FOCUS ON: Ecuador (Part 2 – USA)ff

The year 2007 is so far a pure disaster for the Ecuadorian tuna industry, where its exports to the US market are concerned. In the first half of this year, exports for all heat preserved tuna items almost completely collapsed.  Even the export of pouched tuna, which was seen by Ecuador as the great promise of the future, has plummeted. Dramatically low Eastern Pacific catches, combined with increased demand from Europe, and more production for the domestic Latin American markets are seen as the main causes.

Still in 2006 things looked promising when the South American nation sold 15% more of pouched tuna to the USA market going from 13553 M/T to 15578 M/T, and expectations for 2007 were upbeat.  On this particular market Ecuador kept a second place as a main supplier to the USA after American Samoa. However, so far, in 2007 the US brands have sharply decreased their import of pouches from Ecuador and it looks like 2007 will not even reach 10000 M/T, which is going back to the level of 2004. With Starkist’s intention to produce more pouches in American Samoa, problems for some Ecuadorian plants could grow bigger. The total quantity of pouched tuna, which was supplied by all exporters combined to the USA, increased in 2006 from 46723 M/T to 51129 M/T 

The export of canned tuna in brine to the USA that went already down by 70% in 2006 from 15543 M/T to 4384 M/T, has almost completely halted in 2007.  Canned tuna in oil was not exported to the United States, because the US has a minimal consumption of this product, and a very high import duty on this item.  Effectively, this means that the export of canned tuna from Ecuador to the US hardly exists anymore. The declining consumption in the US market, along with stronger competition from Thailand and American Samoa can be seen as the main causes for this disaster.

In 2006, Ecuador was still the third player on the US market in terms of the quantity of canned tuna and of pre-cooked loins. In regards to pouched tuna, Ecuador is still the second player.

In line with this downward trend also the deliveries of pre-cooked tuna loins dropped by 38% to only 4003 M/T. This drop in Ecuadorian exports is not in line with the general trend of US to import more pre-cooked tuna loins, which showed an increase of 9% in 2006.



With global tuna catches being very disappointing and souring raw material prices for skipjack and yellowfin landed in Manta, along with the 1,5 month IATTC tuna fishing ban during the second half of  2007, Ecuador is facing some big challenges in keeping its foothold on the US market.