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U.S. Department Of Agriculture in Russia






U.S. Department of Agriculture




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International Boston Seafood Show, March 11-14, 2007

Export-import operations are among the best for business in our time of global markets. Fish markets are no exception to this rule since geographic remoteness of harvesting and processing locations and locations of the product consumption as well as a number of difficulties related to the national barriers such as customs, transportation, allow to easily count for profit once those problems have been resolved.

Although there is a lot of quite ordinary obstacles awaiting an entrepreneur along the way: the language barrier, search for trustworthy partners, understanding of the foreign market… all those concerns are not that difficult for the fish professionals, however they also require lots of time and resources.

Participation or attendance at the trade shows is a traditional way to collect necessary information and establish contacts with foreign partners as quickly as possible. Also, there are public and private organizations, which objective is to develop international trade. Food Export USA – Northeast is one of such organizations. It’s a non-profit organization that combines State agricultural promotion agencies of the 10 northeast states. These agencies are promoting and looking for new markets for agricultural products from the US Northeast using resources of the federal, state and industrial sectors.

Territory-wise, the organization includes Connecticut, Delaware, Massachusetts, Main, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. This territory is often called “New England”, it also includes New York, Philadelphia and Boston. Northeast is known for its remarkable abundance of food, certainly including seafood. There are also a lot of plants here that manufacture processed foods: kosher products, other ethnic foods, products for restaurant business, and many others.

Food Export USA – Northeast operates several programs for development of exports of the US commodities, and I was fortunate to take part in one of them – Northeast USA Fish & Shellfish Buyers Mission. The idea of this undertaking is to bring together sellers and buyers of fish products in one location providing them with a good opportunity to talk face to face. Also, reporters from France, Belgium and Spain took part in the meetings together with me. The timing of the meeting was chosen quite perfect – a day before the International Boston Seafood Show, so the talks could have been continued in the booths of the companies most of which attended the show.

Little later we’ll learn about the most interesting companies, and now let’s have a look at the fish export statistics from the USA and the Northeast of the country to have a better idea of what it is they offer to buy in America.

In 2006 exports of fish and seafood reached about $4 billion, and increased by 3,5 % as compared with 2005. Japan with $937 million remained the largest market (share reduced by 13,3%), the EU countries imported the US products worth of $1 billion (12,6% growth), the largest growth was 25% exports to China -- $445,2 million, exports to Canada and Korea actually did not change – $695,4 million and $406 million respectively.

The 2006 largest sales increase was in the following products (in absolute values): cod (growth by $39,5 ml), scallops ($31 ml), lobsters ($30 ml), mackerel ($30 ml), flounder ($27 ml), whiting and hake ($26 ml), and crab ($20 ml).

Certainly, Russian customers can’t be surprised at cod, mackerel and other fish that has been at the Russian table for a long time now, but it’s mostly guests of the fancy Moscow restaurants who would be familiar with lobster and scallops. Though I can tell you from my personal experience that Boston restaurants serve those products as specialty of the local cuisine. And it’s not surprising as one of the main harvest grounds for that seafood is right along the US northeast coast of the Atlantic Ocean.

The northeast of the country mainly exports American lobster, Atlantic sea scallops, Atlantic mackerel, Atlantic herring, Monkfish, and Squid. But lobster is the absolute leader, since last year its export share in money value equaled 44%, the squid share was smaller – 18,4%, but trade growth dynamics of this product is impressive 24% as compared with 2005, it’s $159,2 ml in absolute figures.

It is interesting that according to the Russian Statistics Agency, the United States of America was the number one supplier of live, frozen and chilled scallops to Russia (Customs Tax Code 030721) from January to September of 2006 that totaled $113,000. It is 114% higher as compared with the same period in 2005.

The region’s key market for fish and seafood is the European Union, particularly France, Spain and Italy. These three countries make about 70% of American lobster consumption outside the USA.

As evident from the statistics provided, the main consumers of lobster and scallop are markets with developed restaurant culture, and here, as I believe, there are large opportunities for supplies of those products to start growing to our country, where on the one hand restaurant business is being developed, and on the other hand we’ve got new companies established that render professional services to the restaurant business taking care of logistics and other issues. One shouldn’t forget an obvious income growth of the Russian population that allows them to buy more expensive foods.

This simple thought was confirmed by representatives of several American companies that are already supplying those products to the Russian market, some doing one-time transactions and some working on permanent basis.

Well, who is prepared to supply all those riches over here?You’re welcome to meet!

