Apr / May / Jun 2000 Archive

USdollar - Euro rate remains a problem   Europe, Apr 04, 00
The strength of the USdollar towards the EURO, continues to be a burden for those trying to sell tuna bought in dollars. With the Euro being 0.958 USdollar (march 29th), distributors who usually do not cover their currency   ahead of time the buying decisions for new future tuna contracts. If buyers convert their USdollar (original) buying price for their today's sales price in EURO, their sales prices in the local currency will be at least 10% higher compared to December 1999. If prices are calculated at actual replacement levels we see a rise of as much as 25% compared to EURO prices in November/ December 1999. This partly explains why most European importers continue to bid at very low prices, in case they would be interested to buy at all. U.K. importers who sell in GBP - which is not part of the EMU - are not so much effected by this trend. because GBP and US$ move pretty much in line with eachother.

Holy week 17- 21 April in Philippines Philippines, Apr 5, 00
The catholic holy week festivities from 17st-21st April will cause many packers to shut down their plants entirely. With demand being almost dead, packers prefer to allow their staff to have an extended vacation spent with their families, instead of continuing production.

Fish prices take a nose dive Philippines, Apr 06, 00
In the last week frozen skipjack prices for skipjack 1.8kg have really taken a sharp nose dive. By the end of last week prices had started to weaken but by the beginning of this week prices moved dramatically to the  level between US$ 550 and US$ 580 landed,for good size fish. The sharp decline has been caused by the glut in prices in Bangkok, combined with a total lack of demand from domestic  packers for raw skipjack. Fisherman are reporting normal catches, but point out the very weak demand forces them to lower their prices.

Price drop ends stand-off Philippines, Apr 06, 00
The drop of the tuna price in General Santos puts an end to the situation in which one fishing company was holding abt 2000 m/t stock in cold storage, and others keeping fish in on board freezers,  unwilling to unload and demanding prices around the US$ 700 - 680 level.  With lower prices in the market this volume will obviously be put on the market soon, which may possibly cause an even further decline on the already very low prices for raw fish. Now that the fishing company wants to unload against reduced prices there are no takers in the market.

San Miguel might buy into Dole Philippines, Apr 06, 00
With discussion still continuing  between First Dominion prime Holdings (First Dom), the major Philippine tuna producer , and the Beer Company San Miquel Corporation, it was confirmed that San Miguel is also eyeing Dole. Although San Miguel released a statement at The Philippine stock exchange that no definitive matters could yet be disclosed, it seems obvious that it is interested in a stake in the fruit and vegetable producer Dole Food Co. Reports say that San Miguel was ready to make a tender offer to other Dole Shareholders in a deal that could cost San Miguel $800 million to $1 billion. The beer company has cash reserves of close to $ 1 billion after a series of divestments in 1998, but it had not yet made any final major investments. This keeps on feeding speculations also towards the First Dom tuna group. In terms of exports and logistic channels the combination of canned pineapple and tuna could be provide an interesting perspective.

Germany 1999 canned tuna imports up by 27% Europe, Apr 06, 00
1999 import statistics show almost historic increase in canned tuna imports into germany. The total imports went up from 6.1 million cases to 7.8 million cases, converted to 48x 6,5oz. This incredible increase of 1.7 million cases was mainly caused by a boost in exports from Turkey. Turkey which has no tuna catches itself, and entirely depends on the import of frozen fish from E.U. vessels, increased its exports by 250% ! The volume surged from 500.000 cases in 1998 to almost 1.3 million cases in 1999. Most of this was retail pack. Also the french tuna companies have increased their imports heavily, the french went from 750.000 cases to 1.02 million. Ivory coast moved from almost nothing to 330.000 cases. These figures clearly show that the influence of ACP (no duty) suppliers especially in the retail business has become dominant. It is remarkable however that Philippines kept the lead with exports of almost 2 million cases to the german market. Most of this is foodservice size, and Phlippines has proven that through specialisation on 66,5oz pack it can still withstand competition despite its 24% duty.

Increased imports due to low prices Europe, Apr 06, 00
One of the major reasons why Germany showed such an enormous  27% increase, is not that consumption has risen shraply, but can be found more in the speculative character of this market. Although consumption certainly went up due to the historically low prices,  most of the extra volume is the result of specualtive buying by importers and the build up of stocks by retail chains. This largely explains why the german market is now facing an oversupply situation, and why storages are still full. The questions is when these volumes, which were brought in mostly towards the end of 1999, will be absorbed, and what the effect will be on the 2000 imports. In general the expectation is that 2000 will show a figure which will be close to or even below the 1998 figure, which would indicate a fall in volume by abt 30-35% !! compared to the 1999 data. One wonders if this increased demand has not psuhed up raw material prices in the Philippines, what will be the effect this year when imports will drop ?

Spanish fishing activity pushes supply up Ecuador, Apr 06, 00
The catching activities of Spanish vessels, of which some are flying the flag of Middle American countries not associated to the IATTC, have been responsible for a lot of extra volume of tuna being caught in the Eastern Pacific Ocean. These are all quite big boats with over 1000 M/T of capacity, and one even measures 2500 ton, part of Spain's largest purse seiner fishing company. Partly due to the arrival of abt 14 Spanish owned vessel in 1999, the catch of the Eastern Pacific for all species went up by about 42%. The fact that many of these boats do not comply with the rules of the IATTC and carry no observers on board, makes it very hard to control the volume, species and by-catch they catch. With demand being dull as it is,  and with such 2500 ton vessel coming in completely full, the effect on the price can be quite disastrous. Some blame therefore the recent drop in world skipjack prices partly on the uncontrollable fishing activity of these boats. Of course favorable catching conditions in the Eastern Pacific for both yellowfin and skipjack also play a very important role.

