2 Tuna. 1. Market Conditions in Japan

Transcription

1 2 Tuna 1. Market Conditions in Japan (1) Definition of category HS numbers for fresh, chilled or frozen (including whole fish, filets, and meat, but excluding prepared and/or processed ) are classified as follows. [Tuna (fresh or chilled)] [Tuna ] HS Numbers HS Numbers [Tuna (meat fillets and fish meat)] Commodity Albacore or long-finned (Thuunnus alalunga) Yellow-finned (Thunnus albacares) Big-eyed (Thunnus obesus) Blue-finned (Thunnus thynnus) Southern blue-finned (Thuunes maccoyii) Other Commodity Albacore or long-finned (Thuunnus alalunga) Yellow-finned (Thunnus albacares) Big-eyed (Thunnus obesus) Blue-finned (Thunnus thynnus) Southern blue-finned (Thuunes maccoyii) Other HS Numbers Commodity , -192, -199 Tuna meat fillets (fresh and chilled) , -292, -299 Tuna fish meat (fresh and chilled) , -092, -094 Tuna meat fillets , -096, -099 Tuna fish meat Note 1: The above , and include fishes other than. Note 2: Meat fillet is defined as fish meat that is cut parallel to the fish backbone with the head, entrails and fins removed. Note 3: Fish meat has no bones, but it is meat other than meat fillets. (2) Market Trends Tuna migrates widely throughout the world s oceans, with bluefin and southern bluefin distributed in temperate zones, yellowfin and bigeye in tropical zones, and albacore in the seas in between. Fishing grounds cover a great deal of area; over 100 countries engage in fishing, including Japan, Taiwan, Indonesia, and the Philippines. About 4.27 million tons of (including bonito) are caught annually worldwide; about 600 thousand tons are caught in Japan, which exports approximately 100 thousand tons of and imports roughly 410 thousand tons. Japan s share in the world s haul has been decreasing year after year; deep-sea fishing in particular is governed by international treaties restricting haul size, successor fishermen are hard to find, and fuel prices are skyrocketing. These and other difficulties have resulted in the number of fishing vessels dwindling from over a thousand in the 1970s to just over four hundred today. Conversely, fishing hauls are growing in other countries, including new member nations, and exports to Japan especially of high-priced sashimi-grade fish are on the rise. Still, preservation and management regulations are ramping up, mandated by international treaties out of global concerns over a decreasing supply. International fishery management organizations exercise strict oversight to shut down overfishing pirates who dodge the established rules. Recently, Taiwan s fishermen, who supply Japan with a major portion of its imported, have come under fire from Japan, Europe, and the United States due to continued overfishing above their allotted quota, and as of last year have begun sending out fewer vessels. The demand for is increasing in Europe, where citizens have eyed meat products warily ever since BSE, or mad cow disease, came onto the scene, and in China, which is enjoying extended economic growth. For these reasons as well as others, the world s is now in short supply. In the 1960s, a move toward farmed began with an eye on reducing the risk of fluctuations in the fish population and securing a stable supply. At present, bluefin, southern bluefin, and other high-priced species of farmed have made their way onto the market. Either the is cultivated, where they are raised in tanks from fry or roe, or ranched, where wild young and/or mature are caught, placed in tanks, and fattened up on pellets. Tuna have been successfully raised from incubated roe at the Fisheries Laboratory of Kinki 108

2 University in Wakayama, and while the technique has also been use in Okinawa, Amami-Oshima, and Nagasaki, the number of farmed is still low. Ranched bluefin comes out of Mediterranean nations such as Spain, Croatia, Malta, and Turkey as well as in Mexico, while Australia ranches the southern bluefin; these fish are believed to make up more than half of the fatty sashimi-grade on the market. The higher fat content characteristic of cultivated and ranched translates into a high market price in Japan, where consumers tend to prefer fat-belly toro sashimi. In Japan, the world s leading consumer of sashimi, total annual demand for and the like has leveled off to about 680 thousand tons. The 2005 Annual Report on Consumer Affairs stated that the amount of a household purchases each year has remained steady since 1983 at about 3.3 kilograms. According to the Food Monitoring Report released by the Ministry of Agriculture, Forestry and Fisheries of Japan, most consumers nearly 70 percent of respondents in 2003 turn to supermarkets when purchasing fresh fish. Tuna is a supermarket seafood staple, and events where raw is filleted on the spot in front of the customer rarely fail to draw a crowd. While red-fleshed species such as bigeye and yellowfin are the most common varieties on sale, the fattier farm-raised bluefin and southern bluefin have been showing up as well. Furthermore, as households begin spending a higher proportion of their money on dining out, the inexpensive appeal of conveyor-belt sushi restaurants where all plates cost 100 yen has helped popularize sushi among the family set. Tuna is a favorite here as well, with farm-raised bluefin joining the ranks of the more traditional offerings of bigeye and yellowfin. Because farmed can meet supermarkets demands for right amount of good quality fish at right time for reasonable price, major corporations, fisheries, big-name retailers, and smaller companies have joined together to increase the volume of transactions, quickly enhancing its presence in the Japanese market. The introduction of farmed has made bluefin and other luxury varieties seem comparatively more accessible. On the other hand, a number of problems with farming have been identified as well: it is difficult to know how many and what size may be caught for use in ranching, making resource management problematic; even the ingredients of the s food pellets make for an unpredictable reality. ICCAT (International Commission for the Conservation of Atlantic Tunas), the international administration authority in charge of the Mediterranean Sea, decided in 2004 to introduce a registration system for fish farms; since December 22, 2003, Japan has prohibited the import of shipped from anyone who is not registered on the ICCAT member nations list of official bluefin farms. Each variety of has its own special characteristics such as varying fat levels and different flavors, but in-season line-caught bluefin from Oma in Aomori Prefecture is said to be of the highest quality. Many Japanese consumers prefer the fattier toro belly, and the front portion of the belly (o-toro) has sold for over ten times the price of the red flesh along the s back. Visible qualities such as color and luster are key with darkened red meat will fetch a low market price as sashimi so post-catch treatment methods and storage conditions during shipment present additional challenges. Fresh raw must be kept in cold storage at zero degrees, while frozen must be kept at 50 to 60 degrees below zero to maintain quality. Characteristics of the various types of are as follows: (Blue finned Tuna) Also known as giant, this is the largest of the family. Distributed throughout the northern hemisphere, great numbers are fished from the seas near Japan, from the North Atlantic, and from the Mediterranean. Farmed bluefin are shipped from Wakayama, Okinawa, and Amami-Oshima; many of the bluefin farmed in countries such as Spain, Turkey, and Mexico are exported to Japan. Specimens with few tendons and good color are considered to be of the highest quality; most of these are shipped out to be used in food such as sushi and sashimi. Tuna toro, or belly, is very popular in Japan, and the rare high-fat belly (o-toro) of wild bluefin commands a superior price. (Southern Blue-finned Tuna) Also known in Japan as Indian, this fish resembles the bluefin, but is smaller: the largest reach only about two meters in length and weigh slightly less than 200 kilograms. Distributed throughout the southern hemisphere, it is fished from the seas surrounding Australia, New Zealand, and South Africa. Australia exports about eight thousand tons of southern bluefin to Japan, thanks to one of the world s first attempts at southern bluefin farming centered in the South Australian fishing village of Port Lincoln. Its vivid red flesh is also similar to that of the bluefin, and like bluefin it is used as a luxury ingredient in sushi and sashimi. (Big-eyed Tuna) It is widely distributed in areas from the tropics to the temperate zones, excluding the Mediterranean Sea. It seasonally migrates between the north and south, seeking places for food and spawning. It is called big-eyed because of its large eyes. It is smaller than blue-finned. It lives in rather deep parts of the central areas of the ocean. Catch quantity is the largest of species. As it is more abundant and cheaper than blue-finned and fatty fish meat can be obtained for toro. Preferred in the Kanto (eastern) region of Japan, this 109