Eastern Fisheries, Inc. is the largest harvester and processor of scallops in the world. It owns 21 vessels to harvest scallops and has 3 piers in New Bedford and about 110,000 square feet of processing facilities. According to George Tarabaih, International Sales Manager, the company is ready to ship products consistent with national requirements of the importing country.

Today, the company exports about 40% of its products mainly to the united Europe (the largest sales are done in France), and China. They mainly ship frozen scallops, but they can also import them fresh. Several options of packages are offered to the market starting from retail package with private label to large boxes for wholesalers and processors.

The enterprise prefers to work with partners capable of buying large volumes. Eastern Fisheries is a fast developing company both in size of its fleet and in scallop grounds. Today, the key for the company is to ensure permanent supply of products, as far as practicable, regardless of the scallop harvest season, which requires development of remote territories.

Address: 14 Hervey TichonAvenue,
New Belford, MA 02740
Tel.: +1 508 993 5300, Fax: + 1 508 991 2226
Email: george@easternfisheries.com
Web site: www.easternfisheries.com

East Coast Seafood, Inc. The company was established in 1981, it specializes in supplies of live, fresh and frozen North American lobster. It has representative offices in 6 countries including France, Spain, Italy and Great Britain. The company does not harvest lobsters, but buys directly from fishermen including at the auction sales (see further), which allows for strict control over the lobster quality.

Today, the company’s main efforts are targeted at getting over the seasonality in lobster harvesting. A big help here is that live lobsters are stored in special artificial tanks (“tubings”) and natural reservoirs with controlled environment (“pounding”), since the company owns the world largest (5 acres) lobster farm located in the pristine area of Canada.

The company expects that the demand for its products will grow in China and Russia. As the company’s international sales manager Patricia M. Hanford assured us, they already had a positive experience working with Russian customers. For example, they are very pleased with their partnership with the Water World company.

Address: PO Box 790, 175
Alley Street, Lynn, MA 01903
Tel.: +1 781 593 1737, Fax: +1 781 593 9583
Email: phanford@myseafood.com
Web site: www.eastcoastseafood.com

Northern Wind Inc. was established in 1987 and is the second largest “scallop” company in the USA. The company is not a scallop harvester, but it works on continuing basis with owners of over 50 scallop-harvesting vessels, another 40 vessels may be hired in addition. The New Bedford processing plant that’s being used to offload and process scallops is equipped with the automated temperature maintaining scallop processor (there are only 2 of those in the country) that gives out an individually processed and frozen scallop at the end. The majority of other companies are still processing scallops by hands.Depending on the degree of processing and the final point of destination, a special package and a number of brands were developed to help easily identify the company’s product among others. In addition to scallops, Northern Wind supplies lobsters, mussels and fish fillet.

The company representative Paul J. Rego demonstrated and commented on practically entire scallop and lobster manufacturing process, which by the way abounds in “subtleties”. For example, to ensure maximum safety during transportation lobsters are placed in containers only in the upright position in the special guide cells that are later removed.Over 60% of products are exported to other countries, mainly to France and Great Britain. At the same time, scallops are imported for further processing from China, Mexico, Japan and Philippines. Such variety of sources of raw materials allows for the company to maintain acceptable price levels all year round.

Address: 16 Hassey Street,
New Bedford, MA 02740
Tel.: +1 508 997 0727, Fax: +1 508 990 8792
Email: rick@northernwind.com
Web site: www.northernwind.com
Seafreeze Ltd.The fishing company was established in 1985. It owns 2 refrigerator trawlers. The company is a harvester and marketer of fresh frozen Atlantic mackerel, Atlantic herring, squid (Illex illecebrosus squid and Loligo pealei squid) and Atlantic butterfish. Every vessel can freeze up to 45 MT of seafood daily with 290 MT of storage capacity. Ground cold stores allow the company to store up to 12,000 MT of frozen products.The company is based in Port Davisville (Rhode Island), a 3 hour drive from New York and 1 hour drive from Boston. Availability of large low temperature storage capacity and convenient access roads also allow to handle and store frozen products.

Address: 100 Davisville Pier,
North Kingstown, Rhode Island, 02852
Tel.: +1 401 295 2585, Fax: +1 401 295 5825
Email: ken@seafreezeltd.com
Web site: www.seafreezeltd.com
Norpel or Northern Pelagic Group, LLCThis is another company oriented at fishing for local pelagic fish – Atlantic mackerel and herring. It owns 3 fishing boats.A high capacity coast facility allows to offload, size and store up to 700 MT of products daily, and 40 vertical plate freezing units allow to process up to 2,400 MT of fresh fish per day. Total fresh-frozen fish storage capacity exceeds 10,000 MT.

