, over 30 seaweed species, more than 30 freshwater macrophytes species, a few amphibians and aquatic reptile species, and around 50 microalgae and invertebrate species as fish-food organisms in hatcheries.
Key players in the aquaculture market in Indonesia include the four companies: PT. Bumi Menara Internusa, PT. Dharma Samudera Fishing Industries, PT. Japfa Comfeed Indonesia and PT. Mega Marine Pride.
Other prominent vendors in the market are Baiyang Investment Group, Liancheng Overseas Fishery (Shenzhen) Co., Ningde Xiawei Food, PT. Central Proteina Prima Tbk (CP Prima) and Shandong Oriental Ocean Group.
WINNERS ANNOUNCED ON NOV. 16
Finalists of 1st Irish Seafood Retail Business Award bared
The Bord Iascaigh Mhara (BIM), or Ireland's Seafood Development Agency, has concluded the final phase of judging for the inaugural Seafood Retail Business Award 2018.
The Award, whose winners will each receive a prize worth €15,000 (US$17,608), was established to identify and acknowledge the seafood business with the best seafood business skillset. It also strives to facilitate shop owners and managers in the sector to innovate and improve the management of their businesses.
Each applicant was visited by two judges and assessed on his/her ability to demonstrate a range of skills including excellent seafood product knowledge, customer insight, innovation and plans for future development of the business.
Eight finalists from across Ireland will now compete for the coveted titles of Independent Seafood Specialist 2018 and Supermarket Seafood Manager 2018.
The judging panel consists of business experts including retail mentor James Burke, renowned food writer, Domini Kemp, financial advisor Moira Creedon, and Ronald Hovenars, a food business mentor from Holland, who brings an international element of insight into progressive seafood retailing.
Based on figures collated by Kantar Worldpanel, the domestic retail market for seafood is valued at approximately €245million ($287.7 million) per annum in the 52 weeks ending June 18, 2017. This figure represents a 4% increase in the value of the overall market compared with the previous year.
Speaking at the final judging event, Jim O'Toole, BIM chief executive, said, "Recent figures have shown that the domestic retail market for seafood is on an upward trend. It is our responsibility as an agency, to support our retail seafood sector workers to capitalise on this growth, in a bid to bolster our industry even further".
He said the Seafood Retail Business Award was "designed as a means through which the hard work and dedication of those working within the sector can be acknowledged whilst also acting as a catalyst for others to innovate and grow the businesses in which they work, whether this be employee or owner-led."
The finalists are as follows:
Independent Seafood Specialist
-- Donagh Good, Good Fish Shop, Carrigaline, County Cork
-- Laura Desmond, Reid's Fish Market, Howth, Co Dublin
-- Lar McCarthy, The Fresh Fish Shop, Bandon, Co Cork
-- Gerard Collier, Fisherman's Catch, Clogherhead, Co Louth
Supermarket Seafood Manager
-- Scott Smullen, Dunnes Stores, Cornelscourt, Dublin 18
-- Daniel Drwal, Tarpey's SuperValu, Co Cavan
-- Dan O'Regan, Garvey's SuperValu, Tralee, Co Kerry
-- Piotr Wojakowski, Field's SuperValu, Skibbereen, Co Cork
Presentations have been made by each finalist on their business and growth plans before a judging panel last September 28 in the Maritime Museum, Dún Laoghaire, Co Dublin.
The winners in each category will receive a package of business supports worth €15,000. The package is designed to assist the winner in areas practical to the running of a business such as future business growth, as well as branding and promotional advice.
The winners will be announced at an awards lunch in the Wineport Lodge, Glasson, Co Westmeath, on Nov. 16.
EXTOLLING QUALITY OF UK FISH
UK celebrates Seafood Week
The UK celebrated Seafood Week from Oct. 6 to 13, as businesses involved in the seafood industry signed up to be campaign partners.
The organiser, Seafish, said the annual eight-day campaign celebrated the quality and variety of fish and shellfish on offer in the UK and championed the seafood industry with the aim of encouraging the general public to eat more fish more often.
Seafish, a levy body that represents the UK seafood industry, urged seafood firms to become campaign partners. Lidl became the latest brand to announce its support for Seafood Week. Morrisons, Hilton Worldwide and Saucy Fish Co. also showed their support for the campaign by signing up as partners.
The partnership gives businesses campaign support from Seafish, which has created a range of collateral for businesses to use free of charge. In addition, Seafish will work with partners' social media channels to boost their engagement levels.
It is the third year that Seafish has run Seafood Week. Seafish's chief executive, Marcus Coleman, said, "Seafood Week is a fantastic opportunity for businesses to promote themselves and the wonderful produce they have on offer".
"We pride ourselves on the variety and quality of seafood in our stores across the UK and we are committed to meeting our target of 100% MSC-certified fresh and frozen farmed own-brand fish by 2018, and 100% MSC-certified fresh and frozen wild caught own-brand fish by 2019", he added. MSC stands for Marine Stewardship Council.