3 popular variety of is the most familiar to Japanese consumers. It is sold as sashimi in supermarkets. (Yellow-finned Tuna) Yellow finned is widely distributed in tropical seas the world over. Japan s yellowfin population lives in the warm ocean currents south of Hokkaido and can be caught at the start of summer when bluefin is scarce, although at present shipments are often flown in from the Philippines and Guam as well. Its name comes from its yellowish sides and fins. Its pale red flesh is in great demand in the Kansai (western) region of Japan, and while it is used in sashimi and sushi dishes, it is less fatty and has a milder flavor than bigeye. Yellowfin is used as light canned, but sells at a lower price than albacore. (Albacore or Long-finned Tuna) Also known as white, albacore is widely distributed in the world s warm waters. It has hardly any red flesh, but is instead milky white with a mild flavor to match. Because it is similar to chicken when cooked, it is used as high-quality canned white-meat. Recently, smaller, fattier albacore caught in high-latitude, low-temperature waters have entered the market as bintoro, a popular ingredient in conveyor-belt sushi restaurants and take-out sushi stands. International Resource Management and Governmental Support in Japan According to the Fisheries Agency s 2005 Report on International Fishery Supplies, the populations of southern bluefin, West Atlantic bluefin, Indian Ocean albacore, and West Pacific and Atlantic bigeye are classified as low. Because overfishing is a contributor to these low populations, more stringent fishing regulations are required in the name of resource management; however, as it is difficult to enact resource management in each and every country separately, international administration authorities are establishing preservation and management provisions such as licensing, haul size limits, and national quotas (see 6. Other). Japan has been a major player in fishing, and has taken a leadership role in all international administration authorities as both an importer and consumer of. The Law Concerning Special Measures for the Protection of Tuna Resources and Management Reinforcement was enacted in 1996, and called for the protection and management of the world s resources. Later, in 1998, in line with the International Plan of Action for the Management of Fishing Capacity released by the Food and Agriculture Organization of the United Nations (FAO), Japan instituted its own management activities such as reducing its deep-sea logline fishing fleet by about 20 percent (132 vessels). In accordance with the Fisheries Law, several measures are being undertaken in order to comply with the quotas and haul limits set by international treaties: fishing is prohibited without a government license, fishing vessels must submit a data report to the Fisheries Agency after bringing in a haul, and in certain ocean regions, data reports must be submitted even while fishing operations are still ongoing. Furthermore, various policies are in effect to ensure the sustainable use of resources: a statistic verification process, in order to monitor each nation s fishing status within the trading system; the prohibition of imported from countries that attempt to dodge resource management by engaging in illegal, unreported, and unregulated (IUU) fishing; country-by-country lists of licensed fishing vessels; and the prohibition of trade with any vessel that is not on one of those lists (see 3. Tuna Resource Management and Trade Systems). The Fisheries Agency is expected to face several supply management issues in the years to come, including the question of how best to collect accurate resource data as new nations join the -fishing industry and as farming continues to expand. (3) Distribution System and Business Practices in Japan Imports of frozen have skyrocketed since the late 1990s, and at present account for about 80 percent of total imports, with fresh and chilled fish making up the remaining 20 percent. Major import and sales routes are outlined in Fig 1. Fresh is flown in, with 70 percent of shipments (by value) landing at Narita International Airport. Most of this fresh product is not sold at auction or via bids; instead, the importing company dealing with the overseas exporter sells the fish at mass merchandise outlets either directly or through a wholesaler. Frozen sashimi is imported on carriers or fishing vessels equipped with ultra cold storage units. Purchasers with the capital strength to buy in whole-ship lots can literally buy frozen by the boatload as methods for taking this initiative become commonplace; the fish is placed directly into cold storage without passing through a wholesale market onsite and is then transported to consumer retailers and mass merchandise outlets according to the market climate. Whole-ship lot deals can lead to lowered standing for onsite wholesale markets and oligopoly in some portions of the industry. However, changes such as the increased buying power of mass merchandise outlets, the increase on the market of farmed, and the recent innovations in ultra cold container ship technology that allow small- and mid-size companies to join the industry are changing the mainstream standing of whole-ship lot purchasing. 110

