Japanese market for Tuna products Tuna 2010 Bangkok September 14, 2010 Kazuo SHIMA, President, Beneficiaries of the Sea Coalition, Japan Taro KAWAMOTO, Kyokuyo Suisan Co., ltd Preface This paper attempts to show a general picture of Japanese Tuna Market and its variety of products, 1) Feature of Japanese Tuna market in the world, 2) Tuna trade flow in Japan, 3) Capture production of Japanese fleet, 4) Three major tuna products in Japan, and 5) Trend of Consumption of seafood and meat. In addition, I would like to examine a current market trend as well as a future prospect of Japanese tuna market from a point of view of Japanese tuna industries in which authors have been involved. 1. Features of Japanese Tuna market I would like to point out two features of Japanese tuna market in the world at first. The first feature is its tuna market scale in the world by estimated consumption. Sashimi

Global Tuna consumption (Estimate)

Can

4,270 thousand MT in 2005

Katsuobushi

Russia 22 (1%)

N. America 700 (16%)

EU 1,291 (30%)

Spain

Japan941 (24%)

Middle East 261 (6%) BKK

Africa 54 (1%) Seychelles

Philippines

Ecuador Colombia

Asia21 (1%)

Oceania 69 (2%)

M/S America 238 (6%)

Major Cannery Source：Fishstat plus Commodities production and trade 1976-2005、Annual statistics of fishery products in Japan Round based volume estimated by Can=0.63, Katsuobushi=0.2, Sashimi=0.8

Fig. 1 : Global Tuna Consumption (Estimate)

Fig. 1 shows a estimated global tuna consumption in 2005 by using FAO statistics. The global size of tuna market in 2005 is estimated 4.3 million tons in terms of round fish basis. EU consumed about 1.3 million tons of tuna, and Japan consumed about 941 thousand tons of tuna. Japan still has maintained the biggest consumption in the world in terms of single country. The main reason Japan has still maintained such position is that it has “Sashimi” market. 1

In general, prices of Sashimi products are higher than Canned tuna products which are main products in the world. Further if we estimate market scale in value, Japanese share will be much higher. The second feature of JP tuna market is diversity of tuna products. Fig. 2 shows an example of unique and variety of Japanese tuna products. Canned Tuna

Katsuobushi

Namari-bushi

Hongare-bushi

Siokara

kakuni

Soup Broth

Sashimi

Sushi

Local products

Tataki

Negitoro

Dry powder

Liquid type

Fig. 2 Unique and Variety of Japanese Tuna products

Japanese tuna market has been composed of three major tuna products by canned tuna, Katsuobushi, and Sashimi. Beside these three major products, we Japanese people have developed varieties of local tuna products. For example, “Shiokara” which is made from a salted SK intestine and “Kakuni” this is a cooked YF or SK seasoned by sugar and soy sauce. (The third box in the upper raw in fig.2) Both products are popular side dish for typical Japanese family dinner, since it match cooked rice as well as Japanese SAKE. And two types of soup broth made of SK tuna are distributed in Japanese market, powder type and liquid type. (The second box in the lower raw in fig.2) Those kind of products are more popular now than traditional chunk of Katsuobushi, because it is very convenient to fix soup broth. 2. Tuna Trade Flow in Japan Fig. 2 shows tuna trade flow in Japan in 2007 by using the statistics data such as trade statistics, fisheries statistics and distribution statistics. All data are converted to round fish basis by using converted factors of each products. (i.e. Canned tuna=0.63, Katsuobushi=0.2) It shows the left to right, Capture production part, Import and export part and Final products part.