Packers slowing down Indonesia, Apr 06, 00
The depression in the tuna market has resulted in at least one major canned albacore packer in Java to shut down for at least 1-2 weeks. Also the largest factory in Bitung has cut its capacity to a minimum.  The lack of orders is an important reason. In Bitung there seems to come some improvement in the raw material supply now at least one major Philippine fishing company has started to unload fish. This will create a better situation then in the last month, when packers had to compete fiercely with the local market in order to obtain fish. Lack of demand in the Philippines for frozen skipjack seems to have helped Bitung.

Thai trawlers intrude Indonesian waters Indonesia, Apr 06, 00
The Indonesian media has been focussing quite some attention on the presence of Thai trawlers in Indonesian waters. These trawlers are accused of fishing illegally in the Java and Maduro Seas without the proper licenses, and flying the Indonesian flag. The fishing activity of these vessels, with over 1000 m/t of capacity, seem to have had a devastating impact on the fish stocks available to local fishing communities. The lenient role of the Indonesian Navy in this matter is being seriously questioned and some violent demonstrations in some coastal areas have been reported.

Albacore packers consider import Indonesia, Apr 06, 00
The Albacore season has still not started in Indonesia, and further delays in the supply are expected. The supply is so problematic that traditional Albacore packers are seriously considering to import frozen whole albacore (white tuna) at prices as high as US$ 2450 p. M/T in order to honor their early contracts for April / May deliveries. The expectation is that we might see a late and long albacore season from April till August. The depressed supply of Albacore has already led to price increases over the last month.

Yellowfin supply limited Indonesia, Apr 06, 00
Although prices for yellowfin remain well over US$ 900 p.M/T and the supply remains limited there is still enough demand for Food service sizes from Japan and the States. Prices are abt US$ 4 - 7 higher per case of 6 x 66,5oz  compared to skipjack.

Tongol good demand Indonesia, Apr 06, 00
Considering that we are currently in the low season for Tongol tuna, the supply is in balance with the present demand from the States. Prices for canned Tongol food service size are generally 10% -15% higher then yellowfin prices.

Skipjack on way down again to US$ 550 Thailand, Apr 06, 00
Despite efforts of frozen tuna traders and fisherman to keep the skipjack prices at a higher level , the price of frozen whole skipjack has plunged. By the beginning of this week deals had been made at a level as low as US$ 550, and packers were even trying to bid lower.  One of the main reasons for this sharp fall, is likely the reaction of traders on the total lack of interest of packers to place any orders. Catches are reported to be steady in about all oceans. With the Thai New Year coming up, there will also be very limited production activity this month, and traders decided to release their positions at lower levels, due to the lack of any outlook on a short term improvement of demand. Fears over a further decline due to very low offers from the Eastern Pacific even worsened things. Sources say that some packers might still have frozen tuna stocks to cover two months of their production, so their buying interest will remain limited, even at this level.

TUM and CMC shut down till after Thai New year Thailand, Apr 06, 00
At least two major packers in Thailand have shut down their production due to the continuing lack of orders. Sources say that both factories have stopped their production during the first days of April and send their staff on leave until the Thai new Year ( 12 -16 April) festivities have ended. Problems with exports to the Middle East over an G.M.O issue, and a total lack of orders from Europe and the States have created a major problem for the Thai canned tuna industry.

Skipjack on way down again to US$ 550 Thailand, Apr 07, 00
Despite efforts of frozen tuna traders and fisherman to keep the skipjack prices at a higher level , the price of frozen whole skipjack has plunged. By the beginning of this week deals had been made at a level as low as US$ 550, and packers were even trying to bid lower.  One of the main reasons for this sharp fall, is likely the reaction of traders on the total lack of interest of packers to place any orders. Catches are reported to be steady in about all oceans. With the Thai New Year coming up, there will also be very limited production activity this month, and traders decided to release their positions at lower levels, due to the lack of any outlook on a short term improvement of demand. Fears over a further decline due to very low offers from the Eastern Pacific even worsened things. Sources say that some packers might still have frozen tuna stocks to cover two months of their production, so their buying interest will remain limited, even at this level.

TUM and CMC shut down till after Thai New year Thailand, Apr 07, 00
At least two major packers in Thailand have shut down their production due to the continuing lack of orders. Sources say that both factories have stopped their production during the first days of April and send their staff on leave until the Thai new Year ( 12 -16 April) festivities have ended. Problems with exports to the Middle East over an G.M.O issue, and a total lack of orders from Europe and the States have created a major problem for the Thai canned tuna industry.

Saupiquet continues losing money Europe, Apr 07,00
Saupiquet, the french canned tuna market leader has reported again a considerable los in 1999. Although losses were cut by almost 75% down to 16 million Euro, the group continious to have a hard time. As a result of declining tuna prices 1999 turnover went down by 6% to 279 million Euro. The take-over Of Saupiquet by Trinity Alimentari from Italy has raised the hope for improvement. Trinity is now the leading European tuna canner, with also its brand Rio Mare in Italy.Raw material decline takes importers by suprise Apr 06, 00
Although many European canned tuna importers have been experiencing slow tuna sales during the last month, most had not really anticipated a sharp decline of the raw skipjack back to a level below US$ 600. It looks like those importers who had shown some confidence in rising prices,and bought recently, will take another beating, with prices declining at origin as much as 5-10% for finished skipjack product within the week. The fear is rising that we might see again prices below the US$ 500 level, which would give packers who have taken long positions hardly any oppurtunity for profits. The positive effect might be that end-buyers who were holding back so far, might find these new prices much more attractive, which will hopefully lead to increased buying activity.

Jealsa forms joint-venture with Star  Europe, Apr 10, 00
The Spanish canned tuna producer Jealsa, Jesus Alonso S.A., which markets the brands Rianxeira, Jealsa and Lucky, and is one of the top 3 spanish canners, announced a new joint venture with Star the Italian Tuna brand. The aim of the new jointventure is to sell up to abt 50 million Euro of canned tuna product packed in Spain into the lucrative Italian market. Jealsa increased its turnover again in 1999 with a 3% rise to 186 million Euro.

