Fisheries

Several processing facilities shut down

Three major seafood processors in Alaska announced plans to sell processing facilities or temporarily close them for the upcoming season. These plants primarily process salmon and cod in the Aleutian Islands and southeast Alaska. Challenging market conditions have forced processing companies such as these to reevaluate their individual business segments and concentrations in underperforming markets.

Pollock market and production trends shift

Pollock "A" season fishing is underway and reports suggest the industry is processing more fish into pinbone-out and deep-skin fillet blocks than surimi (minced fish paste) so far. Producers are refocusing on domestic markets where buyers prefer fillet blocks. Cheap and abundant Russian supply, high inventory levels in Japan and a strong U.S. dollar have reduced demand in international markets where consumers often prefer surimi. Prices for blocks appear favorable while those for surimi remain unsettled.

Salmon inventories are falling

Anecdotal reports suggest salmon inventories are depleting ahead of the upcoming season; however, it remains unclear how much inventory carryover there will be. Persistently elevated interest rates are incentivizing warehouses to move products despite low prices.

U.S. government to purchase Alaskan seafood

USDA will purchase $150 million in pollock and salmon in the second half of 2024 as part of The Emergency Food Assistance Program (TEFAP). Increased demand from USDA may put some upward pressure on prices.

Import ban on Russian seafood may negatively impact some producers

Tighter restrictions on Russian seafood imports, generally considered positive for the industry, may negatively impact U.S. producers who rely on China for secondary processing. Chinese processors’ chain-of-custody infrastructure (the equipment and processes required to track products, including their originating country) is underdeveloped and may not reliably differentiate between fish from Russia and other countries. Most of Russia’s exports are processed in China.