Slow EU demand expected for next two months Europe, Jan 07, 00
Activity in the European market is still limited this first week of 2000.One of the reasons is that most major buyers have covered their needs, just like in the States, well into March and April, and some even as far as June 2000. This means that they will not be in the position to make any major purchases for the next 2 months. However there are some who still did not cover fully, thinking that the market might stay low at levels of USd 500-$550 for skipjack 1.8kg up.In the German market the sales of tuna have been quite good the last month of the year, and stocks levels said to be normal. German importers are now mainly concentrating on catering pack, since they have lost much of their retail volume to Star-Kist/Heinz, Saupiquet and Peche et Froid, who sell more and more direct to the chains. Contracts for catering pack tuna have been booked in mainly Philippines for spread shipments up to April at very low prices. These containers will continue to come in, and most of them will be delivered straight to customers, thus no real increase in stock levels is to be expected. In the U.K. market sales also seem to have been quite good the last two months. Here super-markets have covered themselves in Thailand, and in ACP countries, well in April at low prices, and will be quiet for the next 2-3 months at least.Benelux and Scandinavia show pretty much the same picture, with retail buyers covered for at least the first three months of the year at very low prices, most coming from ACP countries.

Buyers take wait-n-see position Europe, Jan 07, 00
Expectation for canned tuna is that the buying activity from Europe will remain low for the next 2 months. Many buyers are confident and do not expect rising prices of raw material to hold at $700 or to rise further. General view is that due to limited buying interest, there will be again a weakening of skipjack prices second half of February 2000 to a level of abt USd 600 per m/t. Buyers take a wait-n-see position.

Still good catches in Philippines and PNG Philippines, Jan 07, 00
- So far as we can tell, there is still quite ample supply of fish which can be caught around the Philippines and PNG. Fish hasn't disappeared nor has there been any indication of their disappearance. However, catching activities have indeed declined. Taiwanese catchers are said to have cut their operating fleets activity by 50%, while Americans are almost not catching now. Philippine catchers however (except for fresh fish catchers) are still operating.

Raw Material Price Philippines, Jan 07, 00
Above reason has prompted prices of raw materials to continue its rise. It is now at $600 for whole frozen skipjack (abt 1.8 kg)landed in GS, from last time we reported $550. If a buyer in Thailand would like to book from a Philippine catcher, they'd have to add between $70-100 per MT for the ocean freight to Bangkok. This would explain current Thai bids of around $670 (while suppliers would want $700). Another reason we can see for this rise in prices is the "intervention" of several global frozen tuna traders. Even if the "real price" of fish is only around $550, they buy it at $600(prompting catchers to ask for $600 also from the packers here). Then these fish traders approach Thai packers and try to sell it at $700. This goes on and causes a spiraling artificial price increase. It is our belief that this may go on until it hits $750 in Mar-Apr (in General Santos).

Finished Products Philippines, Jan 07, 00
Canned Tuna packers are still at at loss as to where to gauge their selling prices. Hence, their much hesitance to offer and sell. They are just mostly occupied shipping out and producing their earlier contracts.

Economic situation Philippines, Jan 07, 00
- Due to "in-fighting" among members of President Estrada's cabinet, there might be some changes in his cabinet. This of course has affected the economic scene. Stock market has become shaky (after a good year-end '99 and a good start for a few days of '00). Peso also depreciated (it's being rumored to hit P41/$ soon, even though the first 2 days of the year saw it below $40) likely due to this political unrest.

Limited Fishing Activity Continues Philippines, Jan 14, 00
Catching activities still not at full-blast. American and Taiwanese catchers are still said to be not utilizing all their fleets at the moment. With the "fresh fish" catchers enjoying their fiesta in General Santos, fresh fish catch has been very limited, at least until the end of the month. Also strong weather in the western Pacific and less fishing of PNG has been named as a cause of lower fishing activity.

Packers offer speculative at high levels Philippines, Jan 14, 00
Packers are now mostly relying on the delivery of their "previously contracted low-priced fish" to produce their "low-priced contracts". Packers here are very hesitant to buy raw materials at current prices as the market for finished goods is very slow in "reacting" to the situation of raw materials. Hence, there is that notable absence in offers for finished goods. Like buyers, the packers are also taking a wait-and-see attitude. Of course there are others who are giving out speculative prices which are understandably very high.

