Big cuts to quotas for New England groundfish in 2013 are forcing buyers to look elsewhere for fish — and may even lead to huge impacts on the region's scallop fishery next year.
Groundfish landings were down 20 percent in 2012, while prices increased 15 percent, and with more cuts on the way to cod and flatfish quotas set for 2013 due to federal stock assessments, the situation is only going to get worse, says one longtime industry participant.
One example is yellowfin flounder, which has a 2013 quota of 215 metric tons. How much of a cut is that? The industry executive says fishermen have already caught one-third of the 2013 quota in November. “So you can understand how drastic of a cut that is,” he said. “That's going to involve the scallop industry because they need yellowtail as a bycatch. It could happen the scallop fleet is shut down because of yellowtail bycatch.
“The boats will be tied to the docks. It's that real. This is no scare tactic of what might happen, this is what will happen.”
Buyers and processors will look to Pacific cod to pick up the slack, and fresh cod landings from Iceland also could rise as a result. “It's going to push more people into that market than the domestic market,” he said.
Besides quota issues, one seafood buyer for an East Coast supermarket chain says Superstorm Sandy disrupted the supply chain, as many boats weren't fishing due to problems caused by the massive storm that socked the East Coast in late October. That has led to crazy price fluctuations, he said.
“I'm paying USD 7 for cod one day and USD 11 the next week. I'm paying USD 11 or USD 12 for gray sole and lemon sole,” the buyer said. “The price is cheap when they come in, then the pipeline is empty and prices go up. It's a vicious circle.”
Despite the price rollercoaster, the buyer says his stores are trying to limit price changes at the counter, since customers would tend to think they are being gouged. “To drop the price USD 2 or USD 4 then go right back up is more adverse than just dropping it USD 1 or USD 2 and then coming back,” he said. “There's weeks when that part of my business takes a hit on margin, and weeks where I do a little bit better.”
As a result, he's considering a switch to cod from Norway and Iceland, which can guarantee him a more consistent price. “I brought in a couple of sample orders, I put about six stores on it, and so far the stores are raving about it,” he said.
On a positive note, the industry executive says haddock should be in plentiful supply next year, as the massive 2010 year-class grows to the legal size that will allow fishermen to catch them. “Hopefully next year we can expect a large amount of haddock being landed,” he said.
The most recent price reports have fresh large cod landing in New England for about USD 8.50 a pound, haddock coming in at around USD 7, gray sole at USD 10, and large flounder at around USD 7.25. Single-frozen cod fillets from Norway and Russia are running between USD 3.50 and USD 4.25, depending on the size, while double-frozen cod from China is pricing in the mid-USD 3 range. Single-frozen haddock out of Iceland is selling in the mid-USD 4 range, while double-frozen haddock fillets are running between USD 2.60 and USD 2.75 a pound.
