In terms of the 2007 TAC, the Agriculture, Livestock, Fishing and Food Secretary (SAGPyA) set the figure for hubbsi at 340 000 MT, e.g. 10% lower than in 2006 (385 000 MT). Despite this reduction, it is not foreseen that captures will be significantly affected by TAC changes, given that last year they were barely higher than the quota set for this year, and were 30 000 MT below the maximum set for 2006. This follows the recent trend shown by this resource which has not tended to reach the TAC levels (see the graph below).

According to recent studies, the state of the Argentinean hake resource is pretty fragile with a reduction in the number of juveniles, as well as a lower reproduction biomass. There is concern about this fragility, and according to reports made by the National Fishing Investigation and Development Institute (INIDEP), the negative impact due to the reduction in the recruitments will be observed in 2007 and even more strongly in 2008. This seems to be confirmed by the first figures of landings corresponding to January 2007 that show a strong reduction in captures, in fact, the lowest level in the last five years. On another subject, the concern about the situation of hake in 2006 was also reflected in the creation of a Commission for the control of landings, in order to reduce under-declaration and be able to have, in this way, a better control of catches.

Exports

Argentinean exports showed a positive trend in 2006 with increases in both volume and value terms. The value of exports grew 20.7%, mainly boosted by an increase in the value of exports of hubbsi hake, which increased by 23%, with its share of total exports at 85%. On the other hand the growth in volume exports was more modest at +2.3%. A 5% increase in hubbsi exports and a 24% increase in exports of “other hake products” were balanced by an 8% decrease in exports of southern hake and a 9% reduction in volumes of hoki. The stronger value growth is reflected in an 18% growth in the unit value of Argentinean hake exports. This trend was observed in all species, although with uneven rates. Unit values of exports of hubbsi, hoki, southern hake and other hakes, grew by 17%, 20%, 7%, and 18% respectively.

The category with the best performance was fresh fillets. Exports of these products grew by 91.3% and 61.3% in terms of value and volume respectively, followed by “other hake products”, which grew by 31.2% in terms of volume and 39.2% in terms of value. Fresh fillets are produced entirely with hubbsi hake. Likewise, the unit value showing the biggest increase was fresh whole and H&G hake which grew by 27.1%.

Whole and H&G products had, in general a decrease in the exported volume, both in the fresh category (-10.3%) as in the frozen category (-0.8%). These reductions contrast with a growth in values, +14% for fresh whole and H&G products and 17.8% for frozen products. In the latter, as can be observed in the chart, all species, excepting hubbsi hake, had negative results both in volume and value.

As for fillets, they are the main exported product, accounting for 76.7% of the income generated by hake exports, and 66.3% of the exported volume. The significance of this category is basically due to exports of frozen fillets, which represents respectively 76.5% and 66.2% of total export values and volumes. The main destinations for the sales of frozen fillets (in terms of value) were Brazil (21%), Italy (12.2%), Spain (11.5%) and the US (10.2%).

Regarding the total exports, of US$ 365 million traded during 2006, 16.3% was sold to Brazil, 15.3% to Spain, 8% to the US and 7.9% to Germany. Sales to these countries consist basically of fillets, followed by frozen whole and H&G hake, but with a much smaller share.

Outlook

Perspectives for hake in 2007 are uncertain, given that reports about the state of the resource are not very encouraging particularly in relation to hubbsi as reflected in the TAC reduction. Initial indications are not positive, although it is still too early to early to make firm predictions for the year.

Chile

The negative trend in Chilean hake landings continued during 2006; meanwhile exports in 2006 remained almost unchanged, with growth in the exported value and a slight reduction in terms of volume.

Landings

Chilean landings of hake last year were 8.4% lower than in 2005, totalizing 145 280 MT, compared to the 158 649 MT in the previous year. This is in line with the trend of the last four years, in which captures of hake have been systematically reduced, as can be observed in the graph below.

