In W43 in the tuna landscape, In Oct-23, Vietnam's seafood exports were estimated to reach USD 863 million, resulting in a 5% year-on-year (YoY) decrease. During the first 10 months of the year, Vietnamese seafood earned nearly 7.5 billion USD, down 20% compared to the same period in 2022. The primary reason for this downturn is that the consumption of high-end seafood, such as tuna, squid, and octopus, has been negatively affected by the current economic climate, high inflation, and cautious spending habits of consumers. To improve exports and local demand, seafood processors and traders have packed their products in smaller sizes in the past few months and sold them at more affordable prices to cater for all income classes. This change is expected to help stimulate seafood consumption in the near future.
Furthermore, Vietnam's tuna exports to Canada show signs of recovery, with a YoY increase of 44% to over USD 3 million in Sep-23. However, this comes after a sustained decline, which began in 2022 when inflation hit the Canadian market, affecting consumer demand and limiting orders. As a result, Vietnam's tuna exports to Canada have dropped by 47% YoY in the first nine months of 2023. Although Canada was the 12th largest tuna import market globally in 2022, with tuna imports exceeding USD 272 million, exports to the Canadian market may not fully recover in the short term, particularly with the increase in Canadians' consumer credit debt and tightened spending.
According to the Inter-American Tropical Tuna Commission (IATTC), the East Pacific region has seen a surge in Bonito catches. A total of 259.7 thousand metric tons (mt) of Bonito were caught in the first eight months of 2023, marking a 14% increase from the same period in 2022. In addition, there was a 10.5% YoY increase in the catch of yellowfin, with a total of 238.7 thousand mt caught. The increased tuna production in the region has impacted prices, with Ecuador's bonito price dropping to USD 1,850/mt. Due to weak demand from European countries and increased fishing, the price may fall further to USD 1,800/mt by the end of the month. However, the limited availability of raw material stocks in processing plants will prevent a significant price drop.