The world squid market is in a very difficult situation. Supply is sharply down in the Southwest Atlantic, which normally would lead to a substantial price hike, especially after the extremely low prices of the previous two years.

Economic crisis impacts world cephalopod market 

The world squid market is in a very difficult situation. Supply is sharply down in the Southwest Atlantic, which normally would lead to a substantial price hike, especially after the extremely low prices of the previous two years. However, the economic crisis is putting a brake on these price expectations, and even though prices are moving up somewhat, it is still far from what was expected, given the present supply situation. Demand for octopus is strong in Japan, while the European market is rather reluctant to offer higher prices. Future price developments will depend on the outcome of the fishing season in the East central Atlantic, which has just started.

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 Re-public of Korea were quite strong, shipments to Spain and China, usually the main markets for Argentinean 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 in squid availability, 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.

Report prepared by Helga Josupeit (FAO)