FOCUS ON: Indonesiaff
19 October 2007
The Netherlands
Indonesian exports of most heat preserved tuna products (canned, pouched and pre-cooked) decreased during 2006 both to Europe and the USA, the country’s two most important foreign markets for tuna.
During last year Indonesia delivered a total 875.777 cartons of 48 x 185g net of canned tuna to the EU, which was a drop of 35% in volume. This one third cut in exports is quite substantial, and has weakened Indonesia’s position on the EU market substantially.
The decrease in product in oil was even bigger than in brine. Tuna in oil declined quite sharply from 726.689 to 445.270 cartons, a difference of 40%. Tuna in brine went down by 31% from 625.450 cartons reaching the level of 430.518 cartons.
In 2006 the Asian country supplied the biggest amount of canned items to Germany. This EU member got 69% of the total Indonesian tuna in natural water and 76% of the entire volume of products in oil.
Indonesia recorded in Europe a lower average import value of canned tuna than any other Asian supplier. In 2006 Indonesian canned tuna in oil cost Euro 1.501 per M/T or Euro 13,33 per carton CIF Europe while in brine the price was Euro 13,45 per 48x 185g net. (Levels calculated on average exchange rate of 2006 EUR= Usd 1,25)
The low average CIF levels are most likely caused by the extremely reduced export prices for tuna flakes in oil - which went to Germany.
Indonesia is allowed to export canned tuna to the EU at 24% duty, however if the tuna is caught by Indonesian flag vessels a preferential tariff of 20,5 % applies. The country also has a yearly single duty import quota of 12% which starts each July 1st.
Indonesia has never been an important player in the pre-cooked tuna loins arena.
The nation also delivered here a smaller quantity to European states, volume dropped from 132 to 79 M/T during last year. All these loins were exported to Italy, while in the previous year all of its tuna loins went only to Spain.
In Europe, Indonesia seems to suffer from the auto detention that all seafood containers face when entering the community. Each container with canned tuna has to subjected to a series of extensive microbiological and heavy metals test before it is passed by the EU health authorities. This can often lead to a one week delay in port and substantial extra charges that other tuna exporting nations do not face.
In the US, the supply of Indonesian canned tuna also showed a decrease of 9% and reached eventually the level of 2.211.863 cases of 48x170g net (the standard in the US market). As a canned tuna exporter Indonesia takes fourth place in the American market in terms of quantity. Not only canned tuna exports dropped, also the Asian exporter supplied 34% less of frozen pre cooked tuna loins, with a volume of 2.354 M/T.
Shipments of pouched tuna to the States however increased from 443 M/T to 1.150 M/T in 2006.
During 2001-2005 the total tuna catches of this Asian country were constant at around 350.000 – 370.000 M/T. The principal species caught in the industrial longline and purse seine fisheries were yellowfin, big eye, albacore, southern bluefin tuna and skipjack tunas.