Norwegian herring exports to Russia plunge despite shortage and high demand

In January - September 2008 the total export of herring to the Russian Federation amounted to 120,455 tonnes, down 2.3 times from the same period of the year 2007 (279,889 tonnes), reports http://www.fishnet-russia.com/ (https://www.fishnet.ru/) with reference to official figures of the Norwegian Seafood Export Council.

The dramatic decline has happened in a situation when the demand for herring on the Russian market has been increasing. Notably, the price of herring of all sizes has been either stable high or rising. The herring of the new season will be bought up by large traders before the vessel enters the port.

More specifically, the total amount of whole round herring exported to the Russian market decreased to the level of 85,541 tonnes in the first nine months of 2008 in comparison with 221,621 tonnes of the same item in the year 2007. Meanwhile, the export volume of frozen herring fillets dropped to 34,914 tonnes in comparison with 58,038 tonnes in the first nine months of 2007.

As for price trends, the total average price of the herring products has stayed at the level of USD0.88 per kilo, while the price of frozen herring fillet grew to USD1.21 per kilo, up 9% from the USD1.11 per kilo in the 2007. At the same time the price of frozen whole herring decreased from USD0.81 in 2007 to USD0.75 per kilo in the first nine months of 2008.

According to Russian traders, as per the third week of October 2008 the frozen fish market has been marked by continuous shortage of herring of all sizes and although the fishing season in Norway has been going on there has been not enough herring supply in Norway to saturate the demand for this species especially of such popular sizes as 300+,350+ and 400+.

The herring 300+ of the new season from Norway has been offered on the Russian market from RUB30.00 per kilo landed St. Petersburg, while the herring 350+ was marketed at RUB36.50-40.50 and the herring 400+ was sold at RUB48.50 - 55.00 per kilo.

Norwegian herring freshfrozen fillets 6 - 10 were offered at a price RUB49.50 - 55.00 per kilo, landed in St. Petersburg.

Belarus

According to NSEC data, total export volume of herring products supplied to Belarus from Norway amounted to 11,585 tonnes in first nine months of 2008, down 43% of the previous year level.

In the first nine months 2008 the Norwegian exporters supplied 5,534 tonnes of frozen herring fillets to Belarus, that almost twice less than during the same period of the year 2007. The decrease of supplies has been accompanied by the growth of prices of this fish item. Namely, the frozen herring fillets' price in 2008 amounted to USD1.29 per kilo in comparison with the USD1.08 in the year 2007.

The supplies of frozen whole herring to Belarus in January - September 2008 also decreased from 10,308 tonnes in 2007 to 6,051 tonnes in 2008. The average price per kilo of this fish item has also increased.

Ukraine

According to NSEC, total export volume of herring products to Ukraine in the first nine months 2008 decreased to 59,987 tonnes from 99,3774 tonnes level in the same period of 2007.

The export volume of frozen herring fillets to Ukraine amounted to 9,921 tonnes , decreasing from the amount of 10,214 tonnes in the year 2007. Frozen whole herring imports to Ukraine from Norway came down from 89,159 tonnes in the first nine months of 2007 to 50,065 tonnes in the same period of 2008.

Norwegian Export of Herring products to Russia, Ukraine, Belarus, January - September 2008

Herring quotas

It is expected that the herring quota of 2009 will be increased slightly. There are still 282 000 tonnes to catch this year and the catches the last two months 2008 have amounted to ca. 193 000 tonnes.

Norwegian herring quotas (MT)

Most of the catches and exports take place in October, November, December, January and February, as the large fish harvested during this period is of the best quality. In summer smaller catches of North sea herring usually take place. In this situation, the largest herring is mostly exported as frozen whole, while the smaller herring is exported as fillets/butterflies.

Norwegian Overall Export of Herring per product and month