Cephalopods - April 2010
In the Argentinian market, the shortage of squid has been felt quite strongly. During Holy week, the week before Easter and usually the main period during the entire year for fish consumption, squid prices equalled those of hake fillets, while the price of hake is normally double the price of squid.
Peruvian giant squid experienced a difficult 2009. During the year some 405 700 tonnes of this species were taken in Peruvian waters, 24% less than in 2008. Main importing countries of frozen giant squid from Peru are China, Spain, Japan and the Republic of Korea. Exports declined in 2009 in line with the decline in production.
Price increase of squid lower than expected
2009 was thus characterized by limited production, but price increases were also limited, as the economic problems, especially in the Spanish market, put a brake on any higher price demands by exporters from South America.
Imports of squid into Japan declined in view of limited production, but also because of good domestic production. In 2009, some 59 100 tonnes were imported, 13% less than in 2008. China continues to be the main supplier to the Japanese market, in part re-exporting finished products originally imported from Peru and the USA. However, Chinese squid exports to the Japanese market declined by 10% in 2009. Direct exports from Peru to the Japanese market were 10 400 tonnes, 24% less than in 2008, in line with the overall decline in Peruvian production and exports. All other traditional suppliers also reported lower shipments.
Imports of squid into Spain declined sharply in 2009; only 113 700 tonnes were imported, compared with 150 400 tonnes in 2008. The last year’s figures were the lowest in recent history. This negative outcome was the combination of two occurences - the economic crisis in Spain and the disastrous squid season in the South West Atlantic during 2009. In total, this area reported 62 000 tonnes of exports last year, down from 100 000 tonnes in 2008. All other suppliers to the Spanish market reported higher exports, with China more than doubling its squid exports to Spain in 2009.
Italy was the only market among the main consumers of squid that did not report any substantial change in imports. In 2009, the country imported 86 300 tonnes, on a par with the 2008 figure. Spain increased exports to the Italian market, probably because demand and prices offered in Italy were better than in the domestic market. Argentina, as with all other markets, suffered a 50% decline in its exports to Italy. As already indicated, the present year is unlikely to bring Argentina back into the international squid arena.
Abundant octopus supply snapped up by high demand in 2009
The octopus season off West Africa is still underway and likely to continue through April, but catches are lower than expected, and the sizes caught are not easy to sell. The late start of the biological rest period will mean fewer octopus products will reach the market during summer months, which probably will result in better prices towards the middle of the year.
In order to counterbalance the difficult economic situation last year, Mauritanian authorities allowed extremely high octopus catches. This production flooded the market, and prices of octopus declined sharply. As a result imports into the main markets were high, owing to Mauritanian octopus. This country doubled its exports to Japan (26 500 tonnes) and to Spain (9 200 tonnes), while Italy reported octopus imports four times higher than previously from Mauritania (6 000 tonnes). Prices of Mauritanian octopus reached a high of USD 14.50/kg in December 2009 in the Japanese market, but since then have declined, to the present level of USD 12.70/kg.
Japanese octopus imports increased significantly in 2009, especially during the last quarter of the year, which saw a 100% growth over the same period of 2008. Japanese traders took advantage of good supply, but because of the excellent demand, coldstorage holdings moved quickly. In the whole of 2009, 56 200 tonnes of octopus were imported into Japan, 25% more than in 2008. As already mentioned, Mauritania doubled exports and made up for more than 40% of total octopus imports. Morocco is the number two exporter of octopus to the Japanese market. Good octopus catches in 2009 resulted in a 30% increase in shipments to Japan.
Italy is the world’s second major importer of octopus with 55 000 tonnes. This represents an 8% increase compared with the previous year. Morocco, the main supplier to this market, increased its shipments by 10%. Spanish octopus imports increased slightly to 43 300 tonnes, despite the difficult economic situation in the country. This was mainly the result of increased supply from Mauritania. Morocco, traditionally the main trading partner for octopus with Spain, diverted some quantities to more attractive markets such as Japan and Italy, who were willing to pay higher prices.
Higher squid prices likely
The biological situation of the squid population in the South West Atlantic has a direct impact on squid availability on the world market. Thus these initial signs indicate that squid supply will be low this year, which in turn should lead to higher prices. 2009 was in some ways an exception, as the limited supply did not result in the expected price hikes. This was mainly caused by the difficult economic situation in Spain, which led to reduced demand in one of the world’s major markets. This year, the economic situation seems to be improving and hopefully increased demand for squid and other cephalopod products in the Spanish market should lead to higher prices, also in view of the depleted coldstorage holdings. However, the squid caught at present seem to be small, which generally fetch a lower price than larger specimens.
Prices in Japan have already started to move up somewhat. Coldstorage holdings of squid in Japan are low, and are likely to stay so, until the domestic flying squid season starts in July. Further price increases are likely.
Octopus prices are likely to decline for a further two months, but during the biological fishing ban, prices should go up somewhat. Future developments during the course of the year will depend on the fishing quota set by Moroccan authorities and by the interest of the Mauritanian government in enforcing measures to protect the resource.
