Herring market ahs been characterized by low herring catches and high prices in the second quarter of the year. It said that very limited raw material was available from last season and so margins on herring increased during this period. This has surged the prices and the production went up in September as still plenty of quotas were available. It is explained that in the second quarter of 2009, Norwegian production of whole frozen herring was 9 000 tonnes, sharply down from the 26 000 tonnes produced in the same period of 2008.
Herring fillets production was also lower in the second quarter of 2009: 24 000 tonnes, 25 percent less than one year earlier. This decline in production was due to little raw material available. Net sales of herring increased to Russia. Some 98 million NOK were sold to this country in the second quarter of 2009, up from 60 million NOK in the corresponding period of 2008. This was mainly due to sales of contract stored products. Also net sales more than doubled to the EU.
Africa is back as an interesting client of frozen herring. Here mainly small sized fish is sold, which is later processed in the traditional way. Exports of Norwegian frozen whole herring increased in volume by 52 percent from 322 800 tonnes in 2006 to 491 500 in 2008, averaging a 23 percent year-on-year growth.
Japanese imports of herring declined sharply in 2009. 95% of imports are roe herring, mainly coming from USA and Russia. While imports from the USA were about stable in 2009, Russian exports declined sharply. Between 2006 and 2008, German imports of frozen herring fell by 15 percent from 35 700 tonnes to 30 200 tonnes, but experienced an increase in 2007 to 38 400 tonnes.
Russia and Eastern Europe has remained the largest market for sales of herring in the top season. Underlying consumption is strong, but financial stability and access of capital will have great importance for ability to put great volumes into the markets.
