February 1999

U.S. Tuna-Marketing Cooperative Moves Forward

It is now fairly clear that the light meat market in Samoa, Bangkok, and the Philippines has bottomed out. There are continuing improvements in skipjack prices being negotiated by Thai canneries. It is estimated that by early January, negotiated prices have reached the US$740/mt to US$750/mt range. Sellers are reported to be pushing for further increases to levels around US$800/mt. This increase has partly been caused by reduced catches by Taiwanese and Korean seiners who represent the bulk of supply to Thailand canneries. The big question is whether this is a temporary decline in catches, or if there has been a more basic shift in catch rates. This increase in prices may also continue to be supported by an upcoming seasonal pattern of increasing production rates to meet seasonal increases in consumption. It will also be interesting to see how good US Lenten sales of canned tuna are. They are positioned to be good with large stocks of low priced canned goods that are available for sale. Yellowfin percentages in the catch mix declined in December. Finally, the large number of US seiners continuing to sit in port waiting to unload and undergoing dry-docking is further reducing the overall supply. This may not be felt to the greatest degree for several weeks as there is still a lot of fish sitting in Samoa waiting to unload.

The new US-tuna marketing cooperative continues to move forward. This group called UTC (United Tuna Cooperative) has started moving loads of fish to other markets. At least a few of the US seiners are expected to travel to the Philippines to unload at canneries there thus avoiding long unloading delays in Samoa. This may also help reduce the oversupply in Samoa and to move that market towards a more balanced supply/demand relationship.

Prices being offered by Bangkok packers for chunk light skipjack destined for the US market may have gone up about US$ 1.00 to US$1.50 per case as a reflection of higher fish costs anticipated by Bangkok canneries. Some estimate that this product is now being offered at price levels around US$16.50 to US$17.25 per case FOB Bangkok. There will not likely be much product bought for now because of the tremendously high amount of canned tuna being imported into the US during the first weeks of 1999.

Importers were positioned to bring in such high quantities because of the overall strong supply and low prices which enticed buyers to "take a position" on this cheap product. The following table shows how remarkable the early closure of the US single duty market was.

Year Closure Date Quantity (Kilos):

1983 August 9
1984 July I8
1985 May 7
1986 March 25
1987 April 2
1988 March 21
1989 January 25
1990 February 9
1991 January 18
1992 January 2
1993 March 17
1994 January 25
1995 March 3
1996 March 25
1997 March 10
1998 February 20
1999 January 6

41,699,159
40,686,830
44,223,404
36,782,802
41,521,337
38,639,426
34,806,376
39,534,360
34,061,699
33,441,010
32,967,568
33,245,716
33,278,830
36,300,379
35,662,163
30,535,027
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Just a Follow- Up ... On Tuna Industry News

BC Packers

There is still some uncertainty as to what role Bumble Bee will play in the takeover of the factories in the Philippines and in Ecuador that were under the control of BC Packers.

Albacore Market

Very little has happened in the Albacore market. As of early January, no prices have yet been agreed in Samoa for longliner deliveries being made in January. There is concern that there may be further declines in these prices.

In Europe

European yellowfin prices are reported to remain weak. Continuing unsold inventories of canned and frozen product may be causing this situation. It could be at least a month until much market improvements will be seen for this product.

Big Eye Market in Japan

Japan operated hundreds of prefectural longline training vessels that conduct experimental, or test fisheries throughout the world while training young men to be professional fishermen. Several of these training vessels operate in the waters north of the Hawaii EEZ where medium-sized, fatty bigeye tuna are common. These fish have become increasingly popular with the current generation of Japanese consumers who are looking for good quality sashimi in small quantities at a reasonable price.

Bluefin Tuna

Appoximately 200 tons of farmed northern bluefin tuna (Thunnus thynnus thynnus) from Spain were landed in Japan during December 1998. It is anticipated that 1,500 tons of farmed, shore side frozen bluefin imports are expected in Japan this year. The farming, or pen rearing of bluefin tuna is being attempted in a number of counties and is expanding worldwide.

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