Supply problems for octopus, good squid catches
16/12/2021
In late September, the EU General Court decided that European Union-Morocco trade deals covering farm products and fish were invalid because the agreements were reached without consulting Western Sahara.
Western Sahara has been a contested area for decades, and Morocco has occupied and administered about 80 percent of the territory for years, while 20 percent has been under the control of the Polisario. The Polisario Front has clashed with Morocco and claimed sovereignty over Western Sahara, and the EU General Court decision now in fact recognizes the Polisario’s right to represent the people of Western Sahara before European courts.
The European Union and Morocco have had fishing and trade agreements for decades, and the present agreement, which will become invalid by December 2021, gives a total of 128 EU vessels access to Moroccan waters (including Western Sahara waters). Consequently, the annulment of the agreements would have serious negative effects on EU fishing in the region, and in particular for the cephalopod landings by EU vessels. The parties are now trying to negotiate a solution.
Octopus
In July and August 2021, European restaurants and foodservice outlets reopened, and demand for octopus immediately surged. The summer holiday represents a peak in consumption of octopus, and the reopening of the foodservice sector led to strong increasing demand. In Spain, restaurants registered a 20 percent increase in consumption of octopus compared to the same period in 2020. Supplies have been tight, though. The fishing season in Morocco ended on 5 September, while the season in Mauritania ended in late August. The next fishing season does not open until late December, so the supply situation is not likely to improve. On a positive note, octopus landings in northern Spain have risen sharply during the summer.
Supplies from other countries like Mexico and Indonesia are limited, too. Consequently, total octopus supplies are getting very tight, and prices are rising across the board. Prices will likely continue to rise in coming months.
Trade
Spanish imports of octopus grew strongly during the first half of 2021, with Morocco being the main supplier, followed by Mauritania. EU imports of frozen octopus from Morocco increased by 15 percent during the first half of 2021 compared to the same period in 2020, from 305 514 tonnes in 2020 to 353 362 tonnes in 2021. The value of these imports increased by 6 percent, from EUR 2 billion (USD 2.3 billion) to EUR 2.36 billion (USD 2.7 billion).
Chinese imports of frozen octopus during the first five months of 2021 declined to 5 282 tonnes compared to 7 363 tonnes in the same period in 2020. China imported no octopus from Morocco during this period, and just very modest amounts from Mauritania (86 tonnes in 2021). The largest suppliers during the first five months of 2021 were Pakistan (1 977 tonnes), India (1 185 tonnes) and Indonesia (1 016 tonnes).
Imports of octopus (all product forms) into the Republic of Korea during the first half of 2021 increased by 9.1 percent compared to the same period in 2020, from 32 158 tonnes to 35 088 tonnes. The major suppliers in 2021 were China (15 337 tonnes), Viet Nam (13 625 tonnes) and Thailand (3 660 tonnes).
Squid
The first squid season in the Southwest Atlantic closed in June with a good result. The total catch was estimated at 580 000 tonnes, the highest catch since 2015. It was estimated that 280 000 tonnes came from catches on the high seas, 170 000 tonnes in Falkland Islands (Malvinas) waters, and 130 000 tonnes by the Argentine fleet.
The good catches caused prices to fall. Prices for whole round illex squid in frozen blocks in China fell by 40 – 50 percent compared to the same time in 2020, to about USD 2 930 to USD 3 068 per tonne. Demand is growing, though, also in North America and the European Union. The main reason is the reopening of the foodservice sector.
While catches of illex squid were good, catches of loligo squid were lower. This has posed a problem for Chinese processors. China’s own catch (whether in domestic or international waters) is not enough to satisfy demand, so the country is importing squid from Indonesia and Viet Nam, among others.
The second season for loligo fishing started in the Falkland Islands (Malvinas) in August, and the outlook seems to be somewhat better than it was in the first season.
Landings in China’s main squid hub, Zhoushan, increased strongly in 2021. According to the Zhoushan Distant-Water Fishery Port, more than 190 000 tonnes of squid were landed by 214 vessels operating in the Southwest Atlantic and East Pacific, during the first half of 2021. This is a 61 percent increase compared to the same period in 2020. However, the Ministry of Agriculture has announced a moratorium for the Chinese distant-water fleet operating in the Southwest Atlantic from 1 July - 30 September.
Trade
Brexit created a serious problem for exporters of squid in the Falkland Islands (Malvinas). The European Union, which is a major market for Falkland Islands (Malvinas) squid, imposed tariffs on squid imports as the United Kingdom of Great Britain and Northern Ireland left the European Union. And after Brexit, foreign shipowners operating in the Falkland Islands (Malvinas) (except Spanish shipowners) were obliged to pay tariffs of eight percent for loligo squid, and six percent for flying squid. But during the summer, the Falkland Islands (Malvinas) reached an agreement with the European Union, whereby the European Union can import a total of 75 000 tonnes of loligo squid tariff free every year in 2023.