4 The flow of marine products through the Japanese market is complex, spanning six steps that touch on both the onsite wholesale market and the wholesale market at consuming place. Moreover, maintaining freshness with around-the-clock refrigeration and processing filets and sashimi can be costly. As a result, only 20 to 30 percent of the markup on the on the retail price is what the producer receives, a rather low figure compared to the 30 to 40 percent on vegetables. For example, according to a 2001 survey conducted by the Ministry of Agriculture, Forestry and Fisheries of Japan, the import price of bigeye was 811 yen per kilogram, about 28 percent of its retail price of 2,918 yen per kilogram. With big-name mass merchandise outlets feeling heavy price-appeal pressure, there has been a move toward streamlining the market flow process by cultivating off-market supply routes and negotiating with importers. Fig. 1 Distribution channels for imported Foreign ships, planes Trading companies Tokyo Central Wholesale Market Tuna buyers Primary wholesalers Auction Intermediary wholesalers Other wholesale markets Primary wholesalers Auction Intermediary wholesalers Outside-market distribution Outside market distributors Specialty stores, mass merchandisers, food service industry Consumers 2. Trade Trends (1) Import Trends in Japan Definition of Import - With regard to marine products like, goods which are carried into Japan as foreign goods are regarded as imported goods. That is, which is caught by vessels of foreign nationality in the seas outside of territorial waters (including Japan s and other counties exclusive economic zones) and carried into Japan, or which is caught by vessels of Japanese nationality and first landed in other countries, and then brought into Japan. Those other than the above (i.e., caught by vessels of Japanese nationality on the public seas, etc.) are regarded as Japanese products. Japan is the world s largest market of raw for sashimi (sliced raw fish). The seas of the world are the suppliers of raw for sashimi to meet Japanese demand. After dropping in 2003, the volume of imported fish is on the rise, catering to domestic demand even as domestic fishing volume declines saw billion yen in imports, compared with billion yen in 2005, a decrease of 3.7 percent. Even though import volume is growing, the market is now awash in farmed and fairly low-quality fish from Taiwan, which contributes greatly to the flat price of. Looking at 2005 s import trends by species, only yellowfin at 52.8 billion yen (a 3.9 percent increase) and 144,954 tons (an 8.7 percent increase) has posted any gains; all other varieties are down from the previous year. Bigeye is responsible for 74 billion yen (a 19.1 percent decrease) and 118,844 tons (a 12.2 percent decrease); along with yellowfin, it accounts for 74.7 percent of the whole import value and 89.7 percent of import 111

5 volume. The majority is imported frozen and used in sashimi and sushi, although smaller yellowfin are also used as canned. Imports of high-quality farmed bluefin for sashimi from Mexico and the Mediterranean had been on the rise, but 2005 saw a drop of 28.6 percent in frozen, even lower than 2002 s import value results. Albacore had mostly been used as white-meat canned, but the popularity among consumers of conveyor-belt sushi restaurants has raised its domestic wholesale price, with frozen albacore fetching 2.3 billion yen in import sales in 2005, almost double its 2001 showing. Fig. 2 Trends in Japan s imports (\ million) 300, ,000 [Total import value] (\ million) 120, ,000 [Import value by category] Big-eyed 200,000 80, ,000 60,000 Yellow-finned 100,000 40,000 Blue-finned 50, (Year) 20,000 0 Sounthern blue-finned (Year) Value Volume Tuna(fresh or chilled) 73,965 65,955 63,576 61,205 54,529 68,797 63,016 60,412 56,714 51,007 Long-finned Yellow-finned 28,414 25,703 21,843 19,394 17,259 36,500 32,025 27,852 24,208 21,476 Big-eyed 19,053 18,779 15,780 16,149 14,616 21,876 21,990 18,542 19,067 16,930 Blue-finned 19,282 15,549 19,506 20,350 18,214 7,122 6,102 10,587 9,971 9,879 Southern bluefinned 6,886 5,461 6,204 5,079 4,321 2,773 2,154 3,037 3,059 2,514 Other Tuna 119, , , , , , , , , ,927 Long-finned 1, ,388 2,300 4,512 1,669 2,804 6,494 6,100 Yellow-finned 23,063 28,566 26,251 31,416 35,555 83, , , , ,478 Big-eyed 73,127 80,839 74,636 75,240 59, , , , , ,914 Blue-finned 5,443 8,594 11,879 11,020 7,870 2,707 3,568 4,792 6,626 4,220 Southern bluefinned 16,440 19,599 9,344 11,009 9,942 8,130 8,659 5,156 8,174 7,215 Other Tuna (meat fillets and meat) 56,235 65,728 59,470 66,101 79, , , , , ,175 (fresh/chilled) 1,394 1,464 1,711 1,520 1,955 1,345 1,223 1,232 1,107 1,725 Fish meat (fresh/chilled) 4,780 4,159 3,558 3,207 2,984 4,591 4,033 3,624 3,171 2,894 22,790 29,367 28,516 33,435 40,391 12,872 16,181 17,873 22,261 26,713 Fish meat 27,272 30,738 25,685 27,939 34,039 94, ,123 97, , ,842 Total 249, , , , , , , , , ,110 Unit : value = \ million, volume = tons Source : Trade Statistics, Ministry of Finance 112

