| Cod Market Report - March 2007 | |||||||||||
Mixed
import trends for frozen cod products in European markets during 2006
As the upward trend in frozen cod prices in Europe continued through 2006, import trends were mixed in key markets with volumes higher in the UK and France but lower in Germany. During the year, China consolidated its leading position as a supplier of fillets to these markets, a development which reflects the country’s success as a re-processor of seafood raw materials for the European market.
China
number one fillet supplier to the UK
Following largely unchanged import volumes at just under 80 000 tonnes during 2005, UK imports of frozen cod fillets increased last year with twelve month figures likely to show total volumes around 85 000 tonnes. Imports of frozen whole/h&g product on the other hand are down, -30% to 9 000 tonnes for the eleven month period. China continued to expand its share of the UK fillet imports with an almost 50% volume increase compared to January-November 2005, to over 22 000 tonnes. The increase lifted China into the number one supplier position last year, overtaking Denmark which saw volumes drop by 13% to 14 000 tonnes. In terms of import share, China has jumped from under 21% in 2005 to over 27% last year in contrast to a Danish decline from over 22% to 17.5%. UK imports from Iceland, the third supplier, also fell during 2006, -7% to just under 14 000 tonnes which translated into a decline in import share from just over 20% to 17%.
In line
with the upward price trend for frozen cod fillets last year, unit values
for UK imports increased by 7% to GBP4.92/kg. The strong increase in
imports from China may be at least partly explained by the below average
level of unit values for Chinese product (double frozen) at GBP3.65/kg
which contrasts with above average values for product from both Denmark
(GBP5.07/kg) and Iceland (GBP6.40/kg).
Strong increase in French imports French imports of frozen cod products increased by 16% last year thanks to higher volumes in the three main product categories: fillets, whole/h&g and mince. Total imports volumes passed 27 000 tonnes with imports of whole/h&g up 26% and mince imports up by 22%. Import unit values for all three categories were also higher with the strongest increase in the h&g category.
French 2006
import trade for frozen cod fillets followed that of the UK with overall
volumes increasing and China taking the top slot as a supplier to the
market. China increased fillet sales by 45% compared with 2005, overtaking
Norway, imports from which fell 8%. Germany moved to third position
following an almost quadrupling of volumes compared to the 2005
level.
Weaker
German fillet imports
In contrast to both the UK and France, German frozen cod imports fell last year (11 months) by 6% to 18 400 tonnes. The drop followed a reduction in imports of both fillets and h&g product, down 8 and 14% respectively compared with the same period in 2005. These declines more than balanced a 50% increase in mince imports.
The decline in
German fillet imports was mainly due to a halving of volumes from Norway
and an almost 30% drop from Poland. Supplies from both China, the leading
supplier, and Denmark were down slightly on 2005. The Russian Federation
was an exception to the general trend with volumes up almost 50%.
Notwithstanding the dip in Chinese volumes, the country increased its
share of German imports from 45 to 48% for the eleven month period. This
import share is well above that for Chinese fillets in both the UK (27%)
and France (26%).
Prices to
remain firm for 2007
Prices reported in the European Price Report point to a 20% increase for frozen cod fillets over the course of 2006. A year end indication for skinless, boneless fillets was at €5.80/kg for Norwegian or Polish product delivered Germany. Prices have edged higher to just under €6/kg during the early months of this year and with supply projections pointing to lower cod landings during 2007, it is likely that prices will remain firm for the foreseeable future. Gerry O'Sullivan © FAO GLOBEFISH 2007 |
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