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Aug. 15, 2 p.m. PST
Global cruise line plans seafood menu overhaul
Big seafood supply changes are in the works this summer for Seabourn, a global cruise line. The company is switching out over half of its seafood products for more sustainable options as it races to meet a 100 percent sustainable sourcing goal by year’s end.
Which species and suppliers willl make the cut is yet to be revealed, but smoked salmon from farmed sources is safe, a company source told IntraFish.
The company serves a wide range of seafood on its six boats, which hold between 208 to 450 guests each -- shellfish, sea bream and salmon are some of the items the company currently features on its menus. Lobster is one of its most popular dishes, with 400 pounds of the crustacean served per week on Seabourn's Odyssey, Sojourn and Quest ships.
There are signs the company's interest in issues beyond its bottom line is not new. It made Ethisphere's list of the world's most ethical companies in 2012, along with Safeway, Whole Foods, Marks and Spencer, Target, Costco and Wegman's. Patagonia, which announced plans to start selling salmon jerky this year, also made the list.
Seabourn plans to release more on its plans for seafood supply changes to IntraFish in the coming months.
-- Jeanine Stewart
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July 18, 9.55 a.m. GMT
Job ad hints at Pacific Andes China plans
Pacific Andes is looking for a marketing manager for China, giving an insight into its growth plans for branded seafood sale in Hong Kong and China.
A job advert for a marketing manager for Pacific Andes Enterprises, part of the wider Pacific Andes International Holdings group, gives an insight into the company’s plans to grow a seafood brand in China.
Some of the key responsibilities of the job include:
- China and Hong Kong store set up, promotion and store image building
- Handling product launches in China and develop strategies for branding
- Brand building, brand promotion, brand portfolio and development
- Corporate image alignment and branding guardian
The company is looking for an executive with a minimum of six to seven years in product marketing and communications, preferably in the food or seafood industry.
The applicant should also have “strategic judgement on design of product presentation, product display and retail stores design.”
The applicant needs to speak Mandarin, Cantonese and English and be prepared to travel, particularly to China.
The company did not return requests for comment.
-- Tom Seaman
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July 17, 9.09 a.m. GMT
Outgoing HB Grandi CEO to government: Give industry chance
There is no doubt as to where Eggert Benedikt Gudmundsson, outgoing CEO of HB Grandi, stands on the current turmoil in Iceland over government focus on changing the way the fishing business is run.
The future for the industry “is as bright as it can get, if the government will give the industry a chance,” he said.
“Demand is high and growing for high quality seafood caught in a responsible way in the pristine seas around our beloved island. Only internal fights -- utterly useless -- can block our way to even better prosperity.”
On July 12, IntraFish reported Gudmundsson was on his way to a new role outside of the seafood industry.
The island's fishing industry is currently subject to changes being instigated by Iceland's socialist government.
On June 19, the parliament voted to increase the resource rent from the current amount paid by the industry of ISK 4.5 billion (€28.4 million/$36 million) to a new maximum amount of ISK 12.7 billion (€80.2 million/$101.7 million) to ISK 13.8 billion (€87.1 million/$110.5 million).
“The resource rent is limited to one year and during this time a panel of expert will review the impact on the industry. The resource rent for the industry is estimated to be 12 percent to 15 percent of EBITDA,” said Jon Stefansson, head of research with Marko Partners, a Reykjavik, Iceland-based, seafood-focused, consulting firm.
-- Tom Seaman
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July 16, 9.20 a.m. GMT
Salmon farmer laughs off buyout offers
At present no single Norwegian player in the aquaculture industry is permitted to own more than 25 percent of the total quantity of fish that are in Norwegian fish farms.
The ESA has concluded this is a breach of the right to free establishment.
Hans Petter Meland of Lovundlaks, a medium sized salmon farmer, doesn’t think much of this assessment.
“I think it’s a downright shame if this industry is to be owned by people that sit and twiddle their thumbs and gamble with money,” he told IntraFish.
“Norwegian politicians have worked hard for the past 30 to 40 years to make this a rural industry. If we follow the ESA’s request, we’ll be well and truly on the way to making this into a major international capital project,” he said.
Meland has received many inquiries from international finance institutions keen to acquire Lovundlaks.
“We have received more than 30 such inquiries since the New Year. The last one was dated July 2,” said Meland.
“No, we use them most as a means of entertainment,” he said with a grin.
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July 13, 8.55 a.m. GMT
Adapt to succeed in seafood in China
Being able to adapt to the difference in regional markets is key for success in a country as vast as China, said a Spanish executive who has been based there for the last four years.
“China is a very big market, but the regions are very different from one another, and taste also changes, so if you want to be successful you need to adapt, otherwise it will be very hard to be present in the market,” said Jose Javier Fernandez, Shanghai-based Asia Pacific director for Froxa.
Fernandez started in China in a sourcing role, but is now also working on sales in the Chinese market as Froxa looks more to exports outside of the troubled Spanish market.
The potential in China is staggering, he told IntraFish.
Chinese factories are looking more and more to the home market, he said.
They are focusing now on China domestic market; some factories were 100 percent focus on export, now maybe they are only 60 percent for export and 40 percent for the domestic market.”
-- Tom Seaman
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July 12, 2 p.m. GMT
Up and coming Asian players are 'an opportunity and a threat' to US, banker says
US companies looking for a buyer should keep their ears open for Asian companies they may not have heard of before.
These Asian companies are yet unknown in the US business world and “not your traditional Asian players,” Glacier Securities CEO Ignacio Kleiman told IntraFish. “Other players are coming on the market.” Kleiman has been talking with several Asian companies about opportunities to get a foothold in the US market.
These up-and-coming players have access to capital and are “looking to establish a sizeable and solid presence.”
“They want to move from being simple processors and suppliers from oversees to develop a solid foot in the US market,” Kleiman, an experienced seafood-focused banker, said. "This is both and opportunity and a threat to existing players in the US. The new potential entrants can strengthen some players’ market position through capital and more direct access to overseas resource, while they will likely become aggressive competitors in the medium-term."
As for other regions with acquisition opportunities, European companies are good candidates, as well as companies in the southern hemisphere, he said.
The southern hemisphere is also more productive than it was in the past.
Flexibility is key to getting the right acquisition, Kleiman said. “Many times, companies just want to have control, and while you may be able to get control, over time it is much more important to find the right partner -- and experienced, good, solid partner.”
-- Jeanine Stewart
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July 10, 12.15 p.m. GMT
Morrisons, Grants clean up at UK awards
Retailer Morrisons and its smoked salmon supplier Grants scooped the top honors at the Meat & Fish Retailer Awards in London.
WM Morrison Supermarkets was named meat and fish retailer of the year at the annual SuperMeat & Fish Awards on July 5.
Morrisons also won best overall product for its rope hung smoked side of salmon, which is supplied by Maryport-based Grants Smokehouse.
You can see all the award winners here.
-- Tom Seaman
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July 9, 9.15 a.m. GMT
Young’s switching to MSC pollock for surimi
Young’s Seafood is switching from threadfin bream to MSC-certified Alaska pollock for the raw material in its surimi sticks, the company told IntraFish.
Young’s Seafood is shifting its sourcing from threadfin bream to Marine Stewardship Council (MSC)-certified Alaska pollock for the raw material in its surimi sticks.
On response to a tweet from NGO Blue Planet Society asking about the catch methods used for threadfin bream, Yo
ung’s responded with a tweet stating:
“It has recently come to our attention that the fishing methods at this fishery do not fully meet our Fish for Life principles ...
“We’re in the process of withdrawing from the use of threadfin bream & using sustainable sources of Alaska Pollock instead.”
In a statement sent to IntraFish, the company expanded on this shift.
“The majority of surimi products sold across the world are made from whitefish species such as threadfin bream (Nemipterus spp.) captured by trawl fishing methods in South East Asian waters such as the Gulf of Thailand, the Andaman Sea and the South China Sea,” Mike Mitchell, technical and CSR director at Young's, said.
“In line with our Fish for Life programme, we regularly review our product portfolio and the fisheries we source from. As part of this process, we went into the field and investigated the threadfin bream fishery first hand.
“Our investigations highlighted a number of issues. The information gained from these investigations has enabled us to re-assess the sustainability status of surimi and, guided by our Fish for Life program, we have taken the decision to take action,” said Mitchell. “In line with our commitment to source more of our raw materials from MSC-certified sources, we have decided to reformulate all of our Young’s surimi products with sustainable, MSC certified Alaska pollock from the US.”
This process is currently underway, he said.
“Young’s never takes a decision to withdraw from a fishery lightly as we believe that in many cases, greater positive change can be achieved through on-going engagement – we have a detailed set of rules under our Fish for Life program which guides us in this decision making process. In this case, whilst we will continue to exert our influence with fishery managers in the region, the most appropriate course of action for Young’s Seafood is to switch to MSC-certified Alaska pollock.”
-- Tom Seaman
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June 29, 13.50 p.m. GMT
Sajo Group, Dongwon potential buyers for Aussie abalone farmer
Asian giants Sajo Group and Dongwon Fisheries are among interested parties to take a closer at Australian abalone farmer Jade Tiger Abalone, which is up for grabs.
Sajo Group, a South Korean fishery and transportation company, is taking a closer look at Jade Tiger Abalone, to examine the possibility of a bid, MergerMarket reported.
Sajo Group has been looking to grow through acquisitions, focusing not only on fisheries but also companies in the livestock industry. It will have internal cash of KRW 63.9 billion ($54.8million) to fund potential buys after completion of the initial public offering (IPO) of its subsidiary Sajo Sea Food this month.
Dongwon Fisheries, a listed South Korean tuna giant, was tipped as a possible Korean suitor of Jade Tiger Abalone too.
The potential deal value of Jade Tiger Abalone is estimated to be around $20 million (€16 million).
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June 28, 13.15 p.m. GMT
Buyout duo drop Iglo bid
Blackstone and BC Partners will not table a fresh bid for frozen foods group Iglo, leaving owner Permira in control of the subject of one of Europe's largest buyouts and eyeing a refinancing to pay itself a hefty dividend, people familiar with the situation said.
The decision by Blackstone and BC Partners not to come back with a higher offer ends the chances of what would have been the largest buyout of this year and underlines the fragility of new deals in what remains a patchy private equity deals market, reports Reuters.
Permira rejected BC Partners' and Blackstone's €2.5 billion ($3.1 billion) joint bid earlier this week, after it fell well short of the firm's €2.8 billion ($3.5 billion) price expectation.
Click here for more, from Reuters.
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June 27, 09:20 a.m. GMT
Pescanova looks for $60 million from Chile IPO
Pescanova will look to raise €46 million ($58.3 million) from the IPO of its Chilean salmon farming arm, Acuinova Chile.
The IPO is likely to take place in the first quarter of 2013, according to article in the Spanish press.
Acuinova Chile will issue around 520 million new shares as part of the IPO.
The company, headed by Jose Gago, aims "to finance the development plan for the coming years," which includes capital expenditures for the installation of marine fish farms.
Acuinova-owns two plants and two farming areas.
With the IPO wants to fund the construction of two breeding centers in the regions of Aysen and Magallanes.
It is in this same area, south of the country, which already has Acuinova aquaculture centers.
Pescanova also recently announced an investment its shrimp farming and processing in Nicaragua of over €57 million ($71.8 million)
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June 27, 09:20 a.m. GMT
'More excitement than we'd like'
Norwegian clipfish exporters are apprehending the impact of the economic recession in southern Europe for their sales.
After record exports in May, sales in June were at a low, exporters recently told IntraFish's sister fishing publication in Norway, Fiskeribladet Fiskaren.
