Russian suppliers of Olyutorsk herring planning big offensive onto European Russia

April 28, 2012 12:52

A potential 10-fold increase of Russia's TAC for Olyutorsk herring, which thanks to its high quality is regarded an ideal alternative for Atlantic herring imported as raw material for further processing, has made Russian fishermen plan to boost sales on the domestic market, reports http://www.megafishnet.com/.

More specifically, Russia's Pacific herring quota 2012 has been approved at 310,000 MT and the nation's Federal Fisheries Agency has worked out grounds for an increase of the TAC of Olyutorsk herring from 13,000 MT to 130,000 MT. Thus, the total herring quota 2012 may amount to 427,000 MT. Under such conditions fishermen from the Russian Far East are planning to send a big part of their Olyutorsk herring harvest to the domestic market where it can enjoy good demand from producers of smoked and salted products. (Olyutorsk herring has fine flesh; it is large and fat and has higher quality than Atlantic herring and other Pacific herrings. As compared to Pacific herring giving more than 10% of waste in the processing cycle, Olyutorsk herring gives no more than 5% of such waste.)

Average producer price for Olyutorsk herring amounts to RUR 56.00-58.00 per kilo, delivery to European Russia adds some RUR 7.00-8.00 to the price. Therefore, the average wholesale price of this Pacific herring should amount to RUR 63.00-65.00 per kilo. If the import duty is left on the current level (such decision has already been taken by the Subcommission on customs tariffs and non-tariff regulation) the price gap between Olyutorsk herring of the Russian origin and Atlantic origin of the Norwegian origin will amount to RUR 4.00-10.00 per kilo, if the import duty is decreased, it will go up to RUR 15.00 per kilo. In this connection, President of Vladivostok-based Alaska Pollock Fishermen's Association German Zverev has recently sent an open letter to First Deputy PM Viktor Zubkov in which he asks not to nullify the import duty for Pacific herring.

Alaska Pollock Fishermen's Association unites 45 fishing companies based in the Russian Far East which all together enjoy the right for capture of 56% of the nation's Pacific herring quota. According to the Association's statistics, in 2011 herring sales on the Russian market totaled 500,000 MT which was 50/50 contributed by domestic and imported herring.

Average wholesale price of frozen Atlantic herring of the Russian origin at present amounts to RUR 54.00 per kilo, and RUR 50.00 per kilo of Norwegian product.

In 2012 raw fish stock of Atlanto-Scandian herring will go down with the Norwegian quota cut by 100,000 MT and the Russian quota - by 30,000 MT.

The decline of raw herring stock will result into to a price rise. According to the Association's forecast, Atlantic herring of the Russian origin will cost RUR 57.00-58.00 per kilo, Norwegian herring - RUR 53.00-54.00 per kilo.

In the above situation importers and consumers are those who lose the game. Importers will get higher margins in case of import duty cancellation, and consumers will be facing higher prices for this popular product.

As far as FISHNET knows, circles interested in import duty cancellation have not yet accepted the defeat and the fight for the decision's revision goes on.

Average wholesale prices for Olyutorsk herring in Moscow in 2011

Product

Year 2011, month

Trader

Average price in RUR per kilo

Сельдь Олюторская

February

VOSTOKRYBPROM OOO

54.50

Dalprominvest OOO

48.51

RybPromExport OOO

56.00

Sadra-I OOO

58.00

TALEX HOLDINGS

54.00

Average price

49.54

March

Dalprominvest OOO

48.50

TALEX HOLDINGS

54.25

Average price

48.70

April

Gulfstream ZAO

56.70

Dalprominvest OOO

48.50

RybPromExport OOO

53.75

SoyuzPromSnab OOO

56.50

Average price

50.46

May

Gulfstream ZAO

55.98

Dalprominvest OOO

48.50

RybPromExport OOO

54.00

TALEX HOLDINGS

49.00

Average price

50.61

June

Gulfstream ZAO

55.50

Dalprominvest OOO

48.50

TALEX HOLDINGS

46.00

Average price

48.68

July

Gulfstream ZAO

55.50

Dalprominvest OOO

43.75

TALEX HOLDINGS

43.17

Average price

47.89

August

Gulfstream ZAO

54.50

Dalprominvest OOO

42.50

TALEX HOLDINGS

43.00

Average price

46.72

September

Dalprominvest OOO

38.00

Dary moray-NN OOO

50.00

TALEX HOLDINGS

48.68

TPK Irna OOO

44.00

Average price

45.86

November

Dary moray-NN OOO

52.00

Average price

52.00

Average annual price

48.99

Note 1: Average prices are calculated for all offers through the month with no regard for the product's size range.

Note 2: The table has been compiled by analysts of FISHNET Ltd (http://www.megafishnet.com/) from price-lists of selected traders.

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