KING CRAB August 10 2009 Market Update

Retailers continue to support king crab this summer! As reported last week 10 major retail chains across the US promoted king crab from Jumbo 9 -12, Large 16-20, and other sizes such as 20-24 and 20 up not specified. The price target was $9.99 and $8.99/lb. The retailers and consumers realize that this product has great consumer recognition, tastes great, does not require elaborate preparation and the specie even has its own television show. As the retailers move down in the size of product, one can expect to see ads of $7.99 and $6.99!

We continue to see prices on medium size 20-24 and good size 20 ups move around every week as marketing companies sell off their inventory. Many companies have inventory of those sizes and competition has been intense. However, once the inventory sells into balance, the marketers appear to back off as the reality of replacement cost is becoming clear and the marketing companies want continuity with their steady customers.

Please ask for and check leg size as well as price on 20up red king crab as there is some product out with 35-45 count legs that is being sold as normal 20up red king crab. One can save .10-.25 on the smaller red king crab, but this product can have resistance with the consumer. We have some excellent quality 20 up and 20-24 red king crab with good uniformity, counts and quality at competitive prices!

Even with a relatively flat market, the existing product should move over the next two months at which time either the Russian producers reduce their prices to allow imports, the US market goes up, or we simply run out of Russian Far East king crab.

The month of May presented the largest drop in imports on king crab from Russian in 2009 declining 37.5% or 1/2 million pounds from the same period in 2008. This is 33 fewer truckloads of crab available. We anticipate this trend to continue over the summer.

Canadian opilio has been hot this year and one can see why. The imports in May were up 45% vs 2008 or 14 million pounds. Prices and quality have been good. Limited Russian opilio although larger has been imported due to this reason.

david@consolsfd.com

D.K. Supplies LLC