Philippine Tuna industry studying federation Philippines, Jan 14, 00
Meantime, the packers and the fish catchers of General Santos are trying to form a "federation" aimed at supporting each other and the industry as a whole. The federation has been formed but many issues have still to be discussed and ironed-out. As you may know, packers here have always expressed disapproval on the fish catchers' export of raw material instead of prioritizing local canners. On the other hand, fish catchers here have always expressed disapproval of the canners' import of raw materials. It is hoped that the federation will help make a mutually beneficial guideline to each others' activities. It is also believed that this federation will be able to get government's support

Slow EU demand expected for next two months Europe, Jan 16, 00 (follow up of Jan 07, 00)
Activity in the European market is still limited this two weeks of 2000.One of the reasons is that most major buyers have covered their needs, just like in the States, well into March and April, and some even as far as June 2000. This means that they will not be in the position to make any major purchases for the next 2 months. However there are some who still did not cover fully, thinking that the market might stay low at levels of USd 500-$550 for skipjack 1.8kg up.In the German market the sales of tuna have been quite good the last month of the year, and stocks levels said to be normal. German importers are now mainly concentrating on catering pack, since they have lost much of their retail volume to Star-Kist/Heinz, Saupiquet and Peche et Froid, who sell more and more direct to the chains. Contracts for catering pack tuna have been booked in mainly Philippines for spread shipments up to April at very low prices. These containers will continue to come in, and most of them will be delivered straight to customers, thus no real increase in stock levels is to be expected. In the U.K. market sales also seem to have been quite good the last two months. Here super-markets have covered themselves in Thailand, and in ACP countries, well into April at low prices, and will be quiet for the next 2-3 months at least. Benelux and Scandinavia show pretty much the same picture, with retail buyers covered for at least the first three months of the year at very low prices, most coming from ACP countries.

Second hand trading activity increases Europe, Jan 16, 00
Expectation for canned tuna is that the buying activity from Europe will remain low for the next 2 months. Many buyers are confident and do not expect rising prices of raw material to hold at $700 or to rise further. General view is that due to limited buying interest, there will be again a weakening of skipjack prices second half of February 2000 to a level of abt USd 600 per m/t. On the other hand importers/traders who have taken speculative positions in November '99 at very attractive levels for shipments up to end of February have already started cashing in on their position. This has lead to an increase in second- hand trading of canned tuna. It can therefore be expected that in those markets where brand loyalty is of less importance, second hand prices mightl become more attractive then prices from origin for the next 1-2 months. This mostly concerns trading in 66,5 oz catering packs.

Some packers take a break Philippines, Feb 01, 00
This last week saw packers trying to catch fish suppliers by bidding at $650-670 levels, but some seem to be willing to accept at US$ 700, or just below. Whereas 2 weeks ago Philippine packers were trying to bid below $600 for skipjack 1.8kg, This change has been brought about by the fact that packers are short of fish, which they can use in order to continuously run their plants. The last week at least 3 plants were not operating on a daily basis due to lack of skipjack supply.

Fish catchers speculate on higher prices Philippines, Feb 01, 00
One major fish catcher in General Santos reportedly has 3,000 MT of raw material in stock which he doesn't want to unload at the moment, thinking that prices will continue to firm up to $700+ levels. He recently sold about 900 MT (actually left-overs from the lots he sold to fish traders recently). Many packers were desperately trying to get this 900 MT.Bidding started below $600 levels but continued to intensify until finally was sold at $670. This scenario may continue unless other fish suppliers/catchers are able to report good catch and unload to packers. At the moment, other fish suppliers/catchers have nothing in stock.

Fresh catchers face rough weather Philippines, Feb 01, 00
Around General Santos fishing efforts are still limited due to part of the fleet being still in harbor for the Santo Nino festival. It remains to be seen what the catches will be once they operate full capacity, and more vessels return from the fishing ground.Fresh fish catchers (smaller vessels) especially are said to have limited catching due to rough waters.

Slow catch - North of PNG  Philippines, Feb 01, 00
Also Taiwanese Fishermen report that fishing in the Western Pacific are slow, this being caused by very bad weather. These circumstances have especially affected fishing efforts North of the Equator, North of PNG. Also fleets operating in the Indonesian waters are experiencing this situation.

Yellowfin tight - high prices Philippines, Feb 01, 00
At $700 raw material, packers are likely to quote at $21.00-22.00 for 66.5oz skj US packs. Yellowfin supply is likewise very tight and the demand has made packers quote at $24.00-25.00 for 66.5oz US packs. This is partly caused by the lesser catches, but also by the higher prices paid by European packers in Spain and Italy. Meantime, many packers are also in a dilemma as how to produce their "low-priced" contracts entered into late last year, with the current high price of raw material.

