News Summary: March 12, 2010


Today's Main Story: Supermarkets see beginning of consumer turnaround; many aim to increase margins as prices rise

In a sign that the retail seafood category should continue to improve in 2010, a survey of retailers shows that some are seeing signs of consumers beginning to trade up, and are more focused on increased margins and passing through higher prices. This augers well for a seafood sales season that will see higher retail prices on many seafood items. It implies our customers won't turn away as prices rise.

In other news, things seemed almost schizophrenic this morning, as news of a positive sales climate was juxtaposed with a number of stories about environmental challenges. We cover a report showing degradation of Central American shrimp and lobster, problems with low oxygen waters in the Pacific Northwest, and supply struggles for Vietnam exporters, who because of raw material shortages find they cannot meet EU certificate of origin requirements. So our positive market news is colliding with negative supply and environmental news.

We continue our roundup of Boston show news with comments from Pacific Seafood, Packaging Products, and Shuck's Lobster, among others.

The USDOC released its preliminary finding on Chinese shrimp exporter anti-dumping duty. The three companies reviewed got assigned duties from zero to 1.3%, while the companies that didn't participate, and no longer export to the U.S., got over a 100% duty.

The prediction of a stronger Chinook run this year, the biggest in several years, may allow the Pacific Council to open a salmon season. All the options up for consideration allow some level of fishing. But not all believe the forecast, as a jump from 39,000 fish to 245,000 fish has never happened before.

Canadian exporters are fearful of getting hit even harder by a negative exchange rate, as banks expect parity between the U.S. and Canadian dollar this summer. This is destroyed margins for many Canadian exporters, says Derek Butler, executive director of the Association of Seafood Processors. Meanwhile, Newfoundland production dropped 22% in value last year, with about 50% of that attributable to exchange rates.
We hope to see many of you at the Boston Seafood Show this weekend and early next week. Both Ken Coons and I will be at the Urner Barry Booth, along with Paul Brown, and Dick Gutting. The booth number is 364.

John Sackton, Editor And Publisher , Lexington, Massachusetts
Seafood.com News 1-781-861-1441
Email comments to jsackton@seafood.com

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