'\ ,^5- /J/^'^; f^nP^ -SW^-opc^ NOAA Technical Memorandum NMFS .<<^>^. ^^Artso^^ SEPTEMBER 1991 JAPAN'S TUNA MARKET Sunee C. Sonu ^^^^^ PENNSVLVAMIA STATE. UNIVERS (TV APR2i i^^2 U S Oepos.wrv Copy NOAA-TM-NMFS-SWR-026 U.S. DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration National Marine Fisheries Service Southwest Region NOAA Technical Memorandum NMFS The National Oceanic and Atmospheric Administration (NOAA), organized in 1 970, has evolved into an agency which establishes national policies and manages and conserves our oceanic, coastal, and atmo- spheric resources. An organizational element within NOAA, the Office of Fisheries is responsible for fisheries policy and the direction of the National Marine Fisheries Service (NMFS). In addition to its formal publications, the NMFS uses the NOAA Technical Memorandum series to issue informal scientific and technical publications when complete formal review and editorial processing are not appropriate or feasible Documents within this series, however, reflect sound professional work and may be referenced in the fomial scientific and technical literature. NOAA Technical Memorandum NMFS This TM senes is used lor documeniaiion ana limeiy commumcalion ol preliminary resulls. imtenm reports, or special purpose mlormation ana have noi received complete formal review edilorial control, or detailed editing SEPTEMBER 1991 JAPAN'S TUNA MARKET Sunee C. Sonu Southwest Region National Marine Fisheries Service, NOAA Terminal Island, California 90731 NOAA-TM-NMFS-SWR-026 U.S. DEPARTMENT OF COMMERCE Robert A. Mosbacher, Secretary National Oceanic and Atmospheric Administration John A. Knauss, Under Secretary for Oceans and Atmospheric National Marine Fisheries Service William W. Fox, Jr., Assistant Administrator tor Fisheries TABLE OF CONTENTS Page '" LIST OF TABLES ii LIST OF FIGURES V LIST OF APPENDICES v EXECUTIVE SUMMARY vi 1. INTRODUCTION 1 2. WORLD TUNA FISHERIES 3 3. JAPAN'S TUNA FISHERY . 5 4. WORLD TUNA IMPORTS 19 5. JAPANESE MARKET 2 OVERVIEW 20 IMPORTS 22 Current Trend 2 2 Imports of Fresh Tuna 24 Imports of Frozen Tuna 27 Tariffs 33 COLD STORAGE HOLDINGS 3 3 SUPPLY 34 CONSUMPTION 3 6 PRICE TREND 3 6 Exvessel Prices 36 Wholesale Prices 40 6. MARKETING STRATEGIES 4 3 FARMING OF BLUEFIN TUNA , 4 3 VALUE-ADDED PRODUCTS 4 4 DIRECT SALE TO SUPERMARKET CHAINS 4 4 TARGET OTHER WHOLESALE MARKETS 4 5 DIRECT SALE TO TOKYO CENTRAL WHOLESALE MARKET 4 6 7. CONCLUSIONS 50 REFERENCES 51 APPENDIX A: MAJOR SUPERMARKET CHAIN STORES 52 APPENDIX B: PURCHASERS FOR SUPERMARKET CHAIN STORES 55 APPENDIX C: MAJOR JAPANESE TUNA IMPORTERS 56 APPENDIX D: BROKERAGE COMPANIES AT THE TOKYO CENTRAL WHOLESALE MARKET 60 LIST OF TABLES Page Table 1. World Tuna Catch*, by Major Countries, 1983-1989 (1,000 Metric Tons) 3 Table 2. World Tuna Catch by Major Species, 1983-1989 (1,000 Metric Tons) 4 Table 3. Japan's Marine Fisheries Catch, by Major Species, 1988-1989 5 Table 4. Japan's Tuna Catch, by Major Species, 1977-1990 (1,000 Metric Tons) 6 Table 5. Distribution of Japan's Skipjack Catch, by Major FAO Fishing Area, 1986-1989 8 Table 6. Distribution of Japan's Bigeye Tuna Catch, by Major FAO Fishing Area, 1986-1989 10 Table 7. Distribution of Japan's Yellowfin Tuna Catch, by Major FAO Fishing Area, 1986-1989 12 Table 8. Distribution of Japan's Albacore Tuna Catch, by Major FAO Fishing Area, 1986-1989 14 Table 9. Distribution of Japan ^s Southern Bluefin Tuna Catch, by Major FAO Fishing Area, 1986-1989 15 Table 10. Distribution of Japan's Northern Bluefin Tuna Catch, by Major FAO Fishing Area, 1986-1989 17 Table 11. Tuna Imports by Major Countries, by Volume, 1988 (Metric Tons) 19 Table 12. Tuna Imports by Major Countries, by Value, 1988 (US $1,000) 20 Table 13. Japan's Imports of Fresh and Frozen Tuna, by Volume, 1981-1990, (Metric Tons) 23 Table 14. Japan's Imports of Fresh and Frozen Tuna, by Value, 1981-1990, (US$1,000) 23 Table 15. Japan's Imports of Tuna, by Product Form, 1989-1990 24 Table 16. Japan's Imports of Fresh Yellowfin Tuna, by Major Countries, by Volume, 1981-1990 (Metric Tons) ... 25 Table 17. Japan's Imports of Frozen Yellowfin Tuna, by Major Countries, by Volume, 1981-1990 (Metric Tons) ... 26 11 Table 18. Japan's Imports of Fresh Bigeye Tuna, by Major Countries, by Volume, 1981-1990 (Metric Tons) ... 28 Table 19. Japan's Imports of Frozen Bigeye Tuna, by Major Countries, by Volume, 1981-1990 (Metric Tons) ... 29 Table 20. Japan's Imports of Fresh Bluefin Tuna, by Major Countries, 1981-1990 (Metric Tons) 30 Table 21. Japan's Imports of Frozen Bluefin Tuna, by Major Countires, 1981-1990 (Metric Tons) 31 Table 22. Japan's Imports of Frozen Skipjack Tuna, by Major Countries, 1981-1990 (Metric Tons) 32 Table 23. Japanese Tariff Structure for Tuna, 1991 33 (Percent of CIF Value) Table 24. Japan's Year-end Cold Storage Holdings of Frozen Tuna, 1981-1990 (1,000 Metric Tons) . 33 Table 25. Japan's Monthly Cold Storage Holdings of Frozen Tuna, 1990 (1,000 Metric Tons) 34 Table 26. Japan's Tuna Supply and Demand, 1985-1990 (1,000 Metric Tons) 35 Table 27. Japan's Annual Per Household Consumption of Fresh and Frozen Fish and Shellfish, by Major Species, 1988-1990 36 Table 28. Annual Landings and Average Wholesale Prices of Bluefin Tuna at 51 Landing Ports in Japan, 1979-1990 ... 37 Table 29. Arrivals and Average Wholesale Prices of Bluefin Tuna at Six Major Central Wholesale Markets in Japan, 1979-1990 38 Table 30. Annual Landings and Average Wholesale Prices of Yellowfin Tuna at 51 Landing Ports in Japan, 1979-1990 38 Table 31. Arrivals and Average Wholesale Prices of Yellowfin Tuna at Six Major Central Wholesale Markets in Japan, 1983-1990 39 Table 32. Annual Landings and Average Wholesale Prices of Bigeye Tuna at 51 Landing Ports in Japan, 1979-1990 39 Table 33. Arrivals and Average Wholesale Prices of Bigeye Tuna at Six Major Central Wholesale Markets in Japan, 1983-1990 40 111 Table 34. Annual Landings and Average Wholesale Prices of Skipjack Tuna at 51 Landing Ports in Japan, 1979-1990 40 Table 35. Arrivals and Average Wholesale Prices of Skipjack Tuna at Six Major Central Wholesale Markets in Japan, 1983-1990 41 Table 36. Annual Landings and Average Wholesale Prices of Albacore Tuna at 51 Landing Ports in Japan, 1979-1990 41 Table 37. Arrivals and Average Wholesale Prices of Albacore Tuna at Six Major Central Wholesale Markets in Japan, 1983-1989 42 Table 38. Arrivals and Average Wholesale Prices of Bluefin Tuna by Major Central Wholesale Markets in Japan, 1989 45 Table 39. Arrivals and Average Wholesale Prices of Bigeye Tuna by Major Central Wholesale Markets in Japan, 1989 46 Table 40. Arrivals and Average Wholesale Prices of Yellowfin Tuna by Major Central Wholesale Markets in Japan, 1989 47 Table 41. Arrivals and Average Wholesale Prices of Fresh Skipjack and Frozen Albacore Tuna by Major Central Wholesale Markets in Japan, 1989 47 IV LIST OF FIGURES Page Figure 1. Distribution of Japan's Skipjack Tuna Catch, by Major FAO Fishing Area, 1989 7 Figure 2. Distribution of Japan's Bigeye Tuna Catch, by Major FAO Fishing Area, 1989 9 Figure 3. Distribution of Japan's Yellowfin Tuna Catch, by Major FAO Fishing Area, 1989 11 Figure 4. Distribution of Japan's Albacore Tuna Catch, by Major FAO Fishing Area, 1989 13 Figure 5. Distribution of Japan's Southern Bluefin Tuna Catch, by Major FAO Fishing Area, 1989 16 Figure 6. Distribution of Japan's Northern Bluefin Tuna Catch by Major FAO Fishing Area, 1989 18 LIST OF APPENDICES Page Appendix A. Major Supermarket Stores 53 Appendix B. Purchasers for Supermarket Chain Stores 56 Appendix C. Major Japanese Tuna Importers 57 Appendix D. Brokerage Companies at the Tokyo Central Wholesale Market 61 EXECUTIVE SUMMARY Total world catches of major tuna species (skipjack, bigeye, yellowfin, albacore and bluefin) have increased by 45 percent during the last seven years, from 1.8 million metric tons (tons) in 1983 to 2.6 million tons in 1989. Much of this increase is the result of expanded tuna fisheries in countries other than Japan and the United States. , The tuna fishery is the most important fishery in Japan in terms of value. In 1989, Japan's tuna landings were valued at nearly 2.8 billion dollars, approximately 20 percent of Japan's total value of fishery landings for that year. In retail value, this was worth about a trillion yen (8 billion dollars) . Japan's tuna fishery faces a number of difficult challenges. Chief among these are: (1) competition from Korea and Taiwan as suppliers of high-value tuna, (2) growing international regulations and catch quotas for tuna in international waters, (3) lack of experienced labor for distant-water tuna vessel operations, (4) high cost of production, (5) increasing influence of imports on pricing of tuna in domestic markets, and (6) a sharp decline in landings by its own fleet. The decline in Japan's tuna landings has occurred across the board for all major species in recent years. A decline of 8 percent occurred for skipjack in 1989 and 1990. A 4-year consecutive decline totalling 33 percent occurred for bigeye since 1985, a 6-year decline of 31 percent for albacore since 1984, and a 9-year decline of 78 percent for bluefin since 1981. Declining catches by its own fleet makes the Japanese market increasingly more dependent on imports, especially since the demand for more high-quality tuna has been rising steadily. Our special interest in the Japanese tuna market stems from the simple fact that the demand is huge, requiring an annual import close to a billion dollars. Imports have been growing at an enormous rate, at an average 17 percent for a recent 7-year period through 1990. Furthermore, during the 1980 's, consumer preference has shifted to foods which offer virtues such as convenience and a gourmet image, as well as food with wholesome health implications. Unique to Japan, the nation has a huge raw consumption market for tuna amounting to about 400,000 tons. As much as 35 percent of this market is supplied by imports at the present time, but the proportion is expected to rise for some time. Tuna species used for raw consumption as sashimi and sushi in Japan are: northern bluefin ( Thunnus thvnnus ) , southern bluefin ( Thunnus maccovii ) , bigeye (Thunnus obesus) , yellowf in ( Thunnus albacares) , and skipjack ( Katsuwonus pelamis ) . Bluefin is the most- prized and hence the highest -priced tuna species in the Japanese market, followed by bigeye, yellowfin and skipjack. For instance, average prices at six major wholesale markets for fresh fish in 1990 vi were 4,937 yen/kg ($16.62/lb) for bluefin, 2,227 yen/kg ($7.50/lb) for bigeye, 1,156 yen/kg ($3.89/lb) for yellowfin, and 714 yen/kg ($2.40/lb) for skipjack. As Japan and the United States are signatories to the General Agreement on Tariffs and Trade (GATT) , lower tariffs apply to U.S. exports of tuna products, 5 percent on fresh or frozen products, 15 percent on prepared or preserved products including products in airtight containers, and 15 percent on salted, smoked or dried products, based on GIF (cost, insurance, freight) prices. While the United States has secured a niche in this market, it is mainly through the export of fresh bluefin tuna, which remains relatively small in value in proportion to the total potential market that could be exploited. Based on the analysis in this study, several marketing strategies are possible. Farming of Bluefin Tuna. By focusing on improving the meat quality rather than the fish size, small bluefin tuna can be fattened for approximately 6 months to become a product which is marketable as high-priced tuna in Japan. Southern California seems to offer favorable environmental conditions to warrant a pilot feasibility study. Value-added Products. Evidence suggests that value-added products such as "negi-toro", which cater to the shifting preference of the Japanese consumers, are keys to successful future promotion of tuna and tuna products in Japan. Direct Sale of Fresh Tuna to the Tokyo Central Wholesale Market. Fresh tuna can be sold directly at the Tokyo Central Wholesale Market on consignment through one of the authorized auction houses. Sale to Other Wholesale Markets. Prices at the Tokyo Central Wholesale Market are not necessarily higher than those at other markets, and they may also occasionally fall below the average prices of other wholesale markets. This study reveals that price differentials for the same commodities in different wholesale markets can often be large and are worthy of special note when exporting tuna to Japan. Direct Sales to Supermarket Chains. Major supermarket chains handle huge amounts of retail business of tuna products in Japan, particularly those value-added products which appeal to the emerging consumer preference for convenience, high-quality, and health implications. Since these retailers are powerful enough to use their own independent suppliers, they represent additional potential buyers other than wholesale markets. Vll 1. INTRODUCTION In the face of rising fuel costs, the high costs of its domestic labor, and mounting international competition, Japan's tuna fleet has been continuously adapting to changing times over the past two decades. In order to modernize its fleet into one that is lean and productive, the industry decommissioned as many as 524 vessels between 1976 and 1987, while enhancing both the tonnage and equipment for its fleet. As of 1990, the Japanese tuna fleet was still the world's largest in terms of tonnage and number of vessels as well as landings. Its distant-water tuna fleet had 894 vessels with a total tonnage of 270,511 tons in that year, while its offshore fleet had 607 vessels with 44,817 total tonnage (Suisan-Sha, 1990 & 1991). Between 1985 and 1990, Japan's tuna fishery managed to supply an average of 690,000 tons to its domestic market, as much as 74 percent of the total annual supply for the country, the world's largest tuna consumer. However, production by Japan's tuna fleet has been declining noticeably in recent years. After falling two years in a row in 1989 and 1990, the production in 1990 of 563,000 tons fell below the 600,000-ton level for the first time. A high of 792,000 tons was achieved only 6 years ago in 1984. Japan's tuna fishery, which faces a number of difficult challenges today, is said to be at a crossroads due mainly to the following new developments: 1. Competition from Korea and Taiwan has intensified considerably as these countries have successfully begun to practice low-cost production skills while shifting their focus to high-quality tuna for export to Japan. Korea has embarked on an ambitious expansion program for its tuna fleet and even begun hiring experienced Japanese tuna skippers to learn Japanese technology (Suisan Keizai Shinbun, December 19, 1988; July 25, 1990). 