Price expected to rise to $725-$750 for skipjack Philippines, Feb 01, 00
In all fishermen feel confident that the price will rise for the next 2-3 weeks and are aiming to get a price of USD 750 for 1.8 kg frozen skipjack landed. They feel supported by the fact that in the Indian Ocean catches are also disappointing with a very high ratio of yellowfin (70%), and a relatively small amount of skipjack. Which means vessels will be likely to sell to European buyers.

Wargames started Philippines, Feb 01, 00
On the national scene, amid loud protests from various sectors, top state and defense officials from the Philippines and the U.S. formally opened Balikatan 2000, a series of joint military exercises under the Visiting Forces Agreement (VFA). About 4,700 Filipino and American servicemen are set to participate in the war games from Jan 31 to Mar 3 (which include live firing, cross-training, amphibious operations and civic programs). This will be the biggest military exercise since 1995. Meanwhile, some senators are questioning the legality and constitutionality of the VFA (which is still being reviewed by the Supreme Court), hence the military exercises should be suspended according to them.

Packers fear possible shortage Ecuador, Feb 04, 00
Trading activity is at his lowest due to the proximity of the Chinese new year celebration. Reports from fishing companies indicate the price for skipjack in Jakarta is   between usd 730 and usd 600 p. M/T depending on the quality, and size of the fish. Some packers fear a possible shortage for raw material but it is difficult to identify whether it is a direct consequence from the holidays or just the level of fish catching itself . The answer should be known next week.

Albacore remains scarce Ecuador, Feb 04, 00
Albacore is still scarce due to poor catching in Bali and Jakarta, it is being offered IDR14500 which is slightly lower than the beginning of the year. The present exchange rate (Idr vs Usd :7550) should now allow packers to sell their products cheaper. It is expected that the landings should resume by March.

Fishing licenses up for renegociation Ecuador, Feb 04, 00
It is said most of the fishing licenses have expired last month and are being renegotiated between the fishing companies and government officials. A situation which could create upward pressure on prices, if this process of renewal of licenses was being delayed . This may be one of the reasons why Indonesia largest operating packer (in Bitung) is still not offering at all

Coup seems unlikely Ecuador, Feb 04, 00
On the political front the whole attention focuses on the stand-off between the new elected president and the Key military man: General Wiranto . Rumors of a possible coup, though very unlikely, keep the attention of the whole business community.

EU signs tuna fishing agreement Guinea (Atlantic) involving reduction tuna fishing Europe, Mar 08, 00
The European Union and the Republic of Guinea ( Africa, along southern Atlantic) recently initialled a new protocol to the Fisheries Agreement between the two parties for the period 1 January 2000 to 31 December 2001. This new protocol is based on the concept of the precautionary approach and sustainable fishing in the waters of Guinea. It contains provisions aiming to help Guinea in its efforts to decrease overall fishing effort and to strengthen monitoring and control in order to improve the deteriorating state of some fish stocks in the waters under its jurisdiction. There has been a substantial decrease in fishing possibilities for fish/cephalopods, from 4,000 to 2,500 GRT, due to the low rate of uptake of these possibilities and the poor state of these resources. There is a slight decrease in the number of tuna vessels from 74 to 68. These include 38 tuna seiners, 14 pole and line vessels and 16 surface longliners compared with 33, 13 and 28 respectively previously.

The EU financial compensation will amount to euro 2,960,000 per year. Almost half (euro 1,360,000) will be allocated to targeted measures aiming to promote scientific research, monitoring and control, support for artisanal fisheries, training facilities and support for participation by Guinea in Regional Fisheries Organisations. These measures will contribute to the joint endeavour to ensure sustainable fisheries. The reduction in the fishing effort of EU vessels will contribute to the reduction in the overall fishing effort in Guinean waters (3,000GRT) over the next two years. Guinea intends gradually to stop allocating private licences to vessels which do not operate under the same constraints as those fishing within the framework of Agreements.

To compensate Guinea for this fishing effort reduction, the EU has set up a premium of euro 370,000 per year. This premium aims to help strengthen the administrative and operational capacity of the monitoring, control and surveillance system of Guinea. This will help the national authorities in their efforts to deter illegal fishing activities by foreign fleets. In addition, Guinea will examine the introduction and development of satellite Vessel Monitoring System (VMS) for fishing vessels operating in its waters.