Regardless of the fact that by local standards it’s a young company – it was established in 2002 – it has already proven to be a reliable partner that supplies high quality products.

Address: 4 Fish Island,
New Bedford, MA 02740
Tel.: +1 508 979 1171, Fax: +1 508 979 5601
Email: pelagics@norpel.com
Web site: www.norpel.com
Sea-Trek Enterprises, Inc. is a trading company, a supplier of scallops and Snow crab, also works with lobster, squid, shrimp, cod, haddock, and flounder. The products are shipped under the home brand “Sea-Trek Gold” as well as under the private labels of their partners. Today, about 10% of commodities are exported, but as the company’s representative Pieter Snoeren assured us, they actively promote their commodities to foreign markets. Thus, the company attended the World Food Show in Moscow, Russia, and hopes to find reliable partners in Russia for long-term cooperation. The company has a large experience working with restaurants.

Address: 45 Water Street,
East Greenwich, RI 02818
Tel.: +1 401 884 3814, Fax: +1 401 884 5443
Email: info@seatrekenterprises.com
Web site: www.seatrekenterprises.com

Lund’s FisheriesThe company established in 1954 is a leading fish manufacturer on the US East Coast. It owns a fishing fleet of 25 vessels and one of the largest fish processing plants. The plant located near the piers allows to offload at least 15 vessels per day, and freezing and packaging capacity makes it possible to process over 500 MT of fish products daily.Lund’s Fisheries specializes in supplies of Atlantic mackerel, Atlantic herring, squid (Boston Loligo Squid, California squid and Illex Squid), Atlantic croaker, Monkfish and other fish and seafood.

Address: PO Box 830, 997 Ocean Drive,
Cape May, NJ 08204
Tel.: +1 609 884 7600, Fax: +1 609 884 0664
Email: wreichle@lundsfish.com
Web site: www.lundsfish.com

Claw Island FoodsThe company offers lobster products of various cooking levels destined for wholesale and retail trade. It includes a revolutionary product – a fully cooked lobster, enough to be defrosted and warmed up. Lobster is individually packed into an original box and destined for retail trade.

Address: 110 Dartmouth Street,
South Portland, Maine 04 106
Tel.: +1 207 799 9290, Fax: +1 207 799 7179
Email: emilyclawisland@verizon.net
Web site: www.clawislandfoods.com

Alaska Seafood Marketing Institute (ASMI)This organization was established by the State legislature to promote seafood from Alaska to the US and international markets, and to introduce and maintain quality programs for Alaska fish industry.Quality programs include educational materials for producers, processors, customers and retailers helping them to maintain high quality standards for the “Alaska Seafood” brand commodities along the whole length of the seafood voyage from harvesters to final customers.

For detailed information on educational programs and companies from Alaska, you may go to the organization web site: www.alaskaseafood.org.

International Boston Seafood ShowBut let’s go back to our visit. The program of 2007 Northeast USA Seafood Buyers Mission actually included three events: the Seafood Buyers Mission, the International Seafood Show 2007 and a trip to the port of New Bedford.

Now I would like to say a few words just about the International Boston Seafood Show. First of all, the magnitude and the number of countries attending the show were striking. In addition to the companies and organizations from the USA there were a lot of companies from Canada, China, Vietnam, Taiwan, Indonesia, and so on. There were even representatives from such exotic for us countries like Nigeria, Panama, Peru and Papua New Guinea. Frankly speaking, it was quite a pity not to see the Russian exhibitors. However, there was a company with somewhat Russian roots – Lotus Seafood, Inc. Our old friends Nikolai Ovchinnikov and Oleg Titov were working at their booth. By the way, according to them, during the show they made over 60 potential contacts interested in cooperation.

The Russian delegation included Nikolai Ovchinnikov and Oleg Titov (Prodko Company, Moscow), Aleksandr Levkovich and Yuliya Levkovich (Okeanprodukt, St-Petersburg), Gennady Kuriyakov, Natalya Solomatina (Morskoy Zamok, Moscow) and myself, Yan Gerasimuk (Fish and Seafood Magazine). The Foreign Agricultural Service of the US Embassy in Russia, Moscow, supported the team.And although one could hear some Russian speech at the show, for example there were representatives of our science from Murmansk (PINRO), still I would like to wish our fish producers to visit such events more often, as you can really see a lot. And despite the fact that the food industry usually is not associated with the innovation sphere, there is a continuous development of new technologies, “fashion” for foods, new marketing tricks to attract customers.

