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.

Price of Fish Goes Down Again

August 22, 1999 came and went without a hitch. The skippers were warned to be very careful on that day. August 22,1999 was the "Y2K" for the GPS positioning systems. The clock systems came to zero after 1024 weeks of good service. That's 7168 days after the commissioning of the NAVSTAR/GPS.

For most operators, fishing continues to be excellent. Prices of raw tuna have slipped downwards again.' as fishing in the Western Pacific continues be good and most canneries are still full. The price of skipjack (47 lbs) in Bangkok has dropped to US$610 per metric ton from a recent high of $670. The price of skipjack in Samoa has not gone lower than US$500 per short ton. For awhile in August, some boats in Samoa were getting US$540 per short ton. The skipjack price in Ecuador is still down to about US$450 per short ton. The price of large yellowfin in Mexico is currently at about US$600US$750, and in Colombia the large yellowfin price is at about US$800 per metric ton.

It appears that the ETP Yellowfin tuna quota may be reached by the end of October this year (Crow's Nest August 1999). As of the end of August, a total of 200,160 metric tons of yellowfin has been caught in the ETP regulatory area. According to IATTC reports, the total 1999 ETP tuna catches through August 30, are ahead of last year by 154,617 tons (429,449) metric tons for t999, versus 274,832 metric tons for 1998.

The longline albacore price in Samoa for September was US$2160 per short ton, the same as it was in July and August. The current long line albacore price in Puerto Rico is about US$2300 per short ton. The jig boat albacore price offers for September have come down to around US$1400 per short ton, ex-vessel, for the North West Coast. The jig boat price in Samoa for direct deliveries has come down to around US$1850 per short ton.

There are plans for Heinz to process tuna in Brazil. They may come to an agreement with a Brazilian company to process a part of the production under the brand "CPC."

The world's second largest producer of canned tuna, Thai Union, reported on August 16th that its second quarter net profit rose 56% to US$12 million. Their sales rose 25%, from the same period a year earlier to US$130 million. Thai Union exports about 40% of their products to the U.S.

Environmental activists filed suit in Federal Court on August 18th seeking to stop the new definition of "dolphin safe" tuna from taking effect in October. The suit, brought by a coalition of some 10 groups, and spear headed by Earth Island Institute, seeks to block labeling changes that would allow tuna caught by "dolphin encirclement" to be sold in the United States under the "dolphin safe label.

In Europe, the annual closure of the tuna canning factories has now
ended. Canners are going to pass new orders for raw materials especially in Italy. In general, it is reported that more than 50,OOOMT of frozen tune is expected in Galicia and the Italian ports. Fifty percent is coming from the Eastern Pacific mainly and to a lesser extent from the Western Pacific. Ten percent from the traditional West coast of Africa fishing grounds and the rest from the Indian Ocean. However, a lot of canners continue to prefer loins that are in competition with the conventional tuna.

Spain reports an increase of exports by 20% of just under 6.9 million cartons from its highest volume in 1997 at 5.73 million. Spain is the main supplier to Italy. It also exports to France, Portugal, the UK, Germany, and Greece. Spain also exports outside the EU to Libya, Algeria, Switzerland, Argentina, Andorra, the USA, Uruguay. and the Czech Republic. It has been reported that exports to Libya have increased eightfold to 1.06 million cartons last year.

France reports a decline in exports of canned tuna after 5 years of successive growth. Exports have declined to 2.73 million cartons from a peak of 4 million cartons in 1997. The volume of exports is at its lowest since 1995 of 2.53 million. Exports to the European Union accounts for about 98% of total exports. These Include Germany, the UK, the Netherlands, Belgium, Italy, and Spain.

Sales of tuna cans in Europe have been good. This is true for Italy, Spain, and France; however, the replenishment of stocks is not going to help much due to very aggressive competition from the Far East. Prices are slightly lower than last month putting some boat operators in a difficult situation.

Prices in Europe were as follows:

Yellowfin (frozen round) +1Okg, from Spanish boats 185 Pesetas CIF Galicia: Yellowfin (frozen round) +10kg from Mexican vessels 160 Pesetas CIF Galicia; Yellowfin (frozen round) +10kg, from French/Spanish of premium size/quality +10kg US$1150/metric ton CIF Italy; Yellowfin (frozen round) +10kg, US$1,000/metric ton CIF Italy for fish of Eastern Pacific origin; Skipjack (frozen round) +1.8kg 85 Pesetas CIF Galicia from the Spanish vessels; Yellowfin (loins) US$3,400/metric ton CIF Italy/CIF France for loins from Central America/Ecuador; Skipjack (loins) US$2,400/metric ton CIF Italy/CIF Spain for loins from Central America/Ecuador.

Conservas Garavilla in Spain has completed their investment at their "El Grove" facility. The new facility will produce 5.6 million cans per year of Tuna salads.

Two companies in Spain, Bernardo Algeme and Escuris, have initiated negotiations to study the merger of both companies. Industry members claim that mergers and vertical integration are the answers to cope with the pressure on prices from the large distributors.

In the Canary Islands, it is reported that there are better catches with albacore (bonito). After a severe crisis during the El Nino., the port of Tazacorte reports 45 fishing vessels returning to Port everyday with 500kg to 1 ton each.

In the United Kingdom, John West, a subsidiary of Heinz is launching a range of reduced calorie products under the "Weight Watcher from Heinz" logo. These include tuna in mayonnaisestyle dressing with sweet corn and Tomato salsa.

The biggest news in France is the FrancoSpanish marriage of 2 large European tuna companies: the French company Saupiquet and Calvo Pesca of Madrid, Spain. Saupiquet has been looking for a partner to manage their 7 tuna. purse seiners (Crow's Nest July 1999). Saupiquet had initially approached the French companies. They discussed with the France Thon group (based in Concarneau with its 3 owners) and the Company Chambon, a maritime fleet affiliated to the SB group (Sucreries de Bourbon, sugar mills of La Reunion). They all failed. Talks with Calvo Pesca started since early summer and an agreement might be reached very soon. Calvo Pesca is one of the most important tuna fishing and canning companies in Spain. A common operational organization between the 2 companies will be established. It will manage a fleet of 14 tuna fishing boats in the Atlantic and Indian oceans. It would permit the transfer to the Pacific ocean of both the Saupiquet tuna processor boats which would have been a first for a French company. But best of all, it will give Saupiquet, who has experienced fishing fleet management problems for the last 2 years some room to breathe. The company has been going through some financial difficulties with slow sales and heavy debts. These debts are from their purchase of their 5 vessels. These vessels were financed following leasing schedules on 20 years for approximately 369 million francs or US$60 million. The rumors are that the debt will be transferred to this new company created by Saupiquet and Calvo leaving Saupiquet with a more attractive financial statement at the end of the year for their major stockholder PARIBAS. There are many unanswered questions regarding the flags of the vessels under the new company and the French crews almost 130 in all. But the main concern for the French is their reduced influence in the tropical tuna sector which is a big blow to the French who have always sought to preserve their cultural, economic, and political identity and have openly expressed their fears of being taken over by the general ambivalence toward globalization.

Past Issues of the Crow's Nest

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