In 2021, together, these 4 enterprises imported nearly 620 million USD of frozen Russian cod (Chionoecetes opilio) and king crab (Paralithodes camtschatica, Paralithodes platypus and Lithodes aequispina), which will most likely decline in 2022 and beyond.
What’s worse is that many buyers have refused to receive pre-stocked goods even when it was brought into the US before the executive order deadline.
A week after President Joe Biden announced a seafood ban by Russia, along with other G7 and European countries, seeking to strip Russia of its “most favored nation” (MFN) status, among other measures, The fisheries sector continues to categorize major branches.
Although Biden’s order is intended to cause economic hardship for Russia, it will also affect the US seafood industry, especially for importers. Russia is the 8th largest seafood supplier to the US in 2021, exporting to the US 48,867 tons of seafood, worth $1.2 billion, up 12% in volume and 34% in value compared to 2020.
Last year, Russia’s seafood exports to the US included about 80 items, but the most valuable were frozen snow crabs with 18,799 tons worth $509.2 million in 2021 and frozen king crabs with 8,486 tons, worth $419.7 million. Russia supplies 30% of snow crabs and 90% of king crab imports to the US.
Meanwhile, according to data released by the Russian government, 2022 will be the most profitable year for Russian crab since 2016. In total, Russia has received a crab catch quota (TAC) of 107,512 tons by 2022. , 6% more than 101,310 tons TAC in 2021.
That includes 51,665 tons of snow crab in 2022, up 11% from the 46,742 tons allowed in 2021, and 27,547 tons of king crab, up 2% from the 27,095 tons allowed last year.
‘There is no other alternative source for king crab.’
US Border Patrol (CBP) data shows that 25 businesses imported Russian snow crab or king crab worth at least $1 million in 2021, of which 10 are estimated to have imported more than 10 million. USD.
Direct Source enterprise imported 2,833 tons of king crab, worth about 128.4 million USD, based on the average price of 45.35 USD/kg. However, Mr. Tkachenko estimates the import volume of king crab is even higher, he also imports some of those crabs from the Netherlands at $60/kg.
“There is no other alternative source for king crab, because most of the crabs are imported from Russia,” Tkachenko said. “You can’t fill that gap. You can source Canadian or Norwegian snow crab, even though it’s a difficult market to reach.”
‘We do not anticipate a supply of Russian crabs in 2022’
Arctic Seafood is the second company that imports Russian crabs that may be severely affected by the ban on Russian seafood. The company is headquartered in San Francisco, California.
Arctic imported 3,258 tons of snow crabs worth an estimated $88.3 million and 12 tons of king crabs worth $525,743 from Norway and the Netherlands, but sources said it was in fact Russian crabs. The company also imported about 10 million pounds (4,535 tons) of Russian snow crab and king crab worth at least $123 million by shipping shipments from the Barents Sea into Canada and then by road into the United States. .
Arctic Seafood accounts for 75% of the quota for snow crab (15,900 tons in total) and red crab (12,690 tons in total) in the Barents Sea, one source said.
The third hardest hit company is Orca Bay Foods, a company with 500 employees worth about $470 million.
In 2021, Orca Bay imported 1,915 tons of snow crabs from Russia through Korea and Japan worth $51.9 million. The company imported another 1,063 tonnes of king crab, estimated at $48.2 million.
“We are deeply concerned about the war in Ukraine and strongly support the US government’s response,” said President and CEO Phil Crean. “Orca Bay is a diversified company with a wide range of food products including a wide range of crabs, frozen fish fillets and cuts (imported and domestic), and valuable breaded, seasoned and seasoned seafood and vegetables. and on-demand cooking services. The focus of our business will remain on interacting with customers to create delicious food.”
Long-term changes to the seafood industry
Fourth on the list of US importers most affected by the ban is Deiss Company, founded by James Deiss in Anaheim, California. The company imported a total of 2,189 tons of Russian crab (1,407 tons of snow and 782 tons of king crab) worth an estimated $73.6 million in 2021.
“I believe that the financial damage that the seafood industry will suffer from President Biden’s Russian seafood ban is not yet evident and will impact the seafood industry for many years and possibly forever.” Mr. James Deiss said.
“With the majority of seafood from Russia being processed and stocked in the Pacific Northwest, a ban on Russian products will have a negative impact on many people in that region. I’m very worried for the goods. hundreds of workers that we use to deliver, store, process and pack millions of dollars of seafood. Many will lose their jobs at some of the largest cold storage facilities in Northwest Thai Binh and elsewhere.”