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Import 272 (34%)

Tuna PS 202 (34%) LL 157 (27%) PL 135 (23%) Others 91 (15%) Firmed 4 (1%)

Import 65 (8%) Can 80 (10%)

Supply 792 (100%)

Capture Production 589 (74%)

Sashimi etc 527 (67%) Katsuobushi 185 (23%) Import 14 (2%)

Export 69 (8%)

Unit : x1000MT , Source ： Japan trade statistics: Ministry of Finance, Japan, Japan canned tuna export fisheries association, Annual fisheries statistics, Distribution statistics :Ministry of Agriculture, Forestry and Fisheries, Japan

Fig.3 : Tuna Trade Flow in Japan (2007)

In the part of capture production, it includes three primal tuna fishing activities of Purse Seine fishery(PS), Long line fishery(LL) and Pole and line fishery(PL). Others category include local fishing activities such as trolling, set net and farmed category include tuna farming production. In 2007, PS accounts for 34%, LL account for 27% and PL accounts for 23% of total tuna catch. Both PL and LL mainly produce sashimi grade tuna. PS mainly supply raw material of processed food for canned tuna as well as Katsuobuhi. Total capture production reaching 589,000 MT, and approximately 272,000 MT of tuna were imported filling up gaps between local catch and whole demands. At the same time, about 69,000MT of tuna mainly SK were exported to overseas such as Bangkok Tuna market. Consequently, 792,000MT of tuna was supplied to JP market, these fish were processed on land and distributed as canned tuna, Sashimi tuna and Katuobushi. Sashimi tuna shared 67%, and Katuobushi shared 23% and canned tuna was 18% of total tuna supply. At the same time, some final products are also imported in the form of canned tuna and Katsuobushi. These two takes about 10% of whole JP tuna consumption. Table1 shows supply and consumption of tuna by spices in round fish in 2007.

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Table 1: Supply and consumption by tuna species in 2007

2007

Catch

Farmed

Import

Export

Supply

(a)

(b)

(c)

(d)

(a+b+c-d)

unit: x1000MT Consumption Can

Katsuobushi

Sashimi

BF

18

4

44

0

66

0

ALB

78

0

6

32

52

5 Mostly sashimi 0

BE

78

0

101

3

176

2

0

174

YF

81

0

76

7

150

51

0

99

SK

330

0

15

26

319

22

185

112

0

31

1

30

0

0

30

4

273

69

793

80

185

527

OT Total

585

0

66 47

Source ： Annual Fisheries statistics, Ministry of Agriculture, Forestry and Fisheries, Japan trade statistics: Ministry of Finance, Japan Government of Japan

In 2007, 527,000 MT of tuna consumed in Japan for Sashimi, 185,000 MT for Katsuobushi, 80,000 MT for canned tuna. Bluefin include Southern Bluefin (BF), Albacore(ALB) and Bigeye (BE) are mostly consumed in the form of Sashimi, and the majority of Skipjack(SK) and Yellowfin(YF) are consumed in the form of canned tuna and Katuobushi. 3. Capture Production of Japanese Fleets Fig. 4 shows a general trend of capture production by five(5) primal tuna species in volume. In general, total capture production has been decreased since 1980s. Japanese Capture Produiotn (x1000 MT) 900 800 Decrease

700 600 500 400 300 200 100

SK YF BF

ALB BE

19 80 19 82 19 84 19 86 19 88 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06

0

Source: Annual Fisheries statistics, Ministry of Agriculture, Forestry and Fisheries Government of Japan

Fig.4 : Capture Production by species (Volume)

Fig. 5 shows the said capture production in value. It is obvious downward trend as same as volume, especially BF and BE tuna shows steep decline since 1980s which are mainly consumed as sashimi.

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Japanese Capture Production (Billion Yen) 500 450 400 350 300 250 200 150 100 50 0

SK YF BF

ALB BE

19 80 19 82 19 84 19 86 19 88 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06

Decrease

Source: Annual Fisheries statistics, Ministry of Agriculture, Forestry and Fisheries Government of Japan

Fig. 5 : Capture Production by species (Value)

Fig. 6 (four(4) graphs) show of the primal five(5) tuna species trends of the average price by using the price that total fish sales divided by total fish volume. SK price (Japanese Yen / kg)

BF price (Japanese Yen / kg) 4,500 4,242 4,000 BF 3,500 3,000 2,500 1,947 1,645 2,000 1,500 (2005) 1,532 1,000

