Weekly Product Updates

W31: Tuna Update

Published Aug 10, 2023

In W31 in the tuna landscape, the global canned tuna market is gaining popularity due to increasing consumer preferences for seafood and canned food items. Canned tuna is a nutritious low-fat and low-calorie food option than fresh tuna. In developed countries, there is a significant increase in consumer preference for protein-rich foods, and growing preference for tuna services as a prominent illustration. This shift is attributed to evolving lifestyles and is anticipated to propel industrial expansion in the upcoming years.

Indonesia holds a significant role as a vital tuna spawning area, contributing around 20% of the global catch. Tuna populations from the Indian and Pacific Oceans migrate to the nutrient-rich Indonesian Archipelago for nourishment and reproduction. In 2021, Indonesia's tuna production reached 791 thousand metric tons (mt), encompassing species like skipjack, yellowfin, and mackerel. As the primary wild-caught seafood export, tuna is projected to generate nearly USD 1.5 billion in revenue in 2021.

Vietnam's tuna exports to the European Union (EU) experienced a 71% increase in canned tuna products during the opening five months of 2023, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). The exports bounced back in May after a decline in April, an increase of 15% year-over-year (YoY). Germany and the Netherlands were the two largest consumers of Vietnamese tuna, with respective increases of 23% and 26%. More than 31 companies participated in tuna exports to the EU, with notable exporters including FoodTech, Bidifisco, and Yueh Chyang Canned Food. The VASEP indicates that EU importers are inclined to raise imports from nations with favorable tariffs, such as Vietnam. This tendency is due to factors like inflation, significant inventories, and the escalation of canned tuna prices.

Tridge’s analysis reports that Israel and Vietnam signed the Israel-Vietnam Free Trade Agreement (FTA) on July 25, 2023, marking Israel's second free trade deal with an Asian country and it stands as the country's first with a member of the Association of Southeast Asian Nations (ASEAN). The agreement enables duties removal on 86% of Vietnamese products, and both nations aim to increase bilateral trade turnover from USD 2.2 billion to USD 3 billion in 2023. The Israel-Vietnam FTA also aims to remove duties on 93% of Israeli items, marking a historic milestone for both countries. Lower tariffs could have a positive impact on exports from Vietnam and Israel. This change might lead to an increased Vietnamese presence in the Israeli market, while Israeli products could see a rise in demand.

Furthermore, the EU has been inconsistent with its environmental protection policies, particularly those within the European Green Deal framework. The EU also imposes a 20-percent tax on tuna exports from Indonesia, which EU countries accept in illegal containers. The Trade Minister reaffirmed his rejection of the EU Deforestation-Free Regulations (EUDR).

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