The Norwegian Seafood Council is closely monitoring the evolving trade relationship between the US and China following the US's recent tariff increases on Chinese goods.

While China's initial response has been measured, and seafood has so far been excluded from retaliatory measures, the country has filed a formal complaint with the World Trade Organization (WTO), alleging tariff violations and protectionism. The US justifies the tariffs, in part, by citing concerns about opioid smuggling from China.

The WTO process is unlikely to yield immediate results. China's approach may be aimed at portraying itself as a compliant participant in the international trade system, contrasting with the US's unilateral actions.

Potential Impacts on Norwegian Seafood Exports

Developments in this trade dispute are critical for Norwegian seafood exporters. If the US seeks to bolster its domestic seafood processing sector, it may implement tariff exemptions on raw material imports. This strategy mirrors the EU's use of autonomous tariff quotas, allowing duty-free raw material imports for processing within the EU.

The ultimate impact of the US tariffs will depend on China's subsequent actions and any adjustments the US makes to protect its own industries. Therefore, close observation of these developments is essential for the Norwegian seafood industry.

Peru's Ministry of Production (PRODUCE) has announced extended deadlines for the installation of the Satellite Tracking System (SISESAT) on artisanal fishing vessels.

This decision aims to ease the economic burden on the artisanal fishing sector while simultaneously promoting formalization and improved fisheries management.

Vice Minister Jesús Barrientos stated that the extended deadlines strike a balance between sustainability and formalization, allowing for more effective monitoring and control of the fleet. The staggered implementation schedule, based on vessel hold capacity, will also aid in combating illegal fishing activities.

The new deadlines are as follows:

• Vessels up to 10 m³ hold capacity: December 31, 2026
• Vessels between 10 m³ and 20 m³ hold capacity: July 31, 2026
• Vessels between 20 m³ and 32.6 m³ hold capacity: January 1, 2026

Two leading Japanese seafood companies, Maruha Nichiro and Nissui, have announced positive financial results for the April-December 2024 period.

Maruha Nichiro: Consolidated sales reached ¥828.1 billion (approximately US$5.6 billion), a 5.2% year-on-year increase. Operating profit rose 9.8% to ¥27.8 billion (approximately US$188 million). Growth was driven by increased sales volume in both the marine resources and processed food segments, with particularly strong performance in food distribution (marine products) and the processed food segment (pet food). Marine resources sales specifically increased 10.6% to ¥1.86 billion (approximately US$12.6 million).

Nissui: Consolidated sales increased 6.1% year-on-year to ¥663.3 billion (approximately US$4.5 billion). However, operating profit decreased 5.7% to ¥24.8 billion (approximately US$168 million). While sales benefited from strong food product performance and favorable exchange rates, operating profit was impacted by challenges in the seafood business and domestic food products, despite strong performance in overseas food products. Nissui considers the results to be in line with expectations. Seafood business sales specifically increased 5.7% to ¥270.6 billion (approximately US$1.8 billion).

Note: Conversions to US dollars are approximate and based on current exchange rates. Fluctuations in exchange rates may affect the actual USD values.

China is challenging the US's newly imposed 10% tariffs on Chinese goods, effective February 4th, with a World Trade Organization (WTO) complaint and unspecified retaliatory measures.

This action follows a 25% tariff on Canadian and Mexican products, and an additional 10% on China, citing concerns about fentanyl flow to the US. China argues the tariffs violate international trade rules and rejects the fentanyl connection, highlighting bilateral anti-drug cooperation.

These new tariffs exacerbate existing trade tensions, adding to the nearly $350 million in annual tariffs imposed on Chinese seafood since 2018, which remain in place. While China's response is more measured than Canada's and Mexico's, the potential impact on seafood exports is significant. A 35% tariff on the US's $1.55 billion in Chinese seafood imports (2023 figures) could result in a $540 million loss. Frozen tilapia, a major export, is expected to be particularly affected, having already incurred $77.5 million in tariffs on $320 million worth of imports in 2023. The impact on previously duty-free seafood remains unclear.

Japan is assessing the tariff's impact before determining its response and has established a consultation desk for affected businesses. The tariffs coincide with China's Lunar New Year holiday, adding pressure on businesses. Exporters have prepared for the tariffs, but uncertainty remains regarding future price adjustments. The Chinese aquaculture industry is currently focused on inventory levels, with expectations that frozen inventory is not excessively high. Raw material prices have fluctuated, and while stability is hoped for post-holiday, exporter actions will be key.

Herring gillnet and fixed net catches along the Japan Sea coast of Hokkaido totaled 311 metric tons as of January 31st, a substantial decrease compared to the same period last year.

Photo: Fisheries Hokkaido Blog

Catches were distributed across several regions, with the largest volumes reported in Ishikari (218 metric tons), followed by northern Shiribeshi (93 metric tons). Smaller catches were reported in other areas. Blizzards in February temporarily halted some fishing activity, but the season is expected to resume.

Despite the lower overall catch, herring deliveries to the Sapporo Central Market have been increasing since early February, with strong demand anticipated for the March peak season. Deliveries from Ishikari have been consistent, with daily volumes ranging from 25 to 66 metric tons and prices around ¥500-¥600 per kilogram. However, deliveries from Shiribeshi remain low.

Mowi has estimated that around 27,000 farmed salmon escaped from its facility in Troms at the weekend.

The incident is one of the largest, and certainly one of the costliest salmon escapes for some time. With an average weight of 5.5 kg and ready for harvest , it would amount to a total financial loss of over £1.5m if none of the fish are recaptured.

But such a scenario is thought unlikely, so the eventual loss will depend on how many fish can be returned to the site.

Around 105,000 salmon were in the facility. If estimates turn out to be correct, 25% of the stock escaped.

Author: Vince McDonagh / Fish Farmer l Read the full article here

Salmon Evolution reports record Q4.

Land-based farming frontrunner Salmon Evolution posted revenues of NOK 149.5 million ($13.3 million) in the fourth quarter of 2024, delivering a group EBITDA of NOK 9.2 million ($820,000) and a Farming EBITDA of NOK 15.3 million ($1.36 million).

The company ended the year with a new harvest record and reinforced its position as a leader in land-based salmon farming.

Source: SalmonBusiness l Read the full article here

Seafood distributors are responding to U.S. President Donald Trump’s most recent trade announcement with caution, unsure how they will be affected by 25 percent tariffs imposed on foreign steel and aluminum.

While most said they didn’t expect to be directly affected by the metal tariffs, anxieties about inflation in the food industry in general remains high. 

More recently, in response to tariffs imposed on Canada, Mexico, and China, the NRF urged the Trump administration to work with its trading partners to find solutions that would “avoid shifting the costs of shared policy failures onto the backs of American families, workers, and small businesses.” 

Author: Erin Spampinato / SeafoodSource l Read the full article here