Frozen tilapia market continues to weaken on smaller sizes amid lackluster buying interest
There is a disconnect in the tilapia market as a lack of buying interest has been met with reports indicating an oversupply of smaller sized fillets. Retail demand for 3-5 oz tilapia appears to have stoked a large increase in Chinese production for the smaller fillet. However, demand is strong for limited supplies of larger sized 7-9 oz fillets. Prices for 3-5 oz fillets have come down, which has shrunk the spread between tilapia and pangasius that had grown to over $1.00 per pound. This declining market for smaller sized tilapia has buyers backing off at a time when Lent orders are placed, fearing they may miss a market bottom.
A recent agreement between Japan and Russia to curb IUU crab sold into the Japanese market has retailers and traders panicking that prices are going to rise sharply. Wholesale prices have reportedly doubled in certain areas with Russian imports expected to fall with the IUU treaty in place.
In other news Minnesota’s Attorney General Lori Swanson told the Federal Trade Commission that the proposed Sysco and US Foods deal will destroy foodservice competition even with a clause to force the distributors to sell off some of their assets. "It is questionable whether any amount of divestiture can recreate the loss of US Foods as a strong competitor in the broadline food distribution market," she wrote in the letter.
Meanwhile, Canadian lobster sales in China are soaring with consumers widely discussing how they differ from the standard Crayfish or Australian Lobster. In most cases, live Canadian lobsters are lower priced than Australian product and consumers are responding. There are now over 200 online stores selling Canadian lobster. According to John Sackton there is every indication that consumption is reaching a critical mass that will have widespread and longterm ramifications for the North American lobster supply chain.
We have updated our video playlist with the third edition of a series about The Global Seafood Sustainability Initiative. This time we look at with how the GSSI can help eliminate trade barriers.
Finally, it looks like McDonald’s will cut back on its Quarter Pounder, Premium Chicken and Snack Wrap items as part of an effort to trim its menu. "Our intent is to have a cleaner menu board that is easier for customers to absorb," said McDonald’s spokeswomen Lisa McComb. "We'll be clearing the path for future menu innovations."
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