Global cold water prawn supply at all-time low, leading supplier warns
Randall Jennings, managing director at Royal Greenland, said the “unique situation” was down to a number of factors.
Jennings explained that the company was doing all it can to fulfil current orders and to prevent a situation like this occurring again.
In the meantime, he advised chefs and caterers to factor in price increases on any prawn dishes featured on their menus.
He said: “This is an industry-wide problem affecting all suppliers. Over the past three years, the Canadian and Greenlandic quota for cold water prawns has declined by 95,000 tonnes, equal to 33% of the total annual catch.
“At the same time, the global demand for cooked and peeled cold water prawns has gone up due to low supply and high prices of warm water prawns – where farmed king and tiger varieties have been plagued with early mortality syndrome (EMS).”
Jennings added: “The extremely cold and longer winter in Canada and Greenland also meant that thick ice prevented trawlers getting out to catch the prawns in early April, reducing the weight of raw material that could be caught.
“Consequently, all stocks in the market are very low and prices are increasing rapidly. Over the past six weeks, raw material prices increased by more than 40% and it looks as if they will continue to rise.”
Seven dishes
The Fleece Inn, in Barkisland, West Yorkshire, uses cold water prawns from Royal Greenland in seven of its menu dishes.
Manager Lee Roberts said: “I am aware of the problem as I’m a fish merchant and as well as a pub manager.
“We fully expect the price will go up. Of course, it depends on how far it goes, but we hope to be able to absorb the cost.
Roberts added: “A prawn shortage isn’t going to catastrophically affect small operators such as ourselves. But a pubco with 1,000 sites might need to worry.”
Royal Greenland has warned that it is unable to accept any additional orders or guarantee prices, and that it was looking into agreeing specification changes with individual customers – including smaller prawns – to fulfil volume requirements.
It is expected that cold water prawns will reach a ceiling price before Christmas.