Mexico says It won't be able to export USA, Apr 16,00
Although the U.S. last week    lifted the the embargo on tuna from Mexico, the Mexicans are not likely to start exporting tuna to the States. The recent ruling on the "dolphin-safe" logo use on Mexican tuna caught by purse seiners setting on dolphins, makes any marketing and sales activity useless.  As long as the dolphin-safe logo cannot be used there will be no interest from consumers or distributors in buying the product. But there might be more bad weather on the way for the Mexicans. Some of the same environmental groups that have challenged the label change, have now also sued in the Court of International Trade in New York to preserve the embargo against Mexico. The suit contends that Mexico has not fully complied with U.S. regulations intended to reduce dolphin deaths. The court has heard the arguments last Wednesday but has not yet ruled.

E.U. aiming at Central European Food Authority Europe, Apr 25, 00
The Internal Market Commissioner Frits Bolkestein said recently  that improved consumer information on food safety is a prerequisite for the efficient functioning of the Internal Market. He told a Lisbon Conference on Europe and food safety that the Commission's White Paper on Food Safety established a framework for a radical, comprehensive and integrated approach to improved food safety with an emphasis, through the creation of a European Food Authority, on labelling, information and communication. "No contradiction exists between the free movement of goods, which is on of the central achievements of the Single Market, and food safety," he said, "by enhancing the level of food quality and food safety, our Union will further increase its position on the international markets". The Internal Market has given the food industry sector access to a market of 370 million consumers and contributes some Euro 660 billion a year to the economy of the European Union. It is also the EU's largest industrial employer with more than 2.6 million employees.

Inmarsat installs 50.000th vessel satellite system  Europe, Apr 25, 00
Inmarsat, a leading provider of satellite communications services, announced that its 50,000th maritime Inmarsat-C satellite system has now been installed. First introduced in 1999, the Inmarsat-C maritime terminal now forms the world's largest population of global mobile satellite-based communication systems at sea. The most recent installation was on the Australian tuna vessel Teepookana. This milestone also positions Inmarsat as the world's largest provider of mobile Internet e-mail terminals, satellite distress and safety systems and commercial messaging terminals to the maritime industry. Inmarsat-C terminals supplies low-cost units small enough to be fitted to any vessel. They offer two-way, data or message-based communication up to 32kbytes in length from almost anywhere in the world. Inmarsat-C can also be programmed to receive broadcasts through SafetyNET, which provides port authorities with a fast and efficient means of transmitting maritime safety information to vessels at sea, and FleetNET, which allows information to be sent to a virtually unlimited number of mobile terminals simultaneously at a very low cost.
Inmarsat services include:

Italian Food poisoning not caused by canned Tuna Europe, May 1, 00
A recent unusual  outbreak of food poisoning, caused by the eating contaminated tuna / corn salad served in Italy,  caused more than 1,500 people( mostly school children) to develop high fevers and diarrhea. Initially the victims suspected the canned tuna ingredient to be the cause of the poisoning. Tests revealed however that the outbreak was caused by Listeria moncytogenes, a bacterium that is not thought to commonly cause disease in healthy individuals. The bacteria, which usually contaminate meat products, can cause miscarriage and stillbirth in pregnant women, and serious, sometime fatal infections in infants, the elderly, and the immunocompromised, according to a report in the April 27th issue of The New England Journal of Medicine.

Indonesia offers 10,000 islands for lease Indonesia, May 03, 00
There might be some new opportunities for fishing companies operating in the Indonesian waters. Recently it was announced that the Indonesian government is planning to lease out on a 35 years term a total  of 10,000 un-habited islands of the archipelago. Interested parties could use these islands as a base for their own fleet of tuna fishing vessels. The government would also grant leasers the benefit of an economic free zone. Possibly this option could also provide interesting possibilities for the processing industry.

Inglenook changes name to Clearwater Tuna Philippines, May 07, 00
The Inglenook Foods Corporation, part of the First Dominion Prime Holdings Inc. (the largest tuna producer in the Philippines) has recently acquired a new business name. The factory located in Manila will now be known as Clearwater Tuna Corporation, and will concentrate itself on the production of canned tuna, as well as tuna products like frozen loins and canned pet food. The ownership structure will remain unchanged.

Limited tuna demand troubles vessel owners Ecuador, May 07, 00
Although there are reports from Ecuador that skipjack catches during the last month reduced by about 25%, there is still enough supply to the tuna industry in Ecuador. Vessel owners bringing in skipjack are currently facing a situation where there are limited possibilities to discharge their raw material, although catching volumes are reduced.  Tuna packers prefer to discharge their own boats first, and are not accepting supply from their basic suppliers. This has been creating pressure to sell with vessel owners, who are currently demanding abt US$ 450 M/T landed. The packers who mostly concentrate on loining for the Spanish canned tuna industry, and exports of canned tuna to the S-American and E.U. markets are faced with a stagnation in demand. Some of them are over-stocked, have a order book which is not full, and feel also quite insecure about the future price development of the raw material. Almost all factories are running 1 shift per day, or even at reduced capacity.
The dramatic condition which the tuna industry in Ecuador is facing, has been the reason for a a special meeting scheduled between government officials, tuna packers and fishermen. The goal of this meeting will be to analyze the past year and the current situation, and to look together for solutions to improve the domestic situation. 

Strong U.S dollar wipes out the advantages of low tuna prices   Europe, May 08, 00
With the Euro continuously weakening over the last 2 weeks against the U.S dollar, European buyers are not really seeing the benefits of the recent drop in tuna prices in their sales prices. The Euro has passed last week its third psychological barrier of 0,90 towards the dollar, when it dropped to 0,89.  Although the prices offered CF Europe - U.S. dollar basis are lower then ever in the last 25 years, the dollar has  increased its value between 8-10% towards the Euro in the recent weeks. Due to this effect retailers, caterers and food processors are not so anxious to buy. Although there is a general acceptance in the market that tuna is at its cheapest, uncertainty about the future trend of the Euro- US dollar exchange rates makes some buyers hold back and take a wait-n-see position, awaiting possible moves by the Euro Bank to boost the Euro by increasing interest rates. However by most the expectation lives that the dollar is likely to continue it's rise or to maintain it's current position for at least another two months. So there can still be quite some buying activity  expected from the European market.

