Prices of Norwegian coldwater prawn (Pandalus borealis) are expected to increase this year thanks to strong demand from its core European markets and reduced quotas in Greenland and the Gulf of Maine, as well as an anticipated reduction in Canada’s total allowable catch (TAC).
Canada, the world’s biggest supplier of coldwater prawns, reduced its TAC in 2009, 2010 and 2011. Its quota last year was 134,534 metric tons. Meanwhile, Greenland, which is the No. 2 supplier, has reduced its TAC to 117,400 metric tons this year. Incidentally, it will slash the total catch further in 2013, to 90,000 metric tons, in line with its pursuit of Marine Stewardship Council (MSC) certification.
Norway received MSC certification for its Barents Sea coldwater prawns in April this year. This certification applies to around 20,000 metric tons of prawns, which is approximately 80 percent of the fleet’s total catch. It should be noted that Norway is the second country, after Canada, to secure the eco-label for its coldwater prawns.
While the Barents Sea fishery is already certified by Friend of the Sea and KRAV, exporters have suggested the MSC status could also contribute to price increases. They feel it will help increase the penetration into pro-MSC markets like Germany, the Netherlands and the United Kingdom.
Coldwater prawn prices have been increasing by around 25 percent annually over the past two-and-a-half years, largely as a result of high demand for shell-on, cooked shrimp. According to sources, wholesale prices for shell-on, cooked prawns of 120/150 grades at the start of the second-quarter of 2012 had been edging up closer to the pre-Christmas/New Year peak of around EUR 4 (USD 5.18) per kilogram.
Norwegian coldwater prawn fishing is a year-round industry, taking place along the Norwegian coastline and in the Barents Sea, with most landings between May and September. The prawns grow slowly in temperatures ranging from 0 degrees C to 8 degrees C, which Norwegians say give the shellfish their firm flesh and sweet taste. The stock is shared with other nations, but the Norwegian fleet, which comprises 89 vessels, harvests around 90 percent of the total catch.
Sweden is Norway’s biggest market for coldwater prawns. According to Ove Johansen, market analyst-prawns and shellfish with the Norwegian Seafood Council (NSC), Sweden imported 1,352 metric tons last year, with a value of EUR 9.4 million (USD 12.2 million). In 2012, the volume and value to this market is projected to increase to 1,436 metric tons and EUR 10.5 million (USD 13.6 million), respectively.
The United Kingdom is Norway’s No. 2 market for coldwater prawn products. Last year, it directly imported 704 metric tons, valued close to EUR 4 million (USD 5.2 million). This year, the volumes have been projected to slide slightly to 674 metric tons, but the value will increase to more than EUR 4.9 million (USD 6.4 million).
The NSC has reported that exports to the UK market in the first quarter of this year were down 0.6 percent to 503 metric tons from 506 metric tons in the first quarter 2011. The value had, however, increased 25.6 percent, it said.
Finland follows closely behind the United Kingdom in export terms. In 2011, the Fins imported 601 metric tons valued at EUR 3.5 million (USD 4.5 million). The country is expected to ramp up its imports to 613 metric tons this year, with a value of EUR 4.7 million (USD 6.1 million).
With the market conditions indicating a purple patch for the Norwegian coldwater prawn industry, the only foreseeable danger is that prices increase to a level that puts off European buyers.
