Seafood industry bids farewell to legendary advocate

68 Pages·2014·18.64 MB·English

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VOLUME 9 / NUMBER 2 / SPRING 2014 / QUARTERLY
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Former NFI president, seafood regulatory expert Dick Gutting passes away...
Seafood industry bids farewell
to legendary advocate
On December 24, 2013 Urner Barry was “He was chief advocate for the hardworking
saddened to report that our respected business men and women who put healthy, delicious,
partner and longtime friend, Richard E. Gutting, iconic seafood on America’s plates,” said NFI’s
passed away at the age of 70 in Alexandria, President John Connelly who succeeded Mr.
VA due to illness. Dick possessed not only a Gutting at the helm of the Institute. “In his
remarkable skill set but a passion for the industry many roles he was a scholar, a teacher and an
that was so well revered. So many industry leaders expert, but most importantly he was a trusted
not only relied on Dick for his expertise, but also leader for a community as it quickly transitioned
for his guidance, and with many, his friendship. from local to global.”
Dick served as President of the National Over Dick Gutting’s 45-year career specializing in
Fisheries Institute from 1997 to 2002 where he seafood regulatory and trade issues, the seafood
helped the association serve as a voice for the industry grew to recognize him as the foremost
seafood industry to get more U.S. consumers
Richard E. Gutting interested in seafood. Continued on page 66
Adjusting and adapting…
Supply and demand; a little beyond the fundamentals
A few issues ago Urner Barry’s Reporter market will correct itself by adjusting prices will adjust higher for commodity “Y.” Yet,
aimed at explaining why benchmark where—in theory—they ought to be. For there is much more than meets the eye
pricing is essential for markets to work example, if the price of commodity “X” is when analyzing supply and demand curves
more efficiently, and how Urner Barry at an all-time high, but product movement over time. Here, we will attempt to explain
quotations have proven to be a gauge for is lackluster, market fundamentals suggest why such market conditions exist.
the market in our industry. Yet, markets that over time prices will adjust lower for
are generally imperfect and will fail to commodity “X.” In the same respect, if the For all intents and purposes we must
allocate resources in the most efficient price of commodity “Y” is relatively low first roughly understand how supply and
manner—even if market prices suggest the and available supply is very tight, market
opposite. When such situations occur, the fundamentals suggest that over time prices Continued on page 64
On the inside
6 A glimpse at 28 Sea Port 50 Astute
the world of Products: carnivores
shell eggs. An industry know their
leader. Prime beef.
Supply and
demand Company leaders Chefs willing to
trends are remain keen invest in Prime
having a more on important beef expect
pronounced industry trends consistency.
impact on the and make sure
market. Sea Port’s voice
is heard.
www.lamonicafinefoods.com
2 • URNER BARRY’S REPORTER / VOL. 9, NO. 2 / SPRING 2014
URNER BARRY’S REPORTER • VOL. 9, NO. 2 • SPRING 2014
Center of the plate
the newsmagazine for the
food industry professional Page 1
Supply and demand;
a little beyond the
Publisher
Paul Brown Jr. fundamentals
senior editor
Russ Whitman
Managing editor
Joe Muldowney
Contributors
Russell Barton
Caroline Hirt
Jamie Chadwick
Jim Kenny Page 1
Brian Moscogiuri Seafood industry bids farewell
Gary Morrison
to legendary advocate
Michael Ramsingh
Angel Rubio
Main ingredients
John Sackton 32 Alaska’s record 2013 salmon harvest nearly most
Curt Thacker valuable ever
Terence Wells 6 Record November egg exports lead to record
38 National birth defects prevention month
MaryAnn Zicarelli markets
underscores need for higher choline intake
CoPy editor 17 Hog weights hit all-time high records, week after 40 David Van Hoose presented with 2014 NPFDA
Linda Lindner week
Poultry Industry Lifetime Achievement Award
18 U.S. cattle weights continue to climb
art direCtor 41 Seafoodnews.com
Glenn F. Juszczak 22 The Canadian dollar is down – opportunity for U.S. launches new website
pork buyers? at Boston Show
ProduCtion Manager
28 Sea Port among industry movers operating through 44 Urner Barry: the inside
Chris Ashley
passionate leadership story
assoCiate designer 36 Bellies in cold storage highest in 25 years – PEDv 48 Retailers continue to