Ahold takes over U.S. Foodservice Europe, Mar 08, 00
The supermarket conglomerate Ahold, from the Netherlands, has acquired U.S. Foodservice for the sum of abt. 4 billion USdollars. This is the first time that Ahold invests in a Food-Service company in the U.S. Ahold has its own Food Service Deli XL activities in the Netherlands, where it a majority market share.   U.S. Foodservice is the 2nd largest food service supplier in the States after Sysco. They supply through 40 distribution centers, 13000 employees, about 140.000 customers with a product line of 40.000 different articles. U.S. Foodservice has an anual turnover of US$ 6.2 billion.  Its website handles currently about US$ 100 million of transactions, and Ahold expects this to rise to Us$ 530 million in the next years. Reason fro Ahold to invest in food service is that research has shown that the food service segment is growing twice as fast as the retail sector. Ahold gets now more then 505 of its trunover from US retail activities, and with a turnover of US$ 20,3 billion and 1063 stores, they are now the 4th largest food -supplier in the U.S.A.

President wants dollar as national currency Ecuador, Mar 08, 00
The Ecuadorian President Jamil Mahuad, who recently fired his entire cabinet, has introduced the plan to replace the local currency, sucre, with the USdollar as the national currency. Out of protest against this plan the President of the Ecuadorian Central bank, Pablo Better, resigned. The plan is that Ecuadorian citizens can exchange 25000 sucres for 1 dollar, and to have the sucre disappear entirely. This moves imposes a big danger for the weakened Ecuadorian banks, and the companies they support. If Ecuador is dollarized, the government no longer has the option available in case of emergency  to support its national banks with an extra liquidity injection.

100% interest rates hurts packers & fishermen Ecuador, Mar 08, 00
Ecuador faces the worst economic crisis since 1929, and is in no position to pay any of its foreign debts. The sucre has lost 70% of its value against the dollar the last year, and there is no sign of recovery yet. January 7th the sucre devaluated 17% in one day ! The inflation is now abt 60% annually, and bank charge interest rates around 100%. This situation blocks any possibility for economic growth and makes the banana export business for Ecuador of enormous importance. The IMF has reacted positively on the plan of the dollarization of Ecuador. The Ecuadorian government and the IMF were negotiating about an extra loan of US$ 200 million, to create a turnaround in the current catch 22 situation. For the tuna business this creates also great difficulties. Packers have no possibility to obtain loans from banks, and the financing of stocks creates great difficulties. The importance of the export of tuna to obtain hard currency has only grown further.

Good catches could trigger price-fall again Ecuador, Mar 08, 00
Now that the IATTC ban on the catch of tuna, is lifted, small boats have gone out fishing for skipjack in the coastal waters of Ecuador. First reports are that catches are quite good, and that fish is again abundant in the waters of Ecuador. The boats with larger catching capacity have not returned yet, but its is expected that they also will enjoy good catches of skipjack and yellowfin. Currently the price for landed frozen skipjack is arnd US$ 550 per M/T. Although prices show an upward trend, it is likely that as  good catches continue through January, prices are likely to come down again. It is said that packers still have good stock levels. So fisherman in their search for hard currency,  again might be forced to accept very low prices for their skipjack. Through 1999 the economic situation in Ecuador in combination with very good catches, triggered a global fall in raw material prices for frozen skipjack. The question is..... will it happen again ?

Fisherman to sea again Ecuador, Mar 08, 00
The IATTC ban on the floating object fishing on under-sized skipjack and yellowfin in the waters of Ecuador has been lifted by the turn of the century. Fisherman have gone out to sea again and are finding that the Ecuadorian waters are abundant with skipjack. The outlook of good catches in the coming month(s) in combination with a disastrous economic situation raises worries about the effect on raw material prices, also in a global sense.

Bitung factories face stagnation fish supply Indonesia, Mar 13, 00
While frozen skipjack material remains between US$ 650-720 level, the 2 major tuna factories in Bitung are facing a stagnation in the supply of frozen skipjack and small yellowfin. Besides the fact that the raw material supply is already traditionallylower in Jan/ Feb. in this area, now also the ethnical riots in the Eastern part of Indonesia have their effect. Packers in Bitung rely for an important part (between 20-40%) of their frozen skipjack supply on this region. According to sources there is hardly any fishing   going on in eastern Indonesia anymore.