400 350

SK

300 250 312

226

200 150

19 8 19 0 8 19 2 8 19 4 19 86 8 19 8 9 19 0 19 92 9 19 4 19 96 9 20 8 20 00 0 20 2 0 20 4 06

19 19 80 19 82 19 84 19 86 19 88 19 90 19 92 19 94 19 96 20 98 20 00 20 02 20 04 06

(2000) 147

100

BE price (Japanese Yen / kg)

YF & ALB price (Japanese Yen / kg)

1,500

656

ALB YF 504

700 600 500 400 443 300

1,000

1,084

750 272

872 (2002) 736

500

19 8 19 0 1982 8 19 4 8 19 6 1988 9 19 0 9 19 2 1994 9 19 6 98 20 2000 0 20 2 0 20 4 06

200

BE

1,250

(2001)389 (2002) 266

1,346

19 1980 1982 1984 1986 1988 1990 1992 1994 1996 2098 2000 2002 2004 06

800

Fig. 6 Average Price trend by species

The upper left of Fig. 6 illustrates on average price trend of SK, the lower left is YF and ALB, the upper right is BF, and the lower right is BE. SK, YF and ALB are mainly used for canned tuna and Katsuobushi show the secondary curves with the bottom in early 2000s. However, BF and BE mainly consumed as Sashimi tuna show 3rd curves with peak in 1990s and bottom in early 2000s. All species tend to increase the price after 2000s.

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Fig.7 shows a trend of capture production by three(3) fundamental gear types of tuna fishery, Purse Seine fishing (PS), Long line fishing(LL) and Pole and line fishing (PL). x1000MT

Capture production by gear types (Japan)

250 200 PS PS(NC)

150

LL PL

100

07

06

20

05

20

04

20

03

20

02

20

01

20

00

20

99

20

98

19

19

19

97

50

Data includs SK, YF, BE, BF, ALB only

Source: Annual Fisheries statistics, Ministry of Agriculture, Forestry and Fisheries, Government of Japan

Fig. 7 : Capture production by gear types

Tuna production by PL and LL tend to decline. One of main reasons of such decline is reduction of fishing vessels. Because many fishing firms have been suffered from financial difficulties caused by low price of tuna and high fuel oil price in recent years. On the contrary, PS has gradually increased their catch despite they have maintain the same level of vessels. It is observed several kinds of technological developments in the field of fishing instruments and machineries 4. Three Major Tuna products In this section, I would like to overview three major tuna products in the Japanese Tuna market. (1) Canned Tuna x 1000MT

Trend of Can Tuna Production

Can Tuna (2007) ALB 6%

140 120 100

BE 2%

80

SK 27%

80 60

65

40 20

(Round fish base)

Can(Domestic) Can(Import)

YF 65%

19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07

0

Source ： Annual Fisheries statistics, Ministry of Agriculture, Forestry and Fisheries, Japan trade statistics: Ministry of Finance, Japan Government of Japan

Fig.8 : Trend of Canned tuna production and import

Fig. 8 shows of local production as well as import canned tuna in volume. It is clear that Japanese domestic canned tuna production has been decreased but that’s imports has been 6

increased. It is assumed Japanese domestic canned tuna industry has shrunk due to high labor cost, and canned tuna imports fills up the gaps. As a result, Japanese canned tuna market has been undergone more less steady. Pie chart right shows tuna spices used raw material of canned tuna as follows 65% YF, 27% SK, 6%ALB. (2) Katsuobushi x 1000MT

Trend of Katsuobushi Production Katsuobushi (2007)

250 185

200 150

Katsuobushi(Domestic) Katsuobushi(Import)

100 (Round fish base)

50

SK 100%

14

07

06

20

05

20

04

20

03

20

02

20

01

20

00

20

99

20

98

19

97

19

96

19

19

19

95

0

Source ： Annual Fisheries statistics, Ministry of Agriculture, Forestry and Fisheries, Japan trade statistics: Ministry of Finance, Japan Government of Japan

