TUNA INDUSTRY

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Fishing is a PhP50 billion industry in the Philippines, contributing about 4% of the country’s GNP. With an annual

production volume of 2.4 million metric tons of fish, it directly provides livelihood and employment to over one

million Filipinos. Tuna is among the 200 or so species of fish found in the country that have high commercial value.

The Philippines ranks 7th among the top tuna producing countries in the world, both in terms of fresh/frozen tuna

and canned tuna.

Despite this formidable ranking, the Philippines position in the international tuna industry leaves much room for

improvement. The industry continues to be vulnerable to price fluctuations in the world market, stiff competition

from existing and emerging tun producing country, trade discrimination in some importing countries, limited access

to fishing grounds, increasing costs, and operational inefficiencies within the industry. Of late, however, these has

been a genuine recognition among the tuna industry players and development partners of the need to urgently

address the obstacles to industry’s growth and the industry is now taking firm steps to do just that.

With the modest success of the 1st tuna Conference in General Santos City in September 1999 and a series of

regional workshops and industry forums earlier this year, it has been confirmed that it is, indeed, possible to bring

the multisectoral stakeholder groups together and talk about their common concern-how to strengthen the

Philippine tuna industry and become more globally competitive.

GROWTH OF THE TUNA FISHING INDUSTRY IN GENERAL SANTOS CITY

The tuna fishing industry had never been this promising and lucrative since its birth on this side of the earth-

General Santos City. Lying at the head of the Sarangani Bay, the city has been dubbed the “Boom Town City of the

South,” and considered as one of the fastest-growing cities in the Philippines.

Had it not been for its strategic geographical location and existence of other amenities needed by the fishing

industry, General Santos City could not have become South Cotabato’s heart of commerce and trade. Boosted with

the signs of prosperity sprouting everywhere,” business has never been better,”. With the advent of the operation

of General Santos City Fish Port Complex, post-harvest technology equipment needed to prolong the shelf-life of

tuna and other species of fish, are made available, thus playing a vital role for trading and other post harvest

activities.

The proximity of the city to tuna-rich fishing grounds including the Moro gulf, Sulu Sea, Mindanao Sea and adjacent

Celebes Sea which are known centers of tuna abundance, is great advantage. This location is even pleased with

fair weather zone which is not normally visited by devastating typhoons or seasonal adverse weather patterns.

Another advantage is the availability of facilities like wharves, canneries and an airport. With these characteristics,

the city is truly an ideal base of operation for commercial tuna.

The deep sea adult tuna fish catched by handline or longline ranges from 110 to 150 centimeters in size (Aprieto,

1995).

As early as 1970, General Santos City has been tagged as the “Tuna Capital of the Philippines”. The total daily

catch of adult and juvenile tuna unloaded in the city can surpass that of any other fishport or even the entire

unloadings of all other fish ports in the country combined (Aprieto, 1995). The daily catch is easily disposed for

foreign and local buyers. The city, being the sanctuary of seven (7) tuna canning factories with an average daily

capacity of 750 MT per day and employs around 7,800 plant workers (GEM) the volume of catch on a per day basis

is even insignificant as to the distribution of the market.

As of September of the previous year alone, the total catch has reached a voluminous 5,031, 866 kilos where

’sashimi” grade adult tuna comprises 35 % or about 1,774,922 kilos. The locally distributed adult tuna for local

consumption ate the largely 65% chunk and distributed to neighboring cities of Davao, Bukidnon, Cagayan de Oro,

Surigao, South Cotabato and as far Japan and the U.S., skipjack for canned markets in Europe and North America.

Fishing Boats

The commercial tuna fleet is usually composed of deep sea purse seine and ring net vessels. Purse seine boats

range from 100 to 500 gross tons, with an average of about 250 gross tons. On the other hand, the municipal tuna

fisheries is consist of largely of deep sea tuna fisherman catching by handline or longline the adult tuna which

range in size from 110 to 150 centimeters (Aprieto, 1995).

Of the total volume of fish landings brought in by the commercial fisheries (669, 597.40 metric tons as reported by

the Philippine fish marketing Authority office in General Santos City), tuna species comprises about 50 to 100

percent.

About 45% of the tuna catch are skipjack, about 25% are yellowfin, and about 23%are frigate and bullet tuna.

Around 60% of the ring net landings supplied to the local canneries, 35% is brought out of General Santos City to

local domestic fish markets and the remaining 5 % is consumed locally.

Tuna longline fishermen catch adult yellowfin and billfish deep waters as an average from 500 to 800 kilograms per

trip which lasts from one week to two weeks. The average number of boats that come known to the port on a daily

average is about 25 fishing from as far as borderline of Indonesia and Palau Islands. The catch according to the

fishermen usually consists of 95% yellowfin, 3% bigeye, and 2% billfish.

Yellowfin Tuna

The impact of the growing tuna industry of General Santos City has been inviting in-migrants seeking employment

in any of the canning factories or sashimi-exporters for the Japan market. The rate of population growth has

notably increased in an alarming rate of 2.64% per annum for the last 5 years. This means that the city’s

population increases at about 10,000 warm bodies per month. The study is based on the trend analysis on General

Santos City migration.

Since the start of GSFPC’s operation, unloading of tuna and tuna-like species has dramatically increased. Fish

unloading started at the fishport’s market 1 with the recorded volume of 515, 160 kgs., for the month of April 1998,

where majority of the catch consists of yellowfin tuna.

Fish unloading dramatically increased on August 1998, when market 2 which caters to baby purseiners and mixed

species of fish producers opened, showing an increase in total fish unloading of 118% based on the April 1998 data.

Apparently, another abrupt increase in tuna unloading was noted when the port’s Market 3 accommodating large

purseiners opened on March 1999 increasing the volume by 227% compared to August 1998 data.

The captured tuna and tuna-like fishes have been monitored to be delivered to 3 major destinations. These include

the canneries, the processors/exporters, and the local market catering the local consumers.

GENERAL SANTOS FISHPORT COMPLEX

The construction of General Santos Fish Port Complex(GSFPC) was funded by Overseas Economic Cooperation

Fund(OECF) of Japan. GSFPC is the nation’s second largest fish port after Navotas, and considered the most modern

in the country today. The construction started last December 1994 and finished in March 1999.

Aerial view of the General Santos Fishport Complex.

Located at Barangay Tambler, General Santos City, it is a 32-hectar lot owned by the Philippine Fisheries

Development Authority(PFDA) The operationalization of the GSFPC is considered of great importance to the East

Asian Growth Area(EAGA) as it is envisioned to be a major fishing post-harvest project in Mindanao area. GSFPC

boast complete six -35°C cold storage with a 300 MT capacity each, 4- tons/day brine freezer; a 60 tonner ice plant

and a 758 meters of landing/preparation area.

REFRIGERATION FACILITIESIce Making Plant 60 tons/dayIce Storage 60 tons/dayIce Crusher 20 tons/hourCold Storage, -35°C 1,500 tons (6 x 250 tons)Contact Freezer, -45°C (4 units) 288 kg./cycle/3-4 hr./unitAir Blast 14 tons/dayBrine Freezer 50 tons/dayBUILDINGFACILITIESFish Market (3 units) 6,000 sq.m.Refrigeration Building 7,000 sq.m.Maintenance Shop 360 sq.m.Administrative Building 420 sq.m.Net Mending Shed(4 units) 160 sq.m.Public Toilets 120 sq.m.Fresh Water Pump House 19.36 sq.m.Fire Pump House 12.00 sq.m.Sea Water Pump House 19.04. sq.m.

It also include 4 market halls, fish container storage yard and maintenance shop among others. The operation of

GSFPC paved the way for bigger production and high quality products which is now haven for big and small fish

producers/processors. With the expansion of General Santos City Fish Port Complex, the growing fishing industry in

the city will be served with utmost efficiency. The expansion includes a belt conveyor fish sorting system with

ancillary cargo-handling, weight bridge and telescopic boom crane, municipal fish landing wharf and a market hall

and an off-site development for fisheries and related activities which will be leased to cooperatives and other

interested private individual for fish processing, ice and cold storage plant, contact freezer, e.g. fencing, road

pavement, drainage and water reservoir.

Indeed, These salient special features of the General Santos Fish Port Complex could well be competitive with the

international fish port facilities catering the ever growing tuna industry of General Santos City.

