| Tuna Market Report - US - March 2007 | ||||||||||
US tuna market waits for innovation The US market for tuna products looks very dull, with imports and demand declining. Prices have moved up only slightly, despite higher raw material costs, which show that consumers are not willing to accept higher prices. In this climate of a dull trade environment, all new developments become interesting. Two lines of innovation are emerging: value added tuna products and “safe” canned tuna that means all-natural low-mercury canned tuna which also has six times the amount of omega 3 fatty acids compared to national brands. Canned tuna processor Chicken of the Sea International is promoting a new line of canned tuna products packed in small plastic cups with an easy-to-peel foil top. The cups hold 2.8 ounces of tuna and no draining is required. The cup sells for US$ 1.85 for chunk light tuna and US$ 2.79 for chunk white tuna. This price compares to US$ 1.00 for a 6 ounce tuna can, which shows the substantial value addition through a different pack and an innovative processing technique. The “safe” tuna offered by Wild Planet Inc enters into a discussion about safe and low in mercury tuna, which is more complicated. Latest research shows no evidence to support the warnings that pregnant women should limit their seafood consumption. The research on the contrary showed that among the 11 875 women in this study, those who consumed the least seafood during pregnancy had children who scored the worst on IQ and other developmental tests. These findings might adjust the standing of canned tuna in the perception of US consumers. In the meantime, however, the consumers still look at canned tuna with a lot of prejudices. The low demand experienced by canned tuna on the US market is reflected in lower imports for this product during 2006. On the other hand, tuna in pouch and tuna loins enjoyed better demand and higher imports.
Frozen tuna imports are very low, only 9 000 tonnes were imported last year, a long way from the 140 000 tonnes imported each year in the mid 90s. Obviously the closing down of the canneries in the USA has contributed to this decline. US imports of fresh whole tuna are also stable at 25 000 tonnes, which shows that the US sashimi market is not growing as much as foreseen.
On the other hand, tuna loins’ imports show a positive trend. Some of the tuna loins are used in sushi production, but not really for the highest quality end of this market segment. In 2006, imports of this product grew by 10% to reach 51 100 tonnes. Thailand is the main exporter of tuna loins to the US, overtaking Fiji and Trinidad and Tobago. The recent closer links between the Thai industry and the US tuna industry has played an important role. Ecuadorian tuna loin exports are subject to the same tariff (6%) as products from Thailand. Ecuadorian exports of tuna loins declined during the past decade, because of the closing of the main outlets (US canneries).
US canned tuna imports declined by 10% in 2006. The main decline was experienced by Philippines’ producers, while Thailand stayed relatively stable. This can be explained by closer trade links between the main US trade marks and the Thai canned tuna industry, while the Philippines is staying outside these industry agreements. Ecuadorian canned tuna exports collapsed, as this product was excluded from the zero duty negotiations. On the other hand, Ecuador takes advantage of this reduced tariff for tuna pouches, and therefore concentrates on this product. It is interesting to watch the sudden appearance of China as canned tuna exporter to the US market, surprising as this country is generally not strong in canning activities. Mexico is exporting a small 2 500 tonnes, mainly to its expatriate communities, happy to find their well known brands.
Tuna in pouch imports are growing by 10%, in 2006, but it is still a long way from replacing, or coming close to, the presence of canned tuna in the US market. Thailand and Ecuador are by far the main suppliers of this product to the US market, with some ups and downs for both.
Is fish good for you or not? The main question in the US tuna market is the discussion on the risk or benefits of fish consumption. As many interests, including business interests, are involved, the discussion will continue at various levels. The consumer, as usual, will have difficulty to keep abreast of the issues. The normal reaction in this type of situation is to refrain completely from consumption. Since some years now, tuna consumption in the USA is declining, in a climate of overall increase in seafood intake. The industry finds a difficulty in passing on the higher prices of raw material and fuel to the consumer, as demand is declining. As a result, many players find themselves in a difficult situation, and some will have to get out of business. The National Fisheries Institute (NFI) and the US. Tuna Foundation (USTF) announced on 15.3.2007 the merger of the two organizations. The combined organization will strengthen the seafood community's ability to educate Americans about the health benefits of seafood. As one of the most popular fish enjoyed in the USA, tuna contributes to growth of the seafood category. The proteins, vitamins and omega-3 fatty acids packed in tuna contribute to heart health and brain development throughout life, claims the newly formed organization. Tuna companies look forward to working with partners in the seafood community to educate the public about the value of fish to every person's healthy diet. This merger will help to promote tuna in the diet or at least to counterbalance bad publicity. |
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