Presentation 11. Iván Prieto
Workshop on Global Tuna Demand, Fisheries Dynamics and Fisheries Management in the EPO, 13 -14 May 2010
EVOLUTION OF ECUADORIAN
INDUSTRY
Ecuadorian Tuna
Industry
• In Ecuador, industrial level of fishing emerges in the
1940s.
• First plants were installed from the 50s.
• The tuna industry boom gained momentum in early
1990, stimulated by the EU GSP.
• With the declaration of country "Dolphin Safe" and the
delivery of ATPA, it access to U.S. market.
EXPORT OF CANNED TUNA AND LOIN IN
TONS
• In 2002 was delivered the ATPDEA. Ecuador expanded
its exports to the U.S. with tuna processed into bags
(pouch).
2000 - 2008
80.000
• 5 years later, it amounts to U.S. $ 120 million
131.074
178.146
171.598
112.224
• In 1990 Ecuador exports about U.S. $ 30 million in
finished and semi finished products.
111.192
120.000
137.893
168.227
160.000
174.949
• The GSP and ATPDEA was renewed and adjusted to
different circumstances and social, economic and
political situations.
180.066
200.000
40.000
0
Año 2000
Año 2001
Año 2002
Año 2003
Source: Banco Central del Ecuador
1
Año 2004
Año 2005
Año 2006
Año 2007
Año 2008
Presentation 11. Iván Prieto
Workshop on Global Tuna Demand, Fisheries Dynamics and Fisheries Management in the EPO, 13 -14 May 2010
MAJOR MARKETS DESTINATION OF
CANNED TUNA
EXPORT OF CANNED TUNA AND LOIN IN
THOUSANDS
USD
(2007 - 2008)
800.000
2000 - 2008
764.95
53
Año 2000
Año 2001
Año 2002
Año 2003
447.600
328.884
230.315
199.130
200.000
376.409
309.723
400.000
• EUROPEAN UNION 65%
• SOUTH AMERICA 27%
• UNITED STATES 5%
626.355
520.77
75
600.000
0
MAJOR MARKETS OF EXPORTS:
Año 2004
Año 2005
Año 2006
Año 2007
Año 2008
Exports 2008
Source: Banco Central del Ecuador
Source: Banco Central del Ecuador
PROFILE OF ECUADORIAN TUNA
INDUSTRY
CATCH OF THE TUNA FLEET
ECUADOR
• The main fishing
region is the
OPO, the
Ecuadorian tuna
fleet is fishing
about 35% of
catches in the
region.
• 30.000 direct seats, 100.000 indirect.
• 18 industries process 380.000 TM (Cap 550.000
TM)
Is exported 175.000 TM
• National Fleet: 89 boats fishing industry
suppliers. 40 partners.
• 65% of the volume fleet landed Ecuadorian
flag. Other: Boat partners and third countries
• SKJ is the main
species caught
by Ecuador.
Source: CIAT
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Presentation 11. Iván Prieto
Workshop on Global Tuna Demand, Fisheries Dynamics and Fisheries Management in the EPO, 13 -14 May 2010
FACTORS THAT ENHANCE THE
TUNA DEVELOPMENT
PARTICIPATION IN THE CATCH
TUNIDAS
Japan
12%
Otros
36%
Indonesia
10%
Taiwan Province of
China
10%
Spain
6%
Mexico
3%
France
3%
Papua New Guinea
4%
Ecuador
4%
Philippines
6%
Korea, Republic of
6%
• Tariff advantages: SGP y ATPDEA
• Geographical location close to fishing areas and
markets.
• Low labor costs and basic services.
• Diversity of related activities: netters, welders,
carpenters, mechanics, electricians.
• Efficient labor (cleaning fish: female staff)
• Port Facilities: Manta, Posorja, Monteverde and
Guayaquil
Openness to foreign investment, but relatively little state
support
• The Ecuadorian
fleet captures
three of the five
main species:
skg, yellowfin
and bigeye.
• These catches
represent an
average of 4%
of the total
world catch of
these species.
Source: FAO, FishStat+ (Average participation 2000‐2007)
ECUADORIAN TUNA INDUSTRY
Problems affecting the
competitiveness of industry
CENTURY XXI
• Labor cost and basic service.
• Changes of rules for access to traditional
markets:origin rules.
• More pressure of consumer counties to combat
illegal fishing.