2. Japan's distant-water tuna fishery has suffered relatively little from the one worldwide proliferation of 200-mile exclusive economic zones, since the fishery for tuna generally operates in international waters. However, international regulations on catch quotas for tuna are on the rise, as the idea of controlling tuna resources in international waters is rapidly becoming a dominant trend. Already, strict catch limitations are in place for the scarce bluefin. The feeling that tuna resources are being exploited to their limit could put even stricter brakes on further increases in catches, making it increasingly difficult for Japan's distant-water tuna fishermen to secure tuna fishing grounds in international waters (Suisan Keizai Shinbun, July 25, 1990; January 16 & July 26, 1991) . 3. Lack of experienced labor for distant-water operations is already plaguing Japan's tuna fishery. Existing labor is aging, with no prospect for replacement through domestic recruitment. Japan has already begun hiring foreign labor to man their tuna boats (Suisan Keizai Shinbun, July 28, 1989; July 23, 1991). 4. High cost of production. A tuna boat takes about 50 days to cover the distance from Las Palmas, Canary Islands, to Japan, costing nearly 7,000 dollars a day or as much as 250,000 dollars for each trip (Suisan Keizai Shinbun, July 25, 1990) . 5. A sharp increase in imports has led to increased influence of imports on the price of tuna in domestic markets. Japan's imports of tuna have skyrocketed in recent years, nearly tripling in both volume and value between 1984 and 1990. As much as 35 percent of domestic consumption of raw tuna, the most important segment of the Japanese market, is now supplied by imports, and this proportion is expected to rise in the years ahead, as landings by its own fleet continue to decline. As the imports increased, so did the fluctuation in tuna prices, destabilizing the market. With the objective of keeping unexpected fluctuations in the domestic tuna market to a minimum, an organization named "Tuna Supply and Demand Research Council" was inaugurated in April, 1989. The council issues quarterly forecasts of supply and demand for tuna in Japan (Suisan Keizai Shinbun, January 30, 1991; Nikkan-Shokuryo Shinbun, January 7, 1989 & March 31, 1990; Minato Shinbun, March 31, 1990; Suisan Tsushin, April 27, 1991). - The Japanese tuna market deserves attention due to the simple fact that it is huge, with annual imports close to a billion dollars. Just as important, it has been growing at an enormous rate, an average 17 percent during the 7-year period through 1990. Underlying this steady quest for tuna imports to Japan is the sharp rise in expendable per capita income by the consumers of this affluent nation. During the 1980's, consumer preference for food shifted to those which offered such virtues as convenience (fast-food and packaged foods) , a gourmet image and healthy wholesome food (Tokyo Univ. of Fisheries, 1989, Suisan Keizai Shinbun, January 30, 1990; July 29, 1991) . The Japanese tuna market thus offers both challenges and opportunities for the U.S. tuna industry. While the United States has secured a niche in this market, it is mainly through the export of fresh bluefin tuna, which remains relatively small in value in proportion to the total potential market that can be exploited. The purpose of this report is to present a detailed examination of the Japanese tuna fishery and market, to attempt to better identify potential opportunities for export of U.S. products, and to develop strategies which may help increase such efforts. 2. WORLD TUNA FISHERIES From 1983 to 1989, total world catches of major tuna species (skipjack, yellowfin, bigeye, albacore and bluefin) increased by 45 percent, from 1.8 million metric tons (tons) to 2.6 million tons (Table 1) . At this rate of steep increase, the annual world catches may soon surpass 3 million tons. Eight countries landed more than 100,000 tons of tuna since 1986. In 1989, the year for which the latest world landing data are available, these countries were, in order of landing volume, Japan (26 percent of the world total) , Spain (10 percent) , the United States (9 percent) , Indonesia (6 percent) , and France, Korea, Mexico, and the Philippines (all 5 percent) (Table 1) . Table 1. World Tuna Catch*, by Major Countries, 1983-1989 (1,000 Metric Tons) Country 1983 1984 1985 1986 1987 1988 1989 Japan 693 792 686 781 691 753 670 Spain 127 155 178 186 197 234 250 U.S.A. 266 264 233 252 283 276 245 Indonesia 103 111 121 125 144 147 159 France 85 88 102 113 125 153 142 Korean, Rep 89 71 92 110 131 148 141 Mexico 38 77 92 103 112 124 136 Philippines 119 104 125 137 126 116 127 Venezuela 57 62 65 63 76 76 79 Maldive 26 39 49 50 49 65 64 Ecuador 21 31 35 41 36 36 42 Solomon Isl. 34 36 31 41 31 45 41 Ghana 33 32 34 35 36 33 33 Brazil 21 18 28 15 14 20 26 Panama 14 24 26 30 34 14 22 Sri Lanka 23 18 19 22 20 20 21 Portugal 5 8 8 12 13 16 13 Fiji 9 7 6 4 12 14 9 Australia 21 15 15 13 11 11 6 Total** 1 ,792 2,134 2,132 2,362 2,369 2,512 2,607 * Tuna catch includes albacore, yellowfin, bigeye, bluefin and skipjack. ** Total also includes other countries not listed. Data sources: FAO Yearbook of Fishery Statistics, Catches and Landings, Vol 66 & 68; Ministry of Agriculture, Forestry & Fishery, Government of Japan, 1982 & 1990; Suisan Tsushin, June 4, 1990 During ISS'B-Sg, Japan's tuna production averaged about 0.7 million tons annually. During this period, the catch was essentially level, although it dropped sharply to 563,000 tons in 1990. The percentage of Japan's catches relative to the global total has been substantial, but has steadily declined from nearly 40 percent in 1983 to about 26 percent in 1989. The U.S. landings of tuna during this period were relatively steady, at around 250,000 tons annually. As a result, the percentage relative to the global total has declined, from about 15 percent in 1983 to about 9 percent in 1989. The United States, historically the world's second largest producer of tuna, dropped to No. 3 in 1989, behind Japan and Spain (Table 1). The global increase in tuna landings during recent years was therefore due to increased catches by countries other than Japan and the United States. Countries with substantial increase in tuna landings during this period are Spain, Mexico, France, Indonesia, Republic of Korea, Maldive, and Venezuela. Combined tuna landings by these seven countries rose from 525,000 tons in 1983 to 971,000 tons in 1989, respectively about 29 percent and over 37 percent of the world total, an 85 percent increase over this period. In terms of landing, two leading species are skipjack and yellowfin. Between 1983 and 1989, skipjack accounted for 43 to 45 percent of total landings of major tuna species, and yellowfin, 30 to 3 5 percent. Landings of other species were small, only 9 to 11 percent for both bigeye and albacore, and 2 to 5 percent for northern bluefin and southern bluefin combined (Table 2) . Table 2. World Tuna Catch, by Major Species, 1983-1989 (1,000 Metric Tons) Species 1983 1984 1985 1986 1987 1988 1989 Skipjack 774 1,066 908 1,067 1,017 1,242 1,180 Yellowfin 534 614 731 794 879 863 906 Bigeye 200 211 243 253 247 187 229 Albacore 201 170 177 186 169 171 243 Bluefin 83 73 73 62 57 49 49 Total 1,792 2,134 2,132 2,362 2,369 2,512 2,607 Data source: FAO Yearbook of Fishery Statistics, Catches and Landings, Vol. 66 & 68 There has been a tremendous increase in landings of skipjack and yellowfin since 1983, while landings for bigeye and albacore essentially stagnated and those for bluefin declined during this period. In fact, 96 percent of the increase during this period was the result of increase in landings of skipjack and yellowfin. More specifically, skipjack landings rose from 774,000 tons in 1983 to 1,180,000 in 1989, an increase of about 52 percent, which accounted for about 50 percent of the increase for all major species during the same period. Yellowfin landings rose 70 percent from 534,000 tons in 1983 to 906,000 tons in 1989, accounting for about 46 percent of the increase for all major species during the same period. Approximately 60 to 67 percent of the skipjack were caught in the western Pacific regions during the 1986-89 period (FAO Yearbook of Fishery Statistics, Vol. 68). 3. JAPAN'S TUNA FISHERY The tuna fishery is the single most important fishery in Japan in terms of value, although it ranks fourth behind sardine, pollock, and squid in volume (Table 3) . In 1989, the year in which the latest data on landing value is available, Japan's tuna landings were valued at nearly 2.8 billion dollars, approximately 20 percent of Japan's total fishery landings for that year. In retail value, this was worth around a trillion yen (8 billion dollars) (Suisan Keizai Shinbun, July 25, 1990; Minato Shinbun, March 31, 1990). Table 3. Japan's Marine Fisheries Catch, by Major Species, 1988-1989 1988 1989 Species 10^ Tons ¥10^ $10^ 10^ Tons ¥10' $10^ Tuna 753 362 2,826 670 381 2,782 Squid 657 318 2,487 720 224 1,634 Salmon 167 119 932 192 108 786 Pollock 1,259 87 678 1,154 82 596 Sardine 4,488 83 651 4,416 75 552 Mackerel: Jack 228 65 507 181 62 453 Chub 649 49 385 527 42 307 Total* 11,588 1,966 15,363 10,439 1,954 14,264 Total also includes other species. Conversion rate: 128 yen = US$1 for 1988, 137 yen = US$1 for 1989 Data sources: Suisan Tsushin, November 28 & 30, 1990 FAO Yearbook of Fishery Statistics, Catches and Landings, Vol. 68 Approximately half of Japan's tuna landings are skipjack (Table 4). Japan's skipjack landings fluctuated between about 4 6 percent and 58 percent and averaged 51 percent of the total tuna landings between 1977 and 1990. This is more than double the landings of the next important species, bigeye, which averaged approximately 20 percent, and more than triple those of the third-ranking yellowfin which averaged 16 percent. The average landings during the same period for albacore was 9 percent, and those for bluefin 5 percent. Tendencies for declining catches are recognized for all species in recent years. Landings of skipjack suffered a setback for two consecutive years between 1988 and 1990, declining 31 percent during this period, i.e. from 434,000 tons in 1988 to 338,000 tons in 1989 and further to 299,000 tons in 1990. Continuous decline of landings also occurred for bigeye for 4 years since 1986 (a loss of 33 percent during the period) , for yellowfin for 5 years since 1985 (a loss of 31 percent during the period) , for albacore for 6 years since 1984 (a loss of 31 percent during the period) , and for bluefin for 9 years since 1981 (a loss of as much as 78 percent during the period) (Table 4) . Table 4. Japan's Tuna Catch, by Major Species, 1977-1990 (1,000 Metric Tons) Species 1977 1978 1979 1980 1981 1982 1983 Skipjack 309 370 330 354 289 303 353 Bigeye 128 128 130 123 111 132 139 Yellowfin 83 98 100 119 110 114 112 Albacore 54 88 67 70 64 70 52 Bluefin 52 47 44 50 58 44 37 Total 626 731 671 716 632 663 693 Species 1984 1985 1986 1987 1988 1989 1990 Skipjack 446 315 412 331 434 338 299 Bigeye 131 149 170 161 144 149 114 Yellowfin 115 134 125 122 111 113 93 Albacore 64 58 50 50 45 48 44 Bluefin 36 30 24 27 19 22 13 Total 792 686 781 691 753 670 563 Sources: FAO Yearbook of Fishery Statistics, Catches & Landings, Vol 50, 56, 62, 66 & 68; Ministry of Agriculture, Forestry & Fisheries, Government of Japan,- 1982 & 1990; Suisan Tsushin, June 4, 1991. Nearly all of Japan's skipjack catch (99 - 100 percent) takes place in the Pacific Ocean (Figure 1 and Table 5) , where annual catches have fluctuated between 3 2 0,000 and 4 3 0,000 tons, with an average of 376,000 tons, from 1986 through 1989. Figure 1. Disribution of Japan's Skip jack Tuna Catch, by Major FAO Fishing Area, 1989 10,000 Metric Tons 1,000 Metric Tons 100 Metric Tons 10 Metric Tons T2ible 5. Distribution of Japan's Skipjack Catch, by Major FAO Fishing Area, 1986-1989 Catch (Metric Tons) % of Total Skipjack Area* 1986 1987 1988 1989 1986 1987 1988 1989 Pacific Ocean 71 222,225 194,121 254,701 209,594 54 59 59 62 61 166,964 118,491 158,709 109,646 41 36 37 32 77 22,367 15,672 12,461 13,868 5 5 3 4 81 18 179 124 1,017 67 176 45 3,083 660 — — 1 87 10 4 47 1 Total** 411,760 328,512 429,125 334,786 100 100 99 99 Atlantic Ocean Total** — 1,329 3,174 2,542 — — 1 1 Indian Ocean 51 378 762 1,936 798 57 3 315 156 25 Total** 381 1,077 2,092 823 Grand Total 412,144 330,918 434,391 338,151 100 100 100 100 * Numbers refer to FAO fishing areas (see Figure 1) . ** Total may not add due to rounding. Less than one. Data source: FAO Yearbook of Fishery Statistics, Catches and Landings, Vol. 68 The bulk of Japan's catches of bigeye tuna, between 69 and 78 percent from 1986 through 1989, occurred in the Pacific Ocean, followed by the Atlantic Ocean (12 to 22 percent) , and the Indian Ocean (5 to 10 percent) . Although the Atlantic Ocean has not been a major bigeye producing region, considerable growth in regional landings has occurred for this species in the past few years. The landings in the region increased by 34 percent from 23,000 tons in 1986 to 31,000 tons in 1989 (Table 6 and Figure 2). The decrease in bigeye landings during 1986 through 1989 was the result of a setback in both the Pacific and Indian Oceans. Figure 2. Disribution of Japan's Bigeye Tuna Catch, by Major FAQ Fishing Area, 1989 10,000 Metric Tons 1,000 Metric Tons 100 Metric Tons 10 Metric Tons Table 6. Distribution of Japan's Bigeye Tuna Catch, by Major FAO Fishing Area, 1986-1989 Catch metric Tons) % Of 1986 Total Biq 1987 1988 reve Area* 1986 1987 1988 1989 1989 Pacific Ocean 77 83,014 78,218 63,886 65,175 49 49 44 44 71 22,548 25,937 14,551 22,927 13 16 10 15 61 9,489 10,198 13,575 12,799 6 6 9 9 87 12,969 10,026 5,924 8,445 8 6 4 6 81 1,369 1,395 1,186 834 1 1 1 1 67 1 42 68 56 — — — — Total** 129,390 125,816 99,190 110,246 76 78 69 74 Atlantic Ocean I 47 11,402 8,186 13,013 12,184 7 5 9 8 34 6,271 6,223 12,618 11,965 4 4 9 8 41 2,429 2,392 4,257 4,556 1 1 3 3 31 521 398 546 1,708 — — — 1 21 2,786 1,908 1,610 853 2 1 1 1 27 71 231 206 225 — — — — Total** 23,480 19,338 32,250 31,491 14 12 22 21 Indian Ocean 51 11,780 10,587 9,181 5,415 7 7 6 4 57 5,112 4,836 3,251 1,629 3 3 2 1 Total** 16,892 15,423 12,432 7,045 10 10 9 5 Grand Total 169,762 160,577 143,872 148,782 100 100 100 100 * Numbers refer to FAO fishing areas (see Figure 2 ) ** Total may not add due to rounding. Less than one percent. .