6 Fig. 3 Trends in imports by category in 2005 Value Volume Average Unit Price Value Share Yearly Yearly Volume Share Change Change Big-eyed 73, % , % Yello-finned 52, % , % Blue-finned 26, % , % ,890 1,850 Southern blue-finned 14, % , % ,432 1,466 Long-finned 2, % , % Other 0 0.0% % Total 169, % , % Unit : value = \ million, volume = tons, yearly change over previous year = %, average unit price = \ per kg Source : Trade Statistics, Ministry of Finance (2) Principal Exporters to Japan and ASEAN s Position Taiwan is the biggest exporter of to Japan, with frozen bigeye making up a great deal of the total import value. However, Taiwan has been criticized by Japan, the United States, and Europe for overfishing above its assigned quota in violation of resource conservation efforts; in response, Taiwan began to reduce the size of its fleets in 2005, precipitating a drop in 2005 import value from 70.4 billion yen to 59.7 billion yen. Further decreases are expected as Taiwan has agreed to do away with 40 percent of its fleets by the end of Coming in second is Korea (29.3 billion yen and an 11.8 percent share), followed by China (20.5 billion yen and an 8.2 percent share), which overtook Australia in 2003 to come in at number three. Indonesia is putting its efforts into airlifted fresh seafood and is a top exporter of yellowfin and bigeye (see Fig. 5), but overall it holds only a 5.5 percent share of import value as Japan s fifth largest exporter. Fresh generally commands a higher average unit price than frozen, but it accounts for only 20 percent of hauls exported to Japan. In sixth place is Thailand (10.7 billion yen), which exports mostly frozen meat; since their hauls hardly ever include whole fish, their average unit price is a low 252 yen per kilogram (see Fig.4). Taiwan and Korea together have about as many ultra cold ships as Japan does, and both work the world s seas in earnest. Therefore, not only do they export large amounts of to Japan, but their hauls are rich in variety; the majority of Japan s imported bigeye and yellowfin are from these two countries. Australia has a lock on supplying large quantities of fresh and frozen southern bluefin. Although Indonesia exports fresh southern bluefin and the third-place Philippines export the frozen product, neither country s import value is even 1 percent of the total. Fresh high-quality bluefin comes from Spain and Mexico, with frozen bluefin coming chiefly from Croatia and Tunisia. Australia s southern bluefin, along with bluefin from Mediterranean nations such as Spain and Croatia, are often farmed netted are placed in a large tank to be fed and raised for several months (see Fig. 5). ASEAN accounts for 16.1 percent of all import value and 23.7 percent of the total volume. While imported frozen whole brings in about twice the money as the fresh or chilled equivalent, fresh and chilled consistently outperforms frozen in ASEAN s exports to Japan. The Philippines posted a notable 73.7 increase in import sales to Japan of frozen yellowfin in Fig. 4 Principal exporting countries and regions of to Japan [Import value from major countries] [Shares of import value in 2005] (\ million) 80,000 60,000 40,000 Taiwan Korea Others 30.2% ASEAN 16.1% EU 9.7% 20,000 0 Australia China Thailand (Year) China 8.2% Taiwan Korea 24.0% 11.8% 113

7 Value Value Value Value Volume Value Volume Average Unit Price Taiwan 52,264 63,517 68,028 70, ,197 59, % 130, % 458 Korea 38,888 41,387 30,558 31,814 56,178 29, % 55, % 525 China 13,109 16,561 19,002 19,095 37,666 20, % 45, % 450 Australia 23,524 25,317 16,424 16,360 12,082 14, % 9, % 1,476 Indonesia 17,509 19,505 14,224 14,157 19,349 13, % 19, % 712 Thailand 11,567 14,063 12,617 11,622 49,148 12, % 51, % 252 Spain 16,700 15,295 12,893 10,898 4,303 11, % 4, % 2,583 Turkey ,870 6,233 2,805 6, % 2, % 2,371 Philippines 4,666 4,961 4,662 5,510 13,029 6, % 17, % 382 Others 70,869 68,328 63,555 72, ,356 73, % 110, % 660 Total 249, , , , , , % 448, % 555 (E U) 20,154 19,131 17,591 17,681 10,757 24, % 12, % 1,885 (ASEAN) 44,072 43,418 35,109 35,759 92,482 40, % 106, % 377 Unit : value = \ million, volume = tons, average unit price = \ per kg Source : Trade Statistics, Ministry of Finance Fig. 5 Principal exporting countries and regions of by category (2005, in value basis) Long-finned (fresh/chilled) Yellow-finned (fresh/chilled) Change Unit Price Change Unit Price 1 Fiji % Indonesia 5, % Australia % Sri Lanka 1, % Papua New % Republic of 1, % Guinea Palau (ASEAN Total) 0 0.2% , % Big-eyed (fresh/chilled) Blue-finned (fresh/chilled) Change Unit Price Change Unit Price 1 Indonesia 5, % Spain 6, % ,821 2 Republic of Palau 1, % ,016 Mexico 6, % ,537 3 Maldives % Turkey 1, % ,409 (ASEAN Total) 8, % % Southern blue-finned (fresh/chilled) Long-finned Change Unit Price Change Unit Price 1 Australia 3, % ,703 Canada % New Zealand % ,085 U.S.A % Indonesia % ,029 Trinidad and Tobago % (ASEAN Total) % , % Yellow-finned Big-eyed Change Unit Price Change Unit Price 1 Taiwan 21, % Taiwan 34, % Korea 5, % Korea 10, % Philippines 2, % China 7, % (ASEAN Total) 3, % , %

