W14 Tuna Update: Global Ample Tuna Supplies Stabilizes Prices, and Vietnam’s Tuna Exports Could Rebound in 2024

Tuna Prices Remain Stable Due to Ample Supplies

The tuna price in Bangkok, Thailand, remained stable at USD 1,300 per metric ton (mt) at the end of Mar-24. Over the same period, tuna sourced from Ecuador ranged between USD 1,450 and USD 1,500/mt with minimal fluctuation. Recent fishing conditions in the East and West Pacific Ocean have been favorable, resulting in prices hovering at lower levels than in previous years, prompting some international retailers to secure large purchase contracts.

Supply-wise, Bangkok continues to boast ample availability, with bonito comprising 70% of catches in active Peruvian waters. Fishing operations have progressed smoothly, leading to savings in fuel and time spent returning to port. With Easter approaching in the West, potential variables may impact April delivery prices, though sufficient supply suggests prices will either stabilize or experience slight declines in the future.

Conversely, prices in other production areas face pressure, exemplified by the Indian Ocean region where MSC-certified bonito commands USD 1,384.64/mt, while ordinary products were priced between USD 1,331.39 and USD 1,358.02/mt. Despite a three-month fishing aggregation device (FAD) moratorium in the Atlantic region, bonito sizes remain small with decreasing reports, theoretically supporting prices. However, the absence of fixed prices persists due to lower rates in alternative production zones. In the competitive low-price market, European fishing vessels struggle to compete with their Asian counterparts.

Vietnam’s Tuna Exports Could Rebound in 2024

According to the Vietnam Association of Seafood Processing and Exporters (VASEP), Vietnam's tuna export value surged to over USD 131 million in the first two months of 2024, a notable 21% increase compared to the same period in 2023. This growth instills optimism for tuna to reclaim its status among billion-dollar export commodities, following a lackluster performance in 2023. With Vietnamese firms actively broadening export horizons, tuna exports have flourished in recent months, reaching over 80 markets compared to 70 markets in the corresponding period in 2023. Notably, significant portions of these exports were directed toward the United States (US) with USD 45 million, the European Union (EU) with USD 29 million, and Israel with USD 13 million.

Despite this promising trajectory, the tuna industry in 2024 faces formidable challenges, including Red Sea tensions impacting transportation, leading to elevated freight rates and prolonged transit times. This situation escalates expenses. Moreover, the persisting yellow card warning against illegal, unreported, and unregulated (IUU) fishing complicates tuna exports to the EU. Industry experts advocate for leveraging signed free trade agreements (FTAs), particularly with Europe and the United Kingdom (UK), as pivotal strategies to surmount these hurdles and reinstate tuna as a prominent billion-dollar export commodity for Vietnam.