Baymen man Doug Rodgers says his business has dropped more than 80 percent since the coronavirus arrived.
HONG KONG: Tuna has increased in popularity thanks to pantry loading during the coronavirus pandemic, but canners are grappling with higher prices and other challenges that make it hard to keep up with increased demand.
Americans are buying more cans of tuna during the economic downturn. (iStock).
Americans have been buying more canned tuna during the economic downturn, in part because it is one of the cheapest proteins on the market, costing as little as $ 1 for a 5-ounce can. Bumble Bee Foods said sales of canned and bagged tuna increased up to 100% from mid-March to early April, while Costco Wholesale Corp. set limits earlier this year on how many containers of tuna a customer could buy.
Even after the initial feeding frenzy, canned tuna producers say sales of these products have remained significantly higher than the year before.
DEMAND FOR FROZEN SEAFOOD INCREASES DURING CORONAVIRUS AS A POINT OF SALE FOR FRESH FISH
Companies have been able to keep retail prices stable so far, despite average wholesale tuna prices increasing 41% year-over-year to May after hitting decade lows late last year, according to data. from Food and Agriculture. United Nations.
Prices vary depending on where the fish is purchased. Skipjack tuna purchased in Bangkok cost $ 1,200 per metric ton in June, up 14% from December 2019, but below a peak of $ 1,500 in March, according to data from Thai Union Group, a global food producer at seafood base that contains the canned tuna brand chicken.
Tuna has been opposed to wholesale prices of other seafood, which have generally declined due to sharp drops in demand for restaurants.
The tuna industry has a very long supply chain. Analysts say wholesale prices could remain high or trend upward in the coming months due to the challenges of obtaining enough fish to meet rising demand.
THE SEAFOOD INDUSTRY FIGHTS DURING THE CORONAVIRUS POINT
More than 40% of the tuna caught commercially in the world comes from the western and central Pacific Ocean, in the waters around small nations like Tuvalu and Kiribati. The fish is then shipped to processing plants on islands in the Pacific, Asia, or South America. Tuna is often canned in a third country before landing on supermarket shelves.
Tuna stocks have been plentiful this year, food industry analysts say, but border controls and other supply chain problems are hampering production.
Pittsburgh-based StarKist Co., owned by a South Korean conglomerate, processes and preserves most of its tuna in American Samoa, a small territory that is closer to New Zealand than it is to the continental United States.
The company has wanted to increase production, said Andrew Choe, president and CEO of StarKist, but was unable to purchase tuna from some of its regular suppliers during the pandemic. Border restrictions and the closure of fishing ports on some neighboring Pacific islands, where StarKist often buys tuna, have prevented fishing vessels from entering and delivering their catches.
RESTAURANTS TRANSFORMED IN CORONAVIRUS FOOD BANKS
To complicate matters, the StarKist plant in American Samoa recently encountered mechanical problems that took time to fix, in part because the company had to rent a plane to fly people to fetch parts and make repairs. Later, shipments of canned tuna to the continental United States were delayed because the ship serving the archipelago broke down twice and had to be replaced.
“There have been a lot of complaints, rightly, because they are not getting their products,” Choe said, referring to retailers. He added that problems at the plant could probably have been easily and quickly resolved had it not been for the pandemic.
For decades, the world’s largest canned tuna producers struggled to reverse the slump in sales and eliminate negative perceptions that their products were outdated, spicy, mercury-rich and environmentally friendly. Then the pandemic occurred, and the staple of the 20th century pantry became popular again.
PLANT BASED TUNA MAY BE COMING SOON
Thai Union, owner of Chicken of the Sea, based in El Segundo, California, said in May that markedly higher sales of canned tuna during the first quarter helped the group achieve its best operating performance in years. In March alone, sales of so-called environmental seafood, which includes canned goods, increased 50%.
BEYOND THE MEAT OF SEAFOOD GIANT TUNA HOOKS
“People ask, is this pantry being loaded? Is this consumption? I would say that each pantry load leads to higher consumption. People don’t just leave that in their pantry. They are consuming it, ”Joerg Ayrle, chief financial officer of the Thai Union, said in a conference call. He also said that the company has released videos with recipes for various types of tuna cakes and tuna pancakes.
Darian McBain, global director of corporate affairs and sustainability for Thai Union, said the company expects demand for canned tuna to remain high, though not at the level it experienced earlier this year.
GET FOX BUSINESS ON THE MOVE BY CLICKING HERE
Chicken of the Sea had to shut down a canning facility in Lyons, Georgia, for a day last month after a coronavirus outbreak at the plant. “It is our new normal,” said Dr. McBain.
At a Bumble Bee Foods facility in Santa Fe Springs, California, the company added Saturday shifts so workers can meet increased demand.
Todd Putman, executive vice president and chief growth officer for Bumble Bee Foods, said the company’s tuna stocks are running low.
“The product is available; it’s just a matter of getting it to the United States, “Putman said.” Our supply chain is strained. “
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
