Cephalopods - July 2009
Squid catches extremely low
The 2009 squid season in the Southwest Atlantic was a disaster. In the whole area, only 65 000 tonnes of squid were caught in the first five months of the year, which compares with 334 000 tonnes of squid caught in the area during the same period last year. Squid catches around the Falklands/Malvinas were extremely low, only 45 tonnes of Illex squid were caught in January to May 2009, which compares with 94 000 tonnes during the same period of 2008. For Loligo squid the decline was slightly less dramatic, down from 25 000 tonnes to 13 000 tonnes. Argentina Mainland reported squid catches during the first five months of the year of 53 000 tonnes, down from last year’s 220 000 tonnes. In June 2009 there is practically no more squid fishing, as the fuel costs are higher than income.
Squid exports from Argentina were 28 700 tonnes in the first four months of 2009, almost half the amount exported one year earlier. While exports to Japan and Republic of Korea were quite strong, shipments to Spain and China, usually the main markets for Argentinian squid, declined sharply.
Good demand in Japan
In the Japanese market, which had already started to weaken when squid supplies from the Southwest Atlantic first arrived, prices firmed again, once the disastrous catch situation there became apparent. Total squid imports into the Japanese market in the first quarter of the year were slightly lower than the corresponding 2008 figures. Further price hikes are likely before September when the domestic flying squid supply will enter the market. Overall, coldstorage holdings are about 7 000 tonnes short of the last year’s results, which also points to price increases in the market.
Prices should be moving up, in reaction to this sharp decline, but the impact of the economic crisis on demand for squid in Spain puts an effective brake on any major price increases.
The unit value of Spanish squid imports from Argentina was USD 1 000/tonne in the January-April 2009 period, down from USD 1 067/tonne in the same period of 2008. Imports of squid from Argentina into Spain were 9 700 tonnes in the January-April 2009 period, down sharply (-63%) from the corresponding period of 2008.
Spanish import statistics for the first three months of the year showed a moderate decline in imports, a trend that will become stronger in the second quarter of the year.
All main exporting countries reported lower exports. On the other hand, Spanish importers are reluctant to offer higher prices, in the view of the overall economic situation in the country.
Similar to Spain, the Italian market is importing less squid. In addition, Italian traders are turning to lower priced species (Giant squid) rather than the traditional Loligo squid. The use of this relatively new species in industrial food preparations, such as seafood salads, is increasing.
High prices offered for octopus
Octopus fishing has recently started in Mauritania and Morocco. As usually at the beginning of the catching season, after a long period of fishing bans, catches are good and specimens are large. However, the expectations are for smaller octopus to be caught soon, and lower catches to be reported.
Octopus traders in Japan are offering higher prices than Europe at the moment, and there was a substantial shift in exports towards this market during the second quarter of the year. During the first quarter of 2009, octopus imports into Japan declined sharply. As a result, coldstorage holdings went down in recent months, and traders are filling the gap. Prices of octopus in the Japanese market are moving up, helped by a relatively strong yen.
Italian octopus imports were stable in the January-March period, with substantial increases in imports from Morocco and Mauritania. Spanish octopus imports declined somewhat, as the buying interest in this country was very slow.
Economic situation takes bite on squid prices
Squid prices in Europe will continue to increase, owing to extremely low supply from the Southwest Atlantic. However, price increases are not as high as expected because of the overall bleak economic situation. In addition, supply of Dosidicus gigas from Peru, which in previous years was a substitute for Illex squid from the Southwest Atlantic, is scarce at the moment. The start of the European summer and the tourist season generally means good demand for squid, but tourism will probably be at a lower level this year. In addition the poor economic situation in Spain is acting as a real deterrent to higher prices.
Octopus prices are decreasing in Europe, in reaction to the economic crisis, again mainly in Spain. Octopus exporters are shifting to the Japanese market, as prices there are attractive as a result of good buying interest. It will take some time before production from the present catch season will reach the market.