8 Blue-finned Southern blue-finned Country/Regi Value Share change unit price on change unit price 1 Croatia 3, % ,700 Australia 9, % ,434 2 Republic of Tunisia 1, % ,268 Taiw an % Turkey 1, % ,205 Philippines % ,435 (ASEAN Total) 8 0.1% - 2, % ,435 (fresh/chilled) Fish Meat(fresh/chilled) change unit price change unit price 1 Norw ay % ,060 Korea 2, % ,024 2 Canada % ,110 Spain % ,801 3 Indonesia % ,282 Indonesia % (ASEAN Total) % , % Fish Meat change unit price change unit price 1 Korea 8, % Thailand 10, % Republic of Malta 4, % ,681 China 7, % Turkey 4, % ,402 Chile 3, % (ASEAN Total) 3, % , % Unit: value = \ million, yearly change over previous year = %, average unit price = \ per kg Source: Trade Statistics, Ministry of Finance Fig. 6 Tuna imports from ASEAN by country /category [Value] [Volume] (\ million) 50,000 40,000 30,000 20,000 44,072 43,418 35,109 35,759 40,038 (\ million) 120, ,000 80,000 60,000 40,000 94, ,566 96,248 92, ,304 10,000 20, (Year) (Year) 115

9 ASEAN Total Indonesia Value Volume Average Unit Price Tuna(fresh/chilled) 24,899 20,961 16,621 18,193 17,320 32,689 26,981 21,463 22,974 21, Long-finned Yello-finned 16,531 12,617 10,233 9,696 9,272 21,876 16,254 13,456 12,230 11, Big-eyed 8,295 8,250 6,352 8,466 8,023 10,741 10,632 7,971 10,712 9, Blue-finned Southern bluefinned ,029 Other Tuna 7,404 7,360 4,608 4,788 5,403 15,903 22,124 15,722 13,439 18, Long-finned Yello-finned 1,750 2,521 2,050 1,734 3,011 5,930 13,180 11,110 8,568 14, Big-eyed 5,624 4,748 2,488 2,891 2,292 9,880 8,794 4,454 4,678 4, Blue-finned ,221 Southern bluefinned ,435 Other Tuna(meat fillet/fish meat) 11,769 15,097 13,880 12,779 17,315 45,513 58,460 59,063 56,070 66, (fresh chilled) ,253 Fish meat (fresh/chilled) ,254 1,713 1,746 1,751 3,069 1,849 2,707 2,636 2,735 3, Fish meat 10,331 13,280 12,014 10,848 13,993 43,476 55,655 56,306 53,132 62, Total 44,072 43,418 35,109 35,759 40,038 94, ,566 96,248 92, , Share in Total 17.7% 16.1% 14.3% 13.8% 16.1% 23.5% 23.8% 22.7% 20.9% 23.7% Tuna(fresh/chilled) 12,147 14,197 11,316 11,964 11,248 15,250 17,732 14,252 14,825 13, Long-finned Yello-finned 8,324 8,697 6,727 6,105 5,314 10,552 10,924 8,603 7,554 6, Big-eyed 3,752 5,405 4,553 5,829 5,910 4,627 6,712 5,612 7,240 7, Blue-finned Southern bluefinned ,029 Tuna 4,596 3,808 1, ,806 8,418 3,775 2,069 2, Long-finned Yello-finned 1, ,277 2,575 1, , Big-eyed 3,512 3,002 1, ,487 5,776 1,990 1,452 1, Southern bluefinned Tuna(meat fillet/fish meat) 766 1,501 1,617 1,349 1,603 1,787 3,024 2,628 2,454 2, (fresh chilled) ,282 Fish meat (fresh/chilled) ,041 1, ,101 1,251 1,706 1,641 1,515 1, Fish meat , Total 17,509 19,505 14,224 14,157 13,748 26,843 29,174 20,656 19,349 19, Share in Total 7.0% 7.2% 5.8% 5.5% 5.5% 6.7% 6.4% 4.9% 4.4% 4.3% 116

10 Thailand Philippines Value Volume B-2. Tuna Average Unit Price Tuna(fresh/chilled) 1,313 1,763 1,707 2,045 1,810 1,832 2,681 2,514 2,885 2, Yello-finned ,131 1,173 1,352 1,006 1,219 1,690 1,610 1, Big-eyed , , Tuna , Long-finned Yello-finned , Big-eyed Other Tuna(meat fillet/fish meat) 9,940 12,178 10,840 9,573 11,062 41,307 51,380 50,997 46,236 48, (fresh/chilled) ,017 Fish Meat (fresh/chilled) Fish Meat 9,389 11,709 10,537 9,236 10,727 40,798 50,913 50,682 45,930 48, Total 11,567 14,063 12,617 11,622 12,920 44,462 54,892 53,973 49,148 51, Share in Total 4.6% 5.2% 5.1% 4.5% 5.2% 11.1% 12.1% 12.7% 11.1% 11.4% Tuna(fresh/chilled) 2,364 1,468 1,341 1,283 1,711 3,045 1,828 1,649 1,547 1, Long-finned Yello-finned 1,639 1,131 1, ,029 2,114 1,420 1,282 1,113 1, Big-eyed Southern bluefinned Tuna 2,136 3,368 3,238 3,910 4,390 4,138 12,195 11,354 11,211 15, Long-finned Yello-finned 406 1,575 1,709 1,633 2,661 1,429 9,184 8,819 7,895 12, Big-eyed 1,713 1,744 1,477 2,140 1,664 2,670 2,953 2,465 3,226 2, Southern bluefinned ,435 Tuna(meat fillet/fish meat) ,306 (fresh chilled) ,135 Fish meat (fresh/chilled) , ,402 Fish meat ,163 Total 4,666 4,961 4,662 5,510 6,672 7,339 14,186 13,075 13,029 17, Share in Total 1.9% 1.8% 1.9% 2.1% 2.7% 1.8% 3.1% 3.1% 2.9% 3.9% 117

