SEAFOOD

Americans reportedly spend nearly $50 billion each year on fish and shellfish products with about $32 billion being purchased in foodservice establishments and about $17 billion at retail. Americans consume about eight percent of the total world catch of fish. Increases in aquaculture production supplement the limited supplies of wild-caught fish to meet demand throughout the world. Data from the National Marine Fisheries Service show that per capita consumption has averaged around 15 pounds for the past 15 years.

The seafood marketplace is global with the U.S. being both a major importer and exporter. The National Marine Fisheries Service reports that 1.7 million metric tons of edible fish products worth $9.0 billion were imported in 1999. This represents a seven percent and 10 percent increase, respectively, over 1998. Shrimp imports, at $3.1 billion, accounted for 35 percent of the value of imports. Exports increased to 864,166 tons of domestic edible fish worth $2.7 billion (corresponding to a 17 percent and 22 percent increase respectively). Edible fish of foreign origin was exported at a much lower volume (25,393 tons) and value ($116 million). The net result was a trade deficit over $6 billion.

A number of industry representatives voiced concerns about demand and supply but, in general, see opportunities for growth. Valueadded products and aquaculture will play a major role in the future of the seafood industry.

Petur Masson, marketing director, Coldwater Seafood Corp., Rowayton, CT, characterizes the state of the seafood industry as "sluggish." Consumer demand for seafood is at best stable overall, but there is a gradual shift away from heavily breaded products to light coating or no coating. Sales of value-added fillet products are gradually increasing, while sale of block-cut products are stagnant or falling. Last year Coldwater, the largest importer of frozen fish for the foodservice industry and best known for the Icelandic Brand products, introduced a shredded potato coated fish that has met with some success. Meanwhile, the company plans to introduce new products in the natural fillet portions category later this year. "The movement towards lighter, natural products will probably continue. Farmed species will continue to grow in importance," Masson predicts.

George Andrews, vice president, sales and marketing, Indianola, MS-based Delta Pride Catfish, also sees continued growth for aquaculture seafood. "Wild-caught is under a lot of politically driven pressure and environmental pressure," he points out. Delta Pride, a farmer-owned cooperative, is the largest processor of farm-raised catfish in the United States with a 2.5 million pound capacity per week. About 60 percent of its product is IQF and 40 percent ice pack. "Consumer demand continues to grow with a six percent increase across the catfish industry," Andrews says. "In past years, it was growing at eight to nine percent, but right now there is a supply issue due to a bad winter a few years ago." From a sales perspective, he says it's a "dog-eat-dog world" with much competition but "it's nowhere-but-up" from an opportunity perspective.

Carol Haltaman, president, Crisfield, MD-based John T, Handy, hasn't seen much change in the market recently. "Sometimes we see higher prices, and supply is a little tight," she says. "With wild-- caught fish, season and weather are factors." Consumer demand for seafood is on the upswing, because people are more familiar with it and chefs are more creative in how they prepare it, she assesses. Handy has products that are distributed nationwide to the foodservice and retail markets.

"The real future is in more valueadded products," Haltaman says, Handy introduced hand made salmon cakes made with 70-percent Atlantic salmon eight months ago, which Haltaman says "is going well." Other products include softshell blue crab, frozen handmade crab cake, and stuffed crab. Handy uses wild-caught crab and farmraised salmon in its products.