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FISH INFOnetwork Market Report
The market for European lobster Homarus gammarus and American lobster Homarus Americanus over the past year has remained largely stable in key markets in terms of import volumes, but with increases in import unit values averaging around 10-12%.
Imports of lobster into Spain in the period January December 04-05 rose by 4% in volume, with the increase coming mainly in the frozen sector, which made up around one fifth of total imports. Increases of 6% and 31% were seen respectively from Iceland and Canada, accompanied by strong unit value increases of 21% and 36% to around 11.50/kg.
There was a fourfold increase in imports of frozen product from the Netherlands, from 75 tonnes in 2004 to 221 tonnes in 2005, with a rise in unit value of 75% to 6.56/kg. However, the Netherlands achieved just half of the unit value commanded by lobster from Canada and Iceland. According to industry sources the Netherlands is a net exporter of seafood and frozen seafood in particular, and lobster is most likely to be a re-exported further processed product.
Spanish imports of live lobster were largely from the USA, Canada and the UK, with UK unit value increasing by 31% from 14.82/kg to 19.43/kg, compared with the average of 12.86/kg. This corresponded to a fall in volume of 25%. The unit value of lobster imported from the USA rose by 13% from 11.52 to 13/kg and this was accompanied by an increase in import volume of 15%.
There was also an increase in unit value of 13% on imports from Canada, although at 7.28/kg this lobster remained low-valued when compared to supplies from the USA and the UK. Despite the low unit value of Canadian supplies, the volume decreased by 8% overall during the year.
At 61.4 million the total value of live and frozen imports was 21% higher than in 2004.
In the period January December 04-05 French imports of live lobster from the USA and Canada fell by 3% and 18% respectively, while imports from the UK increased by 15%. Overall imports were just 3% lower than in 2004, at 3388 tonnes. The unit value achieved by USA exports rose by 9% to 12.84/kg, just 15 cents less than those of Canadian supplies.
Live lobster from the UK continued to attract a price premium of around 50% higher than those achieved by the North American species.
Frozen lobster was imported mainly from Canada, with 1026 tonnes bought in, compared with a total of 1348 tonnes. Total frozen imports rose by 6% in volume and 27% in value, with total unit value increasing by 20%. The unit value of Canadian imports rose by 46% from 8.04 to 11.73
The total value of live imports into France amounted to more than 50 million, and with frozen lobster worth around 15 million, overall value was 65 million, just 9 percent higher than in 2004.
Imports of lobster into Italy are available for the period January November 04-05 which misses out the crucial Christmas period, when volumes and unit values of lobster are traditionally at their highest.
During the year total Italian imports remained stable at 3124 tonnes, just -2% lower than in 2004. Although there was a fall in imports of frozen lobster of 20% this sector accounts for just 10% of total imports. The total value of frozen imports fell by 7% to 3.4 million.
Canada was a major source of both live and frozen lobster, with imports of live product increasing by 9% to 460 tonnes and increasing in total value by 18% to just under 6 million. However, imports of frozen lobster from Canada fell by 23% in volume and 11% in value.
In interpreting the import and export data, it should be remembered that product format has an effect on volume and value and a simple shift in format, such as shell on to less shell on, can have a dramatic effect on absolute volume and thus value.
In 2005 the USA provided a similar volume of live lobster to Italy as in the previous year, although the total value increased by 10% to just around 31 million.
Imports of live and frozen Homarus spp into the USA in the period January December 04-05 come almost entirely from Canada, and although total volumes decreased by 1% to 30,000 tonnes, there was a 12% increase in unit value to $18.60/kg and an increase in overall value of 11% to $561 million.
Volumes in the important live market fell by 6%, while unit value rose by -1% to around $14/kg, giving a total value of just under $297 million. This contrasts sharply with the overall unit value for frozen lobster of around $29/kg, up 8% on the previous year. The total volume of the frozen supply increased by 13% to 9149 tonnes, while the value increased by 22% to $264 million, making it similar in value to the live market for less than half the volume.
Japanese imports of lobster in the period January December 04-05 originated almost entirely from Canada and America, with Canada providing the bulk of frozen product and three quarters of the volume of live product.
There was a 22% reduction in the overall tonnage, reflecting a large drop of -41% in frozen supplies, while live imports fell slightly by 6%. Industry sources indicate that Japan is now favouring imports of spiny and rock lobster, particularly from Australia, over supplies of Homarus species.
The overall value of imports was down 16% to 4.8 million yen while the average unit value increased by 8% to 2350 yen/kg. Unit values rose by 10% in both the frozen and live sectors, with the average unit value of frozen lobster being around 15% higher than that of live lobster, reflecting the additional costs involved in processing.
In Nova Scotia, Canada, one of the major suppliers of American lobster, prices to fishermen for the Spring fishery are down from Cdn $9.00 per pound in 2005, to Cdn $6.00 per pound and so far, catches are light.
Processors are also reporting a hard time, with many failing to turn in a profit in 2005.
In the live pounds, some lobsters remain from the winter fishery, which dealers are reportedly trying to sell for Cdn $5.25 per pound. These are no longer in the best condition and will go for processing rather than for the live market.
In converting lobster from a live to a frozen product, there are a number of factors to take into consideration, including weight loss during cooking, shell removal weight loss, and the costs of labour, packaging and freezing. Processors maintain that selling lobster in a frozen format is by and large a very poor financial alternative to selling it live.
There is also a heavy remaining stock of frozen lobster meat to carry over to the new season, but frozen lobster tails and whole cooked lobster including popsicles, have sold well during the winter season, leaving little carry over.
The main season begins on May 1st and landings are expected to be heavy for the first 3-4 weeks as a result of a very mild winter, which means the water will be warmer than usual for the time of year, the lobsters will be active, and so will be caught more quickly. However, industry sources report that such a large volume of lobster caught early in the season when market demand is not at its height, is likely to result in shore prices remaining low. It is also expected that the total catch will be down on 2005, the effect of which should be to push prices up later in the season. The recommendation is therefore to buy early to obtain the best price!
One of the countrys leading exporters of lobster is Clearwater, which has developed a Dryland Pound storage system that keeps the animals in a post-harvest state of health, protein levels, meat yield and texture, for up to 6 months by slowing the metabolic rate and inducing a state of semi-hibernation. It is therefore able to maintain supplies from one season to the next and to supply live hard-shell lobster all year round, resulting in increased sales and expanding markets. This contrasts with lobster kept in wet pounds, which can lose condition if oxygen levels and water quality are not correctly maintained.
UK sources report prices currently being paid to fishermen of £17/kg, with a wholesale price of £19/kg. The new season is just beginning and stocks are expected to be reasonable. However, unit values are likely to be poor from April July, when the French and Irish fishing effort is also in full swing, and to recover from September onwards, as lobster is bought in for stockpiling until Christmas 2006.
Nicki Holmyard
© 2006 Eurofish |