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Fish Farming Continues to Grow as World Fisheries Stagnate

by Alice McKeown Jaspersen | December 17, 2008

World seafood production neared 160 million tons in 2006, the last year for which there are data.1 (See Figure 1.) The growth over the previous year was entirely due to increased fish farming, or aquaculture, which increased by more than 3 million tons, an annual addition that has been fairly consistent over the last 10 years.2 In contrast, fish caught in the wild declined for the second year in a row and dropped to almost 4 million tons below the peak catch in 2000.3

About 75 percent of the fish caught and produced each year are destined for human consumption.4 This adds up to about 16.5 kilograms of fish per person annually on a global scale.5 In 2004, more than 2.6 billion people depended on fish for at least 20 percent of their animal protein.6

People in China eat the most fish, with an average 25.8 kilograms live weight equivalent per person, compared with a figure of only 8.2 kilograms in Africa.7 People in North and Central America eat 18.6 kilograms, while Euro peans consume 19.9 kilograms a year.8 Not surprisingly, people who live in coastal areas eat more fish than others in the same country or region; in Oceania, per capita consumption is 23.5 kilograms.9 Differences within continents are also common: in the United States, the average fish consumption is 24.2 kilograms while in Mexico it is 11.6 kilograms; in Spain, the figure is 42.9 kilograms, compared with 34.3 kilo grams in France, 29.5 kilograms in Sweden, and 19.8 kilograms in the United Kingdom.10

Globally, total seafood production grew at a slower rate than meat output for 8 of the last 10 years.11 But aquaculture growth continues to far outpace all other animal food sectors, with average annual rates of 8.6 percent over three decades, compared with 2.8 percent for meat production during the same period.12 Projec tions indicate that seafood demand will con tinue to grow along with population and incomes, especially as people in developing countries increase their overall consumption of animal products.13

The world's fisheries have remained relatively stable over the last 15 years: about 50 percent are being fished at full capacity, 25 percent are underfished, and the remainder are overex ploited, depleted, or recovering.14 As a result, the U.N. Food and Agriculture Organization predicts that maximum wild fish capture has already been reached.15 Most of the stocks of the top 10 fished species are being fully fished or are overexploited, and studies have indicated that even in the most stable fisheries there have been declines in the most valuable species, such as tuna.16

Asia and the Pacific region dominate global aquaculture production, accounting for more than 90 percent.17 China is by far the world leader, with more than 45 million tons pro duced in 2006-about 70 percent of global output and more than half of the total global value from aquaculture.18 The next closest producer is India, with just over 3 million tons.19 The only country outside this region in the top 10 producing countries is Chile.20 (See Figure 2.)

At the same time that wild marine catches face further decline or stagnation, aquaculture production offers further growth potential. In China, more than three quarters of the fish supply comes from aquaculture, while the average for the rest of the world is 20 percent and rising.21 Sub-Saharan countries in Africa have the largest untapped potential because of resources like clean water and unused land.22

Historically, most of the world's aquaculture has focused on species that are relatively low on the food chain, including seaweeds, shellfish, and herbivorous or omnivorous species like carp.23 However, recent trends indicate stronger growth rates in carnivorous species like shrimp and salmon will continue, especially as demand increases.24 (See Figure 3.)

Due in part to this trend, growth in aquaculture now drives global fishmeal and fish oil production. Until recently, fishmeal and fish oil were used primarily for pig and poultry production; today nearly 50 percent of fishmeal and 87 percent of fish oil is used in aquaculture.25 In 1948, only 7.7 percent of wild-caught fish were reduced to fishmeal or fish oil, but that number has grown to 37 percent.26 Because fishmeal and fish oil depend on overly taxed marine fisheries, increasing production on a large scale is unlikely.27

Increasing the use of fishmeal and fish oil in aquaculture raises health and environmental concerns. The rendering process used to pre pare these products concentrates the toxins found in the fish, including carcinogenic dioxins, which accumulate up through the food chain to people who eat contaminated fish.28 This problem is seen clearly in farmed salmon, which consistently have significantly higher levels of dioxin than their wild counterparts.29 Another troublesome toxin that accum ulates in fish is mercury, which is especially dangerous for children.30

Dependence on rendered fish also decreases the efficiency of farming fish, as fish-derived feed products require more energy to produce than plant-based ones.31 For farmed salmon, as much as 90 percent of all energy inputs go into providing food for the salmon.32 Indeed, farmed salmon can require five times more energy per edible protein unit than farmed shellfish.33

Fish farms themselves, especially ones that raise carnivorous fish, can be a large source of water pollution, including nitrogen and excess nutrients that can create toxic blooms and dead zones.34 Because fish are often raised in high densities to maximize profit, they can require antibiotics and other treatments for diseases, most of which end up in the water.35

These problems have led some researchers and fish farmers to consider alternative prac tices that would minimize environmental harm while allowing increased aquaculture produc tion. For example, integrated fish farming works at the ecosystem level, using a combination of fish, shellfish, and aquatic plants to filter wastes and provide a self-sustaining source of food.36 Integrated fish farming has been used outside major urban areas to raise fish for food and treat human wastes at the same time.37

With an ongoing food crisis and a growing world population, seafood production could potentially play a vital role in addressing food security and meeting development goals. Fish is highly nutritious and can be an important source of vitamins, minerals, and protein, even when consumed in minimal amounts.38 A recent World Bank survey showed that small-scale fish farming consistently pays off for workers by raising income, creating stable work, and increasing food supplies.39 However, not all seafood production is created equal: overfishing is linked to poverty, leading to fewer jobs and taking away an important source of income in developing countries.40

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Includes the following charts and graphs World Seafood Harvest, 1950-2006Top Aquaculture-Producing Countries, 2006Farmed Shrimp and Salmon Production, 1950–2006

NotesPlease purchase this trend to gain access to the fully referenced endnotes and figures.

»

Fish Farming Continues to Grow as World Fisheries Stagnate

by Alice McKeown Jaspersen | December 17, 2008

World seafood production neared 160 million tons in 2006, the last year for which there are data.1 (See Figure 1.) The growth over the previous year was entirely due to increased fish farming, or aquaculture, which increased by more than 3 million tons, an annual addition that has been fairly consistent over the last 10 years.2 In contrast, fish caught in the wild declined for the second year in a row and dropped to almost 4 million tons below the peak catch in 2000.3

About 75 percent of the fish caught and produced each year are destined for human consumption.4 This adds up to about 16.5 kilograms of fish per person annually on a global scale.5 In 2004, more than 2.6 billion people depended on fish for at least 20 percent of their animal protein.6

People in China eat the most fish, with an average 25.8 kilograms live weight equivalent per person, compared with a figure of only 8.2 kilograms in Africa.7 People in North and Central America eat 18.6 kilograms, while Euro peans consume 19.9 kilograms a year.8 Not surprisingly, people who live in coastal areas eat more fish than others in the same country or region; in Oceania, per capita consumption is 23.5 kilograms.9 Differences within continents are also common: in the United States, the average fish consumption is 24.2 kilograms while in Mexico it is 11.6 kilograms; in Spain, the figure is 42.9 kilograms, compared with 34.3 kilo grams in France, 29.5 kilograms in Sweden, and 19.8 kilograms in the United Kingdom.10

Globally, total seafood production grew at a slower rate than meat output for 8 of the last 10 years.11 But aquaculture growth continues to far outpace all other animal food sectors, with average annual rates of 8.6 percent over three decades, compared with 2.8 percent for meat production during the same period.12 Projec tions indicate that seafood demand will con tinue to grow along with population and incomes, especially as people in developing countries increase their overall consumption of animal products.13

The world's fisheries have remained relatively stable over the last 15 years: about 50 percent are being fished at full capacity, 25 percent are underfished, and the remainder are overex ploited, depleted, or recovering.14 As a result, the U.N. Food and Agriculture Organization predicts that maximum wild fish capture has already been reached.15 Most of the stocks of the top 10 fished species are being fully fished or are overexploited, and studies have indicated that even in the most stable fisheries there have been declines in the most valuable species, such as tuna.16

Asia and the Pacific region dominate global aquaculture production, accounting for more than 90 percent.17 China is by far the world leader, with more than 45 million tons pro duced in 2006-about 70 percent of global output and more than half of the total global value from aquaculture.18 The next closest producer is India, with just over 3 million tons.19 The only country outside this region in the top 10 producing countries is Chile.20 (See Figure 2.)

At the same time that wild marine catches face further decline or stagnation, aquaculture production offers further growth potential. In China, more than three quarters of the fish supply comes from aquaculture, while the average for the rest of the world is 20 percent and rising.21 Sub-Saharan countries in Africa have the largest untapped potential because of resources like clean water and unused land.22

Historically, most of the world's aquaculture has focused on species that are relatively low on the food chain, including seaweeds, shellfish, and herbivorous or omnivorous species like carp.23 However, recent trends indicate stronger growth rates in carnivorous species like shrimp and salmon will continue, especially as demand increases.24 (See Figure 3.)