« Data source: FAO Yearbook of Fishery Statistics, Catches and Landings, Vol. 68 10 The bulk of Japan's yellowfin catches, i.e. 84 to 88 percent during 1986 through 1989, occurred in the Pacific Ocean, with less than 10 percent occurring each in the Atlantic and Indian Oceans (Table 7 and Figure 3) . The recent decline in Japan's yellowfin catch has resulted from reduced catches in the regions surrounding the equatorial Pacific and in the Indian Ocean (FAO fishing areas 71 and 77) , which was too big to be offset by small increases that occurred in the Atlantic Ocean during the same period. Figure 3. Disribution of Japan's Yellowfin Tuna Catch, by Major FAO Fishing Area, 1989 10,000 Metric Tons 1,000 Metric Tons 100 Metric Tons 10 Metric Tons 11 TzUsle 7. Distribution of Japan's Yellowfin Tuna Catch, by Major FAO Fishing Area, 1986-1989 Catch fMetric Tons) % Of 1986 Total 1987 Yell 1988 owfin Area* 1986 1987 1988 1989 1989 Pacific Ocean 71 72,234 74,503 53,669 62,818 58 61 48 56 61 12,130 14,326 20,180 16,085 10 12 18 14 77 20,345 15,100 13,213 15,607 16 12 12 14 87 1,917 1,538 3,466 3,613 2 1 3 3 81 1,091 1,687 2,337 1,377 1 1 2 1 67 1 4 40 12 — — — — Total** 107,718 107,168 92,905 99,500 87 88 84 88 Atlantic Ocean I 34 2,801 3,567 4,684 4,476 2 3 4 4 47 714 1,276 1,877 1,878 1 1 2 2 41 1,168 738 1,633 1,697 1 1 1 2 31 393 244 417 970 — — — 1 21 490 605 650 301 — 1 1 — 27 18 20 42 18 — — — — Total** 5,584 6,450 9,303 9,340 4 6 8 9 Indian Ocean 51 8,424 5,263 6,413 2,506 7 4 6 2 57 2,917 2,870 2,487 1,234 2 2 2 1 Total** 11,341 8,133 8,900 3,740 9 6 8 3 Grand Total 124,643 121,751 111,108 112,596 100 100 100 100 * Numbers refer to FAO fishing areas (see Figure 3) ** Total may not add due to rounding. Less than one percent. Data source: FAO Yearbook of Fishery Statistics, Catches and Landings, Vol. 68 12 Between 92 and 95 percent of Japan's albacore catches during 1986 through 1989 occurred in the Pacific Ocean, particularly in the northwest, western central and eastern central Pacific Ocean (FAO fishing areas 61, 71, and 77) (Table 8 and Figure 4). The Atlantic and Indian Oceans accounted for less than 5 percent each. Much of the recent decline in Japan's albacore catches was associated with reduced catches in the western central Pacific (FAO fishing region 71) , and, to a lesser extent, in the Indian and Atlantic Oceans. Figure 4. Disribution of Japan's Albacore Tuna Catch^by Major FAO Fishing Area, 1989 10,000 Metric Tons 1,000 Metric Tons 100 Metric Tons 10 Metric Tons 13 TsUdle 8. Distribution of Japan's Albacore Tuna Catch, by Major FAO Fishing Area, 1986-1989 Catch ^Metric Tons) % of 1986 Total 1987 Alba 1988 icore Area* 1986 1987 1988 1989 1989 Pacific Ocean 61 25,897 26,912 22,954 25,171 52 53 51 52 71 9,772 9,289 4,824 6,609 20 18 11 14 81 2,219 2,886 3,128 6,059 4 6 7 13 77 5,821 6,168 9,201 5,506 12 12 20 11 67 1,633 1,060 1,963 1,802 3 2 4 4 87 369 634 588 308 1 1 1 1 Total** 45,711 46,949 42,658 45,455 92 93 94 95 Indian Ocean 57 1,173 1,034 489 623 2 2 1 1 51 1,162 872 682 381 2 2 2 1 Total** 2,335 1,906 1,171 1,004 4 4 3 2 Atlantic Ocean 47 905 747 407 485 2 1 1 1 4 1 499 235 272 428 1 1 1 1 21 416 402 632 218 1 1 1 1 31 17 50 25 202 — — — — 34 35 19 38 88 — — — — 27 9 25 40 82 — — — — Total** 1,881 1,478 1,414 1,503 4 3 3 3 Grand Total ■ 49,927 50,333 45,243 47,962 100 100 100 100 * Numbers refer to FAO fishing areas (see Figure 4) ** Total may not add due to rounding. Less than one percent. Data source: FAO Yearbook of Fishery Statistics, Catches and Landings, Vol. 68 14 The recent decline in Japan's total bluefin landings has resulted almost entirely from the reduced catches of northern bluefin (Table 9 and 10) . As a result, while Japan's bluefin landings in 1986 consisted of 56 percent southern bluefin and 44 percent northern bluefin in 1989, this ratio shifted to 62 percent southern and 38 percent northern bluefin. In 1989, the major fishing regions for southern bluefin were the Indian Ocean (accounting for 66 percent of the catch) , the southeast Atlantic Ocean (20 percent) , and the southwest Pacific (14 percent) (Figure 5) . In the same year, the major fishing grounds for northern bluefin were the northwest Pacific Ocean (62 percent) and the western central Pacific (23 percent) (Figure 6) . Much of the reduction in Japan's bluefin landings in recent years was the result of the reduced catches of northern bluefin in the northwest Pacific Ocean (FAO fishing area 61) , its main fishing area. Catches of northern bluefin tuna rose sharply in the western central Pacific (FAO area 71) in 1989, but the increase was not enough to offset the major decline which occurred in area 61. Table 9. Distribution of Japan's Southern Bluefin Tuna Catch, by Major FAO Fishing Area, 1986-1989 Area* Catch (Metric Tons) 1986 1987 1988 % of Total S. Bluefin 1989 1986 1987 1988 1989 Indian Ocean 57 7,182 6,422 5,011 6,280 51 1,986 1,992 3,244 2,634 53 46 43 47 15 14 28 20 Total** 9,168 8,414 8,255 8,914 68 60 70 66 Atlantic Ocean 47 2,535 3,696 2,342 2,630 41 20 4 2 1 19 26 20 20 Total** 2,555 3,700 2,344 2,631 19 26 20 20 Pacific Ocean 81 1,754 1,890 1,120 1,924 71 — — ~ 1 87 — ~ 3 1 13 14 10 14 Total** 1,754 1,890 1,123 1,926 13 14 10 14 Grand Total 13,477 14,004 11,722 13,471 100 100 100 100 * Numbers refer to FAO fishing areas (see Figure 5) . ** Total may not add due to rounding. — Less than one Data source: FAO Yearbook of Fishery Statistics, Catches and Landings, Vol. 68 15 Figure 5. Disribution of Japan's Japan's Southern Bluefin Tuna Catchy by Major FAO Fishing Area, 1989 10,000 Metric Tons 1,000 Metric Tons 100 Metric Tons 10 Metric Tons 16 Table 10. Distribution of Japan's Northern Bluefin Tuna Catch, by Major FAO Fishing Area, 1986-1989 Catch (Metric Tons) % of Total N. Bluefin Area* 1986 1987 1988 1989 1986 1987 1988 1989 Pacific Ocean 61 8,925 10,258 4,996 5,188 83 81 65 62 71 23 28 3 1,909 — — — 23 81 33 29 27 45 77 3 12 10 20 Total** 8,984 10,327 5,036 7,162 84 82 65 85 Atlantic Ocean 27 369 234 606 459 3 2 8 5 21 699 985 1,270 338 7 8 16 4 34 322 770 555 302 3 6 7 4 37 341 310 236 108 3 2 3 1 31 9 13 25 17 Total** 1,740 2,312 2,692 1,224 16 18 35 15 Indian Ocean 57 — — — 2 Total** — — — 2 Grand Total 10,724 12,639 7,728 8,386 100 100 100 100 * Numbers refer to FAO fishing areas (see Figure 6) ** Total may not add due to rounding. Less than one. Data source: FAO Yearbook of Fishery Statistics, Catches and Landings, Vol. 68 17 Figure 6. Disribution of Japan's Northern Bluefin Tuna Catch, by Major FAO Fishing Area, 1989 s-i" 10,000 Metric Tons 1,000 Metric Tons 100 Metric Tons 10 Metric Tons 18 4. WORLD TUNA IMPORTS Major tuna importers in the world are listed in Table 11 for import volume and in Table 12 for import value, as of 1988, the latest year in which world import data are available. Tuna is an important commodity in the international market. In 1988, the global total of tuna imports was 1.48 million tons in volume, 59 percent of the world total landings, and 3.2 billion dollars in value. The United States led the world in import volume for all types of products combined (Table 11) , but Japan was the leading importer in value (Table 12). In 1988, the United States imported 18 percent in volume and 16 percent in value. In the same year, Japan imported 17 percent in volume and 29 percent in value. This contrast is due mainly to the fact that Japan's imports were concentrated on high- valued products for raw consumption, mainly fresh and frozen tuna. It is particularly noteworthy that the United States led the rest of the world in imports of prepared products (canned tuna) both in volume and value by a wide margin. It accounted for 30 percent in volume and 28 percent in value in this category. Table 11. Tuna Imports by Major Countries, by Volxime, 1988 (Metric Tons) Country Fresh Frozen Prepared Total U.S.A. Thailand Japan Spain Italy World 2,328 35,660 1,394 29,465 171,655 256,291 211,612 124,196 84,080 96,249 578 4,049 1,686 9,284 267,904 259,197 251,321 127,276 122,829 Total, 160,405 1,002,768 317,331 1,480,504 Less than one metric ton Data source: FAO Yearbook of Fishery Statistics, Commodities, Vol. 67 Japan led the world in imports of fresh products in both volume and value, and of frozen products in value. In the category of fresh products, Japan was followed closely by Italy which accounted for about 18 percent in volume and 13 percent in value. It is noteworthy that the U.S. imports of fresh products were virtually nil. Whereas Japan's imports of fresh products in value was as much as 60 percent of the world total, its share in volume was only 22 percent. This 19 was because Japan's imports of fresh tuna included high-valued bluefin tuna air-shipped from various parts of the world. Thailand led the world in imports of frozen products in volume, with about 2 6 percent of the world total, but its share in value in this category, at about 2 5 percent, is behind Japan's 3 6 percent. Again, Japan's imports of frozen tuna included high-valued tuna for raw consumption, whereas Thailand's imports consisted largely of less expensive materials with which to manufacture canned tuna products. Other major importers of frozen products were the United States (17 percent in volume and 15 percent in value) , Spain (12 percent in volume and 7 percent in value) , Italy (8 percent in both volume and value) , in that order (Table 11 and 12) . Table 12. Tuna Imports by Major Countries, by Value, 1988 (US $1,000) Country Fresh Frozen Prepared Total Japan 242, 363 676, 331 15, 299 933, 993 U.S.A. 277, 610 248, 305 525, 915 Thailand 1- 772 470, 653 2, 486 474, 911 Italy 52, 558 146, 189 40, 516 239, 263 Spain World 3, 002 134, 111 7, 691 145, 470 Total, 401, 191 1,902, 711 902, 040 3,205, 942 Less than one thousand dollars Data source: FAO Yearbook of Fishery Statistics, Commodities, Vol. 67 5. JAPANESE MARKET Overview One of the distinct characteristics of Japanese markets is the fact that this nation, which uses the largest amounts of tuna in the world (about 800,000 tons a year, or about 30 percent of annual global landings) , supports its demand with the world's largest imports (nearly a billion dollars) as a single nation. In volume, imports into Japan represent as much as 3 5 percent of its demand, and this proportion is likely to increase even further (Suisan Keizai Shinbun, January 16, 1991) . Uniquely, Japan is the only major market for raw consumption of tuna, and this market is huge. For example, in 1988, the latest year in which the information is available, about 400,000 tons of tuna was 20 used for raw consumption, and, interestingly, as much as about 3 5 percent of the domestic raw consumption of tuna was supplied from imports (Nikkan-Shokuryo Shinbun, January 7, 1989). Japan's tuna import regulations were first liberalized in 1961. Since then, imports of tuna have steadily increased in Japan. The trend for rising tuna imports into Japan appeared to escalate in recent years. During the 1980 's, imports of fresh and frozen seafood products into Japan essentially doubled (Minato Shinbun, March 31, 1991) , while imports of fresh and frozen tuna increased even more rapidly, 2.8 times in volume and 3.5 times in value. The number of countries supplying tuna to Japan also increased from 21 in 1981 to 61 in 1990 (Suisan Keizai Shinbun, January 16, 1991) . When considering the factors which have influenced the recent rise in tuna imports to Japan, dependance of the Japanese tuna market on imports appears to intensify in the years ahead. Chief among such major factors are: the declining catches