The rise in the price of Moroccan octopus is forcing some competitors, of small and medium size, to exit the market.
“This is because margins are shrinking”, said Undercurrent News. Meanwhile, demand remains strong worldwide, mainly in Europe and Japan where it remains stable, while in the U.S. the popularity of the product does not stop growing.
Last year, octopus prices reached their historic peak and since then they have continued to rise, while supply has become insufficient to meet the growing global demand. The strengthening of the euro against the dollar in the last year, is another contribution to the octopus that comes from Spain is more expensive for American buyers. Although prices continue to rise, demand has not diminished: “It has become so popular,” Frank Ruggiero, vice president of Ruggiero Seafood, squid supplier in New Jersey, according to Undercurrent News.
Such a high price is not affordable for any provider. Some producers stopped buying octopus from Morocco, as prices skyrocketed in recent months. “I’ll leave it,” a source told Undercurrent News last month with the latest price increase, and also pointed out that some of the octopus producers are leaving the market, it is becoming the trend of the recent years.
Some of the exhibitors at the Seafood Expo in Boston showed their ability to market octopus of Moroccan origin – despite the increase in price – which makes them one of the best options on the market. Among them is Discefa, distributor specialized in octopus, known at international fairs in the sector for its stand festive atmosphere, where you can find octopus and wine. Discefa has a subsidiary company in the United States, called Ditusa, which has allowed it to establish its sales network throughout the country, from the East Coast to the West.
The sources also pointed out that, because buyers are looking for the best deals and prices are currently high, confusion has been created in the products offered by some suppliers. There were companies selling old stock, or products with a high percentage of glaze, which allowed them to offer slightly cheaper prices. Actions that have been considered deceptive by other sellers. A U.S. source said that the market will only support a certain price increase before it affects demand. The concern is that, if this happens, the demand could decrease significantly. If the price of Moroccan octopus continues to increase at this rate, U.S. buyers may consider looking for alternative sources.
Source: Under Current News. To see the full original article, click here.