11 Value Volume Average Unit Price Tuna(fresh/chilled) 1,193 1,166 1,271 1,660 1,065 1,549 1,536 1,804 2,130 1, Yello-finned , ,079 1, Big-eyed , Blue-finned Tuna Long-finned Yello-finned Tuna(meat fillet/fish meat) 854 1, ,537 2,150 2,929 3,385 3,980 5, Vietnam (fresh chilled) ,134 Fish meat (fresh/chilled) , Fish meat ,396 1,976 2,663 3,052 3,684 5, Total 2,047 2,225 2,234 2,660 2,617 3,699 4,473 5,189 6,126 7, Share in Total 0.8% 0.8% 0.9% 1.0% 1.1% 0.9% 1.0% 1.2% 1.4% 1.7% Tuna(fresh/chilled) 6,233 1, ,461 1, , Yello-finned 4,070 1, ,597 1, Big-eyed 2, , Tuna Long-finned Yello-finned Big-eyed Blue-finned ,221 Singapore Tuna(meat fillet/fish meat) , ,926 (fresh chilled) , ,061 Fish meat Total 6,254 1, ,028 1,963 8,535 2, ,708 1,720 1,142 Share in Total 2.5% 0.6% 0.2% 0.4% 0.8% 2.1% 0.6% 0.2% 0.4% 0.4% Malaysia Myanmar Laos Cambodia Brunei Unit : value = \ million, volume = tons, average unit price = \ per kg Source : Trade Statistics, Ministry of Finance (3) Imports Market Share in Japan Although domestic hauls were down 7.1 percent overall at 231,388 tons in 2005, bluefin hauls had actually increased by 35.9 percent and southern bluefin hauls by 33.1 percent. While domestic hauls remain stagnant, the volume of imported is increasing steadily, reaching a share of 65.9 percent in 2005 and continuing to measure above domestic haul volume. The import share of southern bluefin is up to 70 percent from two years ago, but it dropped to 61.7 percent in This was because that the domestic haul had increased 33.1 percent compared with the previous year. As it was found out in 2005 that Japan had exceeded its set quota for southern bluefin, it is voluntarily reducing its 2006 quota 118

12 of 6,045 tons by the overage amount. The import share of bigeye and yellowfin have remained at about 60 percent over the past several years. Only domestic albacore has put in a strong showing with an 89.1 percent share; it is also often exported for canning. Fig. 7 Share of imported in the Japanese market (approximate figures) Domestic catch 287, , , , ,388 Imports 400, , , , ,110 Domestic market total 688, , , , ,498 Imports share 58.2% 61.9% 62.8% 64.0% 65.9% Domestic catch (yearly change) Big-eyed 68,821 (-13.9%) Imports share by species (2005 approximate figures) Yellow-finned Long-finned Blue-finned Southern blue-finned 80,245 51,368 19,299 6,045 (4.9%) (-26.0%) (35.9%) (33.1%) Imports 118, ,954 6,308 14,099 9,729 Domestic market total 187, ,199 57,676 33,398 15,774 Imports share 63.3% 64.4% 10.9% 42.2% 61.7% Unit: tons Source: Annual Statistics on Fishery and Aqua Culture Production, Japan Exports and Imports 3. Key Considerations Related to Exporting to Japan (1) Regulations and Procedural Requirements at the Time of Importation in Japan Importation of may be subject to control under the Foreign Exchange and Foreign Trade Law. Also, there are control of catch quantity of sea fisheries and import controls based on domestic laws. An example would be the Law for Regulation of Fishing Operation by Foreign Nationals, and the Law Concerning Special Measures to Strengthen the Conservation and Management of Tuna Resources, as well as international agreements. Importation of frozen blue-finned and big-eyed loaded for shipment on or after November, 2003 must have the Fisheries Agency issue a certificate of verification stating that the catch came from a vessel that appears in the properly authorized vessel list. As of December 2004, the import of farmed Mediterranean is prohibited unless its production site is registered on the list of certified farms. The regulations set out in the Food Sanitation Law also apply to all fish, regardless of species. 1) Foreign Exchange and Foreign Trade Law (Import Trade Control Ordinance) This law enforces the following regulations on imported, depending on the type of fish and how it is imported. For more information, check with the Ministry of Economy, Trade and Industry. ( I) Fresh or chilled farmed Atlantic or Mediterranean bluefin (except those with Spain, Mexico, Turkey, or the Philippines as their country of origin), fresh or chilled Southern blue-fined (except those with Australia, New Zealand, or the Philippines as their country of origin), and bigeye and bigeye products with Bolivia or Georgia as their country of origin or fishing ground and its preparations. These are the Import Approval Items designated by the Minister of Economy, Trade and Industry (Import Notice No.2). In practice, import of from these countries is prohibited, based on counsel of the International Convention for the Conservation of Atlantic Tuna (ICCAT). II) Frozen bluefin, southern bluefin, bigeye, and other varieties imported by vessels. These are the Prior Confirmation Items designated by the Minister of Economy, Trade and Industry (Import Notice No.3) and require procedures prior to import. Procedures are to be executed by submitting an application form for confirmation to the Agricultural and Marine Products Office, the Trade Licensing Division, Trade and Control Department, Trade and Economic Cooperation Bureau, the Ministry of Economy, Trade and Industry. The application form is to be prepared according to the form shown in the METI Official Bulletin. 119

