Monday's Market Report! Why we buy True North Salmon

 To All Our Buyers and Chefs,

 

It could be a little wet at times this week but warmer with temps in the 50’s and 60’s. For today our featured items are: 

·         Local Wild Striped Bass – beautiful fish from the DelMarVa (Delaware, Maryland, Viginia) area

·         Icelandic Cod – stellar fish from pristine, super cold water

·         Dorade – 600/800g size is a featured special this week

·         Open Blue Cobia – farm raised on the ocean floor, flesh has a rich fatty taste

·         Wellfleet & Matha’s Vineyard Oysters – just two of the fabulous bivalve choices for this week

 

The first potato “chips” were served at the Lodge at Saratoga Springs, New York in 1853. Native American chef, George Crum is credited with creating & first serving the “Saratoga Chips”.  Crum created the first potato chip from being annoyed by a customer’s complaint on his thick french fries.  The Waldorf Hotel opens on 33rd Street and Fifth Avenue in 1893. The luxury building has 450 rooms and over 1000 employees, completed at a cost of $3 million."The Godfather," Francis Ford Coppola's epic gangster movie starring Marlon Brando and Al Pacino, premiered in New York in 1972.


Chile Algae Crisis: Financial Loss, Potential Gains and The Future of the Chilean Salmon Industry    SeafoodSource

March 9th, 2016 - Chile, the world’s second-largest fresh salmon exporter, has suffered losses equivalent to 90,000 tons of farmed Atlantic salmon to the recent algal bloom in the Los Lagos region of Chile, according to a spokesperson for the Chilean salmon industry group. But he and members of the industry are hoping a recent decrease in mortalities may mean the bloom is past its peak. Felipe Manterola, the general manager of SalmonChile, said 5,000 tons of Coho salmon had also been lost as a result of the bloom. As a result, the Chilean salmon industry has suffered the loss of 15 percent of its production, affecting every salmon farming company operating in Region X, he said. “The good news is, in the last few days, mortalities have decreased. But the algae bloom is still there and we are still actively monitoring its progress,” he said. “Hopefully it will decrease as the weather conditions will change in the next few days.”

The algae bloom, or red tide, began 22 February but became much larger and more aggressive a week ago, starting 1 March, Manterola said. “The cause is completely natural and environmental, and there’s very little we can do to stop or change it in any way,” he said.

Damage assessment

Companies affected include AquaChile, Australis Mar, Blumar, Camanchaca, Cermaq, Australis Mar, Salmones Humboldt, Marine Farm, Marine Harvest Chile, Multiexport Foods and Ventisqueros. The division between those who hold insurance policies for their Region X farms and those who don’t will likely mean a difference in markdowns to the tune of millions of dollars. According to the Chilean financial news site Diario Financiero, by 3 March, Camanchaca estimated it had lost almost all of its salmon at its Puelche, Mañihuenco and Contao farms – 2.6 million fish in total, weighing in at 13,000 tons and valued at more than USD 22 million (EUR 20 million). But the company was fully insured, the report said.

Marine Harvest Chile announced last week it expected total losses of 2.9 million fish at its Punta Redonda, Huar Sur and Huar Norte farms. Multiexport foods said it had lost 1.85 million fish at its Huyar and Llingua farms and additional losses at three other farms in Region XI, according to the Chilean newspaper La Tercera. Blumar lost at least 110,000 fish at its Caicura farm in Region X, according Chilean news site T13. The site also reported AquaChile lost 9 percent of its total Chilean production, the equivalent of 3,900 tons (about 2.3 million salmon) worth an estimated USD 15 million (EUR 13.6 million) at its Capera, Herradura, Isla Guar and Huenquillahue farms in Region X. AquaChile was uninsured, the site reported.

Australis suffered unspecified losses at its Calbuco farm, where it has 1.1 million Atlantic salmon worth an estimated USD 6.5 million (EUR 5.9 million), also according to T13. Tide may be turning The stock prices of nearly all the publicly-held companies trading on the Santiago markets have taken heavy hits as a result of the algal bloom, reported Bloomberg News. “Everybody’s nervous,” said John Lüer, export manager for Agrosuper, a Chilean seafood production, distribution and commercialization firm. “It’s not something than can be predicted or managed. The next two to three weeks will be decisive to see if there’s an even bigger impact, but right now we’re all crossing our fingers and knocking wood.”

The main factor affecting the red tide is warm water temperatures, a result of this year’s El Niño weather pattern. With Chile moving from summer into fall, producers in the affected regions are hoping for cooler temperatures and more rain, which would help mitigate the bloom, Lüer said. However, the misfortune of some companies could present opportunity for others, as Agrosuper, with operations located in Region XI, is suddenly sitting on much more valuable product as the total amount of Atlantic salmon stock has declined, according to company sales manager Alberto Valenzuela. “It definitely presents an opportunity,” Valenzuela said. “We have a lot of new best friends.” Agrosuper anticipates production of 70,000 total tons of farmed salmon for 2016, with 55,000 tons of that being Atlantic salmon and the rest Coho. The company operates 34 farms in Region XI.

For Manterola and his advocacy of the Chilean seafood industry as a whole, it was unfortunate that the algae bloom coincided with Seafood Expo North America in Boston 6 to 8 March, as it distracted from the efforts of the Chilean salmon industry to highlight its efforts to increase sustainability and food safety. One-third of Chile’s salmon exports head to the U.S., and the expo represented a once-a-year marketing opportunity on the home turf of one of Chile’s largest trading partners. “America is our most important market and we think there’s still much more room to increase the market in America,” he said. “Today, the consumption of salmon very low in the U.S. compared with Europe or Asia, and we think there are more opportunities to grow and consolidate Chile’s leadership position in this market.”

Despite the bad news, Manterola said, SalmonChile and its industry partners were trying to be as transparent as possible. “We are trying to be very transparent and updating the losses every day. We will not have interruptions in exporting our product, but there is going to be an impact in terms of volume because of the losses,” he said. “Aquaculture in Chile will recover from this and we are focused on the long-term. We have a very strong business and our assets will carry us through this problem.”  

 “We don’t grow when things are easy;

We grow when we face challenges”

~ Danny Meyer, restauranteur, born today in 1958


 

Regards,

TEAM DOWN EAST


Susan Parker

SALTY SUSAN

susan@saltysusan.com

www.saltysusan.com

6467725044