Squid importers in both the European Union and United States of America are facing serious obstacles because of high shipping costs, disruption of supply chains and COVID-19-related labour shortages. Freight rates have sky-rocketed, from about USD 2 000 per container from China to the United States of America a year ago, to USD 15 000 per container. In addition, there has been an overall lack of supplies, partly as a result of transport problems. Processors in the United States of America are facing challenges recruiting enough labour due to COVID-related causes.
Japanese imports of squid and cuttlefish during the first six months of 2021 increased by 6.5 percent compared to the same period in 2020, from 67 796 tonnes to 72 205 tonnes. China accounts for as much as 61 percent of this total, with 44 160 tonnes. The second largest supplier is Peru, with 11 percent of the total import volume.
China’s exports of squid and cuttlefish increased steeply during the first half of 2021 compared to the same period in 2020. Total exports amounted to 247 934 tonnes, up 30.5 percent compared to 2020. The largest market, Japan, increased slightly by 3.9 percent, while exports to the Philippines grew massively by 170 percent, from 12 058 tonnes to 32 592 tonnes. Exports to
Thailand were also up significantly by 19.4 percent to 32 540 tonnes.
Chinese imports of squid and cuttlefish also increased significantly during the first half of 2021, from 151 427 tonnes in 2020 to 196 261 tonnes in 2021 (+29.6 percent). The largest supplier, Peru, registered a 122 percent increase in shipments.
US imports of squid and cuttlefish during the first half of the year increased sharply by almost 43 percent, to 32 464 tonnes. The largest supplier was China, accounting for 37.4 percent of the total. India and New Zealand each accounted for about 10 percent of the total.
The growing demand for cephalopods in Europe is now apparent in import statistics. Spanish imports of squid and cuttlefish were up by 26.6 percent during the first half of 2021 compared to the same period in 2020. The largest suppliers were the Falkland Islands (Malvinas), Peru, and Morocco.
Outlook
Over the coming months, octopus may be in short supply, and this may last until the beginning of 2022, when the fisheries reopen in Morocco and Mauritania. Meanwhile, demand is good and growing, and consequently prices will be going up, too.
The squid fisheries in South America, both in the Southwest Atlantic and in the East Pacific, have been good. Landings in the Falkland Islands (Malvinas), in Argentina, and in the Chinese distant-water port of Zhoushan have been strong, and supplies are therefore quite ample. At the same time, demand is expected to grow, although the summer peak season for consumption is over. Prices have been falling and this trend will likely continue in the next few months.
The cancellation of the fishing agreements between the European Union and Morocco will affect supplies of octopus and squid. Octopus supplies from Mexico and Indonesia are also weak. The squid fisheries in Southwest Atlantic and the East Pacific have been strong during the first season, supplies are good and prices are falling.
In late September, the EU General Court decided that European Union-Morocco trade deals covering farm products and fish were invalid because the agreements were reached without consulting Western Sahara.
Western Sahara has been a contested area for decades, and Morocco has occupied and administered about 80 percent of the territory for years, while 20 percent has been under the control of the Polisario. The Polisario Front has clashed with Morocco and claimed sovereignty over Western Sahara, and the EU General Court decision now in fact recognizes the Polisario’s right to represent the people of Western Sahara before European courts.
The European Union and Morocco have had fishing and trade agreements for decades, and the present agreement, which will become invalid by December 2021, gives a total of 128 EU vessels access to Moroccan waters (including Western Sahara waters). Consequently, the annulment of the agreements would have serious negative effects on EU fishing in the region, and in particular for the cephalopod landings by EU vessels. The parties are now trying to negotiate a solution.
Octopus
In July and August 2021, European restaurants and foodservice outlets reopened, and demand for octopus immediately surged. The summer holiday represents a peak in consumption of octopus, and the reopening of the foodservice sector led to strong increasing demand. In Spain, restaurants registered a 20 percent increase in consumption of octopus compared to the same period in 2020. Supplies have been tight, though. The fishing season in Morocco ended on 5 September, while the season in Mauritania ended in late August. The next fishing season does not open until late December, so the supply situation is not likely to improve. On a positive note, octopus landings in northern Spain have risen sharply during the summer.
Supplies from other countries like Mexico and Indonesia are limited, too. Consequently, total octopus supplies are getting very tight, and prices are rising across the board. Prices will likely continue to rise in coming months.
Trade
Spanish imports of octopus grew strongly during the first half of 2021, with Morocco being the main supplier, followed by Mauritania. EU imports of frozen octopus from Morocco increased by 15 percent during the first half of 2021 compared to the same period in 2020, from 305 514 tonnes in 2020 to 353 362 tonnes in 2021. The value of these imports increased by 6 percent, from EUR 2 billion (USD 2.3 billion) to EUR 2.36 billion (USD 2.7 billion).
Chinese imports of frozen octopus during the first five months of 2021 declined to 5 282 tonnes compared to 7 363 tonnes in the same period in 2020. China imported no octopus from Morocco during this period, and just very modest amounts from Mauritania (86 tonnes in 2021). The largest suppliers during the first five months of 2021 were Pakistan (1 977 tonnes), India (1 185 tonnes) and Indonesia (1 016 tonnes).