Domestic Indonesian offers remain high Indonesia May 08, 00
The price being offered by the domestic fishermen for skipjack canning grade is currently about US$ 550 to 580 p. M/T landed basis. A slight devaluation of the Rupiah to 1 US$=7950 Rupiah does provide enough support for the Indonesian boat owners in their competition with Taiwanese firms. Currently Taiwanese traders are currently offering at US$ 400 CIF Indonesian port for frozen whole skipjack. The declining price trend and the fact that Indonesian processors have lost the last two weeks quite some orders for the U.S market to their Thai competitors, make packers hesitant to buy larger volumes of frozen skipjack now even though some offers are quite attractive. Due to the very limited demand and extremely low price levels several small and middle size factories are seriously considering to discontinue their production until the situation stabilizes.

Ecuador-E.U.  banana dispute could affect tuna Ecuador, May 09, 00
Ecuador said Friday it will ask the World Trade Organization for authorization to impose sanctions against the European Union for its rules on banana imports. The EU has lost a series of cases in the WTO over its banana import rules, which favor imports from its former colonies in Africa and the Caribbean over bananas from Latin American producers and their U.S. exporters. The United States is already imposing $191.2 million in sanctions each year against the European Union in the same dispute. The World Trade Organization last month approved a report which said Ecuador was losing $201.6 million a year because of the EU banana regime and effectively gave the South American nation the green light to retaliate. However, Ecuador did not immediately ask for WTO approval to apply the sanctions, saying it would give the EU ``a brief waiting period.''On Friday, Ecuador's Foreign Minister Heinz Moeller told reporters after speaking with EU Trade Commissioner Pascal Lamy that his country would pursue the sanctions. Ecuador, the world's largest banana producer, has said it may seek to impose sanctions by suspending agreements on ``intellectual property'' - covering areas such as copyright, patents and performance rights.
If Ecuador would indeed impose sanctions against the E.U. then this could possibly have a draw-back effect towards the export of tuna products from Ecuador to Europe. Currently Ecuador enjoys a duty free ACP status, on all tuna exports to the community.  Ecuador Exports to EU Jan-Aug 99

Katsuo boshi demand pushes skipjack up  Philippines, May 16, 00
Activity from Japanese buyers on high quality skipjack for the Japanese "katsuo boshi" market has changed the market mood in the Philippines. With demand from Japan rising fish catchers are gaining confidence that at last tuna prices will recover. The last week the lowest raw material prices for skipjack were in the US$ 420-430 range, however it is reported that the quality of this fish, make it unfit for production for the U.S.A. market. Several vessels have been unloading last week in General Santos part as a result of buying activity by tuna canners, part for storage of fish by fisherman in coldstorages awaiting higher prices. One of the countries main fishing companies has said not to be interested to sell below US$ 550 per ton for skipjack 1.8kg up. This quotation is most likely driven by the increased Japanese interest.

New Tuna cannery established on South-Java coast Indonesia May 18, 00
A Thai Tuna packer and a Taiwanese company are named as the main shareholders of a new canned tuna plant established on the South coast of the Indonesian island of Java. The factory which is located close to the small city of Cilacap, close to the a river delta, is the first canned tuna plant in this area. The plant is in the process of finishing it's trail stages, and intends to start actual production for export within this month. The plant is equipped with it's own can making facilities and has a daily production capacity of 100 m/t of raw tuna in one shift. It is expected that it will mainly concentrate itself on the export of skipjack and yellowfin retail tuna to the U.S market. Their is quite a good skipjack re-source south of Java, and due to it's location and the harbor close-by the factory will possibly have a good access to raw material resources.

Thai Union 1999 profits up by 46% Thailand, May 19, 00
Thai Union now the second largest canned tuna producer in the world, and located in Thailand reported over 1999 profits of US$ 46 million. This is a gain of 46% over the the previous year. According to TUM this gain in profit was primarily created by their buying of a rival producer in 1998. The total sales were at US$ 514 million, which was down by 13% compared to the last year. Despite this decline in sales the group was able to generate a profit margin of 9% over their 1999 turnover. It looks like TUM was able to benefit strongly from the sharp decline in raw material tuna prices in the 4rd quarter of 1999, when frozen skipjack prices fell from US$ 1200 to as low as US$ 500 p. M/T. This might have had a negative effect on their turnover, but it looks like their portfolio with long term forward contracts will certainly have contributed them, when the market declined sharply.
Of the total sales volume, 52% is generated by their canned tuna business, 20% frozen shrimps and the remainder is made up of pet food, and other sorts of canned seafood. Their export sales to Europe take 12%, U.S sales are at 37% (they own the U.S Chicken of Sea brand), Japan 24%, other smaller markets account for the balance.

Japanese traders demand $500 for skipjack Thailand, May 22, 00
Following the increased demand from the Japanese market for skipjack to be used for "katsuo boshi". The major Japanese raw material traders have now moved up their prices for whole round frozen skipjack to US$ 500. Taiwanese and American traders are however are reported still to be offering at a level of US$ 450 per M/T. It is not clear what volumes have been traded around the US$ 400 level and which long positions packers have taken on their frozen skipjack. It is however likely that the big packers have made their move and are waiting for prices to go up. If Japanese traders will get their US$ 500 p. M/T, will largely depend on the increased demand from the various export markets for the Thai tuna industry. So far the overseas market are still weak, although their has been quite some buying activity during the last 2-3 weeks. Catches of skipjack are still reported to be normal, although with the up-coming monsoon season in Western Pacific it is expected that catching volumes may drop. This follows the yearly seasonal trend.