New regulations for fishing licenses Indonesia, Mar 13, 00
The Indo government will apply new fishing licensing regulations in order to curb illegal fishing in Indonesian waters. Illegal fishing in Indonesia has been estimated at US$ 4 billions in loss in revenue, while it is said that the Indonesian earns US$ 2.2 billions from the fishing sector.  This would mean that abt 60% of all the fish caught in Indonesian waters is not obtained in a legal way.  This new licensing program which is due to be completed within 4 months will be accompanied by some financial package to facilitate the procurement of fishing vessels. In the past subsidies and support programs to expand the tuna fishing fleet have often lead to total failure. Often the funds ended up in the wrong pockets. Boats were build, but never sailed,  due to lack of know-how on tuna catching, fishing and sailing techniques with the local population.  During the past few weeks more and more illegal fishermen were caught in the Indonesian waters by the coast guard.

Piracy Increases Indonesia, Mar 13, 00
A three day meeting organized by the Japan Maritime Safety Agency has agreed to organize a larger conference by the end of the month to tackle the problem of increasing piracy and armed robbery against Japanese ships in Indonesian waters. Not only Japanese vessels are facing this problem, also other foreign flag and even local vessels experience this problem of raids on the open sea by heavily armed pirates with fast speed boats. The unrest in Eastern Indonesian region has only made things worse. Crew of fishing vessels also refuse to go ashore, or are being attacked when bunkering. The Indonesian government has invited Japanese boats to patrol the Indonesian waters for better protection of the Japanese vessels.

Albacore still short Indonesia, Mar 13, 00
With the Tongol and yellowfin catches also being limited but still on-going, the Indonesian fisherman expect to have better results catching albacore from beginning of April onwards. Therefor albacore remains short and prices firm.

Rupiah softer Indonesia, Mar 13, 00
Despite various attempts by the Indonesian Government to try to lift the to IDR 7200 to the Dollar, the exchange rate slightly further softened to the level of IDR 7500 / US$ (-5%). It is general understanding that the relative political instability of the country has a negative effect on the way the Rupiah is valued. Packers buy most of their fish in Rupiah, however tin-plate  needs to be imported, and is subject to world market prices. In the end a weaker Rupiah could mean a more competitive position for the Indonesian tuna trade.

Minimum Salary raised up to 54% Indonesia, Mar 13, 00
One of the measures of the new government lead by Mr. Wahid has been to raise the minimum wages. Effective from April 1st the minimum salary  in Indonesia has been raised from 15% to 54% depending on the area. As far as the tun production concerns the wages will increase in East Java by 20-30%, in Sulawsi 20%, and up to 40% in Irian Jaya. This brings per example the highest minimum salary in Jakarta up to the equivalent of USD 40/Month or USD 1,60/ Day.  The labor costs make up between 10-15% of the total production costs of a case of canned tuna.

Skipjack prices hold around $700 p. M/T Philippines, Mar 13, 00
Despite some weakening of the frozen skipajck prices in Bangkok the fisherman in Philippines are  frim on the level of US$ 700-680 per ton. Ther have been reports of rpices below the level of US$ 680 landed General Santos, but the quality of this fish is considered inferior for product aimed at the U.S and most European markets. Packer might use this product for lower specs markets such as Germany, where quality demands a less high then export markets as U.K. and Scandinavia. The question is if the current prices are the result of limited catches or just limited catching activity?

Lenten season more competition fresh fish Philippines, Mar 13, 00
One of the reasons that frozen skipjack prices 1-1.8kg in the Philippines remains at the level of US$ 700 p. M/T is that the domestic fresh tuna supply (200 -300 grams size) is quite inconsistent, and that packers are not able to compete with the prices the fresh domestic market is willing to pay. The quality of the fresh fish is quite good, although the size is really not fit for efficient canning. The coming lenten season, with increased fresh domestic consumption may even result in more competition.

Tuna boats used as freezers Philippines, Mar 13, 00
Some fisherman tend to be so insistent and confident on the price of US$ 700 for frozen skipjack that they prefer to keep their boats in the G.S. harbour filled with fish waiting for packers to meet their price of US$ 700, instead of unloading their cargo and putting it in on land facilities. Others are currently still holding their boats in port for repairs.

