As wholesale prices skyrocket for Pacific flying squid amid a record low catch in Japan, processing companies in the "squid town" of Hakodate, Hokkaido, are scrambling to stay afloat.

The squid shortage, caused by fluctuations in ocean temperatures, years of overfishing and lenient regulations, has seen local profits tumble.

Figures released by the city's regional wholesale market show the haul from June to September was the lowest since collection of monthly data began in 2005, and half the amount from the same period last year.