Some Fast Facts to start this week’s insight: - Chinese suppliers are reporting a shortage on all Sole raw material. - This could effect Sole pricing in the North American market come February. - The Canadian Food Inspection Agency has agreed to adopt the I.U.U. – which is the “Illegal – Unreported and Unregulated Fisheries Program”. - This program is designed to eliminate illegal fisheries – AND – the plan is to implement very soon. - This will have STRONG implications on imported seafood inventories. - More to come on this in future reports…. In news this week - Despite additional supply - the Atlantic Mackerel market is holding steady. - Due to a northerly shift in the distribution of Northeast Atlantic Mackerel - the increased supply is coming primarily from Iceland and the Faroe Islands. - This year - European countries caught just 73 percent of Atlantic Mackerel. - Iceland typically sells the majority of their catch to fishmeal producers – but this year - they’ve sold over 60 percent for human consumption – primarily to Russia. - A similar trend is noticed in the Faroe Islands - who aim to sell 100 percent of their fish for human consumption this year. - Despite the added competition - European companies still managed to increase their sales this year. - So - where is all the added supply going? - The answer is both in booming demand - as well as reduced supply of Pacific Jack Mackerel. - Jack Mackerel quotas have been on the decline for the last few years - and reached a new low this year. - In addition - growing demand in Russia - Eastern Europe and Africa is apparent. - Western African countries purchased large amounts of Norwegian Mackerel early in the season - effectively absorbing much of the supply and preventing prices from collapsing. - Looking forward - the European quota is set to increase by 17 percent in 2011. - If Iceland and the Faroe Islands keep selling for human consumption then prices may fall in 2011. - A further risk is that if Iceland & the Faroe Islands fail to come to an agreement with Europe on quotas - the Marine Stewardship Council may revoke certification. - MSC has set a deadline for the end of 2011 for international agreements to be met. In other news - The 2011 quota for Barent’s Sea Capelin is up 5.5 percent over last year. - Over 70 percent of this quota is allotted to Iceland and the remainder to Norway - Greenland and the Faroes Islands. - The quota is a welcome increase – as Capelin stocks have been at low levels over the last five years. - Fisheries management authorities only allow fishing for Capelin when the spawning stock exceeds 200,000 tonnes – which has happened only 11 times in the last 25 years. - Demand for Capelin remains strong – in particular - within the Japanese market where Capelin roe is a hot item – HOWEVER - the Capelin and roe markets fluctuate considerably due to unstable supply. - The Marine Fisheries Institute will re-evaluate stocks in the New Year and may recommend a larger quota at that time. - Until then - the market is unpredictable. Thank you for joining me for The Tradex Foods - "3-Minute Market Insight" This is Robert Reierson - “BUY SMART” and “EAT MORE SEAFOOD”

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