Global integration of European tuna markets

This paper evaluates the degree of integration between the world market and the major European marketplaces of frozen and canned tuna through both vertical and horizontal price relationships. Spatial linkages are investigated horizontally in order to estimate the connection between the European market and the world-wide market on the primary tage of the value chain. One of the key results is the high level of market integration at the exvessel stage, and the price leadership of yellowfin tuna over skipjack tuna. The same approach is applied at the ex-factory level. Basically, the European market for final goods appears to be segmented between the Northern countries consuming low-priced canned skipjack tuna imported from Asia (mainly Thailand) and the Southern countries (Italy, Spain) processing and importing yellowfin-based products sold at higher prices. France appears to be an intermediate market where both products are consumed. The former market is found to be well integrated to the world market and can be considered to be competitive, but there is a suspicion of market power being exercised on the latter. Price relationships are therefore tested vertically between the price of frozen tuna paid by the canneries and the price of canned fish in both Italy and France. The two species show an opposite pattern in prices transmission along the value chain: price changes along the chain are far better transmitted for the “global” skipjack tuna than for the more European” yellowfin tuna. The results are discussed, along with their implications for the fishing industry.

Impacts of climate variability on the tuna economy of Seychelles

Many small island states have developed economies that are strongly dependent on tuna fisheries. Consequently, they are vulnerable to the socio-economic effects of climate change and variability, processes that are known to impact upon tuna fisheries distribution and productivity. The aim of this study was to assess the impacts of climate oscillations on the tuna-dependent economy of Seychelles. Using a multiplier approach, the direct, indirect and induced economic effects of the tuna industry declined by 58%, 34% and 60%, respectively, in 1998, the year of a strong warming event in the western Indian Ocean. Patterns in tuna purse seine vessel expenditures in port were substantially modified by strong climate oscillations. A cointegration time-series model predicted that a 40% decline in tuna landings and transhipment in Port Victoria, a value commensurate with that observed in 1998, would result in a 34% loss for the local economy. Of several indices tested, the Indian Oscillation Index was the best at predicting the probability of entering a regime of low landings and transhipment. In 2007, a moderate climate anomaly was compounded by prior overfishing to produce a stronger that expected impact on the fishery and economy of Seychelles. The effects of fishing and climate variability on tuna stocks are complex and pose significant challenges for fisheries management and the economic development of countries in the Indian Ocean

Impacts of climate variability on the tuna economy of Seychelles

Many small island states have developed economies that are strongly dependent on tuna fisheries. Consequently, they are vulnerable to the socio-economic effects of climate change and variability, processes that are known to impact upon tuna fisheries distribution and productivity. The aim of this study was to assess the impacts of climate oscillations on the tuna-dependent economy of Seychelles. Using a multiplier approach, the direct, indirect and induced economic effects of the tuna industry declined by 58%, 34% and 60%, respectively, in 1998, the year of a strong warming event in the western Indian Ocean. Patterns in tuna purse seine vessel expenditures in port were substantially modified by strong climate oscillations. A cointegration time-series model predicted that a 40% decline in tuna landings and transhipment in Port Victoria, a value commensurate with that observed in 1998, would result in a 34% loss for the local economy. Of several indices tested, the Indian Oscillation Index was the best at predicting the probability of entering a regime of low landings and transhipment. In 2007, a moderate climate anomaly was compounded by prior overfishing to produce a stronger that expected impact on the fishery and economy of Seychelles. The effects of fishing and climate variability on tuna stocks are complex and pose significant challenges for fisheries management and the economic development of countries in the Indian Ocean.