THE BORNSTEIN REPORT March 2017

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1 Dungeness Crab: Cancer Magister The Oregon Dungeness Crab season officially opened January 1 and the South West Washington season opened January 7 th. Boats did not drop gear until price negotiations were agreed upon between processors and fishermen. The first crab landings weren t until around the 8 th of January. Landings data for January/February for Oregon is up 49% over The Washington and California landings have not been posted yet. As reported last month, the crab season, once opened, began with a bang as landings overwhelmed some coastal processing capacities the first few weeks. Despite the volumes, the quality and meat fill of the crab was good. Retail Sections: Many processors cooked and packed retail crab sections because the process is more efficient and increases throughput. As such, first production was sold into the section market at a good value, but volumes of crab have moved through the system and markets are beginning to solidify. Landings have dropped off substantially and many boats have either gone on to other fisheries or reduced efforts by reducing the number of pots they are fishing. The live Dungeness market has been of little consequence so far, this year, partly due to the domoic acid concerns in late 2016 and early January, which was an overreaction by any standard. There was a slight increase in boat prices in the past couple weeks but overall, they have remained stable. A reminder that the Snow Crab quota has been slashed by 47% in Alaska for the season, following a reduction of 40% from the season. Processors presold most of their pack to Japan at higher prices than Dungeness sections have been selling for. The Eastern Canadian Snow Crab (opilio) quota has not yet been set, but initial biomass indicates an improvement bringing high hopes, after several years of declining landing. The Canadian season opens in April. Market Predictions - There was a strong demand and sales of retail sections early as a defense against higher snow crab prices and prior to the Eastern Canadian opening in April. - Crabmeat prices have moderated slightly compared to the past few years and will open doors for increased business. - Bornstein Seafood processes fresh crabmeat year around. Ask your sales representatives for details. - Frozen Whole cooks could be in short supply for many of the reasons detailed in this report. Prices are expected to remain strong. - Season will wind down over the next few weeks limiting fresh Whole cooks. 1 P a g e

2 Bornstein HACCP and QA plan, assures you that all crab we buy, process and sell is 100% safe for consumption. Whole cooks LB LB LB LB Product Offerings Retail Sections Bornstein Seafoods Brand Premium Crabmeat - Traditional 5 LB Can - 1 LB Retail Ready Tamperproof Tub - 5 oz. Retail Ready Tamperproof Tub - 1 LB Vac Pack Pacific Cold Water Shrimp Meat: Pandalus Jordani (OR, WA, CA) The Coldwater Shrimp season is gaining momentum after a rocky The Oregon Trawl Commission hired John Sackton to give a market report and forecast for the 2017 Jordani fishery. Right now, he s scheduled to give report mid-march before the traditional opening of the season April 1. We expect lots of discussion at the Boston Seafood Show/ SENA. Coldwater shrimp have made the news. Undercurrents news is reporting, The big story is area six where the inshore fleet in Newfoundland and Labrador are totally reliant. The TAC [total allowable catch] in area six has dropped from 48,000t in 2015 to 28,000t in 2016, and likely to 10-12,000t in Jordani has more positive outlook from the Oregon Pink shrimp report forecasting a solid year two recruitment meaning bigger shrimp than last year. Ocean continue to be El Nino neutral which gives shrimp larva the best chance of maturing into legal size. *Includes: Washington, Oregon, California and off shore harvest. Reported landings as of this report MT Landed 2016 MT Landed Variance % * ,662.8 (24,153.3) (52%) All our Oregon harvested shrimp is Marine Stewardship Council (MSC) certified sustainable. 2 P a g e

