The past 12 issues of the European Price Report (EPR)  showed a general trend of fish prices in Europe which was impacted by the high inflation rates, mostly at the end of 2022. Prices of fishery products, especially for groundfish species, increased during the closing months of 2022 by some 30 percent. During the first nine months of 2023, the trend showed a general decline in fish prices in the European Union, albeit staying some 8 percent ahead of the September 2022 price level. The tourist season during the summer of 2023 was weaker than anticipated, as European citizens suffered from the general erosion of their disposable income. In Italy, 300 000 less people took holidays, and those who managed to leave generally stayed away from home for a shorter period. As a result the restaurant sector consumed less fishery products, always considered a luxury item compared to red meat on restaurant menus.

The species that suffered most from low restaurant demand was shrimp, for which turn over declined sharply over the course of the 2023 summer. Imports of shrimp into the European Union dropped by 15 percent in value terms and by 10 percent in quantity terms during the first half of the year. The unit value of shrimp prices declined by 5 percent during this period, from USD 8.20 per kg to USD 7.90 per kg. Similar to shrimp trade, lobster and crab were in lower demand, while pangasius, a low priced alternative to whitefish supply, managed to recover some of its market share, lost in the past due to negative press. Imports of frozen pangasius fillets into the European Union  increased by 10 percent over the course of the first half of 2023. The unit value of this product stayed stable at USD 3.50 per kg.

Price for surimi collapsed in September as both Russian suppliers and US domestic suppliers competed in a market that is shrinking due to inflation. Demand has weakened, and inflation has made consumers more price conscious. In addition, significant supplies of Russian surimi have hit the market. However, most of the Russian production is going to the Asian market, but it is also making an impact on the US market. Surimi prices in the United States of America were down by about 50 percent in September compared to the same month a year earlier.  

Prices in Japan have also dropped considerably as a result of this situation with strong supplies and high inflation. Export prices of US surimi to Japan have fallen, and the same is happening in Europe.  

Russian production of surimi is expected to increase strongly in 2023 compared to 2022. While some estimates indicate a production of about 40 000 tonnes, others are putting the estimate at 60 000 to 70 000 tonnes. US surimi production is expected to be about 185 000 tonnes in 2023, up from 160 000 tonnes in 2022. 

Norway is the largest exporter of Atlantic mackerel in the world, and about one quarter of all the Norwegian mackerel ends up in the Republic of Korea. However, Korean shopping habits are changing. They are not shopping in physical shops like before. A growing share of sales is now channelled through the internet possibly facilitated by the COVID-19 pandemic.

Today, about 43 percent of Koreans buy food and household goods through the internet. In addition, direct TV programs or live streaming services are promoting specific products, often with a well-known chef or an “influencer” helping, and viewers can buy directly on the internet, live. Thus, e-trade has become an integrated part of the shopping behaviour of Koreans. A recent study showed that as much as 25 percent of Norwegian mackerel is being sold through these internet channels.  

The Norwegian Seafood Council reported that export prices for herring and mackerel spiked in late July and early August. Mackerel prices had remained fairly stable, albeit with some ups and downs, from late 2022 until week 28 of 2023, and then made a jump in week 29. Much of this increase is attributed to the Norwegian krone (NOK) which has become weaker over the past months. In US dollar terms, prices have been relatively stable, but they did increase markedly in week 29.  

Prices for Atlantic herring have been more stable, but registered the same dramatic increase towards the end of July.  

The allocation of quotas for mackerel in the Atlantic has for years been a problem. The main coastal states (European Union, United Kingdom of Great Britain and Northern Ireland, Norway, Iceland, the Faroe Islands) have not been able to agree on the quotas, and in particular not on the distribution of the quotas among themselves. Consequently, the countries have set unilateral quotas, and these have often added up to more than the scientific advice.  

However, for 2023, the United Kingdom of Great Britain and Northern Ireland and Norway reached a bilateral agreement, but this agreement has not contributed to a conducive environment for further consultations. Both Norway and the Faroe Islands have been accused of continuing to operate excessive and unilaterally set quotas. 

Against this backdrop, the European Commission has been urged by fishing bodies to take action by introducing trade measures and establish workable quota agreements.  

Global inflation is having its effect on seafood markets. Consumers in Europe as well as Asia are more sensitive to price increases than they were a year ago. This is particularly true for luxury products like lobster. Prices of Canadian live lobster were down earlier in the year, but started edging upwards again during the summer. In late July, export prices to China, for example, were up 13 percent compared to end of June, but still 22 percent below the five-month high in early April.  