The comments echo those made by the Norwegian producer Nergard, which exports dried, salted and clipfish -- also called klippfisk/bacalao -- made from cod, saithe and haddock to Spain, Portugal and Italy.
In its annual report, Nergard says consumption of clipfish dropped by 13 percent in Portugal in 2011, causing storages to build up towards the end of the year. Saithe clipfish performed better it said, but a lack of raw material caused pressure on margins.
For 2012, it warned that the climate in Spain, Portugal and Italy could further affect purchases.
“The ongoing financial crisis in Europe and especially in southern Europe create significant uncertainty over the extent to which it is possible to obtain reasonable income in whitefish production in 2012,” the report said.
“There is high uncertainty in the markets and it is difficult to obtain acceptable sales agreements,” it said at another point. “The whitefish year 2012 could be exciting -- perhaps much more exciting than we like.”
-- Eva Tallaksen
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June 25, 05:00 p.m. PST
Trident deal leaves East Coast plant up for grabs
The East Coast processing plant Trident is leasing from Capital Recovery Group is one of two plants that went up for grabs when Brooks Food Group went under.
A 78,000 square foot processing facility in Monroe, North Carolina, also became available at the time. Capital Recovery Group bought it from Brooks along with the Bedford, Virginia, plant Trident is leasing.
Capital has not done any advertising on the facility, but nonetheless, companies both inside and outside the seafood industry have expressed interest, Gary Katz, vice president of Capital Recover Group, told IntraFish.
"We have received a number of calls on Monroe," Katz said.
The Monroe plant is slightly smaller than the 90,000 square foot Bedford Plant but has similar processing capabilities:
It can process value-added chicken products and custom breaded, battered frozen specialty food products including meat, cheese and vegetables.
In response to questions on whether Trident considered purchasing the other processing plant, Marketing Director Randy Eronimous told IntraFish the company has no comment at this time.
Capital Recovery Group purchased all assets from Brooks Food Group, excluding the company itself. Those assets include real estate, machinery, equipment, intellectual property and raw materials both the Bedford and Monroe processing plants.
Trident purchased all of the Bedford assets, Martha Collier, Chief Financial Officer of Capital Recovery Group, told IntraFish.
-- Jeanine Stewart
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June 22, 12:36 p.m. PST
Bristol Bay season may be late
The Bristol Bay salmon run could peak later than usual this year.
Fishermen are seeing signs that the run may be as much as a week behind last year, a source familiar with the matter told IntraFish. The run typically peaks over the fourth of July.
People in the industry are talking about a possible 20 to 40 cent decrease in prices from last year, but price agreements typically do not firm up until the end of July.
-- Jeanine Stewart
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June 14, 2:30 p.m. GMT
Processors: Tariff quotas increase volatility
The EU's decision to scrap tariff suspensions for certain seafood imports destined for processing in favor of ATQs (autonomous tariff quotas) is bound to increase uncertainty for processors, the head of a European processing association said.
Unlike suspensions, which are indefinite, ATQs are set for a period of three years at a time.
"So with an ATQ you don’t know what’s beyond the horizon; maybe you’re investing into something that will change in three years, you don’t know," Gus Pastoor, who heads the European association of fish processors, importers and exporters AIPCE-CEP, told IntraFish on Wednesday.
ATQs also encourage speculative buying, as processors rush to buy their raw material at the beginning of the year to avoid paying the 20 percent duty, he said.
Pastoor gave the example of tuna loins, which are subject to the 20 percent duty after the first 15,000 metric tons of imports.
"I think these amounts are exhausted in a few weeks’ time. So in January it’s already filled for the whole year -- because everyone wants to buy it," Pastoor said.
“So first of all you have uncertainty about the tariff you have to pay, because you could be too late. Second, you get speculation as people are buying huge amounts at the beginning of the year because they know they can get a low tariff. So it’s creating another point of uncertainty.”
The European commission is currently working on a final proposal that will determine ATQs, or tariff duties, for all seafood imported for processing into the EU. A decision could be imminent, although no date has been given.
-- Eva Tallaksen
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June 12, 11:42 a.m. GMT
Contradictions on cod
I posted a comment on the articles in The Sunday Times and The Daily Mirror on cod being overfished and didn’t include all of the response from Phil MacMullen of Seafish, because I wanted to post it in full.
Here it is:
“On the same day I read, "Norway, Iceland cod stocks booming," "Cod will vanish in 10 years," "EU: fish stocks improving," and "EU...could decide whether species go on hurtling towards extinction."
“Whilst I could subscribe to much of the medicine prescribed in The Sunday Times ‘rescue agenda’ I fear that much of the diagnosis is based upon a rather muddled interpretation of the source material; hence the contrasting headlines with other publications.
“One very important principle is to look at trends over time rather than cherry pick averages or single year “snapshots.” Another is to acknowledge that just as ‘The last decade has seen a relentless succession of reports suggesting stocks of wild fish are in “catastrophic decline,” it’s also true to say that more scientifically-based reports have shown a series of success stories in better management and stable and rebuilding stocks.
“We do have problems, but we also have plenty of very effective solutions. The process of transition is usually political but the fishing industry also has a role to play.
“Where does this take us?
“Well the Commission’s own report manages to confuse ‘overfishing’ and overfished (they are quite different things) but even so the 10 year average of stocks overfished is 79 percent whereas the trend is strongly and consistently downwards and the level is currently 47 percent.
“But, for whatever reasons, we don’t have the data to assess the status of around 65 percent or our “managed” North East Atlantic stocks and that, extraordinarily, are on a rising trend!
“As we don’t have the resources to increase “scientific” assessment, this represents a great opportunity for fishermen to contribute data on the commercial and non-commercial catches that they take.
“The target of achieving maximum sustainable yield (MSY) by 2015 was caveated by the UN declaration with “where possible.” This recognises that the marine environment is complex, often unpredictable and fish don’t always behave themselves! Let’s keep the date in mind but be realistic and accept that the direction of travel is more important than a hard target.
“Likewise the strategy for banning discards: the hard targets for groups of species over the next few years also need to recognise that there are some fisheries that will require more patient application of technology and psychology over a longer timeframe.
“That’s not a cop-out, it’s a recognition of one of the Common Fisheries Policy’s current failings; prescriptive and centralised management. More sensitive local measures should be the preferred option.
“Finally, all the available evidence from areas about to be designated as conservation zones suggests that, even where levels of static gear fishing are high, those areas enjoy good conservation status and full ecosystem function. The case may be made for some “no-take zones” but if management measures are based upon evidence rather than assertion then these are likely to be the exception rather than the rule.”
-- Tom Seaman
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June 1, 1:15 p.m. GMT
Importers seek out Faroese, Iceland mackerel
It seems despairing European and Norwegian mackerel processors are not the only ones to have kept a watchful eye on their new Faroese and Icelandic competitors.
In the past month, two importers have contacted IntraFish to ask us for contacts to buy mackerel and other pelagics from Iceland and the Faroe Islands.
Both importers are from huge pelagic markets -- one from Russia, and one from Egypt -- and both already had ties with Norwegian and European exporters, they said.
-- Eva Tallaksen
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June 1, 9:10 a.m. GMT
Samherji CEO blasts Icelandic media article about Africa fishing
Thorsteinn Mar Baldvinsson, CEO of Iceland-based fishing and processing giant Samherji, says reports in the Icelandic media about his company‘s African fishing operations are incorrect.
“We are not making any comments to DV´s allegations. What is written in DV is more or less wrong and built on unsubstantial information,” he told IntraFish, in an email.
“There is no ship connected to Samherji currently fishing in Western Sahara´s waters. There was one ship, registered in Poland, with fishing rights negotiated between EU and Morocco, fishing very little in 2010 and 2011, just one ship,” said Baldvinsson. “That’s all we have to say about these matters.”
A translation of the story from DV can be seen below:
Samherji catching 30,000MT of mackerel in Namibia
Icelandic fisheries company Samherji acquired in February 30,000 metric tons of fish quotas off the coast of Namibia in southern Africa after Namibian authorities decided this year to increase quotas by 100,000 metric tons.
Samherji trawlers Heinaste and Sirius, registered in Poland, are fishing on the grounds, reports Icelandic newspaper DV.
Sirius left Las Palmas in the Spanish Canary Islands on May 22, to fish from fishing Walvis Bay, Namibia.
Samherji’s fishing off Africa is carried out through its subsidiary in the Canary Islands, Katla Seafood.
The company owns and operates eight factory trawlers engaged in fishing off the coast of West Africa, mainly off the coasts of Morocco, Western Sahara and Mauritania.
The main fish species Samherji harvests are horse mackerel, sardine and sardines.
Samherji is increasingly starting to look to other African countries, such as Namibia and Senegal, said DV.
According to DV, between 30 and 40 percent of Samherji’s income is derived from fisheries off West Africa, worth more than ISK 22 billion (€136 million/$168.7 million) in 2010, and DV points out that the profits from this fishery accrue therefore to an Icelandic company rather than to Namibia, a country that was still in receipt of overseas aid from Iceland until 2010.
-- Tom Seaman
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May 21, 9:22 a.m. GMT
Broker raises Thai Union target price on expansion plans
A Thailand-based brokerage boosted Thai Union Frozen Products' target share price, on expectations the company will look for more deals in Europe.
Kasikorn Securities raised the target price for Thai Union to THB 64 (€1.6/$2) from THB 60 (€1.5/$1.9) with a neutral rating, on expectation the firm's expansion plan will help boost its yearly revenue.
Shares in Thai Union, the world's largest canned tuna producer, were trading at THB 71.75 (€1.8/$2.3), their lowest in nine days. The share price fell to THB 71.50 (€1.8/$2.3) at one point. The main Thai index was down 1.12 percent.
"We expect the company to grow its revenue by 13 percent to $3.7 billion during 2012 from its continued expansion in sardine and mackerel products," Kasikorn said in a research note, reports Thompson Reuters.
The broker also said the company previously raised THB 9.6 billion (€239.8 million/$307.1 million) in capital from its rights offering subscription, which is likely to be used to buy other seafood brands to enlarge its position in the global seafood market.
"We believe Thai Union Frozen wants to take advantage of the current slowdown in the European Union to acquire good assets," the broker said.
However, Kasikorn said it maintains Charoen Pokphand Foods (CPF) as its preference in the sector due to Thai Union higher current trading price.
Shares in CPF were down 2.85 percent to THB 37.75 (€0.94/$1.2).
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May 10, 9:22 a.m. GMT
'There is no ban on Indian exports to China'
Indian media are still abuzz with news of a Chinese ban on Indian seafood exports. However, industry players once again refuted this claim to The Buzz.
There is no need for Indian companies to halt exports to China because things are under control, secretary-general of Seafood Exporters Association of India, Elias Sait, told The Buzz.
“The relevant authorities are sorting out the procedures, and Indian exporters can still sell their products to China with no problems,” Sait said.
It appears the news was sparked by China’s decision to roll out a new health certificate form for Indian seafood exports.
Nayan Lodhari, marketing manager of Gujarat-based exporter Poonam Seafoods, told The Buzz companies have been given notice to fill out information for a new health certificate that was implemented by China’s Administration of Quality Supervision, Inspection and Quarantine (AQSIQ).
According to him, each consignment from India would have to be accompanied with this new certificate, and companies are starting to prepare for this.
He said it won’t be a problem for Poonam Seafoods, which sends 50 percent of its exports to China, because the company has already an EU-approved plant that follows strict standards.
