Alaska Salmon Price Report, May-August 2007

 

The Alaska Salmon Price Report (ASPR) covers wholesale volume and first wholesale value, by species and area, for six key Alaska salmon products. It is the primary data source for most of the salmon market analysis published by the Seafood Market Information Service. The report as published by Department of Revenue is specific to area but is summarized into statewide totals here.

Total May-August ASPR sales value continues to rise, up 9 percent from $347 million in 2006 to $380 million in 2007.

Despite a relatively slow pace of sales for frozen sockeye, frozen H&G salmon still made a 3 percent value gain compared to the same period a year ago, totaling $141 million for May-August 2007.

Value of canned salmon sales dropped significantly for the May-Aug 2007 period, down 20 percent from $72 million to $58 million. While canned sockeye sales volume and price were fairly typical of the May-August sales period, canned pink sales volume was less than half the 5-year average for the period. Average wholesale case price of canned pink increased substantially, but not enough to offset the decreased sales volume.

With respect to the total ASPR sales value for May-August 2007, the decline in canned salmon sales revenue masks substantial value increases in three other categories for the May-August 2007 period:

• Fresh H&G sales value grew 22 percent, from $66 million to $81 million.
  
  
• Salmon roe sales value grew 32 percent, from $46 million to $61 million.
  
  
• Value of fresh and frozen salmon fillet sales grew 50 percent, from $26 million to $39 million.

 

 

 

 

H&G Frozen
Average wholesale price for H&G frozen sockeye rose 8 percent, from $1.86 to $2.01 per pound. However, sales volume through August is light (down from 37 million to 32 million pounds) especially considering the increased production of frozen H&G sockeye. Production is up from 81 million pounds in 2006 to an estimated 100 million pounds in 2007.

There is a complete article focusing on frozen sockeye exports, pace of sales and related market implications elsewhere in this bulletin.

Sales volume of frozen H&G pink salmon increased from 32 million pounds to 50 million, but average wholesale price for the May-August period dropped slightly from 78 cents to 75 cents per pound. July and August export figures for frozen pinks show approximately 76 million pounds, with China receiving 56 percent, Thailand 24 percent and European Union Countries 11 percent.

Frozen H&G chum sales volume fell from 36 million to 29 million pounds, consistent with the 20 percent decline in harvest volume. Average chum price declined slightly from 95 cents per pound to 89 cents. While this is a price decrease, it is fairly close to the strongest wholesale chum price in several years. H&G frozen chum averaged 95 cents throughout 2006, but only after spending several years at the low end of the 40-60 cent range.
Average wholesale price for frozen H&G coho was up substantially, from $1.83 to $2.39 per pound. However, May-August is usually a minor sales volume period for frozen H&G coho, typically accounting for 25 percent or less of annual sales.

H&G Fresh
The May-August 2007 period is remarkable for the sales volume of fresh H&G salmon: 34 million pounds. This is a 30 percent increase from H&G fresh sales of 26 million pounds during May-August of 2006 and 50 percent higher than the five-year average for the period.

Four out of five Alaska salmon species showed modest growth in average first wholesale price with increases ranging from 2 cents per pound (sockeye) to 67 cents per pound (Chinook). Even this modest growth is significant in light of recent price history for H&G fresh products. Prices are at their highest point in the seven-year history of the ASPR data set.

The one exception is H&G fresh chum salmon, which dropped from $1 per pound to 67 cents.

 

Fresh and Frozen Fillet
Unlike the across-the-board increases a year ago, unit value changes for fresh and frozen fillets were mixed in May-August 2007. There were significant price increases for low-volume products like Chinook fillets, but the major fillet products showed a slight decline in average wholesale price. Fresh and frozen sockeye fillets dropped by 10-20 cents per pound and frozen chum fillets were down 9 cents per pound.

Despite the modest price decrease for the major fillet products, fillet sales value continues to grow rapidly. May-August sales value of fresh and frozen fillet has more than doubled in two years, from $18 million in 2005 to $39 million in 2007.

Total sales volume of fresh and frozen fillets grew from 6.7 million pounds in May-August 2006 to 9.7 million pounds in 2007.

Roe
Total sales value of roe for the May-August period grew substantially, up 38 percent from $46 million in 2006 to $61 million in 2007.

The value increase was driven by growth in both sales volume and price. Sockeye roe sales increased from 3.1 to 3.7 million pounds accompanied by a price increase from $2.79 to $3.48. Pink roe sales nearly doubled from 3.7 million pounds to 6.4 million with a price increase from $4.04 to $4.55 per pound.

Chum roe sales were down from 3.5 million to 2.7 million pounds, but average wholesale price rose from $6.11 to $6.89.