The year 2006 showed quite a dramatic shift in Ecuador’s export to the European Union compared to 2005. While in 2005 still a lot of raw whole round tuna was exported, we saw a very big drop last year. Instead we witnessed a sharp increase in the supply of frozen pre-cooked tuna loins to the Union, a change of 43% from 21892 M/T to 31374 M/T. This volume made Ecuador the leading supplier on the EU tuna loins market where most of the loins were sold to Spain and Italy. Also on both these markets the South American nation was the main supplier of frozen pre-cooked tuna loins to the local tuna canneries.
Moreover last year was positive for Ecuador in terms of canned tuna in oil exports. The country exported 15% more of this item from 21006 M/T to 24177 M/T, which made it the third player on canned tuna in oil in the EU market .
54% or 12960 M/T of canned tuna in oil went to Spain, which is Ecuador’s most important market. Netherlands and Germany were the second and third export destination for tuna in oil, but most of the supply to the Netherlands was re-exported to Germany, with the discounter Liddl being an important buyer.
The 2006 sharp drop in EPO (Eastern Pacific Ocean) catches (see our article of August 29, 2007), caused that also Ecuadorian vessels landed a lot less frozen whole round tuna for their domestic industry. In 2005 – which was a record year in terms of skipjack tuna catches- the excess supply was mostly exported to Spanish canneries. Many of the vessels now landing tuna in Ecuadorian are either directly owned by Spanish companies or through local joint ventures. However with disappointing captures in 2006 the South American country delivered only 2684 M/T of frozen whole round product, 94% down from 43525 M/T, and used most of the landed tuna to expand its export of pre-cooked frozen loins for Spanish tuna canneries.
Contrary to the increase in canned tuna in oil – canned tuna in brine exports showed a decline. This is explained less exports to Spain, France, Netherlands and UK – of which France and the UK are pre-dominantly brine markets. Ecuadorian exports of this product fell by 20% from 33434 M/T to 26877 M/T, which made it fourth most important exporter to the EU market, with the market share of 11%.
Overall the trend in 2006 is that Spanish tuna companies have become more important to the Ecuadorian tuna industry. Through joint ventures and other co-operations in fishing, loining and canning, leading Spanish tuna companies have assured themselves a regular supply of tuna from the EPO. By outsourcing most of the labor-intensive part of the tuna cleaning process to Ecuador, Spanish canneries are able to maintain their competitive position in the European market.
(Following soon on atuna.com: FOCUS ON : Ecuador part 2 – which will focus on Ecuador’s tuna business with the USA and other nations).