by Japan's own fishing fleet, the increasing demand for gourmet food by consumers, and the shift in currency exchange rates, i.e. high yen relative to dollars (Suisan Keizai Shinbun, July 25, 1990) . Tuna species used for raw consumption in Japan are: northern bluefin, southern bluefin, bigeye, yellowfin, and skipjack. Bluefin is the most-prized and hence the highest-priced tuna species in the Japanese market, followed by bigeye, yellowfin and skipjack. Depending upon the fish species as well as the quality of the meat and the season, prices of tuna may range widely, from a high of the 10,000 yen/kg level to a low of the 200 yen/kg level. Bluefin, the largest of all the tuna species, may range up to 9 feet in length, weighing as much as 300 kg. The "toro" (fatty meat) portion of the bluefin tuna meat is rated among the best gourmet food, particularly suited for raw consumption. Bluefin is generally sold to high-class Japanese-style and specialty sushi (various Japanese dishes made with a rice base topped with various ingredients such as raw or cooked seafood) restaurants. The Japanese name for bluefin "Hon Maguro" (meaning "genuine tuna") is indicative of the status this species enjoys in the Japanese market. Southern bluefin has secured its niche in the Japanese market. By virtue of the quality of its meat which closely resembles that of northern bluefin, southern bluefin enjoys a high demand from restaurants and "sushi" outlets (Tokyo University of Fisheries, 1989) . Bigeye, generally weighing around 4 5 kg, is the only other species than bluefin that provides the "toro" portion in its meat, and the quality of its meat is rated second only to that of bluefin (Tokyo University of Fisheries, 1989) . The fish is also landed in the second largest quantity of all the major tuna species, and hence is popular as a year-round substitute for bluefin. The principal distribution outlets of bigeye are specialty "sushi" restaurants, supermarket chains and fish retailers. Yellowfin is smaller than bigeye, generally weighing between 30 and 40 kg. In contrast to bluefin and bigeye, yellowfin does not 21 contain "toro" in its meat, and is somewhat less reddish in the meat color, somewhat blander in the taste, and cheaper in price. The fish is also the third-largest landed species of tuna next to bigeye, making it available year-round. These characteristics make yellowfin popular for home consumption, sold at supermarket chains and fish retailers. The fish is also used for frozen and canned exports as light-meat tuna. Albacore is the smallest of all the tuna species, generally weighing around 15 kg. The fish is almost exclusively used for canned products, but is also sold in smaller quantities in the form of loins at supermarkets for home consumption as steak and "teriyaki" (A Japanese dish made with fish or shellfish that has been marinated in soy sauce and other flavorings, then grilled on skewers or broiled) . IMPORTS Current Trend Japan is the world's major importer of tuna. In 1990, Japan imported more than 0.25 million tons of fresh and frozen tuna valued at close to a billion dollars (Tables 13 and 14) . Yellowfin and bigeye were the two dominant species, together accounting for as much as 87 percent in both volume and value of total imports. Bluefin was a distant third with 3 percent in volume and 10 percent in value. Albacore and skipjack were the minority species, with combined shares of about 10 percent in volume and 3 percent in value. Japan's imports have risen sharply in recent years, steadily increasing nearly three times in volume and more than tripling in value from 1981 through 1990. Much of this is due to increased imports of the two dominant species, bigeye and yellowfin, and to a lesser extent, bluefin. Increased imports of these three species accounted for 88 percent in volume and as much as 98 percent in value of the overall increase in tuna imports which occurred over the 10- year period. Imports for bigeye increased 2.0 times in volume and 3.4 times in value, those for yellowfin 3.4 times in volume and 3.1 times in value, and those for bluefin 6.0 times in volume and 11.9 times in value. In 1990, Japan's imports of fresh, frozen and prepared tuna were approximately 265,000 tons valued at about 981 million dollars. Frozen products were the most dominant form of tuna imports into Japan, representing as much as 81 percent in volume and 66 percent in value. Fresh tuna accounted for 16 percent in volume and 32 percent in value, followed by dried and canned products with about 3 percent in volume and 2 percent in value (Table 15) . 22 Tahle 13. Japan's Imports of Fresh and Frozen Tuna, by Volume, 1981-1990, (Metric Tons) Species 1981 1982 1983 1984 1985 Skipjack 6,364 21,720 9,810 799 6,144 Alabcore 1,910 2,997 7,638 3,575 2,583 Yellowfin 39,666 48,192 57,742 48,770 75,396 Bluefin 1,162 1,049 3,855 4,226 4,838 Bigeye 43,875 46,397 52,932 46,651 52,159 Total 92,977 120,355 131,977 104,021 141,120 Species 1986 1987 1988 1989 1990 Skipjack 2,879 3,854 3,420 3,218 25,633 Albacore 2,433 2,992 3,135 2,867 1,808 Yellowfin 66,781 98,106 120,099 110,201 134,360 Bluefin 5,246 5,101 5,838 6,845 6,956 Bigeye 57,778 74,672 77,413 83,313 88,715 Total 135,117 184,725 209,905 206,444 257,472 Table 14. Japan's Imports of Fresh and Frozen Tuna, by Value, 1981-1990, (US$1,000) Species 1981 1982 1983 1984 1985 Skipjack 6,603 16,631 6,861 439 4,438 Albacore 4,367 5,762 12,382 5,271 3,523 Yellowfin 128,101 136,831 139,260 137,558 150,956 Bluefin 8,210 6,826 18,901 29,517 26,252 Bigeye 129,725 135,339 127,761 159,216 133,289 Total 276,466 301,389 305,165 332,001 318,458 Species 1986 1987 1988 1989 1990 Skipjack 2,2 60 3,335 3,577 2,740 23,853 Albacore 3,338 4,044 5,594 5,787 3,345 Yellowfin 180,106 248,365 341,997 349,143 395,419 Bluefin 44,874 47,845 86,296 90,615 97,948 Bigeye 188,332 275,965 359,895 472,558 436,199 Total 418,910 579,554 797,359 920,843 956,764 Source: Japan Marine Products Impporters Association, 1981-1991 23 T2d3le 15. Japan's Imports of Tuna, by Product Form, 1989-1990 - Volume fTons) Value fUS 1989 $1,000) Product Form 1989 1990 1990 Fresh: Yellowfin 22,180 26,658 119,834 158,591 Bigeye 12,246 11,818 79,504 83,570 Bluefin 2,759 2,999 58,824 68,934 , Albacore 92 129 538 578 Skipjack 7 4 26 6 Other 1 3 12 20 Total 37,285 41,611 258,738 311,699 ■ Frozen: Bigeye 71,067 76,897 393,054 352,629 Yellowfin 88,021 107,702 229,310 236,828 Bluefin 4,086 3,957 31,791 29,014 Skipjack 3,211 25,629 2,714 23,847 Albacore 2,775 1,679 5,250 2,767 Other ■ Total 67 46 127 168 169,227 215,910 662,246 645,253 Dried: Skipjack , 1,440 1,064 6,375 4,438 Canned: 4,079 6,898 12,715 19,879 Grand Total 212,031 265,483 940,074 981,269 Source: Japan Marine Products Importers Association, 1980-1991. Imports of Fresh Tuna Yellowfin tuna is the dominant species of tuna imported into Japan, both in fresh and frozen categories. A sharp increase in imports of fresh tuna into Japan has been particularly pronounced since 1985. Imports of fresh yellowfin doubled during this time (Table 16) , and the rise has been consistent and accelerating, indicating the presence of a stable market for this product in Japan. This is due partly to a recent phenomenon called "fresh food rush" in Japan, the escalation of consumer preference to fresh gourmat food, and partly to the fact that catches of tuna in the domestic waters off Japan have leveled off (Suisan Keizai Shinbun, July 25, 1991 & July 26, 1991). In general, the supply of highly prized tuna meat called "toro" which typically comes from bluefin tuna, has dwindled sharply, whereas the supply of so-called "akami" (meaning "red meat") fish, typically lean loins of yellowfin and bigeye, has become the dominant portion of the supply. Although the "fresh food rush" has 24 affected all three greatest increases. species, sales of yellowfin have shown the More than 3 countries have supplied fresh tuna to Japan in recent years. Taiwan has been consistently the leading supplier of fresh yellowfin and bigeye tuna to Japan (Tables 16 and 17) . Indonesia has emerged as the No. 2 supplier of both of these products in the past 2 to 3 years, but it is believed that these products have been caught by Taiwanese vessels and shipped through Indonesia. The Table 16. Japan's Imports of Fresh Yellowfin Tuna, by Major Countries, by Volume, 1981-1990 (Metric Tons) Country 1981 1982 1983 1984 1985 Taiwan 9 ,600 10 ,331 10,299 9,994 9,712 Indonesia 3 20 48 Philippines 445 517 1,388 2,621 2,877 Guam 17 Malaysia Palau — - Singapore 41 27 U.S.A. 31 6 9 2 1 Australia 2 4 13 79 128 New Caledonia Total* 10 ,109 10 ,909 11,746 12,718 12,958 Country 1986 1987 1988 1989 1990 Taiwan 10 ,346 11 ,599 10,214 10,247 10,982 Indonesia 76 644 1,601 4,040 5,415 Philippines 3 ,415 3 ,712 3,919 3,914 3,757 Guam 23 357 332 674 1,968 Malaysia 45 442 1,042 1,741 Palau 50 1,273 Singapore 16 208 1,018 1,448 736 U.S.A. 186 332 1,037 321 326 Australia 388 304 144 313 242 New Caledonia 3 24 54 108 Total* 14 ,458 17 ,260 19,353 22,180 26,658 * Total also includes other countries not listed Less than one metric ton Source: Japan Marine Products Importers Association, 1980-1991 25 Table 17. Japan^s Imports of Fresh Bigeye Tuna, by Major Countries, by Volume, 1981-1990 (Metric Tons) Country 1981 1982 1983 1984 1985 Taiwan 563 671 1,014 1,513 1,875 Indonesia 2 7 41 Malaysia Guam 19 Palau V U.S.A. 1 6 124 147 164 Singapore 13 16 Philippines 520 - ... 34 6 - ^ 213 173 155 Ecuador Reunion , . Total* 1,117 1,040 1,371 1,843 2,250 Country 1986 1987 1988 1989 1990 Taiwan 2,887 6,467 4,921 3,571 2,486 Indonesia 52 518 1,282 3,432 2,378 Malaysia 37 280 1,169 1,963 Guam 8 152 . 367 1,156 1,895 Palau 106 1,221 U.S.A. 335 447 671 830 684 Singapore 25 256 1,116 1,482 620 Philippines 147 236 152 302 291 Ecuador 2 2 71 114 Reunion ___ _. 29 Total* 3,474 8,246 9,339 12,246 11,818 * Total also includes other countries not listed. Less than one metric ton. Source: Japan Marine Products Importers Association, 1980-1991. same may be said to varying degrees for the shipments from Guam, Palau, and Singapore, among others, which have also sharply increased supplies of fresh tuna to Japan recently. Taiwan, whose supply of fresh yellowfin to Japan has leveled off at slightly above 10,000 tons per year for the past decade, is expected to continue to remain the dominant supplier to Japan for some time in the future. Supplies of fresh bigeye from Taiwan to Japan, however, have declined continuously since 1988, while 26 shipments of this product from Indonesia, Malaysia, and Guam have increased sharply (Table 17) . It is likely that if the present trend continues, Indonesia may replace Taiwan as the leading supplier of fresh bigeye to Japan even as early as 1991. Imports of fresh yellowfin and bigeye from the United States have generally been small, holding around 300 tons in 1989 and 1990 for yellowfin (Table 16) and between 700 to 800 tons for bigeye (Table 17) . An important recent trend is the increase in the supply of fresh tuna air-shipped into Japan from overseas sources. Prompted partly by the rise in consumer preference for fresh food, and partly by the fact that the domestic supply of fresh tuna has leveled off, imports of fresh tuna have expanded steadily over the years. In spite of the fact that airlifting adds to the costs, Japanese experts predict continued rise in imports of fresh overseas tuna in years ahead, to such an extent that it may even impact the pricing of frozen tuna in the domestic market (Suisan Keizai Shinbun, July 25, 1990). Japan's imports of fresh bluefin tuna have been particularly pronounced since 1985 (Table 18) . In 1990, imports of fresh bluefin tuna into Japan reached nearly 3,000 tons, triple over the 1985 imports. The United States has been the leading supplier of fresh shipped bluefin tuna to Japan, with annual shipments of about 800 to 900 tons for the past several years. The so-called "jumbo bluefin" caught off New England is the most prized of all tuna products in Japan. Large bluefin tuna caught off Los Angeles made a debut in Japan in 1988, and was considered to be as good in quality as those caught in Japanese domestic waters. However, this new fishing ground is yet to establish itself as a steady source of supply. Other new small fishing grounds have also emerged near Tunisia, Turkey, Morocco, and Greece. Supplies from Spain include pen-held bluefin, which can be shipped throughout the year. Since the supply from the United States has essentially leveled off, the recent rise in imports of fresh bluefin into Japan was entirely the result of increased shipments from these other sources. Consequently, the U.S. share as the supplier of this prized product to Japan has dwindled steadily recently, from 57 percent in 1985 to 27 percent in 1990 in volume. Imports of Frozen Tuna Rise in imports of frozen tuna into Japan has been phenomenal in recent years. The trend has been led by yellowfin and bigeye which together supplied the co-called "akami" used in "sashimi" (Japanese name for various kinds of raw seafood, sliced thin and accompanied by condiments) and "sushi". Since 1985, imports of frozen yellowfin rose from about 36,000 tons in 1984 to about 108,000 tons in 1990, (Table 19) . During the same period, imports of frozen bigeye rose from about 45,000 tons to about 77,000 tons. These frozen yellowfin and bigeye together represented about 8 3 percent in volume and about 71 percent in value of the combined fresh and frozen yellowfin and bigeye imported in 1990 (Table 15) . 