Top Story: Sysco working with FTC to try and save US Foods Merger 

Sysco is working hard with the FTC to try and save its merger with US Foods. But some analysts say it will have a hard time divesting routes or customers in a way that would satisfy some of the FTC concerns. The reason is that there are few long term contracts, and most deliveries are at will, meaning Sysco has nothing to give up. Sysco says the new company would have 15,000 competitors, but it is unclear if the FTC will allow the deal to go through. Their decision is expected by Oct. 31st. 

Retail momentum after two good years of lobster sales may be one reason lobster prices are higher than they have been for several years. Retail promotions of lobster over the summer (July, Aug, Sept.) were up 53% across the US, while landings appear to have declined. The result has led to a 18% price hike on average, that is being passed along at retail. 

The halibut charter issue is still before the N. Pacific Council, with the charter groups proposing a new mechanism to purchase quota from commercial users. Currently charter boats can buy from individual quota holders, but the new rules being studied by the council would set up a “pool’ of IFQ which halibut charters could draw on. There is a lot of suspicion that if this were in place, would the charter fleet actually pay for it- or would they simply lobby for a reallocation. 

The China Fisheries and Seafood Expo is coming up in November, and is now the 2nd largest seafood show in the world. Sea Fare expositions reports the show is sold out, even with a new hall and more individual country pavilions. 25,000 visitors are expected next month in Qingdao. 

Ecuador’s shrimp production is continuing at record levels, and its sales to China (both directly and through Vietnam) are now about equal to sales to the US and Europe. Total value for the year may approach $2.8 billion, compared to $1.8 billion last year.

John Sackton, Editor And Publisher , Lexington, Massachusetts 

Seafood.com News 1-781-861-1441 

Email comments to jsackton@seafood.com

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