TUNA TRADE IN ASIA

Fatima Ferdouse INFOFISH

TUNA 2012, Bangkok

Global Canned Tuna Trade

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2000200120022003200420052006200720082009

World C anned Tuna Imports (MT)

Oc ea nia

Afric a

Asia

Americ a s

E urope

Imports increased steady and strong in Asia (mainly Middle East) , Africa and Latin America

• Marketing strategies have taken new directions in Asia .

• In export trade , there is a strong focus on the Middle

East , Near East and West African markets.

• However, the existing markets in East Asia did not show much growth for non-canned or CANNED TUNA in the recent years ,although demand and sales of other high value seafood are on the rise in many regional markets

Diversification in Asian Tuna Trade

Trends in Asia’s Tuna Trade

Exports of frozen tuna are strong to the regional markets :

• Japan (for sashimi grade tuna)

• Thailand ( for canning raw material)

• Raw material imports are growing in China and in the Philippines

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Exports (tons)

Fresh

Canned

Frozen

0 100000 200000 300000 400000 500000 600000

PNG

China

Indonesia

Philippines

Thailand

2010 2009 2008 2007 2006

Tons

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2006 2007 2008 2009 2010 2011

Thailand

PhilippimesIndonesia

China

Thailand is obviously the industry leader

• Supply gap is extremely wide compared with the others.

• Market diversification is strong to non-traditional markets

CANNED TUNA EXPORTS

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2008 2009 2010

Others Lebanon Kuwait Tunisia Yemen Jordan UAE Israel Syria Algeria Saudi Arabia Libya Egypt

The Arab Region: Canned tuna exports from Thailand, Indonesia, Philippines and China to Middle East and West African markets increased significantly

It is possibly the 3rd largest canned tuna market area in the world ; imported nearly 200,000 tons of canned tuna in 2010 .

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2005 2006 2007 2008 2009

Others Australia Japan UAE Saudi Arabia Singapore Hong Kong Kuwait Canada EU USA

-------except in the Philippines- the region’s second largest producer/ exporter of canned tuna .

Tons

Exports fell by 8% and 23% in 2010 and 2011

Tuna and food security

• Tuna prices increased world wide and it is no more a cheap seafood in the producing countries whether yellowfin or skipjack .

• Canned tuna used to support the national food security programme in the Philippines . Today it is not affordable to many households.

• In Maldives where tuna consumption is possibly the highest in the world . Its high price has also affected domestic consumption.

Tuna Trade in China is Growing

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2009 2010 2011

C hina: F rozen tuna trade

Imports

E x ports

Frozen tuna imports increased for reprocessing canned tuna and cooked loins .

While canned tuna exports rise reasonably, imports for domestic consumption are comparatively small in China. .

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2006 2007 2008 2009 2010 2011

China: Canned Tuna Trade

Export

Import

Looking at the market potential, non- regional producer promotes

canned tuna in China .

China’s Consumer Market

•In 2010, China became the world’s second largest economy in the world

•Seafood consumption increased from 11.5kg in 1990 to current level of over 25 kg/per capita and expected to reach to 36 kg in 2020 . • Over 200 million middle income consumers are served by over 100 000 supermarkets • China has more than 100 cities with urban population more than 1 million •900 million rural consumers and increasing urbanization

Tuna Import Trends in Asia

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including Japan (tons)

Frozen

Canned

Fresh

0 100000 200000 300000 400000 500000 600000 700000 800000 900000

2009

2010

2011

Frozen Tuna Imports for reprocessing ( in tons)

Thailand

Philippines

China

Canned Tuna Import Trends • This market segment

did not show much growth in Southeast Asia , although demand rises for other high value seafood including high-priced canned fish.

…For example, southeast Asian retail demand for conventional canned tuna softened but increased for canned ‘sardine and anchovy in olive oil’.

Intra –regional trade for cooked loins increased among the Asia –Pacific countries .

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2004 2005 2006 2007 2008 2009 2010 2011

Prepared/Canned Tuna Imports (excl Japan) - MT

Indonesia S Lanka S.Korea China S'pore Malaysia HK Taiwan

Retail prices in Southeast Asia range from US$1.50-3.00/can ----- much higher than the US

market

Omega-3 and ‘Olive oil’ is a better choice to many health conscious consumers ! Price: US$1.56/ can, 6oz

The regional tuna market - non-canned or canned , has been relatively flat in the recent

years • Following the general price

trend world wide , fish prices increased in Asia. But that trend did not hamper high value seafood imports into many Asian markets.

• Norwegian Seafood Council runs strong campaign in Asia for salmon , but there is v-e-r-y little or almost no promotion for tuna or tuna products in the regional markets.

In catering trade , tuna is being increasingly replaced with salmon for sashimi and sushi

preparations

Salmon promotion is wide spread in urban Asia, compared with tuna

Conclusion and Outlook Production base : Change in raw material requirements Thailand will continue to dominate canned tuna

production and exports in the global market. But expected to export less and import more cooked

loins in future. Thus there will be opportunities to sell more cooked

loins to Thailand from China, Indonesia, India and PNG

Product, Image ,Price : Though produced in Asia, canned tuna is not a cheap

seafood in the regional market . At the same time, it does not have the image of a high QUALITY /high value seafood to consumers who are willing to pay “premium price” for the preferred quality and attractive packaging.

---In general quality and ‘getup’ of canned tuna need to be improved to attract potential customers , particularly in Southeast .

Quality and consumer preference : Consumers in southeast Asia (Malaysia, Singapore,

Indonesia, Brunei) often associate high quality canned fish with olive oil. Today, sardine in olive oil sells at higher price than canned tuna.

Influence of Arab food culture: Associated with the influx of

Arab visitors and tourists and temporary residents in the region , there is a strong influence of Arab food on southeast urban population, particularly the upper middle class. Hence canned tuna with olive or olive oil is currently a popular choice.

This temporary foreign population is a good consumer base for high value canned tuna . In summer, many of them spend 3-6 months in Malaysia and Thailand

Seafood Market Growth in Asia will Influence Canned Tuna Consumption

The demography : The largest regional population , their rising disposable income and preference for seafood will induce demand for canned tuna . For the preferred quality, these consumers are ready to pay premier price.

• Large retail market : Asia- Pacific and Central Asia regions will grow to take a 41% share of the global retail food market in 2020, compared with 33% in 2003.

China is already the largest food retail market superseding the USA.

By 2020 India will be among the top 5 food retail markets

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