Supermarkets have divergent ways of handling this year’s spike in wild and farmed seafood prices, which are driven by higher fuel and feed costs. Some have raised their prices slightly and shifted the type of seafood offered, while others are simply eating the higher costs and carrying the same fresh variety they always have.
Seafood department executives tell SeaFood Business that wholesale seafood prices have risen 8 to 20 percent over the past year. Across the country, as fresh seafood retail prices rise, sales are dropping, according to Chicago-based consulting firm the Perishables Group. For the 52 weeks ending May 1, U.S. retail seafood prices rose around 6.5 percent, while sales volume dropped by 4.5 percent. And, for the first quarter of 2011, average retail prices on seafood spiked 9 percent.
Prices of 13 of the top 15 categories of finfish increased during the year that ended May 1. Some of the most notable increases include fresh Atlantic salmon, which spiked by 16 percent in price and experienced a corresponding 21 percent drop in sales volume, says Steve Lutz, executive VP of the Perishables Group.
In addition, the volume for all crustaceans plummeted 26 percent for the year ending May 1, likely due to an average price increase of 15.7 percent across the category.
“Lobster and crab had been pretty cheap the previous few years. Now that those products are snapping back to historical pricing levels or higher, it is having a significant impact on volume,” says Lutz.
Meanwhile, the price of tilapia increased 7 percent while volume declined 2 percent. Catfish prices increased by 6 percent and experienced a corresponding 7.7 percent decrease in volume. Some retailers note a higher rate of increase in wholesale prices of farmed finfish compared to wild fish.
So, how are U.S. supermarkets handling the significant changes in pricing?
Click here to read the rest of the feature, which appeared in the August issue of SeaFood Business magazine.