Regulation 1005 of the CE
Reform Magnuson-Stevens Law
Proposal HR 1080 (IUU)
Greater involvement of ONGs in the
markets. New player ISSF
• High labor costs compared to main competitor. (Processing phase)
Costs comparative (US$)
Costs MOD per hour (US$)
ECUADOR
TAILANDIA
1,72
0,65
Costs MOD per minute(US$)
0,0287
0,0108
Costs MOD/Tm (*)(US$)
136,51
51,59
Labor cost Tailandia: Level Playing Field in Tuna Processing. Campling&Doherty (2007)
Labor cost Ecuador: Primary resource.
Another Sources: Análisis comparativo de costos en la industria atunera. Estudios biológicos (2005)
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Presentation 11. Iván Prieto
Workshop on Global Tuna Demand, Fisheries Dynamics and Fisheries Management in the EPO, 13 -14 May 2010
Incidencia del costo del combustible en la industria atunera
Main problems affecting industry
• Production of heavily subsidized competitors.
• Failure to comply with management measures.
• Allegations of labor exploitation.
30% of Thailand production would benefit fisheries subsidies (1)
• Fuel cost draw operation of associated foreign fleet that contribute to the development of the industry.
Allegations of illegal fishing in the WCPO: between 5 and 15% of the catch(2)
Panamá: 1,49 US$/gl
Ecuador: 1 US$/gl
The foreign fleet in partnership can contribute between 35 and 40% of raw materials for processing enterprises.
Allegations of low‐paid work and without protection, child labor and migrant labor degradation (3)
Source: (1) Impacto de los subsidios pesqueros en la sostenibilidad y el comercio del atún en el ecuador. Prieto (2009)
(2) Assessment of Impacts of Illegal, Unreported and Unregulated (IUU) Fishing in the Asia-Pacific. APEC (2008)
(3)Trabajo infantil, diversión, obligación o puro peligro. Samudra (2006)
• Traditional tuna countries like Ecuador should
strive to preserve their investments and
markets.
Faced with environmental, economic and social problem consequent of the state of the tuna species, .
the Ecuadorian fishing industry is interested in developing…
• Perform specific actions such as:
MARICULTURE as an alternative for complement the extractive management of fishing.
 Further develop products with added value.
 To Strength sustainable fisheries policies.
 To maintain high sanitary standards with
traditional markets.
 To strength our fishery public sector.
But, emerge the need to research the potential effect of this
activity in markets..
4
Workshop on Global Tuna Demand, Fisheries Dynamics and Fisheries Management in the EPO, 13 -14 May 2010
Mariculture development
Improvements in technology could become mariculture activity more attractive to producers and investors…
• Advances in technology development, mainly in:
▫ Panama (yellowfin and black keg)
▫ Japan (red tuna)
▫ Australia e Indonesia (red tuna and yellowfin )
Economic viability in terms of:
• Survival rate in laboratory
• Growth or fattening rate
• Food conversion rate
• Prices could receive for the products
Dynamics of imports of fresh big eye tuna
in the Japanese market
Japanese Market
1.6
10
1.4
9
1.2
8
1
7
0.8
6
0.6
5
0.4
4
0.2
3
0
2
‐0.2
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Presentation 11. Iván Prieto
1
TRADEMAP
‐0.4
Imports of fresh bigeye tuna represent 38% f the total volume of fresh
tuna and 5% of total tuna imported by the Japanese market.
0
% Crec. Volumen Importado
•
•
5
Period 1976‐2007
Source FAOSTAT
Precio Promedio de importación
Presentation 11. Iván Prieto
Workshop on Global Tuna Demand, Fisheries Dynamics and Fisheries Management in the EPO, 13 -14 May 2010
Dynamics of tuna prices for sashimi on
japanese market
Dynamic of prices on the market
of fresh tuna - Japan
Atlantic(Thunnus thynnus)and Pacific(Thunnus orientalis)bluefin tuna
Bigeye tuna
FAO
Precios miles de US$/ton
price growth rates
• The average price of sashimi tuna species began to decline during the 90s. Catarci, FAO expert attributes this to:
The general economic situation in Japan
The decrease in price indices
The increased supply of farm‐red tuna
Bigeye and yellow fin tuna cheaper in Taiwan and Indonesia
To technically investigate possible effects on
markets prices for mariculture products .
Until developing and perfecting production technology
available , it might consider in the future…
• To analyze the potential reduction in prices due to increases in the quantities offered by mariculture.
… increase supply of tropical tunas from MARICULTURE could generate
possible effects on markets, reductiong prices, etc…
• To determine the price elasticity of demand.
It`s essential to estimate the future price of products to scenarios of changes in supply as a result of mariculture
production.
• Improving the quality of feasibility and risk analysis of investments in mariculture of tuna.
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