Good supply of squid worldwide

After many years of low catches, 2006 has been a positive year for squid production, especially in the South West Atlantic. As a result, imports in all main importing countries were up with regard to 2005. Prices went down in the first half of the year, and have recovered somewhat in the second half of the year.

China main player in squid business

China is the main importer of squid worldwide, most of which goes into the re-processing industry for export to the Japanese market. In the first eleven months of 2006, some 260 000 tonnes were imported into China, which is 53% more than the corresponding 2005 figure. China also changed countries of origin of its squid. While in 2005, the main suppliers were the two Koreas, in 2006, Peru and the USA sent significant quantities of squid to China. Exports from both countries more than doubled in 2006. The increase of Argentine squid exports reflects higher transhipments of squid caught by Chinese vessels in Argentine waters in 2006.

Chinese exports of squid did not reflect the huge increases in imports. They grew only slightly by 15%, which means that an important part of the imports stayed inside China. It is interesting to note that while imports of Chinese re-processed squid into Japan declined in 2006, the USA reported strong increases.

The value addition by the Chinese processing industry becomes clear when looking at the value of trade and the trade balance. In 2005, total imports of frozen squid were US$ 166 million, while exports were in the range of 220 million, a net value addition of US$ 60 million. In the first eleven months of 2006, however, the export value (US$ 215 million) was US$ 4 million short of the total imports: the end of the Chinese squid re-processing industry? Probably not, as Chinese exporters were awaiting better demand in the Japanese market, which normally is during the Year End festivities. Nevertheless the unit value of squid exports from China declined sharply in 2006, US$ 2.15/kg, down from US$ 2.45/kg in 2005.

Higher squid imports into all markets

Squid imports into Japan were slightly up in 2006, when compared to last year. This was mainly due to higher imports from South America. Total imports during the last year should thus have reached 67 000 tonnes, the highest level in recent history. Prices in the Japanese market went down somewhat during 2006, reflecting higher availability. Coldstorage holdings of squid were faintly higher in 2006 than in 2005, but overall the squid market in Japan looks very mature.

(1000 tonnes)


USA becoming a major player

As already discussed in length under the China chapter, the USA is exporting to China an increasing quantity of squid and in exchange importing processed squid from China. As result of these re-exports, exports of squid increased by 30% in the first eleven months of 2006, while imports grew by 21%. Almost half of the US squid imports come from China, but also other Asian countries, such as Thailand and India expanded their presence on the US market. Exports from the USA to the Japanese market declined in recent years, this squid is rather exported to China, processed and then sent to Japan.

European market strong, and not dependent on China

Italy is a major squid market, with imports showing an increasing trend to reach 93 600 tonnes in 2005. The whole of 2006 is expected to have exceeded this record, with total imports close to 100 000 tonnes. Main supplier of squid to the Italian market continues to be Spain with 28% of the total market. Thailand, shipping small squid, frozen in vacuum packs, has expanded its market share in recent years, and is largely responsible for the higher Italian squid imports. Italian squid imports from Argentina depend on the performance of the squid catches there, and thus they went up strongly in 2006. Squid prices in Italy went up in the closing months of the year.

Most of the Spanish squid imports are in reality squid catches by the Spanish fleet, transhipped in ports of the South West Atlantic. In 2006, about three quarter of the imports were of this origin. The “real” squid imports are thus only 60 000 tonnes per year. India is by far the main supplier of squid to the Spanish market. It is interesting to note this fundamental difference between the Italian market, where Thailand is an important supplier, and Spain which relies more on Indian product. The quality of the Indian product has improved in recent years, and is not inferior to the one from Thailand. Peru, which used to be an important supplier of squid to the Spanish market, has lost ground. Probably in years of abundant catches in traditional squid fishing grounds, the Spanish trader returns to the long-established and better product.

Future uncertain, but not bleak

As always at this time of the year, there are speculations on the next South West Atlantic fishing season. The world market of squid will heavily depend on this. However, it is still too early to make any balanced forecast. In addition, the impact of the mild El Niño on the Peruvian giant squid fisheries also will have an impact on squid trade. Demand for squid seems strong in all markets, with China and the USA increasing their domestic consumption, while the traditional markets (Japan and the Mediterranean) stay strong.

By Helga Josupeit

© 2007 FAO GLOBEFISH