Due in part to this trend, growth in aquaculture now drives global fishmeal and fish oil production. Until recently, fishmeal and fish oil were used primarily for pig and poultry production; today nearly 50 percent of fishmeal and 87 percent of fish oil is used in aquaculture.25 In 1948, only 7.7 percent of wild-caught fish were reduced to fishmeal or fish oil, but that number has grown to 37 percent.26 Because fishmeal and fish oil depend on overly taxed marine fisheries, increasing production on a large scale is unlikely.27

Increasing the use of fishmeal and fish oil in aquaculture raises health and environmental concerns. The rendering process used to pre pare these products concentrates the toxins found in the fish, including carcinogenic dioxins, which accumulate up through the food chain to people who eat contaminated fish.28 This problem is seen clearly in farmed salmon, which consistently have significantly higher levels of dioxin than their wild counterparts.29 Another troublesome toxin that accum ulates in fish is mercury, which is especially dangerous for children.30

Dependence on rendered fish also decreases the efficiency of farming fish, as fish-derived feed products require more energy to produce than plant-based ones.31 For farmed salmon, as much as 90 percent of all energy inputs go into providing food for the salmon.32 Indeed, farmed salmon can require five times more energy per edible protein unit than farmed shellfish.33

Fish farms themselves, especially ones that raise carnivorous fish, can be a large source of water pollution, including nitrogen and excess nutrients that can create toxic blooms and dead zones.34 Because fish are often raised in high densities to maximize profit, they can require antibiotics and other treatments for diseases, most of which end up in the water.35

These problems have led some researchers and fish farmers to consider alternative prac tices that would minimize environmental harm while allowing increased aquaculture produc tion. For example, integrated fish farming works at the ecosystem level, using a combination of fish, shellfish, and aquatic plants to filter wastes and provide a self-sustaining source of food.36 Integrated fish farming has been used outside major urban areas to raise fish for food and treat human wastes at the same time.37

With an ongoing food crisis and a growing world population, seafood production could potentially play a vital role in addressing food security and meeting development goals. Fish is highly nutritious and can be an important source of vitamins, minerals, and protein, even when consumed in minimal amounts.38 A recent World Bank survey showed that small-scale fish farming consistently pays off for workers by raising income, creating stable work, and increasing food supplies.39 However, not all seafood production is created equal: overfishing is linked to poverty, leading to fewer jobs and taking away an important source of income in developing countries.40

Purchase this trend

Item# Type Price

VST124 PDF and Excel $10.00 Add to Cart

Includes the following charts and graphs World Seafood Harvest, 1950-2006Top Aquaculture-Producing Countries, 2006Farmed Shrimp and Salmon Production, 1950–2006

NotesPlease purchase this trend to gain access to the fully referenced endnotes and figures.»

Vietnam to expand fisheries sector

22 Jan 2010

A Vietnamese market

Vietnam is about to launch a VND 1,300 billion (US$71 million) investment programme to expand aquaculture

production over the next decade in the country’s southern provinces that form the central area of the fish

farming sector.

A key element of the investment programme aims at doubling the value of river catfish (tra catfish) exports to $3 billion

a year which will provide a major boost to the fast growing aquaculture sector that already ships a major portion of its

output to overseas markets.

Plans to expand aquaculture production include upgrading the quality of processed fishery products and ensuring that

fish farming practices comply with international health and environmental protection requirements. The programme is

part of wider government efforts to modernise the management and monitoring of the aquaculture and marine fisheries

sector that has grown rapidly during the past decade to place Vietnam among the world’s top five fishery producers.

Although Vietnam has developed into a major seafood exporter, the fisheries processing industry relies on imported

stocks for an important share of its fish supplies. Government plans to boost aquaculture and offshore capture

fisheries are aimed at increasing employment opportunities and expanding domestic fish supplies to the growing

number of export processing plants.

Shrimp the main product

Shrimp is the main product of the fish processing industry in terms of value while processed fish are largest in terms of

volume.

According to government figures, shrimp account for over half of the value of processed fishery products while

processed fish including tra catfish represent almost one quarter. The other important category is cuttlefish which

when dried is a popular delicacy in many Asian countries.

Processed fish is the main product category in tonnage terms accounting for about 40% of the more than 500,000mt of

processed seafood produced each year. Shrimp account for about 25% of the processed tonnage with cuttlefish being

the other major category.

Vietnam’s rapid growth as a fisheries exporter has been assisted by the availability of low cost labour for fish

processing plants, rising domestic fisheries production and imports to supplement local supplies. Mirroring the growth

of Vietnam’s other labour intensive export industries including textiles, garments and footwear, Vietnamese fish

processing plants need to keep costs low to compete with processing plants in China and elsewhere in Asia.

In a bid to improve the industry’s competitiveness, Vietnam’s Association of Seafood Processors and Exporters

(VASEP) recently has requested the government to reduce or zero rate import duties on all fishery products imported

for export processing.

According to VASEP deputy chairman, Nguyen Huu Dung, the number of seafood processing plants in Vietnam has

now grown to about 700. However, Vietnam’s fishing fleet and the aquaculture industry can supply only half of

processing plant’s fisheries requirements leaving processors reliant on imports for 50% of their requirements.

While accepting the imposition of import duties to protect the country’s black tiger shrimp and tra catfish producers,

VASEP has proposed the government lower or zero rate duties on imports of marine capture fish and farmed salmon

which do not compete with Vietnamese fisheries producers.

Government plans to invest VND 1,300 billion expanding aquaculture production in southern Vietnam include adjusting

the present zoning system, developing breeding infrastructure and setting up modern information systems to forecast

price and consumption. Around VND 800 million of the total targeted investment will be made from 2010 to 2015 and

the remaining VND 540 million during 2016 to 2020.

As the programme gets underway, catfish output in the southern Mekong Delta region, the country’s largest catfish

production area, is targeted to reach 1.5 million mt in 2010. Exports of processed tra catfish are expected to reach

600,000mt this year, worth an estimated $1.5 billion.

The government’s aquaculture development plan calls for tra catfish exports to grow by around $700 million,

equivalent to 50% in value, to reach $2.2 billion in 2015. Tra catfish exports are then projected to grow by a further

$800 million over the following five years, reaching $3 billion in 2020.

Small production units prevented

To encourage the development of large catfish farms and the use of modern aquaculture technology, regulations are

being introduced preventing the growth of small scale production units. New tra catfish breeding units will be required

to occupy a minimum area of at least 10 hectares and must be located in designated fish breeding zones to avoid

small, scattered breeding units being developed.

Breeding areas will be set up along the Tien and Hau rivers in Can Tho city, also Vinh Long, An Giang, Tien Giang and

Dong Thap provinces. The total maximum breeding area will be limited to 11,000 hectares in 2015, rising to 13,000

hectares in 2020.

In a separate move to encourage development of larger, more efficient breeding units, the government plans to

reorganise existing small scale family-run tra catfish breed units under community management model schemes and

to develop new breeding cooperatives.

Plans to expand tra catfish production form part of the government’s long term fisheries development programme

aimed at increasing aquaculture and marine capture fisheries output. The programme includes increasing efforts to

ensure that production standards meet import requirements of key markets in Europe, the United States and Japan.

Vietnam already has suffered costly prawn import bans in some markets including the European Union after antibiotic

residues were detected in some export shipments. The government is concerned that failure to comply with

international production standards could also effect exports of other fishery products.

The Ministry of Agriculture and Rural Development is working to ensure that fishery exporters comply with the EU’s

Illegal, Unreported and Unregulated (IUU) fishing regulations and the United States Farm Bill. Observation and

monitoring systems are being established to provide necessary data showing that the Vietnamese fisheries sector

complies with these regulations.

Following his return from meeting United States Agriculture Secretary Tom Vilsack in Washington recently to negotiate

tra catfish exports, state-run Vietnam News reported Agriculture and Rural Development Minister, Cao Duc Phat, as

saying that ensuring food safety is the biggest issue affecting exports to the United States market where American

catfish farmers are lobbying for a reduction in Vietnamese imports.

“The processes of producing, processing and packaging need to establish uniform standards. Tra catfish farmers must

register their information to get bar codes that allow the origin to be traced,” Mr Phat said. “We need to take action to

settle the current problem that processing companies do not have information about production while fish farmers do

not have information about the market.”

“We need to reorganise our production and consumption process. Institutions and individuals that pollute the

environment must be punished or even forced to shut down.”

Tuna fishing is one sector where standards have still to be set for product quality and sustainable fishing. In 2008

Vietnam exported tuna worth US$188 million, mostly to Japan, the United States and EU countries, up 25% compared

with the previous year.