Another trader confirmed that no ban was in place. "It takes time for changes in regulation to implement, but there have been no problems for Indian exports going into China," said a trader who declined to be named.
The new regulations implemented by AQSIQ will take effect on June 1 this year.
-- Liyana Low
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April 30, 14:15 p.m. GMT
Russian Sea buys Russian companies?
Russian Sea Group is about to acquire three Russian companies including JSC Gidostroy, said a media report.
The deal with Gidostroy -- which led the 2009 MSC certification of the Iturup Island pink and chum salmon fishery -- was reportedly announced on April 26, said a news items published on the online stock brokerage Zecco.
Russian Sea has also agreed to acquire the Russian fishing company Okeanrybflot and another group called LLC Sofko, said the report.
Russia is on national holiday until May 2, so The Buzz was unable to verify the reports or reach the companies for comment.
According to the Russian maritime shipping register, Okeanrybflot is based in Petropavlovsky-Kamchatskiy in the Russian Far East and owns 20 vessels, including four refrigerated cargo ships and 14 fishing boats (full list here).
The register shows two different results for Gidostroy -- according to one result, the group is based in Yuzhno-Sakhalinsk, also in the Russian Far East, and owns six vessels including three refrigerated cargo ships. The other result lists Gidostroy as based in Kaliningrad, a Russian enclave between Poland and Lithuania, and owning two crane ships.
No results show up for LLC Sofko.
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April 18, 12:45 p.m. GMT
UK chippy gains Chinese fame
A UK fish and chip restaurant has reportedly become a huge hit with Chinese visitors.
The Regency Seafood Restaurant in Brighton, south England, has become hugely popular among Chinese tourists after a Chinese celebrity visited the shop and posted about it on the social networking site Renren, The Argus reports.
Chinese fans have now even created a Facebook page in tribute to the shop, and one visitor told the manager that the chippie had become “the most famous seafood restaurant in China,” the regional newspaper said.
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April 18, 11:20 a.m. GMT
Findus Group owner loses another senior partner
Another senior partner has reportedly left Lion Capital, the private equity which owns Findus Group and sold MW Brands to Thai Union Frozen Products last year.
According to Financial News, George Sewell left the firm last month “by mutual consent.”
The news website adds that Ken Smialek, a Lion Capital executive working on the Findus business, had left the company -- a news first reported by IntraFish earlier this month alongside news of the departure of two Findus Group executives.
Sewell “was a key figure in the formation of Lion following the firm’s disaffiliation from US buyout house Hicks, Muse, Tate and Furst in 2005," Financial News said.
The departures of the two men “reflect a wider generational shift in the industry, as people who founded private equity businesses in the 1980s begin to hand over to successors,” it said.
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April 18, 10:50 a.m. GMT
US builds case against Sanford
Sanford is aware a Filipino relief chief engineer who served on the San Nikunau for a short time has entered into a plea agreement with the United States Department of Justice, the company said in a statement.
“Sanford has not seen the plea agreement and was not privy to his conduct nor would it have condoned his conduct,” the company said. “Sanford will continue to vigorously defend the allegations.”
On Feb. 10, IntraFish reported two senior crew members of the New Zealand-based fishing vessel San Nikunau have been charged by federal prosecutors at the federal court in Washington D.C.
This is the same court hearing the US Justice Department case against Sanford, owner of San Nikunau, detained last year in the territory by the US Coast Guard for allegedly discharging oily bilge into the waters of American Samoa.
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April 16, 12:45 p.m. GMT
FT suggests 'Black Cod Index'
Modeling on The Economist's Big Mac Index, the Financial Times has suggested a fishy alternative -- the Black Cod Index.
"Our chosen metric is the price of black cod with miso, a signature dish in all 30 of Nobu's restaurants worldwide," the UK newspaper said.
"We’ve chosen Nobu because it’s a kind of Hard Rock Cafe for the peripatetic global jetset, so should factor out social differences. And we’ve chosen black cod with miso because the raw ingredients cost approximately 25 cents no matter where they’re bought," it said.
The resulting price comparison shows that the Russian miso is the most expensive (150.3 percent overvalued), while the Bahamas one is the cheapest (13 percent overvalued).
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April 16, 12:45 p.m. GMT
Russian fisheries head talks aquaculture, fishing in China
Andrey Krainiy, the head of Russia’s Federal Agency for Fisheries Rosrybolovstvo, discussed potential fishing and aquaculture cooperation with China during his four-day visit to the country.
In Beijing this Monday, Krainiy was scheduled to meet with China’s deputy minister for agriculture to discuss potential Sino-Russian cooperation in aquaculture, said a statement by Rosrybolovstvo.
As part of the talks, the Russian delegation will visit freshwater aquaculture farms located in the metropolitan district of Beijing, the agency said.
Krainiy is due to visit more companies tomorrow, including a pharmaceutical company in Dalian which produces drugs from sea cucumbers and other aquatic organisms.
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April 13, 12:21 p.m. GMT
Duncanson terminated as Farne director
On April 4, we reported William Duncanson was no longer managing director of Farne Salmon & Trout, the UK-division of Labeyrie Fine Foods -- formerly Alfesca.
The company is yet to confirm or comment. However, an alert on UK companies registry Companies House popped up just now to state Duncanson's status as a director of Farne, a supplier to retail giant Tesco, has been terminated.
-- Tom Seaman
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April 13, 11:30 a.m. GMT
Russian salmon, Pacific Andes threats: pawns in wider game?
The Russian veterinary agency Rosselhoznanzor’s warning that it could plug all imports of fresh fish from Norway comes just days ahead of its planned meeting with the Norwegian Food Safety Authority (NFSA).
This odd timing -- one would think Rosselhoznanzor would wait for the outcome of the meeting before thinking of imposing sanctions -- suggests other motives might be at play.
One Russian seafood executive suggested three hidden factors could be behind this latest threat.
One is the continuing assertion that Rosselhoznanzor is working in collusion with the top importers -- including Russian Sea Group, Atlantic-Pacific, Tehnolat and Severnaya -- to make life difficult for exporters selling to smaller Russian importers.
“Today Sergey Dankvert, the head of Rosselhoznanzor, said he had received bad analysis’ results for 15 Norwegian plants and said that either NFSA would have to shut them, or Rosselhoznanzor would shut off everybody. I will not be surprised if those 15 are not key partners of the top importers such as Russian Sea,” this source told The Buzz.
Then there are wider geo-political factors --“Russian politicians are just playing a game with Norway in fishing, but also in oil and gas etc. The salmon import ban is just a joker in this game,” this source said -- and finally, domestic politics. “Dankvert is trying to garner some political capital before re-appointments take place in our government.”
Domestic politics have also been mentioned to The Buzz as a potential factor behind Russian authorities’ threat that it would investigate Pacific Andes over its ownership of Russian pollock quotas.
According to this same source, that threat could just be a way for Andrey Krainiy, the head of the Russian Fisheries Federal Agency, to ruffle his feathers ahead of the political reshuffling expected to take place after Vladimir Putin takes over again in May.
“There is speculation over whether Krainiy will keep his post in the new government that Putin will put together. It’s the same everytime a new government is formed here: agencies are in the process of determining who will stay in power after Putin becomes president, and so everyone is trying to make noise and show off their power to win Putin’s favors.”
Even a Norwegian official pointed to the role of politics in the salmon ban threat. “It’s all really about Russian politics,” Trond Davidsen of the Norwegian Seafood Federation told the Norwegian IntraFish news website.
More on Russia's investigation into Pacific Andes to follow soon on IntraFish.
-- Eva Tallaksen
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April 13, 9:11 a.m. GMT
Thai Union: Big potential for canned tuna in China
The Chinese market for canned tuna is currently small, but has massive potential, said Thiraphong Chansiri, president of Thai Union Frozen Products.
Thai Union has the number one tuna brand in China -- Century -- in a joint venture (JV) with Philippines-based Century Canning.
Although tuna is considered a main staple for western consumers rather than Asians, the company has not overlooked the commercial potential of the mainland Chinese market and is keeping abreast of market developments, said Chansiri.
“With the emergence of more western restaurants, namely sandwich chains and pizza chains, consumption is picking up,” he told The Buzz. “Currently, it also becomes more broadly accepted by local rice and noodle eaters. Therefore, the potential demand of tuna in China is too big to be ignored.”
The same market development happened in Taiwan and South Korea, he said.
Thai Union is looking to educate consumers in China about the benefits of eating tuna and introducing recipes using tuna as the main ingredient to locals, he said.
“Also, we have to provide the best quality products to the market as well as performing as a good strategic supplier to industrial users, such as restaurant chains. New product developments, which would adapt to local flavors and formats, will also be another important strategic move.”
Tuna is essentially positioned as a healthy source of protein with strong product integrity on food safety and actually a very convenient diet.
The JV with Century Canning was started in 2004. Thai Union is the world's largest tuna canner, with Sea Value, also based in Thailand, in second place.
Demand for shrimp in China, Thai Union’s second most important product category, is booming, he said.
“Due to higher shrimp consumption among the Chinese, China has however turned to become a shrimp-importing nation. Thailand’s export of shrimp products to mainland China is anticipated to be constantly higher.”
-- Tom Seaman
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April 12, 8:15 a.m. GMT
Russian fisheries official to visit China
The head of Russian federal fisheries agency Andrey Krainiy is due to visit China shortly, and may discuss the issue of Pacific Andes' alleged pollock quota ownership during the trip, a spokesperson told The Buzz.
Krainiy will spend four days in Beijing and Dalian next week, the Rosrybolovstvo spokesperson said.
The spokesperson did not say who Krainiy will visit or what the purpose of the trip is. However, the trip comes only days after the agency said it would investigate Pacific Andes, the owner of China Fishery Group, over its alleged ownership of Russian pollock quotas.
Krainiy will "maybe" speak about this issue during his trip, the spokesperson said, adding that more details will come out soon.
-- Eva Tallaksen
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April 11, 11:15 a.m. GMT
Loch Duart founder to Staniford: Thanks for bringing customers together
Nick Joy, founder of UK salmon farmer Loch Duart, said anti-salmon farming campaigner Don Staniford’s recent efforts actually brought the company’s customers together.
In a blog entry headlined “Loch Duart's 'Sustainable Salmon' Scam Exposed,” Staniford makes several claims against the company, driven by its plans to expand into Canada.
This actually had the opposite effect to the one intended, Joy told The Buzz.
“We were contacted by customers from all around the world, giving us support,” said Joy. “That was actually rather nice.”
As for dealing with Staniford, Joy said dialogue is not even possible.
“Don is a paid anti-salmon farming campaigner,” he said.
See below for more on Staniford’s latest efforts.
-- Tom Seaman
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April 10, 3:52 p.m. GMT
The Don of anti-salmon farm campaigning hits out at Loch Duart
Don Staniford, the anti-salmon farming campaigner deported from Canada recently, hand delivered a letter to the headquarters of UK salmon farmer Loch Duart, in protest at its plans to set up in his former adopted home.
The letter, from Karen Elfendahl-Taetz and Karin Cope of the Association for the Preservation of the Eastern Shore, said:
"80-90 percent of the citizens of the Eastern Shore are against Loch Duart coming here.”
Staniford, famous for his flowing locks and exhaustingly enthusiastic pursuit of the salmon farming sector on both sides of the Atlantic, had vowed to target Norway and the UK, where he was born, after being deported in February.
Click here for more, from The Global Alliance Against Industrial Aquaculture blog.
-- Tom Seaman
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April 10, 3:52 p.m. GMT
Lion moots shelling out further £80 million keep Findus afloat, reports The Grocer
Lion Capital is pondering a further £80 million (€96.9 million/$126.9 million) to pay down debts in Findus Group after last week’s €22.8 million ($29.9 million) cash injection, The Grocer understands.
