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//Situation Report          29






          Table 1: Producing countries in the region           Table 3a: Post-virus effects on tuna suppliers/producers
                                                                Factors          Upside  Downside   Suppliers/producers
          Tuna in Latin   Producers      Non-producers                                            (most affected)
          America
                                                                Recession in 2020 (GDP)         Ecuador, Brazil, Mexico
          South America  Equador, Colombia,   Chile, Bolivia, Uruguay,
                        Peru, Brazil, Argentina,   Guyana, Suriname,   Regionalism:  economic   Brazil/Mercosur, Peru/
                        Venezuela        Paraguay               blocs may lose relevance        Pacific Alliance, Mexico/
                                                                                                     NAFTA
                                                                Global value chains:            El  Salvador, Guatemala,
          Central America &  Mexico, Costa Rica,    Nicaragua, Panama,   disruption  affects trade   Colombia- Ecuador,
          Caribbean     El Salvador, Guatemala  Honduras, Belize, Cuba,   and increases costs    factories owned by
                                         Rest of the Caribbean                                     multinationals
                                                                Diversification of
          Although there is a common language (Spanish) uniting all 33   suppliers/origins
          countries (except for Brazil, where they speak Portuguese),   China: reduced
          there are significant differences in their eating and purchasing   dependence
          habits. Tuna is no exception,  as Latin American consumers   Tariffs/ protectionism     Brazil, Costa Rica,
          have various ways of consuming it at different occasions,  and                            Colombia
          even according to the time of the  year (Lent and Easter).   Non-tariff barriers         Ecuador, Brazil
          However, for the purpose of our study, we can separate them   Robotisation of factories
          into heavy and light users (Table 2). A common way of doing   Oil prices: historic low  Good for fishing fleets
          this is using 1kg a year per capita as the benchmark, which is                          Bad for economy
          approximately six cans per person per year, as follows:                                   (Ecuador)
          Table 2: Main consuming countries                    Table 3b: Post-virus effects on tuna demand/consumers

          Tuna in Latin   Heavy users (more   Light users (less than 1kg/  Factors  Upside  Downside  Potential effect  Countries to
          America      than 1kg/year/  year/person)                                                 lose/gain the
                                                                                                    most
                       person)
                                                                Recession                Trading down of   All countries
                                                                affecting                tuna
          South America  Equador, Chile,   Brazil, Uruguay, Bolivia,   consumption
                       Venezuela (pre-crisis)  Uruguay, Guyana,   Lockdown               Increase in   Brazil, Peru,
                                       Suriname, Paraguay,      effect: more             consumption   Argentina
                                       Colombia                 meals at home            per capita
                                                                Home office              Convenience   Brazil, Colombia,
          Central America   Mexico, Costa Rica,   Nicaragua, Guatemala,   (remote work)  products: ready   Argentina
          & Caribbean  Panama          Honduras, Belize,  Cuba,                          to eat salads/
                                                                                         snacks/packs
                                       Rest of Caribbean
                                                                Online                   Rise in retail   Brazil, Peru,
                                                                shopping                 sales/ HORECA   Colombia,
                                                                                         decrease   Argentina
          Now that we have divided the Latin American countries into   Products with     Increased sales,   Brazil, Peru,
          clusters of producers vis a vis consumers as in Tables 1 and 2,   longer shelf life    more multipacks  Colombia,
                                                                                                    Argentina
                                                                (e.g. canned
                                                                                         options
          by looking at the predicted impact of Covid -19,  we can infer   food)
          which of these countries  may eventually “benefit” from the   Increased        Trading up of   Brazil, Colombia
          unfolding situation. On the supply side, we can select  among   demand for     tuna
                                                                food which is
          the  effects  mentioned,  the  upsides  and  downsides  for  the   traceable/”safe”
          tuna producing countries in a post-virus situation.  The next   Perceptionas   Trading up of   Brazil, Colombia
          task  is identifying  the countries that are likely to be most   healthier food  tuna
          affected (Table 3a).                                  Sustainability as        Trading up of   Brazil, Colombia
                                                                flagship for top
                                                                                         tuna
                                                                brands
          From  the  demand  side  (i.e.  the  consumers),  by  thinking   Decreased     Decrease in solid  Mexico, Brazil,
          about the upside effects, we can predict the factors which   purchasing        tuna/increase   Colombia,
          can bring out an increase in tuna  intake through time, and   power for        in flake/chunk   Argentina
                                                                                         tuna options
                                                                middle income
          those causing consumers to acquire new habits and uses. On   classes
          the downside, a possible move to cheaper, lower quality tuna
          may occur.  We then identify the countries that have more to   Opinion: Ecuador is facing a “perfect storm”- among all
                                                                the tuna producers, it will be the hardest hit country by
          “gain” from the virus crisis (Table 3b).              Covid-19 in the Latin American region.


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