Imported Tuna and Impact to Hawaii Fish Market

Minling Pan, Ph.D.Minling Pan, Ph.D.

Timothy MingTimothy Ming

Pacific Islands Fisheries Science CenterPacific Islands Fisheries Science Center

September 29, 2004September 29, 2004

Research Background

Imported tuna has increased recently and Imported tuna has increased recently and competes with local fishing industry (based competes with local fishing industry (based on industrial observations) on industrial observations)

……First look at foreign trade to HonoluluFirst look at foreign trade to Honolulu

Types of Imported Tunas to Honolulu(1989-2003 Average)

FRESH57%

ATC - IN/NOT IN OIL23%

FROZEN20% • Data Sources: U.S Customs

• Direct imports from foreign countries • 57% of imported tunas were fresh

Fresh Imported Tunas to Honolulu (1989-2003)

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Po

un

ds

1989 1991 1993 1995 1997 1999 2001 2003

NSPF

Bluefin

Albacore

Skipjack

Bigeye &yellowfin

• Among fresh imported tunas, mainly yellowfin & bigeye • Declined since 1993 (except 2001 & 2002 went up)

Hawaii Tuna Landings (1989-2003)

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1,0

00

po

un

ds

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

Skipjack

Blufin

Albacore

Yellowfin

Bigeye

Frozen Imported Tuna to Honolulu (1989-2003)

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000P

ou

nd

s

1989 1991 1993 1995 1997 1999 2001 2003

Bluefin

Albacore

NSFP

Skipjack

yellowfin &bigeye

• Among frozen tunas, only small % of yellowfin/bigeye, mainly skipjack

• Imports declined since 1990, only one high year (2001) for yellowfin & bigeye

What was causing the increase of imported tunas in local markets?

Frozen yellowfin used for “Frozen yellowfin used for “pokepoke” and “” and “sashimisashimi” ” cube (cube (pokepoke)) steak or fillet (steak or fillet (sashimisashimi))

Foreign owned ocean containers ships do not stop Foreign owned ocean containers ships do not stop in Honolulu (Johnson Act)in Honolulu (Johnson Act)

Imported tunas transshipped to Honolulu from Los Imported tunas transshipped to Honolulu from Los Angeles, and San Francisco through Matson or Angeles, and San Francisco through Matson or Sealand container shipsSealand container ships

Frozen Yellowfin/Bigeye Imports to LA (1989-2003)

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Po

un

ds

1989 1991 1993 1995 1997 1999 2001 2003

Bigeye

Yellowfin

• Imported frozen yellowfin/bigeye increased to LA• Up from nearly 0 to 3 million lbs

Frozen Yellowfin/Bigeye to SFS

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

1989 1991 1993 1995 1997 1999 2001 2003

Bigeye

Yellowfin

Increase from 0 to half million pounds within 5 years

Frozen Yellowfin Treated by Tasteless Smoke (TS)

The basic ingredient of TS is carbon monoxide (CO)The basic ingredient of TS is carbon monoxide (CO)

$0.20/lb for TS treatment$0.20/lb for TS treatment Frozen cube/Frozen cube/sashimisashimi steak steak

Price on Hawaii wholesale marketPrice on Hawaii wholesale market

$3.50/lb for cube$3.50/lb for cube

$7.00/lb for $7.00/lb for sashimi sashimi steaksteak

CO/TS Product History Japan producers began using CO to treat tuna 15 years ago Japan producers began using CO to treat tuna 15 years ago U.S. received first shipment of CO treated tuna in early 90sU.S. received first shipment of CO treated tuna in early 90s 1996 a patent of using CO technique was granted in US 1996 a patent of using CO technique was granted in US

filtered-wood-smokefiltered-wood-smoke 1999 a patent for tasteless smoke (TS) claimed by Hawaii 1999 a patent for tasteless smoke (TS) claimed by Hawaii

International Seafood Inc. was grantedInternational Seafood Inc. was granted burning an organic, food grade smoking materialburning an organic, food grade smoking material smoking in low smoking in low °C °C frozen tuna can stored for one yearfrozen tuna can stored for one year