Findus averted a breach of its covenants in the final quarter of 2011 following the private equity backer’s cash injection, and after negotiating with lenders to waive certain financial covenants relating to the fourth quarter of in 2011.
Click here for The Grocer story.
A top frozen sector exec is sceptical about Lion doing this.
"It will be an option in the restructuring discussions. Who knows, but I doubt it," he told The Buzz.
IntraFish broke the story of the cash injection on April 5.
We also broke a story on several top Findus execs and a Lion Capital exec having left the companies.
Iglo Foods Group, a competitor for Findus Group, is up for grabs and sources told IntraFish a China-based food giant and a US-based private equity group are interested.
----------------------------------------------------
April 5, 4:30 p.m. GMT
Crown Prince eyes Mexican supermarket sector
US canned seafood company Crown Prince is looking to Mexico for expansion opportunities. The company, which launched two new sardine products last week, sees more opportunities to sell its canned products south of the border.
"What sparked the interest (in Mexico) for us is the conventional grocery in the US is really a fading part of the market," Manager of the Natural Product Division of Crown Prince Seafood Andrea Linton told The Buzz.
"A tremendous amount of grocery sales is done in stores like Costco and Walmart. Business in places like QFC, Safeway -- that sort of thing, that type of conventional grocery store -- is actually doing less and less business."
Her comments confirm IntraFish's recent report that the channels for selling seafood are shifting.
"Mexico has a huge market for canned seafood," Linton said.
The canned seafood aisles in Mexican grocery stores are 30 to 40 feet long whereas they are usually about four fee long in the United States, she said.
--Jeanine Stewart
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April 5, 12.15 p.m. GMT
Plugging the Cumbrian gap?
Lion Capital's decision to pump €20 million into Findus Group -- reported by IntraFish today -- could be an outcome of accumulating costs linked to its acquisition of Cumbrian Seafoods' assets, one industry source said.
Keeping up Cumbrian's business is reportedly costing Young's a "fortune," in part due to the costs the several product withdrawals, this source close to the company said.
According to the same source, junior level people at Cumbrian's sites in Seaham and Whitehaven have said that they expect to be kept onboard til July.
-- Eva Tallaksen
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April 5, 9 a.m. GMT
Glenn to run Iglo Group 'whoever owns us'
CEO Martin Glenn has pledged to take his team with him if Iglo Foods Group changes hands, reports The Grocer.
Private equity owners Permira instructed Credit Suisse to put the group, Europe’s largest frozen food operator, on the market with a price tag of €2.5 billion ($3.3 billion) to €3 billion ($3.9 billion), after private equity companies reportedly expressed an interest in the group.
With trade buyers also likely to be interested in the Iglo group, Glenn vowed to stay on “irrespective of the capital ownership of the business.”
Click here for The Grocer story.
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April 3, 4:35 p.m. GMT
GFF kicks off in Chile
Global Fresh Foods, the US chilled packaging producer, has now started operating at its new facility in Talcahuano, near Concepcion in Chile.
The group completed its first sea-freight shipment from Chile to Miami in late February, containing fresh fillets from three large Chilean suppliers produced in late January, the company’s president and founder Larry Bell told The Buzz.
This shipment should go a “long way towards confirming that the industry does indeed have a new fresh logistics option,” he said, adding that a trial to Japan could be in the works.
“We are now 100 percent focused on Chile,” GFF’s CEO Stephen Boord said -- although the eventual aim, he added, remains to be global.
-- Eva Tallaksen
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April 3, 9:05 a.m. GMT
Demystifying shellfish
The chance to “demystify shellfish” was one of the reasons Roy Cunningham left his role as managing director of Young’s Seafood-owned Macrae Livingston for a new role with Macduff Shellfish.
Cunningham, who has been with the Macrae group for 23 years, said his experience of running the Livingston plant, a dedicated supplier for Waitrose, means he feels he can offer something to Macduff.
The idea of bringing shellfish to a wider range of consumers through product development and new processing technology was partly what made the new role attractive, he told The Buzz.
“We can grow the business to the next stage. There is a lot of opportunity in shellfish,” said Cunningham.
“Also, It will be nice to work for a family business that has been built up over many years,” he said.
Cunningham will start with Macduff, which is based in Mintlaw, on April 23.
“I will miss my team at Macrae, they have been fantastic to work with. I am proud of what we achieved with the plant. But it is exciting to have the chance to do it all again, but with shellfish,” he said.
-- Tom Seaman
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April 2, 3:20 p.m. GMT
Young's Seafood: consultations 'ongoing'
Consultations for the jobs of some 500 staff at the factories of Cumbrian Seafoods and Border Laird are ongoing, Young's Seafood, the UK arm of Findus Group, said.
"The consultations at all three former Cumbrian Seafoods sites [Seaham, Whitehaven and Amble] are ongoing and no decisions have been taken at this stage," a spokesperson told IntraFish.
The spokesperson did not give a timeline on when these decisions -- which could part or all of the sites' production shifted to Young's Seafood factories, affecting up to some 500 employees -- are likely to be made.
However, the recent clearance of Lion Capital's acquisition of Cumbrian's assets means that news could emerge very soon.
The consultations could affect some 363 jobs in Cumbrian's main site in Seaham, 112 jobs in Whitehaven and nearly 50 jobs at the Border Laird site in Amble.
Findus is owned by Lion Capital, which acquired Cumbrian's business and equipment from administration on Dec. 5 last year.
-- Eva Tallaksen
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March 28, 1:15 p.m. GMT
Low cod prices good for the species
A source confirmed IntraFish reports that Atlantic cod prices are dropping and Pacific cod is likely to follow. Atlantic cod is down by 10 to 15 percent due to a high level of supply,and while Pacific cod is currently selling at the high level of 3,600 (€2,714) - $3,700 (€2,790) per metric ton, those prices are not likely to last.
The good news for suppliers to the United States and Europe is a lower price point will enhance cod’s standing in the protein market, the source told The Buzz.
“We’re competing with chicken and meat and whatever, so I think it's good thing,” the source said.
And recently, it has not competed very well. In the United States, seafood was the only food category not to grow in sales during the year leading up to August 2011, having decreased by 1.7 percent from the prior year, according to data from Perishables Group.
“This is in good balance, and, of course, if we talk about seafood as a whole, it’s really good that people can get cheap seafood and gradually grow their way into more expensive (seafood) every once in a while,” the source said, adding that an even lower price would be even better, although the most important concern is that prices do not go the other way. “I just hope that they won’t go to the same level they were before. It was far too high. Stability is good.”
-- Jeanine Stewart
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March 28, 11:05 a.m. GMT
Japan tuna giant feels Vietnam lure
Japan's second largest tuna processor, Sojitz Corp, is considering investing to breed tuna in Khanh Hoa, in Vietnam, Viet Nam News reports.
Sojitz, Japan's largest bluefin tuna trader after Mitsubishi, is hoping to cooperate with Vietnamese companies on the project, VNS said.
On March 14 Nicherei Foods, another Japanese giant, invested in a Ho Chi Minh-based food company, Cholimex Foods.
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March 28, 8:23 a.m. GMT
Lion exec appointed as Young's director
Andreas von Paleske, a director of Lion Capital, has been appointed as a director at Young's Seafood, the UK arm of Findus Group (owned by Lion).
"Findus Group has a number of subsidiaries, which Andreas von Paleske has been appointed to in order to formally recognise the current governance structure we have in place," Young's told The Buzz in a statement.
Young's remained vague about von Paleske's appointment and role, but said he has been involved with the business since Lion first bought Findus (at the time Foodvest).
Von Paleske has an MBA from Harvard Business School and was previously employed by Warburg Dillon Read in London where he served in the Energy & Power Group.
-- Eva Tallaksen
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March 27, 16:23 p.m. GMT
Big fish dominance
Jack mackerel catches so far in the South Pacific are looking better than last year, but a worrying sign is that catches have been dominated by very large fish, a fishing executive told The Buzz.
So far the fishing season appears "fairly promising," the source said. However, there is a lot of large fish, and very few of the smaller ones, pointing to a low rate of recruitment.
"The fish are large. Very large. But the Chileans say the fish in their waters are of normal size, so it would be that it will be better as the fish starts moving out to sea."
Countries fishing in the South Pacific recently agreed to cut their fishing efforts this year to 40 percent of the 2010 catches, which would mean a maximum total of 301,500 metric tons.
-- Eva Tallaksen
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March 27, 16:00 p.m. GMT
200,000 metric tons of feed to spare
Marine Harvest’s potential project of setting up a 500,000 metric tons fish feed factory would mean that it would be able to sell roughly a third of that to other producers.
Based on its current production level in Norway, Marine Harvest would likely consume 300,000 metric tons of fish feed annually, Kolbjorn Giskeodegard, analyst at Nordea Markets, said.
This means that if it did set up its own plant, it could sell the remainding 200,000 metric tons to other producers, Giskeodegard told IntraFish’s Norwegian sister publication.
-- Joar Grindheim
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March 27, 15:15 p.m. GMT
Analyst: Marine Harvest feed investment ‘not attractive’
The salmon giant’s plans to look into starting a feed company caused a stir first thing today, with Nutreco’s share price coming down 6 percent. Analysts seem to be negative on the move, on the whole.
David Kerstens, an analyst with UBS, said the move could be a statement to its feed suppliers, who are making hay on high margins, that it is capable of going this way.
An analyst in Norway seems to agree with his London-based counterpart.
Marine Harvest seems to have a need to show it can start its own feed production if feed margins are “too” attractive, said Geir Kristiansen, senior equity analyst with SpareBank 1 Markets.
“It is, however, not likely that Marine Harvest will carry this through, since the investment does not seem very attractive,” he told The Buzz.
Given an EBIT margin of 5 percent the return on invested capital (ROIC) is about 8.5 percent if we assume a total investment of NOK 1.7 million (€224,172/$299,360). It will certainly destroy the dividend case for the foreseeable future.
It cost Ewos NOK 570 million (€75.2 million/$100.4 million) to build a 120,000-metric-ton plant in 2009 and a further 120,000-metric-ton would cost an estimated NOK 190 million (€25.1 million/$33.5 million), he said.
Given that Marine Harvest is able to do the same, a 500,000 metric ton plant would cost about NOK 1.2 billion (€158.2 million/$211.3 million) in investments plus working capital -- about NOK 500 million (€65.9 million/$88 million) -- said Kristiansen.
The idea is interesting and supports the business model of Cermaq and Bakkafrost, said Henning Steffenrud, equity research, with Swedbank First Securities.
Cermaq operates feed division Ewos, in addition to fish farmer Mainstream. Faroe farmer Bakkafrost recently acquired a feed company, Havsbrun.
If the establishment is successful and Marine Harvest is able to capture the expected synergies -- keeping the feed margins in-house -- the strategy makes sense in the long-term perspective, Steffenrud told The Buzz. “From a stock market perspective, we need much more specific information before concluding.”
Although the company now is considering integrating feed into its value chain such a move entails significant investments in plants and research and development, in addition to operational risks, said Kjetil Lye, an analyst with Handelsbanken Capital Markets. “It will be interesting to see how management concludes on this issue when a more detailed study has been completed.”
-- Tom Seaman
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March 24, 13:51 p.m. GMT
Thai giant will process more of its own farmed shrimp
Charoen Pokphand Foods (CPF), the Thai agribusiness giant and the world’s largest shrimp farmer, is processing more of its own raw material in its value-added plants.
