According to the latest information from Urner Barry, the crab meat market has remained stable and firm in July, with prices increasing, particularly for the larger grades such as colossal, jumbo lump, and super lump. These grades experienced price hikes during the first week of July.
Comparing the current price quotations for jumbo lump to the 5-year average, the market is currently 9.4 percent higher. However, compared to last year, the market for blue jumbo lump meat has seen a 6.5 percent decrease.
Market participants are closely monitoring the price trends, which resemble those observed in 2021. Given the current supply situation, the market may not stabilize just yet.
The impact of COVID has significantly affected this situation, causing logistical and shipping challenges from Asia to the U.S., resulting in longer lead times. In 2022, declining prices persisted throughout the year, hampering importers’ ability to replenish their inventories. However, in 2023, inventories improved, and certain grades became scarce, leading to increased demand. Consequently, the market experienced rapid price increases over the past four months.
Imports have begun to rise this month, surpassing the three-year average for the first time in 10 months. Indonesia and Venezuela are at the forefront of this increase, with month-over-month growth rates of 16 percent and 42 percent, respectively.
On a year-to-date basis, the crab meat market continues to decline, down 34 percent overall. Indonesia, which holds a 46.6 percent market share, has witnessed a 30 percent decrease in crab meat imports this year. Other major producing regions, such as Venezuela, the Philippines, and Vietnam, have also experienced negative year-to-date numbers, with declines of 24 percent, 60 percent, and 36.5 percent, respectively.
Currently, we are in the peak demand period for the Mid-Atlantic region, with summer in full swing and vacationers flocking to beaches and resort areas. However, caution remains among market participants, and reports indicate that crab meat is being taken off menus in non-beach areas. The market will be closely monitored as we enter the second half of summer.
