Íslandsbanki Seafood Research May North America Seafood Market Report

Transcription

1 Íslandsbanki Seafood Research May 2014 North America Seafood Market Report

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3 North America Seafood Market Report 3 Foreword Key Highlights Dear reader, Íslandsbanki provides comprehensive financial services to individuals, corporations and institutional investors. Íslandsbanki and its predecessors have worked closely with the seafood industry for over a century, financing the first Icelandic motorised trawler in The Bank started its international operations in 1999 by providing financing solutions to the fishery sector on the east coast of Canada. In addition to providing customized services to the seafood industry, Íslandsbanki has published research reports on various markets and species since Through these reports, we strive to provide insights into the key trends and issues affecting the industry. It is a pleasure to present this Seafood Market Report on the United States and Canadian seafood markets. For further information about Íslandsbanki s seafood industry services, and prior research reports, please visit our website at The Íslandsbanki Seafood Industry Team With total production of 4.2 million MT, the United States is the third largest fishing country in the world and one of the most important consumer markets for seafood. Canada produces approximately 800,000 MT annually and is the ninth largest seafood exporting country. Alaska pollock is the most important U.S. species by volume, representing 31% of total landings. Crab is the highest value species. The Canadian seafood industry is concentrated in the Maritime Provinces. Coldwater shrimp and herring are the highest volume species while lobster is the most important species by value. Canadian aquaculture is growing rapidly. Canada is the fourth largest producer of farmed salmon, behind Norway, Chile and Scotland.

4 North America Seafood Market Report 4 Íslandsbanki Íslandsbanki is a universal bank in Iceland with total assets of EUR 5.6 billion. A leader in financial services in Iceland, Íslandsbanki has a 25-50% market share across all domestic business areas, including Retail Banking, Corporate Banking, Capital Markets and wealth management. Building on over 135 years of servicing key industries in Iceland, the Bank has developed specific expertise in the Seafood, Energy and Offshore Service Vessel industries domestically and within the North Atlantic region. Íslandsbanki ranked first among financials in the Icelandic Customer Satisfaction Index and was voted Best Bank in Iceland by Euromoney. As of December 31, 2013, seafood accounted for approximately 21% of the Bank s commercial loan portfolio, underscoring the importance of the sector to the Bank. Íslandsbanki s Commercial Loan Portfolio by Industry 6% 8% 25% Commerce & services 14% Real Estate Seafood 21% 25% Industrial & transportation Construction Other Source: Íslandsbanki

5 North America Seafood Market Report 5 Seafood Industry Team Íslandsbanki employs an experienced team of bankers who focus on the Seafood Industry. The team is part of the Corporate Banking unit, providing innovative services to domestic and foreign seafood companies, as well as publishing well regarded industry reports. Seafood Team Members Over the years, many leading seafood companies in Iceland and abroad have been customers of the Bank. Íslandsbanki team members have participated in several of the industry s benchmark transactions. Vilhelm Mar Thorsteinsson Managing Director Corporate Banking Runar Jonsson Executive Director Seafood Timothy H. Spanos Executive Director International Lending Ragnar Gudjonsson Business Manager Seafood Olafur Hrafn Olafsson Credit Manager Seafood Linda G. Lyngmo Project Manager Seafood Elvar Orri Hreinsson Analyst Seafood

6 North America Seafood Market Report 6 Table of Contents The Global Seafood Industry 08. Global Seafood Market 09. Global Seafood Production 11. Major Commercial Fisheries 12. Marine Capture Production 14. Global Trade 15. Global Seafood Consumption The United States Seafood Industry 18. State of the Resource in the U.S. 21. U.S. Main Fishing Areas 22. U.S. Seafood Production 28. U.S. Seafood Trade 34. U.S. Aquaculture 37. U.S. Consumption The Canadian Seafood Industry 40. Canada s Major Fishing Areas 41. State of the Resource in Canada 44. Canadian Seafood Production 50. Canadian Seafood Trade 56. Canadian Aquaculture 59. Canadian Consumption

7 North America Seafood Market Report 7 The Global Seafood Industry

8 8 North America Seafood Market Report Global Seafood Market Fish and other seafood products are an important source of protein. According to the Food and Agricultural Organization of the United Nations (FAO), seafood accounted for 16.6% of the world population s intake of animal protein in Seafood supply grew at an average rate of 3.2% per year during the period from , outpacing the average growth rate in the world population of 1.7% p.a. Increasing demand for seafood has been driven by growth in the world population and increasing per capita consumption, reflecting a shift to healthier eating choices and rising income levels in developing countries. Compared to other sources of animal protein, the Seafood industry is extremely diverse. There are almost 2,000 species in FAO s capture production database with many different types of species and pro ducts being produced to meet consumer demands which vary based on regional preferences, income levels, supply, distribution infra structure and other factors. Although there has been a recent trend towards consolidation, the Seafood industry remains highly fragmented. Source: FAO

9 North America Seafood Market Report 9 Global Seafood Production Total global production of seafood was relatively stable in According to FAO, total production increased by 0.5% from million metric tons (MT) in 2011 to million MT in 2012, following a 5.0% increase in According to the OECD-FAO Outlook, global seafood production is projected to increase by 3.1% to million MT in Total production is expected to continue to rise in subsequent periods, reaching 181 million MT by Global Seafood Production Million MT Billion Wild Caught Aquaculture Population (r.axis) Source: FAO; OECD-FAO