Monsoon starts in Philippines with typhoon Philippines, May 22, 00
Last week we saw the start of the Monsoon season in the Philippines when a strong typhoon hit Manila and caused quite some damages and several deaths. Metro Manila was flooded, causing quite some inconvenience in the capital. The monsoon season, which generally lasts from beginning of June up to October, means that fishing conditions become a lot harder to the those fishing in the Western Pacific ocean. Although fishing activity has not been affected yet, it is expected that, as usual, the catching volumes will reduce considerably within the next two months. At this moment there is quite a difference in the prices being offered by the various fleet owners. Those whose quality raw material meets Japanese "katsuo boshi" standards are demanding currently between US$ 500 and even as high as US$550. However it is reported that one major operator, is selling lower grade skipjack raw material still at levels around US$ 425 landed. This fish will likely be exported as canned product to markets with lower quality standards.

Price battle between ACP countries on retail packs Europe, May 23, 00
At this moment the West-European market is the battle field for canned tuna suppliers from Africa, S- America and Turkey. ACP (Africa, Caribbean Pacific) suppliers from Africa, S-America, and Turkey enjoy a preferential duty of 0% in the E.U. compared to Thailand, Indonesia and Philippines who are subject to 24% duty. In the on-going price war on retail packs, the prices are lower then ever. Some suppliers are going to the extremes in order to book orders even as far as December 2000 shipment. One of their motivations to do this, even though the current prices do not provide them any profit to them at all, is to create at least some contribution to their fixed costs. The fact that some producers have missed orders at an earlier stage this year and produced much lower volumes then previous years, is not helping either. Knowing that most buyers will try to cover within May for shipments up to as far as October/November 2000, packers do not want to be stuck with an empty order book. This situation has created excellent opportunities for especially super market buyers, who have booked at prices they have never paid before.

World tuna catch near max. sustainable level Thailand, May 25, 00
At the World Tuna Conference currently held in Bangkok, Dr. James Joseph, Director of the IATTC, and a very respected scientist on tuna, announced that currently available data shows that the maximum sustainable global catching level of 3.5 million tons of tuna has almost been reached in 1998. In 1997 Dr. Joseph told the Conference then, that the  reached level was at 3.0 million tons and that scientists believed that there was space for a controlled increase in catch up to 3.5 million tons. Due to the increase in the catch of skipjack by almost 150.000 tons in 1998, in the Pacific ocean (East + West combined), from 1.6 million tons, the tuna market suffered an over-supply of skipjack which can now be seen as the trigger of the price decline, which still in 2000 persists. According to Dr. Joseph the skipjack stocks in the Pacific ocean ( which holds about 65% of the world tuna resource) could still probably sustain a growth of 200.000 tons more, before it would reach it's maximum level.

German tuna market extremely depressed   Europe, June 05, 00
An over supply of canned tuna to the German market has caused an extremely difficult situation for German importers. With prices for canned tuna catering pack in oil falling down below US$ 15,00 CF Hamburg many importers are hurt. While several importers carried an excessively high stock level of Foodservice canned tuna at an average price over US$ 15,50, others have started offering to small wholesalers 1 container load deals at US$ 14,75 CF level, with payment term of 30 days from delivery. Basically this means that the sales price to the wholesaler (which should include the importers margin and overheads), is below the current level being offered from Philippines for the same product for prompt shipment. This very low price-level is not fueled by speculation on further price decline, but merely caused by the excessive stock levels. One of the major importers in Germany, is desperately trying to sell off his stocks of canned tuna, almost at any price, in order to create liquidity. His high stock position has been the result of large unsuccessful speculations. It has even been reported that this importer recently managed to get agreement on a wash-out of containers he booked at a level of US$ 17,50 CF Hamburg for catering tuna in oil. With this kind of market climate there is no space for any earning by importers, and makes them extremely reluctant to take further positions, not knowing how far their desperate colleagues are willing to dump the price.

Skipjack stable at US$ 430 m/t Thailand, June 06, 00
The skipjack market in Bangkok is currently very quiet. After the World Tuna Conference held two weeks ago in Bangkok, there has been no real movement in the skipjack price. Only limited volume trade was reported between some canned tuna processors in the South of Thailand and a Korean fishing company. The volume traded was abt 4000 M/T at a price between US$ 420-430 CF BKK level. There is still limited buying interest at this very moment from U.S.A and Europe for finished product. This has motivated one major packer to close a very low priced volume deal for the USA, in order to move out raw material inventory and to create more liquidity. These low priced deals have not given canned tuna buyers from Europe and the USA more confidence in taking on new commitments. On the other hand the monsoon season might lead to some slight increase in prices, with reports that at this moment catches in the Western Pacific are already edging off, and that fishing companies are slowing down their activities due to the extremely low price level, which is well below their costs.

U.S tuna consumption shrinking   USA, June 15, 00
The canned tuna consumption in the States has continued to shrink during the last 8 years. While in Europe the canned tuna consumption has been rising abt 4% annually, the American consumer consumed in 1999 6,3% less then in 1992. This annual decline at a 0,9% rate has been caused by a number of factors: one is the limited promotion given by the national brands Starkist, Bumble Bee and Chicken of Sea to their products. Another is the fact that the industry has not been able to provide new forms of convincing the consumer to use tuna for other usage then for lunch or sandwiches. A lack of innovation, while at the same time other competing products such as chicken, pork and beef did innovate. According to many critics the third and may be most important reason for the dramatic decline is the quality of the end product. Pushed by a relentless pricewar, U.S.A leading tuna brands over the last decade consistently lowered the retail tin size from 7 oz to eventually 6 oz, also introduced the use of additives such as hydro proteins and vegetable broth, moved from solid packs to chunks packs with higher flake levels. The result has been a product with a very nice color, a slightly watery taste, but with less bite. While there remains a debate of what really is the main cause of decline in the U.S.A consumption, it is clear that action is required by the U.S. canned tuna brands to revive the consumption of this healthy and natural product to protect their business interests.

