--- It's been a while since we talked about the Hokkaido Chum Salmon Fishery which is one the largest wild Salmon Fisheries globally. The quota for the 2014 Hokkaido Chum Salmon Fishery won't be announced until July 2014 however we are hearing that it will be set at about 120,000 MT in W/R basis. The quota for 2013 was set at 110,000 MT where the actual catch was 129,000 MT. Japan domestic demand for Hokkaido Chums been very strong since 2012 due to the earthquake and tsunami in the Sanriku area in 2011. Farmed Salmon prices have been very high since last season which lead to consumers switching to the local Hokkaido Chums. Prior to the earthquake that destroyed many salmon factories, domestic consumption of Hokkaido Chums was about 90,000 MT - fast forward to present day, domestic consumption of Hokkaido Chums is well over 100,000MT. China is still carrying out strict control policies and regulations on the exports of Japanese Chum Salmon which still includes radiation testing. However, these policies do not affect Hokkaido Chums being exported into China. There are 12 cities that are near the radiation area that are forbidden to export to China and the Hokkaido area is not a part of that list. Aside from Hokkaido Chums being exported to China, Thailand is another major market they are being sold to. The average price for 2013 Hokkaido Chum Salmon is $3300/MT or $1.50/lb delivered. Although there are no 2014 prices set yet, all indicators are trending to increased pricing. --- Now over to the West Coast, The 2014/2015 California Squid Season started up again in April. Landings so far are moderate heading into what is to be one of the strongest El Niño seasons in decades. The catch limit has been set consistent at 118,000 Short Tons or 107,047 MT in accordance to the Market Squid Fishery Management Plan. As the CDF&W gather their catch data, 1,207 MT of California Market Squid had been landed as of May 16th which looks similar to past El Niño years for this time of the year. As we mentioned in a previous episode, El Niño is typically bad for squid fishing where La Niña is very good for squid fishing. Take a look at the 2010 squid fishing year. Based the Oceanic Niño Index values, 2010 was a very Strong La Niña year which resulted in one of the highest landings within a decade at about 124,000 MT. Whereas in 2009, a Moderate El Niño season resulted in one of the lower California Market Squid catch in the years since then. Based off this data and the anticipation that we are headed for one of the strongest El Niño years in decades we can only assume that the 2014 California Market Squid Landings will be quite low. The California Market Squid Fishery is one of the state's most valuable fisheries bringing in up to 70 million dollars at ex-vessel pricing to the economy. More than half of the catch is exported to China where it is processed into tubes and tentacles then exported back to the U.S. Current prices for Loligo ex-warehouse China are $1.80-$2.00/lb for 3-5’s, $2.35-$2.55/lb for 4-6’s, and $2.35-$2.55/lb for 5-8’s.

---Thanks for joining me for the Tradex Foods "3-Minute Market Insight" This is Rob Reierson - “BUY SMART” and “EAT MORE SEAFOOD”

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