| Tuna Market Report - EU - February 2007 | |||||||||||||||
Canned tuna
market expanding
Most canned tuna importing countries expanded slightly their purchases of canned tuna during 2006. Main supplying countries continued to be those countries where European producers have their canneries installed. It can be noted that Thailand, the Philippines and Indonesia took advantage of their reduced duty quotas, and managed to expand their exports to the EU market. These countries are mainly supplying supermarkets, packaging under private labels of the retailers. Prices expanded in the course of 2006, and further increases are likely in coming months. Low raw material supply and higher prices are the main reason behind these expected increases.
EU inspectors becoming tough
Several countries producing canned tuna for the EU market have had visits from EU inspectors in recent months, and many problems were found. The countries were given a certain time to take corrective measures. On the positive side was the visit by EU inspectors to the Philippines, where the inspectors were impressed by the cleanliness and improvements they witnessed during a visit to General Santos City’s fishing port complex and other parts of the tuna production chain. On a similar note, the EU inspectors ’visit to the Seychelles found substantial improvements in related to the registration of the surface longline vessels, the improvement the control of histamine and residues of heavy metals, introduction of new system of checking in the laboratories, the improvement of the different processing and exporting procedures. During recent months, several important fishing agreements were signed with the Seychelles, Cape Verde, Mauritania and Comoros, which will secure tuna catches for the EU fleet in the coming years. All countries are allowed to export canned tuna to the EU at 12% or lower duty, with the only exception of Thailand, Indonesia and the Philippines, which have to pay the full duty of 24% at the moment. From 1 July 2007, they will be granted quotas (Thailand 13 390 tonnes, the Philippines 9 270 tonnes and Indonesia 2 800 tonnes) at the reduced rate of 12%. Experience shows that these quotas will be filled within days. High tuna consumption in UK and Spain Spain and UK are the main consumers of canned tuna in the EU. While Spain is still mainly relying on domestic canneries for its supply, UK has to import all its canned tuna. Per caput consumption in both countries is 4 kg (liveweight equivalent), which in the case of UK is an important part of the total seafood consumption of the country. Total consumption of seafood in this country is estimated at 20 kg, thus tuna accounts alone for 20% of this. UK imports are about stable at 132 000 tonnes per year. The main suppliers are those countries were UK canned fish trade marks have their canneries (Seychelles, Mauritius, Ghana), while Thailand is mainly supplying supermarket chains with private labels. All the main suppliers experienced increases in 2006, with the only exception of Ghana. The decline of arrivals from Ghana was due to poor fishing in Ghanaian waters in 2006, mainly caused by climatic changes and coupled with the high price of fuel.
France is the third major canned tuna importer, behind the USA and UK. However, imports have stabilized in recent years at around 105 000 tonnes annually. Côte d’Ivoire seems to have overcome its main problems, and is looking with more optimism to the future. In 2006, French imports from this country were still slightly down, but full recovery is foreseen for 2007, with new management in the main producing factories. The Seychelles recovered after the above mentioned problems with quality controls were resolved. Imports of canned tuna from this country are back at pre-2005 levels.
Germany is a relatively small market for canned tuna, with imports around 80 000 tonnes per year. The per capita consumption is thus around 2 kg per year. The Netherlands is a main transit country for canned tuna, mainly originating from Ecuador and Ghana. It is interesting to see the recovery of Thailand in 2006, taking advantage of the reduced tariffs in July 2006. The Philippines, mainly producing for the catering sector, are still the main supplier of canned tuna to the German market, with one quarter of total imports.
Italy started only recently to import canned tuna, as most of the traditional trade marks were sold to foreign owners, and some domestic canneries closed down. In recent years, imports have stabilized at around 70 000 tonnes, but in 2006, imports are foreseen to have stayed below this level. Spain, the country to which most of the traditional canned tuna trade marks were sold, is not surprisingly the main exporter to the Italian market, selling under the trade mark tuna canned in Spain. This country accounts for more than half of the Italian canned tuna imports. Italy is a relatively unusual canned tuna market, where traditional trade marks have maintained their predominant position, even in these years of expanding importance of supermarkets chains in the retail business.
Further price increases likely Prices that had experienced substantial increases in the early half of 2006, stabilized at high levels. There is no hope for a price reduction in the near future despite the reduction in fuel prices. Low catches, especially of yellowfin, led canneries in Europe to start to use up the coldstorage holdings. Sooner or later the higher prices of the raw material will be passed on to the consumer, and even higher prices of canned tuna in the market are likely.
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