The national tuna fishing fleet consists of about 1,500 vessels though only 50 vessels are operated by registered

business enterprises. Some leading Vietnamese tuna exporters favour establishing their own trade association to

assist the local tuna industry’s further development.

The global economic crisis affected Vietnam’s fisheries industry in 2009. According to the Ministry of Industry and

Trade, fisheries exports during the first three quarters of 2009 were $3 billion, down 9.6% compared with the same

period the previous year. Exports are expected to show a fourth quarter increase due to higher demand during the

Christmas period.

The United States and Japan are the two largest importers of prawns followed by the European Union, while most

catfish are exported to the United States, the EU, China and Hong Kong. These countries along with South Korea and

Taiwan are the major importers of other fishery exports.

VASEP forecasts that fisheries exports in 2009 will total about US$4.2 billion when figures are totalled for the year,

down about 6% compared with 2008.

Exports to the European Union fell 7% to US$454 million during the first 10 months of 2009, according to VASEP,

while shipments to the important Russian and Ukrainian markets plunged over 80% due to the slump in orders from

each country.

Exports of tra catfish totalled around 500,000mt worth US$1.12 billion in the first 10 months of 2009, VASEP said,

down 10.3% year-on-year in value. With shipments growing in the fourth quarter for the Christmas period in European

and North American markets, total exports of tra catfish are estimated at about $1.3 billion for 2009, down 7% from

$1.4 billion the previous year.

Government target

Meanwhile, Vietnam’s fisheries industry is on course to achieve a number of targets outlined in the government’s

Master Plan for Development of the Fisheries Sector 2006-2010 which has now entered its final year. The government

has set a target of 3.5 to 4 million mt annual fisheries production of which aquaculture output is due to reach 2 million

mt and marine capture fisheries at least 1.5 to 1.7 million mt a year.

The government’s goal has been for fisheries production to grow by 3.8% annually from 2006 to 2010 and for the

growth in export value to average 10.6% a year to achieve the medium term target of boosting the nation’s fisheries

export value to US$4 billion to $4.5 billion a year.

Most marine capture fishing occurs in waters off southern Vietnam which account for over 60% of Vietnam’s marine

capture fisheries totalling around 1.8 million mt a year. Waters off central Vietnam account for about 30% of the marine

catch. A small share of the catch is taken in the Gulf of Tonkin off northern Vietnam.

According to official estimates, Vietnam’s fish stock stands at 4.2 million mt. With inshore fisheries showing signs of

overfishing in some areas, the government’s coastal fisheries policy calls for offshore fishing to be developed while

inshore stocks are better conserved and aquaculture is encouraged to further develop production and exports.

The government has set the total allowable annual marine fisheries catch at 1.7 million mt which includes 850,000mt

of demersal fish, 700,000mt of small pelagic fish and 120,000mt of large pelagic fish species.

In addition to marine fish, Vietnam’s waters are home to about 1,600 species of crustaceans including marine shrimps,

lobsters, crabs and other species of which 50,000 to 60,000mt can be caught each year. Also, there are many mollusc

species including squid and octopus for which the allowable catch has been set at 60,000 to 70,000mt each year.

Fishing is a private sector activity in Vietnam. The vast majority of fishing vessels are privately owned as most state-

run fishing enterprises have been dissolved since the early 1990s or have diversified into other business activities.

Aquaculture also has developed as a private sector industry. From 1985 to 2005 aquaculture production more than

doubled each year becoming an important source of employment and foreign exchange in the process.

According to official estimates, Vietnam has about 100,000 fishing boats which the government considers is too high

and is partly responsible for overfishing in inshore waters. As part of the 2006-2010 fisheries master plan, the

government aims to reduce the number of small fishing boats by about 40,000 vessels. Since 2008 up to one third of

the small boats have been confined to port by high marine fuel prices.

Fleet reduction target

Whether the 40,000 fleet reduction target is achieved in 2010 remains to be seen, as the Agricultural Ministry recently

has asked that fewer boats be scrapped from the fleet.

According to government figures the average powered fishing boat is fitted with a 50hp motor. About 25% of fishing

vessels are equipped for offshore fishing operations.

To reduce inshore overfishing the government aims to encourage fishermen to fish further offshore where fish stocks

are larger. Currently most of Vietnam’s marine catch is taken in waters less than 60m deep and is considered a major

cause of coastal overfishing.

To encourage fishermen to use larger fishing vessels that are better equipped for offshore fishing, the government has

started to offer subsidies of about US$3,500 a year for fishermen buying new boats fitted with an engine larger than

90hp.

The Destruction of the Filipino Tuna

IndustryTAG IT:

Written by Edwin Espejo   

WEDNESDAY, 20 JANUARY 2010

The Japanese Come to General Santos 

Marfenio Tan would like to roll back the state of the tuna industry a decade or so to where everybody was making money and

production was more than enough to fatten the bank accounts of the tuna producers at this southern outpost of the Philippines. 

Until retiring from the family-owned San Andres Fishing Industry several years ago, Tan was president of the second-biggest

homegrown tuna producer in General Santos, once a dusty and laid-back port city of 550,000 on the Sarangani Bay at the

bottom of Mindanao. 

More than anybody else, Tan has seen the unprecedented growth of a multi-million dollar industry over the last four decades

from a marginal source of livelihood to what is now a globally competitive -- and threatened -- industry. He was there at its

birth. Now he has seen it crash. And the crash of Marfenio Tan's tuna fishery is a painful microcosm of what is going on today

across the world. 

According to a February 2008 report by the United Nations Environment Program entitled In Dead Water, "fishing capacity is

now estimated to be as much as 2.5 times that needed to harvest the sustainable yield from the world's fisheries. Up to 80

percent of the world's primary catch species are exploited beyond or close to their harvest capacity, and some productive

seabeds have been partly or even extensively damaged over large areas of fishing grounds. With many traditional, shallow

fishing grounds depleted, fisheries (especially large industrial vessels/fleets operating for weeks/months at sea) are increasingly

targeting deep-water species on the continental slopes and seamounts."

Bluefin tuna, the king of the species, are basically gone, according to a wide variety of studies. Yellowfin and skipjack are far

more plentiful in the world's tropical oceans. But the fishermen of General Santos are the point men in seeing their decline.

Marfin, as Tan is known, stumbled onto what turned out into a gold mine when, on one of his purchasing trips to a local

hardware outlet, he was asked by the owner if there were tuna in General Santos. The owner, a friend, happened to have some

Japanese friends who were on a frenetic search for raw materials for canning.

When shown pictures of skipjack and yellowfin, Marfin couldn't believe that what they were catching in huge abundance was

so in demand that Japanese were shopping around in General Santos City. 

Within two months, the Japanese were already doing surveys in the city and in less than six, a Japanese cold storage ship was

anchored several hundred meters from the shoreline of what was then Lion's Beach and is now, in homage to the industry,

called Queen Tuna Park. In less than a month, the ship was full to the brim, so to speak, and it had to sail back to Japan way

ahead of schedule.

Tan said the Japanese couldn't believe what they stumbled into. "We used to bury some of our catches because there were

simply no buyers and there were no cold storage facilities then," he said.

By the mid 1970s, fruit processing giant Dole Philippines Inc. could no longer resist the phenomenal growth of the tuna

industry. Dolefil started to buy and pack fresh chilled yellowfin, which also rode into the rapid growth of the industry. Fishing

boats and equipment began to evolve from small trawlers called censuro to unay, or small purse seiners, to the super seiners

that they are today. Fish aggregating devices, a product of Filipino ingenuity, also progressed from bamboo rafts to steel

floaters. So did the engines of fishing boats from outrigger to refurbished cargo ships.

The number of fishing boats also soared. Tan said there were only 15 mother fishing boats when tuna fishing began as an

industry in the early 1970s. It grew into around 40 small trawlers by the 1990s. Today, there are morehan 200 mother fishing

boats, a handful of them ocean-going super seiners. From net exporter of fresh catch, the industry grew into exporter of canned

and processed tuna products. From a fringe livelihood and mostly underground economy, it has become a major revenue earner

and a major global player in the tuna industry. 

By the 1980s tuna canning plants had begun to sprout in General Santos. Where before excess catch were left to rot and buried

on the shores, huge cold storage facilities now dotted the city, which is host to six of the country's seven major tuna processing

plants. 

But as more and more players joined the burgeoning industry, more hands dipped into the overall catch. It wasn't long after

when efforts to cope up with the demand drove industry players to deploy more aggregation devices and to venture more and

more into the open seas. 

"The ratio of payaws and unay then was 10 to one (10 aggregation devices for every mother fishing boat)," Tan recalled. Now

each set of fishing fleet requires up to 60 aggregation devices deployed at far beyond the mouth of Sarangani Bay. 

