With the seafood sector looking well positioned for growth, can the supply chain hold up as demand increases? food institute takes a closer look at some of the recent developments in the category.
Implications for the supply chain as demand grows
Fresh and frozen seafood revenues have been growing over the past year and Allied Market Research forecasts sales to grow at a CAGR of 2.5% through 2027.
Yet potential problems await merchandisers who are unable to keep pace with growing consumer demand for a wider range of seafood options, starting with the growing interest in seafood preparation. sea at home in reaction to the pandemic.
Supply chain restrictions, such as lower quotas for some wild-caught seafood species, are also leading to stock-outs and increasing demand for scarce products, helping to fuel inflation. This includes most shellfish which, due to fishing restrictions, faced lower harvests in 2021 and lower quotas in 2022.
Supply chain logistics issues, including a shortage of truckers, are also causing product shortages and contributing to higher prices. (Supermarket NewsJanuary 20)
Strong global aquaculture demand and climate impact
Global demand for aquaculture products is expected to be strong this year, pending economic recovery from the global COVID-19 pandemic, according to a new report from food and agribusiness analysts Rabobank.
In its report, Rabobank described a scenario of high farm gate prices for salmon and shrimp and relatively stable feed costs, with lower demand for fishmeal and more competitive soymeal prices. .
“We are seeing a strong price environment for major seafood species, particularly salmon and, depending on supply growth, possibly shrimp as well,” said Gorjan Nikolik, Senior Commodity Analyst. of the sea at Rabobank. “But at the moment there are few indicators that indicate feed prices and other costs will fall in 2022.” (Responsible Seafood Advocate, February 4)
Meanwhile, a new study indicates that the global supply of farmed seafood, such as salmon and mussels, could drop 16% by 2090 if the world continues to burn fossil fuels at current pace. Researchers from the University of British Columbia said regions like China, Norway and Bangladesh, where seafood farming is abundant, could see supply decline by 40 to 90 percent. (Miami Herald)
New England fishing companies seek to scrap monitoring programs
A group of New England fishing companies are taking their bid to try to end industry-funded surveillance programs in federal appeals court.
The companies are part of the industry that harvests Atlantic herring, which is heavily fished off the East Coast. The federal government requires herring fishing vessels to participate in and fund at-sea monitoring programs.
The government and some environmental groups have said industry-funded monitoring programs are vitally important for collecting data that helps shape fishing rules. But industry members have argued that the monitors, who are onboard workers, cost hundreds of dollars a day and can make it impossible to make a profit.
The companies sued in federal district court last year and lost. They filed an appeal with the 1st US Circuit Court of Appeals in Boston on Jan. 28 and are awaiting a response from the US Department of Commerce and federal agencies that regulate fishing. (ABC NewsFebruary 8)
- Aquaculture company AquaBounty Technologies is beginning site preparations for the construction of a planned 10,000 metric ton salmon farm in Pioneer, Ohio.
- A bill to maintain the Alaska Seafood Production Tax Credit is gaining attention at the start of this legislative session. The state currently operates a tax credit program for qualified seafood processors who invest in value-added processing equipment. The program, which covers salmon and herring fishing, could be extended until 2025. (Alaska Trade JournalJanuary 26)