3 Canadian (British Columbia): No update to the Canadian fishery. If it opens, it will be limited volume this summer and is not forecasted to impact the global Coldwater supply. Bornstein Seafoods offers IQF Shrimp Meat year around IQF 5 LB, 2 LB and 1 LB retail Recap: - US West Coast Shrimp Season reopens April BC fishery closed until next April. Availability: Bornstein brand all sizes of shrimp. Limited 300/400 count. Some good opportunities for our value non-branded 350/500. Wild Salmon: Oncorhynchus sp. All wild salmon seasons are now closed for the year, Product Offerings Fillets and portions: King Salmon, Sockeye and Keta. H&G: King, Sockeye and Keta (limited) Premium Smoked Salmon: King, Sockeye and Keta Ask for details. Salmon Recap King, Sockeye and Keta dressed, fillets or portions available. All wild seasons are closed until Columbia River Spring Chinooks. Columbia River: The Spring Chinook (King) season traditionally opens in late February or early March. Recent data reveals that last year s forecast and actual Spring run were less than expected. The 2017 forecast is higher than 2016 actuals but lower than last year s forecast. Fall Chinook: The 2016 catch was about two-thirds of the forecast outlook could be affected by Ocean Conditions off the coast of Oregon and Washington with potential lower runs. West Coast Ground Fish: USA West Coast ground fish is MSC certified sustainable. February landings of ground fish were off and on through the month due to weather. Weather will continue to be a challenge for a few more months but we have some tough fishermen. Expect strong availability of fresh Petrale and Dover. Petrale Sole: This is the time of year for Petrale as it schools and boats target them. Expect landings of Petrale to remain strong through much of the winter months. Great opportunities for ad placements and frozen fillets. 3 P a g e

4 Dover Sole: Landings of Dover Sole should remain strong over the next month Rockfish: As reported previously, the 2017 widow rock quota will increase over 800%. The fishermen and markets are preparing for greater opportunities for fresh and frozen Rockfish. The challenge will be that boats will not be allowed to begin midwater fishing until May 15. We are preparing for these opportunities and will keep you advised. Ground Fish Recap: Several 2017 Rockfish quotas will increase substantially. Healthy stocks of ground fish species will bring greater opportunities in 2017, both fresh and frozen offerings. Fresh fish available weekly with weather cooperation. Expect Dover and Petrale Sole availability to remain good throughout the next month. Albacore Tuna: Thunnus alalunga. Demand is still strong for North Pacific Premium Sashimi Frozen at Sea tuna loins. Availability of supply has increased. This year s high price has caused some lower quality tuna markets to source product coming from the south pacific. While price may be lower for this fish, it s worth noting there are differences in Tuna Recap: North Pacific Albacore Tuna season is over for Next season June All Bornstein Sashimi Grade Tuna Loins are MSC certified, harvested and processed in the USA. The North Pacific Cold Water Albacore Tuna loin market will remain strong as demand has outstripped resource Difference 11,278.9 MT 10,218.6MT (1,060.3 MT) flavor and omega-3 oil content. There is no substitution for North Pacific Albacore in sushi and sashimi markets where mouth feel is key to the consumer s experience. March is the start of Albacore industry meetings. We re looking forward to news about scientific research and an update on ocean currents specific to this highly migratory species. Bornstein Seafood offers the best Albacore Sashimi Tuna Loins on the Market. Hake (Whiting): Merluccius productus: In the recent Joint Management Committee (JMC) meeting in Seattle the U.S. and Canadian Advisory panel negotiated an increase for the 2017 total allowable catch (TAC) for Pacific Hake in This was determined by the positive stock assessment showing the highest population of Whiting since the 80 s. TAC increased the 2017 quota by 100,000 MT 4 P a g e

5 over 2016 to a 597,000 MT quota. This increase was driven by strong stock assessments for 2010 and 2014 year classes. The unanswered question will be, what size the fish will be. While 2016 stock assessments were also strong the size of the fish hampered fishermen and processors from catching and processing the volume of fish expected. The quotas are expected to be finalized before March 15 th after NMFS works with tribal entities and consult with the Pacific Management Council. Given the enormity of our coastlines, given the enormity of our freshwater, I would like to try to figure out how we can become much more self-sufficient in fishing and perhaps even a net exporter*. newly appointed US Secretary of Commerce Wilbur L. Ross, Jr. * (2016 seafood trade deficit was $11 billion) 5 P a g e

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