This reduction is basically due to the decline in landings of the main species, hoki hake (Macruronus magellanicus), captures of which have declined almost to half the level of five years ago. A weak trend is also evident for common hake (Merluccius gayi), which however has a lower share in total catches, and between 1999 and 2003 maintained a positive catch trend (even surpassing in some years the captures of hoki). In contrast, landings of southern hake (Merluccius australis) have remained stable at around 25 000 MT, reaching in some years peaks of about 30 000 MT.

Exports

Chilean exports grew 6% last year in value terms, while volume declined marginally by 1% implying a 7% unit value increase compared with the previous year. These results, however, hide uneven trends regarding the different exported categories. The categories with a positive change included whole and H&G hake, both in fresh and frozen forms, and “other hake products”, also both fresh and frozen. This latter group is in fact the one with the strongest result during the year.

The main export category was frozen whole and H&G hake which accounted for 30.8% of total values and 28.8% of volumes; followed by frozen fillets which represented 26.5% and 29.8% respectively of total values and volumes.

Regarding the different species, the structure remained unchanged from 2005 to 2006. The main species is southern hake with a share of 51.6% in terms of value and 36.3% in terms of volume, followed by hoki hake (32.7% and 43.5% respectively of the total value and volume) and common hake (respectively 15.7% and 20.1%). The main buyer of southern hake products was Spain, which accounted for 21 672.2 MT worth US$ 70.31 million, followed by Portugal, which bought only fresh products, 8 309 MT worth US$ 6.72 million. The main destination for hoki was Japan at US$ 8.87 million (3 969 MT), followed by China (4 826 MT, US$ 7.72 million) and the US (3 321.5 MT, US$ 7.59 million).

As mentioned above, the main product category was whole and H&G frozen hake. Sales of these products increased in both value and volume, 10% and 12% respectively. The highest unit value in this category was recorded for southern hake.

In contrast, the trend for fillets was negative with lower exports in both the fresh and frozen categories, although an increase in the unit value of fillets, +13% for fresh fillets and 7% for the frozen ones can be noted.

In the category “other frozen products”, the most important group was surimi (despite the fact that sales declined in both values and volumes), followed by pieces, frozen blocks and minced hake. In fact this latter product showed the strongest growth rate, +459% in terms of value.

The overall outcome for fresh products was a decrease in the exported volume (-6.1%), while the exported value remained almost unchanged (+2.1%) implying an 8% increase in the unit value of exports.


Other countries

In Uruguay and Peru a trend similar to that of other countries of the region can be observed, growth in the value of exports and fall in the volume, implying a growing unit value of exports. Notable in both countries is the lack of chilled products and a concentration in frozen fillets.

Uruguay

Uruguayan exports during 2006 were composed totally of frozen products, according to preliminary information. The value of sales to foreign markets increased by 5.4%, and following the general trend observed last year for hake exports in South America, unit values also increased, +24.7%. The most important category was frozen fillets, which increased both in volume and value terms. This category accounted for 62.4% of the volume and 77.9% of the value traded during 2006. Assuming that the category “other frozen products” also includes added value fillet products, such fillets with sauce and breaded fillets, then the share of fillets increases from 67.5% to 84.4%.

In the fillet category, the most important product group was skinless and boneless fillets which accounted for 18.8% of the value and 76.2% of the total volume of exported fillets. The second place was taken by skinless fillets (20.1% and 22.1% respectively). The uneven growth trends of the different categories resulted in an overall increase in unit values of 25% although unit value growth for each category was about 11%.


Peru

Last year Peruvian exports remained almost unchanged in terms of the generated income, but the volume of trade fell 13%, implying a growth in unit value of around 16%. Sales to foreign markets during 2006 consisted only of frozen products, basically fillets which represent 98.9% of the exported value. Within this group, the most important category were skinless and boneless fillets in blocks (54.7% and 59% of total volume and value), followed by skinless fillets with bones in blocks (23.4% and 21.1%).

The main buyer of Peruvian hake products during 2006 was Germany. This country accounted for 4 244 MT, 57.41% of the total, worth US$ 7.53 million (60.8% of total exports). The second destination in importance was Colombia, accounting for 11.8% of the total volume, mainly interleaved skinless fillets.

Javier López, INFOPESCA

© FAO GLOBEFISH 2007