The US trade data released last week show the US imported $2.1 billion of seafood products in March, a healthy 12% boost in imports in nominal terms (m/m). However, import volumes and values in the first quarter of 2023 are significantly weaker than last year, down 18% in value terms and 10% by volume.
Driving the weakness were sharp drops in imported shrimp and crab, the latter of which Canada is a major supplier to the US market. Meanwhile, US demand for Atlantic salmon remains extremely robust, and strong growth in the fresh fillet and frozen fillet segments (7.3% and 25.9% respectively) more than offsetting weakness in whole fish (-2.6%).
In 2022, Canada was the largest exporter of seafood to the US ($US 4.1 billion) followed by Chile ($US 3.4 billion) and India ($US 3.0 billion). In the first three months of 2023, Canada’s seafood sales to the US have fallen 6.9% pushing Canada into second place, behind Chile which has seen its share of the US seafood market jump 7.7%. The other notable gainers are Norway which has grown 17% in the first three months of the year. Both Chile and Norway are gaining US market share in the lucrative Atlantic salmon segment. Strong sales of Atlantic salmon into the US market is what is supporting growth in Chile and Norwegian export performance.
Looking at Canada trade performance, overall seafood sales to the US dropped 6.9% in Q1. Of the top Canadian seafood products exported to the US, three are farm-raised: Atlantic salmon fillets, Atlantic salmon whole fish and oysters. All three of these segments posted declines in the first quarter of the year with very sharp drops in Atlantic salmon (whole fish), down 40% over last year and fillets down 50%. These sharp drops in sales are due to the closure of farms in BC’s Discovery Islands, with production declines now taking effect.
