Gordon Food Service Market Updates

Transcription

1 Gordon Food Service Market Updates Seafood section for Market Update: September 14, 2018 Seafood Finfish Cod, Alaskan 1x: Supply remains tight and costs are firm, this is partly due to decreased quota in other regions of the world. Expect this toremain this way through the end of the year. Cod, Atlantic 1x: The 1x frozen Atl. cod loins are firmon costs withthe announcement of a 25% reduction on quota compared to2017 out of the Newfoundland and Labradorregions in Canada. Inventoryhas been ramped up to cover increased demand on all sizes but the smaller sized4 oz has been tight. Expect costs to firm and remain elevated through at least the end of the year. Cod, Atlantic 2x: Fishing in Northern Europe has concluded.total catch this season ispoor and raw material is in short supply for2018 until early 2019 when fishing resumes. Cod, Pacific 2x: Heavy restrictions on total allowable catch in certain Alaskan fishing grounds. Raw material is now more expensive than Atlantic Cod and expected to firm continuously for all of Pollock, Atlantic 1x: Costs have softened slightly on some sizesof the 1x fzpollock but mostremain steady for the balanceof the summer and through the B Pollockseason. Many

2 anticipated with the rising cost of Cod that Pollock would be the next lower cost option.for the most part that "switch" has not materialized to the degree first thought. Pollock, Pacific 2x: Slight firming of pricing. Starting to see substitution demand from cod users. Haddock: Raw material prices firming due to the cheapest ground fish compared to Pacific and Atlantic Cod. Continued substitutions from cod consumers driving up demand and cost.available raw material is in short supply. Domestic Lake Fish: Prices softenedover the summer as supply was plentiful. As we are starting to enter the fall fishing season, costs have ticked up slightly but are expected to level off.larger walleye and 8/10 whitefish have been hard to find at this time due to the class of fish on the lake. We expect this issue to resolve itself come fall. Euro Lake Fish & Zander: Supply is good and costs have been stable with only minoradjustments to market.this is a more cost effective substitute for the higher priced domestic lake fish items where applicable. Mahi Mahi: Mahi Mahi costs and supply are currently steady for an activedemand. Typically the springseasonbrings added containersfromtaiwan and Vietnamto supplement, butinventorydid not materialize this yearout of Asia as expected, with 40% less reported landings over New S America product should begin to arrive in Nov / Dec., price will be determinedat that time but there is some indication of a further cost adjustment downwardfromlast season'scosts. Frozen Tuna, Swordfish : The peak season in Vietnam for tuna ended in July. As landingsdropped offcosts have startedto increase. This hasbeen attributed in part to the newiuu fishing regulations forcing more plants to compete over limited amounts of local raw

3 material. The Indonesianseason is at its end. Combined with soft Vietnamese production, prices remain elevated out of this region as well.thailand has yielded limited supply as most long-line boats are fishing in Sri Lanka now that they are green listed with the EU. Prices have substantially increased on Swordfish from Indonesia, high demand from the European market and stricter regulations are the main cause. Demand remains strong from both retail and foodservice customers Swai: Cost fingerlings increased after Chinese New Year instead when market expected a drop. US trade commission assesses preliminary higher duty rates in Swai. Prices firm with short supply until end of 2018/early Tilapia: Low production during this time of the year. Prices recently firmed. Seafood Shrimp Imported Black Tiger: Black Tiger shrimp prices are stable and supply is good on small and middle sizes. There are shortages of large sizes due to limited production (2-4 through 13-15) and heavy demand. Imported White: White shrimp supply is somewhat sporadic with shipments being late due to heavy demand overseas. Market values are good and offer great opportunities to menu shrimp this summer. Expect supply to be better as we roll into the late summer months as production catches up. Latin White: Latin White shrimp are firm with replacement prices firming. Supply is good for the time being. Domestic White & Brown: Domestic Brown shrimp are steady in price as we roll into the new season for Texas.

4 Larger sizes of white and brown headless shrimp should begin to land over the next few months. Domestic PUD: Domestic PUD production has slowed on smaller shrimp. While boats begin to target larger whites and browns where available, we should see better production in larger and middle size peeled shrimp. Domestic Rock & Pink: Rock & Pink shrimp are both in good supply. Seafood Lobster North Atlantic: Lobster tail costs have been steady to date. Meat prices have been soft.landings inmaine have been marginal so expect costs to increase this fall. There is still uncertainty of how the pending tariffs will affect this market as many reports state the Chinesehave alreadymoved over to the Canadian exports. Until this is resolved or finalized no one can be clear of the impact on the domestic lobster fishermen or their supply. Warm Water: Supply continuesto be hand to mouth on the warm water tails out of Brazil and the Bahamas and costs are firmsmaller sizes namely the 6 oz tailsare harder to come by at the moment. Supply should ramp up soon and be more consistent as we enter the fall. Seafood Crab Snow Crab: The global shortage of snow crab will continue through Prices have leveled off and remain firm on the larger 8 and 10 up products withlimited offerings. The 5/8

5 size hascontinued to softenas there is more inventoryof this size inthe market, however there is uncertainty of howmuch of this product remains in storage availablefor sale. King Crab: This market has remained unchanged. Smallerking crab sizes remain very tight, especially on 14/17 ct, 16/20 ct and 20/+ ct. Thesethree sizes haveseen the biggest issue with availability and as a result costs are firming.they are still fishing for Russian crab but most is movingthroughtheasian market causing somedelays on containers. We do not expect any relief on supply or cost at least for the next 6-7weeks. Red Swimming Crab: A new 10% tariff on all seafood items should go into effect in August. The market is still uncertain however, between high market prices, and limited supply, cost might go up. This coupled with the void in the market on red swimming crab only strengthens this possibility. We are still expected to start receiving shipments on red crab in October. The main crab harvest is October December. Blue Swimming Crab: Prices are still high with great inventory. There has been a slight decrease in pricing from Indonesia while Philippines and India move up to be more in line with Indo. For the next days prices will stay level to a possible dip however, Q4 is expected to pick back up. With the red swimming still high with limited supply, this too drives the price up. Overall prices will come down a bit. Seafood Scallops With increasedquotathis season and more open areas to fish...costs have decreased for the first time in several years. Supplyhas been more readily availablein the larger sizes. As we enter the fall and the season starts to wrap up, expect costs to start to firm for the winter months.