Star-Kist/Heinz conquers UK - retail market Europe, June 06, 00
1999 has been the year of the Star-Kist/Heinz final invasion of the UK retail market. The American canned tuna leader, has increased its imports in the U.K from its two factories in Ghana and Seychelles from combined abt 1.1 million cartons to 3.6 million cartons in 1999. One of the main reasons for Star-Kist/Heinz to be able to reach such a massive growth was the acquisition of the U.K market leader John West from Unilever. This clearly supports the fact that Star-Kist/Heinz only way to penetrate the E.U market is by buying strong local brands. In the past Star-Kist/Heinz proved not be capable of penetrating the E.U market with it own Heinz label.
With the current import of 3.6 million cases (mostly retail pack) the Americans have taken a 35% share of the 10.6 million cases U.K market. This invasion has really hurt the Thai exports to the U.K which fell by abt 20% to 1.9 million cases. Other casualties were Turkey, Fiji, Maldives, Madagascar, and Senegal. This largely explains why these exporting ACP nations are so extremely aggressive now in other E.U markets, trying to create new outlets.
The reaction of the other major U.K canned tuna importer Princes Food is expressed in the increase of the imports from Mauritius in to the U.K. The factory in Mauritius (owned by Princes) geared up its production for the U.K from 578.000 cases in 1998 to 1.3 million in 1999. These figures makes one draw the obvious conclusion that the grip of both Heinz/John West and Princes on the English retail market has increased, together they hold more then 50% of all canned tuna imports !!

U.S '99 imports soar to 150.000 M/T  USA, June 14, 00
Imports of canned tuna  in brine(whitemeat +lightmeat) into the USA soared in 1999, from 109.000 M/T in 1998 to 151.700 M/T. This increase of about 50% has been caused by the drop in tuna prices in the last three months of 1999, which made the major brand leaders in the States decide to start co-packing agreements with several Thai tuna packers. The effect of these co-packing agreements is reflected in the increase in imports of canned tuna in brine in 1999 from Thailand. Thai packers produced in '99 75.000 M/T lightmeat, while average annual production bound for U.S since 1996 had been around 40.000 M/T.

It is obvious that such an increase in imports, when at the same time canned tuna consumption is hardly rising, has a dramatic impact on tuna prices. Not only brand leaders, but also other importers speculated on a rising market, by importing higher quantities of canned tuna (both retail and foodservice) by end of 1999 for the single duty. The result we know now... Due to an oversupply of canned product and a stagnation in demand, prices took another noose-dive during May of this year !

Wet market demand keeps tuna prices firm Indonesia, June 14, 00
Raw material prices for skipjack by the domestic suppliers remains in Indonesia higher then in the neighboring countries. The main reason lies in the steady demand from the domestic "wet"market, and also due to Japanese buying of fresh tuna for Sashimi, and Katsuo boshi. These markets are ready to pay higher prices than the USD 380 M/T and up for skipjack being quoted in markets such as Philippines. The result is that Indonesian canned tuna packers are loosing out in the competitive race with Thai and Philippine canned tuna suppliers for the U.S and European Food service market. Packers carry hardly any inventory in frozen fish and canned product, and are only ready to accept orders when they manage to make an earning and can secure the fish at competitive prices. The result is a significant drop in Indonesian canned tuna production over the last two months.

Germany main target of Turkish exports Europe, June 14, 00
The Turkish canned tuna producers have concentrated their exports during the first 8 months of 1999 almost entirely on the German market. Numbers released by Eurostat show that the Turkish producers have dramatically minimized their exports to the U.K. during the first 8 months of 1999 to 6364 cartons from 509000 cartons in total over 1998. However the exports to Germany were geared up to 855.909 cases (Jan-Aug '99) from 403.000 in total 1998. This is quite a remarkable change in strategy, which also shows how hard it is for certain canned tuna producers to develop a firm place in the market. The Turkish suppliers have a duty free (ACP) status in the E.U. provided they produce from tuna fish which originate from E.U. vessels. Most of their raw material comes from Spanish and French vessels fishing in the Indian ocean. Study detailed statistics >>>:Turkish export data to the E.U Jan-Aug 99.

Fishermen remain firm at US$ 380 for skipjack Philippines, June 14, 00
Prices for frozen skipjack 1.8kg average remain at the level of about US$ 400-380 landed General Santos. Although there has been quite some downward pressure by bidding from canned tuna packers, the fishing companies have remained firm on their prices on this level. In several cases bids have been accepted about two weeks ago at lower levels, but this was mostly for lower quality fish with small sizes. The reason for fisherman to remain firm is that the fresh catch has been quite slow, and demand for fresh fish has been strong. With prices in Bangkok also around US$ 400-up level, fisherman feel confident that prices should move slowly up, considering that catches are normal to slightly down.

Importers bidding down aggressively Philippines, June 16, 00
Importers from U.S. and E.U. are trying aggressively to bid down prices for foodservice packs from Philippines and Thailand. In order to meet these bids packers would have to buy frozen skipjack 1.8kg at prices of US$ 300-330 p. M/T landed. Since this is not feasible in the current market, packers are not accepting any orders at these levels. From both Europe and U.S.A. speculative bids are being made for shipments up to end of October from origin. Not only the fact that the lack of any earning potential make packers sit back, also the enormous risk that they are taking by accepting longer term orders. In case of a rising market, packers might run the risk of non-delivery of contracted fish, or re-negotiation by fisherman for higher levels. With the current historically low levels price levels there is absolutely no space left for packers to speculate on a possible further decline of raw material. So if they are not able to secure raw material in their coldstorage to cover their commitments, it means almost a sure loss to them on the longer term. Some of them rather to reduce production then to take irresponsible risks. Importers bidding at these levels are most likely anticipating a possible non-delivery or eventual delays at these ultra low levels. Their strategy may be to use these contracts for re-negotiation at a later stage.