13 III) Fresh or chilled bluefin and southern bluefin These are the Customs Confirmation Items at the time of customs clearance. A certificate of statistics on blue-finned or southern blue-finned is to be submitted to Customs, and they are supposed to confirm the documents. The certificate is to be issued by the confirmation agency of each flag country. 2) Law Concerning Special Measures for the Protection of Tuna Resources and Management Reinforcement If the Government determines that fishing activities by foreign fishery interests decrease the effectiveness of resources conservation management, they shall be able to request that the international agency take proper measures. Also, if necessary, they shall be able to limit the import of from foreign countries in accordance with the provisions of the Foreign Exchange and Foreign Trade Law. The Fisheries Agency maintains lists of certified bluefin farms and licensed fishing vessels, and checks that the exporter is registered on one of these lists when importing frozen bluefin, frozen southern bluefin, or frozen bigeye. Importers must apply for certification from the Ocean Fisheries Resource Management Team in the Far Seas Fisheries Division of the Fisheries Agency, then submit that certification when applying for advance certification from the Ministry of Economy, Trade and Industry. Also, when importing fresh or chilled Atlantic or Mediterranean farmed bluefin that is from any nation or region that is not an ICCAT member or cooperative non-member, the source will be investigated to ensure there has been no violation of bluefin resource conservation management; the certification documents obtained must be submitted to the Ministry of Economy, Trade and Industry when applying for advance certification, but no such documents have been issued to date. Fig. 8 Authorized fishing vessels/fishing grounds procedure (frozen blue-finned, southern blue-fin, big-eyed or swordfish) Flag nations (After checking against list, issue a statistical verification certificate) Importers Authorized fishing vessels and fishing grounds list (Prepared by ICCAT and other international fishery resource t i ) Application for confirming fisheries caught by properly authorized fishing vessels/fishing grounds Certificate of verification Fisheries Agency (After checking it against list, issue a certificate of verification Application for prior confirmation Certificate of prior confirmation Ministry of Economy, Trade and Industry (Request to submit a certificate issued by Fisheries Agency, in addition to a statistical verification certificate, etc. Tuna Resource Management and Trade Systems International fishery management agencies such as the ICCAT (International Convention for the Conservation of Atlantic Tuna), IOTC (Indian Ocean Tuna Commission) and CCSBT (Commission for the Conservation of Southern Blue-finned Tuna) have taken the following measures to conduct resource management of. ➀ Statistical verification system National fish catch status will be monitored during the process of exportation through a system under which the government where fishing vessels are registered issue a statistical verification certificate confirming the name of the vessel and its fishing grounds, with the certificates collected by the importer nations. ➁ Ban on exports from nations engaging in IUU fishing Nations that allow, whether deliberately or through neglect, disorderly IUU (Illegal, Unreported, and Unregulated) fishing by operators who register their vessels in third nations with inadequate oversight capabilities in order to evade international resource management programs shall be subject to a ban on imports. 120

14 ➂ Legitimate fishing licensed vessels(positive list) B-2. Tuna Compiling a list of all fishing vessels holding legitimate fishing licenses from various nations, and authorizing international trading only in fish catch from these properly authorized vessels.. 4 List of authorized fishing grounds ICCAT member countries register their fishing grounds with the Commission; only the caught in those fishing grounds can be traded on the international market. 3) Law for Regulation of Fishing Operation by Foreign Nationals When foreign fishing vessels land directly in Japan with fisheries caught on the sea, permission is required by the Minister of Agriculture, Forestry and Fisheries in accordance with the Law for Regulation of Fishing Operation by Foreign Nationals. When fisheries are shipped from a foreign country and land in Japan, permission is not required. However, a certificate of port clearance (PC) issued by the government agency of the shipping country must be attached 4) Food Sanitation Law All food products, imported for the purpose of sale or for other commercial purpose, importers must submit the completed Notification Form for Importation of Foods, etc. along with other required documents (production process chart, Health Certificate issued by a competent governmental agencies of the export country nominated as the area with active cholera outbreaks), at the port of entry. A determination in made based on the document examination whether or not the inspection at bonded area is required (The flow of the process is as per Fig.9). The Japanese prefer raw marine food products, and consume a great deal of them. For this reason, food poisoning by Vibrio parahaemolyticus is not uncommon. To help prevent this ailment, the Food Sanitation Law defines composition standards, processing and preservation standards for frozen sliced fresh fisheries and shucked fisheries by the Standards of Fresh Fisheries for Raw Consumption and the Standards of Frozen Fisheries for Raw Consumption. As part of its seafood ingredient specifications, the law also sets out residue standards for marine pharmaceuticals. Enforcement of these standards was ramped up with the May 29, 2006 enactment of a positive list system. Before this system was in place, it was essentially impossible to exert any control over marine pharmaceuticals for which standards had not been established; under the new system, however, residue standards have been set for all marine pharmaceuticals, and any product that exceeds these standards is prohibited from being imported or sold in Japan. For more information, check with the Ministry of Health, Labor, and Welfare ( In addition, carbon monoxide (CO), which artificially tinges with a red color in order to give it an appearance of freshness, is not designated as a usable additive in the Food Sanitation Law. Therefore, if CO is detected, import is not permitted. It is required for the importers to gather abundant and enough information on the projected import foods to study whether the products meets the requirement of the Food Sanitation Law in their specifications and standards by obtaining, in advance, ingredients lists and production process charts or by making consultation with the quarantine office. Prior to importing, the importer may take a sample of forthcoming imports to laboratories registered with the Ministry of Health, Labor and Welfare or the competent governmental agencies of the exporting countries. Those test results may be substituted for the corresponding inspection at the port of entry, which expedites the quarantine process. In addition, importers who wish to submit their notification by computer may make use of the computerized FAINS (Food Automated Import Notification and Inspection Network System) for processing import-related documentation. Importers who have possessed hardware and software may apply for a security code from the Minister of Health, Labor and Welfare to access the system. 121

