Squid market report – March 2009
Slight reduction in catches
Total squid catches in the South West Atlantic reached 400 000 tonnes in
2008, about 30 000 tonnes below the record 2007 result. Lower catches off
Falkland/Malvinas were primarily responsible for
the decline. Total production there was 158 000 tonnes in 2008, 45 000 tonnes
less than in 2007. While Loligo catches off
Falkland/Malvinas increased by 24.5% in 2008 to 52
300 tonnes, Illex catches declined sharply by 33%
to 106 600 tonnes.
Mainland Argentina
reported 255 000 tonnes of Illex catch in 2008, a 22 000 tonne
increase over 2007. Loligo catches reached some 18
000 tonnes in 2008, in
line with 2007 production levels. Prices, which first had declined in the
opening months of 2008, recovered somewhat in the second half of year. At the
end of the period the average price of Illex squid
was USD 888/tonne, about USD 100/tonne ahead of the 2007 price level. However,
the higher costs of capture fisheries in the 2008 season could not be
recovered in spite of the increase in production and in prices. In the first
eleven months of the year, some 174 000 tonnes were exported from Argentina. Total
export earnings during the period reached over US$ 150 million.
The most important issue relating to squid exports in 2008 was the emergence
of China as the main squid
importer from Argentina.
Some 66 400 tonnes were imported, almost double the 2007 figure. The average
price paid by China
for Argentinean squid increased from USD 600/tonne to USD 700/tonne. The
Chinese market imports mainly whole squid, for further processing in the
country. As a result of China’s
greater interest in Argentine exports, the share of whole squid in exports
increased sharply from 33% to 46% of total squid exports. On the other hand,
squid tubes declined from 48% to 40% and cleaned tubes from 19% to 13%.
The Spanish market is the second most important importer of cephalopods from Argentina in
quantity terms and the top importer in value terms, taking Loligo squid as well as Illex
squid. In 2008, total imports were over 60 000 tonnes, only a 3% increase
over 2007. The value, however, went up from USD 48 million in 2007 to USD 65
million in 2008. The average price of Spanish imports is obviously higher
than that of China,
as Loligo squid commands a higher price level. The
unit value increased from USD 845/tonne in 2007 to USD 1061/tonne in 2008.
Outlook more difficult than usual
At this time of the year, it is very difficult to forecast the production
levels as the new fishing season is just about to start. At present, it is
even more difficult than usual, as the impact of the economic crisis on the
world squid market still has to be felt. As a product, squid tends to fall
into a lower priced category, which in theory would help its market position
in a period of economic crisis. However, China
as the major buyer of Argentine squid in 2008, will probably refrain from
additional purchases, as its squid processing industry relies on export markets
such as Japan and the USA, where
lower demand is anticipated.
The economic crisis impact Argentine squid fishers, as they have problems to
get loans to finance the beginning of the activity. With the worldwide low
demand, jigger owners are rather reluctant to start fishing.
Spain,
the main importer of Argentinean squid, is the country in the EU most heavily
impacted by the economic crisis. The last quarter of 2008, although not the
main sales period for squid, already showed a major downturn for seafood
imports. The impact of this decline in demand is yet to be felt by the squid
industry. Overall the outlook is bleak, and with the stronger US dollar, some
price declines for squid products are likely to materialize once the squid
fishing in the South West Atlantic comes into full swing in April/May.
The economic crisis impact Argentine squid fishers, as they have problems to
get loans to finance the
|