The single largest shrimp farming group in Thailand CPF, used to supply a considerable volume of their raw material harvest to the market, said Jim Gulkin founder of Bangkok-based frozen supplier Siam Canadian Group.
“However they currently supply much less into the market for other processors, as their own value-added plants have been absorbing more and more of the harvest,” Gulkin told The Buzz.
CPF is using larger volumes of shrimp in processed items, such as its wanton soup products, but that is not all.
“It is likely that they will increase their own production this year of standard commodity shrimp items --such as EZ peel, CPTO, peeled and de-veined (P&D)."
Gulkin, and several other executives, told The Buzz that Thai farmers are likely to concentrate on smaller sizes this year.
-- Tom Seaman
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March 24, 11:45 a.m. GMT
Fitch: Iglo sale now makes sense
A sale of frozen giant Iglo Foods Group makes sense, said Fitch Ratings, with the ratings agency citing Permira’s acquisition of the group as a leveraged buy-out (LBO) that worked.
The following statement was released by the rating agency in reaction to a Financial Times story on Iglo being up for grabs.
“The potential sale or IPO of Iglo is driven more by the desire of its financial sponsor to finally realize a profit on its investment than any refinancing pressure.
“But if the sale does not go ahead the company will need to start considering options to address its 2013 and 2014 refinancing needs.
“It has been widely reported in the press that Iglo's owner, Permira, has appointed advisors to explore possible sale options. Iglo's un-drawn revolving credit facility, plus the relatively small unamortized portion of its Term Loan A mature in October 2013. The group's larger Term Loan B matures in 2014. We rate Iglo Foods Midco Ltd, the rated entity of the group, 'B+' with a Stable Outlook. A sale now makes sense.
“The financial markets are generally more optimistic than they were three months ago. This should boost the company's valuation and help make both equity and debt financing easier. Also, Iglo has outperformed many of its competitors in the packaged and frozen food sectors.
“In the current market climate it is hard to see Iglo having difficulty refinancing its debt. But with the market volatility we have seen since 2008 nothing can be taken for granted.
“As it stands, Iglo could cover its 2013 maturities with balance sheet cash, but we believe it will need to lock in refinancing before the 2014 Term Loan B matures. Iglo's story is, from a financial perspective at least, evidence of what happens when an LBO works.
“Permira has owned Iglo since 2006, longer than typically planned for an LBO due to the limited exit strategy opportunities presented during the last few years. The company instead adopted a build-and-buy strategy, most recently acquiring the Italian frozen food division of Findus Italy from Unilever. Since the purchase in 2010, which resulted in Iglo's leverage spiking to 5.7x, the group has managed to de-lever.
“We forecast net debt to EBITDA will improve to about 4.0x at the end of 2012. The environment for packaged food producers is characterized by stable underlying demand but offset by continuous pricing pressure from supermarkets.
“Iglo's strong brands have allowed it to outperform the frozen food sector, giving it the strength to pass on increased input prices via supermarkets to customers.
“Management will have to stay on their toes to maintain this advantage as we do not expect keen competition from private label and chilled produce makers to disappear.
“Also, the flip-side of frozen food's resilience in an economic downturn is its limited potential to benefit in an upturn because in some markets, particularly the UK, frozen food is seen by consumers as a low-cost option. Iglo's strategy involves an attempt to change this deep-seated perception.”
The comments are from Caryn Trokie, of the company's New York ratings unit.
-- Tom Seaman
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March 23, 15:45 p.m. GMT
MSC suspension looms for mackerel players
The pessimists will have been proven right -- a failure to reach an agreement over mackerel catches in the North East Atlantic means mackerel players will see their Marine Stewardship Council (MSC) certificate suspended at the end of the week, on March 31.
Mackerel players have been bracing for the suspension for over a year, with mixed reactions about the impact that this would have.
It is the first time that an MSC certificate is suspended due to the failure of a multi-country stock agreement, the MSC spokesperson James Simpson confirmed to The Buzz.
In addition to the large Dutch, Norwegian, Danish and Scottish pelagic freezer trawler groups such as Norway Pelagic, Parlevliet & Van der Plas and W. Van der Zwan & Zn, the suspension will affect a myriad of smaller fishing companies and processors. Another 110 MSC label license holders will also lose their license for mackerel as a result.
The MSC has stressed that the suspension does not translate into a loss of the license and that companies will be able to be re-instated into the program if an agreement is found.
"We will welcome the opportunity to re-instate these fisheries’ certificates once agreed mechanisms are in place to ensure that mackerel catches are at sustainable levels," Nicolas Guichoux, Europe Director of the MSC, had said in a statement in January.
-- Eva Tallaksen
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March 23, 9:30 a.m. GMT
MSC: Nephrops exit does not show drop in Scottish commitment
The exit of a fishery from the Marine Stewardship Council (MSC) program does not mean a drop in commitment from Scottish fisheries, a spokesman said.
On Thursday, a nephrops fishery which had entered into the MSC program under the umbrella of the Scottish Fisheries Sustainable Accreditation Group announced it would exit.
James Simpson, a spokesman for the MSC, said this does not mean a drop in commitment.
“Naturally we are sorry to see the SFSAG withdraw its nephrops fishery from the assessment process. However, we are glad to see the SFSAG reiterate its commitment to MSC certification,” he told The Buzz.
“The SFSAG has been a stalwart supporter of the MSC in Scotland: its saithe fishery is in full assessment and its haddock fishery -- increasingly popular with Scotland’s fish and chip shops – has been MSC certified since October 2010.”
-- Tom Seaman
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March 23, 9:00 a.m. GMT
2012's tuna 'leaders and laggards'
Greenpeace Canada said it would unveil the "leaders and laggards" of the Canadian canned tuna industry on Monday, March 26.
The list, which will rank 14 companies, is the NGO's second annual canned tuna sustainability ranking.
"The ranking identifies Canadian companies leading and lagging on sourcing greener tuna," the NGO said.
"Greenpeace has assessed, scored and ranked 14 companies with well-known canned tuna brands based on the overall sustainability and equitability of their tuna procurement practices and policies."
The ranking release "coincides with a meeting of the Western and Central Pacific Fisheries Commission (WCPFC) in Guam next week, where member countries will discuss management measures to address the overfishing of bigeye tuna and ensure yellowfin tuna stocks are managed sustainably," it said.
The 2011 ranking saw Wild Planet Foods land first place, while Unico ranked last.
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March 22, 9:05 a.m. GMT
Real talk from retail exec: 'Species come and go, industry motors along'
One US retail executive, who didn’t want to be quoted by name, said the way species come and go is “kind of sad.”
Speak
ing with reference to tuna, the executive said the fish is cheap compared to halibut, a species “that until five to six years ago benchmarked closely with tuna.”
As a result, more tuna is appearing on American supermarket shelves.
“Tuna has already become a higher profile purchase preference for the American consumer,” he told The Buzz.
“As costs of other seafood commodities such as the aforementioned halibut and others such as black cod continue to climb, tuna replaces them on the supermarket shelves,” said the executive.
“It’s part of the cycle of exploitation in the marketplace. Popular wild species come and go over time. Twenty-five years ago, Greenland turbot was the darling. Then there was cheap orange roughy for awhile. Halibut had its time in the sun. There were also sea bass, dory, monkfish, perch, snapper, grouper -- all exploited until they became scarce and then fell out of favor due to the expense of procurement or the status of endangered species -- often both.”
“It’s kind of sad, in a way,” he said. “We really should be better stewards of our industry.”
The executive gave a frank assessment of the reality of the way things work.
“There is just so much biomass out there and as an industry we are maximizing whatever we can to generate sales at the price levels demanded by the public,” he said. “It seems flippant to say it, but species come and go while the business motors along.”
-- Tom Seaman
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March 21, 11:37 a.m. GMT
Private equity plans US aquaculture acquisition
Linnaeus Capital Partners -- the private equity group that owns Aqua Bounty and Anglesey Aquaculture -- is working on an aquaculture acquisition in the United States through its aquaculture arm Tethys Ocean, The Buzz has learned.
The target company is an aquaculture R&D company and a deal could be announced next week.
Tethys is currently in the midst of a takeover offer for Dias Aquaculture and owns stake in two other Greek seabass and seabream leaders, Selonda and Nireus. It also recently took over Selonda UK from administration, renaming it Anglesey Aquaculture.
-- Eva Tallaksen
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March 21, 11:37 a.m. GMT
Figures, not facts
Today saw the launch of yet another anti fishing industry report in which the actual facts are faintly visible but in which abstract figures are used to generate a headline which attempts to further sway public opinion against the fishing sector.
Oceana’s statement that “82 percent of species exploited by the European Union fleets are not subject to catch quota limits” indeed seems shocking as a standalone comment – until, that is, one reads closer and learns that the species referred to are mainly very lightly fished Mediterranean species as well as western water species such as squid and conger eels.
But the pre-emptive strike is in the headline and is intended to shock -- but not to educate.
The aim once again of anti industry groups such as Oceana is in clear evidence, as they avoid mentioning the fact that almost ALL of the regular species fished by European Union fleets are naturally regulated under very strict quotas.
All whitefish and pelagic species that are targeted by the EU fleet are closely monitored and quota regulated – but Oceana chose to neglect looking at these species and instead focused on mullet, cuttlefish, shrimp, octopus and croaker which they say “are among the 686 species for which there are currently no management measures specifying limits on catches and fishing effort. This equates to 31 percent of the total catch.”
Once again, the old mantra of never letting the truth get in the way of a good story seems alive and well…
-- Cormac Burke
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March 21, 11:21 a.m. GMT
How will US Starkist management react to Korean influx?
The news Tuesday that a plethora of executives from Dongwon Industries’ Seoul headquarters -- complete with translators -- are to descend on Pittsburgh to sort out the “challenges” the company is going through is not being greeted with enthusiasm, sources told The Buzz.
This news, broken by IntraFish from an email sent around the company by In-soo Cho, president and CEO of Starkist, has seen other US executives at the company "reaching out" to contacts in the business looking for a new roles.
Several to
p executives who were there before Starkist was bought by Dongwon have already moved on, including former CEO Don Binotto, now CEO of Contessa Premium Foods.
There is so much American management leaving and "probably even more so after this announcement," a source told The Buzz.
The move by Dongwon shows "no trust in the American management team," he said.
There have been issues with the culture clash between the American team and the Korean owners, sources told The Buzz.
The appointment of Cho in March 2011 was clearly a move to bridge this. Korean born but also partly educated in the US, Cho has worked for multinationals such as Procter & Gamble, Yum Restaurants International and Pizza Hut on four continents and is seen as seasoned and charming global FMCG executive.
Quite how Cho will react to the appointment of Nam-jung Kim, son of Dongwon Industries Chairman Jae-chul Kim, to the newly created position of chief operating officer (COO) at Starkist remains to be seen.
NJ Kim will oversee the “support plan” being implemented at Starkist and “will also lead continued growth and expansion of Dongwon-StarKist global business,” said the email from Cho.
The Buzz contacted Starkist for clarification on the new structure and where the chairman's son will fit in and was told Cho is traveling and will be available for interview next week.
A source, familiar with both Starkist and Dongwon, said the move was not unexpected, but the scale of the changes is surprising.
Dongwon has a strategy to go "back-to-basics" on fish buying and move closer to boat owners, said the source.
Several of the Korean executives transferring over to Pittsburgh are to focus on buying, so this is clearly a move to fast-track this strategy.
-- Tom Seaman
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March 16, 13:24 p.m. GMT
Shrimp-free shrimp for UK market
We’ve seen plenty of meat-free meat - and even fish-free fish - now it’s the turn of the prawn-free prawn.