15 Fig. 9 Procedures required under the Food Sanitation Law Advance consultation service Advance information acquisition (regarding production methods, content of ingredients, etc.) Advance inspection (by the competent government agency of the exporting country, or the official laboratory registered with the Minister of Health, Labour and Welfare) Submission to the Quarantine Station ( Notification Form for Importation of Foods, etc. and other related documents) Examination of documents Cargo required inspection Cargo not required inspection Failure Pass Certificate of notification processing, or certificate of passing inspection Reshipment, destruction, conversion to other purposes Customs declaration (2) Regulations and Procedural Requirements at the Time of Sale Sale of fresh, chilled or frozen is subject to provisions of the Food Sanitation Law, the JAS Law, the Measurement Law, the Health Promotion Law, and the Act Against Unjustifiable Premiums and Misleading Representations. Containers and packaging may also be subject to identifier labeling provisions of the Law, for Promotion of Effective Utilization of Resources, and recycling provisions of the Containers and Packaging Recycling Law. Please contact one of the agencies listed in (6) Regulatory Agency Contacts for more complete information about affected packaging, the definition of specific providers (certain small-scale providers are exempt from regulation), and labeling methods. 1) Food Sanitation Law The Food Sanitation Law prohibits the sale of foods containing toxic or harmful substances and foods that are unsafe for human health. When selling sealed in wrapping or containers, it must be labeled in accordance with provisions of the Food Sanitation Law (see 3. Labeling). In order to establish a store and sell fresh fisheries to consumers and retailers, they must apply for and obtain a business license. For more details on applications for licenses for selling fisheries, required facilities, etc., please contact the public health center with jurisdiction over the intended sales area. 2) JAS Law (Law Concerning Standardization and Proper Labeling of Agricultural and Forestry Products) The JAS Law establishes quality labeling standard for all food and beverage products sold to ordinary consumers (see 3. Labeling). 3) Measurement Law When selling, any discrepancy between the labeled weight and the actual weight must fall within the limits of a predetermined weight tolerance (i.e., an official margin of error) 4) Act Against Unjustifiable Premiums and Misleading Representations The Act prohibits a form of improper labeling exaggerated or false labeling that misleads consumers about the nature or quality of products. Also, vague or confusing labeling that makes it difficult to discern the actual country of origin is also prohibited as a form of improper labeling. 5) Health Promotion Law When labeling the nutritional data on containers and packages or include in promotional documents of processed foods aimed at the sale to consumers, it is obligatory to display in accordance with the Standard of Labeling Nutritional Data stating calories, protein, fat, carbohydrate, sodium and nutritional ingredient in order of the content of quantity. 122

16 (3) Labeling Regulations at the Time of Sale in Japan 1) Legally Required Labeling When selling fresh, chilled, and/or frozen, certain labeling requirements are mandated by the Food Sanitation Law and the JAS Law. [1] Food Sanitation Law, JAS Law Japanese-language labels are required when selling, per the quality labeling standards established by the Food Sanitation Law and the JAS Law. When filleted fresh and refrigerated is sold alone in individually wrapped packages, the following information must be included on the labels. Note that when is sold as part of a sashimi platter, it is treated as a processed product and has different labeling requirements. Furthermore, the country of origin of all marine products is defined as the country where the fishing operations took place and/or the country where the fishing vessel is registered. 1 Name of product 2 Whether it is for raw consumption or no 3 Food additives (when used) 4 Use-by date 5 Preservation method 6 Country of origin (names of capturing areas or processing regions for domestic products) 7 Description of thawed if it corresponds 8 Description of cultivates if it corresponds (Ref.)Some municipalities have established their own labeling standards for fresh and frozen. For example, Tokyo's "Facility and Hygiene Control Standards for Businesses Selling Packaged Seafood" specifies what data must be included in any labeling (the product name, whether it is to be consumed raw, and so on). [2] Law for Promotion of Effective Utilization of Resources Under the Law, specific containers and packaging are subject to identifier labeling provisions, in order to promote sorted collection. When paper or plastic is used as a packaging material for wrapping of individual product items, or for labels, external packaging or elsewhere, a material identifier mark must be displayed at least one spot on the side of the container with information where the material is used. 2) Voluntary Labeling based on Provisions of Law [1] JAS Law When a JAS Registered Certifying Body has determined that a food s labeling accurately conveys information to consumers regarding the food s production history, that product is permitted to display the JAS mark. There are plans to establish JAS Production Information Disclosure Standards for farmed fish as well. Contact: Center for Food Quality, Labeling, and Consumer Services Headquarters Technical Exchange Department Tel: ) Labeling based on the Guidelines of the Fishery Agencies In April 2003 the Fisheries Agency published Guidelines for Naming of Fisheries. These Guidelines stipulate standard Japanese-language names or substitute common names that may be used to refer to fresh fisheries. In addition, the Fisheries Agency also published in June 2003 Guidelines for Labeling of Water Areas for Fresh Fisheries and advised labeling based on the Guidelines. 4) Voluntary Industry Labeling There is no voluntary industry labeling for. (4) Key Consideration for Entering the Japanese Market For entering market in Japan, considerably wide range of product knowledge is required. Some species are prohibited for import, and some are subject to a quarantine inspection. Therefore, prospective importers must be aware of laws and regulations. Also, there are the following problems regarding import and distribution of : - A considerably wide range of product knowledge is required to select the species and assure quality. - Long-term experience with market prices and procedures is required for purchase. 123