Increasing imports of skipjack loins from China increases fear amongst Spanish tuna farmers

Published 2020년 11월 12일

Tuna exporters from China are dumping skipjack loins at very low prices and in high volumes in Spain. It has increased the competition for domestically produced tuna resulting in uncertainty amongst the fishermen. The low per unit import value has pushed down the price of raw Spanish tuna in international markets and is negatively affecting the profits of the local fishermen.

Skipjack is one of the most popular varieties of tuna in canned and packaged tuna. As the number of Spain COVID-19 cases surged in Spain, consumers' “pantry loading” behaviour increased the sales for canned and packaged skipjack tuna products. Despite the increased sales and demand for skipjack tuna, Spanish tuna harvesters feared for the future of their livelihoods as net profit margins from tuna continued to shrink.

The rising import volumes of cheaper Chinese tuna has increased the competition for domestically sourced Spanish tuna which follows European hygienic, social and labour regulations. The increase in the volume of Chinese tuna imports is partly due to the tariffs imposed by the U.S on Chinese products. Due to high tariffs on the Chinese tuna, the volume was pushed into the European markets. In the first eight months of 2020, Spain imported 34K MT of skipjack tuna loins from China, which is an increase of 41% in comparison to the same period in 2019.

The Chinese imports are cheaper in comparison to the domestically produced tuna and increase the price competition between the two countries. The native farmers do not have the resources to compete with Chinese fleets and industries which dump their products below their production cost. Europeche, a representative body for fishermen in the European Union, suggests all exceptions enjoyed by Chinese exporters on tuna loins and canned tuna exports to the European Union should be removed to discourage dumping of skipjack tuna and protect the local fishermen. The average unit value of imported tuna marked USD 3.63/kg in August 2020, down by 35% from August 2019, posing a threat to the Spanish tuna fishermen.

Resultantly, prices of Spanish raw tuna plummeted below the international levels during this period as Tuna canners and processors in the European Union set the prices at which they want to procure tuna based on the prices of pre-cooked imported Chinese tuna present in the market. In the first 6 months of 2020, the price of skipjack tuna in Spain was in the range of $100 - $150 per MT which is lower in comparison to other international markets.

Sources

ITC. Trade map. HS Code: 160414

Undercurrent News. “Spanish French Tuna Harvesters Claim Cheaper Chinese Imports Threaten Future”