Monthly newsletter of the tuna fishing industry

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

With many of the fleets worldwide staying in port towards the end of 1999, prices of tuna began to increase. The few Taiwanese and
Korean vessels fishing found more lucrative markets for their fish outside of Bangkok. Taiwan Deep Sea Tuna Boatowners and Exporters
Association and the Korean Deep Sea Fisheries Association met in Kaohsiung November 25-26, 1999. In that meeting, they agreed to
voluntarily reduce their fishing effort by up to 50% during the period from December 1, 1999 to February 28, 2000 in order to stabilize their
prices and conserve the tuna resources.

The conflict between Ecuador and Mexico continues. Ecuador announced in mid-December that it will impose trade barriers on 20 types of
products imported from Mexico unless Mexico drops a 23% tariff on Ecuador's tuna. Mexico's Secretary of Commerce had previously
announced the immediate tariff on Ecuadorian tuna (See Crow's Nest January 2000). According to the Ecuadorian Minister of Commerce, if
Mexico's trade barrier on tuna is not removed, Ecuador will impose trade sanctions on Mexico's 20 main exports to Ecuador which
represents US$200 million. Mexican products earmarked for sanction include vehicles, medication, chemicals, tires, and cement.
Ecuadorian tuna entered the Mexican market without paying any tariffs prior to mid-December's measure. Ecuador's tuna exports to Mexico
were US$3.2 million as of August of this year, up sharply from US$166,680 in all of 1997. Ecuador tuna imports account for 85.7% of all
imports. Other suppliers include Spain, the United States, and South Korea. Ecuador's tuna industry wants its government to take the
matter up with the World Trade Organization. In 1998, Ecuador exported US$46.4 million worth of goods to Mexico and imported US$156
million worth of products from that country, official figures show.

In the United States, the National Marine Fisheries Service (NMFS) proposed an establishment of an official dolphin-safe mark. This rule
will allow consumers to distinguish dolphin-safe tuna products using the official mark from non-dolphin-safe tuna products. The use of
this mark, if implemented is not mandatory. A full color version of the proposed mark can be found at the NMFS Southwest Region website
at http://swr.ucsd.edu.

Thai Union, the second largest tuna supplier after H.J. Heinz's Starkist Division plans to raise 1.5 billion baht through private placement of
new bonds with the recent approval from shareholders to raise capital to 896.09 million baht from 749.09 million. According to the firm,
capital will be raised through the issue of debentures that are unsecured, or without warrants, or convertible. Reportedly, no more than 12
million shares will be issued for conversion by the firm's warrant holders. The debt issue will be capped at 3 billion baht, either privately or
in a public offering with foreign investors. It became the second largest tuna supplier in the world after acquiring 50% of the Chicken of the
Sea brand. Thai Union of Frozen Products (TUF) was recently named by Forbes Magazine as one of the top 20 star performers for the year
2000 based on the firm's strong profit performance and return on equity.

The collapse of the world tuna prices in the last months of 1999 had their casualties. In France, the 27 French purse seiners other than the
Saupiquet fleet (which is under a different agreement) went on strike on December 17 following some unsuccessful meetings between
the crew members and the boat owners. As the French daily newspaper "Quest France" had put it (translated): "As gallant as billionair's
yachts, the large French purse seiners are swinging across the tropical swell. Like "a beam", they drift in two groups, one off Abidjan and
the other off Seychelles. A handful are on the quay side. It's the strike!"

In France, the remuneration's are indexed on the boat's turnover. This has led some boat owners to issue some back pay reminders
several weeks after delivery. The fish sold at a lower price than expected. Because of this issue and the reduction of working hours,
discussions started in November to study the modification of the tuna crew's collective bargaining agreement. Following the "Aubry" law,
the owners proposed 24 more holidays for a total of 145 paid holidays at home. This is important to fishermen whose main worry is the
separation -- fishing trips lasting 3 months. The net minimum salary was already increased from 870OFF to 11000FF. The fishermen now
want 1200OFF. Traumatized by the back pay reminders, the crew members, want to receive an advance of 90% of the scheduled payment
following the current price ... 90% of which could not be returned. The boat owners had only agreed to 85%. That strike soon ended since
the positions of both sides were not too far from one another and prices of tuna began to increase. If they had waited a little longer, the
Spanish competition would be the one to deliver to the Italian canneries.

The crew members of Saupiquet were not involved in the strike because they have a different employment agreement with the boats.
Controlling interest of Saupiquet was purchased by Trinity Alimentary of Italy (See Crow's Nest January 2000). After the take-over was
finalized, Ernesto Trovamala, general manager of Saupiquet was nominated as Chairman of the Board of Saupiquet. Trovamala replaces
Dider Lefevre. Lefevre will be appointed as general manager of another French food group- The takeover was finalized on January 14 and
the results will be known around February 2000.

Garavilla of Spain will open a new plant in Mundaka, Viscaya, Spain. This is close to Bermeo, the home port of some famous Spanish tuna
boat owners. With an investment of 3 billion pesetas, the new premises will be dedicated to the development of value-added canned
foods. After 4 years of trade with the Frenchmen, Garavilla believes that he has a good "measure" of the French taste. A laboratory in
Valencia, carefully studies the series of products generating high margins, such as the sardine fillets and tuna salad recipes.

Created in 1887, Conservas Garavilla is the 5th largest in Europe. The company is shared between the family and Banco de Bilbao which
control 40% of the capital. The turnover was 28 billion pesetas in 98 and 9% of the production is exported to over 50 countries including the
brand, "Isabel." France absorbs half of the exports. Garavilla operates 6 plants -- 4 in Spain, 1 in Manta (Ecuador), and 1 in Agadir,
Morocco. The "0 Grove" plant in Galicia has been modernized with the new Mundaka plant with the production of 225 million cans to be
boosted to reach 400 million cans/year.

The European Union's tuna vessels will be able to exploit the equatorial waters off Sao Tome and Principe islands in the Atlantic following
a deal with this tiny republic that stands some 200 miles off the Gabon coasts. The EU council of ministers is going to rubber stamp the
deal which lasts until May 2002. It allows 18 purse seiners of France, 18 of Spain, as well as 7 pole and line boats from France, 5 surface
ongliners from Portugal and 28 longliners of Spain.

ANNOUNCEMENT: CASAMAR GUAM, INC. is pleased to announce the appointment of Mr. Jimmy Jang, a 25-year veteran of the Tuna
Purse Seine Industry as the DOCK MASTER of Casamar Guam effective 28 January 2000. Mr. Jimmy Jang takes over the dockside
responsibilities of Mr. Paul Davidson. Mr. Paul Davidson will continue to handle military sales and contracts.