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.

As of the later part of July, prices for Skipjack 47.5lbs in Samoa was around $580$600/ST. That's because prices for Skipjack in Bangkok
have continued to fall from $730-$750 per MT to $700 recently for Skipjack 47.5 lbs. Bangkok canners are testing the waters by bidding
even below $700 to see if traders are willing to give in. It looks like traders are trying hard to hold the price at the $700 mark, or from
slipping lower.

The price trend for Skipjack within the Eastern Pacific Ocean is the reverse. Catches of Skipjack for the Ecuadorian fleet continue to be
disappointing. Skipjack prices moved up over the past months from $700 to close to $800 per MT by late July. Skipjack 47.5lbs in Ecuador
were $750$770 per MT and around $925 per MT for 20+ Ibs Skipjack. In Colombia, the price of Yellowfin over 20 Ibs were about $925$950
per MT

On July 23, the United States Federal Court of Appeals Court again delayed the entry of tuna caught by chasing or encircling around
dolphins into the United States. This includes most of the tuna caught by the Mexican tuna fleet. The 9th Circuit Court of Appeals upheld a
lower court ruling last year that further studies by the NMFS (National Marine Fisheries) must be conducted before allowing tuna caught
with purse seine nets be labeled "dolphin safe" if observers had not seen dolphins killed or seriously injured.

In 1997, in an effort to find a compromise on fishing trade barriers, particularly with Mexico, U.S. Congress passed a proposal from the
Commerce Department to change the standard of the "Dolphin Safe Label" sold in the United States.

If not for their method of tuna fishing, Mexican tuna fishing companies have the greatest advantage over other tuna producers in the world
for supplying tuna to the United States. Mexico is part of the North American Free Trade Agreement (NAFTA). A rare combination of rich tuna
fishing grounds, low wages and minimal transportation costs due to its close proximity to the United States are other advantages no U.S.
or nation in the world can compete with. One of Mexico's busiest tuna ports, Ensenada, is only 2 hours away by truck from the Port of San
Diego where the U.S. canneries used to be located. Even U.S, territories that have zero tariff to the United States have to adhere to U.S.
Federal Minimum Wage Laws that make it difficult for them to compete with other 3rd world nations.

Mexico's tuna fishing industry threatened to abandon the dolphin conservation program it followed since 1990 if the legal barriers are not
lifted. A threat that undermines the international efforts to preserve dolphin populations worldwide, Earth Island Institute, through their
spokesman, Mr. Mark Berman said that: "Already, they hardly have any markets for their fish, and we'll keep closing the markets for
dolphindeadly fish". Berman said, "This is a clear signal that it is time for Mexico to join with the rest of the world in promoting dolphin safe
tuna".

The major U.S. brands, StarKist®, Bumble Bee®, and Chicken of the Sea®, afraid of losing their "dolphinsafe" label, refuse to process or
purchase tuna that involve the chase or encirclement of dolphins.

The controversy is not over yet. The report from the NMFS is not due in U.S. Congress until 2002. Not too many agree that Mexico's tuna
fishing industry is the victim. A ruling in favor of Mexico will have a negative impact on the tuna industries of Latin America and Asian
countries that currently export to the United States. if the 1997 law is implemented, the distribution of tuna in the world will change as
producers displaced by the entry of Mexico into the U.S. will have to compete in other markets or will have to cut production cost further in
order to compete with Mexico.

The Court of Appeals have not ruled against the 1997 ruling. It merely agreed with Judge Henderson's original ruling that said that the
National Marine Fisheries (NMFS) had dragged its feet on the studies that were required by the 1997 law. The studies are supposed to
show whether dolphins are harmed by being repeatedly captured and release. The appeals court noted that the preliminary reports
indicated stress from the fishing method was the likely reason for the continued lag in the dolphin population. The appeals court also said
that the government (NMFS) has "unreasonably delayed the stress studies" and needs favorable results from those studies before it can
legally change the definition.

The United States, which once boasted a fleet of over 100 tuna purse seiners is now down to 32. Sanford Ltd. Of New Zealand announced
in mid July that it had purchased 2 tuna purse seiners the M/V Stella Maris and the M/V Chloe once part of the illfated Zee Fishing Fleet. The
W/V Stella Maris has been renamed the "San Nikunau" and the M//V Chloe has been renamed the "San Namunea". Both vessels will be
fishing in the Western Pacific and delivering their fish to Pago Pago (American Samoa), Fiji, Majuro, and other canneries in the Western
Pacific. The vessels will be homeported in New Zealand and will be fishing in that area "in the summer months, when the Skipjack are at
the southern most part of their migration," says Sanford group managing director, Eric Barratt.

The number of Korearep tuna fishing vessels remain unchanged. Oyang Fisheries sold one older vessel to the Philippines and Shilla Co.
launched a new 1600 ton Americanstyle tuna purse seiner in the Marco Shipyard in Chile in June. The Shilla fleet boasts the most efficient
equipment and operation in the world with 5 "almost identical" American sister ships all built within the last 10 years. The 5 vessels are
equipped with the world's leading brands of equipment including Casamar nets and gears. The Shilla Jupiter joins 4 San DiegoCampbell
boats built in the early 90's: the M/V Shilla Challenger, the M/VShilla Explorer, the M/VShilla Pioneer, and the M/VShilla Harvester.

NEW PRODUCT: Casamar's SIMPLE GREEN® for FISHING VESSELS & MARINE APPLICATIONS. All-purpose
CLEANER/DEGREASER/DEODORIZER. Sold as a concentrate that can be diluted (up to 150 times) with water for various cleaning and
DEGREASING applications. Authorized by the USA for use in Federally inspected meats, poultry, and other food plants. Excellent product
for cleaning fish wells, engine rooms, decks, kitchen, and other cleaning and deodorizing applications. Removes Fuel Odors. For engine
room applications, it washes out oils, grease, ... without heavy scrubbing that can ruin surfaces. Safe alternative to hazardous chemicals
and can replace most cleaners and degreasers. NONTOXIC. NONFLAMMABLE, NONABRASIVE. Available at CASAMAR in Guam and
American Samoa February 2001. More details can be found at it at www.TunaPort.com

Crow's NEST is provided by CASAMAR to its customers for their information only. CASAMAR is not responsible for any errors or delay: in the content or for any
actions taken in reliance thereon.

This publication is provided by CASAMAR to its customers for their information only. CASAMAR is not liable for any errors or delays in the
content, or for any actions taken in reliance thereon. Trademarked names are used in an editorial content with no intent in trademark
infringement.

For more information on the Tuna Fishing Industry visit the Casamar Home Page at www.casamarintl.com for the
nearest full-service and sales facility in your part of the world or the latest product designed specifically for the Tuna
Fishing Industry.