10 10 North America Seafood Market Report Global Seafood Production The volume of fish harvested in wild fisheries has stabilized at approxi - mately 90 million MT while aquaculture production has steadily increased. In the last ten years, aquaculture production has grown at an average annual rate of approximately 6.1% and is expected to surpass wild caught seafood as the main source for human consumption by Wild caught seafood accounted for 58% of total production in 2012 compared to approximately 70% in the early 2000s. The majority of wild caught seafood is harvested in marine fisheries. The volume of fish caught in inland waters has been increasing, reaching a record 11.6 million MT in 2012, but represents less than 15% of total capture production. In contrast, aquaculture production is concentrated in inland waters which account for roughly 70% of total aquaculture production. There has been an increasing trend in the proportion of seafood production used for direct human consumption. In 2011, approximately 85% of total production was for direct human consumption with the remaining 15% used for non-food purposes, including the production of fishmeal and fish oil. Global Seafood Production (Million MT) Wild Caught Inland Marine Aquaculture Inland Marine Total Global Fisheries Source: FAO; OECD-FAO

11 North America Seafood Market Report 11 Major Commercial Fisheries The chart below provides an overview of major commercial fisheries: Global Seafood Production 157 million MT Wild Caught 58% Aquaculture 42% Marine 51% Freshwater 7% Marine 13% Freshwater 29% Groundfish Fish Pelagics Tuna Crustaceans Shellfish Molluscs Salmon Shrimp Oysters Mussels Clams Carp Tilapia Catfish Pangaius Pollock Cod Flatfish Haddock Anchoveta Sardines Herring Mackerel Capelin Menhaden Skipjack Yellowfin Bigeye Albacore Bluefin Shrimp Crap Lobster Squid Scallops Clams Oysters Source: FAO; Íslandsbanki

12 12 North America Seafood Market Report Marine Capture Production The volume of fish harvested in marine waters decreased by 3.5% from 82.6 million MT in 2011 to 79.7 million MT in 2012 primarily due to a decline in the anchoveta catch. Anchoveta is the highest volume species harvested in marine fisheries. The anchoveta fishery is highly variable with catch rates impacted by water temperature (El Niño and La Niña) and changes in the fishery management regime during the past ten years. The anchoveta catch fell by 43% from 8.3 million MT in 2011 to 4.7 million MT in Excluding anchoveta catches, marine capture production reached a recent high of 75.0 million MT in After anchoveta, the next highest volume species in marine capture fisheries is Alaska pollock. The top fifteen species accounted for approximately one-third of marine capture fisheries production in Major Species for Marine Capture, 2012 (Million MT) Anchoveta Alaska Pollock Skipjack Tuna Sardinella, nei Atlantic Herring Chub Mackerel Scads, nei Yellowfin Tuna Japanese Anchovy Largehead Hairtail Atlantic Cod Source: FAO; OECD-FAO

13 North America Seafood Market Report 13 Marine Capture Production China is the world s largest seafood producer with total production of 57.3 million MT in With marine capture production of approximately 13.9 million MT, China accounted for 17% of total marine capture production in The next five largest countries by volume are Indonesia, the United States, Peru, Russia and Japan. Together, these countries accounted for approximately 42% of the total volume harvested in marine fisheries. The fifteen largest fishing nations produced 71% of the global marine catch. More than half of the total marine catch was harvested in the Pacific Ocean. Marine Capture Production, Largest Producing Countries, in Addition to Canada (Million MT) Major Fishing Areas for Marine Capture Production, % 2% Pacific Ocean Atlantic Ocean China Indonesia USA Peru Russia Japan India Chile Vietnam Myanmar Norway Philippines Korea Thailand Malaysia Canada 24% 59% Indian Ocean Other Source: FAO; OECD-FAO

14 14 North America Seafood Market Report Global Trade Fish and seafood products are among the most traded food commodities worldwide, with trade volumes and values reaching new highs in The seafood supply chain is complex, as fish products often cross national borders several times before final consumption, due to the outsourcing of processing to comparatively low wage countries such as China, India, Indonesia, Thailand and Vietnam. In addition to being an important source of protein, the fishery and aquaculture sector provides livelihoods and income, both directly and indirectly, for a significant share of the world s population. Trade volumes and values are expected to continue to rise with developing countries accounting for the bulk of world exports. The total value of seafood production was approximately $217.5 billion 1 in 2010, with an estimated $119.4 billion of fish food production attributable to aquaculture. Top Ten Importers of Fish and Fisheries Products in Addition to Canada, 2011 (USD billions) Top Ten Exporters of Fish and Fisheries Products, 2011 (USD billions) Japan USA China Spain France Italy Germany UK Korea Sweden Canada 2.7 China Norway Thailand 6.3 Vietnam 5.9 USA Chile Denmark Spain Canada Netherlands 1 Currency amounts are in USD unless otherwise noted Source: FAO; OECD-FAO

15 North America Seafood Market Report 15 Global Seafood Consumption Per capita consumption of seafood has increased steadily since the 1960s, reaching an estimated 19.0 kg in However, consumption varies widely among regions and countries, reflecting differences in the availability of fish and other foods, traditions, income levels and other factors. Asia accounts for approximately two-thirds of total consumption with 85.4 million MT in China accounted for half of this number with total consumption of 42.6 million MT or approximately 31.9 kg per capita (per capita consumption in the rest of Asia averaged approximately 15.4 kg). China has been responsible for most of the increase in per capita fish consumption, owing to a substantial increase in fish production, in particular from aquaculture. According to the OECD-FAO Outlook, total consumption is expected to increase from approximately 131 million MT in 2011 to 161 million MT in However, the rate of growth is expected to decline, due to slowing population growth and higher fish prices relative to red meats. Per capita fish consumption is projected to rise on all continents except Africa, where population growth will outstrip supply. The highest growth rates are expected in Asia while many developed countries are expected to show little to no growth. Average Consumption of Seafood Products (kg per capita, per year) World Europe Africa Asia Americas Source: FAO; OECD-FAO