27 Table 18. Japan's Imports of Fresh Bluefin Tuna, by Major Countries, 1981-1990 (Metric Tons) Country 1981 1982 1983 1984 1985 U.S.A. 256 141 503 531 549 Tunisia Spain 6 54 145 Australia ;■ 10 6 8 5 Canada 177 181 289 164 78 Morocco :- Turkey 1 99 Korea , Rep . 30 31 13 4 1 Taiwan 65 132 118 170 54 Greece Total* 1 6 533 503 933 957 962 ! ) i, Country 1986 1987 1988 1989 1990 i U.S.A. 589 939 856 889 815 Tunisia ___ 95 225 357 Spain 104 171 389 250 356 Australia 263 72 . 458 325 345 Canada 2 5 43 303 454 310 Morocco 21 59 170 209 Turkey 669 243 104 156 140 Korea, Rep. 344 89 33 71 132 , Taiwan 78 80 52 66 112 |; Greece Total* 71 54 56 72 84 2,150 1,723 2,428 2,759 2,999 * Total also includes other countries not listed. Less than one metric ton. Source: Japan Marine Products Importers Association, 1980-1991 In 1990, Taiwan became the leading supplier of frozen yellowfin to Japan, passing Republic of Korea which had been the leader for quite some time. Republic of Korea remained the leading supplier of frozen bigeye to Japan, however (Table 20) . Imports of frozen bigeye into Japan from Taiwan have risen sharply in recent years, and in 1990 Taiwan's share was close to Republic of Korea's. 28 Table 19. Japan's Imports of Frozen Yellowfin Tuna, by Major Countries, by Volume, 1981-1990 (Metric Tons) Country 1981 1982 1983 1984 1985 Taiwan 3,376 3,561 5,654 4,600 7,729 Korea, Rep. 19,053 19,274 26,852 17,250 18,119 Indonesia 1,525 2,467 2,167 2,619 3,606 Mexico 523 67 96 15 Panama 1,232 1,585 1,509 1,653 2,922 Honduras 754 406 526 Solomon Islands 979 2,983 3,925 4,262 5,381 U.S.A. 375 55 9,720 Guam 664 1,319 521 1,050 Singapore 230 575 370 320 281 Total* 29,558 37,283 45,996 36,051 62,438 Country 1986 1987 1988 1989 1990 Taiwan 10,557 20,687 22,705 20,994 37,250 Korea, Rep. 24,143 30,161 38,535 21,343 25,998 Indonesia 3,280 7,252 8,179 10, 120 10,738 Mexico 141 5,070 21,227 18,000 5,632 Panama 7,222 5,147 3,431 2,496 4,149 Honduras 956 1,297 2,324 2,635 3,938 Solomon Islands 1,826 2,110 1,948 1,619 3,175 U.S.A. 1,605 3,115 2,904 259 3,100 Guam 16 482 892 1,921 Singapore 352 1,297 3,004 1,711 1,860 Total* 52,323 80,846 100,747 88,021 107,702 * Total also includes other countries not listed. Less than one metric ton. Source: Japan Marine Products Importers Association, 1980-1991. Republic of Korea and Taiwan together have long been the dominant suppliers of frozen yellowfin and bigeye to Japan. These two nations supplied Japan with as much as about 76 percent of all frozen yellowfin in 1981 but the share declined to about 59 percent in 199 due to increased imports from Indonesia, Mexico, Panama, Honduras, Solomon Islands, the United States, Guam, and Singapore (Table 19) . A total of 17 nations supplied frozen yellowfin tuna to Japan in 1981, but the number has swelled to 44 in 1990. Republic of Korea and Taiwan together also accounted for nearly 88 percent of 29 frozen bigeye imports into Japan in 1981, but again their share declined to about 68 percent in 1990, as a result of increased imports of this product from Honduras, Panama, Indonesia, Ecuador, Singapore, Portugal, Canary Islands, and U.S.A. (Table 20). Japanese imports of frozen yellowfin from the United States have tended to increase over the years, with some fluctuation. In 1990, they were 3,100 tons, approximately 3 percent of the total Japanese Table 20. Japan's Imports of Frozen Bigeye Tuna, by Major Countries, by Volume, 1981-1990 (Metric Tons) Country 1981 1982 1983 1984 1985 Korea , Rep . 29,059 27,278 30,831 25, 985 28,008 Taiwan 8,467 10,732 13,639 11, 364 11,725 Honduras 46 369 354 Panama 2,700 2,670 2,245 3 ,165 4,461 Indonesia 499 984 1,504 1 ,672 2,736 Ecuador 658 761 361 24 Singapore 926 1,055 836 589 373 Portugal 44 Canary Islands 47 U.S.A. 49 12 5 26 267 Total* 42,758 45,356 51,561 44,808 49,909 Country 1986 1987 1988 1989 1990 Korea, Rep. 31,811 35,865 33,950 31,447 29,333 Taiwan 14,154 16,118 17,586 18,977 23,990 Honduras 757 1,406 2,155 4,326 5,674 Panama 5,133 5,616 3,847 3,159 5,258 Indonesia 2,535 3,602 3,406 4,935 4,609 Ecuador 361 169 477 859 1,587 Singapore 496 664 1,859 1,180 1,210 Portugal 3 9 668 Canary Islands 49 85 776 621 U.S.A. 9 44 9 6 13 Total* 54,304 66,426 68,074 71,067 76,897 * Total also includes other counties not listed. Less than one metric ton. Source: Japan Marine Products Importers Association, 1980-1991, 30 41 68 1,964 2,420 3,352 99 138 102 211 100 147 37 229 97 54 169 252 116 92 85 imports of this product. The highest amount ever achieved by the U.S. product was 9,720 tons, occurring in 1985. Japanese imports of frozen U.S. bigeye have been minuscule, totaling only 13 tons in 1990. The historical high for this product was 2 67 tons, again occurring in 1985. Japanese imports of frozen bluefin have been essentially stable, generally remaining within a narrow range between 3,000 and 4,000 tons since 1983 (Table 21) . This contrasts sharply with the precipitous rise in imports of highly prized fresh bluefin in recent years. More than half of frozen bluefin is imported from Australia. Other major suppliers are Taiwan, Spain and New Zealand. Supply of frozen bluefin from the United States is minuscule, being essentially T2ible 21. Japan's Imports of Frozen Bluefin Tuna, by Major Countries, 1981-1990 (Metric Tons) Country 1981 1982 1983 1984 1985 Australia Taiwan Spain New Zealand Portugal Venezuela Tunisia Honduras Korea, Rep. 4 1 16 63 Panama 1 U.S.A. 108 83 263 Total* 629 546 2,922 3,269 3,877 Country 1986 1987 1988 1989 1990 Australia 2,497 2,798 1,703 2,085 2,444 Taiwan Spain New Zealand Portugal Venezuela Tunisia Honduras Korea, Rep. Panama U.S.A. Total* 3,096 3,378 3,410 4,086 3,957 * Total also includes other countries not listed. Less than one metric ton. Source: Japan Marine Products Importers Association, 1980-1991. 31 61 146 243 889 715 50 95 773 378 338 74 53 84 122 249 75 30 25 18 47 121 19 10 98 323 282 134 1 11 39 17 66 57 12 230 27 15 6 nil in 1990. The" historical high of frozen U.S. bluefin imports into Japan was 263 tons achieved in 1984. In 1990, Japan's imports of skipjack tuna recorded a historical high of 25,629 tons, 8 times the total for 1989. This surge in imports was prompted by an unexpected drop in domestic catches and the consequent rise in price for this species. Sharply increased imports in 1990 came from all suppliers, led by Indonesia, Taiwan, Maldive, Singapore, Solomon Islands, the Philippines, and Republic of Korea. Japanese imports of frozen skipjack from the United States have been insignificant (Table 22) . Table 22. Japan 's Imports Of Frozen Skipjack Tuna, by Major Countries, 1981-1990 (Metric Tons) Country 1981 1982 1983 1984 1985 Indonesia 313 1,827 4,327 179 712 Taiwan 96 57 54 17 33 Maldive 2,031 2,996 174 3,084 Singapore 10 327 17 Solomon Islands 2,964 10,293 3,295 78 113 Philippines 49 1,549 3 926 France 366 Korea, Rep. 217 : 1,457 745 81 246 Australia 56 8 U.S.A. -■ — 153 4 Ill Total* 6,222 21,488 9,776 797 6,144 Country 1986 1987 1988 1989 1990 Indonesia 976 2,301 1,850 2,518 14,269 Taiwan 33 148 477 47 3,552 Maldive 1,179 1,079 951 76 3,068 Singapore 240 1,742 Solomon Islands 515 43 23 119 1,116 Philippines 48 729 France 10 471 Korea, Rep. 78 89 32 164 443 Australia 35 65 U.S.A. 26 43 4 3 Total* 2,859 3,823 3,379 3,211 25,629 * Total also includes other countries not listed. Less than one metric ton. Source: Japan Marine Products Importers Association, 1980-1991 32 Tariffs Imports of tuna products into Japan are subject to tariffs (Table 23) . As Japan and the United States are signatories to the General Agreement on Tariffs and Trade (GATT) , the lower tariffs apply to U.S. exports of tuna products: 5 percent on fresh or frozen products, 15 percent on prepared or preserved products including products in airtight containers, and 15 percent on salted, smoked or dried products. Tariff rates are calculated as a percentage of GIF (cost, insurance, freight) value. Table 23. Japanese Tariff Structure for Tuna, 1991 (Percent of GIF Value) Fresh/Chilled/ Salted/Dried/ Prepared/ Frozen Smoked preserved GATT 5.0 15.0 15.0 General 10.0 15.0 20.0 Data source: Japan Marine Products Importers Association, 1991 COLD STORAGE HOLDINGS Table 24 shows Japan's year-end inventory of frozen tuna (cold storage holdings) between 1981 and 1990. The amount of inventory has remained within 45,000 tons to 83,000 tons during this period, with an average of 60,800 tons. The year-end inventories represented between about 5 and 7 percent of the total supply of tuna in the domestic market during following year. Since the amounts of inventory remained relatively stable, and low in percentage of total supplies, they were not a major factor influencing yearly fluctuations in supply and prices. Table 24. Japan's Year-end Cold Storage Holdings of Frozen Tuna, 1981-1990 (1,000 Metric Tons) Species 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 Skipjack 16 20 23 18 15 22 20 29 17 29 Albacore 3 8 7 6 7 7 9 6 9 11 Bigeye 6 14 11 7 16 14 15 12 13 15 Yellowfin 10 11 10 6 17 11 11 13 10 20 Bluefin 8 8 12 8 8 7 9 6 7 8 Total 46 61 63 45 63 61 64 66 56 83 Source: National Marine Fisheries Service, 1982-1991 33 Table 25 shows monthly changes in inventory for 1990, as an example. It is seen that the inventory grows throughout the year toward a maximum at the end of December. TiLble 25. Japan's Monthly Cold Storage Holdings of Frozen Tuna, 1990 (1,000 Metric Tons) Species Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Skipjack 16 11 11 14 18 7 21 20 21 20 23 29 Albacore 9 9 9 11 14 10 12 13 12 12 11 11 Bigeye 12 13 15 15 17 17 18 16 16 16 15 15 Yellowfin 11 12 15 17 7 20 21 19 19 20 19 20 Bluef in 7 8 8 8 8 7 7 7 8 9 9 8 Total 55 53 58 65 64 61 79 75 76 77 77 83 Source: National Marine Fisheries Service, 1990-1991 SUPPLY Japan's supply of tuna for any given year is comprised of three parts: the cold-storage inventory as of January 1, the catch by its own fleets in domestic, distant and foreign waters, and imports (Table 26) . Between 1985 and 1990, the January inventory averaged 59,000 tons (about 6 percent of the total supply, the catch 690,000 tons (about 74 percent), and the imports 189,000 tons (about 20 percent). The catches fluctuated between a high of 781,000 tons and a low of 563,000 tons, but the mitigating effects of imports helped keep the annual supplies relatively stable. Annual supplies during this period ranged between a high of about 1,02 6,000 tons to a low of 872,000 tons. With respect to individual species, annual supplies of skipjack ranged between 457,000 and 339,000 tons between 1985 and 1990. In 1990, increased imports of skipjack helped avert a potential sharp decline in annual supply due to a large drop in both catch and inventory for this species in that year. Annual supplies of albacore ranged between 67,000 and 55,000 tons during the same period. Annual supplies of bigeye ranged between 250,000 and 208,000 tons, and those of yellowfin between 242,000 and 209,000 tons. For these two species, the catches declined steadily between 1985 and 1990, but increased imports helped preserve annual supplies. Imports of bigeye rose 71 percent from 52,000 tons in 1985 to 89,000 tons in 1990, and those of yellowfin 79 percent from 75,000 tons in 1985 to 134,000 tons in 1990. Annual supplies of bluef in during the same period 34 experienced steady decline, from 43,000 tons in 1985 to 27,000 tons in 1990, due mainly to a continuous decline in catches which were not made up for with increased imports. Table 26. Japan's Tuna Supply and Demand, (1,000 Metric Tons) 1985-1990 1985 1986 1987 1988 1989 1990 Inventory, Jan. 1: Skipjack 18 15 22 20 29 17 Albacore 6 7 7 9 6 9 Bigeye 7 16 14 15 12 13 Yellowf in 6 17 11 11 13 10 Bluefin 8 8 7 9 6 7 Total 45 63 61 64 66 56 Catch: Skipjack 315 412 331 434 338 299 Albacore 58 50 50 45 48 44 Bigeye 149 170 161 144 149 114 Yellowf in 134 125 122 111 113 93 Bluefin 30 24 27 19 22 13 Total 686 781 691 753 670 563 Imports: Skipjack 6 3 4 3 3 26 Albacore 3 2 3 3 3 2 Bigeye 52 58 75 77 83 89 Yellowf in 75 67 98 120 110 134 Bluefin 5 5 5 6 7 7 Total 141 135 185 209 206 258 SUPPLY 872 979 937 1,026 942 877 Exports: Skipjack 33 57 32 111 49 36 Albacore 7 7 5 11 19 11 Yellowfin 7 5 6 6 4 4 Total 47 69 43 128 72 51 Inventory, Dec. 31: Skipjack 15 22 20 29 17 29 Albacore 7 7 9 6 9 11 Bigeye 16 14 15 12 13 15 Yellowfin 17 11 11 13 10 20 Bluefin 8 7 9 6 7 8 Total 63 61 64 66 56 83 DEMAND 762 849 830 832 814 743 Source: National Marine Fisheries Service, 1985-1991; Ministry of Agriculture, Forestry, & Fisheries, Government of Japan, 1982 & 1990; Suisan Tsushin, June 4, 1991. 