Fig.9 : Trend of Katsuobushi production and import

Fig. 9 shows a trend of Katsuobushi production and its import. There is no big change observed on domestic production, but import of Katsuobushi increased from 1995 to 2006, but it dropped in 2007. In terms of tuna species, only SK tuna can be used for raw material of Katsuobushi. (3) Sashimi Tuna x 1000MT

Sashimi Tuna (2007)

Trend of Sashimi Production (estimate)

500

300 166

200 100

OT 6%

361

400

(Round fish base)

Sashimi(Domestic) Sashimi(Import)

SK 21% YF 19%

ALB 9%

BE 32%

19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07

0

BF 13%

Source ： Annual Fisheries statistics, Ministry of Agriculture, Forestry and Fisheries, Japan trade statistics: Ministry of Finance, Japan Government of Japan

Fig. 10 : Trend of Sashimi tuna production and import

Fig. 10 shows trend of Sashimi tuna production and its import. Sashimi tuna imports tend to decrease since 2002 but local production was stable. The pie chart right, made it clear of the share of all 5 primal tuna species in Sashimi tuna market. BE takes the biggest share as 32%, and YF19%, SK 21% and BF13% respectively 7

of total Sashimi tuna production. (4) Retail price range of Tuna products Average Retail price (2004-2008)

409

400

413 367

391 333

300

258 214 176

197

168

152

132 hi

i)

us

an

ob ts u Ka

BE (a

SK (T at

ak

SK

B AL

i)

YF

100 ka m

161

146

Tu na

200

C

JP yen/100g

500

Source: Table 1. Monthly Prices and Annual Average Prices by Item, Ministry of internal affair and communication, government of Japan

Fig. 11 : Retail price range of Tuna products

The bar chart in Fig. 11 shows the average range of retail price by tuna products by the Annual retail price research conducted by JP government. All data are converted to retail price per 100g. By this chart, you can get a general picture of JP tuna products on price range. BE and YF Sashimi tuna are comparative on high, ALB Sashimi has wider price range, SK Tataki price is lower than SK Sashimi. And also price of Katsuobushi as well as canned tuna products is lower than Sashimi products. Retail price range of Sashimi Tuna (Internet research) 10,000

10000

6,000

4980 4,000 2000 415

1400 433

380

135

BF

ka m i) BF (a

o) BE (T or

or o) BF (T

(P re m iu m

Fr e

sh )

0

196 m ea t

2,000

un d

4,000

G ro

JP yen/100g

8,000

Source: Internet research on August 2010

Fig. 12 : Retail price range of Sashimi Tuna products

The bar chart in Fig.12 shows examples of recent retail price on higher value Sashimi products. All data are collected by internet research on August 2010. It shows variety of Sashimi tuna products exist, but we classified those by tuna species as well as fat content.

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BF(Toro)

BF(Akami)

Ground meat

Fig. 13 : Sashimi tuna products

In Japan, we call fatty tuna meat as “Toro” , low fat meat as “Akami” and ground tuna meat is used for a raw material of Sushi.(Fig. 13) Probably the most expensive Sashimi tuna is the Hand line catch harvested around northern part of Japanese coastal water. This kinds of products is very limited and distributed as a premium grades tuna, and its price ranges are around 4,000 to 10,000 yen per 100g. The second highest Sashimi tuna may be the fatty tuna meat of LL catch, according to the current internet research, it ranges 415 to 4980 yen per 100g. The third and fourth Sashimi would be BE(Toro) and BF(Akami) but, these order totally might depend on difference of tuna auction time. 5. Trend of Consumption of seafood and meat In this chapter, I would like to overview a trend of consumption of Seafood and Meat in Japan. Household Annual expenditures (per person)

JP Yen/year

90,000 84,577 80,000 70,272 70,000

Seafoods Meats

60,000

61,828 58,682

50,000 2002 2003 2004 2005 2006 2007 2008 2009 Source: Composite expenditure Total households, Table 1 Expenditures of Commodities per Household by City Group and District, http://www.e-stat.go.jp

