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Snow crab prices are rebounding from the bottom, Canada has increased quotas, and U.S. demand remains weak

 Last Update: 2022-10-19
 Source: Internet
 Author: User

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Industry insiders said that although Alaska canceled most of the quotas for king crab and snow crab in 2022-23, coupled with the US government's import ban on Russian crabs, merchants have to consider some realities, Canadian inventories are at a high level, and U.
S.
demand is too weak
.

This year, Canada's two largest producing regions (Newfoundland and Labrador and St.
Lawrence Bay) approved snow crab quotas totaling 82,989 tons, a 33 per cent
increase from last year.

In the first eight months of this year, the United States imported 37,965 tons of snow crabs, down 30% year-on-year, and imported $934 million, down 38%
year-on-year.
Among them, 33,716 tons of frozen snow crabs were imported from Canada, an 11% decrease from the same period last year (source: NOAA).

In 2022, US snow crab imports fell off a cliff, with imports from Russia falling by 79% year-on-year in the first eight months, Norway by 76%, and Greenland by 48%.

Crab trade expert Les Hodges cautioned that looking at it now, U.
S.
import demand in 2022 is unlikely to reach the overall level
of 2021 (64,237 tonnes).
High-cost inventories carried over since 2021 and weak sales have prevented many dealers and retailers from making new purchases, which, combined with the current economic situation, inflation and changes in consumer behavior, create a very different market
.

The good news is that snow crab prices are bouncing
back from the bottom.
The Urner Barry price index shows that the price of 5-8 ounces of Canadian NL snow crab was $7.
85-$8.
10/lb on October 11, up about 10% from a month ago (September 8, $7.
15-$7.
40/lb), but still down 57% from $16.
80-$17.
05/lb on January 11; The price trend of 8-10 ounces is similar
.

Hodges said that the price of Russian snow crab remains low, and major importers in the United States, including Sysco, PFG, US Foods and other large companies, have been reluctant to purchase Russian stocks, and Russian crab has had to enter the secondary distribution market
.

Since June 23, the United States has suspended all imports of Russian crab, and some of the shortfall has been filled
by Canadian products.

In the king crab market, Russian stocks are gradually depleted, so many Norwegian king crabs have recently flooded into the United States
.
On October 4, the Norwegian Seafood Board held a presentation in New York City, where 20 Norwegian suppliers exchanged business cards
with American customers.

According to Hodges, Norway's 2022 quota for king crab is only 1,964 tons, and the product is exported to 16 countries
.
If U.
S.
importers are prepared to buy Norwegian king crab in large quantities, they must compete
with other countries.

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