"Before, we could already reach our FADs in three to 18 hours of sailing at six knots per hour. Today we sail between 10 to 36

hours at 10 to 12 knots to reach our fishing grounds," Tan said.

As a result, General Santos's tuna producers have forged agreements with host Western Pacific countries to enable them to meet

growing quotas and demand for Philippine-manufactured and processed tuna products, acquiring fishing rights in Palau, Papua

New Guinea, Solomon Islands and Indonesia. Venturing into the high seas also led to the arrest of Filipino fishermen and

seizures of their fishing boats in several countries such as Indonesia.

Eventually, the fishermen of General Santos put reality to the UNEP report. Last year, the Western and Central Pacific

Fisheries Commission (WCPFC) imposed a three-month tuna fishing ban in the tuna-rich migratory highway that cuts across

the Western Pacific region. The move was in response to numerous studies pointing to declining tuna stocks due to overfishing

and climatic changes. The Philippines, a signatory and member of the world body that oversees tuna fishing in the region, was

among the countries affected by the ban.

Tan however said that the commission found the temporary ban not enough to replenish the tuna stock. As a result, the

commission extended the ban to two years beginning this month. Tan, also president of the Socsargen Federation of Fishing

and Allied Industry, said the ban covers a large area of traditional fishing grounds of Filipino tuna producers. The ban is

particularly focused on fish aggregation device fishing.

The ban, however, only covers purse seine tuna fishing in international waters. "We are still allowed to fish within our 200-mile

exclusive economic zone," Tan said. Handline and long line tuna fishing, a traditional Filipino fishing method, is likewise

exempted.

But one of the areas covered by the ban, at coordinates of 135 degrees to 152 degrees longitude and one degree to six degrees

north of the equator, is a rich source of tuna stock, according to Tan. The area referred to by Tan covers more than 306,000

square miles of open seas south of Micronesia and north of Indonesia and Papua New Guinea where over 38 Philippine-flag

purse seine fishing ships are operating. Tan said the Philippines will have to comply with the ban under pain of being de-listed

from WCPFC and jeopardizing the whole tuna industry in the country. The ban, he said, is likely to affect the country's annual

tuna catch.

Industry sources forecast a 10 percent drop in global tuna catch. The WCPFC ban is part of a package of conservation

measures, spread over a period of three years starting in 2009, aimed at reducing tuna mortality by a minimum of 30 percent

from the 2001-2004 annual average. 

Feeling the pinch

Although the ban is barely a month old, its effect is already being felt. Tan said fishing companies have started pulling out their

aggregation devices in the no-fishing zone and redeploying them west of Mindanao and within the Philippines Exclusive

Economic Zone. Dexter Teng of TSP Fishing said as early as last year, when the three-month ban was imposed, they already

started pulling out their aggregation devices. 

But several tuna producers were caught flatfooted. onathan Quilat, who just finished building two fishing boats at a cost of P16

million each (US$350,000), is now left holding an empty bag. The boats were supposed to sail in the no-fishing zone in the first

quarter of this year.

"I will have to wait until the ban is lifted before deploying those boats," he said. "We hope the tuna stock will increase.

Eventually these tuna will find their way to our territorial waters,"  

In the long run, Marfin Tan acknowledges that the closure of international waters to tuna fishing will boost the local industry.

"That means tuna species will be able to spawn in the Moro Gulf and Celebes Sea where mature and adult tuna end the cycle of

their migratory path," he added.

Tan nevertheless reckoned that it will take 10 to 15 years for the tuna stock to fully recover to the level of the 1960s during his

fateful visit to the hardware store and his introduction to the Japanese looking for tuna. He urged the government to speed up

research and to come out with empirical data on the state of tuna stocks in Philippine waters. Over the past five years,

Philippine tuna catch have leveled off despite the increase in the numbers of fishing vessels.

"We want to know what is the current biomass of tuna species in the Celebes Sea (also known as the Sulawesi Sea) and Moro

Gulf," Tan said. But he agrees that many fishermen will be displaced by the ban and if unregulated the retreat of tuna producers

into Philippine waters could further strain tuna resources there.

Tuna fishing, according to the General Santos government, is a P50 billion (US$1.08 billion) industry in the Philippines,

contributing some 4 percent of gross national product, directly providing livelihood and employment to over a million

Filipinos.

"Eighty percent of our vessel crew has not gone to college. Once they are displaced, it will cause a big problem," Tan said.

Tuna

Canned tuna accounted in 2007 for % of all EU imports of fish and fishery products. The graph below illustrates the 10 main countries from which the EU imported canned tuna in 2007 - Seychelles accounted for 18%, Ecuador for 15%, closely followed by Thailand and Mauritius (14%).

Ten main countries from which the EU imported canned tuna in 2007

Tuna is a very sensitive commodity for the EU, in particular canned tuna and tuna for use in the processing industry. The EU tuna sector includes a large fishing fleet (88 vessels, comprising 20% of the world fleet) as well as a significant canning industry. The fleet - the world’s largest tuna fishing fleet - is primarily Spanish and French-controlled while the canning industry is located in Spain, France and Italy. The sector is important in these countries, not only because of its long-standing tradition, but because it is a major source of employment and revenue, particularly in coastal communities where other employment opportunities may be limited.

EU Import Regime

The products of most concern to the Community industry are canned tuna and tuna loins (a semi-processed product for use in canning). The MFN import duty rate for these products is 24%. However, as part of its efforts to ensure an adequate supply of raw material to the Community processing industry, the Community has suspended tariffs on imports of unprocessed tuna destined for the sector. On the other hand, the Community opened in 2004 an erga omnes autonomous tariff quota for tuna loins of 4,000 tonnes at 6% duty (Council Regulation (EC) No 379/2004). This quota was increase in 2007 (Regulation (EC) No 824/2007), being 8,000 tonnes in 2007, 9,000 tonnes in 2008 and 10,000 tonnes in 2009.

At the same time, it is important to note that the principal exporting countries of these products enjoy unlimited duty-free access to the Community market via either the ACP tariff preferences or through the GSP+ regime. Of the GSP+ beneficiary countries, exporters of canned tuna and tuna loins are located in Latin American countries. This duty free access to the EU market reflects EU interests that have made significant investments in tuna canning in certain ACP and Latin American countries.

In addition, there was a reduced tariff quota for canned tuna which was opened in July 2003 following a WTO mediation between the Community and Thailand and the Philippines. The mediation, which examined the extent to which these countries' legitimate expectations had been impaired by the duty-free access accorded by the Community to imports of canned tuna from ACP countries, resulted in the Community opening a quota of 25,000 tonnes at 12% duty, i.e. a 50% reduction compared to the MFN rate. The volume of the quota was subsequently increased on 1 July 2004 to 25,750 tonnes in accordance with the conclusion of the mediation. This quota expired on the 30 June 2008 and has not been extended.

Tuna loins

It is worth noting that, in recent years, imports of tuna loins into the EU have been increasing. Since the mid-1990s the Italian processing industry has increasingly used loins as the raw material for canned tuna, followed by France. Recent years have shown there has even been an increase in the use of imported tuna loins by the Spanish canning industry. This probably reflects an important cost saving, by importing raw material free of duty combined with decreased labour costs due to using semi-processed raw material.

Salmon

In 2007, the EU imported around 540,000 tonnes of salmon worth €2 billion. Salmon's share of total EU fish imports was almost 20% in 2007. The EU imported mainly fresh or chilled salmon of heading 0302, followed by salmon fillets. The main EU supplier for Pacific salmon is Norway, with more than 410,000 tonnes accounting for €1.5 million. European markets are the main destination for Norwegian salmon exports according to the Food and Agriculture Organisation (FAO).

According to the FAO, salmon's share in world trade has increased strongly over recent decades. This is mainly due to aquaculture in Northern Europe and in North and South America. In 2006, a merger in the Norwegian salmon industry created the world's largest salmon producer, producing around 20% of global production, with farms in Norway, Chile, Scotland and Canada. Other consolidation in the sector continues.

Tuna

Japan is the world's largest producer and market for fresh and frozen tuna and tuna based products (excluding canned tuna). On average, a Japanese household spend $77 on tuna per year, well-above the $43-per-year average for shrimp, the second-most consumed fish and seafood product.

Consumer spending on tuna increases dramatically in December, particularly in the last week of December (leading up to most important holiday in Japan which is the shogatsu (New Year).

Blue fin tuna, southern blue fin tuna and big eye tuna are the highest priced tunas.