Vegetarian-friendly shrimp - the latest innovation from the Linda McCartney brand - are made from whey protein, potato starch and natural colorings and flavorings, reports The Grocer.
Rolling out next month, they were “very similar” in texture to real shrimp, and were high in protein and a good source of fiber, claimed the company.
The first two lines to be launched would be plain Fish Free King Prawns (rsp: £2.50 (€3/$3.9)) and Fish Free King Prawn & Vegetable Stir Fry (rsp: £1.89 (€2.3/$3)), but the company said it was already looking at further ways to use the shrimp and that other products were in the pipeline for launch later this year.
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March 16, 11:37 a.m. GMT
Asian appetite for overseas deals is ‘insatiable’
Asian companies are looking to get access to resources worldwide and are showing an ‘appetite’ for overseas deals, a financial sector executive said.
The Chinese, Japanese, Koreans and the Thais all seem to have an appetite for overseas deals and have the cash to pull them off, he told The Buzz.
“It is about controlling resource. The Asian market is booming, so they think that if they control the resource then they have the sales channels to sell that product.”
Recent deals by Pacific Andes in Peru and Namibia, Dongwon Industries in Senegal, Marubeni Corporation in the United States and China National Fishery Corporation in Mozambique all show the trend.
Fishing News International, the IntraFish Media commercial fishing paper, will run a feature on the subject in the next issue.
-- Tom Seaman
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March 15, 8:37 p.m. GMT
Producers 'fed up' with all the different labels
Confusion is swirling around which eco-labels are right for which retailers.
Questions inundated the Marine Stewardship Council's Kerry Coughlin and Global G.A.P.'s Kristian Moeller at the Boston seafood show.
"Producers are getting fed up with duplication of different standards," Moeller, president of the North America division, told The Buzz, "and some buyers might ask for something, but they don't really know what the implications are of asking for that."
-- Jeanine Stewart
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March 15, 7.49 p.m. GMT
Pacific Andes-linked trawler ready for late start
The poll
ock factory-trawler understood to be working for Pacific Andes has now finally left the port of Busan and is nearing the fishing zones, The Buzz was told.
This means Viktoriya will still have almost a month worth of activity before the Russian pollock season A ends on April 10.
Initially the 140-meter long vessel was meant to be ready for the start of the season in January in the Sea of Okhotsk, but a motor failure on Feb. 15 forced it to return to Busan, in South Korea, for repair. Its stay there was prolonged after the Busan Coast Guard opened a murder investigation into the death of a crew member on Feb. 25. The Buzz was not able to reach the coast guard for comment.
In December IntraFish reported that Viktoriya had been entirely refurbished to produce surimi as well as fillets, blocks and head and gutted pollock for Pacific Andes. The company denies any link to the trawler.
-- Eva Tallaksen
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March 14, 10.29 p.m. GMT
Hugh takes Fish Fight to Germany
Celebrity chef Hugh Fearnley-Whittingstall is taking his Fish Fight campaign, which started in the UK, international.
On April 23, the Fish Fight campaign against discards will launch in Germany with an event outside the Bundestag.
A series of programs will then be broadcast on television, highlighting the "wasteful fishing practices which have led to half of all the fish caught in the North Sea being thrown back dead into the sea," according to the site.
Close to 800,000 people have now given their support to the campaign.
-- Tom Seaman
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March 13, 12.47 p.m. GMT
Greenpeace in the wrong, says vessel operator spokesman
Gerard van Balsfoort of the Pelagic Freezer trawler Association, that represents the interests of nine European freezer trawler companies, came up with an almost predictable response to last week's siege of Parlevliet and Van der Plas-owned trawler Maartje Theadora by Greenpeace activists.
"We reject the actions and allegations by Greenpeace. Apart from the fact that the Greenpeace actions lead to unsafe situations at sea for which we do not want to be held responsible, we are fishing legally under the European Union (EU) fisheries agreement with Mauritania based on a fully controlled fishing license and quota system.
"If Greenpeace has problems with the Common Fisheries Policy, they should direct themselves to the policy makers in the EU and not aggressively target the operations of vessels that make legal use of fishing opportunities agreed between the Mauritanian government and the EU."
Click here for some dramatic photos from Greenpeace.
-- Rijuta Dey
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March 13, 11.11 a.m. GMT
Cumbrian: the voluntary defectors
UK authorities' continuing investigation into Lion Capital's takeover of Cumbrian Seafoods' assets means Lion's plans to integrate Cumbrian's business with that of Findus' UK arm, Young's Seafood, remain in limbo, IntraFish reported today.
Also in limbo are the ongoing job consultations of more than 500 employees working across Cumbrian's factories in Seaham, Whitehaven and Border Laird -- since Lion cannot make any substantial changes to key staff during the investigation.
One reader, however, pointed out that our story forgot to mention another development at Cumbrian: the voluntary departures of several staff. "The only aspect not covered is the number of people leaving of their own accord," this reader, a former Cumbrian executive, told The Buzz.
Those holding on for redundancy are likely to be the ones who served long, but based on Cumbrian's notoriously high turnover rate -- where one year of service is considered a long time -- these are likely to be few and far between.
As our source said: "The long servers seem to be sticking around for what they hope to be big redundancy pay-offs, which are partially tax free, but Cumbrian didn't have that many long stayers!"
-- Eva Tallaksen
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March 13, 11.11 a.m. GMT
Russian Sea tight-lipped on NBAMR deal
On Feb. 29 IntraFish reported that Russian Sea Group was eyeing a takeover of Nakhodka Active Marine Fishery Base (NBAMR), the Russian pollock giant that controls around 100,000 metric tons of pollock quota.
The news followed Russian Sea's appointment of NBAMR's former CEO Peter Savchuk to lead Russian Sea's -- as yet non-existent-- 'Far East fishing activities.'
Russian Sea, however, remains tightlipped about its intentions. When a journalist with IntraFish's media partner in Russia, Rybatskaya Gazeta, got in touch with Savchuk in Vladivostok, Savchuk said nothing new, commenting that it was too early to give out any details.
-- IntraFish Media
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March 13, 9.11 a.m. GMT
Parallels between pollock, pangasius price patterns
Over the last week, I’ve been working on a story on the pangasius pricing picture.
Jan Kaptijn, managing director of Seafood Connection, a Dutch pangasius buyer, compared what is happening in pangasius prices – where there is change in the industry, but prices are stable -- to Alaska pollock.
“We have seen the same with Alaska pollock. A lot is going on,” he told The Buzz.
“The US is looking for higher prices -- lower quota, higher energy costs, higher overall costs and a good surimi market, whilst the European industry is looking for lower prices – due to a higher dollar rate, high stocks, the European crisis,” he said.
Now Boston is underway, it seems prices have been settled at the same rate as last B-season, he said.
“With pangasius it's about the same. But please understand prices have been decreasing already with about 10 percent in the last six months of 2011. Of course the Vietnamese companies are looking for higher prices but as long as the markets do not support what’s happening?"
One of the reason prices are getting more and more stable is the vertical integration we have seen in the last years, whereby the main processors have also become the main farmers.
Moreover even some of the less big processors are controlling the whole process from fingerling breeding via farming to the final processing.
So, we do not see the big fluctuations in price anymore like in the past which were mainly initiated between the fight between farmers and processors. Now it's all more balanced.
Last but not least, in the recent years, the retail market for pangasius has become more and more important.
Having in mind that those companies are looking for long term contracts and stable partners this is also given less fluctuations in the market price.
In 2012, local farmers plan to export 600,000 metric tons of pangasius, equal to 2011 plan according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
“Growth needs to come from other markets then Europe for this year. However, we see the German retail market is picking up the last few weeks after the drop in 2011,” he said.
-- Tom Seaman
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March 12, 9.02 a.m. GMT
Boston buzz more positive
I'm holding the fort in London this year and am not in Boston, after a great time at last year's show.
Sources of mine I met at the show in 2011 seem to be more confident on the US economy than last year.
"The buzz is more positive than last year," Chuck Anderson, of Boston-based Sousa Seafood, told The Buzz.
"Sales are good, and the economy has every feeling better. Big players are trying to lock up long term contracts and guarantee supply of wild species," he said.
"Tuna is a good example of a short market, but packers can't guarantee enough supply," said Anderson. "Many buyers are looking for good value-added fresh and frozen seafood. I also hear buyers are looking at steady supply and pricing for value frozen products such as pangasius, tilapia and salmon."
To follow all the news from the show this year, keep clicking back to our blog.
-- Tom Seaman
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March 12, 9.02 a.m. GMT
Friend of the Sea to Dongwon: Take lead on stopping shark fining
Paolo Bray, director of eco-label certification body Friend of the Sea, called upon Starkist CEO In-Soo Cho to take the lead on stopping shark fining.
In an open letter sent to The Buzz, Bray said he hopes the CEO of the Dongwon Industries US subsidiary will use his chairmanship of the Infofish Tuna 2012 to take a stance on shark fining.
the full letter is below:
"Dear Mr In-Soo Cho,
We are glad to learn you will be Chairperson of Infofish Tuna 2012.
We believe this will be a unique opportunity to inform the international audience about your Group’s engagement to stop cutting, selling and trading shark fins and ensure humane treatment of you crew, according to ILO’s conventions.
Your group’s engagement in this sense would motivate also other shark fining companies to engage at stopping this wasteful practice, which is often a consequence of crew’s mistreatment.
Your decision would save hundreds of thousands of sharks every year, prevent their extinction and provide hundreds of families with a more decent life and respect of their human rights.
We look forward with hope to Infofish Tuna 2012. You could make this event really memorable and Dongwon/Starkist could become real leaders in sustainability and social accountability.
Sincerely,
Paolo Bray
Director
Friend of the Sea"
-- Tom Seaman
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March 8, 13.02 p.m. GMT
Dutch pangasius pioneer: we’re bigger than fish fingers
The Neth
erlands-based importer Queens Products was the first company to start bringing in pangasius for sale in retail in its home market,.
“This year it is 10 years ago that we introduced pangasius -- I did not like the name pangasius that much so I changed it from the beginning into panga -- on the Dutch retail market,” said Harry Hoogendoorn, its managing director.
“We were the first company to introduce panga in the retail market,” he told The Buzz, from the North Atlantic Seafood Forum.
“Now Queens panga is now the number one frozen seafood product on the Dutch market, bigger than Birds Eye/Iglo fish fingers,” he said.
Queens only deals with one supplier in Vietnam, Vinh Hoan. “We haven’t bought one kilo from elsewhere,” he said.
-- Tom Seaman
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March 8, 12.32 p.m. GMT
Prices dropping across the board
Seafood prices are dropping for most species, a source in China told The Buzz.
"The keyword for prices is down, from Atlantic cod, saithe to tilapia and Thailand whiteleg shrimp," said Daniel Lin of Ocean Kingdom Seafood.
Frank Zhou, of China-based Ocean One Enterprise, said "prices for chum salmon in the US have gone down a bit."
"In the US market, the pink price is stable," said Zhou, who was on his way to the Boston seafood show.
-- Tom Seaman
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March 8, 12.22 p.m. GMT
US sector needs consolidating
Two bankers I was chatting with last week both made the call for more consolidation in the US seafood sector.
This echoes statements made by High Liner Foods CEO Henry Demone, during the North Atlantic Seafood Forum.
The regional fragmentation and family ownership have kept the US sector like this, one banker said.
However, it seems many companies are now going through a generational shift and could pass into new hands.
