Landings

Between January and March 2007, total landings of hake by the Argentinean fleet were 9.1% below the level reached in the same period in 2006. All species experienced a reduction in landings, but it was stronger for Southern hake (Merluccius australis) and hoki hake (Macruronus magellanicus) (-19.2% and 28.1% respectively). However, given the smaller share of both species in total landings, the overall variation was lower due to the almost unchanged (-0.9%) landings of hubbsi hake (Merluccius hubbsi). Hubbsi hake is the main exploited resource, and in the period under review it accounted for 73.5% of captures of hake, followed by hoki (23.5%), and, with a much smaller share, Southern hake (0.6%).

According to the available information about captures, it is still too soon to make predictions about results for 2007, but it is worth noting the 10% reduction in the TAC for 2007 compared to 2006 for hubbsi. On the other hand, concern about the state of the resource remains, and even grows. Some operators see that hake is on the brink of collapse. Although the TAC reduction is assessed as positive, they state that the level of discarding of juveniles, as well as the effect of shrimp activity (shrimp fishing also results in a hake by-catch) are seriously affecting the state of the species. In fact, according to some statements, the presence of hake in captures of shrimp vessels surpasses the 20% set as a legal maximum. On the other hand, according to the monthly evolution of captures in the last few years, it is not possible to find a clear monthly seasonal trend in captures and so it is difficult to make precise forecasts although there is a basis for concern about the state of hubbsi hake stocks and their future sustainability.

Meanwhile, the lower supply also faces a higher demand. This hit domestic market prices, making the government reach an agreement with traders in order to stop the rising level of hake prices which were stronger in the weeks previous to Easter Week.

Also, the lack of fish for processing is affecting plant activities. The situation is of concern not only because the lower activity level affects negatively the level of employment in the industry, but it also generates idle production capacity adversely affecting the financial situation of investors.


Exports

During the first two months of 2007 the exported volume and value were lower than in the same period in 2006. In January and February 26 096 tonnes worth US$ 53.6 million were exported, representing a 24.2% and 8.8% fall respectively. This also means that the unit value of Argentinean exports grew 20.3%, in line with the trend shown during 2006. As in the case of landings, the main exported species is hubbsi hake which accounts for 86% of the volume. Exports of this species showed the most important growth in unit values, +22.1%. Although all species reduced their exported volumes and values an increase in the unit value could be observed for each species during the period under review. At the same time, unit values for other species of hake increased significantly, +38%, but the share in total exports of these species is limited.

The exported item with the strongest growth during these months was fresh whole and H&G hake. This was the only item that showed an increase both in the volume and value sold to foreign markets (+1.5% and +37.55 each). Fresh fillets also had a positive outcome regarding exported volumes; sales of these products increased by 2.8%, but given an 8.7% fall in the unit value, the exported value was 6.1% below compared to the same period in 2006. On the other hand, frozen fillets, which account for 65% of the exported volume and generated 74% of the income for hake exports, had a negative change; sales fell from 22 942 tonnes in the first two months of 2006 to 16 908 tonnes in 2007 (-26.3%), meanwhile, the value of exports of this category had a smaller reduction, -11.7%, from US$ 45 million to US$ 39.8 million, due to an increase in the unit value, +19.8%.

Exports of whole and H&G products showed the most remarkable gain in value terms. Fresh whole and H&G increased in value by 35.5% compared to the same period last year, while unit values for frozen products increased by 24.8%; the joint effect resulted in the whole category showing an increase in unit value of 26%. The main destination of frozen whole H&G hake is Spain which has a 22% share of total export volumes, while in the same period in 2006, Spain accounted for 16.7% of sales of this product. However in that market Argentinean products obtained a 1.2% lower unit value. It is remarkable the increase in unit values of exports to Ukraine, second main destination for this category. At the same time, the main destination for fresh whole and H&G hake is the region, more specifically, Uruguay, which bought 87.3% of the 1 219 tonnes exported in the reviewed period.

Regarding fillets, frozen are by far the most important under this category, and had a value gain of 19.8%, what helped to reduce the impact of the fall in the exported volumes during these two months. The main destination is Brazil, to where about 6 171 tonnes worth US$ 14 million were destined, and represents 35.3% of the exported volume and 26.2% of the exported value of frozen fillets. Fresh fillets were sold almost entirely to the Spanish market.

Globally, the main destination for Argentinean exports of hake during the first two months of 2007 was Brazil (26.6% of exported value), followed by Spain (14.1%). In each case, the main product category was frozen fillets, followed closely by frozen whole and H&G hake.