Tuna Market Report - Europe - June 2009

Imports of canned tuna into the EU marginally increased by 1 per cent to 396 400 MT last year from 391 400 tonnes in 2007. This report was prepared by Helga Josupeit, FAO GLOBEFISH 2009

Canned tuna imports into the EU recovered in late 2008

Ecuador was the leading canned tuna supplier to the EU with its exports significantly higher by 37 per cent to 88 600 tonnes in 2008. However, exports from Thailand, the second largest supplier, dropped 7 per cent to 52 300 tonnes. The Philippines managed to get very close to Thai canned tuna exports to the EU by increasing its exports by 5 per cent to 52 100 tonnes during the period under review. 

The slight overall increase in imports was due to higher purchases in the second quarter when prices came down. In fact, high canned tuna prices in the first half of 2008 led to reduced canned tuna imports into the main European markets during this period. Buying interest recovered as prices declined sharply in the last quarter of the year. On an annual basis, however, 2008 imports of canned tuna into some major importing countries were generally lower than in 2007. German imports declined by 5 per cent, French by 22 per cent, and Italian by 15 per cent. 

The only exception to this trend was the UK, the main European canned tuna importing country. Imports there went up by 10 per cent to reach a new record of 144 000 tonnes in 2008. The UK thus accounts for about 36 per cent of the whole EU canned tuna import market. Strong increases in imports of canned tuna from the Philippines and Ghana were the main reason for higher UK imports, while Mauritius, the main supplier of canned tuna to the UK market maintained its top position. 

The French canned tuna market remains dominated by four countries: Côte d’Ivoire, Spain, Seychelles and Madagascar. Côte d’Ivoire lost ground in 2008, after some recover in the previous year. The country has difficulties in accessing raw material at convenient prices, but exports are likely to increase this year. Spain and Seychelles canned tuna exports to the French market also declined in 2008. However, the sharpest fall was recorded for Madagascar, suffering from lower catches in the Indian Ocean, also due to the presence of pirates in the main tuna catching areas. 

Thunnus Overseas Group (TOG) is the leader in the French canned tuna market with 25 per cent of the market share. In 2008, the company processed, packaged and sold about 50 000 tonnes of tuna and generated approximately USD 166 million in revenues and currently employs approximately 3 200 people in the Côte d’Ivoire and Madagascar. The company is an aggregation of six operating companies and holdings, including: Pêche et Froid Cote d'Ivoire and SCODI, which are Ivorian tuna processing companies; PFOI, a Madagascar-based tuna processing business; and Pêche et Froid International, Scodi International and Conserverie des Cinqs Oceans, the corresponding marketing and distribution companies. Some of the leading retailing chains in Europe are among TOG's key customers, including Auchan, Carrefour and Leclerc. 

Total canned tuna imports into Germany were 80 600 tonnes in 2008, down from 85 100 tonnes in 2007. Ecuador overtook the Philippines as the main supplier to the German canned tuna market in

2008. The reasons for this are manifold: raw material prices for tuna were lower in Ecuador than in Asia during a good part of 2008, thus the country could offer tuna at a lower price than the Asian competitors. In addition, Ecuador is favoured by a zero tariff, while the Philippines, Thailand, and Indonesia have to pay the 20.5 per cent tariff, which makes their product too expensive. In addition the Ecuadorian-German Chamber of Industries and Trade put quite some emphasis on the German market for fishery products lately, and managed to establish good trade connections. 

Spain, Italy, France and Portugal are the producers of canned/pouched tuna in the EU, mainly concentrating on high value products. Over the years, canners in these countries have been importing more processed raw materials such as cooked tuna loins and less of whole raw frozen fish to cope with the high production costs. The trend persisted last year despite the economic recession and the rising tuna prices worldwide. The average import price of cooked tuna loins in 2008 was USD 5.92/kg compared to USD 4.98/kg in 2007 and USD 4.10/kg in 2006. Taking advantage of the duty free and ‘no quota’ status, ACP region remains the main supply source. Exports from Asian sources namely Thailand, Viet Nam, the Philippines and Maldives fell behind 2007. But China exported more cooked loins to this market that reached almost 2 000 tonnes - nearly a three fold increase from 2007. Compared to 2007, total imports of whole frozen tuna from third countries were 11 000 tonnes lower in 2008 at 122 200 tonnes; of which 87 200 tonnes were yellowfin and 27 200 tonnes skipjack. 

Tuna market unsettled

Prices of canned tuna raw material have experienced various ups and downs in the opening months of the year, going from USD 1 600/tonne in December 2008, down to USD 900/tonne in January 2009, up to USD 1 100/tonne the following months, down to USD 950/tonne at present, but with strong indications of new price hikes in coming months. This situation makes it difficult for producers and traders to agree on a stable price for canned tuna. As some price increases are likely for the end of the year, importers try to buy as much as possible at the present discounted price level. 

FISH AND FISHERY PRODUCTS

MARKETS AND PRICES

Prices of fish and fish products are generally under downward pressure, as falling consumer demand is hurting

seafood sales in all markets. The only species that have spared the price fall are those that have experienced

problems that have constrained output. They include some wild whitefish species and yellow-fin tuna but also

farmed salmon and tilapia, the prices of which remain firm. Other farmed species such as European seabream and

turbot have seen prices falling to record-low levels, due to large increases in production. On the other hand, catfish

prices in Viet Nam, which tumbled earlier this year, are now recovering. Shrimp prices remain low.

International shrimp prices, which were already depressed before the financial crisis, are most likely to weaken

further in the course of the year, as import demand is expected to slow down in all main markets. The European

Union, which until recently was an exception to otherwise depressed shrimp markets in Japan and the Unites

States, is now also showing signs of weakness, with the volume of shrimp imports down 10 percent to 337 600

tonnes in the first half of 2008. Only France increased its purchases, whereas Spain and Italy registered massive

drops.

Voluntary fishing bans by the Ecuadorian and Japanese fleet have contributed towards reduced supply and record

prices on many tunaspecies including yellow fin. In early September 2008, the catches of skipjack in the Indian

Ocean improved significantly pushing it’s price down to EUR1 120/tonne. Meanwhile, the price of cooked and frozen

tuna loins in Europe continued to increase due to the increasing cost of raw material in Ecuador.

Squid prices remain low, due to limited buying interest in Japan and the rush by Argentine squid fishing fleet to sell

at discounted prices. This situation is expected to persist until early 2009, when the new fishing season in the

Southwest Atlantic starts. By that time, inventories dating back to 2007 will have reached the market and buying

interest is expected to recover strongly.

The world octopus market was characterized by ample supply in the second and third quarter of 2008, with prices

declining somewhat. However, with demand in all main markets strengthening, prices of octopus are likely to go up

somewhat in coming months. In Japan, New Year’s festivities are generally an excellent sale period for octopus,

while in Europe demand for octopus is strongest in summer months.

The overall situation in the European bass and bream market is mixed at the moment: bream prices are

extremely weak, giving producers a reason for concern. Bass prices, on the other hand, are holding up well,

resulting in a record price differential between the two species. In the next few months, demand is expected to

remain weak, but it may strengthen again before Christmas. The cyclical nature of production is likely to reduce

supply during the winter months, which may underpin prices for both species.

The market for farmed salmon has been remarkably stable, partly as a result of supply problems in Chile. Prices,

although lower than in 2007, are still remunerative for most producers and could start to rise up until early next

year, reflecting the effect of Chile’s reduced production on global supplies.

After severe production problems in 2007 and early 2008, tilapia prices have skyrocketed, making tilapia

production attractive also for new producers, including many companies now suffering from low shrimp prices.

Increased output from both China and other producers is therefore likely to boost availabilities and bring prices

down to more normal levels in 2009.

Strong price increases are reported for catfish as processors are rushing to meet increasing demand from Russia,

Ukraine, East Europe and countries in the Near East, resulting in a more than doubling of exports from Viet Nam in

the first half of 2008.

The main fishmeal importer, China, has returned to the market in 2008 with strong buying interest, leading to

relatively high prices in the second quarter. In the third quarter fishmeal prices trended downward, but much less

than soybean meal. In September 2008, fishmeal was priced at USD1190/tonne, about USD150/tonne more than in

September 2007 and only USD50/tonne below the July2008 peak. Some downward movements in prices may be

expected in the coming months, although much will depend on the fishing quotas that still have to be set in Peru. If

kept at 2million tonnes, as expected, prices could fall, given the reluctance of the European market to purchase at

the present price levels and the expected slow down of demand in China, which is currently holding large stocks.

Fish oil prices reached an all time high of USD1 815/ tonne in July 2008, but since then they have started to

soften, in line with vegetable oil prices. Demand from the fish oil capsule industry was extremely low in the third

quarter of 2008, in anticipation of the tougher European Union norms. The present market situation points towards

a decline in fish oil prices in the coming months, as buyers appear well covered, producers have large stocks and

the prices of the competing vegetable oil prices are weakening. In addition, the new season in Peru is likely to add

substantial quantities of fish oil to the market.

