21 July 2022

How global dynamics are shaping the seafood industry

global food prices

Globally, food prices are on the increase and unfortunately, the seafood industry has not been spared.

As a result of COVID-19, the war in Ukraine and the impact of climate change, global commodity markets are being reshaped in a lasting way. The war has disrupted production and trade of several commodities, particularly those where Russia and Ukraine are key exporters, including energy, fertilizers, and grains.

These price increases come on top of a number of existing COVID-19-related supply constraints battling to meet global demand.

How the war is affecting the fishing industry

International sanctions have been preventing Russia from exporting pollock and cod, which is creating a shortage of white fish and driving up demand for possible alternatives such as hake and kingklip. In addition, the demand for fish has increased from Europe and other markets post-COVID, and this is driving up the price of hake and hake products, including fillet block and mince block. This is affecting the price of our crumbed and battered products, such as fish fingers and fish cakes.

The cost of edible oil has increased by 30% since the first quarter of 2022 and further increases are expected. Wheat prices have also increased significantly, driving up wheat- or flour-based ingredient costs with further increases possible in Q2 and Q3. This is affecting the cost of our battered and crumbed products.

Increased cost of diesel and packaging

Furthermore, the diesel cost increases experienced in the second quarter of 2022 has had a significant impact on operating costs, including road transport and vessel working costs, and to round off the perfect storm, the cost of packaging has also increased due to the rising cost of plastic, paper and board.

China’s squid supply

The lockdown in China during April and May 2022, along with low catches, have depressed the supply of squid products while demand has recovered post COVID-19 and is increasing; this has had the effect of increasing the price of squid products.

Our commitment to you

At Atlantis Foods, we are as committed as ever to provide the best product at the best possible price, and we will endeavour to do everything within our power to shield our customers from these price increases as much as possible.

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