16 16 North America Seafood Market Report Global Seafood Consumption Despite a rapid rise in the consumption of poultry, and to a lesser extent pork, average per capita consumption of seafood exceeds that of other animal proteins on a global basis. Annual per capita consumption of poultry increased by 140% from 5.5 kg in 1994 to 13.2 kg in Over this same period, pork consumption grew by 54% while seafood consumption grew at a slower rate of 38%. Per capita consumption of seafood is projected to grow by 7.3% during the period from , which trails only poultry at 9.8%. Annual Animal Protein Consumption (kg per capita) Seafood Poultry Pork Red meat Source: FAO; OECD-FAO

17 North America Seafood Market Report 17 The United States Seafood Industry

18 18 North America Seafood Market Report State of the Resource in the U.S. The Magnuson-Stevens Act is the primary law governing marine fisheries in U.S. federal waters. Enacted in 1976, the Act established eight Regional Fishery Management Councils, which serve as the front line of fisheries management where region specific management measures (such as fishing seasons, quotas and closed areas) are initiated, developed and ultimately adopted in a fully transparent and public process. Under the Act, councils are required to: Develop and amend fishery management plans Convene committees and advisory panels and conduct public meetings Develop research priorities in conjunction with a Scientific and Statistical Committee Select fishery management options Set annual catch limits based on best available science Develop and implement rebuilding plans Source: NOAA Fisheries

19 North America Seafood Market Report 19 State of the Resource in the U.S. Crab U. S. commercial fishermen harvest several different species of crab. As a group crab, is the most valuable species in the United States. There are different fishery management regimes in place for the various species of crab. As an example, the Alaska snow crab fishery is managed according to size, sex and season. Only male crabs of a certain size may be harvested and fishing is not allowed during mating and molting periods. Every year, managers set the harvest, limit for the next fishing season using the most recent estimates of crab abundance. Pollock Alaska pollock is the most landed species in the U.S. with total volume of 1.3 million MT in The two primary global pollock resources are the U.S. Bering Sea fishery and the Russian fishery in the sea of Okhotsk. For more than 30 years, the U.S. has maintained safe harvest levels for Alaska pollock, and the U.S. Bering Sea pollock fishery is now the largest whitefish fishery in the world. In 2005, the Marine Stewardship Council (MSC) completed a comprehensive four-year review of the U.S. Bering Sea pollock fishery and concluded that the fishery met MSC criteria for a responsible and sustainably managed fishery. The total allowable catch for the U.S. Bering Sea pollock fishery has averaged 1,244,000 MT annually for the 20-year period ending in The TAC for 2013 was 1,259,000 MT, a 3.9% increase from Salmon Pacific salmon is harvested in fisheries operating along North America s West Coast, from Alaska to California. Commercial fisheries for salmon are among of the most valuable fisheries in the United States, second only to crab. In the U.S., the Pacific salmon is managed by the Pacific and North Pacific Fishery Management Councils and the Alaska Department of Fish and Game. In Alaska, management of salmon fisheries in federal waters is deferred to the State. Salmon fishery management largely relies on in-season assessment of how many salmon return to freshwater to spawn. Commercial fishing for Atlantic salmon is currently prohibited by law. Only farm-raised Atlantic salmon can be found in the market. Source: NOAA Fisheries

20 20 North America Seafood Market Report State of the Resource in the U.S. Scallop Atlantic sea scallop is the most important scallop species in the U.S. In the early 1990s, the fishery for Atlantic sea scallops in the northeastern U.S. was not sustainable the population was near record lows and fishing was at a record high. Today, the Atlantic sea scallop population is near record highs and the fishery operates at sustainable levels. The Atlantic sea scallop fishery is now not only one of our most valuable fisheries but also the most valuable wild scallop fishery in the world. U.S. commercial fishermen harvest sea scallops year round, primarily using New Bedford scallop dredges. Managers determine a total allowable catch for the scallop fishery based on estimates of the scallop population. They allocate this catch amount to different groups of the fishery, depending on their permit type and historical catch, through days-at-sea and number of trips to special access areas. Shrimp The most important shrimp species harvested in the U.S. are brown shrimp and white shrimp. Shrimp are essentially an annual crop most shrimp do not survive longer than 2 years. Although scientists monitor shrimp abundance to ensure the stock is healthy, it s not an important of a consideration for fishery managers as with other seafood species. Instead, managers consider historic harvest amounts and fishing rates in developing a management strategy for the fishery. They also look at the amount of surviving parents and environmental conditions, such as weather and water temperatures. As long as environmental conditions are favorable, shrimp are very productive and can rebound from low abundance one year to high abundance the next. Source: NOAA Fisheries

