--- The Canadian Test Fishery for the Fraser River is under way and the Department of Fisheries and Oceans is expecting Sockeye to be strong and in abundance.

Area 12, the Johnstone Strait, showed a good run of fish, landing 9,543 Sockeye and 14,600 Pink salmon using seine nets.

Pink salmon numbers are higher than expected as they follow a two-year cycle on odd numbered years.

The Pacific Salmon Commission's Daily Test Fishing Report last week showed average whole round sizes for Sockeye at just under 6 lbs.

Current testing is also showing the Fraser River to be 1 degree Celcius warmer than average.

As mentioned last week, more energy is required to swim in warmer waters, causing the salmon to run a little slower. Sockeye have struggled with warmer temperatures in the Fraser River, but Pinks seem to increase without impact.

--- H&G Sockeye production out of Bristol Bay has nearly doubled from the previous season to about 19,000 tons this year.

The 2-4 lb size is expected to be 3-4 times more than 2013 at 7,000 tons. Bristol Bay dock prices last week were 20 percent lower for 2-4 lb Sockeyes at $1.20 /lb.

The yield on H&G product is about 75 percent, so after production costs etc the net price is around $2.70/lb. Alaskan packers have been offering Japan 2-4 lb Sockeye at $2.80/lb C&F Japan. However, this price is being rejected due to the dropping price of farmed Coho, which competes directly with the Alaskan Wild Sockeye market.

A 30 cent decrease might get them buying, but most Japanese buyers are waiting for the Fraser River run to hit before confirming purchases.

Looking to Russia, harvest estimates of Sockeye are 10,000 tons in Kamchatka, down significantly from 17,000 tons in 2013.

Lower raw material catches in Russia and the anticipated Fraser River run are causing high price uncertainty for the salmon market, but we will know more in the next few weeks.

 

---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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