Peruvian scallop exports to the US surged in late 2024, but recent environmental disasters threaten this momentum. Despite lower domestic landings and rising prices prompting US buyers’ interest, the scallop market remains tight. Japan leads as the largest supplier, while Peru ranks second amid cautious buyer sentiment due to potential supply disruptions.
Peru experienced a notable increase in scallop exports to the US during the last quarter of 2024, reversing a trend of low shipments from the first nine months. This surge transformed Peru into a vital supplier for US buyers facing dwindling domestic landings and rising wholesale prices, thus alleviating some availability issues in a constrained market.
Despite the positive growth, challenges have emerged from a tsunami event in late December that impacted several northern Peruvian coastal towns. Damage to scallop beds and port infrastructure, along with an oil spill attributed to Petroperu, poses threats to the export momentum, with assessments of these damages still pending. The situation could hinder scallop harvesting and logistics moving forward.
The production of Peruvian scallops (
Argopecten purpuratus
) has historically fluctuated due to environmental factors. The recent natural disasters and oil spill could exacerbate existing vulnerabilities. Nonetheless, a moderate interest from US buyers persists, particularly among cost-sensitive customers who find Peru’s scallops competitively priced compared to higher-priced Canadian and Japanese offerings.
Peru has shown remarkable growth in US frozen scallop imports, soaring from under $6 million in value in 2023 to over $40 million in 2024, with volumes increasing from approximately 700,000 lbs to nearly 4.8 million lbs. This remarkable progress has made Peru the second-largest scallop supplier to the US by value. Japan continues to lead with reported exports of $158.6 million.
In the context of an increasingly tight US scallop market, buyers are facing a balance between rising costs and uncertain availability. Prices vary across different scallop sizes, and while some discounts have appeared, overall market sentiment remains cautious due to ongoing supply pressures and adverse weather conditions impacting production.
The current US domestic scallop market is characterized by elevated pricing, with notable adjustments according to size. Premium prices have started to cool demand, and the fragility of buyer confidence is evident amidst complex challenges including seasonal slowdowns and fluctuating supply from various sources. Stakeholders are keenly observing policy shifts under the new US administration, which may influence supply logistics and pricing dynamics.
Despite uncertainties, Canada, Japan, and China remain key players in the wholesale scallop market. Canada’s limited stocks have been tightly contracted, creating scarcity in the spot market. Concerns about potential tariffs under the new administration could redirect Canadian supplies. Meanwhile, Japan has emerged as a preferred option for cost-conscious buyers, even as its market experiences price increases.
China remains stable for now; however, an existing 10% US tariff may raise wholesale prices in the future, particularly impacting reprocessed scallops returning to the US market. Overall, careful monitoring of market trends and conditions will be critical as stakeholders navigate these complexities.
The article discusses the dynamics of the US wholesale scallop market, especially focusing on the recent surge in Peruvian scallop exports amidst environmental challenges. It outlines Peru’s role as a crucial supplier due to declining domestic landings and highlights the impact of natural disasters and oil spills on production. The piece elaborates on the competitive landscape among major scallop exporters, including Japan, Canada, and China, while outlining ongoing market sensitivities and price variations.
In summary, while Peru’s scallop export growth to the US has been robust, recent environmental challenges pose significant risks to this momentum. The US market remains tight, and pricing pressures are evident, with competitors like Japan continuing to dominate. Industry stakeholders must stay vigilant as market conditions shift, influenced by both environmental factors and policy changes under new US administration.
Original Source: www.undercurrentnews.com