Outlook

Although it is too early to draw conclusions about the likely outcome for Argentinean hake exports in 2007, it can be foreseen that the increasing price trend will persist, mainly taking into account the reduced availability of raw material. Regarding this latter point,, current indications suggest that this year’s landings will not be higher than those in 2006, and the situation of the resource will have to be observed carefully, given he risk of a new “hake crisis”, as several operators and researchers state.

Landings

Total landings of hake by Chile in the first trimester of the current year remained almost unchanged compared to landings during the same months in 2006. But regarding the different species a very uneven pattern can be observed. Catches of southern hake (Merluccius australis) increased by 29.1%, and landings of hoki hake (Macruronus magellanicus) had a 14.6% increase. The growth of these two species managed to counteract the fall in captures of common hake (Merluccius gayi), which is the main exploited resource and fell 16.5%. This way, common hakes share in landings reduced from 53.7% in the first three months of 2006 to 44.8% of captures in the same period in 2007.

There is concern in the sector regarding the state of common hake stocks, which is evaluated as high risk in terms of conservation and future sustainability. Since 2003, landings have fallen, reaching in 2006 less than 50 000 tonnes. Responding to this situation, the Fishing Subsecretary is working on the implementation of a Conservation and Recovery Plan for the fisheries of common hake. The deterioration of the species can be observed not only in the size of the population but also in a change in age structure, involving an increase in the number of juveniles under the age required for reproduction. Taking all this into account, the Recovery Plan will have two phases; one in which the different stakeholders, with representatives from the artisanal and industrial sector, as well as from public institutions, will be consulted. In the second phase of the Plan, management actions will be applied, such as adjustments in the fishing quotas and protection measures for juveniles through biological bans and fishing zone restrictions in order to allow the recovery of the resource.

Exports

Chilean exports of hake up to February 2007 increased in terms of value by 11.3% compared to the same period in 2006, reaching US$ 19 million. In terms of the key product categories, whole and H&G hake showed the strongest growth, with sales up 43.6%, mainly due to sales of southern hake. Among individual categories, prepared and canned hake showed the strongest growth increasing by 515.9% when compared to the same months last year. On the other hand, a fall in sales of both fresh and frozen fillets can be observed between the two periods under review.

As was previously mentioned, exports of whole and H&G hake increased by 43.6% in terms of value compared to last year, generating incomes of about US$ 12.8 million in the first two months of 2007. Although the highest growth was shown by frozen whole and H&G hake (+101%), the bigger share of fresh products, which had a slower growth rate, softened the general trend of this category. Also, the most dynamic species is southern hake, as can be seen in the chart above.

Regarding fillets, a general fall in exports of all species can be observed, which is reflected in a 33.1% reduction in sales. The most important product form is frozen, which accounts for almost 97% of total fillet exports.

It is worth highlighting the growth of exports of “other preparations and canned products”, +515.9%, although its share remains insignificant compared to the other categories.

As for the destination of sales, the main buyer was Spain, accounting for 62% of the exported value and 47% of volumes sold to foreign markets, followed (with shares under 10%) by the US, Germany and Japan.


Outlook

As in the case of Argentina, it is still very soon to make forecasts regarding the exporting sector. It is worth remembering that in 2006, this sector had a modest growth from the point of view of sales, while exported volumes declined slightly. The crisis which common hake, the main resource, is going through must also be taken into account.

Uruguayan exports for the January-March period this year decreased both in volume and value terms, -29.6% and -20.4%, compared to the first three months in 2006. Thus, the unit value of exports grew by 13%. The main export category was frozen fillets, at 3 113.8 tonnes worth US$ 9.8 million. The increase in the unit value of “other frozen products”, +35.4%, is noteworthy. This group includes added value products such as breaded frozen fillets and frozen fillets with sauces. Unit values for these product categories increased by 32% and 2% respectively compared to the same period last year. Also, frozen fillets with sauces sales grew both in volume and value terms, +26.8% and +57% respectively, and accounted for 44% of export sales of the category.

In value terms, the main buyer of Uruguayan hake products was Italy with US$ 4.8 million (1 048 tonnes) followed by Russia, with US$ 1.9 million (1 327.7 tonnes) and Germany, with US$ 1.4 million (549.6 tonnes). The main export product for these three markets was skinless and boneless frozen fillets. Italy is also the main destination for the products with more added-value in the period reviewed, followed by Spain.

By Javier López (INFOPESCA)
© FAO GLOBEFISH 2007