Le Dragon Dorts
The Market “More is Worse” Kingsley Amis
The opening of this year’s glass eel season proves again that the only certainty is that each season is different.
The lack of confidence of the eel market in China continues to be a dominant feature this year. The issue of malachite green and the lack of controls over veterinary medicines continue to haunt the eel industry in China. The price of qualified eels (those that are likely to pass the veterinary controls) ex farm are still achieving a level of 50 rmb per kilo for A. anguilla and 80 rmb per kilo for A. Japonica. The sting in the tail is that any exporting Kabiyaki factory that has a consignment of eels that fail the export tests faces a penalty of being closed for a year. Even with a number of small subsidiary producers taking the export risk it is not surprising that there is still little or no interest from China in glass eels. The total sales so far this year are just two or three distressed shipments from the Loire. The C&F price of the last sale I would guess being nearer to 400 than 450 euros.. The lack of interest is not just confined to A.anguilla. There is little demand for A. japoica. The first sales being made in Japan. Prices have now fallen to 4.5 rmb per piece and continue to fall. Last year prices were for a short time as high as 15 rmb per piece. The catches of A.. japonica are no different this year from last year so the issue is to do with demand and not supply.
There is still no indication when China will come into the market but I would estimate certainly not before the New Year.
In the light of the lack of demand from China I am surprised that market prices started at the 700 Euro level this year. I am even more surprised that the market in the Netherlands has been able to support these high prices for so long. Certainly over the last week prices have tended to slip, as there is a realisation and greater understanding of what is happening in the market.
A significant quantity of glass eels has been shipped to Holland which has now satiated demand. There is perhaps 15 tonnes demand left in the whole of the European aquaculture market for the rest of the season. As we approach the main fishing period with a possibility of a further 100 tonnes of production of glass eels I cannot see that the current price can be supported without demand from China
