Tuna Price Takes a Tumble

With Skipjack prices less than US$560 a ton,
tuna boats may not be going out fishing.

Purse seiner fleets operating in the Western Pacific Ocean experienced good catches. The Asian fleets also did very well with yellowfin. Fortunately, this reduced the supply of skipjack to some degree. During this time period, the demand by canned tuna buyers was relatively weak as virtually ail buyers of canned product for the US market had already placed their orders for product to arrive in the single duty time period. This situation kept skipjack prices weak for the month. The following chart will give you an idea of the current and historical skipjack prices.

It is possible that this market has hit bottom for the current cycle. One factor helping the skipjack price situation is the relatively weak catches in the Indian Ocean for the French and Spanish fleets. While there are frequently large catches of skipjack in the Indian Ocean, this was not the case in 1998. Another significant situation could be the fact that so many US vessels are in port. About 23 -US large seiners are in port in Samoa or New Zealand. The vessels in Samoa (as many as 15 vessels) are mostly waiting for an unloading spot at the canneries and the vessels in New Zealand are drydocking. There have been some rumblings among US boats owners that they may not go fishing again until they see an improvement in fish prices. Samoa skipjack prices being paid to seiners delivering to the canneries there are said to be between S540 and $560 per short ton. It has also some been reported that some of the StarKist related purse seiners operating out of Samoa have retained Bob Hetzler, retired Vice President of Purchasing at StarKist, to handle price negotiations for the boats. It will be interesting to see if cooperation among the fishing vessels will result in sufficient pressure on Samoa canneries to raise prices. It is questionable that they will be successful, as it seems the canneries are very comfortable with their supply of fish. It 'has even been rumored that StarKist has purchased up to 500,000 cases of canned tuna from Thai Union.

The US market is positioned to be well supplied with cheap product for the upcoming Lenten-selling season. Features of chunk light tuna being sold at 2 cans for $ 1.00 will likely be common through April. Hopefully, this will move some Of the excess inventory and help turn the market around and firm up Prices. It has been reported that Bangkok canners are currently offering chunk light product for the US market at $15.50 per case. This product would likely arrive late enough that importers would have to pay "double duty" on it. Most of the single duty product was probably bought at about $16.75 per case.

The albacore market continues to be very depressed. Canners have not shown much interest in buying jig boat albacore from this year's South Pacific troll caught season. Longliner prices also have not improved. Samoa longliner prices for the October through December period have been set at $ 1400 per short ton. This is down from the September price of $1960, StarKist Samoa has arranged a second reefer carrier to hold their excess quantities of albacore. This market does not have much chance of firming up at this time.

BC Packers Brands May Be Joining Bumble Bee

International Home Foods, Inc. makers of Bumble Bee® canned seafood, Chef Boyardee® prepared foods, Gulden's® Mustard, Libby's® canned meats, and Pam(& cooking has announced that it has entered into a definitive agreement to acquire the canned seafood brands and business of British Columbia Packers (BC Packers) from George Weston Ltd. of Canada.

The acquired business includes Clover Leaf® and Paramount® the leading brands of white and light meat tuna, and red and pink salmon in Canada.

The Clover Leaf® and Paramount® brands acquired from BC Packers will be integrated into International Horne Food's (IHF) Bumble Bea brand. IHF will assume all marketing and distribution responsibilities. British Columbia Packers will retain ownership of its packing plants. As part of the transaction, International Home Foods has entered into a long-term agreement under which British Columbia Packers will provide canned salmon to Bumble Bee

C. Dean Metropolis Chairman and Chief Executive Officer of International Home Foods issued the following statement-, "The acquisition of the Clover Leaf and Paramount brands presents several outstanding opportunities for International Home Foods. The brands are an ideal strategic fit with our Bumble Bee business, as they help to extend an ideal strategic fit with our Bumble Bee business, as they help to extend our leadership position in all canned seafood segments throughout Canada and introduce us to the British and South African markets. Moreover, the acquisition will strengthen our global sourcing and purchasing effort, and increase tuna packing volume in our Bumble Bee plants. We look forward to integrating these fine brands into Bumble Bee and International Home Foods."

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