35 CONSUMPTION In Japan, tuna ranks first in consumption of seafood product in value and second in volume (Table 27) . In 1990, the average Japanese family spent 10,277 yen (75 dollars) on fresh and frozen tuna. This led the second-place shrimp and the third-place squid by wide margins, 7,889 yen (58 dollars) for shrimp and 5,675 yen (41 dollars) for squid. Expenditure for tuna was more than twice that for yellowtail, more than 3 times for salmon, and about 14 times that on mackerel. In terms of volume, annual per household consumption of fresh and frozen tuna in 1990 was 4 kilograms or 8.8 pounds. This was slightly behind the 5 kilograms for squid, 20 percent more than the third place shrimp, and nearly twice that for mackerel. Reflecting the recent boom of sales of fresh gourmet foods in Japan, consumption of tuna per average household has been increasing in recent years. From 1988 to 1990, the average per household consumption of tuna rose nearly 8 percent in expenditure and 24 percent in volume. A slight decrease in volume in 1990 (about 2 percent from 1989) was due mainly to a drop in consumption of skipjack (Suisan Tsushin, June 4, 1991). T2U3le 27. Japan's Annual Per Household Consiimption of Fresh and Frozen Fish and shellfish, by Major Species, 1988-1990 Expenditure (yen) Quantity (gram) Species 1988 1989 1990 1988 1989 1990 Tuna 9,549 9,925 10,277 3,225 4,077 3,998 Shrimp 7,514 7,849 7,889 3,206 3,446 3,340 Squid 6,170 5,908 5,675 5,983 5,981 5,290 Yellowtail 4,410 4,205 4,712 2,183 1,966 2,321 Salmon 1,872 2,158 2,633 1,134 1,402 1,681 Mackerel* 827 967 750 1,465 1,707 1,232 * Excludes jack mackerel and Spanish mackerel. Source: Suisan Keizai Shinbun, March 1, 1990 & March 4, 1991 PRICE TREND Exvessel Prices Annual average exvessel prices of both fresh and frozen bluefin tuna at 51 landing ports is shown in Table 28, together with annual landing volumes. The exvessel prices at landing ports were generally dominated by the landed volume: the greater the landings, the lower the prices. As shown in Table 28, the lowest price of fresh bluefin, 36 TzUsle 28. Annual Landings and Average Exvessel Prices of Bluefin Tuna at 51 Landing Ports in Japan, 1979-1990 Year Fresh Metric Tons Yen/kg Frozen Metric Tons Yen/kg 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 13,235 1,127 7,482 1,285 20,989 887 19,539 1,063 11,657 1,287 2,306 1,906 2,535 1,250 2,647 1,664 3,861 1,234 2,571 1,593 5,075 1,743 1,807 2,848 21,489 2,641 27,086 2,058 28,162 2,259 17,794 2,958 16,375 3,251 18,536 3,226 18,747 3,059 12,814 4,342 12,820 3,649 9,613 4,326 8,574 5,101 9,430 4,849 Source: Suisan Tsushin, June 2, 1989, June 5, 1990 & June 5, 1991; Ministry of Agriculture, Forestry & Fisheries, Government of Japan, 1988 & 1990; National Marine Fisheries Service, 1989-91. 887 yen/kg, was realized in 1981 when landings were at a high of 20,989 tons. Likewise, with respect to frozen bluefin, the two lowest prices of 2,058 and 2,259 yen/kg, occurring respectively in 1980 and 1981, corresponded to peak landings of 27,086 and 28,162 tons for these years. The similar trend of inverse relationships between the exvessel prices and the landing volumes at the landing ports was recognized with other species used for fresh consumption such as yellowfin (Table 29) , bigeye (Table 30) , and skipjack (Table 31) , but not with albacore (Table 32) which is used almost exclusively for canned products in Japan. As a result, the time histories of exvessel prices at the landing ports for bluefin, yellowfin, bigeye, and skipjack were essentially mirror images of the history of their landing volumes. Occasional exceptions to this rule occurred with respect to yellowfin and bigeye, the two species which both supply the "akami" meat and appear to be mutually related. For instance, in 1990, the wholesale prices of frozen yellowfin fell 26 percent from 1989, from 771 to 572 yen/kg, which in turn triggered a drop in prices for bigeye by 6 percent, from 1,228 in 1989 to 1,149 yen/kg in 1990, in spite of the fact that the landings of bigeye remained essentially unchanged for these years. 37 Table 29. Annual Landings and Average Exvessel Prices of Yellowfin Tuna at 51 Landing Ports in Japan, 1979-1990 Year Fresh Metric Tons Yen/kg Frozen Metric Tons Yen/ kg 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 Source: 25,328 677 26,369 696 19,032 750 13,984 845 18,186 730 19,688 770 25,718 674 13,602 681 15,320 591 14,456 659 15,158 793 14,687 746 34,035 640 44,203 519 51,324 541 64,355 474 59,394 436 39,900 668 34,953 628 32,338 526 29,440 511 27,184 532 24,977 771 32,248 572 Suisan Tsushin, June 2, 1989, June 5, 1990 & June 5, 1991; Ministry of Agriculture, Forestry & Fisheries, Government of Japan, 1988 & 1990; National Marine Fisheries Service, 1989-91. TzU^le 30. Annual Landings and Average Exvessel Prices of Bigeye Tuna at 51 Landing Ports in Japan, 1979-1990 Year Fresh Metric Tons Yen/kg Frozen Metric Tons Yen/ kg 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 12,015 1,336 11,243 1,257 9,836 1,426 9,777 1,435 9,927 1,473 13,048 1,361 12,372 1,380 9,776 1,472 9,059 1,191 6,688 1,629 8,167 1,748 8,211 1,722 79,071 975 71,766 831 66,129 975 75,981 933 89,174 847 69,954 1,145 86,610 917 92,563 872 89,981 838 76,320 1,025 73,799 1,228 73,178 1,149 Source: Suisan Tsushin, June 2, 1989, June 5, 1990 & June 5, 1991; Ministry of Agriculture, Forestry & Fisheries, Government of Japan, 1988 & 1990; National Marine Fisheries Service, 1989-91. 38 Table 31. Annual Landings and Average Exvessel Prices of Skipjack Tuna at 51 Landing Ports in Japan, 1979-1990 Year Fresh Metric Tons Yen/kg Frozen Metric Tons Yen/kg 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 75,978 284 91,744 319 51,094 379 66,318 330 70,282 250 17,925 180 48,082 330 76,256 176 61,953 234 91,602 154 47,612 285 39,784 350 136,334 232 162,037 305 152,302 283 169,473 235 221,606 191 231,134 156 181,881 216 241,471 135 195,522 163 261,908 133 207,974 153 199,138 203 Source: Suisan Tsushin, June 2, 1989, June 5, 1990 & June 5, 1991; Ministry of Agriculture, Forestry & Fisheries, Government of Japan, 1988 & 1990; National Marine Fisheries Service, 1989-91. Table 32 . Annual Landings and Average Exvessel Prices of Albacore Tuna at 51 Landing Ports in Japan, 1979-1990 Year Fresh Metric Tons Yen/kg Frozen Metric Tons Yen/kg 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 19,471 395 26,338 445 19,264 542 26,613 480 14,888 432 19,364 414 15,775 434 16,142 358 19,177 325 17,099 358 18,357 410 20,040 383 44,655 387 39,601 396 36,003 515 35,086 401 27,563 338 38,866 363 34,840 346 27, 140 248 28,060 259 24,262 243 25,789 265 23,270 279 Source: Suisan Tsushin, June 2, 1989, June 5, 1990 & June 5, 1991; Ministry of Agriculture, Forestry & Fisheries, Government of Japan, 1988 & 1990; National Marine Fisheries Service, 1989-91. 39 Wholesale Prices Tables 3 3 through 37 show annual average wholesale prices at six major central wholesale markets in Japan between 1983 and 1990, in comparison with the arrival volume. The highest price for any species during this period was achieved by fresh bluefin at 4,937 yen/kg in 1990. Bluefin is the only species which exhibited a steady rise in prices during this period, and this trend was particularly pronounced for the fresh product, reflecting the rapidly dwindling supply of this fish. The prices for fresh bluefin more than doubled from 2,200 yen/kg in 1983 to 4,937 yen/kg in 1990. The prices for frozen bluefin rose from 3,240 to 4,293 yen/kg over the same period, an increase of about 3 3 percent. Tzible 33. Arrivals and Average wholesale Prices of Bluefin Tuna at Six Major Central Wholesale Markets in Japan, 1983-1990 Fresh Frozen Year Metric Tons Yen/kg Metric Tons Yen/kg 1983 7,750 2,2 00 16,025 3,240 1984 3,696 3,051 ■' 18,144 3,079 1985 3,565 2,827 , 18,632 2,998 1986 3,373 3,467 15,204 3,655 1987 3,686 2,975 15,246 3,450 1988 3,798 3,4-73 15,486 3,749 1989 4,665 3,680 11,103 4,754 1990 3,222 4,937 12,841 4,293 Table 34. Arrivals and Average Wholesale Prices of Yellowfin Tuna at Six Major Central Wholesale Markets in Japan, 1983-1990 Fresh Frozen Year Metric Tons Yen/kg Metric Tons Yen/kg 1983 12,328 1,169 26,173 782 1984 14,689 1,201 23,747 967 1985 16,963 1,097 24,181 830 1986 14,692 1,136 29,062 666 1987 13,569 1,100 31,520 657 1988 16,023 1,065 31,379 650 1989 19,265 1,108 23,795 947 1990 21,421 1,156 26,280 732 i Source: Suisan Tsushin, June 5, 1988, June 6, 1989 & June 5, 1990; Ministry of Agriculture, Forestry & Fisheries, Government of Japan, 1988 & 1990; National Marine Fisheries Service, 1989-91. 40 Table 35. Arrivals and Average Wholesale Prices of Bigeye Tuna at Six Major Central Wholesale Markets in Japan, 1983-1990 Year Fresh Metric Tons Yen/kg Frozen Metric Tons Yen/kg 1983 1984 1985 1986 1987 1988 1989 1990 3,838 2,057 4,445 1,989 4,680 1,881 4,320 2,124 5,893 1,803 6,606 1,866 6,473 2,162 7,007 2,227 55,737 1,070 47,800 1,308 54,784 1,113 67,214 998 69,327 987 63,692 1,116 60,765 1,324 58,675 1,337 Table 36. Arrivals and Average Wholesale Prices of Skipjack Tuna at Six Major Central wholesale Markets in Japan, 1983-1990 Year Fresh Metric Tons Yen/kg Frozen Metric Tons Yen/kg 1983 1984 1985 1986 1987 1988 1989 1990 18,822 497 16,828 552 25,236 367 23,931 386 18,773 521 20,906 440 18,341 549 15,197 714 891 498 838 455 812 598 082 466 852 603 N/A N/A N/A N/A N/A N/A N/A - not available Source: Suisan Tsushin, June 5, 1988, June 6, 1989 & June 5, 1990; Ministry of Agriculture, Forestry & Fisheries, Government of Japan, 1988 & 1990; National Marine Fisheries Service, 1989-91. Annual average wholesale prices fluctuated for all species, and, with the exception for albacore, the fluctuations were influenced mainly by the volume of arrivals and, to a lesser extent, by the amount of cold-storage inventory. As a general rule, the greater the arrivals, the lower the prices. 41 Between 1983 and 1990, the annual average wholesale prices for fresh bluefin averaged 3,326 yen/kg, with a high of 4,937 and a low of 2,200. Frozen bluefin averaged 3,652 yen/kg (range: 2,998 - 4,752). The annual average wholesale prices for fresh bigeye, the second highest priced species, averaged 2,014 yen/kg (range: 1,803 - 2,227). In comparison, those for frozen bigeye averaged 1,157 yen/kg (range: 987 - 1,337). The average annual wholesale prices for fresh yellowfin averaged 1,129 yen/kg, nearly a half of fresh bigeye (range: 1,065 - 1,201). In comparison, those for frozen yellowfin averaged 650 -779) . Fluctuation in prices for yellowfin was slightly less than that for bigeye. The average annual wholesale prices of fresh skipjack averaged 503 yen/kg (range: 3 67 - 714) , while those for frozen skipjack averaged 524 yen/kg (range: 455 - 603) . As for albacore, the average annual wholesale prices for the fresh product averaged 527 yen/kg (range: 431 - 701) . In comparison, those for the frozen product averaged 3 61 yen/kg (range: 258 - 449) . Table 37 . Arrivals and Average Wholesale Prices of Albacore Tuna at Six Major Central Wholesale Markets in Japan, 1983-1989 Fresh Frozen Year Metric Tons Yen/kg Metric Tons Yen/kg 1983 1984 1985 1986 1987 1988 1989 N/A - not available Source: Suisan Tsushin, June 5, 1988, June 6, 1989 & June 5, 1990; Ministry of Agriculture, Forestry & Fisheries, Government of Japan, 1988 & 1990; National Marine Fisheries Service, 1989-91. 2,172 - 701 325 496 280 542 815 431 742 467 N/A N/A N/A N/A 3,224 392 4,685 434 5,134 449 4,476 258 3,223 297 3,041 336 1,542 360 42 6. MARKETING STRATEGIES Analyses of global as well as Japanese markets for tunas show that it is recognized that opportunities exist for U.S. tuna fisheries to considerably enhance overseas sales, particularly sales to Japan. Fanning of Bluefin Tuna Bluefin tuna grows to an extremely large size, up to 3 meters in length and weighing as much as 300 kilograms. To raise such fish in an artificial enclosure is a difficult proposition. However, by modifying the objective from "growing the fish in size" to "improving the meat quality", bluefin farming could be made feasible technically as well as economically. In an experimental project launched with Japanese technical assistance at Port Lincoln in south Australia two years ago, southern bluefin were caught in local waters when they were approximately 10 kg in size, and were fattened in two pens which held approximately 850 fish. Southern bluefin of this size would normally be good only for canned products, but the fish raised in this project have turned into high-valued products marketable for raw consumption in Japan. Twelve of the fish, raised for approximately 6 months in the pens to an average weight of 13.5 kg (29.70 pounds) (hence, still considerably small) in size, were offered for auction at the wholesale markets in Tokyo and Kyoto, in August, 1991. Eight fish offered at the Tokyo Central Wholesale Market were sold at very favorable prices, ranging from 2,800 yen/kg ($9.43/lb.) to 4,000 yen/kg ($13.47/lb), with an average of 3,530 yen/kg ($11.89/lb). Prices paid for four fish sold at the Kyoto Central Wholesale Market were also very favorable, ranging from 2,500 yen/kg ($8.42/lb) to 2,600 yen/kg ($8.75/lb), with an average of 2,530 yen/kg ($8.52/lb) (Suisan Tsushin, August 27, 1991). By way of comparison, the average price for fresh bluefin at six wholesale markets in Japan in 1990 was 4,937 yen/kg ($16.62/lb) (Table 33). In a refereed tasting held in Tokyo in August, 1991, farm-grown southern bluefin from the same Australian project, weighing only about 10 kg in size, received superior rating compared to wild frozen southern bluefin and bigeye (Suisan Tsushin, September 2, 1991). Encouraged by these results, Australia is reported to be planning to ship as many as 650 fish from the pens during the high-demand period for bluefin in Japan from October through December, saving around 200 fish to increase their size to 30-35 kg (66-77 pounds) . The success of the Australian bluefin farming project provides encouragement for the U.S. tuna fisheries which have access to small bluefin tuna in domestic waters. Southern California is particularly advantageous for this type of product by virtue of the good air shipment connections to Japan, the relatively stable and mild sea water temperatures in surrounding regions, existence of bluefin in adjacent waters, a fishing community with proven entrepreneurial records, and its past experience with the Japanese bluefin market. 