Japanese fish-paste makers are getting squeezed, with their raw material costs rising but facing reticence from consumers and company executives alike about raising prices for their products.
The main sources for imported surimi in Japan are Alaska pollock from North America and golden threadbream (itoyori) from Southeast Asia.
Alaska pollock fishing has two seasons, and Japanese trading companies negotiate prices with U.S. suppliers twice a year. The Nippon Keizai Shimbun reported the import price of high-quality surimi, such as FA-grade, was around JPY 610 (USD 5.54, EUR 4.69) per kilogram this spring during in Alaska’s A season – the highest price since the fall season of 2010. This was mainly due to a temporary reduction of catch quotas in Alaska. Between 2011 to 2016, prices ran around JPY 500 (USD 4.54, EUR 3.84) per kilogram, before starting a gradual climb back to the JPY 600 (USD 5.45, EUR 4.60) level. In the current B season, most of the fish being caught have been small, resulting in poor yields and reduced processing efficiency.
Meanwhile, Japanese Customs data shows lower grade itoyori surimi prices have been fairly steady at around JPY 300 to JPY 350 (USD 2.73 to USD 3.18, EUR 2.31 to EUR 2.69) per kilogram since 2015, showing there is not a lot of room for fish-paste makers to substitute itoyori for the American product. That can further been seen as Japan’s import volumes have trended down as more product has been consumed in China and Southeast Asia.
Nonetheless, Japan imported 10.8 million kilograms of itoyori surimi valued at JPY 3.8 billion (USD 34.5 million, EUR 29.3 million) from January through May of this year, ahead of the amount for the period in the previous two years. Consumption of kamaboko and chikuwa (roasted surimi tubes) in Japan has been strong due to more Japanese falling into a “nesting” consumption pattern of eating at home. Unlike whole fish or even fillets, fishpaste products can be eaten as they are with no additional preparation. As Japan’s bars and restaurants close early due to government measures to combat COVID-19, people are enjoying snacking and drinking at home instead, leading to a rise in chikuwa sales. But consumers expect to get it at reasonable prices and most producers do not plan price hikes.
Higher logistics costs have also played a part in raising costs for Japan’s fish-paste makers. Around the world, shipping rates have skyrocketed due to soaring demand, a shortage of containers, ports working at capacity, and too few ships and dock workers.
Photo courtesy of Chris Loew/SeafoodSource
