Octopus and squid prices recovering, cuttlefish remains stagnant.

While demand for cuttlefish is still dull, there are signs of recovery in the demand for octopus and squid. In particular, demand in Japan is rebounding, as imports of octopus and squid increased last year while encouraging signs were also seen in Italy and Spain. Recent trends demonstrate stable prices for octopus and prices for squid moving upwards again.

Octopus

Octopus is experiencing growing demand on the US market. While US consumption of seafood in general declined in 2013, demand for certain items like tilapia, salmon, oysters and octopus increased. In fact, octopus is becoming one of the most demanded items in the US restaurant market with US imports of octopus having increased by nearly 40% from 2010 to 2012 (Source: INFOFISH).

In Japan, demand for octopus appears strong at the moment. In 2013, Japanese imports of octopus increased by an impressive 23% compared with 2012, totalling 58 400 tonnes. Mauritania retained its position as the number one supplier to Japan, providing 23 800 tonnes, or almost 41%. Morocco demonstrated the greatest increase in exports to Japan, growing from 6 500 tonnes to 19 800 (+205%).  Other suppliers to Japan registered little change, except that Senegal and Spain shipped significantly less octopus to Spain in 2013 than in 2012.

Morocco also significantly increased its octopus exports to Italy in 2013, growing their export volume from 7 800 tonnes in 2012 to 14 300 tonnes in 2013 (+88%). Also for imports to Italy in 2013, Spain increased its shipments from 6 400 tonnes to 7 400 tonnes (+15.6%), while the other major suppliers to this market (Mexico, Senegal, Indonesia) saw declining shipments. For 2013, Italy’s total octopus imports fell marginally by 2.3% compared with 2012.

On the other hand, Spanish octopus imports increased strongly,  with total imports growing by 30.5% in 2013 compared with 2012. This trend could indicate that in some ways the Spanish economy and the tourism sector is recovering with tourists returning and spending money on seafood during their stay. As in other major markets, Morocco showed an impressive increase in exports to Spain, a growth rate of 48.6% for 2013 compared with 2012, which totalled 21 100 tones, accounting for over 50% of all Spanish octopus imports. Portugal also increased its shipments of octopus to Spain, from 2 200 tonnes in 2012 to 7 000 tonnes in 2013, which is an impressive 218% growth rate. Mauritanian shipments to Spain, on the other hand, dropped slightly by just over 9%. 

Octopus prices remained  stable in 2013. Taking into consideration the supply situation and growing demand in some of the major markets, prices could edge upwards. However, this is not expected, as it is more likely that prices will stay at the same level in the near-term.

Squid

After Peru gained a total of 50 000 square kilometres of area in a maritime border dispute with Chile, it is estimated that an extra 200 000 tonnes of squid could be caught. Pilot fishing in this area has only resulted in about 14 500 tonnes, but researchers estimate the total potential of the area to be between 80 000 and 200 000 tonnes per year. The main species in the area is jumbo flying squid (Dosidicus gigas). According to reports from SeafoodSource.com, for 2013, lower catches of squid in Peruvian waters have affected Peru’s exports to China. Indeed, a new factory in southern Peru, which produces squid mainly for the Chinese market, is having difficulties obtaining enough raw material for its production of boiled squid, a favourite in the Chinese market.

Argentina’s squid exports have increased significantly in 2013, by 92% to 133 082 tonnes. Furthermore, their export value grew from USD 156.5 million in 2012 to USD 235.4 million in 2013 (+50%) (Source: FIS.com).

In general, reports from South America indicate that the squid fishery was a bit behind in 2013 compared with 2012. By the middle of March 2013, a total of 31 760 tonnes of Illex squid had been landed, compared to 69 120 tonnes during the first three months of 2012.  

The Japanese cephalopods market appears to be improving, as an addition to octopus imports increasing in 2013, squid imports increased as well. Total squid imports grew from 75 100 tonnes in 2012 to 93 200 tonnes in 2013 (+24.1%). The largest supplier was China, which increased its shipments by 17%, though their share of total imports declined from 45% to 42.5%. Peru also increased shipments significantly, by almost 70%, to 14 400 tonnes. Shipments from the USA also increased. Otherwise, there were only minor changes among other supplying countries.

Italian squid imports also increased in 2013, from 70 400 tonnes in 2012 to 78 400 tonnes in 2013 (+11.4%). The largest suppliers were Spain (28.4% of total imports), Thailand (21.7% of total imports), and China (13.6% of total imports). Imports from other important suppliers like Viet Nam and Indonesia all declined.

Although Spanish imports of octopus increased in 2013, imports of squid declined by 17%. This affected mainly the largest suppliers, the Falkland Islands/Malvinas and India, which both shipped less squid to Spain in 2013. Imports from the Falkland Islands/Malvinas declined by 18.7%, while shipments from India declined by 20.6%. Imports from Morocco, on the other hand, increased once again by 71%. 

US squid imports were stable in 2013, and experienced only a slight decline in volume. With imports of around 70 000 tonnes per year, the USA is now one of the most important markets for squid, although the country also exports large quantities. Indeed, in 2013, the USA exported over 96 400 tonnes of squid and squid products, though this volume is a noticeable decline from 2011 when 148 500 tonnes were exported (Source: NMFS Statistics). 

Though squid prices have been rising for a long time, at the end of 2012 there was a sudden drop, perhaps as a result of troubled economies in many of the main markets. However, since the beginning of 2013, prices have started to recover and climb slowly again.

Cuttlefish

The cuttlefish market has remained stagnant for some time, and there are no real signs of improvement. In general, international trade declined in 2013, with lower imports into all the main markets.

For Japan, cuttlefish imports declined by 18.5% in 2013, to just 13 200 tonnes. Imports into other main markets, such as Italy and Spain, declined by 18% and 16.1%, respectively.  The main suppliers to Japan were other Asian countries, particularly Thailand and Viet Nam, while main suppliers to the European market were other European and North African countries (France, Spain, Tunisia, Morocco, Senegal and Mauritania).

Japanese imports from Thailand and Viet Nam declined in 2013, while imports from Morocco grew again. Moroccan cuttlefish did not do so well on the Italian market, however, with a 10.5% decline in shipments in 2013 compared with 2012. Spanish cuttlefish did well in this market in 2013, though, growing by 18.4%.

Morocco held its own on the Spanish market in 2013, account for over 46% of all imports in 2013. Furthermore, while total cuttlefish imports into Spain declined by 16.1% for the year, Morocco actually shipped slightly more to this market (+4.6%). India faced a significant decline in the Spanish market, experiencing nearly  a 50% drop in cuttlefish volume.

Outlook

2013 demonstrated a bright outlook for octopus, with improved supplies and signs of recovering  demand, which could lead to firmer prices in the long term. The squid market also seems to be improving as trade has been increasing   and prices  are expected to climb modestly. For cuttlefish, on the other hand, the outlook is not so good. Supplies are tighter, but  demand is also slower.