Lower tuna catches for all species Yellowfin catches have been disappointing around the Eastern Indian and Western Pacific fishing grounds over the past year. Prices of yellowfin went up substantially, in the course of 2006. Skipjack prices weakened in the course of 2006 to US$ 885 per tonne, however in the opening months of 2007, lower landings sent prices through the roof to an all time high of US$ 1 075 per tonne. Less canned tuna production in EU The long term decline in French tuna imports, to be used as raw material for tuna canneries, is in line with the gradual closure of canning factories. Total imports in 2006 were 20% lower than the imports during 2005. Surprisingly whole tuna imports increased slightly during the period, while loin imports declined. The few remaining French canneries are thus concentrating on high quality products, for the upper end of the price scale. However, still 60% of total tuna imports into France are tuna loins. Tuna raw material into Italy showed a positive trend since 2005, which continued into 2006. Some 56 000 tonnes of tuna were imported into Italy, somewhat ahead of the same period of 2005. Tuna loins expanded to 43 000 tonnes, thus accounting for 73% of total tuna imports, compared to 66% in 2005 and 47% in 1999. Cheaper labour costs make it more convenient to buy from those countries that have 0% tariff for tuna loin’s exports to the EU, such as the Andean Community countries.
The traditional and high quality tuna canneries in Spain have been resisting the use of tuna loins for processing for years. But now also this industry has to obey the rules of the market, where labour costs reduction is the main theme. As already mentioned on several occasions, Spanish companies are opening up factories in Central American or Andean Community countries, to produce tuna loins, but also canned tuna, for the Spanish market. The impact of this move is already apparent in the present import statistics, but more of it will come in the coming years. One indication is the abolition of the tariff free quota for Andean community and Central American countries, which had been strongly advocated by the Spanish industry for many years, and was abolished without huge discussion at the beginning of 2006. At present tuna loins account for 40% of total tuna imports for Spanish tuna canneries, while this figure was only 8% back in 2002. Tuna loin imports into Spain reached 37 500 tonnes in 2006, 5% more than in 2005. Ecuador, where many Spanish canners have invested, is the main supplier of this product to the Spanish market.
EU canned tuna market expanding Most canned tuna importing countries in the EU expanded slightly their purchases of canned tuna during 2006. Main supplying countries continued to be those countries where European producers have their canneries. 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.
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 alone accounts for 20% of this. UK imports are more or less stable at 132 000 tonnes per year. The main suppliers are those countries where UK canned fish brands 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 in imports 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 from a period of problems with quality control. 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 in 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, is still the main supplier of canned tuna to the German market, with one quarter of total imports. Strong demand in Europe Demand in the EU market is rather strong, and some of the cost increases have been passed on to the consumers. However, further increases in prices will be matched by consumer resistance. The EU canneries will continue to invest in low cost labour countries. China and Viet Nam are good candidates as newcomers in the tuna canning business. Tariffs for exports into the EU are relatively low for these countries, but might return to 24% in the near future. The EU tuna industry is not willing to accept reduced tariffs for developing countries with low labour costs. |
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