21 North America Seafood Market Report 21 U.S. Main Fishing Areas North Pacific New England The Pacific Coast is the largest U.S. fishery by volume with approximately 70% of total U.S. landings. The largest species by volume caught off the U.S. Pacific coast is Alaska pollock, which represents 31% of total U.S. landings. While the fisheries off the U.S. Atlantic coast are smaller when measured by volume (accounting for 16% of total landings), they generally consist of higher value species such as crab and scallop. Pacific Gulf of Mexico Mid- Atlantic South Atlantic Caribbean Pacific Ocean Major Fishing States: Alaska, California, Oregon, Washington, Hawaii Total Landings: Volume: 2.9 million MT Value: $2.5 billion Main Species: Pollock, cod, Pacific salmon, hake and crab Gulf of Mexico Major Fishing States: Louisiana, Mississippi, Texas, Florida (West Coast), Alabama Total Landings: Volume: 590,000 MT Value: $760 million Main Species: Menhaden, shrimp, crab and oyster Atlantic Ocean Major Fishing States: Virginia, Massachusetts, Maine, New Jersey, Rhode Island, Maryland Total Landings: Volume: 691,000 MT Value: $1.9 billion Main Species: Menhaden, Atlantic herring, lobster, crab and scallop Source: NOAA Fisheries

22 22 North America Seafood Market Report U.S. Seafood Production

23 North America Seafood Market Report 23 U.S. Seafood Production Volume The U.S. was the third largest fishing country in the world by volume in 2012 and one of the most important markets for seafood. During the past 20 years, total commercial landings averaged approximately 4.2 million MT. In , total volume rebounded off the low reached in 2009, primarily due to an increase in the pollock catch. In 2012, total landings were 4.2 million MT, in line with the long term average. This represented a decrease of 6% compared to 2011 when total landings were at the highest level since Pollock is the highest volume species with total landings of 1.3 million MT in 2012, followed by menhaden (639,700 MT) and cod (330,500 MT). These three species accounted for 54% of total landings in Commercial Fisheries Production by Species (Thousand MT) Commercial Fisheries Production, 2012 by Species 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Pollock Menhaden Cod Salmon Sole Hake Other 4% 29% 6% 7% 8% 15% 31% Pollock Menhaden Cod Salmon Sole Hake Other Source: NOAA Fisheries

24 24 North America Seafood Market Report U.S. Seafood Production Value The total value of U.S. landings has generally been increasing since During this period, the total value rose by 61% from approximately $3.2 billion to $5.1 billion. In 2012, the total value decreased by 4.5% from 2011, roughly in line with the volume decrease. Commercial Fisheries Production by Species (USD millions) Crab 683 The highest value species consist primarily of shellfish species, including crab, scallop, shrimp and lobster. Together, these species accounted for 44% of the total value. Salmon was the most valuable finfish species. Scallop Shrimp Commercial Fisheries Production by Species (USD millions) Salmon 489 7,000 6,000 5,000 4,000 3,000 2,000 1, Crab Pollock Scallop Shrimp Salmon Cod Halibut Other Lobster Lobster Pollock Cod Halibut Source: NOAA Fisheries

25 North America Seafood Market Report 25 U.S. Seafood Production Value per MT The charts below depicts the development in the price of the major shellfish and finfish species from The average price per MT of scallop increased by 49% over this period (from $14,568 to $21,640) while the average price of lobster decreased by 36% (from $10,383 to $6,654). The average price per MT of salmon increased by 79% (from $949 to $1,696). The average price per MT of cod has stabilized following a sharp decrease in Price Development of Major Shellfish Species (USD per MT) Price Development of Major Finfish Species (USD per MT) 25,000 20,000 15,000 10,000 5, ,640 6,654 4,069 3, ,000 1,800 1,600 1, , Scallop Lobster Crab Shrimp Salmon Cod Pollock Menhaden Source: NOAA Fisheries

26 26 North America Seafood Market Report U.S. Seafood Production Landings by State Alaska continued to lead all U.S. states in both volume and value with total landings of 2.4 million MT valued at $1.7 billion. Pollock and cod accounted for 67% of total landings in Alaska, but only 31% of value. Salmon was the most valuable species landed in Alaska with 26% of the total value despite accounting for just 11% total volume. Massachusetts ranked fifth in terms of volume with 3.2% of total landings, but was the second most important state in terms of value, reflecting the importance of the scallop fishery. Maine ranked third in terms of total value, as it led the country in Lobster landings for the 31st consecutive year with 82% of the total. Lobster accounted for almost half of Maine s commercial fishery landings. State Thousand MT % State USD millions % Commercial Fisheries Producton, 2012 by Volume (Thousand MT) Alaska Louisiana Virginia California Massachusetts Commercial Fisheries Producton, 2012 by Value (USD millions) 2,424 Alaska 2, % Alaska 1, % Alaska 1,692 Louisiana Virginia % 5.0% Massachusetts Maine % 8.8% Massachusetts 618 California % Louisiana % Maine 449 Massachusetts Other Total , % 21.2% 100% Washington Other Total 276 1,752 5, % 34.4% 100% Louisiana Washington Source: NOAA Fisheries