E.U. trawlers accused of killing dolphins   Europe, June 16, 00
The U.K. government has pledged to act after fresh evidence that dolphins are being killed by intensive trawler methods.According to BBC2's Newsnight programme, U.K. Ministry of Agriculture scientists saw 12 dolphins killed in nine days when they watched trawlers fishing for sea bass. The trawlers fish in pairs using nets half-a-mile long and any dolphins accidentally caught up in the nets drown if they cannot escape in 20 minutes.According to the programme, hundreds of dead dolphins have been washed up on the coast of France which were believed to have been killed by the intensive trawling methods and there are reports of 50 of the mammals being killed in one day.
Speaking on Newsnight, U.K. Fisheries minister Elliot Morley there was now "breakthrough" evidence of dolphins being killed. He added: "What we have got as far as I am concerned is enough to take action and we intend to do that."But he also said and a further study was being carried out to find the extent of the problem and more information would be needed before they took it forward with the European Commission.
The Whale and Dolphin Conservation Society (WDCS) said evidence from this year's mortalities and the pattern of deaths over the past decade showed that the blame lay with trawlers taking their catch from the mid and upper waters of the ocean. Chris Stroud, chief executive officer for WDCS, said: "The government and the EU should act now to properly investigate pelagic (mid and upper-water) trawls and end this appalling death toll, or close the fisheries."

Shark finning ban for Hawaiian long-line tuna fleet  USA, June 16, 00
The U.S. House of representatives moved Tuesday to stop that practice of shark finning some 60,000 Pacific sharks every year, by voting 390-1 to ban shark finning in all U.S. federal waters extending 200 miles from American shorelines.
The measure, bill number is H.R. 3535., which still needs Senate consideration, is aimed at Hawaiian longline fishing boats engaged in the lucrative practice of harvesting fins for sale in Asian nations where shark's fin soup is a delicacy. The fins of blue shark that are a by-catch of tuna fishing are sliced off and the dead or dying fish, which are of little other commercial value, are then dumped overboard. Shark finning has been banned in the Atlantic and Gulf of Mexico since 1993, when the Commerce secretary, responding to evidence of serious shark overfishing in those waters, set rules for highly migratory fish such as swordfish and shark. But it's only been in the past decade, with a dramatic rise in Asian demand for shark fins, that attention has turned to the Pacific. The Ocean Wildlife Campaign, a coalition of conservation groups, says the number of sharks killed by Hawaiian longline fisheries climbed from 2,289 in 1991 to 60,857 in 1998, with 98 percent of the sharks killed for their fins. Dried shark fins are reportedly worth up to $40 a pound in Asian markets. Cunningham's bill would not ban the sale of fins, but would prohibit the landing or possession of fins in U.S. waters without the carcasses. That would effectively deter most fishermen who lack the storage capacity to transport the shark carcasses to shore.
The U.S Commerce Department's National Marine Fisheries Service has argued that shark finning is wasteful and should be stopped, but this idea has met resistance from the federal Western Pacific Regional Fishery Management Council, based in Honolulu, which says there is no evidence the blue shark population is being depleted. Sylvia Spalding, a council spokeswoman, said it recently adopted a plan to protect sharks that includes an annual quota of 50,000 for the Hawaiian longline fleet and severe limits on the catching of other shark varieties. The Hawaii state legislature recently approved a bill that would ban the landing of shark fins in Hawaii unless they are attached to the shark. The legislation awaits the governor's signature. ``We are concerned about sharks and I think we've taken a lot of precautionary measures,'' she said. She said most of the benefits of finning go not to fishing companies but to fishermen, who derive some 10 percent of their incomes from the practice. Russell Dunn of the Ocean Wildlife Campaign said no one really knows the health status of shark populations in the Pacific. ``But we have seen crashes of shark populations all around the world.'' Sharks, he said, are vulnerable to overfishing because they grow slowly and have few offspring.

Canned tuna #3 U.S. retail category  New York, June 19, 00
Within the U.S supermarkets canned tuna rates the third most consumed Food catergory in terms of dollar volume per foot of shelf space, after #1 sugar and #2 coffee.  Canned tuna is part of 37% of all seafood  eating occasions in the average american household. With an annual sales volume of more then US$ 1.5 billion tuna is a strong category, with much importance to the retailers. This importance is not due to the profit it provides ( tuna is usually used as a loss leader or promotional item), but caused by the sales traffic it generates within the store. 54% of all canned tuna in the States is sold with some sort of promotion, with an avarage price discount of no less then 31% !!! Selling canned tuna at rock bottom prices pays off...research into consumer buying patterns has shown that the average consumer without tuna in his shopping cart spends only US$30,92 per shopping trip. If the consumer does buy tuna, they have spend an average US$ 67.97 by the time they leave the store. And that when canned tuna costs currently less then US$ 0,75 a tin ! People who buy tuna will also buy lettuce, bread and mayonaise,...and more. Reason why retailers should keep tuna high on their lists !

FCF takes 12% indirect share in First Dom Philippines, June 19, 00
According to sources in the Philippines Taiwanese businessmen closely related to FCF, the major Taiwanese frozen tuna trader, have taken a 12% share into First Dominion Prime Holdings. First Dom is the major canned tuna producer of the Philippines, who has been also mentioned some months ago as a take-over target of San Miquel. Now that the San Miquel deal did not materialize the current shareholders of First Dom seem to be looking for new shareholders or partners. The 12% share was said to be sold at 300 million peso or abt $ 7.5 million dollars, however this was not re-confirmed.
An (indirect) alliance between FCF and First Dom, could possibly be of support to the group in gaining a better access to raw material, and especially the financial conditions on the delivery. For FCF it could provide a regular outlet for it's frozen tuna.

