Herring - April 2009

01/04/2009

The volume of Japanese fresh and frozen herring imports increased by +26% to 35 000 tonnes between 2007 and 2008 with import value coming back to JPY 5 billion.

The volume of Japanese fresh and frozen herring imports increased by +26% to 35 000 tonnes between 2007 and 2008 with import value coming back to JPY 5 billion. However, this figure is still far below the herring trade reported for previous years. Most of these imports are in frozen form. The USA continue to be the main exporter of frozen herring to the Japanese market, with more than half of the total supply. However, imports from the Russian Federation grew the most in percentage terms, increasing +37% in volume to 8 100 tonnes. Imports from Norway remained roughly static in 2008, increasing by just -400 tonnes to 4 300 tonnes.

The strong showing is attributed to the 33.3% growth in imports from North America, helped by recovery of catch in Bristol Bay and good harvests in Sitka. Fish feeding patterns in Norway and Russia also improved. If the present trend of a stronger yen continues, supply from North America, which had been in critical state in recent years, may be secured. However, one cannot be overly optimistic about the future if the projections of fish size composition and other factors are considered.

The Minato Shimbun conducted a survey on 25 supermarket chains and cooperatives throughout Japan regarding seafood commodities that sold briskly during the 2008 year-end sales campaign. Each company was asked to name two top commodities. Herring roe continued to hold the top position from the previous year, with 18 of 25 firms responding it was the best-selling commodity.

Japan's imports of raw materials for salted herring roe recovered slightly to 3 800 tonnes for the USA and Canada combined. Import clearance to China is said to have decreased to near zero as traders tried to avoid the risk of having Chinese labels on the products. It seems that US labels of origin were maintained in the processing operation in China. When this amount is included, imports of herring roe products showed a slight decline over the previous year. Supply of frozen roe for production of flavored herring roe, mainly from Canada, further declined from previous years, barely staging at 2 000 tonnes. This suggests that there is a serious concern over declining herring stock.

Sales volume of salted herring roe in Japan hit the ceiling because of large price hikes in two consecutive years, with annual trading volume falling 14.6% from 2007. Sales during the last two months of 2008 were 13% less from a year earlier, due to limited deliveries caused by decreasing supply. No price collapse occurred because of shrinking receipts in the year-end season. Rather there was partly a shortage of supply, depriving some marketers of selling opportunities. Overall, the prices were retained relatively constant as supply was largely limited during the past two years.

Norwegian frozen whole herring exports reached a new record of 491 500 tonnes in 2008, almost 100 000 tonnes more than in 2007. The Russian market stayed the main importer of herring, albeit due to a temporary ban, import of frozen herring from Norway declined sharply (-22%). The organization Social Control and the testing laboratory Giprorybflot in Russia tested preserves of Atlantic herring in St. Petersburg. Ten samples were purchased for the test in retail chains, but only six samples met state standards.

On the other hand, Nigerian imports went up strongly. This rather low priced market imported some 138 000 tonnes of frozen herring from Norway in 2008, 7 times the 2007 amount. Some twenty years ago this country was one of the main outlets of small pelagic in the world, but the market practically closed down some ten years ago.

Dutch herring exports fell by almost 35% in 2008, mainly due to a reduction in quota share. The decline resulted in lower exports to the main market, Nigeria, which received 51 000 tonnes in 2008,. Some 30 000 tonnes less than in 2007. The lower supply of herring from the Netherlands to this market led to higher imports from Norway. Nevertheless, Nigeria continues to be the main market of frozen herring from the Netherlands, accounting for 59% of total imports.

Exports to Egypt declined only slightly by 11% from 16 000 tonnes in 2007 to 14 300 tonnes, and represented a 17% share of all Dutch frozen herring exports in 2008. Exports to China increased by +10% to 10 000 tonnes in 2008, and constituted 7% of all exports. Exports of frozen herring from the Netherlands to Germany grew to reach 4 600 tonnes.

German Herring imports grew in volume from 2007 to 2008 by 6% to 165 000 tonnes, with the value of the import increasing slightly less (+5%) to EUR 200 million. The unit value of herring imports into Germany is low, at EUR 1.22/kg.

Fresh herring imports into Germany grew by 8% to 40 000 tonnes. The major supplier of fresh herring was Denmark, which provided 30 200 tonnes in 2008, a 25% increase on the 2007 volume. Denmark thus accounts for three quarters of German fresh herring imports.

The largest German herring import sector is for prepared and preserved product, of which 61 700 tonnes was imported in 2008 - a 6% decrease on the 2007 level. The value of preserved and prepared herring imports was EUR 112 million, for a unit value of EUR 1.88/kg. Some 15 years ago, the German herring processing industry started to build plants in Poland, and the production from these plants is the most important supplier of prepared and preserved herring to the German market. In fact, 77% of the prepared and preserved imports were sourced from Poland in 2008.

This table shows that totl French imports of herring increased by 8% to 8 300 tonnes from 2007 to 2008. There was a shift in the country of origin for French herring imports with Iceland supplying 43% of the volume in 2008, compared with 17% in 2007. Iceland almost tripled its exports to France.. The increase in Icelandic exports to the French market was offset by a -32% reduction in product from Norway. UK exports of herring almost collapsed from 2 000 tonnes to 600 tonnes.

Outlook strong for Russia

The Russian market is quite strong overall, with high freshwater (pangasius) and pelagic fish imports. While the Western European markets see a very difficult period ahead of them, the expectation for economic growth continues to be positive in Russia, which will attract a lot of fish and crustaceans to this market.

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