27 North America Seafood Market Report 27 U.S. Seafood Production Landings by Ports Dutch Harbor, Alaska led the nation as the port with the highest volume of commercial seafood landings for the 15th consecutive year. New Bedford, Massachusetts was the leading U.S. port in terms of value for 12th year in a row. Four of the top ten U.S. ports in terms of volume and five of the top ten ports in terms of value were located in Alaska, highlighting the importance of the industry to the State s economy. Top 10 Ports Thousand MT % Top 10 Ports USD millions % Dutch Harbor, AK % New Bedford, MA % Empire-Venice, LA % Dutch Harbor, AK % Aleutian Islands (Other), AK % Kodiak, AK % Kodiak, AK % Aleutian Islands (Other), AK % Reedville, VA % Honolulu, HI % Intracoastal City, LA % Alaska Penninsula (Other), AK % Pascagoula-Moss Point, MS % Empire-Venice, LA % Cameron, LA % Bristol Bay (Other), AK % Alaska Penninsula (Other), AK % Naknek, AK % Astoria, OR % Galveston, TX % Total 1, % Total 1, % Source: NOAA Fisheries

28 28 North America Seafood Market Report U.S. Seafood Trade The United States Seafood Industry

29 North America Seafood Market Report 29 U.S. Seafood Trade Balance The U.S. is the fifth largest exporting country and the second largest importer of seafood. The U.S. imports around 90% of its seafood. Total seafood imports increased by 27% from $13.3 billion in 2009 to $16.9 billion in 2011 and have remained relatively stable since then. Total exports rose by 38% from $4.0 billion in 2009 to $5.5 billion in 2011 and remained relative constant in subsequent periods. The country s annual seafood trade deficit can be seen in the following figure. U.S. Trade Balance in Edible Fishery Products USD billions (5) (10) (15) Total Imports Total Exports Trade Balance (Export - Import) Source: NOAA Fisheries

30 30 North America Seafood Market Report U.S. Seafood Exports China has been the largest export destination with approximately 25% of the total export value in Since 2010, exports to China have increased by 59% from $912 million in 2010 to $1.4 billion in The three largest export destinations, China, Canada and Japan, account for 56% of the total export value. Export Destinations (USD millions) Export Destination, 2013 by Value 1,600 1,400 1,200 1, China Canada Japan South Korea Germany Netherlands France % 3% 6% 25% 8% 13% 25% 17% China Canada Japan South Korea Germany Netherlands France Other Source: NOAA Fisheries

31 North America Seafood Market Report 31 U.S. Seafood Exports Salmon is the most valuable export species. The total value of salmon exports was in excess of $1 billion and accounted for approximately 19% of the total value of seafood exports in Pollock is the second most important export species followed by lobster. The increase in total export value from was primarily due to increases in salmon, pollock (due in part to an increase in the total allowable catch during this period) and lobster. Exports by Species (USD millions) Exports, 2013 by Species and Value 6,000 5,000 4,000 2,000 1,000 36% 19% 11% Salmon Pollock Lobster Surimi Cod Crab Salmon Pollock Lobster Surimi Cod Crab Flatfish Scallops Other 3% 4% 5% 5% 7% 10% Flatfish Scallops Other Source: NOAA Fisheries

32 32 North America Seafood Market Report U.S. Seafood Imports China, Canada, Thailand and Indonesia accounted for 48% of the total import value in Since 2010, imports from India have almost tripled while imports from Chile have more than doubled. Imports from Thailand fell 25% during this period. Imports by Country (USD millions) Imports, 2013 by Country and Value 3,500 3,000 2,500 2,000 1,500 1, China Canada Thailand Indonesia Vietnam Chile Ecuador India 5% 26% 6% 7% 8% 16% 8% 9% 15% China Canada Thailand Chile Indonesia Vietnam India Equador Other Source: NOAA Fisheries

33 North America Seafood Market Report 33 U.S. Seafood Imports Shrimp is the most important import species. In 2013, the value of shrimp imported into the U.S. was $4.7 billion, which represented 28% of total seafood imports of $16.6 billion. The value of imported salmon increased 27% from $1.82 billion in 2010 to $2.32 billion in 2013 and accounted for 14% of total imports in Imports by Species (USD millions) Imports, 2013 by Species 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2, Shrimp Salmon Tuna Crab Lobster Tilapia Scallops Cod Other 2% 2% 6% 25% 6% 8% 9% 28% 14% Shrimp Salmon Tuna Crab Lobster Tilapia Scallops Cod Other Source: NOAA Fisheries

34 34 North America Seafood Market Report U.S. Aquaculture

35 North America Seafood Market Report 35 U.S. Aquaculture Aquaculture volume peaked in 2004, with total production of 607,570 MT. Since 2004, aquaculture production has declined by 31%. The volume for 2012 was 420,024 MT, an increase of 6% from Despite the decrease in volume since 2004, the value of aquaculture production has been growing steadily for the past two decades, peaking in 2011 with a total value of roughly $1.1 billion. In 2012, the value declined by 9% to $1.0 billion. Aquaculture Production 700 1,200 Thousand MT , USD thousands Volume Value (r.axis) Source: FAO

36 36 North America Seafood Market Report U.S. Aquaculture Channel catfish is the largest U.S. aquaculture species by volume followed by American cupped oyster. These two species accounted for 61% of 2012 production volume. Channel catfish was also the highest value species, accounting for 32% of the total value of U.S. aquaculture production. Aquaculture Production, 2012 by Species 15% Channel catfish Channel catfish 8% 7% 10% Volume 24% 37% American cupped oyster Red swamp crawfish Pacific cupped oyster Northern quahog (hard clam) Other 31% 6% 7% Value 8% 17% 32% Red swamp crawfish Atlantic salmon American cupped oyster Northern quahog (hard clam) Other Source: NOAA Fisheries