43 Help from Japanese technical expertise would be necessary, at least for early feasibility studies, and the main focus of the study should be placed on the design of the fish pen, transportation of captured small bluefin tuna, control of temperature in the pen, feed, feeding methods with respect to impact on the surrounding environment, disposal of waste, and protection of fish pens against natural forces. Value-added Product An ever expanding list of value-added merchandise using tuna as the base has contributed to increased sales and consumption of tuna in Japan in recent years. One of the notable success stories involved a new product called "negi-toro" introduced in 1990 (Nikkan- Shokuryo Shinbun, August 4, 1990; Suisan Keizai Shinbun, January 30, 1990). Literally meaning "green-onion toro", the product quickly mushroomed with sales of 40 million dollars in about two years. "Negi-toro" (Suisan Keizai Shinbun, January 30, 1990) is essentially a packaged food containing diced meat of bigeye, yellowfin, or even skipjack which has been treated to taste like "toro". Negi-toro is produced using the scrap meat left after preparing the loins. The product is said to have become popular because it was reasonably priced, while offering a high-class image resulting from the name "toro" which is a high-priced item. The product was also popular because it could be consumed without additional preparation, convenience being in high demand in Japan today. Numerous value- added products claiming similar virtues are being introduced by food processors and supermarket chains in Japan (Suisan Keizai Shinbun, January 30, 1991; July 29, 1991). Direct Sales to Supermarket Chains The numerous supermarkets with gigantic national chains have become a significant factor in the Japanese economy. Many of these supermarkets maintain independent supply systems directly dealing with producers, including those located overseas. For this reason, they represent additional buyers of tuna other than the existing wholesale buyers. A large diversity of value-added products using tuna have made an appearance in the supermarkets in recent years. "Negi-toro", already discussed, is one of such products. Another example is "mochi-kaeri (take-out) sushi", which contains pieces of tuna and other material which have been prepared for immediate consumption as sushi, and offered in packages catering to various numbers of individuals ranging from a single consumer to a large gathering (Suisan Keizai Shinbun, July 26, & July 29, 1991) . To reduce costs, U.S. producers may consider providing dual products: tuna loins and negi-toro. Negi-toro could be sold directly to supermarkets for immediate retail, while the loins may be sold to suppliers of "mochi-kaeri sushi" and other similar products, under contract with supermarkets. Lists of major supermarket chains and purchasers for supermarket chains are provided in Appendices A & B, respectively. 44 Target Other Wholesale Markets While the Tokyo Central Wholesale Market is the largest of all wholesale markets in Japan, the commodities being handled by the nation's other wholesale markets are substantial, and prices for the same commodities may vary considerably from market to market. For instance, prices at the Tokyo Central Wholesale Market may not necessarily be higher than those at other markets, but they may even occasionally fall below the prices of other wholesale markets. To illustrate this point. Tables 38 through 41 show annual average wholesale prices at ten major central wholesale markets in Japan in 1989 for bluefin, bigeye, yellowfin, skipjack, and albacore. Highest prices were achieved at the Tokyo Central Wholesale Market only for fresh and frozen bigeye and fresh skipjack and frozen albacore. Highest prices for the prized bluefin occurred at Kyoto for the fresh fish, and prices for the frozen bluefin at Nagoya, Osaka and Yokohama surpassed that at Tokyo by a wide margin. In fact, the price for frozen bluefin at Tokyo even fell below the average of the ten major wholesale markets. In 1989, above-average prices were achieved at widely scattered wholesale markets, namely at Tokyo and Kyoto for fresh bluefin, at Nagoya, Osaka and Yokohama for frozen bluefin, at Tokyo and Yokohama for fresh bigeye, at Tokyo and Nagoya for frozen bigeye, at Fukuoka, Kyoto, Osaka and Tokyo for fresh yellowfin, at Sendai, Sapporo and Nagoya for frozen yellowfin, and at Tokyo, Kyoto and Yokohama for fresh skipjack. Table 38. Arrivals and Average Wholesale Prices of Bluefin Tuna, by Major Central Wholesale Markets in Japan, 1989 Wholesale Fresh Frozen Market Metric Tons Yen/kg Metric Tons Yen/kg Tokyo 2,669 3,964 7,943 4,483 Yokohama 524 2,365 228 5,144 Nagoya 630 2,866 654 6,164 Kyoto 429 5,164 1,996 Osaka 364 3,196 1,842 5,479 Kobe 49 3,319 436 4,306 Sapporo 755 2,770 476 2,549 Sendai 400 2,711 3 1,929 Hiroshima : 162 3,015 5 3,944 Fukuoka 2,300 164 2,081 5,982* 3,482** 11,751* 4,626** * - Total volume, ** Average price Less than one metric ton Source: Ministry of Agriculture, Forestry & Fisheries, Government of Japan, "Suisanbutsu Ryutsu Tokei Nenpo", 1990 45 In 1989, the Tokyo Central Wholesale Market handled between 68 and 75 percent of frozen bluefin and bigeye sold in Japan, but only between 32 and 45 percent of the fresh bluefin, bigeye, yellowfin and skipjack, and as low as about 10 percent of frozen yellowfin. The largest volume of yellowfin was handled at Nagoya (80 percent) for fresh fish and at Osaka (40 percent) for frozen fish. Combining all three major species (bluefin, bigeye and yellowfin) , Tokyo handled the largest amounts of fresh products (35 percent) , but substantial amounts were also handled at Sendai (19 percent) , Osaka (17 percent) and Kyoto (12 percent) . Wholesale markets which handled large amounts of frozen products of these three species in 1989 were Tokyo (58 percent) , Osaka (18 percent) and Nagoya (9 percent) . Japanese importers, listed in Appendix C, can provide detailed information of the on-going and future market conditions at specific locations and times. T2Q>le 39. Arrivals and Average Wholesale Prices of Bigeye Tuna, by Major Central Wholesale Markets in Japan, 1989 Wholesale Fresh Frozen Market Metric Tons Yen/kg Metric Tons Yen/kg Tokyo 3,448 2,697 46,781 1,352 Yokohama 1,251 1,887 7,662 1,266 Nagoya 242 1,335 Kyoto 1,296 1,398 Osaka 371 1,106 5,957 1,181 Kobe 107 1,026 123 1,296 Sapporo 560 995 879 1,319 Sendai 3,123 1,290 343 1,305 Hiroshima 52 1,208 Fukuoka 402 1,170 10,208* 1,827** 62,389* 1,323** * - Total volume, ** Average price Less than one metric ton Source: Ministry of Agriculture, Forestry & Fisheries, Government of Japan, "Suisanbutsu Ryutsu Tokei Nenpo", 1990 Direct Sale to the Tokyo Central Wholesale Market According to information provided by the U.S. Embassy in Tokyo U.S. exporters of fresh tuna can participate directly in fish and seafood auctions at the Tokyo Central Wholesale Market (TCWM) by exporting on a consignment basis. Auction houses at TCWM are authorized by the Japanese Fisheries Agency of the Ministry of Agriculture, Forestry and Fishery to sell at auction, or through 46 Table 40. Arrivals and Average Wholesale Prices of Yellowfin Tuna, by Major Central Wholesale Markets in Japan, 1989 Wholesale Fresh Frozen Market Metric Tons Yen/kg Metric Tons Yen/kg Tokyo 3,458 1,115 2,560 894 Yokohama 683 873 630 936 Nagoya 8,751 1,028 8,314 1,018 Kyoto 1,400 1,405 Osaka 3,941 1,240 9,823 907 Kobe 1,032 1,013 2,468 921 Sapporo 60 864 697 1,201 Sendai 1568 938 64 1,272 Hiroshima 24 857 1 236 Fukuoka 1,854 21 891 10,937* 1,094** 24,578* 955** Table 41. Arrivals and Average Wholesale Prices of Fresh Skipjack and Frozen Albacore Tuna by Major Central Wholesale Markets in Japan, 1989 Wholesale Market Fresh Metric Tons Yen/kg Frozen Metric Tons Yen/kg Tokyo Yokohama Nagoya Kyoto Osaka Kobe Sapporo Sendai Hiroshima Fukuoka 9,712 2,959 2,886 190 2,103 491 252 4,786 202 1,489 614 523 482 575 403 437 421 402 337 307 1,542 360 25,070* 504** 1,542* 360** * - Total volume, ** Average price Less than one metric ton Source: Ministry of Agriculture, Forestry & Fisheries, Government of Japan, "Suisanbutsu Ryutsu Tokei Nenpo", 1990 4;7 bidding, either through bargaining or at a fixed price, the fresh fish and seafood consigned by producers or purchased on their own account from producers, to middlemen and authorized buyers in wholesale deals. Sales commissions charged for fresh tuna by the auction houses are fixed by law at 5.5 percent. Auction houses in Tokyo importing fish on a consignment basis for auction remit payments to exporters in about one week, minus 5.5 percent commission, import duties, trucking charges, etc. Auction houses do not usually receive frozen fish directly from overseas. However, if an exporter wishes, it may negotiate with auction houses. Because imports of frozen fish involve advance financial commitment by importers, i.e letters of credit, cold storage fees, etc., auction houses normally use import agents to do administrative work for them. The agent's fee is about 2 percent of the invoice (CAF: cost and freight or GIF: cost, insurance and freight) value. CAF or GIF prices are determined by agreement between exporter and importer, generally corresponding with the Japanese market price. Consignment exports of frozen fish for sale by auction is not recommended because payments may not be received for a long period. Additional advice received from the U.S. Embassy in Tokyo is listed below. (A) Ship only high quality tuna: If a company has been selling fresh tuna in the U.S. domestic market, it may be able to sell a selection of top quality tuna at TGWM on consignment basis. It is important that an exporter be able to sell his lower tuna in the United States. Sending tuna of low fat content or dull meat color, which is unacceptable in the highly competitive Japanese market, may result in huge losses to the exporter. (B) Gheck shipping arrangements: Contact local freight forwarders who are well experienced with overseas shipment of fresh seafood. Investigate with them the best packing material and methods for refrigerated shipments in compliance with U.S. and international air cargo regulations. Draw up an airline schedule requiring minimum handling over the shortest shipping time to Tokyo International Airport in Narita. Find out air cargo charges by weight for flights from several different airports. A special lower rate for food is applied to shipment from certain airports. Freight forwarders can assist with all this and also provide support services for preparing export documents, such as commercial invoice, packing list, airway bill, etc. (C) Contact auction houses: If the company feels it can deliver high-quality fresh tuna to Tokyo International Airport shortly after fish are caught, the next step is to get in touch with the Japanese auction houses (Appendix D). 48 U.S. companies can write to auction houses to obtaian contract forms written in English. In the same letter the company should provide information about itself, its fishing grounds, fishing methods and plans for the airline shipping route and approximate total shipping time including layovers at each transfer point, so the auction company will have a better idea of the company's planning and fish quality. The conditions of the contract usually include a 5.5 percent sales commission for the auction company, deductions from gross sales for import duty, trucking charge, miscellaneous expenses, and the terms of payment. The company should also let the auction house know the name and address of its bank and the account number for receiving remittance. A good auction house usually sends information about each tuna sold by price per kg, and makes comments to help improve quality. If there is a communication problem with the auctioneer, the company should consider an agent in Japan who would oversee the customs clearance, trucking, remittance, etc., and provide better communication with the auction house. An agent would charge a commission of 3-6 percent of gross auction sales. (D) Getting started: After a contract is signed with one of the auction houses, the company should plan a shipment schedule with its fishermen including delivery date and approximate quantity. Check with the freight forwarder for cargo booking conditions, and make an advance booking, if necessary. (E) Select high-quality tuna: Select the best-quality tuna from the landings for export. Important check points are 1) freshness, 2) meat with a bright red color, not dull or dark, and 3) high fat content. Meat color and fat content are normally checked with a cut near the tail. Chill the selected high-quality fish well without freezing. Pack ice around the body as well as inside the head and the body cavity after gills and guts are removed. Japanese fishermen do all this on board to assure better quality, in addition to bleeding by cutting the tail and the blood vessels behind the neck and right behind the pectoral fins. (F) Send advance notice of shipment to the auction house: Send preliminary shipping information by fax or telex to the auction house including the flight number and quantity and weight of the tuna that is being sent. After completion of the shipment, obtain a copy of the commercial invoice, packing list and also the airway bill number from the freight forwarder. Give this information to the auction house by fax as soon as possible, so that the auction house can arrange customs clearance, trucking, etc. in Japan. (G) Auction result and money: Auction results are available in about 24 to 3 6 hours, and remittance should reach the company's bank account in a week or two. The auction results are reported to the company by the auction house directly or through its agent. It will include information on price for each fish, market conditions on the day, total tuna quantity sold, weather conditions, etc., and recommendations for improvement. 