Maria Morales related? embrace shrimp at
holidays
advertising 42 Meat supply shakeup forecast for 2014, but
Janice Schreiber combined total nearly flat 50 Pricey prime beef better
Terence Wells be great
46 Rising beef prices may force consumers to change
eating habits 53 Grocer’s guide to
subsCriPtion inforMation
merchandising
800-932-0617 54 Striving for a smarter aquaculture industry
56 Seafood market talk and more in Miami
News bites
58 Migrant workers are a scarce commodity on U.S.
farms
4 GForce – Simplifying the process for Chilean Sea
Bass importer 60 Health concerns, tight budgets boost home cooking
10 India saves U.S. shrimp supply 62 Urner Barry visits Ecuador and Mexico
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63 Chickens – Moving up in weight class
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VOL. 9, NO. 2 / SPRING 2014 / URNER BARRY’S REPORTER • 3
Program easily integrates all parts of the importing process …
GForce – Simplifying the process
for Chilean Sea Bass importer
What is “The Holy Grail of Cook reiterated to the Reporter
importing seafood”? According the importance of complying with
to Mike DellaGrotta, Chilean government regulation. He knows
Sea Bass importer and President that importers around the world
of Kendell Seafood, it is GForce! are also aware of the magnitude
DellaGrotta was excited to share of specificity necessary when
with Urner Barry’s Reporter his dealing with record keeping and
experience with this Enterprise documentation when bringing
Resource Planning Software that product from one place to another.
he has been piloting for the past Cook said that is why GForce is
five years. We sat down with going to be such an important
GForce’s program developer, tool for importers to use. As more
Jonathon Cook and DellaGrotta individuals utilize GForce around
for a virtual demonstration. the world on a daily basis, and
With enthusiasm, DellaGrotta vendors and customers continually
expressed his desire to share with log in and input and utilize the
other importers the benefits he “GForce is a feature-rich system that leaves all the data, an abundance of pertinent
uncovered using GForce. guess work out and puts a plethora of pertinent information comes to light—various
information at importers’ fingertips.” sources within the supply chain are
DellaGrotta said that import continuously uploading documents
requirements imposed by the FDA with each progression of the import
and NOAA are very strict and it is highly while minimizing human error. Invoices process. YET, Cook says that he wants
important to have proof of documentation. are generated and sent electronically to stress that subscribers can rest assured
Especially crucial when importing Chilean cutting time and cost of shipping. though that the permissioning is very
Sea Bass are dates and times. If importers DellaGrotta said he knows exactly what is specific and secure.
do not comply and document all the coming before it arrives and it also helps
required information containers worth him control inventory. Each shipment Testimonies of GForce’s success are in no
millions of dollars can be seized. In some shows an icon that changes with each short supply: “Kendell is my only customer
cases, fines and even jail time can be status update. in 30 years where we enter all the export
imposed on importers who fail to meet the documents and purchasing information
stringent requirements. DellaGrotta praised the potential of necessary for U.S. import. GForce makes
GForce. He said that since he began using life so much easier for us because all of
Kendell Seafood decided it was in the the system he has minimized human error, our documents and information are easily
company’s best interest to find a system streamlined processes (saving both time accessible in one place, sent out to all
that would ensure it is following all and money) and most importantly has kept necessary parties and never get lost. It is a
necessary importing documentation and compliant with FDA and NOAA. great system!” Eduardo Infante, globalpesca
procedures. DellaGrotta worked with Cook SpA, Santiago Chile.
to develop this cloud-centered program as DellaGrotta isn’t the only one pleased with
a means to easily integrate all parts of the the software’s capabilities, “I have seen GForce is not limited to importers of
importing process of Chilean Sea Bass. and used several software systems but none seafood. This medium-size business
has conquered the ‘one and done’ order cloud solution can store and manage
GForce is a feature-rich system that leaves entry like GForce,” said Vince Lombardi, data from every stage of business. It
all the guess work out and puts a plethora President Synergy Seafood, Orlando, FL. provides a real-time view of core business
of pertinent information at importers’ “With GForce I enter an order and it is processes and facilitates information
fingertips. Suppliers, shippers, cold storage, transmitted to the warehouse and trucker flow between all business functions. It is
invoicing, CRM, accounting systems, by EDI and emailed to my customer in 100% customizable to meet importers’
FDA, NOAA are all rolled into one ‘one’ button click. Then I sit back and specifications. To learn more about
system. Photos of containers, numbers, watch the order status change via the GForce, email [email protected] or visit
seal numbers, are all there. Pictures of hand shaking between GForce and the www.gforcev.com.UB
the boxes, the fish, the packaging, weight, warehouse and between GForce and the
price, form, survey reports, date of arrival, trucking company. This can easily save a Article contributed by MaryAnn Zicarelli
and calculations of weights are done all company over $100,000 in logistics.” [email protected]
4 • URNER BARRY’S REPORTER / VOL. 9, NO. 2 / SPRING 2014
EPIC.
kendell platinum comes to you from the end of the world.
location of origin: patagonia
SEAFOOD IMPORTS
booth 242 boston
www.kendellseafood.com
VOL. 9, NO. 2 / SPRING 2014 / URNER BARRY’S REPORTER • 5
Global egg market shrinking …
Record November egg exports
The world of shell eggs, as we
once knew it, has been shrinking
with each passing year. Supply and
demand trends are having a more
pronounced impact on the market
both in their country of origin and
across the globe. Technology is
also playing a lead role as it has
©iStockphoto.com/WestLight helped to make transportation,
communication, and processing
more efficient over the years,
enabling traders to extend their
reach across borders.