37 North America Seafood Market Report 37 U.S. Consumption

38 38 North America Seafood Market Report U.S. Consumption U.S. animal protein consumption peaked in 2004 and has declined in recent years due to a reduction in the consumption of red meat. During the past five years, per capita consumption fell by 9 % from 90.9 kg in 2007 to 82.3 kg in Consumption of seafood as a percentage of total animal protein consumption has been relatively stable at approximately 8%. compared to 33% for retail. Per capita seafood consumption fell by 10% in the last two years from 7.2 kg in 2010 to 6.5 kg in The largest product category is fresh and frozen fish and shellfish, which accounts for almost 75% of total consumption. In the U.S., most seafood is consumed away from the home. The food service segment represents approximately 66% of total seafood sales Annual Animal Protein Consumption (kg per person) Annual Seafood Consumption (kg per person) Red meat Pork Poultry Seafood Fresh and frozen Canned Cured Source: ERS/USDA; NMFS

39 North America Seafood Market Report 39 Canadian Seafood Industry

40 40 North America Seafood Market Report Canada s Main Fishing Areas The Canadian fisheries and aquaculture industry is concentrated on the Atlantic Coast. The Maritime Provinces of Newfoundland and Labrador (NFL), Nova Scotia, Prince Edward Island (PEI) and New Brunswick, accounted for 77% of total landings and 82% of the total value of Canada s commercial fisheries production in Atlantic Coast Provinces: Newfoundland & Labrador, Nova Scotia, Prince Edward Island, New Brunswick and Quebec Total Landings: Volume: 674,000 MT Value: CAD 1.9 billion Main Species: Shrimp, herring, snow crab, lobster, scallop and clams Aquaculture: Volume: 87,130 MT Value: CAD 406 million Pacific Coast Provinces: British Columbia Total Landings: Volume: 130,000 MT Value: CAD 213 million Main Species: Hake, salmon, halibut, clams and crab Aquaculture: Volume: 81,395 MT Value: CAD 400 million Inland Provinces: Ontario and Manitoba Total Landings: Volume: 29,000 MT Value: CAD 67 million Main Species: Ontario and Manitoba are the most important inland fisheries, comprising about 90% of total freshwater landings Aquaculture: Volume: 5,534 MT Value: CAD 28 million Source: Fisheries and Oceans Canada

41 North America Seafood Market Report 41 State of the Resource in Canada The Canadian seafood industry is highly regulated with resource management and capture (both wild and farmed) governed by policies set by both federal and provincial governments. The federal government has jurisdiction over the resource, from its natural habitat to the landing dock, and is also responsible for the following: Management and regulation of fishing licenses and leases Setting of quotas Approving the transfers of quotas Monitoring fishing gear and vessels Establishing fishing areas and seasons Handling (landing, loading, and transporting catches) Boating safety and surveillance in fishing areas Fish inspection and marketing standards Harvesting is governed by federal fish harvesting licenses and associated quotas are administered by the Department of Fisheries and Oceans (DFO). Quotas are rights granted by DFO to holders of a fish harvesting license to fish a certain volume of a specific species, either exclusively or in competition with other licensed parties. The DFO determines the total allowable catch (TAC) for each species based on scientific advice. Harvesting is regulated through a quota and enterprise allocation system. The provincial governments are responsible for land-based activities such as fish processing and issuing water lot leases for aquaculture operations. All fish processing plants in Canada require a combination of federal and provincial licenses to operate. Source: Agriculture and Agri-Food Canada

42 42 North America Seafood Market Report State of the Resource in Canada Lobster Lobster is Canada s most valuable seafood export and an iconic Canadian species exported around the world. There has been a general upward trend in landings in recent decades. In 2009, total landings were 56,554 MT; the second highest on record in the last 20 years. The lobster resource is managed through various measures including limits to the number of licences, trap limits, length of fishing seasons, number of fishing days, total allowable catch quotas (in the offshore lobster fishing area) and size restrictions. Shrimp Canada exports more coldwater shrimp than any other country in the world and shrimp is Canada s fourth most valuable seafood export. Canada s shrimp populations are healthy and sustainably managed and landings are above the average over the last 15 years. Annual fishing quotas are in line with scientific advice to maintain the future health of the populations. Fishery management measures include minimum trawl mesh size, specialized equipment to minimize bycatch, at sea and dockside monitoring and the use of closed areas. Scallop The sea scallop (giant scallop) is one of the most important commercial shellfish species in Canada. Management measures include entry limits, total allowable catch quotas for each fishing area, meat counts, vessel and dockside monitoring and industry-managed closures designed to protect juvenile scallops and increase yields. Source: Fisheries and Oceans Canada

43 North America Seafood Market Report 43 State of the Resource in Canada Snow Crab (Queen Crab) Canada is the world s largest producer of snow crab, accounting for about two-thirds of the global supply. Snow crab is the second most valuable Canadian fishery export product. There are approximately 60 Snow Crab Management Areas in Canada spanning four DFO regions. In 2010, 4,326 snow crab fishery licenses were issued. The management of the snow crab fishery is based on annual total allowable catch, quotas, effort controls, size limits, minimum mesh size of traps, fishing seasons, areas and soft-shelled (also known as white crab) protocols. Herring The herring fishery is the largest small pelagic fishery in eastern Canada with annual landings of 123,000 MT in Many different types of management tools have been applied to the herring fishery, including quotas, season and area closure during spawning periods and enhanced monitoring. Source: Fisheries and Oceans Canada