Fig. 14: Seafoods v.s. Meats

The above line graph in Fig.14 shows a trend of household annual expense per person seafood vs meat in Japan. seafood expenditures per person was 84,577 yen in 2002, and it declined to 70,272 yen in 2009. On the other hand meat expenditures per person was 58,682 yen in 2002, and it increased to 61,828 yen in 2009. Meat expenditures have filled up such seafood decline during the time

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JP Yen/year

Household Annual expenditures (per person)

10,000

1,000 921

9,000 8,000

900

843

800

8,344

7,000

700 Tuna sashimi Katsuobushi

6,000

600 5,939

5,000

500 2002 2003 2004 2005 2006 2007 2008 2009

Source: Composite expenditure Total households, Table 1 Expenditures of Commodities per Household by City Group and District, http://www.e-stat.go.jp

Fig. 15 : Change of expenditure for tuna products

The above graph in Fig. 15 shows a trend of annual household expenditures for tuna products. Sashimi products shows steep decline since 2002 but Katsuobushi shows a recovery trend a little after 2006. JP Yen/year

JP Yen/year

Household expenditures (Seafoods) By age group 40,000

10,000 A B

9,000

Household expenditures (Katsuobushi) By age group

1,000 800

7,979

Ave.

600

8,000

A

30,000 7,000

B

400

C

23,203

6,000

200 20,000

08

07

06

05

04

03

09 20

20

20

20

20

20

02 20

Younger generation start eating more seafood

20

09

0

20

07

06

08 20

20

20

04

03

05 20

20

20

20

02

5,000

Elder generation eating more Katsuobushi

Source: Composite expenditure Total households, Table 3 Expenditures of Commodities per Household by Sex and Age Group, http://www.e-stat.go.jp

Age group A: 34 years old or less Age group B: 35-59 years old Age group C: 60 years old or more

Fig. 16 : Consumption by age group

These graphs in Fig. 16 shows a trend of tuna consumption by age groups. Age group A is younger generation group not older than 35 years old, group B is middle age group ranged 35-59 years old, and group C is elder generation group older than 60 years old. The left graph in Fig 16 shows that younger generation starts eating more seafood since 2005, despite elder generation shows stable or decline. The right graph which illustrates household expenditure of Katsuobushi by three age groups shows upward trend on elder generation since 2004. These observation might suggest a sign of JP market recovery. 10

6. Future prospect of Japanese Tuna market Concluding my paper, I would like to observe a future prospect of Japanese market.

Meat & Bread

Fish & Rice Fig. 17 : Change in eating habit of Japan

Change in eating habit of Japan which is from fish to meats and rice to breads will be falling and I wish it will be cycling to Japanese traditional eating style. As Japanese peoples is now oriented to localization of foods with considering health, freshness, food security and variety of local food. In 2010, we still have many difficulties to recover JP economy, however we have still maintained the biggest tuna market in the world, at the same time, some statistic data shows some recovery sign of tuna products consumption. Healthy JP foods are now being re-recognized in Japan, and shrinking JP tuna market will be stopped in very near future. It goes without saying that we have a responsibility to attain sustainable use of tuna resources. Japan also should play a important role particularly market side initiative to attain the said objective and succeed our important tuna resources to the next generation. Reference z Annual Fisheries statistics, Ministry of Agriculture, Forestry and Fisheries Government of Japan z Annual statistics of fishery products in Japan, Ministry of Agriculture, Forestry and Fisheries z Distribution statistics :Ministry of Agriculture, Forestry and Fisheries, Japan z Fishstat plus Commodities production and trade (FAO) z Japan trade statistics: Ministry of Finance, Japan z Japan canned tuna export fisheries association z Monthly Prices and Annual Average Prices by Item, Ministry of internal affair and communication, government of Japan z Composite expenditure Total households, Table 1 Expenditures of Commodities per Household by City Group and District, Ministry of internal affair and communication, government of Japan

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