One difference the other banker flagged up is that US family-owned companies are maybe more pragmatic on selling than in Europe.
He cited the example of Calvo Group, where many different family members have stakes, making a sales process very hard.
European companies maybe also have longer histories, which can make the owners more sentimental about selling, he said.
-- Tom Seaman
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March 7, 13.11 p.m. GMT
Fraud office British Seafood probe ‘ongoing’....still
The Serious Fraud Office (SFO) look at the demise of British Seafood, the company built up by entrepreneur Mark Holyoake, is ongoing.
In response to an email from The Buzz, the SFO replied with no details other than the fact its inquiry is still in process.
British Seafood went into administration in February 2010 and a freezing order was placed on Holyoake’s assets, preventing him from leaving the UK.
This also meant that Holyoake’s efforts to buy Iceland Seafood International (ISI) also stalled.
However, the freezing order was lifted at the end of 2010 and Holyoake went on to complete the ISI deal, where he is now chairman.
Holyoake has previously denied an SFO investigation is taking place.
ISI is held by International Seafood Holdings, which is based in Luxembourg and was founded by Holyoake in 2009.
"The company is now looking to gain further investments and prospects in this sector to increase their market share on a global scale," states its website.
-- Tom Seaman
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March 6, 12.59 p.m. GMT
US buyer seeing India, Vietnam vannamei shift
One US shrimp buyer is seeing a dramatic shift in India and Vietnam from black tiger shrimp production to vann
emei.
“The black tiger farmers [in Vietnma] had a rough year last year, particularly with virus problems,” said Ernie Wayland, vice president with International Marketing Specialists.
They want to switch because the white shrimp is more disease resistant and they should be able to get two or three crops a year depending on the target sizes, he told The Buzz.
“Our agents tell us that the switch will result in about a 70/30 ratio of whites to tigers, with targeted sizes in 26/30 to 71/90. We shall see.”
India appears to be doing the same, said Wayland. “We are hearing reports that more black tiger farmers will switch to whites this year.”
From an industry that did not exist two years ago, Indian vannamei production is booming.
“White shrimp farmers and packers exported over 160 million pounds of white shrimp to the US in 2010 and 2011 combined,” he said.
An executive with Thailand-based importer Siam Canadian Foods told IntraFish that Vietnam is having a tough start to the year, with bad weather and disease hitting production.
-- Tom Seaman
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March 6, 12.37 p.m. GMT
Morrisons could move into value-added processing
A story from a Grimsby newspaper says that UK retailer WM Morrison Supermarkets could move into value-added seafood processing.
This would be the second phase of its expansion into seafood processing, Morrisons executives told The Grimsby Telegraph.
Land adjoining the former Kwoks Foods ready meal plant was acquired by Morrisons as part of the deal, giving the retailer room to expand.
Frozen seafood and value-added elements, such as breading, coating or sauces, could emerge in 12 months in a new build project.
"Phase one is to get up and running with fresh white fish, salmon and shellfish, with phase two looking at frozen and added value, our other fish offerings we have got within the business that we can bring in house,” said Rob Smith, who will run the operation, along with Howard Sims. "All that is for the future though, the number one priority is to get phase one up and running and bedded in."
"This time next year we will be much more focused on what more we can do,” said Sims.
This is unlikely to be good news for suppliers of Morrisons.
-- Tom Seaman
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March 2, 13.37 p.m. GMT
Nissui seeks to make best use of vertical integration
The top US executive from Japanese giant Nippon Suisan Kaisha (Nissui) says the company is trying to make the best use of its vertical integration, which is different to the approach taken by some companies.
Nissui is integrated in the US in a way that is different to, say, Trident Seafoods or Pacific Seafood Group, two other large US seafood businesses.
Trident and Pacific both have all its operations under one management team. Nissui’s approach is different, with managers in its Gorton’s, Unisea, F.W. Bryce and King and Prince Seafood arms in the US all working independently on their own businesses.
Volker Kuntzsch, president of the US division of Nissui, represents the US operations to Japan, but all the separate companies have a high level of autonomy, while Kuntzsch is very focused on King and Prince.
“We have to try and make the best use of our vertical integration,” he told The Buzz.
“We, as a group, are integrated, but not in the way other companies with a single management structure for the whole supply chain are,” he said.
“We have the benefits of each part focusing on their respective strengths, which may not be as streamlined as having everything under one roof, but certainly calls for each link in the supply chain to be very competitive in order to satisfy a large proportion of third party customers, those that are not associated with the group,” said Kuntzsch.
Each link is free to source from other suppliers too, which creates healthy competition amongst its global links – what Nissui calls its overseas operations – said the executive.
“Naturally, we try to add as much value to group-owned resources as possible and therefore keep raw materials within our group as far down the supply chain as possible,” he said. “Also, we have access to resource all over the world.”
-- Tom Seaman
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March 1, 5.54 p.m. GMT
Local media touts Morrisons potential job creation
The fish plant which sources say UK retailer WM Morrison Supermarkets, plans to open in Grimsby would create as many as 250 jobs.
That's according to an article from the Cleethorpes Chronicle, a regional paper.
The Buzz heard about the article and got a source in the area to buy it, who then summed it up in an email:
"It says 'if the news is confirmed as expected' Morrisons will open new modern seafood plant on the site vacated by Kwoks Chinese food factory, on the Europarc. It is expected to employ up to 250. New owners expect to open before Autumn."
The Buzz understands the "new owners" will be Morrisons, who are looking to vertically integrate on fish processing, as they are on meat and vegetables.
-- Tom Seaman
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March 1, 11.11 a.m. GMT
Will Vietnam problems impact shrimp prices?
Report coming from Vietnam suggest disease and bad weather is hitting shrimp production. Will this hit prices?
Well, Jim Gulkin of Siam Canadian Group, who's Vietnam manager sent IntraFish the comments for today's story, is unsure.
"Last week I was very confident that prices will fall," he told The Buzz. "This week Indonesian farmers are now resisting lower prices. Thai prices are a little soft but not moving down to levels that would match prices from other origins."
If the Vietnam farming problems increase then that could stem a price drop, he said. "If the problems are localized then my bet is still that prices will soften."
-- Tom Seaman
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Feb. 27, 13:44. p.m. GMT
Hong Kong startup targets frozen-at-sea fillet sale
The former China-based executive from a New Zealand seafood group is going it alone, with a new venture.
Daniel Lin, who was representing Oceania Seafoods in China, has got some private equity backing and has started up on his own.
Ocean Kingdom Seafood is the name of the new company that Lin told The Buzz will supply wild-caught frozen at sea fish to the processing industry and wholesalers.
“The first overseas offices will be set up in Norway and the Philippines,” said Lin.
He plans to exhibit at the China Seafood and Fisheries Show this year and make his Brussels seafood show debut in 2013.
Polestar Capital is the private equity giving Lin backing.
-- Tom Seaman
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Feb. 27, 12:28. p.m. GMT
China seafood wages climbing
Didier Boon, a Belgian who runs Beijing, China-based East China Seas, has to cope with the dramatic increases in wages for Chinese workers.
As the minimum wage increases, so does the actual wage that seafood companies such as East China Seas has to pay.
“As far as seafood companies are concerned, and where there is a big competition for workers, wages can be CNY 3,500 (€413.2/$555.5),” he told The Buzz.
“To give you another example: in my company in Beijing, I used to pay the entry employees CNY 1,500 (€177.1/$238.1) per month and now I would not get any person working for less than CNY 6,500 (€767.4/$1,032) and this is almost net for them -- maximum 10 percent tax -- the employer also pays about 45 percent on top of that for social security,” said Boon.
The Chinese government, as a matter of national policy, has been increasing minimum wage levels by 15 percent to 25 percent annually for the past three years.
Rates vary by region and are set by each respective local government – calculated in tandem with a number of other indicators, including relations to the local housing market, he said.
“They are also set to rise over the coming years as China looks to shift its economy towards a more balanced consumer society. To achieve that goal, Chinese citizens need to have increasing levels of disposable income.”
How this is manifesting itself is an interesting case study that is perhaps best and most easily-defined by the map and accompanying table below. With such visual aids, it is easy to see at a glance that the well-known coastal provinces boast relatively higher minimum wage levels than the more slow-to-develop western areas, said Boon.
However, there are local anomalies.
“Haikou, the capital city of Hainan Province, maintains a minimum wage lower than that of Kashgar for example,” he said.
The map below is color-coded based on the current minimum wage levels in the downtown area of each region’s respective capital city. That means for Fujian Province we used Fuzhou and not Xiamen as the key indicator, and for Guangdong Province we used Guangzhou and not Shenzhen.
For specific city-by-city figures, the table below lists the minimum wage levels of 50 major cities across China.
-- Tom Seaman
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Feb. 22, 11:28. a.m. GMT
Get your head around Nissui's Global Links
Japanese seafood giant Nippon Suisan Kaisha (Nissui) has a staggering array of subsidiaries around the globe.
This link gives a great overview of Nissui's global operations.
-- Tom Seaman
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Feb. 22, 10:53. a.m. GMT
What is Russian Sea plotting in the Far East?
Russian Sea Group's hiring of former NBAMR CEO Peter Savchuk to lead its new fishing subsidiary, Russian Sea - Fishing is puzzling the industry.
Russian Sea’s fishing expansion plans are not new. Last year, the company’s former CEO Dmitry Dangauer (pictured) said the company was eyeing investments in the sector.
“We have a new strategy in Russian Sea, we are very interested in fishing assets,” Dangauer, who is now CEO of Russian Sea’s importing division, Russian Fish, told IntraFish in September. “Probably you will see some action in the near future,” he said. ”It could be mergers and acquisitions involving Russian Sea.”
However, the puzzling bit lies in Suvchuk’s title -- in its announcement, Russian Sea said Suvchuk would lead its Far Eastern fishing activities.
This goes against the expectation that Russian Sea will be looking at assets in western Russia, where it is specifically expected to try and acquire Arkhangelsk Trawl Fleet (ATF), partly by using the political leverage of its new backer, the influential oligarch Gennady Timchenko.
“We think that Russian Sea is most interested in fleet assets in the Barents Sea region. As for the potential targets for acquisition, we've already heard media reports on the group's interest to ATF,” Tatyana Bobrovskaya, senior analyst for consumer goods at IFC Metropol, had told IntraFish in September.
A fishing executive in Russia who is well familiar with Russian Sea was also bewildered by the news.
“To acquire one of the Far East companies Russian Sea would have to pay real money to current private owners and, moreover, compete with Pacific Andes and Ocean Trawlers,” this executive told The Buzz. “I do not think it is their first choice.”
Both analysts and this executive pointed out that Russian Sea’s poor finances -- negative earnings and extremely over-leveraged -- made it unlikely to be able to make any acquisition.
-- Eva Tallaksen
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Feb. 22, 10:31. a.m. GMT
Panama producer sees weak prices for medium-to-large shrimp
Competition from Ecuador and a weak market in Europe are two issues Roberto Chamorro, general manager of shrimp farmer Camaronera de Cocle, part of Panamanian agribusiness company Grupo Calesa, is seeing in the market.
“For the moment the market is steady with weak prices for medium to big shrimp (30/40),” he told The Buzz.
“Apparently Ecuador is producing a lot of this size with the Argentinean gambon at very low prices,” said Chamorro. “So, the situation is complicated to sell inventories.”
His views on prices for medium-to-large sizes echo comments from a US importer and also Central Proteinaprima (CP Prima) and Charoen Pokphand Foods (CPF), two of the world's largest shrimp farmers.
The European market is depressed with the economic situation, so the price forecast is uncertain, he said.