Imports of octopus (all product forms) into the Republic of Korea during the first half of 2021 increased by 9.1 percent compared to the same period in 2020, from 32 158 tonnes to 35 088 tonnes. The major suppliers in 2021 were China (15 337 tonnes), Viet Nam (13 625 tonnes) and Thailand (3 660 tonnes).
Squid
The first squid season in the Southwest Atlantic closed in June with a good result. The total catch was estimated at 580 000 tonnes, the highest catch since 2015. It was estimated that 280 000 tonnes came from catches on the high seas, 170 000 tonnes in Falkland Islands (Malvinas) waters, and 130 000 tonnes by the Argentine fleet.
The good catches caused prices to fall. Prices for whole round illex squid in frozen blocks in China fell by 40 – 50 percent compared to the same time in 2020, to about USD 2 930 to USD 3 068 per tonne. Demand is growing, though, also in North America and the European Union. The main reason is the reopening of the foodservice sector.
While catches of illex squid were good, catches of loligo squid were lower. This has posed a problem for Chinese processors. China’s own catch (whether in domestic or international waters) is not enough to satisfy demand, so the country is importing squid from Indonesia and Viet Nam, among others.
The second season for loligo fishing started in the Falkland Islands (Malvinas) in August, and the outlook seems to be somewhat better than it was in the first season.
Landings in China’s main squid hub, Zhoushan, increased strongly in 2021. According to the Zhoushan Distant-Water Fishery Port, more than 190 000 tonnes of squid were landed by 214 vessels operating in the Southwest Atlantic and East Pacific, during the first half of 2021. This is a 61 percent increase compared to the same period in 2020. However, the Ministry of Agriculture has announced a moratorium for the Chinese distant-water fleet operating in the Southwest Atlantic from 1 July - 30 September.
Trade
Brexit created a serious problem for exporters of squid in the Falkland Islands (Malvinas). The European Union, which is a major market for Falkland Islands (Malvinas) squid, imposed tariffs on squid imports as the United Kingdom of Great Britain and Northern Ireland left the European Union. And after Brexit, foreign shipowners operating in the Falkland Islands (Malvinas) (except Spanish shipowners) were obliged to pay tariffs of eight percent for loligo squid, and six percent for flying squid. But during the summer, the Falkland Islands (Malvinas) reached an agreement with the European Union, whereby the European Union can import a total of 75 000 tonnes of loligo squid tariff free every year in 2023.
Squid importers in both the European Union and United States of America are facing serious obstacles because of high shipping costs, disruption of supply chains and COVID-19-related labour shortages. Freight rates have sky-rocketed, from about USD 2 000 per container from China to the United States of America a year ago, to USD 15 000 per container. In addition, there has been an overall lack of supplies, partly as a result of transport problems. Processors in the United States of America are facing challenges recruiting enough labour due to COVID-related causes.
Japanese imports of squid and cuttlefish during the first six months of 2021 increased by 6.5 percent compared to the same period in 2020, from 67 796 tonnes to 72 205 tonnes. China accounts for as much as 61 percent of this total, with 44 160 tonnes. The second largest supplier is Peru, with 11 percent of the total import volume.
China’s exports of squid and cuttlefish increased steeply during the first half of 2021 compared to the same period in 2020. Total exports amounted to 247 934 tonnes, up 30.5 percent compared to 2020. The largest market, Japan, increased slightly by 3.9 percent, while exports to the Philippines grew massively by 170 percent, from 12 058 tonnes to 32 592 tonnes. Exports to
Thailand were also up significantly by 19.4 percent to 32 540 tonnes.
Chinese imports of squid and cuttlefish also increased significantly during the first half of 2021, from 151 427 tonnes in 2020 to 196 261 tonnes in 2021 (+29.6 percent). The largest supplier, Peru, registered a 122 percent increase in shipments.
US imports of squid and cuttlefish during the first half of the year increased sharply by almost 43 percent, to 32 464 tonnes. The largest supplier was China, accounting for 37.4 percent of the total. India and New Zealand each accounted for about 10 percent of the total.
The growing demand for cephalopods in Europe is now apparent in import statistics. Spanish imports of squid and cuttlefish were up by 26.6 percent during the first half of 2021 compared to the same period in 2020. The largest suppliers were the Falkland Islands (Malvinas), Peru, and Morocco.
Outlook
Over the coming months, octopus may be in short supply, and this may last until the beginning of 2022, when the fisheries reopen in Morocco and Mauritania. Meanwhile, demand is good and growing, and consequently prices will be going up, too.
The squid fisheries in South America, both in the Southwest Atlantic and in the East Pacific, have been good. Landings in the Falkland Islands (Malvinas), in Argentina, and in the Chinese distant-water port of Zhoushan have been strong, and supplies are therefore quite ample. At the same time, demand is expected to grow, although the summer peak season for consumption is over. Prices have been falling and this trend will likely continue in the next few months.