The global squid industry has faced significant challenges over the past two years, with climate change playing a critical role in disrupting squid populations and trade. The effects of El Niño, fluctuating water temperatures, and changing migration patterns have led to weaker squid supplies in 2023, with consequences that have carried over into 2024.
2023: A Year of Decline
In 2023, squid fishing in key regions such as Argentina and Peru experienced substantial declines. Argentine Illex squid landings were halved compared to the previous year, primarily due to the effects of a moderate El Niño. This climatic event led to a rise in water temperatures by 2-3 degrees Celsius, pushing squid away from traditional fishing grounds and resulting in a significant reduction in catch volumes.
Peru saw a similar trend with its giant squid (Dosidicus gigas) catches, which started strong in January and February but declined as the year progressed. This decline, coupled with poor Illex catches in Argentina, drove up global squid prices, especially in high-demand markets like China.
The Falkland Islands (Malvinas) reported slightly below-average Loligo squid catches during the first season of 2023. The overall international trade of squid and cuttlefish reflected these challenges, with a noticeable decline in trade volumes in the first quarter of the year. While Chinese imports of squid and cuttlefish increased, exports from China to major markets like Japan, Thailand, and Korea saw significant reductions, further highlighting the difficulties faced by the industry.
2024: Continuing Challenges and Trade Pressures
As the world entered 2024, the challenges in the squid industry persisted. According to the General Administration of Customs of China, the trade of cuttlefish and squid products showed a clear downward trend in July 2024. Both import and export volumes declined, reflecting the ongoing difficulties in the global squid market.
In July 2024, China’s imports of cuttlefish and squid products totaled 37,700 tons, with a value of 805 million yuan. This represented a decrease of 7.61% in quantity and 4.3% in value compared to the same period in 2023. The decline was even more pronounced compared to June 2024, with import volumes and values dropping by 12.6% and 18.47%, respectively. The cumulative import volume from January to July 2024 decreased by 25.27% year-on-year, highlighting the continued strain on the industry.
The decline in global squid fishing, driven by the impacts of climate change, has kept market prices high, slowing down the import of squid raw materials into China, the world’s major squid processing country.
On the export front, China’s cuttlefish and squid exports in July 2024 increased by 5.88% in volume but saw an 11.55% decline in value year-on-year, reaching only 1.778 billion yuan. This decrease in export value is attributed to the higher proportion of frozen products in the export mix. Despite this, exports to major markets like Japan, Thailand, and South Korea remained strong, with Japan accounting for 20% of total exports.
Analysis and Outlook
In July 2024, frozen products dominated both the import and export markets, accounting for 94% of imports and 55% of exports by value. The average import price was 21.09 yuan per kilogram, while the average export price for frozen products was 33.56 yuan per kilogram.
As climate change continues to impact marine ecosystems, the global squid industry faces ongoing challenges. The decline in squid supplies, coupled with high market prices, has created a volatile trade environment. Moving forward, the industry must adapt to these changes by implementing sustainable fishing practices and exploring new markets to mitigate the effects of climate change on squid catching and trade.
In conclusion, the combined effects of climate change and fluctuating trade dynamics have reshaped the global squid industry in 2023 and 2024. With continued vigilance and adaptability, the industry can navigate these challenges and work towards a more sustainable future.
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