CROW's Nest is the first monthly in-depth report on the status of the "Tuna Industry." For a copy of the publication, please send your name and address to: Casamar Group, Inc., and advise them that you would like to get a hard copy of the report.

Prices of Raw Tuna Stabilize

Tuna prices stabilized in July. In Bangkok, the price actually increased slightly. The price of skipjack (4-7.5lbs) Bangkok dropped to as low as US$550 per metric ton.

There are reports that canners are now paying between US$570 to US$620 per metric ton. The price in Samoa for skipjack has not gone lower than US$500 per short ton, but the skipjack price in Ecuador is down to the current price of about US$450 per short ton.

Tuna prices in Mexico are at a record low. The price currently being paid for large yellowfin is US$675 US$700 per metric ton, and for skipjack about US$400 - US$450 per metric ton.

Fishing in the Western Pacific continues to be good with most boats still making 30day trips. The UTC boats are currently on their voluntary 45day tieups, after previously completing, 30day tieups (see Crow's Nest July 1999 issue).

The StarKist and Bumble Bee plants in Ecuador were paralyzed for two weeks in July by a National transportation strike. Ecuador, which is in its worst economic crisis in decades, raised fuel prices at the beginning of July to make up for losses after the Sucre currency depreciated 15 percent against the dollar in June. The increases touched off nearly two weeks of strikes and protest by transport, oil, and banana workers and Indian groups. The President gave in to strikers' demands by rescinding a 13 percent, gasoline price increase and agreeing to freeze gasoline prices until June 2000.

The InterAmerican Tropical Tuna Commission (IATTC) met in La Jolla, California, on July 2123, 1999. One of the resolutions adopted was the Resolution on Fish Aggregating Devices, which had previously been agreed to at the Guayaquil (Ecuador) meeting in June. This resolution calls for all countries that fish in the Eastern Pacific to prohibit transshipment of tuna at sea, and to prohibit the use of tender vessels, which are used to deploy, repair, pickup, or maintain FADs at sea. The resolution also recommends that a scientific working group be established to carry out research with the IATTC staff. The other resolution adopted was the limiting of the bigeye tuna catch in the Eastern Pacific to 40,000 metric tons in 1999. This limit is to be implemented by prohibiting sets on all types of floating objects when the limit on the bigeye tuna catch is reached. It appears that this quota may be reached by November 1999. It was also agreed to establish a scientific working group to carry out more bigeye tuna research with the IATTC staff. The purpose of the research is to review the status of the bigeye tuna stock. and to consider further reductions of the small bigeye tuna catches. It appears that the ETP Yellowfin tuna quota will be reached by early November this year. The quota was previously set at 210,000 MT, plus 3 increments of 15,000 MT each for a grand total of 255,000 MT. According, to IATTC reports, total 1999 tuna catches through July 19 are ahead of last year by 144,422 tons.

The National Marine Fisheries Service expects to adopt the final fishing regulations for fishing on dolphins in October 1999. The draft regulations were published in the Federal Register on June 14, 1999 and are currently being reviewed for comments from the public. Once the final fishing and tuna tracking regulations are published (October), the process for lifting the tuna embargoes can begin.

Edgar J. Johnson, the president and chief operating officer of StarKist Seafood, quit at the end of July to pursue a music career as a rock drummer. Analysts said StarKist earnings for the fiscal first quarter may fall short of what Heinz had expected. The analysts couldn't say if that was the reason for Johnson's resignation. (See related news, below). Others believe his resignation is related to the financial scandal recently uncovered at Star-Kist's Ecuador facilities which is still under investigation.

Longline albacore tuna prices weakened in July. The June longline albacore price for Samoa was $2350 per short ton, but for July, August, and September the price has been agreed at $2160 per short ton. The longline albacore price for Puerto Rico has come down to about $2300 per short ton, from $2650 per short ton in June. The jig boat albacore prices for August are the same as in July: $1600 per short ton, exvessel for North West Coast (USA), and $800 per short ton for the South West Coast (USA). The jig boat price in Samoa for direct deliveries remain at $1950 per short ton.

Fishery officials from 12 members of the AsiaPacific Economic Cooperation (APEC) forum concluded three days of talks in Mid July, adopting a recommendation to cut the number of pelagic longline tuna fishing, boats as a step to preserve tuna resources. APEC's Fisheries Working Group also recommended elimination of tuna fishing, by longline tuna boats registered in countries that have not agreed to abide by international rules on tuna fishing. Taiwan declared that it will reduce the number of pelagic longline tuna fishing boats, but it did not specify the number of fishing vessels to be retired. Taiwan currently has some 600 pelagic longline tuna fishing vessels. Japan proposed a prompt cut of around 20% in the number of pelagic longline tuna fishing boats operated by APEC members. By the end of March, Japan has retired 132 of 650 pelagic longline tuna fishing vessels. But as South Korea showed reluctance to accept the proposal, a specific target for reduction was not included in the recommendations. The recommendations, which also call for action against illegal fishing operations, will be further discussed at the APEC forum.

Past Issues of the Crow's Nest

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