MercoPress. South Atlantic News Agency

Squid season begins in Argentina with high hopes

Twelve Japanese squid vessels began fishing shortfin squid in Argentine waters at the onset of this year's harvest 1 February. Vessel owners are pinning all their hopes on this new season, after the poor catches they obtained beyond the 200 miles in January.

On 15 February, another seven vessels will start fishing activities in Falkland Island waters, three less than in 2003. Later, two more vessels will be incorporated, which are currently operating off New Zealand's coast, where catches reportedly remain meagre outside that country's Exclusive Economic Zone (EEZ).

Last year, fishery in January was bad and until 2 February, Japanese vessels had only extracted 1,050 tonnes, as compared to the 4,750 tonnes of the previous year. However, the results of January 2004 were even worse, since catches were virtually nil.

Squid fishery in the Southwest Atlantic, outside the Argentine EEZ, was not only bad for the Japanese vessels but also for the large fleets from Taiwan and China that are operating in that area since December. The resources' conditions are changing, and there is a greater presence of whales in surrounding waters, which could have caused the movement of schools towards the coastlines. This means that within the 200-mile EEZ the concentration prospects for a good concentration are high.

Last year's total catches obtained by the Japanese fleet operating in the Southwest Atlantic were considerably lower than those of 2002. Catches reached 12,230 tonnes in Argentine waters and 8,800 tonnes in the Falklands catches, whereas, outside the EEZ catches were 3,120 tonnes, reaching a total 24,150 tonnes. This year's results are expected to be better.

Meanwhile Japanese market auction prices for jumbo flying squid plummeted in the production locations. Until last week, the decline in prices was mild, but at the beginning of February, it became more serious.

On 2 February in Hachinohe the price of size 11/15 lowered to JPY 2,350 to 2,590 per box against the JPY 2,800 it had reached the previous week. Size 16/20 went for JPY 2,100 to 2,240 (it had reached JPY 2,500 only a few days earlier) and size 21/25 was at JPY 2,100 to 2,180.

These prices are considerably lower than those registered in January 2003, when size 11/15 reached JPY 4,300 to 4,400 per box and size 16, JPY 4,100 to 4,300. These values drew back in February to JPY 3,700 to 3,800 and JPY 3,600 to 3,700 respectively.

Sources from the sector say the price decline is not only due to the higher volume in catches but also to buyers' lack of capital.

The prices of Peruvian jumbo flying squid also suffered a drop. Vessel owners could not cover the cost, forcing them to evaluate whether, once the year's season is over in the South Atlantic, they will head to the North Pacific rather than Peru. In any case if prices remain low, profit gains will be difficult

Source FIS