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Entry To US Market Less Important For Mexican Tuna Cannersff

27 October 2004 Mexico

Although the Mexican tuna industry is aiming its production toward the domestic market, the possibility of reaching the U.S. market is still an important alternative for the sector and for the possibility of improving its prices and reactivating the industry in Baja California, said the president of the National Fishing Industry Chamber in Baja California, Andres Armenta Gonzalez.

The possibility of a tuna ban may no longer be relevant, especially to Ensenada, where the tuna canning industry used to be located. The ban is an obstacle to obtaining better prices and higher profits in the international market.  The sales to the U.S. market may only represent 5%, however the profit involved could reach up to 40%.

Mexico increased consumption considerably from 20,000 tons average to the 150,000 tons consumed in 2003. Low domestic catches have forced Mexico to import yellowfin tuna to cover the demand of their the processing plants, which supply the domestic market, There was even a substantial increase of imports of canned product.

Mr. Armenta Gonzalez indicated that Ensenada will probably never go back to being the tuna fishing power it was in the past, because the main processing companies left the area and moved to Manzanillo, Mazatlán and even in Madero Chiapas Port where the installations of the company Herdez are located.

If the tuna ban would be lifted, Ensenada would become a major player in the processing of pre-cooked tuna loins for export to the markets offering interesting alternatives, therefore not only the United States, but also Europe. Pre-cooked tuna loin processing requires a lot of manual labor and would increase local employment, he said.

He added that the tuna farming industry currently has an enormous potential and continues to grow. The tuna farming industry has generated profits all around, also from supplies to sardine fishing boats, although they are not the same large volume of supplies as for a tuna boat, they are still very important for the local economy.

Source: Mexican Press