Octopus trade impact from weak Japanese demand.

Octopus production and trade went down in 2006, mainly due to weak Japanese demand. As a result prices declined sharply. Despite low landings, prices are likely to further decline in coming months.


Octopus prices reasonable

The Japanese octopus market is reportedly calm, though the main consumption period is approaching. On the other hand, Mauritanian octopus producers try to raise price levels by about US$ 0.40-0.50/kg. This is quite a surprise in view of limited buying interest and relatively good landings in the December 2006 period. It has yet to be seen how traders will react to these price expectations, however it is likely that Japanese buyers will accept at least in part the new price hike. At present, octopus prices are considered reasonable, and some price increases can be passed on to the consumers.


Less cephalopods under new EU-Mauritania agreement

In the new EU-Mauritania fishing agreement, fishing for cephalopods – for the EU presently can fish with 55 vessels, will be reduced by 30%. Overall, the payment for the new agreement is foreseen to represent about one third of Mauritanian GDP, a figure which shows the importance of the fishing agreement.

Octopus prices on the Japanese market continued to stabilize and normalize in the last quarter of the year, this stabilization should lead to better demand in coming months. In 2006, however, imports into the Japanese market continued to decline. Only 48 400 tonnes were imported during this period, which is 15% less than in 2005. Mauritania continues to be the main exporter of octopus to the Japanese market, but reduced catches in 2006 are reflected in a 15% decline in exports. On the other hand, Morocco managed to keep its exports stable, however, the country is still a far way off the performance in 2000 or 2001, when the country exported more than 50 000 tonnes of octopus.

As a result of lower imports, coldstorage holdings of octopus in Japan were very low. At the end of Janaury 2007, only 17 300 tonnes, which compares to a “normal” level of 25 000 tonnes in previous years. All these indicators could lead to some price increases in coming months, despite a bleak overall trading environment. On the contrary, octopus prices in the Japanese market have experienced continuous declines in the course of 2006 and early 2007.

More octopus goes to European market

Some African octopus exporters concentrate exclusively on the European market, which is rather a novelty. Apparently consumption and price levels reached in Europe are better than those in the traditional market that is Japan.

Imports of octopus into both Italy and Spain expanded in 2006, when compared to 2005. In 2006, Italian imports of octopus reached 51 200 tonnes, or 2 500 tonnes more than in 2005. Moroccan exports expanded by just this amount, and the country is now back as the top supplier to the Italian market. Some other suppliers, such as Mauritania, Senegal and Mexico experienced sharp setbacks in the course of 2006. The expansion of Viet Nam as an important exporter of octopus to the Italian is an interesting feature, worthwhile watching in the future. Obviously the product coming from this country is smaller and lower priced than the top octopus coming from the Central Eastern Atlantic.

Octopus prices on the Spanish market have increased recently, after a decline which had lasted for almost two years. As in the Italian market, imports were high in 2006, but demand seems to be even stronger. Morocco accounts for more than half of all Spanish octopus imports. Also Mauritania managed to increase its octopus exports to the Spanish market.

Positive signs for 2007

First indications of the new octopus season after the autumn closure point to a higher production level, which should keep markets well supplied. In the short run, however, prices are likely to go up to balance the overall shortage experienced in the closing months of the year. The Japanese market is likely to recover in 2007, as the overall economic situation looks positive, and octopus consumption is highly influenced by the economic environment.

By Helga Josupeit (GLOBEFISH)
© FAO GLOBEFISH 2007