 

Major revision to 2006 production statistics by China

China has reported that it is in the process of revizing its fishery and aquaculture production statistics

downwards, based on the outcome of the National Agricultural Census of 2006, which, for the first time,

covered fisheries and aquaculture sectors. Revised statistics are expected to be released in 2009, which will

be reflected in FAO statistics. In Food Outlook, Tables 11 and Table A20 (in the STATISTICAL APPENDIX)

include preliminary figures received from China for 2006. Following this revision, world capture and world

aquaculture fishery productions in 2006 are now 2.4 million tonnes and 3.3 million tonnes lower than

previously reported, respectively.

 

In the global tuna industry, the Asia-Pacific region is generally regarded as a major supply base for fresh, frozen and

canned tuna. Geographically located in Asia Far East, Japan is the world’s largest tuna producer, importer and consuming

country. It has also continued to be the largest market for fresh and frozen sashimi tuna. 

Besides Japan, there are other emerging markets too in the Asia / Pacific region where consumption of both canned and

non-canned tuna and tuna based products including sashimi has been growing quietly. Besides exports, tuna products are

being introduced to the domestic markets as well. Tuna loins and steaks have established niches in the fresh fish section

of many Southeast Asian supermarkets. Sales of tuna and tuna based products are showing positive growths in the Asia/

Pacific tuna producing countries. 

Outside Japan, in some oriental markets, fresh raw tuna is being introduced as part of the cuisines used for auspicious and

occasional dinning. 

JAPAN 

During 2001-2003, Japanese tuna boats (mostly distant water vessels), landed nearly 400 00 MT of fresh and frozen tuna

annually. On the other hand, imports of fresh and frozen tuna which are mostly sashimi grade, averaged about 375 000

MT/year during this period. This makes Japan the largest tuna producing and consuming country in the world accounting

for nearly one fourth of the annual global tuna supply.

Reduced landings of skipjack and bluefin were observed during the first ten months of 2004 that contributed to an overall

fall in total catches by distant water tuna fleets by 11.6% compared to the same period in 2003.

Fresh/chilled sashimi tuna 

After continuous declines during 2000-2003, Japan’s annual imports of fishery products increased considerably by 16.65%

in value and 4.81% in quantity in 2004 compared to 2003. However, imports of fresh/chilled tuna failed to recover in 2004

and were at a record low of 56 481 MT at a value of ¥59.34 billion or US$ 572.25 million (1US$=¥103.7). Reduced imports

of yellowfin (-3,793 MT) mainly contributed to the overall decline in the supply of imported fresh/chilled tuna. Indonesia,

Sri Lanka, Taiwan and Thailand were the leading exporters of fresh yellowfin tuna to the Japanese market. Notably,

domestic landings (by distant water tuna boats) of fresh yellowfin during the first ten months of 2004 were also lower than

the year before which stood at 6,900 MT against 10,600 MT in 2003. 

On the other hand, Japan imported more farmed bluefin tuna particularly from Mexico (+103% at 3,849 MT) and Spain

(+6% at 2,693 MT). Wild caught fresh bluefin supplies however, declined particularly from South Korea (-74%), the leading

supplier of bluefin, contributing to the decline in total fresh bluefin imports last year. 

This is also an indication of a negative market growth for sashimi tuna in the Japanese market. Consumer demand for

fresh/chilled farmed southern bluefin has been waning in the Japanese market due to the strong oily odour in farmed fish.

Subsequently, prices of fresh fish have weakened in recent years and imports of air-flown southern bluefin declined last

year to 3,057 MT from 3,275 MT in 2000.

Frozen Tuna 

Japanese frozen tuna imports in 2004

totalled 327 980 MT with a value of ¥139.5

billion (US$1.35 billion) which accounted

for 9.41% in quantity and 8.53 % in value

of total fishery imports in that year.

Compared to 2003, frozen tuna imports

increased by 4.35% in volume. Supplies of

northern bluefin which were higher than

the year before were dominated by Croatia

(3492 MT), followed by Turkey (1094 MT),

Libya (658 MT) and Spain (417 MT).

Supplies of air-flown fresh tuna from these

sources also increased last year. The

leading suppliers of bigeye were Taiwan,

Korea RP, China PR and Seychelles.

Taiwan, Korea RP and the Philippines were

the top three exporters of frozen yellowfin. 

OTHER ASIA 

The Asia/Pacific remains the largest producing area for canned tuna. The leading canned tuna producing countries are

Thailand, the Philippines, Indonesia and Malaysia. Thailand which outsources most of its tuna raw material for canning is

the largest canned tuna producing country in the world. Thai imports of frozen tuna peaked in 2003 at 598,519 MT at a

value of US$507 million (Baht 20.29 billion); 80 % of this was skipjack. In 2004, Thai imports of frozen tuna fell by 7% in

quantity against the year before which could be attributed to the lower catches of skipjack worldwide followed by high

prices in the international market. Frozen skipjack price peaked at US$ 1100/MT (c&f Thailand) in October 2004 against

US$870/MT recorded in October 2003. Skipjack catches remain poor till to-date particularly in the Western Tropical Pacific.

Asian Tuna market 

It all started with the introduction of canned tuna in the regional market in the late 1990s when the traditional western

markets for Asian canned tuna ceased to grow. With growing disposable income and urban Asians’ preference for healthy

and trendy food, coupled with the existing preference for fishery products in the region, the market has moved further

during the last few years. The regional market for canned tuna has expanded, and a new market for fresh/chilled tuna has

emerged where sashimi and sushi products are gaining popularity in urban cities in the Asia Far East. 

Together with traditional tuna in water and tuna in oil, Asian canned tuna producers make non-traditional products

suitable to local tastes. For Southeast Asian consumers, 5-10 spicy and flavoured tuna cans are available in the market.

Supermarket shelf-space for value-added canned tuna has also increased over the years. In response to the growing

demand for value-added products, in 2004, SAFCOL Australia in collaboration with Consolidated Group in Malaysia

introduced tuna in aluminum pouch and also in small ring-pull cans for Asian consumers. The products are made in

Thailand.

Tuna in the developing Pacific 

The tuna canning island nations in the Pacific are Papua New Guinea (PNG), Solomon Islands and Fiji. Production of canned

tuna in PNG - the largest developing island nation in the Pacific, increased reasonably during the last few years. The

European Union is the main market for PNG’s canned tuna. Besides supplying to the domestic market, PNG’s canned tuna

are also exported to other inland nations in the Pacific where canned black-meat tuna is a favourite product. 

During the recent past, canned tuna has taken over the market share of canned mackerel in Papua New Guinea. Tuna

packers in PNG and in Solomon Islands produce tuna black meat for their domestic and regional island markets. High

value canned tuna (made in Thailand) such as smoked tuna fillet with various flavours are marketed in Australia and New

Zealand. These products are also available in supermarkets in PNG and Fiji for the affluent residents. 

Papua New Guinea 

Making use of the local raw materials, supermarkets in the large cities in Papua New Guinea, offer both fresh and frozen

tuna loins and steaks to their customers.

The country has >6 million in population with many of them living in the highlands. Tuna processors in the coastal cities

produce frozen tuna fillets for these affluent highlanders. Reportedly demand for such products is growing there too.

Efforts are in the pipeline to process more value-added products such as tuna loaves, sausages, burgers and nuggets

making use of non-sashimi grade yellowfin and also skipjack for the domestic market in PNG. Tuna producers in PNG want

to sell more in the domestic market which is also being supported by the government who wants make more healthy

protein available to the domestic population. Both the parties have a common goal in mind…..sell more tuna in the

domestic market. 

RECENT TRENDS IN SOUTHEAST ASIA 

Japanese food is in vogue in urban Asia and demand for sashimi and sushi products is on the rise. This has created

opportunities for selling sashimi grade tuna particularly in urban Asian cities such as Shanghai, Guandong, Beijing, Dhalian

(in China), Hong Kong, Taipei (in Taiwan), Singapore, Kuala Lumpur (Malaysia), Bangkok (Thailand) and Ho Chi Minh City

(Vietnam). Many holiday resorts in the Asian Far East have also added sashimi tuna in their buffet lunch and dinner

menus. Fresh tuna loins treated with carbon

monoxide are exported to Hong Kong and Taiwan

regularly which are used for sashimi and sushi

products.

Lately supermarkets in Singapore and Malaysia have also introduced fresh tuna loins in the seafood section. Fresh sashimi

is also an item offered in many upmarket hotels and restaurants in the Asia Far East. 