Never has the aforementioned been more
evident in the United States than in the
fourth quarter of 2013 when Urner Barry’s
egg prices hit record highs ahead of the
holidays. Cold weather and preholiday
retail feature activity factored domestically,
but the USDA Economic Research Service
reported record high exports of shell
eggs and egg products for the month of
November. More than 39 million dozen,
or roughly 16 hundred truck loads of shell
eggs and egg products, moved outside of
U.S. borders during the period. That sum
equates to a 58% increase from November
2012, and an 89% increase from the
previous five-year-average for the month.
Nearly two-thirds of the record shipment
traveled to three countries: Mexico,
Canada, and Japan.
Opportunity to ship product south of the
border has been up and down since avian
influenza spread through a large portion
of Mexico’s table egg flock in August
2012. Most report that the issue has been
resolved and that the flock is returning
to normal more recently. That hasn’t
stopped them from remaining an active
shopper of U.S. shell eggs and egg products
though. In 2013, buyers took on 275%
more shell eggs in the month of November
when compared to 2012, and 74% more
egg product. It was not a peak month for
6 M•o aUrk_RimaNge_EadR_r evB1.AinddR R1Y’S REPORTER / VOL. 9, NO. 2 / SPRING 2014 12/19/07 2:47:13 PM
“Nearly two-thirds
of the record
Record November egg exports lead to record markets
shipment traveled
to three countries:
business down south by any stretch though, half. Shipping eggs overseas can be more Mexico, Canada,
as Mexican buyers have been extremely difficult given costly tariffs and lengthy
and Japan.”
price sensitive. travel schedules, though dried and frozen
product limit potential risks. Japanese
Canada typically enters the market buyers showed strong interest for egg
annually ahead of the holiday period, products during the month of November, across the Pacific, citing that Japanese egg
but in November of 2013, buyers took taking more than three times that of 2012 producers may be taking advantage of high
on nearly double their five-year average and three and a half times that of the five land values since the Fukushima incident
shell egg deliveries and nearly triple year average. Domestic price points would and closing production facilities.
their average egg product purchases. Tim indicate yolk was the primary item of
Lambert, CEO of Egg Farmers of Canada, focus, especially since whites hovered near Though there was no single driver to the
stated that, “Canada’s table egg market all-time highs for the period. This would record U.S. shell egg prices in November
is consistently growing year over year and also partially explain why yolk was not 2013, increased exports to these three
Nielsen data showed a 3.4% increase in readily forced for sale on the open mark, destinations played a tremendous
retail table egg sales in 2013. To meet though European traders would also take role. International drivers have had a
the market’s requirements, Canadian advantage of the low yolk prices offered by pronounced affect on shell egg prices.
egg farmers are currently in the process processors in the states. Also surprising, The U.S. egg industry appears poised to
of increasing production to meet the was that shell eggs traveled into Japan continue their relationships with foreign
increases in demand.” during the period. Although it was only a trading partners going forward, especially
few loads, it was more than 12 times the in their times of need.UB
Trucking eggs across U.S. borders has previous five year average for the month
become a regular part of day to day of November. Some industry professionals Article contributed by Brian Moscogiuri
business, particularly in the last year and a continue to note interest for shell eggs [email protected]
Total MonthlyExports of US Shell Egg and Products
GET CONNECTED!!
45
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Eq.35 NATIONAL POULTRY & FOOD
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Processors • Distributors
5 Year Monthly Exports Vs. Monthly UB MW Large
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45 $1.80
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q. 35 $1.40 Transportation Companies
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Million Doz 2205 $$01..8000 /Dozen 2014 OsSbuornpep Rloyad C •o Smainpt Maanryise, GsA 31558
15 $0.60
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10 $0.40
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5 $0.20
www.npfda.org
Source: USDA, Urner Barry
0 $0.00
[email protected]
2009 2010 2011 2012 2013
VOL. 9, NO. 2 / SPRING 2014 / URNER BARRY’S REPORTER • 7
X _____________________________________
Sign here for approval and fax to: 732-341-0891
Date ____________________
Trucking industry should benefit positively ...
Panama Canal expansion
to affect many industries
m/NTCo
©iStockphoto.co
The economy of the United States is one the number of transits seen the last three
of the biggest and most important in the years as well as reduce tonnage passed
world. The country is among the top three through the Canal from 2012 to 2013. It
global importers and exporters. If there is also expected to affect shipping patterns,
were no international trade, each country, ports, infrastructure, and complimentary
Family owned since 1962
including the U.S., would be restricted to industries.