Over the past year, octopus processors have seen a significant increase in raw material prices, but in July of 2023, prices started to slip because of good supplies from Morocco and a slower demand from the European foodservice sector. Octopus fishing in Morocco was off to a good start and this influenced prices. Export prices of Moroccan octopus were in decline from the first quarter of 2022 until about early February 2023, when they made a sudden jump. Since then they have stayed high, with some ups and down.  

They outlook may not be all bright, though. It appears that inflation in many countries have dampened consumer spending, and this hits octopus sales. Normally, the European summer holiday season is a busy time for the industry, but this year, consumers seem to be holding back a little on spending, especially on eating out. Continued inflation will keep impacting consumer buying power in the months to come.  

Latin American countries are suffering from an outbreak of Streptococcus aglactiae that is found in crops of various areas. The bacterial disease will potentially affect over half of the tilapia farms, and this has have received much attention from authorities and stakeholders to control the spreading of disease. The National Authority for Aquaculture and Fisheries (AUNAP) of Columbia called on consumers and traders of fishery products, especially tilapia, to counteract the effects of the health emergency decreed by the Colombian Agricultural Institute (ICA). AUNAP provided a message of reassurance and clarified that the health emergency was declared to prevent and implement measures to guarantee food safety, as well as the viability of importing vaccines. It is not a zoonotic bacterium; therefore, it does not represent a risk to human health, neither by contact nor by consumption. Stakeholders maintain constant communication with the regulatory and control bodies to mitigate the adverse effects that this situation may cause.

In a related development, the Aquatic Resources Authority of Panama (ARAP) reported continuous sanitary surveillance during tilapia production to ensure safe procedures, due to the presence of Streptococcus aglactiae in other markets. The sanitary programme includes periodic sanitary surveillance sampling and the implementation of good aquaculture production practices. The COVID-19 outbreak and the epidemic management of other fisheries provided experience that helped ensure a practical method of reducing the effects of the disease outbreak.

The fisheries sector is an important component in the economy of the Federated States of Micronesia. Subsistence fishing is important to most households in the country, and is a critical component of the food supply in the outer islands. Estimated per capita fish supply amounted to 50 kg in 2019. The money received from licensing foreign fishing vessels represents about USD 69 million. The share of these revenues and grants has increased over the years, and is now about half of all government revenue.

Locally-based offshore vessels consist of Federated States of Micronesia-flagged purse seiners and Federated States of Micronesia and Chinese-flagged longline vessels. Total tuna catch by Federated States of Micronesia flagged vessels was 154 000 tonnes in 2021, with over 90 percent of the catch from purse seiners. Foreign-based offshore vessels consist mainly of purse seiners and longliners mostly from Asian countries. Japanese pole-and-line vessels occasionally fish in the Federated States of Micronesia zone. In 2021, this fleet reported catches of 1 971 tonnes.

Coastal fishing is carried out for subsistence purposes and for sale in local markets. The production in recent years from coastal marine fisheries has been some 10 000 tonnes, of which about one-quarter is sold.

Table: Federated States of Micronesisa exports of fishery products (in USD million)

Source: Trade Data Monitor, 2023

The value of fishery exports from the Federated States of Micronesia in 2022 was USD 200 million, with Thailand as the main importing country. The main product exported was frozen tuna.  Some USD 4.5 million of fishery products were imported by the Federated States of Micronesia in 2022. making the country is a strong net exporter of fishery products.

International shrimp trade entered a declining phase since the last quarter of 2022, although global imports recovered reaching the pre-pandemic level. World  imports of shrimp were estimated to have reached 3.5 million tonnes in 2022.

China became the leading buyer where year-on-year imports of shrimp increased by 44 percent reaching close to 1 million tonnes in 2022. Combined shrimp imports in the top five markets ( China, the United States of America, the European Union, Japan and the Republic of Korea) reached 2.95 million tonnes in 2022 which represented an eighty two (82) percent share in international shrimp trade.

Affected by low consumer demand and unsold stocks in the western markets, shrimp prices remained weak until July 2023. During January-June 2023, farmed shrimp imports, in particular, declined in most of the large western markets (-18 percent in the United States of America and -11.6 percent in the European Union) but increased in China where Ecuador is the leading supplier and holds 61 percent market share of imported shrimp. Others notably India, Indonesia, Thailand, and Saudi Arabia also increased exports to China during this period.

 Meanwhile, affected by declines in exports to large western markets (United States of America, European Union) and falling farm gate prices, shrimp farmers in South and Southeast Asia have reduced stocking density in their farms for the next harvests due in September/October.