US canned tuna market bleak The US canned tuna market is seeing a continuation of the trend already set during the past two-three years: declining consumption and demand, and no possibilities to revive the market. Recent activities to inform the consumer about the real health risks of mercury in canned tuna seem not to have had any major impact on the average US consumer. Despite high raw material prices, canned tuna prices have not increased, as limited demand does not leave many possibilities for price hikes.
Dolphin-safe: the never ending story The US government cannot alter standards for tuna sold under the 'dolphin-safe' label, a federal appeals court ruled in April 2007. This decision keeps intact the virtual ban on US imports of tuna caught by fleets from Mexico and other foreign nations that encircle dolphins with nets to catch the tuna that swim beneath them. The appeals court said current labelling standards will remain in place unless Congress changes the 1990 law, which had created the label. This seems to put a definitive halt to Mexican hopes of re-entering the US canned tuna market, by applying the standards of the International Dolphin Conservation Program established by the Inter-American Tropical Tuna Commission (IATTC)(1). (1) The Agreement on the International Dolphin Conservation Program, a legally-binding multi-lateral agreement which entered into force in February 1999, established this program, the successor to the 1992 Agreement on the Conservation of Dolphins (the La Jolla Agreement.) The IATTC provides the Secretariat for the program.
Thailand-USA free trade agreement under scrutiny The Thai-US free trade discussion is worrying several players on the US tuna market. On one hand, the American Samoa inhabitants see their jobs threatened by a duty free import of canned tuna from Thailand. But also all the other countries exporting canned tuna to the US market are scared by the impact of duty free canned tuna from Thailand on their products. This is especially felt in the Philippines, the number two supplier of canned tuna to the US market. The canned tuna industry is advocating that their government negotiates a duty free access to the US market for their product. If the Philippine government succeeds in convincing the US to scrap tuna tariffs, local producers can save US$ 2 for every US$ 25 worth of canned tuna, that is for almost each carton. Savings can be used for expansion, industry players said, while on the other hand, duty- free privileges for Thai tuna exported to the US would eventually kill the Philippine tuna industry. The tuna industry provides direct and indirect employment to at least 100 000 fisherfolk, labourers and factory workers. In 2006, canned tuna export receipts stood at US$ 174.3 million, with the greater part going to the EU and the US markets.
The Canadian Food Inspection Agency (CFIA) will no longer allow sales of high-mercury canned tuna in Canada. Five out of 60 cans of albacore tuna surpassed Canada’s guidelines for mercury in a review conducted by the government. CFIA then contacted Canadian tuna importers to ensure all incoming shipments of albacore canned tuna are put through tests. The US FDA was requested by the media to follow the same procedure. The non-canned tuna market in the USA remains an important outlet for Asian and Latin American exporters. After Japan, the USA has emerged as the second largest import market for fresh tuna and tuna products such as loins, saku, steaks and tuna cubes. In the first three months of 2007, imports of fresh/chilled tuna grew marginally to 6 500 tonnes against the previous year’s 6 400 tonnes. The market continues to absorb more locally caught bluefin due to the increased demand from local Japanese restaurants and to better prices compared to the export market (Japan). The majority of fresh tuna imported into the USA originates in Latin America, while among Asian countries only Viet Nam plays a major role. Fresh yellowfin is the main species used for sashimi in the US market, total imports in the first three months of 2007 were 4 500 tonnes, some 5% more than in the same period of 2006. Senegal emerged as an important supplier of this species.
Solomon Taiyo (Soltai), the only tuna cannery in the Solomon Islands, resumed production last year and is on a better note in 2007. Firstly, the company has completed extensive upgrading of its cannery, a vital effort to maintain its exports to Europe. Secondly, and most significant, the company has obtained the greenlight to export its canned tuna to the lucrative USA market. The approval by the US authorities allows Soltai products to be sold in US supermarkets under the label of TriMarine International Limited, with which Soltai has a commercial arrangement. With the facilities upgraded the company expects to increase its domestic sales to US$ 211 000 and exports to US$ 5 million per month of its canned tuna catering packs and tuna loins. For the time being, the country managed to export some 600 tonnes of frozen skipjack to the US market, but no canned tuna yet.
The tuna pouch segment is the main growth area for US tuna imports, though compared to canned tuna, this segment is still rather marginal. In the first three months of 2007, some 10 300 tonnes were imported, some 6% more than in the same period of 2006. Thailand continues to be the main supplier of this product, but it is Ecuador that experiences the highest growth. The country thus takes advantage from the duty free status of tuna pouches in the US market, while canned tuna is excluded from this agreement. It has to be seen, how the recent break up of free trade negotiations between the USA and Ecuador will influence the duty free status of certain products from Ecuador on the US market.
The imports of tuna as raw material for canneries in the USA continue to decline, as an obvious result of the closure of canneries. In the first three months of 2007, total imports of tuna raw material were 14 400 tonnes, slightly below the corresponding 2006 amount. US canned tuna imports will continue to decline Consumption of canned tuna in the USA is going down. Official consumption figures for 2005 were released very late, but show that tuna consumption is on a continuous decline. As we have seen, fresh tuna imports increased so that canned tuna is the product mainly hit by lower consumption. In 2005, tuna consumption in the USA was 3.1 lb per person, which compares to 3.3 in 2004 and to a peak in 1989 of 3.9 lb. It is interesting to note that this year (1989) marked the start of the dolphin safe campaign, probably not a coincidence. In 2006, canned tuna consumption further declined. Normally the beginning of the year represents the main period for imports, as the reduced duty is applied from 1 January until the 6% duty quota is filled. It is thus very indicative for the whole of 2007, that imports during the first three months were 13% short of the corresponding 2006 imports. This leads to a forecast of not more than 145 000 tonnes of canned tuna imports for the whole of 2007.
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