44 44 North America Seafood Market Report Canadian Seafood Production

45 North America Seafood Market Report 45 Canada Seafood Production Volume The total volume of commercial landings in marine waters has steadily declined during the past several years. During the past five years, total landings fell by 21% from 1.0 million MT in 2007 to 803,400 MT in Total landings decreased by 6.4% in 2012 following an 8.6% decrease in Commercial Fisheries Production by Species (Thousand MT) Coldwater shrimp and herring were the highest volume species in Together, these two species accounted for approximately one-third of total landings. Among the six highest volume species, herring and shrimp contributed the most to the decline in total landings during this period, falling by 56,000 MT and 39,000 MT, respectively. In contrast, lobster landings increased by 26,000 MT (53.0%) during this period. Commercial Fisheries Production, 2012 by Species 1, % 19% 15% Shrimp Herring Snow crab Lobster Hake Shrimp Herring Snow crab Lobster Hake Other 7% 7% 9% 12% Scallop Other Source: Fisheries and Ocean Canada

46 46 North America Seafood Market Report Canada Seafood Production Value Despite the decline in total landings, the value of Canada s commercial fisheries has recovered in the past two years, following steady declines from The total value increased by 1.0% to CAD 2.1 billion in 2012 following a 28.7% increase in The increase in total value in 2011 was primarily due to price increases for lobster and crab. The decline in value from reflects the strengthening of the CAD relative to the USD and other major currencies. Despite accounting for less than 10% of total landings, lobster is the most valuable species, representing 31% of total value in Crab and shrimp are the next most valuable species. Together, these three shellfish species accounted for approximately 68% of the total value of Canada s commercial fisheries. Commercial Fisheries Production by Species (CAD millions) 663 Commercial Fisheries Production by Species (CAD millions) 2,500 2,000 Lobster Snow Crab Shrimp ,500 1,000 Scallop Lobster Snow crab Shrimp Scallop Clams / Quahaug Halibut Other Clams/ Quahaug Halibut Source: Fisheries and Ocean Canada

47 North America Seafood Market Report 47 Canada Seafood Production Value per MT The chart below shows the development in the price of the six most valuable species from 2007 to The chart highlights the increase in the prices of lobster and crab since Price Development of Major Species (CAD per MT) 14,000 12,000 10, ,000 6,000 4,000 2, Halibut Lobster Snow crab Clams/Quahaug Shrimp Scallop Source: Fisheries and Ocean Canada

48 48 North America Seafood Market Report Canada Seafood Production Landings by Provinces The two most important Provinces in terms of volume and value are Newfoundland and Labrador and Nova Scotia. In 2012, NFL accounted for 34% of total landings and 30% of the value of Canada s commercial fisheries. Nova Scotia accounted for a higher proportion of the value due to its emphasis on higher value shellfish species. Located on the west coast of Canada, British Columbia is the third most important province, representing 16% of total landings and 10% of total value. Commercial Fisheries Production, 2012 by Province 9% 7% 4% Newfoundland & Labrador 7% 8% 34% Nova Scotia British Columbia 9% 36% Nova Scotia Newfoundland & Labrador British Columbia 16% Volume New Brunswick Quebec Prince Edward Island 10% Value New Brunswick Quebec Prince Edward Island 30% 30% Source: Fisheries and Ocean Canada

49 North America Seafood Market Report 49 Canada Seafood Production Landings by Provinces The tables below reflect the most important species in terms of total landings and value by province. Commercial Fisheries Production, 2012 by Volume Nova Scotia MT % Quebec MT % Scallop 48,708 21% Shrimp 18,742 33% Herring 46,612 20% Queen crab 13,528 24% Lobster 43,049 18% Herring 7,952 14% Other 97,834 41% Other 17,315 30% Total 236,203 Total 57,536 New Brunswick MT % NFL MT % Herring 25,467 34% Shrimp 102,678 38% Lobster 13,484 18% Queen crab 50,462 18% Queen crab 9,218 12% Capelin 31,153 11% Other 26,310 35% Other 89,080 33% Total 74,480 Total 273,373 PEI MT % British Columbia MT % Lobster 12,147 38% Hake 46,913 36% Herring 9,040 28% Redfish 16,584 13% Crab, other 1,942 6% Flatfishes 10,075 8% Other 9,201 28% Other 55,947 43% Total 32,330 Total 129,519 Commercial Fisheries Production, 2012 by Value (CAD millions) Nova Scotia Value % Quebec Value % Lobster % Queen crab % Scallop % Lobster % Queen crab % Shrimp % Other % Other % Total Total New Brunswick Value % NFL Value % Lobster % Shrimp % Queen crab % Queen crab % Herring % Greenland turbot % Other % Other % Total Total PEI Value % British Columbia Value % Lobster % Halibut % Queen crab 9.4 7% Queen crab % Herring 5.5 4% Clams/quahaug % Other % Other % Total Total Source: Fisheries and Ocean Canada

50 50 North America Seafood Market Report Canadian Seafood Trade

51 North America Seafood Market Report 51 Canadian Seafood Exports Canada is the ninth largest seafood exporting country and sixteenth largest importer of seafood. Historically, Canada s seafood exports have exceeded its imports, resulting in annual trade surpluses. Canada s export volume was flat in 2013 compared to 2012 at approximately 595 million MT. However, volume has been trending downwards since In contrast, the value of Canada s seafood exports increased by 6.4% from CAD 4.2 billion in 2012 to CAD 4.4 billion in 2013 and was up 14% compared to The main market for Canadian seafood was the U.S., accounting for 63% of total export value in China is the second largest export destination with 10% of Canada s export value followed by Japan at 6%. Exports to the U.S. increased by 8.5% to CAD 2.8 billion in 2013 from CAD 2.6 billion in Export Destinations (CAD millions) 3,000 Export Destinations, 2013 by Value 2,500 2, % 2% 3% 6% 14% 63% US China Japan Hong Kong 1,500 1,000 10% Russia UK 500 Other 0 US Europe China Japan Hong Kong Russia UK Source: Fisheries and Ocean Canada

