Skipjack
prices have risen too quickly
Having
hit a low of US$ 380-400 per metric ton in December 2000,
the price of skipjack has continued to rise, hitting $
450 per metric ton in early January, $ 550 per metric
ton in mid-January, $ 650 per metric ton in early February,
and up to $ 750 per metric ton in mid-February. Skipjack
is currently trading at around $ 800 per metric ton.
There are several factors that have caused the price
to move upwards at this pace:
- The full commitment
of boat owners around the world to reduce catching activities
from September 2000 through until June 2001. This has
led to a 30-per cent reduction in catches.
- Thanks to mother nature,
we have had two years of good catches, however, tuna
catches in the Eastern and Western Pacific and Indian
Ocean have become very poor over the past two to three
months.
- Skipjack is accounting
for only 50 per cent of the overall catch, whereas it
normally accounts for about 80 per cent of the overall
catch.
These factors have quickly pushed up the price of skipjack,
while the yellowfin price remains stable at around $
900-1,000 per metric ton.
Following the resolution of the 3rd World Tuna Purse
Seine Organization (WTPO) meeting in Ecuador, some fish
traders have been trying to push the price of skipjack
well above $ 800 per metric ton. Such actions will not
help the tuna industry as a whole because the price
has risen so dramatically, and beyond a level that is
acceptable to the canned market. Tuna canneries will
likely suffer from this kind of practice.
The objective of the WTPO meeting was to balance supply
and demand and try and ensure that the upstream industry
could survive and be sustainable over the long term.
However, boat owners should not let tuna prices rise
too quickly, which would force canneries to reduce their
productivity and suffer heavy losses.
Boat owners, fish traders and canneries should cooperate
in a constructive way in order to build up a healthy
industry that can be beneficial for all parties concerned.
We have reason to believe that:
- The WTPO's policies with regard to boat owners have
been positive in stabilizing supply levels.
- Canneries have improved their operations to provide
high quality and reasonably priced products, including
new innovations such as 'tuna in a pouch', for consumers.
- The demand for fish products has increased due to
the onset in Europe of mad cow disease and the outbreak
of foot-and-mouth disease, which has hit the United
Kingdom and could yet spread to other nations.
In brief, boat owners, and especially fish traders,
should not focus only on short-term profit potential.
They should avoid having an effect upon the canneries'
ability to produce high-quality tuna products at reasonable
prices for the market. Rather, we should all endeavor
to support steady and reasonable prices in order to
stabilize the canned tuna market, which would help the
industry as a whole.
|