49 (H) Recommendation for quality improvement: High-quality fish result in good prices. So, if the first shipment brought a disappointing result, the company should be patient and follow recommendations for improvement. If a drastic improvement is necessary, ask the auction company to send a technician for a limited period to teach the staff and fishermen. An improvement in the auction price is a nice reward for these efforts to ensure higher quality. (I) Japanese calendar: The Tokyo Central Wholesale Market closes on Sundays, all national holidays and specific customary holidays such as the first three days in January. Get a Japanese calendar from the auction house. The U.S. company should also pay attention to the arrival schedule of its fish at the Tokyo International Airport. Avoid flights that arrive in Japan on Saturday afternoon or the day before holidays. Remember arrivals from the United States are usually in the afternoon and the auction is held early the next morning. 7. CONCLUSION A huge raw consumption market in Japan offers an opportunity for the U.S. tuna industry to expand its niche in the Japanese market. This market, presently 400,000 tons a year and growing rapidly, is already being supplied by imports totalling about 35 percent of sales. This analysis indicates that not only will this market expand but that the share of the imports will also continue to grow. The trend is alarming to Japanese tuna industry leaders, because this important market, highest in value among all fish species at close to a billion dollars a year, is being increasingly subjected to the influence of foreign imports. Declining catches by Japan's own tuna fleet, as well as many other woes afflicting its industry, along with a sharp upward turn in food preference by consumers buoyed by the nation's increasing affluence and the strengthened yen, are all contributing to sustain this trend for some time in the future. Based on our analysis, five marketing strategies have been proposed: (1) Farming of bluefin tuna; (2) marketing of our own value-added products; (3) selling fresh tuna directly to the Tokyo Central Wholesale Market; (4) selling also to other wholesale markets and (5) direct sales to supermarket chains. 50 REFERENCES Food and Agriculture Organization of the United Nations, 1981-1991 "FAO Yearbook of Fishery Statistics, Catches & Landings Series." Vols. 50-68 Food and Agriculture Organization of the United Nations, 1990. "FAO Yearbook of Fishery Statistics, Commodities." Vol. 67. Japan External Trade Organization, Los Angeles, U.S.A. Japan Marine Products Importers Association, 1981-1991. "Japanese Imports of Marine Products - Calendar Year 1980-1990." Tokyo, Japan. Minato Shinbun (Japanese daily fishery newspaper) , 1990 & 1991, various issues (in Japanese). Ministry of Agriculture, Forestry & Fisheries, Government of Japan, 1982 & 1990. "Gyogyo Yoshoku Nenpo (Annual production of fisheries & culture)," Calendar years 1980 & 1988 (in Japanese) . Ministry of Agriculture, Forestry & Fisheries, Government of Japan, 1988 & 1990. "Suisanbutsu Ryutsu Tokei Nenpo (Annual statistics of fishery products marketing) , " Calendar years 1986 & 1988 (in Japanese) . National Marine Fisheries Service, 1982-1991. Foreign Fishery Information Release, various issues. NOAA, NMFS, SW Regional Office. Nikkan-Shokuryo Shinbun (Japanese daily seafood trading newspapers) , 1991, various issues (in Japanese) . Suisan Keizai Shinbun (Japanese daily fishery newspaper) . 1988- 1991, various issues (in Japanese). Suisan Sha, 1990 & 1991. "Suisan Nenkan (Annual Fishery Statistics") , (in Japanese) . Suisan Tsushin (Japanese daily fisheries press) , 1989-1991, various issues (in Japanese) . Tokyo University of Fisheries, 1989. "Maguro" (Tuna). From Its Production to Consumption. Proceedings of 7th Special Open Lectures at Tokyo University of Fisheries (in Japanese) . U.S. Embassy, Commercial Section, Tokyo, Japan. 51 Appendix A Major Supermaket Chain Stores COMPANY : ADDRESS : PHONE : TELEX: CAPITAL: SALES : EMPLOYEE: NO. OF STORES CHUJITSUYA CO., LTD. 2-1-11, KABUKI-CHO, SHINJUKU-KU, TOKYO 160 03-209-2121 02325021 CHUJIT J ¥2,595 MIL. ($10.8 MIL) ¥218,757 MIL. ($911.5 MIL.) (1983/84) 7,833 71 COMPANY : ADDRESS : PHONE : TELEX: CAPITAL: SALES : EMPLOYEE : NO. OF STORES COMPANY : ADDRESS : PHONE : TELEX: CAPITAL: SALES : EMPLOYEE: NO. OF STORES THE DAIEI, INC. 9-1, TOYOTSU-CHO, SUITA-SHI, OSAKA 564 06-380-3111 05238422 ¥14,215 MIL. ($59.2 MIL.) ¥1,226,624 MIL. ($5,110.9 MIL.) (1983/84) 32,265 166 FREX INC. 185-1, OOKUCHI-CHO, MATSUZAKA-SHI , MIE-KEN 515 0598-51-3125 0598512952 ¥332 MIL. ($1.4 MIL.) ¥16,000 MIL. ($66.7 MIL.) (1983/84) 750 23 COMPANY : ADDRESS : PHONE : TELEX: CAPITAL: SALES : EMPLOYEE : NO. OF STORES ITO-YOKOADO CO., LTD. 4-1-4, SHIBAKOEN, MINATO-KU, TOKYO 105 03-459-2111 23841 ¥12,663 MIL. ($52.8 MIL.) ¥853,793 MIL. ($3,557.5 MIL) 22,825 116 (1983/84) i 52 COMPANY : ADDRESS : PHONE : TELEX: CAPITAL: SALES : EMPLOYEE : NO. OF STORES IZUMIYA CO. , LTD. 1-4-4, HANAZONO-MINAMI , NISHINARI-KU, OSAKA 557 06-657-3310 05267627 ¥3,382 MIL. ($14.1 MIL.) ¥239,053 MIL. ($996.1 MIL.) (1983/84) 7,755 55 COMPANY : ADDRESS : PHONE : TELEX: CAPITAL: SALES : EMPLOYEE : NO. OF STORES JUSCO CO. , LTD. 45, BINGO-MACHI 2-CHOME, HIGASHI-KU, OSAKA 541 06-205-8656 02225528 ¥10,647 MIL. ($44.4 MIL.) ¥695,116 MIL. ($2,896.3 MIL.) (1983/84) 17,256 148 COMPANY : ADDRESS : PHONE : NO. OF STORES NAGASAKI YA CO., LTD. 3-7-14 HIGASHI NIHONBASHI TOKYO 103, JAPAN (03) 662-5511 90 CHUO-KU , COMPANY : ADDRESS : PHONE : NO. OF STORES NICHI-I CO., LTD. 2-14 AWAJI-CHO, HIGASHI-KU, OSAKA 541, JAPAN (06) 203-5071 148 COMPANY : ADDRESS : PHONE : TELEX: CAPITAL: SALES : EMPLOYEE : NO. OF STORES THE SEIYU, LTD. 3-1-1, HIGASHI-IKEBUKURO, TOSHIMA-KU TOKYO 170 03-989-5063 02723113 ¥6,795 MIL. ($28.3 MIL) ¥696,354 MIL. ($2,901.5 MIL.) (1983/84) 18,077 164 53 COMPANY : ADDRESS : PHONE : TELEX: CAPITAL: SALES : EMPLOYEE : NO. OF STORES TOKYO STORE CHAIN CO., LTD. C/0 TOUKOU BLDG., 1-21-12, KAIMEGURO MEGURO-KU, TOKUO 153 03-711-0109 03-791-6521 ¥3,033 MIL. ($12.6 MIL.) ¥184,310 MIL. ($768.0 MIL.) (1983/84) 5,024 76 COMPANY : ADDRESS : PHONE : TELEX: CAPITAL: SALES : EMPLOYEE: NO. OF STORES UNY CO., LTD. 2-45-19, NAEKI, NAKAMURA-KU, NAGOYA-SHI 453 052-562-1411 UNYHONSH J59797 ¥7,190 MIL. ($30.0 MIL.) ¥386,098 MIL. ($1,608.7 MIL.) (1983/84) 12,183 104 COMPANY ADDRESS PHONE : TELEX: YAC'S (CHIBAYAKU GROCERIES, INC.) 2 0-16 TSURUSAWA-CHO, CHIBA-SHI, CHIBA-KEN, JAPAN (0472) 25-3426 3722-390 Source: Japan External Trade Organization, Los Angeles. 54 APPENDIX B PURCHASERS FOR SUPERMARKET CHAIN STORES COMPANY : ADDRESS : PHONE : TELEX: CAPITAL: SALES : EMPLOYEE : MEMBER COMPANIES AIC INC. C/0 KUDAN FUJI BLDG. , 2-4, KANDA JINBO-CHO, CHIYODA-KU, TOKYO 101 03-230-2884 02325034 ¥220 MIL. ($917,000) ¥36,500 MIL. ($152.1 MIL.) (1983/84) 100 JUSCO CO., LTD., UNY CO., LTD. IZUMIYA CO., LTD. CHUJITSUYA CO., LTD. SAFEWAY STORES, INC. COMPANY : ADDRESS: PHONE : TELEX: A.J.D. DEVELOPMENT CO. 1-8 MUROMACHI, NIHOMBASHI , CHUO-KU, TOKYO 103 (03) 241-6334 3722385 (AJDRUG J) COMPANY : ADDRESS PHONE : TELEX: CO-OPTRADE JAPAN LTD. SEIKYO KAIKAN BLDG., 4-1-13 SENDAGAYA, SHIBUYA-KU, TOKYO 151, JAPAN (03) 404-3251 23393 (COOPTR) Source: Japan External Trade Organization, Los Angeles 55 APPENDIX C MAJOR JAPANESE TUNA IMPORTERS COMPANY: Ataka Produce Co., Ltd. ADDRESS: Y-Bldg. , 13-2, Shibaura 3-choine, Minato-ku, Tokyo 108 PHONE: (03) 798-0841 FAX: (03) 798-0845 COMPANY: Bokusui Sangyo Co., Ltd. ADDRESS: 2-2, l-chome Uchisaiwaicho, Chiyoda-ku, Tokyo 100 PHONE: (03) 508-1163 FAX: (03) 504-2637 TELEX: 222-2392 COMPANY: C. Itoh & Co. , Ltd. ADDRESS: 5-1, 2-choine Kitaaoyama, Minato-ku, Tokyo 107 PHONE: (03) 497-6186 TELEX: J 22295, J 22296, J 22297 COMPANY: HoKo Fishing Co., Ltd. ADDRESS: 2-4, l-chome Tsukiji, Chuo-ku, PHONE: (03) 542-5641/4 FAX: (03) 54 5-2167 TELEX: 2522933 Tokyo 104 COMPANY: I toman Produce Co., Ltd. ADDRESS: 5F Sumitomoseimei Aoyama Minamiaoyama, Minato-ku, PHONE: (03) 478-9247 TELEX: J 22568 Bldg. Tokyo , 1-30, 107 3-chome COMPANY: Marubeni Corporation, Tokyo Head Office ADDRESS: 4F Ohtemachi Bldg., 6-1, l-chome Ohtemachi, Chiyoda-ku, Tokyo 100 PHONE: (03) 282-4752 FAX: (03) 282-9654 TELEX: 2224441 COMPANY: Matsuoka Co., Ltd. ADDRESS: 10-12, l-chome Higashiyamatomachi, City, Yamaguchi Pref. 750 PHONE: (0832) 67-5566 FAX: (0832) 67-5286 TELEX: 6823-66 MATSU J Shimonoseki 56 COMPANY: Meiwa Trading Co., Ltd. ADDRESS: 3-1, 3-chome Marunouchi, Chiyoda-ku, Tokyo 100 PHONE: (03) 240-9388/91 FAX: (03) 240-9560 TELEX: J 22336, J 26746, J 25317 COMPANY: Mitsubishi Corporation ADDRESS: 3-1, 3-choine Marunouchi, Chiyoda-ku, Tokyo 100 PHONE: (03) 210-6670 FAX: (03) 210-6726, (03) 213-3529 TELEX: J 22222/5, 222-2071, 6333 COMPANY: Mitsui & Co., Ltd. ADDRESS: 2-1, l-chome Ohtemachi, PHONE: (03) 285-5907 FAX: (03) 285-9802 TELEX: J 22253 Chiyoda-ku, Tokyo 100 COMPANY: Nichirei Corporation ADDRESS: 3-23, 3-chome Misakicho, PHONE: (03) 237-2231 FAX: (03) 237-2277 TELEX: J 22450, J 25340 Chiyoda-ku, Tokyo 101 COMPANY: Nichiro Gyogyo Kaisha, Ltd. ADDRESS: 21-1, l-chome Yurakucho, Chiyoda-ku, PHONE: (03) 240-6353 FAX: (03) 287-2326/8 TELEX: 222-3661 NICHIR J Tokyo 100 COMPANY: Nippon Suisan Kaisha, Ltd. ADDRESS: 6-2, 2-chome Ohtemachi, Chiyoda-ku, Tokyo 100 PHONE: (03) 244-7233, (03) 244-7243/5 FAX: (03) 244-7269 TELEX: NISSUI J 32221 COMPANY : ADDRESS PHONE : FAX: TELEX: Nissho Iwai Corporation Nissho-Iwai Bldg. , 4-5, 2-chome, Akasaka, 3579, 3763, 3525 Minato-ku, Tokyo 107 (03) 588-3568, 3574, (03) 588-3777, 4812 J 22233 COMPANY: Nozaki & Co., Ltd. ADDRESS: 16-19, 7-chome Ginza, PHONE: (03) 542-9220 FAX: (03) 545-2006 TELEX: J 22375 Chuo-ku, Tokyo 104 57 COMPANY: Taito Seiko Co., Ltd. ADDRESS: Imaasa Bldg. , 1-21, 1-chome Higashishinbashi, Minato-ku, Tokyo 105 PHONE: (03) 572-3235 FAX: (03) 571-7881 TELEX: J 25306 COMPANY: Taiyo Fishery Co., Ltd. ADDRESS: 1-2, l-chome Ohtemachi, Chiyoda-ku, Tokyo 100 PHONE: (03) 216-0811 TELEX: J 22278 OCEANFIS Overseas Trade Department FAX: (03) 287-0660 PHONE: (03) 284-0153, 0157 International Trade Department No. 1 FAX: (03) 201-6251 PHONE: (03) 284-0473 PHONE : Overseas Fisheries Operations Department (03) 287-0561/2, 216-0946 COMPANY: Takaei Trading Co., Ltd. ADDRESS: 22-4, 6-chome Tsukiji, Chuo-ku, Tokyo 104 PHONE: (03) 542-4791 FAX: (03) 542-4794 - ,- ; , TELEX: 2 52 373 6 TAKAEI J \> " .v COMPANY: Toei Reefer Line, Ltd. ADDRESS: 5F, Kokusai Hamamatsucho Kaigan, Minato-ku, Tokyo PHONE: (03) 438-3203 FAX: (03) 437-6176 TELEX: J 27 529 FISHERY Bldg. 105 9-18, 1-chome COMPANY: Tokusui Co., Ltd. Tokyo Office ADDRESS: 4F Tokyo Suisan Kaikan Bldg., 5-9 ku, Tokyo 105 PHONE: (03) 533-5131 FAX: (03) 533-5173 TELEX: 2522697 Toyomicho, Chuo- COMPANY: Tokyo Commercial Co., Ltd. ADDRESS: Playguide Bldg, 6-4, 2-chome 104 PHONE: (03) 534-1301/8 FAX: (03) 531-6045 TELEX: 0252-2432 Ginza, Chuo-ku, Tokyo 58 COMPANY: Tokyo Seafoods Ltd. ADDRESS: 14-4, l-chome Kyobashi, Chuo-ku, Tokyo 104 PHONE: (03) 561-4571 FAX: (03) 561-4575 TELEX: 2522527 COMPANY: Toshoku Ltd. ADDRESS: 2-4, Nihonbashi Muromachik, PHONE: (03) 245-2178, 2185 FAX: (03) 245-2215 TELEX: J 22352 Chuo-ku, Tokyo 103 COMPANY: Toshoku Seafoods Ltd. ADDRESS: Sumitomo Tsukiji Bldg. , Tokyo 104 PHONE: (03) 541-1173 FAX: (03) 545-2203 TELEX: J 22352 4-14, 5-chome, Tsukiji, COMPANY: Toyota Tsusho Kaisha, Ltd. ADDRESS: 3-18, 2-chome Kudanminami, Chuo-ku, PHONE: (03) 230-8390, 8081/3, 8087 FAX: (03) 230-8055, 8042 TELEX: J 22827 Tokyo 102 COMPANY: Wako Marine, Inc. ADDRESS: 5-13, 3-chome Tsukiji, PHONE: (03) 543-0501 FAX: (03) 543-0867 TELEX: 2522713 WAKOMA J Chuo-ku, Tokyo 104 Source: Japan Marine Products Importes Association, Tokyo, Japan. 59 APPENDIX D BROKERAGE COMPANIES AT THE TOKYO CENTRAL WHOLESALE MARKET COMPANY : ADDRESS : CONTACT : PHONE : FAX: TELEX: SALES : NET PROFIT; TOHTO SUISAM TOKYO CENTRAL WHOLESALE MARKET 2-1, 5-CHOME, TSUKIJI- CHUO-KU, TOKYO 104, JAPAN SHOICHI KOBAYASHI, Manager 03-3541-1803 03-3541-5647 2522757 1,487 million dollars (April 1989-March 1990) 3.8 million dollars (April 1989-March 1990) COMPANY : ADDRESS: CONTACT : PHONE : FAX: TELEX: SALES : NET PROFIT; DAIICHI SUISAN TOKYO CENTRAL WHOLESALE MARKET 2-1, 5-CHOME, TSUKIJI- CHUO-KU, TOKYO 104, JAPAN KIYOSHI HAMAMORI, Manager 03-3541-2561 03-3545-5612 05222871 448 million dollars (April 1989-March 1990) 0.35 million dollars (April 1989-March 1990) COMPANY : ADDRESS : CONTACT : PHONE : FAX: TELEX: SALES : NET PROFIT; CHUO GYORUI TOKYO CENTRAL WHOLESALE MARKET 2-1, 5-CHOME, TSUKIJI- CHUO-KU, TOKYO 104, JAPAN JUNZO ITO, Manager 03-3541-2561 03-3545-5612 05222871 1,650 million dollars (April 1989-March 1990) 6.82 million dollars (April 1989-March 1990) COMPANY : ADDRESS : CONTACT : PHONE : FAX: TELEX: SALES : NET PROFIT; DAITO GYORUI TOKYO CENTRAL WHOLESALE MARKET 2-1, 5-CHOME, TSUKIJI- CHUO-KU, TOKYO 104, JAPAN KO ISHIDA, Manager 03-5565-8151 03-3543-9758 2522248 1,559 million dollars (April 1989-March 1990) 0.87 million dollars 60 COMPANY : ADDRESS : CONTACT : PHONE : FAX: TELEX: SALES : NET PROFIT; TSUKIJI UOICHIBA TOKYO CENTRAL WHOLESALE MARKET 2-1, 5-CHOME, TSUKIJI- CHUO-KU, TOKYO 104, JAPAN DENJI AOCHI, Manager 03-3541-6130 03-3543-4960 25222061 1,100 million dollars (April 1989-March 1990) 5.56 million dollars (April 1989-March 1990) Sources: U.S. Embassy, Commercial Section, Tokyo, Japan. Suisan Keizai Shinbun, 1990. 61 •tfU.S. GOVERNMENT PRINTING OFFICE: 1992 - 679-900/50019 "^TlflMlf.y.^.'y.f^SITY LIBRARIES