2000 USFDA approved TS as “generally regarded as safe”2000 USFDA approved TS as “generally regarded as safe” Tasteless smoke (preservative to promote color retention)Tasteless smoke (preservative to promote color retention) Treated with carbon monoxide (preservative to promote Treated with carbon monoxide (preservative to promote

color retention)color retention)

Recent Development of CO Treated Seafood 1999 Japan banned the use of CO to treat 1999 Japan banned the use of CO to treat

tuna but allowed it for other seafoodtuna but allowed it for other seafood Canada and European countries also banned Canada and European countries also banned

CO treated seafoodCO treated seafood About 20-30 containers (40’) of TS treated About 20-30 containers (40’) of TS treated

frozen tuna imported into the US monthly frozen tuna imported into the US monthly (IntraFish Industry Report, 2003)(IntraFish Industry Report, 2003) 7 – 10 million lbs a year to U.S.7 – 10 million lbs a year to U.S.

Impact to Local Markets Data problem--no official statistics on total Data problem--no official statistics on total

importsimports TransshipmentsTransshipments Harmonized SystemHarmonized System ( (HS) code: no clear HS) code: no clear

code for TS treated tunacode for TS treated tuna Consumer ignorance on the TS/CO treated Consumer ignorance on the TS/CO treated

productsproducts

A PILOT STUDY ON A PILOT STUDY ON CONSUMER KNOWLEDGECONSUMER KNOWLEDGE FOR FOR

AHIAHI POKEPOKE

BACKGROUNDBACKGROUNDAssumptionsAssumptions

1.1. Local consumers of Local consumers of ahi pokeahi poke exhibit an exhibit an ignorance towards the Tasteless Smoke ignorance towards the Tasteless Smoke product product

– Purchasing TS products without knowing Purchasing TS products without knowing what it is (ambiguous labeling; what it is (ambiguous labeling; traditionally, local supply dominates)traditionally, local supply dominates)

– The active ingredients as well as the The active ingredients as well as the effects of Tasteless Smoke are unknown to effects of Tasteless Smoke are unknown to local consumerslocal consumers

2.2. Local consumers value the quality of fresh Local consumers value the quality of fresh local local ahiahi over previously frozen Tasteless over previously frozen Tasteless Smoke treated Smoke treated ahiahi and are willing to pay a and are willing to pay a higher price for the local freshhigher price for the local fresh

A PILOT STUDYA PILOT STUDY

Purpose of this pilot studyPurpose of this pilot study To test the assumptions (if further study is To test the assumptions (if further study is needed)needed) To field-test the questionnairesTo field-test the questionnaires

Method of pilot studyMethod of pilot study Survey Survey Convenience Sampling Convenience Sampling Sample size of 62 (31 respondents from Sample size of 62 (31 respondents from

National Marine Fisheries Services National Marine Fisheries Services affiliated and 31 respondents non-NMFS affiliated and 31 respondents non-NMFS affiliated)affiliated)

Retail Market ReportRetail Market Report“How common TS is in our markets”“How common TS is in our markets”

FISH RETAIL (SUPERMARKET) Local Fresh Previous Frozen TS treatedFOODLAND - Kapiolani St. 8.99$ 6.99$ YesSTAR - King St. NONE 7.99$ YesTIMES - King St. NONE 5.99$ YesSAFEWAY - Beretania St. $ 9.99/12.99 $ 6.99/5.99 YesCOSTCO 7.99$ NONE NoDAIEI 6.99$ 4.77$ YesFOODLAND - BERETANIA NONE 6.99$ YesTAMASHIRO'S MARKET - N. KING$ 8.95 - 10.95 $ 4.98 - 5.95 YesMARUKAI - WARD 8.99$ 6.59$ YesTANIOKA'S - WAIPAHU $ 7.95 - 8.95 NONE No

