The Illex squid fishing season got off to a bad start, the price in Chinese market has risen!-copy-1

Early reports of poor squid catches in Argentina are pushing prices higher in the Chinese squid market. Prices have been rising since Argentina's fishing season began on Jan. 10 as factories feared a potential shortage of supplies this year. The increase is between 200 and 300 US dollars per ton.

Juan Redini, president of CAPA, the Argentine squid industry association, said the majority of Argentina's industrial squid fishing fleet - 72 in total - is currently fishing at about 100 nautical miles off the coast, 47 degrees south latitude.

He said that usually when the fishing season starts is the peak period. Each vessel catches about 60 tons a day, but this year the vessels are only catching 20 to 30 tons a day. There are also smaller vessels handling 15-20 tons per day. Chinese deep-sea fishing vessels fishing in the high sea at 45 degrees south latitude. The high seas fleet fishing outside Argentina's Exclusive Economic Zone (EEZ) catches even less, at just 3-5 tonnes per day per vessel.

The reason for this year's low production is unknown. "The water temperature is the same as in normal times. It is possible that the squid populations migrated to other areas. We have not found them. The season has just started, let’s wait and see." Redini said.

The drop in output has Chinese processors worried about supply. According to the Food and Agriculture Organization of the United Nations, the Illex squid fishery is one of the three largest commercial squid fisheries in the world, along with the Japanese squid (Todarodes Pacificus) in the Sea of Japan and the Japanese giant squid (Dosidicus Gigas). Currently the price of Illex squid tubes is going up.

About 70 percent of Illex squid is exported to China from Argentina. During the epidemic, many exporters are selling their products to North America, Europe, Japan and Southeast Asia. "Most of the squid that went to China last year was caught outside of Argentina (water area) because the Argentine fleet didn't ship much squid to China. So maybe in China, the inventory is not large."

One possible reason for this year's decline in catches is overfishing, Redini said. Currently, the squid fishery is unregulated, although the Argentine government advises fishermen to leave 20 percent of the fish stocks for spawning. The head of the fisheries association said Argentine fishermen were unwilling to limit the amount of fish caught by international fleets on the high seas.

In addition to the low catches in Argentina and supply shortages in China, stocks of Sea of Japan squid, another major commercial species Todarodes, were also flat. The Todarodes squid caught last year nearby the Sea of Japan were "disappointing". “Todarodes squid are very limited in stock, so prices in China are higher than Illex squid. The price of frozen whole squid 200g-300g in Chinese ports was 26,750 yuan/ton in the last week of December, the latest week for which price data is available. Compared with the same period in 2021, the price rose by 4,500 yuan/ton.

Prices are likely to rise further as domestic demand in China also picks up after the country lifted its virus containment policies. Now China's market has begun to recover rapidly. Demand in the Chinese local market is very good.