Netting Billions: a global valuation of tuna an update February 2020 (Final) ii Report Information This report has been prepared with the financial support of The Pew Charitable Trusts. The views expressed in this study are purely those of the authors. The content of this report may not be reproduced, or even part thereof, without explicit reference to the source. Citation: Macfadyen, G., Huntington, T., Defaux, V., Llewellin, P., and James, P., 2019. Netting Billions: a global valuation of tuna (an update). Report produced by Poseidon Aquatic Resources Management Ltd. Client: The Pew Charitable Trusts Version: Final Report ref: 1456-REG/R/02/A Date issued: 7 February 2020 Acknowledgements: Our thanks to the following consultants who assisted with data collection for this study: Richard Banks, Sachiko Tsuji, Charles Greenwald, Heiko Seilert, Gilles Hosch, Alicia Sanmamed, Anna Madriles, Gwendal le Fol, Tomasz Kulikowski, and Benoit Caillart. 7 February 2020 iii CONTENTS 1. BACKGROUND AND INTRODUCTION ................................................................... 1 2. STUDY METHODOLOGY ......................................................................................... 3 3. TUNA LANDINGS ..................................................................................................... 5 3.1 METHODOLOGICAL ISSUES ....................................................................................... 5 3.2 RESULTS ................................................................................................................ 6 4. DOCK / FIRST SALE EX-VESSEL VALUES .......................................................... 13 4.1 METHODOLOGICAL ISSUES ..................................................................................... 13 4.2 RESULTS .............................................................................................................. 17 5. FINAL CONSUMED END VALUES ........................................................................ 20 5.1 METHODOLOGICAL ISSUES ..................................................................................... 20 5.2 RESULTS .............................................................................................................. 25 Annexes ANNEX 1: POSEIDON 2016 REPORT .......................................................................................................... 30 Tables TABLE 1: TUNA LANDINGS OF SELECTED SPECIES 2012, 2014, 2016 AND 2018 (TONNES) ............................ 7 TABLE 2: 2018 LANDINGS OF SELECTED TUNA SPECIES BY GEAR (TONNES, AND %)....................................... 8 TABLE 3: LANDINGS BY FLAG STATE OF SELECTED TUNA SPECIES, 2012, 2014, 2016, AND 2018 (TONNES) ... 9 TABLE 4: LANDINGS OF TUNA, TUNA-LIKE SPECIES AND BILLFISH IN 2016 AND 2017 (TONNES, AND % OF TOTAL YEARLY LANDINGS) .......................................................................................................................... 11 TABLE 5: DOCK / FIRST SALE EX-VESSEL VALUES OF LANDINGS OF SELECTED TUNA SPECIES IN 2016 (IN US$) ...................................................................................................................................................... 18 TABLE 6: DOCK / FIRST SALE EX-VESSEL VALUES OF LANDINGS OF SELECTED TUNA SPECIES IN 2018 (IN US$) ...................................................................................................................................................... 18 TABLE 7: DOCK / FIRST SALE EX-VESSEL VALUES OF LANDINGS OF SELECTED TUNA SPECIES IN 2016 AND 2018 (IN US$ OF WHOLE ROUND LANDED WEIGHT) ..................................................................................... 19 TABLE 8: FINAL CONSUMED END VALUES OF SELECTED TUNA SPECIES IN 2016 (IN US$) ............................. 26 TABLE 9: FINAL CONSUMED END VALUES OF SELECTED TUNA SPECIES IN 2018 (IN US$) ............................. 27 TABLE 10: FINAL CONSUMED END VALUES OF SELECTED TUNA SPECIES IN 2016 AND 2018 (IN US$/TONNE OF WHOLE ROUND LANDED WEIGHT) ...................................................................................................... 28 TABLE 11: RATIO OF FINAL CONSUMED END VALUES TO DOCK VALUES OF SELECTED TUNA SPECIES IN 2016 AND 2018 .............................................................................................................................................. 29 7 February 2020 iv Acronyms used ALB ............... Albacore BB ................. Pole and line BET ............... Bigeye BFT ............... Atlantic bluefin CCSBT ......... Commission for the Conservation of Southern Bluefin Tuna CIF ................ Carriage Insurance and Freight C&F .............. Carriage and Freight EEZ ............... Economic Exclusion Zone e.g. ................ Exempli gratia in Latin meaning ‘for instance’/’for example’ EPO .............. Eastern Pacific Ocean ETRO ............ East Tropical Atlantic EUMOFA ...... The European Market Observatory for Fisheries and Aquaculture Products FAO .............. Food and Agriculture Organisation (of the United Nations) FFA ............... Forum Fisheries Agency FOB .............. Free On Board GN ................ Gillnet GOFM ........... Gulf of Mexico HL ................. Handline IATTC ........... Inter-American Tropical Tuna Commission ICCAT ........... International Commission for the Conservation of Atlantic Tunas IOTC ............. Indian Ocean Tuna Commission LL.................. Longline NE ................. North East NMFS ........... National Marine Fisheries Service NOAA ........... National Oceanic and Atmosphere Administration NW ................ North West NWC ............. North West Central OTH .............. Other PBF ............... Pacific bluefin PFMC ........... Pacific Fishery Management Council PS ................. Purse seine RFMO ........... Regional Fisheries Management Organisation SAFE ............ Stock Assessment and Fishery Evaluation SBT ............... Southern Bluefin tuna SKJ ............... Skipjack SW ................ South West T ................... tonnes TR ................. Troll TROP ............ Tropical Atlantic WCP(O) ........ Western Central Pacific (Ocean) WCPFC......... Western and Central Pacific Fisheries Commission WTRO ........... West Tropical Atlantic YFT ............... Yellowfin 7 February 2020 1 1. Background and introduction Taken together, seven important tuna species (skipjack, albacore, bigeye, yellowfin, Atlantic bluefin, Pacific bluefin, and southern bluefin1) are among the most economically valuable fish on the planet.2 In a previous study3 completed in 2016 by Poseidon Aquatic Resource Management Limited (Poseidon) on behalf of The Pew Charitable Trusts (Pew), analysis of landed volumes and prices for these species at different points in the supply chain, enabled an estimate of first sale ex-vessel values of tuna of US$ 12.2 billion in 2012 and US$ 9.8 billion in 2014. Final consumed values of these seven species were estimated at US$ 33.4 billion in 2012 and at US$ 33.0 billion in 2014. The estimates of final consumed values increased to US$ 41.6 billion in 2012 and US$ 42.2 billion in 2014 when using the total price of tuna cans rather than the drained weight of the tuna in canned products.4 The Poseidon 2016 study adopted an overall methodology (explained fully in that report and so not repeated here) that involved: • Collection of catch statistics for the seven oceanic tunas from relevant Regional Fisheries Management Organisations (RFMOs), and compilation into a single MS Excel spreadsheet to allow for identification of catches by ocean basin, species, gear used, and fishing fleet flag5. • Mapping of the flow of tuna from each ocean basin to end markets for different species and gear combinations. The main markets included: canning/loining (whether canned in a country in which tuna is landed or transhipped); fresh sashimi markets; frozen sashimi markets; for ranching (bluefin tuna species only); and domestic markets (either in fresh or processed form i.e. sales of tuna not traded internationally, and which do not enter the canning, ranching or sashimi market value chains). The mapping was based on extensive literature reviews and consultations with industry experts to assign proportions (in percentages) of the catch of each species and gear combination for each ocean basin destined or different markets. • Collection of first sale ex-vessel prices for tuna species caught by different gears in different ocean basins and destined for different end markets, and multiplication by the relevant catch volumes to generate dock/first sale ex-vessel sales values in 2012 and 2014. • Collection of final prices of tuna species sold in different types of end markets (canned tuna, sashimi tuna, ‘domestic’ consumption in producing countries, and by-products of canning), and using appropriate conversion rates back to whole live weight of catch, multiplication by the relevant catch volumes to generate final consumed sales values in 2012 and 2014. 1 Skipjack tuna Katsuwonus pelamis (SKJ); Bigeye tuna Thunnus obesus (BET); Yellowfin tuna Thunnus albacares (YFT); Albacore tuna Thunnus alalunga (ALB); Atlantic bluefin tuna Thunnus thynnus (BFT); Pacific bluefin tuna Thunnus orientalis (PBF); and southern bluefin tuna Thunnus maccoyii (SBT). 2 Pew, 2016. Netting Billions: a global valuation of tuna 3 Contract ID #27517; August 2014 to October 2015. 4 Macfadyen G., Huntington T., Caillart B. and Defaux V. (2016). Estimate of the global sales values from tuna fisheries. 5 The 2016 Poseidon study commented