52 52 North America Seafood Market Report Canadian Seafood Exports The most valuable Canadian export species in 2013 were lobster, crab, salmon and shrimp. The combined value of these species represented 70% of the total export value. The increase in the export value of lobster and crab was primarily due to higher export volumes. Exports (CAD millions) Exports by Species (CAD millions) 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Lobster Crab Salmon Shrimp, prawn Herring Scallop Other Lobster Crab Salmon Shrimp, prawn Herring Scallop Source: Fisheries and Ocean Canada

53 North America Seafood Market Report 53 Canadian Seafood Exports Nova Scotia led Canadian provinces in 2013 with exports of CAD 1.1 billion. New Brunswick s exports have increased by 45% since 2009, reflecting the increasing importance of farmed salmon exports. Exports by Provinces (CAD millions) Exports, 2013 by Province and Value 5% 5% 4% 24% Nova Scotia New Brunswick 1,100 1, ,062 1, % 20% 23% British Columbia Newfoundland Quebec Prince Edward Island Other Nova Scotia British Columbia New Brunswick Newfoundland Source: Fisheries and Ocean Canada

54 54 North America Seafood Market Report Canadian Seafood Imports The value of Canada s seafood imports increased by 7.8% in 2013 to CAD 3.0 billion, despite a 5.1% decrease in volume. The U.S. is Canada s most important trading partner, accounting for 36% of total imports. Asia was also an important supplier, representing more than 30% of total import value. Imports by Country (CAD millions) Imports, 2013 by Country and Value 1,200 1, US China Thailand Vietnam Chile India 23% 4% 5% 6% 12% 14% 36% US China Thailand Vietnam Chile India Other Source: Fisheries and Ocean Canada

55 North America Seafood Market Report 55 Canadian Seafood Imports Shrimp accounted for 18% of the total import value in The total value of shrimp imports was CAD 528 million, an 8% increase from The value of imported salmon increased by 17% to CAD 468 million in 2013 and represented 16% of total import value. Shellfish accounted for more than 30% of the total value of seafood imports in Imports by Species (CAD millions) Imports, 2013 by Species and Value 3,000 2,500 2,000 29% 18% Shrimp, prawn Fish, NES 1,500 Salmon 1, Shrimp, prawn Fish, NES Salmon Lobster Tuna Crab Other 4% 8% 8% 16% 17% Lobster Tuna Crab Other Source: Fisheries and Ocean Canada

56 56 North America Seafood Market Report Canadian Aquaculture

57 North America Seafood Market Report 57 Canadian Aquaculture According to FAO, Canada ranked 25th among world aquaculture producers in During the past 20 years, Canada s total aquaculture production has increased at a CAGR of 6.8% from approximately 47,000 MT in 1992 to 174,000 MT in Atlantic salmon is Canada s top aquaculture product, representing about 62% of total production in Canada is the world s third largest farmed salmon producer. Other key aquaculture species are mussels, oysters and trout. The value of aquaculture production has increased in line with the rise in total volume during the past 20 years. In 2012, the total value of Canadian aquaculture products was CAD 825 million. Atlantic salmon is the most important species, representing 72% of the total value in Thousand MT Aquaculture Production by Species Volume Value CAD Millions Salmon Mussels Oysters Trout Other Salmon Mussels Trout Oysters Other Source: Fisheries and Ocean Canada

58 58 North America Seafood Market Report Canadian Aquaculture Aquaculture production is equally divided between the Pacific and Atlantic coasts. In 2012, British Columbia accounted for about 48% of total production volume, followed by New Brunswick at 18%, Prince Edward Island at 14% and NFL at 12%. According to FAO, aquaculture employs about 15,500 people in fulltime, well-paying jobs that are primarily located in smaller coastal and rural communities. Canada s farmed salmon industry provides more than 10,000 jobs alone. Aquaculture Production, 2012 by Province 14% 12% 5% 1% 2% 5% 1% 2% British Columbia 6% New Brunswick 48% PEI 14% Volume Newfoundland Value Nova Scotia 49% British Columbia New Brunswick Newfoundland Nova Scotia PEI 18% Ontario Quebec 24% Ontario Quebec Source: Fisheries and Ocean Canada

59 North America Seafood Market Report 59 Canadian Consumption

60 60 North America Seafood Market Report Canadian Protein Consumption Per capita consumption of animal proteins has decreased by approximately 10% since Similar to trends in other parts of the world, consumption of red meat has fallen while consumption of poultry has increased. Per capita seafood consumption increased by 12% to 8.6 kg in 2011 from 7.7 kg in 2010, but is below the levels seen in the early 2000s. The downward trend in per capita seafood consumption is primarily a result of lower landing volumes. As a percent of total animal protein consumption, seafood has remained relatively stable at approximately 8.5%. Annual Animal Protein Consumption (kg per person) Red Meat Poultry Seafood Source: Fisheries and Ocean Canada