Dr. Chanintr
Chalisarapong Advisory board member
FoodMarketExchange.com
Published
on December 04,2000
It's time to enhance the real value of tuna
Between
April and September, the price of skipjack tuna had been
at a low level of just US$400 per ton until a Taiwanese
vessel agreed to reduce its fishing activities, helping
to push up the price to US$450 per metric ton for delivery
in the second half of October and the first half of November.
Catches in the Indian Ocean have been good, and the fish
became available on the Bangkok market, forcing the price
down to US$430 per ton for delivery in the second half
of November.
Meanwhile, the canned tuna market
in the United States has not been as active this year
as 1999, and the weak euro has depressed the E.U. market.
Catches in the western Pacific and Indian Ocean remain
strong, so the price for December delivery is back to
the US$400 level again. Given this situation, fishermen
are already suffering loss of income of several hundred
dollars per month. It is likely that every vessel will
lose between US$1-2 million, and it is also likely that
boat owners will be unable to survive. The upstream tuna
industry is subsequently facing an immediate crisis.
The consequences of this situation
are:
-
Only five or six American vessels are operating out of
a total of 30 vessels
- Taiwanese vessels will
stop fishing until the situation improves. Our estimate
is that about 20-25 vessels out of a total of 50 will
remain in their ports at the end of this year.
- Korean vessels will continue
to reduce their fishing activities and return their hauls
to Korea for the peak consumption period during Chinese
New Year.
- Sooner or later, either
the Spanish or French fishing fleet will be forced to
wind down their fishing activities.
Nobody can currently envisage
any alternative to improve the situation, and it will
be a case of allowing each vessel to go bankrupt, forcing
the ships to stop fishing in order to turn around the
fish prices. The danger is that fish supplies will swiftly
disappear in a sudden fishing 'coup', and this will cause
a negative impact for most tuna canneries.
Who will benefit from the current situation? Well, we
don't think it will benefit any of the parties involved
in the tuna industry.
As a long-term strategy, halting fishing is not the right
way to solve the problem of low prices. Many packers in
Southeast Asia have reduced their capacities by between
30-50% since April 2000. The supply of canned products
has been cut, while the prices of fish and canned fish
have continued to slide.
Fishermen and canneries have been suffering for a considerable
period of time. It is time to urge importers and distributors
to create greater demand in the market! Why don't we add
greater value to canned fish by increasing the fish content
and reducing the hydrolyzed protein, which costs around
the same price as the fish in any case. Fish has great
nutritional value and there will not be any GMO concerns
for the consumer.
We should organize funds for promotional and advertising
campaigns for canned fish while consumers are facing a
crisis of confidence due to Mad Cow disease in Europe
as well as 'Pork Fever'. The beef and pork industries
have enhanced their products and market value while people
in the tuna industry have just talked the talk at industry
events, without walking the walk.
It is time for the fishermen to improve the quality of
their catches, and for the canneries to enhance the quality
of the finished product. And it is also a great time for
importers and distributors to enhance the value of canned
tuna in the market. If we all perform to the very best
of our abilities with the aim of enhancing the real value
of tuna fish in the eyes of the consumers, this will benefit
every party involved, from the fishermen and canneries,
through to the importers and distributors.