And certainly, there is a reason why the title includes the word SHOW: the majority of the stands were individual, made with taste and clear intent to draw attention. There were lots of tempting offers to try products right at the booth, all that together created indelible impressions.

Perhaps, your first thought was that there were lots of gadabouts at the show, which we didn’t have. The show was very well organized, which was also true about the informational access (catalogues and daily newspapers were free for the visitors) and preparation of the show exhibitors. If it was a booth shared by a group of entrepreneurs from the same country, there were catalogues offered describing the group, and so on.

Many things were done simply just to raise the spirits, especially the artistic presentation of materials at the booths, or here, look – motorcycles custom-made into sharks! Would you like to attend the show?! Then I consider my assignment completed. Believe me, you can bring back lots of interesting things and ideas from the show. The format and size of my article does not allow me to offer whatever details of this really grand event in the fish industry. For example, I didn’t say a word about an extensive business agenda of the show, a contest of new products (2007 New Product Showcase)…A few preliminary figures: 850 companies from 87 countries attended the show taking 15,700 square meters of space. The show received over 15,000 visitors. You can get the full list of participants at the show web site www.bostonseafood.com (Exhibitor List).

New BedfordOn the last day of our trip we went to New Bedford (Massachusetts) famous namely for its’ “fishing” history but to this very day remaining one of the largest fish ports of the United States of America. Moreover, for the last five years New Bedford fish port has been number one in the USA in money value of fish products it handles. Over 300 vessels are assigned to the port, another 100 use the port as a temporary base. In New Bedford we visited operations at Northern Wind, Inc., Pier Fish Company, Northern Pelagic Group, LLC and Eastern Fisheries. Our tour started with a very interesting place – Whaling City Seafood Display Auction. The heart of the auction is the centralized computer system BASE (Buyers and Sellers Exchange). It allows for sellers and buyers to agree on sales of commodities at the highest price out of different locations. Such system helps to save time and minimize costs borne by the sides for buy-sell transactions.Using BASE is advantageous both for the seller and the buyer because the seller can sell the raw material practically right “off board” and at the best price offered, and the buyer can choose the product from a number of sources and buy exactly the volume he needs since batches are offered in different volumes and it is easier to check on the quality of seafood he’s buying. The auction owner Richard Canastra acquainted us with the real scallop sales on his computer monitor.Our trip came to the end in the New Bedford Whaling Museum where the city’s glorious past inherently connected in the past with the whaling business has been now gathered with great care. As for the future, the City Mayor Scott W. Lang portrayed it in bright colors.Along with the fish industry, the city has the processing industry, and tourism and healthcare industry are becoming more and more important. Population is about 90,000. So, if you ever get to the city that was founded in 1640 and received its second name The Whaling City in its time, there is a lot to see there.

Fish Eye On our flight to America, the airline offered the “Fish Eye” wine as a drink with a supporting yarn on the label. They say that when a fisherman came home from an exceptionally lucky fishing trip he “found the fish eye”, i.e. a special feel for fishing grounds, “the sixth sense”. So, it seems to me that the exhibitors and visitors of the recent fish events found their own “fish eye”, at least the appropriate conditions for that matter were created…

In conclusion, I would like to express gratitude to the trip facilitators – Coordinator for Seafood Programs Food Export USA – Northeast Colleen Coyne, and representatives of the Department of Agriculture, Foreign Agricultural Service of the US Embassy in Russia (www.usda.ru), who made our trip interesting and unforgettable.

If you are interested in any information on the US agricultural shows, fish companies, go to:

Agricultural Trade Office
US Embassy, Moscow
Tel.: +7 (495) 728-55-60, Fax: +7 (495) 728-50-69
Email: ATOMoscow@usda.gov,
Web site: www.usda.ru

Food Export USA – Northeast
150 S. Independence Mall West,
1036Public Ledger Building,
Philadelphia, PA 19106
Tel.: +1 401 491 9017, Fax: +1 401 491 4104
Email: ccoyne@foodexportusa.org
Web site: www.foodexportusa.org
Yan Gerasimuk
Boston – Moscow

Fish and Seafood # 4 (36) 2006

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