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 Firm Up As Yellowfin Season Comes To A Close

In Bangkok, the price of skipjack (4-7.5 lbs) has reached US $650 per metric ton.

As the closure of the Yellowfin and the FAD/log fisheries (See Crow's Nest August 1999) in the ETP approaches, this should have a further firming impact on the market.

In the Indian Ocean, the tuna catch volume is increasing but the percentage of Yellowfin caught is less than the Yellowfin percentage of 1997. In July 99, 8,500 tons were caught thanks to the last 2 days ending on August 1 which saw a sudden 2,000 tons of Skipjack in the nets. YTD July 1999 total catch for the Indianer's French fleet amounted to 40,500 metric tons (an increase of 14%) of which about 33% are Yellowfin against 35,500 metric tons for the same period in 1998 with 27% Yellowfin. However, in 1997, the French fleet caught 36,000 metric tons with 39% Yellowfin.

In the Atlantic, some 2,800 metric tons of tuna were caught. Again, the percentage of Yellowfin is weakening for the first 7 months. YTD July 1999 tuna catches amounted to 33,000 metric tons (an increase of 12%) of which 50% is Yellowfin. In 1998, YTD July 1998 was 29,800 metric tons with 63% Yellowfin. In 1997, 32,300 metric tons were caught of which 63% was Yellowfin.

Spain is now the major processor in Europe. There were 18,000 metric tons of frozen round tuna bound for the Galician ports a smaller volume than a few months ago. The Cold Storage plants are reportedly full and the reefer carriers discharge rates are slow which is unfortunate for the charterers. This is the consequence of Spanish processors being at ease with their procurements and probably not selling as much tuna cans as expected. Actually, there have not been much new business concluded lately. This is partly because the purchasers in Europe are on vacation.

To add to the growing Spanish domestic fleet, Vigo Astilleros Barreras will deliver this month, the "Panama Tuna" to the Albacora Group of Mr. Inaki Lachaga. The "Panama Tuna" (or "Atun Panama") is 115m OA length and 3,250 cubic meters. She is said to sail directly for the Pacific waters where the Albacora already has 2 boats in operation.

Since the access to the ETP waters is limited, it is believed that the "Panama Tuna" may be headed to the WTP where many European owners are already contemplating to operate part of their fleets.

As many as 10 Spanish seiners (Or SpanishControlled) are seriously considering moving their fleets from the Indian Ocean to the Pacific where the "Alexandros" of Calvo Pesca (with a PNG flag) is now operating.

The Vigo (Spain) yards have other tuna purse seiners under construction. The first is the ATUNSA (a sister ship of "Doniene") 112m OA and for Pebertu an 86m OA.

Vigeuras GONDAN Shipyard of Spain also delivered another tuna purse seine training ship named the "DaBFar" to the Philippines Department of Fisheries. This ship is 60m long and purchased for approx. US$18 million to undertake various training and scientific studies.

Prices of Yellowfin l0kgs and up of Mexican origin in Spain is SP 160/kg (SP=Spanish Pesetas) CIF Spain (approx. US$949.00/metric ton). Yellowfin of Indian/Atlantic origin l0kg and up is SP185/190 (approx. US$1,095 per metric ton). Yellowfin from the ETP is believed to have less meat and yield than WTP YF or Franco/Spanish Yellowfin. Skipjack 1.8kgs and up is now SP90/95 per kg or US$594.00 per metric ton for Indian/Atlantic premium quality.

The French shipyard in Concarneau PIRIOU has just won the joint order from Mr. Labbe of CMB, Mr. Kuhn of Kuhn Ballery and Le Garrec of Boulogne/Mer, wellknown as the "France Thon" group partners for 2 new purse seiners of 67.3 meters OA for FF 91 million (approx. US $15 million) each and derived from the design of "Avel Vad" and "Cap Ste Marie". These boats are to be of 100% French interest. They will not be receiving any government subsidy but they will benefit from a very lenient government treatment. The "France Thon" group partners is known for selling all their catches through the services of SOVETCO, Concarneau.

In France, the 3 medium type Purse Seiners of the Coop group ACF are said to be shortly taken over by the "Intermache" larae distribution and retail group who already owns 10 wetfish trawlers based in Lorient, Concarneau. and Scotland. One freezer factory ship is based in La Reunion (a French distant island south of the Indian Ocean). "Intermache" looks to integrate the catches, the processing (Captain Cook brand) and the distribution of various food products to their supermarkets.

In Israel, Starkist has taken over the control of a local tuna canner, "YONA". "YONA" has annual sales of about US$15 million. It is intended to produce StarKist tuna in the future with imported light meat tuna.

In Italy, the French group "Danone" has sold to the Fossati family all their shares of the "Star" corporation that they had bought a few years ago. The company is controlled by the Fossatis and are going to continue their development of soups, sauces, canned tuna, ... and other products.

In Spain, the Jealsea group owned by the family of Mr. Jesus Alonso, owners of the San Lago Uno and Dos purse seiners are going to invest SP 7,000 million (pesetas) in a cogeneration power station for the Boiro plant that has a capacity of 400 tons of tuna each day. The Jealsa brand is "Rianxeira".

The Garavilla group, owners of the famous brand "ISABEL" has upgraded its "El Grove" plant creating 250 new jobs. The company currently employs 500 people.

Another significant development is the growing quantity of loins used. Italy has passed over the barrier of 50% of the round tuna converted volume. France is following and Spain delivers loins to Italy and France which have a dutyfree access from the Andean and Central American (I I countries) loining plants.

The market outlook in Europe is promising. The warm summer is almost over in Europe. When people leave for their vacations, millions of meals are taken away from the homes. It is hoped that the large tuna can inventories will leave the warehouses now. Some signs of orders for new deliveries are taking off.

There were more changes at StarKist/Heinz. Starkist/Heinz Senior Vice President Mr. Chris Lischewski has turned in a 60day resignation notice to Starkist/Heinz. Word is that he will become the President and COO of Bumble Bee Seafood owned by International Home Foods (See Crow's Nest January 1999). Mark Koob will be the CEO of Bumble Bee Seafood.

In Peniche, Portugal they are building, 6 traditional wooden seiners for sardines catchinc, off the coast of Portugal. They are 23m long and feature a 30 cubic meter hold. Usually, however, the catch is stowed on deck since these are daytrip boats. They are driven by a Cummins 6cylinder KTA 19 meters 3 main engine and catch the fish with a seine net of 1200 meters by 130/140m deep through a 4.4 cm thick nylon purse line that is drawn on a deck winch. The significance? The builder claims that such boats could be converted to tuna easily with some reinforcement in the gantry and additional chillers.

Past Issues of the Crow's Nest

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