Monthly newsletter of the tuna fishing industry

As the livestock market braces itself for a volatile market, the tuna industry recovers with an aggressive marketing plan intended to
increase profits. The top 3 U.S. brands are supporting their new product introductions with marketing campaigns that include TV and print
ads, inserts, coupon, and instore demonstrations and samples. A media campaign that has not been seen in the tuna industry for almost
20 years. The tuna vessel operators are reacting cautiously. On March 2, 2001, the World Tuna Purse Seine Organization (WTPO) agreed
to continue reduction measures until June 2001.

In early Mar;h, Thai Union and other buyers bought skipjack at $800 per metric ton. By the middle of March, it had been reported that
skipjack lots sold for $900 per MT for 47.5 lbs. For end March, traders are asking for more than $900 per MT.

Because of the abundance of yellowfin catches in the Eastern Pacific, the Yellowfin price has been going down in Latin America. In
Colombia and in Ecuador, prices of yellowfin 20 lbs. and over is about $750 per MT, and in Costa Rica, it is about $700 per MT.

In American Samoa, prices are still catching up. Chicken of the Sea paid $650 per ST for 47-1/2 lbs. in early March. The last price paid in
American Samoa for Taiwan and Korean skipjack was about $550 per MT based on old contracts. However, fish from the Eastern Pacific
unloaded in American Samoa in late March was paid $762 per short ton for 4 to 7-1/2 lbs for skipjack or $850 per MT. The StarKist Samoa
plant is scheduled to shut down the month of April to improve their endofyear balance sheet inventory figures.

A 20% import tax plan on foreignsupplied tuna is being considered by the
American Samoa government. Although the bill has passed the Senate, it is still
being argued in the House of Representatives. Supporters of the bill are
pessimistic that the bill will pass. New arguments presented in the House and a
more conciliatory attitude by the canneries may change the minds of many
lawmakers. Initially, the local government expected increased revenues of up to
$5 million a year at the same time helping the homeported vessels. The
canneries have instead replied that they will stop buying fish from foreignflag
vessels resulting in no additional revenues for the government and about 1520%
reduction in hours for the existing workforce which will eventually mean layoffs
since the U.S. fleet cannot adequately supply the 2 canneries. The 2 canneries also
argued that this is illegal because it interferes with their tax exemptions.

At stake for American Samoa are 2 of the largest canneries in the United States employing about 5000 locals and power and water bills
amounting to US$600 thousand per month for the two canneries. If this bill is passed into law, it is believed that Chicken of the Sea, now
owned by Thai Union, will move most of its production to Bangkok and StarKist may eventually pull out of American Samoa. In the
arguments in the Senate, the 2 canneries Chicken of the Sea/Samoa Packing and StarKist made it clear that the proposed 20% tax cannot
be legally imposed because it violates the tax exemptions which were signed by their governor and that if the tax is imposed, the canneries
would have to stop buying foreignsourced tuna.

The minimum wage in American Samoa is about $2600/day versus its competitors in Bangkok where the prevailing wage is only
$4.00/day. What American Samoa offers to the canneries is some income tax benefits and "taxfree" status for exporting to the U.S. where
the U.S. assesses a duty of 12.5%.

Samoa Packing, whose contract expires this year, assured the House of Representatives that if the bill is killed, Samoa Packing is
expected to increase its production by 17%. A plan that will definitely be jeopardized if the tax is imposed. Samoa Packing (Chicken of the
Sea) also told the House that the 17% expansion would mean increasing its current labor force of 2450 workers by 67%

Many global industry observers believe that instead of the U.S. territory
government driving canneries away, the government should study an "indemnity"
in favor of the U.S. boats when the spot American Samoa landed price is below a
given minimum to help the U.S. owners resist the fierce Asian competition. This
is the only way the U.S. fleet can survive. In Europe, a similar mechanism exists for
European fish landed in Europe. However, this compensation/subsidy is widely
criticized by the political/global business lobby group because this subsidy is
believed to be in favor of the large enterprises to capture the markets.

The biggest news for the U.S. tuna canning industry is H.J. Heinz (owners of StarKist) announcement of closing the StarKist tuna canning
plant in Puerto Rico's west coast city of Mayaquez. The 40year old plant was once Puerto Rico's largest employer with 4,000 workers. Heinz
made the announcement along with fiscal thirdquarter earnings report that showed minimal profit growth. StarKist, like other tuna
Processors have been struggling with the weak tuna prices. Star-Kist tuna business fell 4% to US$228.1 million or about 10% of Heinz
total.

With the changes in U.S. Federal tax laws, Puerto Rico has lost its competitive edge. The StarKist tuna cannery is not the only plant to close
in Puerto Rico. Some 6,500 jobs have been lost in Puerto Rico since November 2000. Among the other manufacturers that closed in
Puerto Rico was Intel Corp. that employs 1,360 highlyskilled jobs. Puerto Rico claims the shutdowns and layoffs are due to the loss of
Federal tax breaks - Section 936 of the U.S. Internal Revenue Code, which exempted U.S. companies from paying taxes earned by their
Puerto Rican manufacturing subsidiaries, and Section 30A, a tax break based on the wages employers pay. Since the phase out plan was
enacted in Congress in 1996, Puerto Rico has lost 22,500 manufacturing jobs and more than 125 factories have closed.

Thai Union Frozen Products, the world's second largest producer of canned
tuna is currently enjoying a 10mouth high on the price of its stock over media
hype on its string of successes beginning December last year. In Bangkok, analysts
also changed its stock recommendation from "hold" to "buy". First was the
announcement of its 100% stake in Chicken of the Sea, one of the top 3 U.S.
canned tuna brands, giving Thai Union a significant 17% share in the U.S. over 2
billion can market. Then, came the continuing rise in the price of tuna, assuring
investors that higher tuna. prices will find their way to Thai Union's higher profits.

The StarKist "TunainaPouch" is already catching on in the United States after a slow start. The "TunainaPouch" has already gained about
3% in market share after continuous TV advertising using StarKist 's famous icon "Charlie the Tuna". The same advertising icon made
StarKist" a household name almost a generation ago. StarKist expects market share to increase further when they introduce the 3oz.
Convenience size pouches.

Tuna in a vacuum pouch is expected to become popular as the tuna industry continues to develop more innovative, higherquality and more
profitable products and use the media to support these introductions.

On February 22, 2001, Bumble Bee Tuna introduced their own versions of vacuumsealed pouches: "Bumble Bee Tuna Chunk White
Albacore in Water" and "Chunk Light Tuna in Water". The suggested retail prices for the 3oz. Packages are $1.19 for the Bumble Bee
Chunk Light Tuna in Water and $1.69 for the Chunk White Albacore in Water. The pouch features 16 unique recipes including the "Albacore
Artichoke Sandwich" and the "Bayside Waldorf Salad". The family size 7-oz. package retails for $1.99 and $2.79. Unlike its canned version,
the pouch emphasizes value instead of price, which will serve to benefit the tuna industry over the long term. The larger 7ounce package
can make 34 sandwiches and can be added to recipes calling for 12 ounces of canned tuna because it is drain free.

Chicken of the Sea is also expected to begin marketing its "Tuna Salad Kit" in a vacuum sealed pouch in April. Chicken of the Sea is
supporting the launch with national TV ads, consumer prints, coupons, freestanding inserts, instore demonstrations and sampling. Mr.
Don George, Chicken of the Sea's Vice President for Marketing, said that "in independent research tests, 88% of consumers said they
would purchase this product ... [and that] research... showed indicators of longterm sustain ability, so we're just elated by these findings."

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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.

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.