Starkist and ANGCO start PNG cooperation Philippines, June 20, 00
ANGCO the Papua New Guinea coffee company is said to be starting up a plant for the production of cooked frozen tuna loins at the coastal town of Wewak in PNG. The plant will have a production capacity of approx. 120 M/T per day maximum, and will be supplied by fish caught under PNG fishing licenses. It seems that the fishing licenses are currently held by a major Taiwanese trading house, which has signed an agreement to supply the skipjack and yellow to the plant. Sources say that Starkist has signed a buying agreement with ANGCO to take up an undisclosed quantity of finished product. These cooked frozen loins will then be shipped for processing to either Samoa or Puerto Rico. Producing frozen loins close to the fishing grounds give a great saving on transportation, compared to the costs of moving whole round fish from remote areas to canning facilities. Loining plants are basically much more simply equipped then canning plants, and also there are less problems on the supply of packaging materials and the related logistic infra-structure.

Skipjack no significant movement  Thailand, June 21, 00
Unconfirmed rumors say that all American and Korean tuna boats suspended their fishing activities in the Western Pacific, and have headed back to port due to the extremely low raw material prices and the lack of any outlook on improvement. It was also mentioned that Taiwanese have decided to stop fishing as well. About 10 Taiwanese boats have sailed for shore already. Despite this unconfirmed information, the market has not moved at all. Prices for whole round skipjack have remained steady at US$ 420-410 p. M/T for 1.5kg up.  It looks like fishing companies are now really starting to feel the impact of the enormous price crises. But considering the huge over-supply of frozen tuna around the globe, the fishing activity has to be reduced for at least 1-2 months, to have any real upward impact on the price of skipjack. The outlook for the next few weeks remains a stable market ! Supply is still greater then demand.

Starkist launches retail tuna pouch in U.S   USA, June 21, 00
StarKist Seafood last week introduced it's Tuna in a Pouch, a product that, according to Starkist, is expected to make a big splash with consumers this fall. The american brand leader claims vacuum-sealed foil pouch delivers firmer, fresher-tasting tuna with no draining. Unlike canned tuna, the easy-open pouch contains virtually no liquid. "StarKist Tuna in a Pouch is the biggest wave of innovation in tuna since StarKist pioneered canned tuna in the 1920s,'' said Don Binotto, managing director of StarKist Seafood, a unit of H.J. Heinz Company's Star-Kist Foods, Inc. ``We believe this fresh new idea will transform the tuna category and propel StarKist tuna consumption.''
Consumers who tested the pouch in home trials conducted by StarKist preferred the new product 5 to 1 over canned tuna. Consumers rated StarKist Tuna in a Pouch significantly higher in quality, fresh taste, texture, appearance and convenience. The product is fresher-tasting and firmer because shorter cooking and processing is required when tuna is packed in a pouch and vacuum sealed.
``Based on the strong consumer preference for our pouch, StarKist Seafood expects the pouch to expand the U.S. tuna category by 4 to 5 points over the next two years with this exciting product launch,'' Binotto said. ``We're confident StarKist Tuna in a Pouch will hook consumers and rejuvenate the category.''
The national product launch begins this September. Three 7-ounce varieties will be put into the market: Premium Albacore in water; Chunk Light Tuna in water; and Chunk Light Tuna in sunflower oil.. The suggested retail price is $1.99 for the chunk light varieties and $2.79 for the albacore. The 7-ounce pouch is aimed at families and provides enough tuna for four sandwiches.
"After introducing tuna in spring water and our dolphin-safe policy, StarKist is taking its commitment to quality and innovation to the next level,'' said Peter Bowen, president and chief operating officer of Star-Kist Foods. ``StarKist Tuna in a Pouch is going to make waves in the grocery aisle. It's tuna like consumers have never tasted before, in packaging that will change the way people think of, and use, tuna.''

StarKist tuna, the No. 1 brand of tuna, now holds a 45.1 percent U.S. market share for the current 52-week period, double its closest competitor Bumble Bee. The company plans to invest more than $20 million in a national advertising and marketing campaign to support the product launch, Bowen noted. The campaign will feature television commercials starring Charlie the Tuna, as well as print advertising, freestanding inserts and in-store promotions.`The new tuna pouches have a blue graphic design and feature Charlie the Tuna prominently on the front. On the back of the pouch, consumers will find  tuna recipes and nutritional information.

Impress acquires Starkist tuna can-making operations   Europe, June 22, 00
Impress Metal Packaging Holdings B.V. (``Impress''), a world leader in the metal packaging industry, today announced that it has entered into an agreement to acquire all of the H. J. Heinz Company  can-making assets in North America and form a global strategic relationship with Heinz.
Under the agreement, Impress would acquire and operate all five of Heinz's North American can-making operations. Together these five plants employ approximately 920 people. Impress expects to complete the acquisition in early August, 2000. Terms of the acquisition were not disclosed. The agreement remains subject to various conditions, including receipt of necessary consents, final negotiation of related agreements and financing. Under the terms of the strategic agreement, Impress will have an initial 10-year Supply Agreement for all Heinz metal food can requirements at its StarKist Seafood throughout North America.
Impress and Heinz began their successful alliance in Europe in 1999, when Impress was awarded a sole supplier contract for Heinz Tuna canneries in France, Portugal and the Seychelles. To reduce freight and inventory costs, Impress constructed a wall-to-wall facility in the Seychelles to produce 6,5oz tuna cans. In January 2000, to support Heinz's drive to improve product convenience, Impress entered in a multiyear contract with Heinz Europe in the Grocery market. Under that agreement, Impress is annually supplying two billion ends, including one billion of the newly introduced, user friendly ring pull Easy Open lids.
The Supply Agreement would allow to provide innovative packaging solutions, total supply chain management and economies of scale to address Heinz's goals and strategies for its tuna brands and pet foods. Impress strongly believes that innovation in food products is increasingly important and the company will support it in North America as it does successfully in Europe through the implementation of high value-added, differentiated metal packaging solutions.''
Impress is a world leader in the metal packaging industry and developing innovative steel and aluminum packaging solution. It employs over 7000 people in 39 plants throughout 14 countries in Europe, Japan, and the Seychelles.