Table based on visitations on June 22, 2004

Popularity of TS Popularity of TS treated treated Ahi PokeAhi Poke in in Local MarketsLocal Markets Two dollars difference between TS/CO treated Two dollars difference between TS/CO treated

and local fresh and local fresh Ahi PokeAhi Poke Holiday price is even lower: Holiday price is even lower: Ahi Poke Ahi Poke $4.99/lb$4.99/lb

Long shelf life of TS/CO treated Long shelf life of TS/CO treated Ahi Poke Ahi Poke Constant & adjustable supplyConstant & adjustable supply ““Freshly made”Freshly made”

Consumer may not be aware of the differences Consumer may not be aware of the differences in the two productsin the two products

PRELIMINARY RESULTS OF PRELIMINARY RESULTS OF SURVEYSURVEY

Price is an indicator of the presence of Price is an indicator of the presence of consumption for Tasteless Smoke consumption for Tasteless Smoke Ahi PokeAhi Poke

PricePriceFrequenFrequen

cycy

$4.00-$6.99$4.00-$6.99 2828

$7.00-$10.99$7.00-$10.99 2626

VariesVaries 22

NoneNone 66

TotalTotal 6262

How Much Do You Pay For Your Ahi Poke?

28

26

2

6

0 5 10 15 20 25 30

$4.00-$6.99

$7.00-$10.99

Varies

None

Price (Per Pound)

Number of Respondents

PRELIMINARY RESULTS OF PRELIMINARY RESULTS OF SURVEYSURVEY

About 77% consumers claim that they have not About 77% consumers claim that they have not purchased Tasteless Smoke treated products beforepurchased Tasteless Smoke treated products before

14

47

10

10

20

30

40

50

N umber of

Respondents

Yes No No response

H ave You E ver Purchase T S A hi Poke B efore?

PRELIMINARY RESULTS PRELIMINARY RESULTS OF SURVEYOF SURVEY

The choice of color in The choice of color in Ahi PokeAhi Poke is a is a determinant of consumer ignorance for determinant of consumer ignorance for

Tasteless Smoke productTasteless Smoke product

Color PreferenceColor PreferenceFrequencFrequenc

yy

Watermelon redWatermelon red 1919

Different shades of redDifferent shades of red 2424

BrownBrown 00

BlackBlack 00

NoneNone 2020

TotalTotal 6363

What Kind Of Color Do You Look For In

Determining Ahi Meat Quality

1924

0 00

5

10

15

20

25

30

Watermelon red Different shadesof red

Brown Black

Nu

mb

er

of

Resp

on

den

ts

PRELIMINARY RESULTS PRELIMINARY RESULTS OF SURVEYOF SURVEY

Most respondents did not realize that carbon Most respondents did not realize that carbon monoxide is an active ingredient of monoxide is an active ingredient of Tasteless SmokeTasteless Smoke

Knowledge ofTS having Knowledge ofTS having CO?CO?

FrequencFrequencyy

YesYes 1515

NoNo 4747

TotalTotal 6262

Do You Know That the Active Ingredient in TS is CO?

15

47

0 10 20 30 40 50

Yes

No

Number of Respondents

PRELIMINARY RESULTS PRELIMINARY RESULTS OF SURVEYOF SURVEY

Knowledge of CO on muscles?Knowledge of CO on muscles?FrequenFrequen

cycy

YesYes 1313

NoNo 4949

TotalTotal 6262

Most respondents did not know that carbon Most respondents did not know that carbon monoxide intensifies the red color of monoxide intensifies the red color of Ahi Ahi meatmeat

Do You Know How CO Affects Muscle Protein?

13

49

0 10 20 30 40 50 60

Yes

No

Number of Respondents

CONCLUSIONSCONCLUSIONS

Further study is needed to determine Further study is needed to determine the consumer knowledge and the consumer knowledge and preferences for TS versus fresh tunaspreferences for TS versus fresh tunas

Improve questionnaire designProper samplingConjoint analysis

Determining the value people would pay for local fresh or TS/CO treated (previously frozen) Ahi Poke

Monitoring Transshipments