Camaronera de Cocle is the largest integrated shrimp farm operation in Panama dedicated to Litopenaeus vannamei. It sells 50 percent of its production to Europe, with Spain, Italy, Denmark, France, the United Kingdom and Belgium being the main markets. Around 35 percent goes to the United States and 15 percent to Taiwan.
The rest of its output of 3,400 metric tons of processed and packed shrimp goes to a variety of markets. It has its own farms, covering 1,200 hectares, and also buys shrimp from outside companies.
Its shrimp processing plant, Altrix de Panama, is capable of producing up to 100,000 pounds per day.
“We are seeding the ponds for the next cycle and will start harvesting in May to June,” said Chamorro of plans for this year.
-- Tom Seaman
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Feb. 22, 9:50. a.m. GMT
Young’s Waitrose plant MD to leave
The managing director of Young’s Seafood’s dedicated Waitrose plant is leaving the company and The Buzz has tips as to where he is going......
Roy Cunningham, a longtime and highly respected manager in the Young's organization, is leaving his role as managing director of the company's Macrae Edinburgh site, which produces a range of products for Waitrose, part of the John Lewis Partnership.
Cunningham’s leaving date has not been specified and Young’s is looking for a replacement to run the plant and report into Pete Ward, chief operating officer.
According to the job advert, Young’s -- which regroups all of Findus Group's UK operations -- is looking for a candidate with experience of running a food business with sales of over £50 million (€60.2 million/$79.2 million).
Macrae Edinburgh’s 6,000 square meter site in Livingston was opened in May 2007, after an investment of £10 million (€12 million/$15.8 million).
It produces hot and cold smoked seafood, prepared shellfish and hand-crafted value-added products for entertaining in partnership with Waitrose.
The new site now employs about 230 people, most of whom moved with the business from its former premises at Granton.
Macrae Edinburgh primarily uses Scottish-sourced fish such as salmon, shrimp, crabs, scallops oysters, langoustine, trout, herring, haddock and mackerel.
It can smoke up to 80 metric tons of whole salmon and 40 metric tons of hot smoked mackerel every week.
Watch this space as to where Cunningham ends up, but The Buzz suspects it will involve a trip north....
-- Tom Seaman
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Feb. 21, 14:26. p.m. GMT
China workers staying home
More and more, Chinese workers are finding work in their home cities and not having to venture to the coasts to work.
Bad news for the seafood sector, which might even have to import labor in the future, according to a sourc
e Liyana Low talked with.
“Workers are certainly a problem with many factories now,” Didier Boon, managing director of East China Seas, a Beijing, China-based supplier.
“They return less and less as the possible income in the far flung places has risen tremendously and they prefer in most cases to stay near their family,” he told The Buzz.
“Factories are accepting less and less difficult work and now charge a lot for anything special,” he said.
“But on the other hand, we start seeing factories buying some machinery to make up the lack of workers.”
As to the outlook for 2012, Boon has an open mind.
“Let us see what is going to happen in the next year...”
-- Tom Seaman
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Feb. 21, 15:12. p.m. GMT
Thai shrimp processors selling at below cost
US shrimp inventories are high; the US market is flat, said Jim Gulkin, managing director of Bangkok, Thailand-based frozen seafood supplier Siam Canadian Group.
“Thai raw material prices remain high, but factories are selling at or below cost to keep production moving,” Gulkin told The Buzz.
“With expected pressure from India, Indonesia, Vietnam and South America, Thai raw material prices are going to have to move down at some point,” he said. “Thailand cannot compete at current levels.”
-- Tom Seaman
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Feb. 16, 8:12. p.m. GMT
MSC meets with Alaska salmon leaders
Sources are telling The Buzz that leaders of Alaska’s salmon fishery met in the last several days with Marine Stewardship Council mucky-mucks to hear the MSC’s latest offer – “MSC for free.”
Sources say the MSC is offering to wave all recertification fees, which run somewhere between $100,000 (€76,000) and $200,000 (€52,000), if the Alaska salmon mafia rejoins the MSC.
The deal isn’t quite as sweet as it sounds though because the MSC board signed off last year on an incentive mechanism for fisheries such as Alaska salmon that are coming forward into their second reassessment.
Under the new incentive plan, up to 75 percent of the external certification costs would be covered by the MSC, subject to sufficient logo revenue being generated from that fishery. So for Alaska salmon, this means 75 percent of those third-party certification costs for the reassessment and all surveillance audits were already going to be covered.
“Is this still about sustainability of the Alaska fishery model or the sustainability of the MSC financial model?” asked one of my sources.
When asked about this rumored meeting, the MSC’s Kerry Coughlin gave the kind of say-nothing political answer that more and more passes for genuine MSC dialogue.
“The Alaska salmon fishery continues to be certified within the MSC program and therefore MSC outreach and other staff continue to have interaction with partner companies related to the fishery. In the context of the large processors' recent announcement, as I’ve said, we remain hopeful that either the current client group or a new client group will re-enter the fishery into assessment for a third certification. We will provide information as requested by any of those interested. Beyond that, there is nothing else to add at this time,” Coughlin said.
Please!
-- John Fiorillo
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Feb. 16, 1:30. p.m. GMT
Nissui tight-lipped on German deal talk
Japanese seafood giant Nippon Suisan Kaisha (Nissui) is not saying anything on talk it has acquire a stake in a new Germany-based processing and trading group.
I chased them up in Europe and Liyana Low, the IntraFish Singapore-based reporter, has been on their case on Asia time.
She got a similar response to me. "No comment, Liyana-san, Tom-san" seems to be the order of the day.
Seeing as Nissui is a stock listed in Tokyo, The Buzz expects to hear something soon.....
-- Tom Seaman
-- Liyana Low
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Feb. 16, 11:08. a.m. GMT
Retailers ‘their own worst enemies’
The standards UK supermarkets demand of suppliers are so high, it means they have to live with fewer options in terms of suppliers, a UK industry source told The Buzz.
“The supermarkets are their own worst enemies,” the executive lamented. “By setting standards that only a few can achieve, they can't shop around much.”
It is very expensive to meet the ever increasing standards, he said.
"This is creating a barrier to entry to smaller players who are generally reluctant to invest until they see the riches from multiple supermarket listings coming in, but don't see those riches because they haven't invested," he said. "Luckily I am presently working for a visionary who is investing!"
Young’s Seafood, now the dominant UK fresh and frozen player after absorbing Cumbrian Seafoods, is quoting some “pretty high prices” as a result of its dominance.
“They are telling supermarkets that they are the only ones who can meet their technical standards and keep to specification with integrity,” he said. “Nice try boys, but you are not a monopoly yet.”
-- Tom Seaman
--------------------------
Feb. 16, 10:21. a.m. GMT
Smoked salmon deal left some out in the cold
The acquisition of Bretagne Saumon a few weeks back is said to have left some interested bidders in the cold.
Guyader Gastronomie was apparently not the only one looking to acquire the French salmon smoker.
Intermarche's smoked salmon division Le Moulin de la Manche and Ledun Pecheurs d'Islande (LPI) had also showed interest in making a move on the company, a person familiar with the process told The Buzz.
LPI and Le Moulin de la Manche are the fourth and fifth largest salmon smokers in France, with Bretagne Saumon following in sixth place.
Taking over Bretagne Saumon would have made either into a stronger rival to the dominant market players Meralliance, Alfesca (now renamed Labeyrie Fine Foods) and Kritsen.
According to our source, Antoine Gorioux, the former head of Marine Harvest Kritsen, had initially intended to acquire both Guyader Gastronomie and Bretagne Saumon, but the plan fell through, supposedly after the supporting fund pulled out. Instead, Guyader took over Bretagne Saumon, having hired Gorioux a few weeks earlier.
-- Eva Tallaksen
------------------------------------------
Feb. 15, 13:15. p.m. GMT
Scotland beware
Faced with deportation from Canada, the anti-aquaculture activist Don Staniford has said he would continue his fight in its native country -- the UK.
His deportation comes as he is embroiled in a legal fight with Cermaq in Canada.
Asked to comment, Marine Harvest Scotland trod a diplomatic line.
“We are aware that Don Staniford will be deported from Canada to the UK, which is his country of origin. It is a long time since he was here, so it’s hard for us to comment," Steve Bracken, business support manager, told The Buzz.
-- Eva Tallaksen
--------------------------------------------
Feb. 15, 12:53. p.m. GMT
Tri Marine to supply Safeway with FAD-free tuna
US retail giant Safeway made some waves (ahem) last week when it announced it is to source tuna not caught by fish aggregating devices (FADs).
Tri Marine International, the $1 billion (€753.9 million)-turnover, vertically-integrated tuna group, is working on the supply side.
"Safeway is looking for a source of FAD-free fish for its tuna packs. They started talking to us awhile ago,” a Tri Marine representative told The Buzz.
“They need someone that can supply, and scale upwards if necessary. We'll see where it goes. We are pleased to be working to Safeway to meet their needs.”
-- Tom Seaman
--------------------------------------
Feb. 15, 12:45. p.m. GMT
Young’s: Cumbrian authorized non-BAP shrimp purchases
Young’s Seafood confirmed it found evidence Cumbrian Seafoods authorized the purchase of non-Best Aquaculture Practice (BAP)-labeled shrimp.
Previously, Young’s had stated:
“We found evidence, from before Cumbrian Seafoods went into administration, to suggest that non-Best Aquaculture Practice (BAP) accredited prawns may have been used to produce products that specified that they contained BAP prawns at the Seaham site.”
In reaction to a request for more comment from The Buzz, Young’s confirmed it had found “further evidence.”
This evidence suggests:
“Before Cumbrian Seafoods went into administration, the company had authorized the supply of prawns from BAP-accredited sources which didn't, however, meet the full product specifications or all the requirements of the Global Aquaculture Alliance certification label on pack.
“Immediate action was taken, the products were withdrawn and suspended, and a root and branch review of all purchasing processes is being instigated at the former Cumbrian Seafoods sites.”
IntraFish broke the story that Cumbrian had been supplying Asda with non-BAP shrimp labeled as BAP-certified. We then broke the story that Asda had pulled the products.
This caused the Global Aquaculture Alliance, which operates the BAP standard, to issue a defense of BAP and condemn the "illegal" Cumbrian misuse.
-- Tom Seaman
---------------------------------------------------
Feb. 15, 8:10 a.m. GMT
PanaPesca founder sits down with Pac Andes
Vito Panati, the patriarch of the Italian frozen food group PanaPesca, recently jetted over to Hong Kong, reportedly to meet with the top management of Pacific Andes.
The nature of these conversations is pure speculation -- the stock in trade of The Buzz -- but one can draw one’s own conclusions from the fact Panati has been trying to sell PanaPesca for years.
In fact, the company has been up for grabs for so long, a PanaPesca insider called an IntraFish story referring to the potential sale as “comical.”
PanaPesca has been in discussions with a variety of entities over the past 25 years, he said.
There are several companies interested in the Italian distributor, however, he said. “I am sure the rumor mill will be running full steam ahead in Boston.”
A source in the Italian food business and a banker said Pacific Andes is likely to be uninterested in paying the price that Panati wants for his business.
However, there are also some private equity funds interested, the source in Italy said.
“I think there are several private equity funds in Italy looking to PanaPesca and other frozen food companies -- not just seafood -- looking for some consolidation,” he said. “I met the owner of a medium size company and confirmed that is a lot of time that that discussions are going on.”
But, there has been no result so far, he said.
This is a familiar story.
“When I entered in this business in 2005, the first rumor I heard was PanaPesca was on sale.”
-- Tom Seaman
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