China, housing the largest population in the world, is potentially a big market for sashimi as well as canned tuna.

Nowadays, Chinese tuna fleets operating in the Pacific Ocean are selling part of their catches on the mainland. Last year,

the leading Japanese conglomerate Nissho Iwai launched a promotional campaign for sashimi tuna in China. Canned tuna

consumption in China is still very small. However, considering the market potential, Dongwon of South Korea has set up a

joint venture tuna canning facility in China. Canners in Thailand are now waiting for lower tariffs on canned tuna.

Raw fresh tuna is now used for preparing the auspicious “Yee Sang” or

prosperity dish served during the Chinese New Year festival.

Traditionally, freshwater carp has been used to prepare "Yee Sang".

However, salmon and, more recently, tuna have been increasingly used

due to the colour factor. Red and orange are popular and auspicious

colours among oriental Chinese.

Tuna

An IntroductionPeople either love it or hate it and that it is the rare individual who does not have an opinion about tuna. We cook our tuna slowly, submerged in olive oil, in the Italian style, and adjust it our taste. One bakes it over coals in the Balinese fashion or one grills it to make a salad nicoise. One may even try steaming, baking and pan-frying the tuna; one can even mince it to make a tartar. Tuna's natural affinity is to be cooked until nearly dry and soaked in a sauce that provides both taste and moisture. Given its large flake, tuna is more durable than most fish, and it remains more intact. Its rich natural oil opens like river, capable, if not downright eager, to blend with a remoulade, or mayonnaise. Commercially canned and pouched food may be safely stored for several years as long as the container is not bulged. 

Tuna is now one of the most important seafood products in global trade. But rising demand has left most tuna stocks either depleted or fully exploited.  Because of its taste, texture and versatility, tuna is enjoyed around the world and served under many different names: 

Dutch — Tonijn French — Thon German — Thunfisch

Greek — Tovoc Italian — Tonno Portuguese — Atum

Russian — Tyheli Spanish — Atun Swedish — Tonfish.

 

What is Tuna?Tuna comprises of some discrete species lodging in the deep sea waters belonging to the family Scombridae, mostly in the genus Thunnus. Tunas are fast swimmers with their speed being clocked at 70km/h(45mph). Many varieties of tuna are warm-blooded. 

Unlike most fish species which have white flesh, tunas have pink to dark red colored flesh. The red coloring comes from tuna muscle tissue's greater quantities of myoglobin, an oxygen-binding molecule. Owing to this tuna naturally has a stronger, more robust flavor than whitefish.

Depending on the variety, weights average from 10 pounds up to 600 pounds per fish.

Found in all oceans around the world with the exception of the polar seas, tuna inhabits the upper and

middle layers of ocean water to a depth of 1,600 feet or more (500 meters), depending on size and species.

In recent years, tuna has become more than just a basic food item. Its high nutritional value has led to increased consumption and popularity, especially with the opening of sushi bars in major cities worldwide. A Brief Historical BackgroundTuna has been fished from the warm, temperate parts of the Mediterranean Sea and the Pacific, Atlantic, and Indian Oceans since ancient times. People have been enjoying tuna as a food ever since time immemorial. Fresh tuna has been enjoyed by coastal populations throughout history. Smoked and pickled tuna was widely consumed since ancient times. In traditional Japanese and Taiwanese communities, tuna has formed a major part of their diet and subsistence for over 1000 years. 

Since 1950s, Japan and Taiwan have been the biggest fresh and chilled tuna producers and consumers in the world, defeating traditional counterparts in Western Europe where tuna has been traded commercially from as early as the 18th century.

Globally, tuna consumption, catch and production has been a prominent industry in Spain, Germany and Italy, with Spain being the third-biggest canned tuna producer in the world and German recording a history of tuna consumption since the 15th century. However, in the last 25 years, the United States has become the world's leading market for canned tuna production and consumption. Japan and the United States consume about 36 percent and 31 percent, respectively, of the world's catch. However, the global trend and market for tuna is evolving. Traditional monopolies are constantly challenged and new markets are fast emerging. We have new markets rising in the Middle East and China. With the advent of technology and better scientific knowledge of tuna stock, preservation, migration and breeding patterns, new alternative fishing grounds can also be studied and tapped. Better infrastructure and development plans, coupled with more efficient port management and operations, are needed in ports. 

Etymological BackgroundThe word 'tuna' dates back to 1880 in print and its origin is attributed to Spanish American derivation of the English counterpart, tunny. The word tunny apparently originated from the Latin Thunnus, the name of its scientific genus.

Commercial Tuna VarietiesTuna is regarded as one of the world's most valuable commercial species. It is fished in over 70 countries worldwide, and marketed in fresh, frozen, or canned form. Depending on the variety, fresh tuna is available seasonally - generally beginning in late spring and continuing into early fall. Frozen tuna is available year-round and is sold in both steaks and fillets.

 The most important commercial species include:

Albacore  -  A high-fat variety, rich in omega-3 fatty acids, the albacore has the lightest flesh, white with a hint of pink, and is the only tuna that can be called white. Its mild flavor and prized white flesh make it the most expensive canned tuna.

Yellowfin -  Also called ahi, the yellowfin tuna is usually larger than albacore, reaching up to

300 pounds. Their flesh is pale pink and must be called "light", with a flavor slightly stronger than albacore.

Bluefin -  Among the largest tunas are the bluefin, which can weigh over 1,000 pounds. Young bluefins have a lighter flesh and are milder in flavor. As they grow into adulthood, their flesh turns dark red and their flavor becomes more pronounced. Bluefin tuna is used in sushi and sashimi and is not canned.

Skipjack - Similar in flesh to the yellowfin, skipjack can weigh up to 40 pounds but typically range from 6 to 8 pounds. The fish get their name because of their lively movement in the water, where they seem to skip along the surface. Also known as arctic bonito, oceanic bonito, watermelon and, in Hawaii, aku, Skipjack is the most commonly canned fish on the market today.

Bigeye - Known in Hawaii as ahi, bigeye tuna are similar in general appearance to yellowfin tuna and are the deepest ranging of all tuna species, with a range of greatest concentration at 150 to 250 fathoms. With its mild flavor and desirable fat content, the bigeye is often used in canned tuna.

Where Tuna Are HarvestedAlthough tuna is found in all major bodies of water except the polar seas, the majority of the tuna supply comes from the Pacific Ocean - which accounts for 2.3 million tons or about 66 percent of the total world catch. The rest of the commercial tuna sold around the world comes from the Indian Ocean (20.7 percent), the Atlantic Ocean (12.5 percent) and the Mediterranean and Black Seas (0.8 percent). 

Health and Nutritional Aspect Tuna is an affordable, great-tasting and versatile pantry staple with a wealth of health benefits. Preparing meals and snacks with canned or pouched tuna is a simple way to replace foods high in saturated and trans fats, and ensures one is getting the recommended 12 ounces of seafood per week.

Tuna is an excellent source of niacin, selenium, and protein. It is also a very good source of vitamin B6 and thiamin. In addition, it is a good source of omega-3 fatty acids, phosphorus, potassium, and magnesium.

However, tuna has more to offer than just great taste and nutrition. Tuna can also help lower blood pressure and cholesterol. The omega-3 fatty acids - found in abundance in fatty fish like tuna - can help lower the risk of heart disease, ease the pain of arthritis, reduce asthma complications, and is essential in the growth and development of young children.

The protein in tuna is of high quality - containing an abundance of essential amino acids, and is easily digestible for people of all ages. Lower in fat and saturated fat than beef, poultry or pork, canned tuna not only provides a rich source of lean protein, omega-3 fatty acids, vitamins and minerals, but also is low in cholesterol.

Potential Forex  Resource For India Tuna is considered a potential export resource in India. We export tuna products to southeast and West Asia. The European Union, Japan and the U.S. have shown interest in importing the fish. Yellow-fin, big-eye and skipjack varieties of tuna are found in the Indian coastal waters, mostly for a period starting October. The Indian tuna is available in various value-added forms, such as fillets, steaks, loins and ‘sashmi’ grade. 

Exploitation of tuna resources is one of the focus areas for the Marine Products Export Development Authority (MPEDA) of India. Catching tuna needs expertise and special fishing gear. Fishing vessels have to be equipped with suitable equipment. With government assistance vessels have been converted into ‘monofilament long-lining system’ enabling them to catch tuna. The authority has hired the services of an expert from Australia to train Indian fishermen in tuna long-lining and onboard handling. Regional workshops on value-added products of tuna are being organized. MPEDA has also established a society called Netfish Network, with headquarters in Kochi, to carry the

message of fish quality and environmental conservation to the grassroots level. With these measures, it expects a quantum jump in the exports of tuna products.