Over the last five years, sales of fresh Icelandic cod fillets have seen significant growth in both the US and French markets, and that is helping Iceland strengthen its presence in the larger global cod market, analysts and industry executives told IntraFish.

Fresh Icelandic cod exports increased over 50 percent through May due to increased volumes headed to the European Union, mainly to Poland and the United Kingdom, Kontali Fisheries and Aquaculture Analyst Henrik Hustadnes told IntraFish.

The weakening of the Icelandic krona against the US dollar and euro had a positive impact on Iceland cod exports, allowing the fish to gain market momentum and go head-to-head with other cod suppliers, Hustadnes said.

Prices and volumes

The average export prices for head-on fresh Icelandic cod for the first five months of the year increased 33 percent compared to the same time last year, while fresh headless cod prices climbed 6 percent, according to Kontali figures.

This year, the Belgium and Switzerland markets have been the most for Icelandic cod at €10 ($11.20) per kilo and €13 ($14.60) per kilo, respectively, according to the Icelandic seafood market information platform Sea Data Center.

The price hike has affected the volumes heading into Spain, despite the country remaining the largest market for Icelandic cod. Spain mostly imports the salted variation of Icelandic cod, Sea Data Center Managing Director Anna Bjork Theodorsdottir told IntraFish.

However, prices of fresh Icelandic cod have been generally rising more than 10 percent for whole fish, 10 percent for fillets and 12 percent for portions.

These price shifts are a challenge for some companies.

"For us, it is a competitive market and you need to be focused, but we have managed to make this work," Niceland Seafood CEO and Partner Heida Kristin Helgadottir told IntraFish.

Volumes of fresh whole cod headed into the United Kingdom have increased over 11 percent to 24,000 metric tons on average during the past three years.

For Iceland, the most important market by far for fresh cod is the United Kingdom, which holds more than half of the market share this year so far, the Kontali analyst said.

The main market in Europe for Icelandic fishing and processing company HB Grandi is France, but other countries are doing well too, Groundfish Sales Manager Sindri Mar Atlason told IntraFish.

France took in about 30,000 metric tons during the first five months of 2019, however, the volumes have flat lined in recent years.

In a nutshell, traditional markets, which include France, are still growing, Fisheries Iceland Marketing Specialist Vidar Engilbertsson told IntraFish.

The US market

Volumes headed to the United States have been on the upswing, especially within the fresh fillets category, rising more than 25 percent year-on-year and driven by luring prices at €10 per kilogram, according to Sea Data Center figures.

Some companies are praising the increase of exports to the United States. "The United States is making it viable for us to put more emphasis on marketing and making sure the consumer knows where their products are coming from, which is a core element in what Niceland Seafood is doing," Helgadottir told IntraFish.

However, the main fresh fillet market for Iceland so far this year is France, which is nabbing 47 percent of the market share of exports at 5,700 metric tons, according to recent Kontali figures.

"I wouldn't say it is changing the game since Iceland has always been exporting cod to the United States but numbers have been increasing in the past year," HB Grandi's Mar said.

All Icelandic seafood companies should take part in building consumer awareness on the importance of sustainable caught whitefish, Helgadottir said.

The fish is finding favor in retail, foodservice and distribution channels.

"Foodservice is also growing and very interesting to us because it gives us a different connection to the consumer and the ability to tell our story as well. I wouldn’t say it is an either or, but both in our case," Helgadottir said.

Quota

The cod quota increased roughly 3 percent according to the latest International Council for the Exploration of the Seas (ICES) recommendation to 272,000 metric tons.

But, in general, fishing seasons are quite stable and not as seasonal as other countries such as Norway, the Sea Data Center MD said.

"It is a positive impact but it is our responsibility to make the most of it," Helgadottir said. "It’s not about catching more but making sure we are catching quality products and bringing them to the consumer for a good price, while maintaining the resource for future generations."

"There are no obvious challenges for Icelandic fresh cod at the moment especially since stocks are healthy and it is going to stay that way," Fisheries Iceland's Engilbertsson said.

The Free Trade Agreement (FTA) between China and Iceland also seems promising for the industry, he said.

"Cod is a sustainable wild-caught product and there’s a lot of technology and development that has gone into the seafood industry here to ensure the fishery’s longevity," Helgadottir said.

"The industry as a whole has taken this responsibility very seriously, implementing stringent quality-control measures on how the fish is caught, to how it is being cooled, processed, and handled, giving the consumer the best quality product possible."

Fisheries

Fresh Icelandic cod gaining momentum across global markets