Surge in Japanese Scallop Exports to the United States

In a recent GSMC conference held in Massachusetts, Jamie Dwyer, the Chief Commercial Officer of Northern Wind, urged attendees not to be misled by the decline in Japanese scallop imports to the United States in 2023. Dwyer highlighted that the data used by the shellfish industry group only accounted for imports until October, failing to reflect the significant surge in Pacific scallop production from Japan's Hokkaido region in the final two months of the year. As a result, the total import volume for 2023 is expected to exceed the previous year's figures.

During the GSMC conference last week, Jamie Dwyer, the Chief Commercial Officer of Northern Wind in New Bedford, Massachusetts, advised conference participants not to be swayed by the decrease in Japanese scallop imports to the United States in 2023, as depicted in the charts.

Dwyer pointed out that the data used by the shellfish industry group only covered imports until October and did not capture the significant increase in Pacific scallop (Patinopecten yessoensis) production from Japan's Hokkaido region in the last two months of the year. He stated, "We saw substantial growth in October with approximately 5.9 million pounds imported. While the final data for November and December is yet to be determined, the monthly average is estimated to be around 4.5 million pounds. So, if we add another 4.5 million pounds, our total import volume will reach approximately 109%."

According to previous reports by UCN, Japanese scallop imports showed robust performance at the beginning of 2023, despite an increase in domestic scallop production. One of the driving factors behind this trend was China's decision to block seafood imports from Japan due to concerns over water emissions from the Fukushima nuclear reactor. China used to be Japan's largest market, accounting for one-third of scallop sales.

Furthermore, the new fishing rules included in "Framework Adjustment 36" are expected to lead to a decline in domestic Atlantic scallop (Placopecten magellanicus) production in 2023, creating an opportunity for increased imports of Japanese scallops.

The latest data reveals that in October 2023, the United States imported a total of 2,549 metric tons of scallops, valued at $46.5 million, representing an increase of 109% and 122%, respectively, compared to October 2022 imports of 1,221 metric tons valued at $20.9 million. Among the source countries, Japan emerged as the leading exporter to the United States in that month, with exports of 1,037 metric tons valued at $20.3 million, marking a year-on-year volume increase of 406% and a value increase of 359%.

Peter Handy, CEO and President of Bristol Seafood, and Irene Ketelaar-Moon, Vice President of Sales and Marketing, had previously predicted an upward trend in Japanese scallop imports, with Handy stating that he expected even higher numbers for November and December.

Handy expressed confidence in the continued growth of imports, although he remained cautious about recent developments. He stated, "It's challenging to predict future trends accurately, but looking at the data from October, I believe import volumes are increasing, which aligns with our expectations. With the decline in domestic production in the United States, a stronger dollar compared to the same period last year, and an increase in the demand for scallops in the United States, we expect to see growth in import volumes."

During the conference, Dwyer mentioned that while the size of Japanese scallops is comparable to domestically produced Atlantic scallops, their price is several dollars lower. However, he added that due to exchange rates and higher interest rates, he anticipates further narrowing of this price gap. He stated, "Therefore, narrowing this gap is a positive development, but in the United States, Japanese scallops are still considered to provide excellent value."

The recent surge in Japanese scallop exports to the United States indicates a positive trend in the market. Despite a temporary decline in imports in 2023, the significant increase in Pacific scallop production and favorable market conditions are expected to drive continued growth in the import volume of Japanese scallops. With their competitive pricing and perceived value, Japanese scallops remain an attractive choice for consumers in the United States.