The Oldest Independent Importer the goods and services produced within
Sustainable Mexican Shrimp their own borders. Many people in today’s Many of the most popular ports on
age can’t imagine such a possibility as we the East and Gulf Coasts have readied
constantly come into contact on a daily themselves for the changes that should
basis with a variety of items made in many include increases in volumes from larger
different countries. loads on these Post-Panamax vessels. And
because more cargo will arriving and
So how do the inputs and corresponding departing on each of these larger ships,
outputs produced get into our hands? the demand for trucking to move goods
There are many different modes of inland will also increase. This comes at a
transportation, but for large shipments time when that industry is struggling to
across bodies of water the most notable expand the workforce to meet the growing
is shipping. That’s why the $5.25 billion demand, yet still faces a driver shortage.
Panama Canal expansion project is so According to the Bureau of Labor
important. It is expected to double the Statistics, the trucking industry growth is
capacity of cargo through the Canal by expected to be 21 percent through 2020.
ele brati 2015. This is going to be done twofold: Shipping rates could increase because of
C 52 n larger locks and channels will allow ships this growing demand, leading to higher
g twice the size currently able to transit the consumer prices on many items.
Years
Canal to move through, and new locks
323.849.6679 • 818.846.5222 will allow more vessels to pass through Another industry that could benefit from
www.deepseashrimp.com
per day. This, along with an improving the expansion is the growers of grains.
[email protected]
economy, should reverse the decline in According to the Panama Canal Authority,
101 South First Street • Burbank, CA 91502
8 • URNER BARRY’S REPORTER / VOL. 9, NO. 2 / SPRING 2014
“...we constantly come
into contact, on a daily U.S. No 2 Diesel Retail Prices
basis, with a variety
$5.50
of items made in many
different countries.” $4.50
n
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all
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er
dry bulk cargo, such as corn and soybeans, p
is the second largest portion of income ars $2.50
generation for the Canal. And increased Doll
$1.50
passage of larger ships and capacity could
significantly reduce the cost to transport
$0.50
product. This could help U.S. producers
'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13
become competitive globally in the face of Source: EIA
expectations of record large crops that have
brought prices down nearly 50 percent
from record levels. Transit at the Panama Canal
335 15.0
Despite recent issues between the Panama
Canal and a consortium of construction 330
companies over cost overruns, which has 14.5 sits
T n
already pushed back the finishing date, M 325 ra
tcohof emi nppdrlouetjseetcrdit.e wsT iihlnli csd lwuoduilibln liegm t-p hbaeuc tct aanp owatci dilitemy roiatnencdge e Millions of 331250 1134..50 ousands of t
to - shipping, trucking, agriculture, and h
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many more.UB 310 13.0
2011 2012 2013
Article contributed by Gary Morrison Panama Canal UMS Net Tonnage Number of Transits
[email protected] Source:Panama Canal Authority
34 YEARS OF NATIONAL SERVICE WITH PRIDE
TRADERS OF A
FULL LINE OF
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POULTRY
PRODUCTS
Alan Singer Hector Perez
25 West Union Street 320 Miracle Mile, Suite 202
Ashland, MA 01721 Coral Gables, FL 33134
Tel. [phone] Tel. [phone]
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Puerto Rico
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VOL. 9, NO. 2 / SPRING 2014 / URNER BARRY’S REPORTER • 9
Navigating through the 2013 global shrimp shortage …
India saves U.S. shrimp supply
It was a rough year for U.S. In fact, in the late summer
shrimp importers in 2013 who it was Indian shipments that
slogged through shortened helped stabilize U.S. supplies
global supplies as major in August and September as
producers struggled to combat imports from Thailand and
early mortality syndrome (EMS). Ecuador waned.
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with a myriad of other Asian
producers, Indian shrimp Fast forward to November,
farmers stepped up their white shrimp year totals; a 60 million pound surge and U.S. shrimp supplies continued to
production and helped mitigate the year-over-year. trend down at 4.4 percent below 2012
supply loss. levels, a difference of about 46.4 million
Meanwhile, Thai and Ecuadorian shrimp pounds YTD.
As of November 2013, total Indian shrimp shipments to the U.S. in November
shipments to the U.S. were up nearly continued to decline 37 and 7 percent While U.S. shrimp supplies remained
47 percenatd i-nco 2rr0c1t3io cno_fminpaal.raeid t o1 p r i2o2r/ 01/14 1:r3e6s pPMectively. down in 2013, were it not for Indian
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[email protected] | www.deviseafoods.com
10 • URNER BARRY’S REPORTER / VOL. 9, NO. 2 / SPRING 2014