Top Story: FTC may challenge Sysco-US Foods merger 

News Summary: The FTC may file a antitrust lawsuit to block the Sysco-US Foods merger within the next few weeks, say sources to the Wall St. Journal. Both the FTC and the Justice Dept. have to sign off on trade deals, and in recent years the FTC has not challenged high profile mergers. However, now they think the combination of the two largest broadline distributors could threaten competition, according to people familiar with the matter. Other Justice dept. antitrust suits have been settled with conditions, allowing mergers to go forward. Sysco still says the merger is on track. 

In other news a US owned vessel, flying the Lithuanian flag, has been seized by Russia and taken to Murmansk. The vessel is accused of illegally fishing for Barents Sea snow crab, and 30,000 lbs was found on board. The Lithuanians say the vessel was in international waters when it was seized. 

As much as 70% of some types of seafood imports into China are illegally transshipped through Vietnam to avoid taxes. For example, figures show Vietnam purchasing 3 times as much West Australian lobster as China - which is certainly not how that item is consumed. The Chinese hope some of the new free trade zones and logistics infrastructure will cut down on this smuggling. 

The pollock producers in Alaska have an excellent case to make to the FDA to change the legal market name of Alaska Pollock to simply pollock. Then only product from Alaskan waters could be legally called Alaska Pollock in the US. We expect widespread congressional support for this, but on the merits the FDA should make the change without prodding from Congress - it is fully consistent with the FDA’s responsibility on fish market names. We lay out part of the case in our editorial supporting the change. 

Scallop landings volumes are declining, based on sales through the New Bedford Auction. About 67% of the quota has been landed, and vessels are now metering their remaining trips. Average volume has declined to between 10,000 and 30,000 lbs of meats per day, vs. 50,000 to 70,000 lbs per day during the summer. 

Canada’s lobster industry is taking notice of the Maine referendum that we described yesterday, that would provide a source of loans to expand lobster processing further. “they’re eating our breakfast here”, says Jerry Amirault, of the Lobster Processors Association of New Brunswick and Nova Scotia. The Canadian industry is threatened with potentially crippling labor shortages as the Federal government threatens changes to the foreign worker program, and so far has not given the lobster industry an exemption. Lack of workers could simply accelerate a transfer of more processing to Maine. 

Finally, the US announced they will not be imposing any sanctions on Thailand as a Tier 3 country in the Trafficking in Persons Report. This was expected, as the President has the authority to waive sanctions and often uses it if the countries are US allies and trying to cooperate. Sanctions also have been waived against Saudi Arabia, Uzbekistan and Yemen - all of which are on the list.

John Sackton, Editor And Publisher , Lexington, Massachusetts 

Seafood.com News 1-781-861-1441 

Email comments to jsackton@seafood.com

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