First Dom - San Miquel deal pending Philippines, Mar 13, 00
The discussions between First Dominion prime Holdings (First Dom), the major Philippine tuna producer , and the Beer Company San Miquel Corporation are said to be still ongoing. factories have been audited by representatives of San Miquel but no further news has surfaced about this possible deal. First Dom, which operates currently one factory in Manila, two in General Santos, and one in the United States  has been looking to sell off the company for  some time. San Miquel who wants to expand itself in the food business, would make an excellent party, giving it possibilities to grow in the domestic tuna market.  Sources say that SMC may be willing to pay as much as PHP 3 billion ( US$ 75 million) for the total First Dom group.

RFM / Psi technology listed at Nasdaq Philippines, Mar 13, 00
RFM the majority shareholder of the tuna canner RFM/SWIFT has brought is technology and elcetronics arm Psi technology holdings to teh Nasdaq. It is the first philippine technology company to do so. Among Psi clients are Motorola, Texas Instruments and Hewlett Packard.

Possible "jihad" threathens Northern Mindanao Philippines, Mar 13, 00
There are fears thatongoing conflicts between the separatistMoro islamic Liberation Front (MILF) and the government might escalate to a "holy" war between M8uslims and christians in the Northern part of Mindanao. The past two weeks we have seen continious fighting between the government froces and the MILF, causing some residents to flee their homes. General Santos, the major tuna harbour is located in thre South of Mindanao, and not directly effected by these conflicts, although people follow this situation very closely.

Ecuadorian canners switch more to loins Ecuador, Mar 28, 00
Forced by the very slow demand from especially the european canned tuna market, the majority of the ecuadorian tuna canners have switched more of their production capacity to loining. Demand from Spain and also Italy for frozen skipjack and also yellowfin loins is good, and provides currently better opputunities for packers then the very depressed canned export market in Europe. Even though packers have the best prices for canned tuna they are not able to attract any new business which offer them a margin.

Catches continue to be good Ecuador, Mar 28, 00
The catches of skipjack are reported to be quite good of the coast of ecuador and in the Eastern Pacific ocean. Packers are paying for raw material prices from US$500 to US$ 550 landed for whole round skipjack 1.8kg up. Abt 2 weeks ago prices moved up after one U.S. owned cannery in Ecuador started bidding higher prices in order to obtain skipjack raw material, however when this demand disappeared prices relaxed again to a lower level.

German Importers facing high stocks catering tuna Europe, Mar 29, 00
The several German importers who have bought large volume of especially catering tuna during period November till December 2000, are facing now a situation where they are confronted with high stock levels. Importers report that with the demand almost being dead, and the supply being good they are getting much more tuna into their stock then they can move. There are basically two reasons for this: Firstly importers speculated when they bought ever-low prices, on delayed shipments from especially Philippines, due to difficulties with packers of fulfilling their contracts. This has happened many times in the past before. However this time packers are quite well on schedule, which creates a higher then expected supply. Secondly many smaller  importers have also jumped into the tuna market at rock bottom prices end of 1999, with larger then usual volumes. These smaller importers are now also feeling the pressure of disappointing demand, and are almost desperately trying to eliminate their stocks.

Ex-stock prices fall further below replacement levels Europe, Mar 29, 00
The very slow demand in especially Germany, the slow up-take of contracts by whole-sales prices and the build up of stocks in Hamburg storage's of especially food-service tuna has resulted in price-levels that are well below prices quoted from origin. Especially smaller importers have cut prices to a level which is based on their original buying price (Nov. '99) level, plus a small margin. Effectively this means that some smaller importers are selling at prices which are on CFR basis sometimes as much as 15% ($ basis) below today's quotation from Philippine tuna packers. The high stock levels in combination with these low ex-stock prices have killed demand and also confidence with buyers.

USdollar - Euro rate remains a problem Europe, Mar 29, 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.

Spanish canners have low costprices Europe, Mar 29, 00
Due to the fact that many Spanish packers have been able to buy frozen cooked skipjack loins at very low prices from especially South - America, they have been able to offer at very low prices to the European retailers. With catches being good in the Eastern Pacific for the last 6 months and with whole round frozen skipjack prices in Ecuador being historically low, Spanish tuna packers who re-pack imported frozen cooked loins in tins have currently a much better cost-price then their competitors in Asia. Contracts for frozen cooked loins are often made for 2-3 month periods, and give packers more stability in cost-price usually then being faced with strongly fluctuating raw fish prices. With prices for frozen loins ex- S-America (Ecuador, Colombia, Costa Rica, Mexico) being still very competitive, it is not economical anymore for canned tuna packers to buy whole round fish and clean it in their factory in Spain.

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