Hake Market Report - January 2007

Positive trend in Spanish and Italian frozen hake imports during 2006

2006 looks set to have been a positive year for frozen hake imports in both Spain and Italy, two leading European hake markets. This trend follows a drop in imports in both countries during 2005 due to weaker landings in a number of supplying countries. Last year’s increases were not however shared with France which saw lower import volumes during the first nine months of the year.

Spanish imports boosted by increase in volumes from Argentina

Spain is Europe’s premier hake market with annual imports (chilled and frozen) of over 150 000 tonnes. Following declines in frozen volumes in 2005, imports picked up during 2006 and full year figures for last year are now likely to show an increase on 2005. Trade figures for the first nine months of 2006 show frozen hake imports up 8%, to 80 000 tonnes, compared with the same period the previous year. The increase covers the three principal product categories: whole/h&g (+10%), fillets (+1%) and mince (+28%).

Last year’s increases followed from higher sales from South America, notably from Argentina and Chile which both benefited from stronger landings during the January-September period. In contrast, volume imports of Cape hake, which continues to experience resource difficulties, maintained a negative trend with a decline over 2005 levels. Despite its volume decline however, Namibia remains the leading frozen hake supplier in both volume and value terms to the Spanish market. At the same time, Argentina significantly increased its share of imports with strong increases in all three product categories.

In the frozen fillet category, Spanish imports from Argentina increased by over 60% to 11 000 tonnes during the January-September period last year. The Argentinean share of total imports jumped from 18% during the first nine months of 2005 to 29% last year. Namibia’s share, on the other hand, fell from 66 to 55% following a 16% drop in supplies. Namibia fared better in the whole/h&g category with volumes increasing by over 30% last year to almost 9 000 tonnes. Argentina benefited from a similar percentage increase while its share of imports in this category increased from 17 to over 20%.

Increased Italian hake fillet imports from South America

Increased sales from South America also boosted Italian frozen hake imports during the first nine months of 2006. A 6% increase in total volumes compared to the same period in 2005 followed significant increases from both Argentina and Uruguay which more than balanced decreases in imports from South Africa and Namibia. Spain, the other major frozen hake supplier to Italy, saw volumes unchanged on corresponding 2005 levels.

Last year’s increase in Italian imports covered all three product categories: whole/h&g (+6%), fillets (+5%) and mince (+43%). In the key fillet category, Argentina consolidated its number one position with a 31% increase while its share of total Italian fillet imports jumped from 36% to 45%. Uruguay moved into second position following a 33% increase while South Africa dropped to third position as a result of a 42% decline in volumes. The other African supplier, Namibia, also suffered a drop in supplies with volumes down 15% to just over 1 000 tonnes. Namibia’s and South Africa’s share of Italian fillet imports declined from around 27% in 2005 (9 months) to 17% last year. Finally, Italian imports from Spain, the fourth supplier, increased modestly by 7%.

Lower sales from the Russian Federation hit French fillet imports

In contrast to both Spain and Italy, frozen hake volume imports into France declined, -11% to 11 500 tonnes, during the first nine months of 2006 compared with January-September 2005. In line with the other two countries, however, the value of French imports increased, +12% to €28.3 million. The decline in French volume imports was due to a drop in fillet imports, volumes of whole/h&g and mince increasing. In the fillet segment, the decline followed a fall in imports from the Russian Federation along with smaller decreases from Argentina and South Africa. These declines more than balanced increased fillet imports from Namibia.

Stable dollar prices going into 2007

For 2006 as a whole, indications from the European Price Report pointed to an increase in dollar import prices for frozen hake fillets of South American origin. In euro terms, the trend was more stable due to the relative strength of this currency. Initial indications for 2007 point to stable dollar prices for European importers compared with prices reported during the last months of 2006.

Gerry O’Sullivan

© FAO GLOBEFISH 2007