Hakodate Natori Co. Ltd, a major processor of squid snacks including layered cheese and squid strips, is is struggling due to high material prices, the company has reported.
Low squid stocks in Japan due to abnormally temperatures sent prices up, hurting profits.
On 6 February, the company released a revision of its full-year forecast for the fiscal year through March 2018 that predicted a 47.6 percent decline in consolidated net income. About 30 percent of the company’s products come from squid.
Japan’s catch of Pacific flying squid last year was about 20 percent down from the previous year, and was the lowest on record. The causes are thought to be colder seawater in spawning areas leading to poor survival of young, and overfishing.
Japan’s Fisheries Agency announced on 12 January a squid catch quota for the fiscal year ending 2018 of 97,000 metric tons. The figure, announced, is down by 30 percent from the FY 2017 quota, and is also the lowest on record.
