W47 Tuna Update: Vietnam’s Tuna Exports Decrease Significantly and Alternative Tuna to Supplement Natural Tuna

Vietnam's Tuna Exports Decreased by 22% YoY

Vietnam's tuna exports decreased by 22% year-on-year (YoY) to USD 693 million as of Oct-23, attributed to low demand amid an economic crisis. Notably, exports to major markets like the United States (US) and Canada experienced significant drops of 41% and 47% YoY, respectively. Tuna is Vietnam's third largest seafood export after shrimp and pangasius, and the top five markets for Vietnam's tuna imports are the US, Israel, Thailand, Japan, Canada, and Germany. The expectations for Q4-23 suggest improved export performance, particularly with positive growth anticipated in markets such as Israel and Germany.

Tuna Ranked as the First Choice for Alternative Seafood Solutions

According to a recent study conducted by McKinsey & Company in the US, global seafood demand will surge 14% by 2030, which may lead to a large purchase of alternative seafood. The report indicates that tuna as an alternative will become the prime choice for the producers given its heavy reliance on wild-caught fish and difficulties in farming. Notably, 85% of the world's fisheries have reached or exceeded their sustainable limits, and restrictions on fish farming further exacerbate pressure on traditional seafood supplies. As global market demand for seafood continues to grow, the need for practical solutions becomes increasingly urgent, and alternative seafood will play a key role in meeting future demand. Three main alternative production pathways have been identified including cell culture, fermentation production and plant-based products, which have significantly lower carbon footprints.

Indonesian Government's Initiatives to Boost Local Fishery Industry

The Indonesian government has taken several initiatives to boost the local fishery industry, with a particular focus on the Kalamo Samber-Binyeri Village, which has the potential to become a significant tuna producer. This project aims to modernize traditional fishing villages by providing them with advanced fishery facilities, proper training, and subsidies that can increase productivity. These measures are expected to impact the country's fishery industry positively.