1. Imported Tuna and Impact to Hawaii Fish Market Minling Pan, Ph.D. Timothy Ming Pacific Islands Fisheries Science Center September 29, 2004

2. Research Background Imported tuna has increased recently and competes with local fishing industry (based on industrial observations) Imported tuna has increased recently and competes with local fishing industry (based on industrial observations) …First look at foreign trade to Honolulu …First look at foreign trade to Honolulu

3. Types of Imported Tunas to Honolulu (1989-2003 Average) Data Sources: U.S Customs Direct imports from foreign countries 57% of imported tunas were fresh

4. Fresh Imported Tunas to Honolulu (1989-2003) Among fresh imported tunas, mainly yellowfin & bigeye Declined since 1993 (except 2001 & 2002 went up)

5. Hawaii Tuna Landings (1989-2003)

6. Frozen Imported Tuna to Honolulu (1989-2003) Among frozen tunas, only small % of yellowfin/bigeye, mainly skipjack Imports declined since 1990, only one high year (2001) for yellowfin & bigeye

7. What was causing the increase of imported tunas in local markets? Frozen yellowfin used for poke and sashimi Frozen yellowfin used for poke and sashimi cube (poke) cube (poke) steak or fillet (sashimi) steak or fillet (sashimi) Foreign owned ocean containers ships do not stop in Honolulu (Johnson Act) Foreign owned ocean containers ships do not stop in Honolulu (Johnson Act) Imported tunas transshipped to Honolulu from Los Angeles, and San Francisco through Matson or Sealand container ships Imported tunas transshipped to Honolulu from Los Angeles, and San Francisco through Matson or Sealand container ships

8. Frozen Yellowfin/Bigeye Imports to LA (1989-2003) Imported frozen yellowfin/bigeye increased to LA Up from nearly 0 to 3 million lbs

9. Frozen Yellowfin/Bigeye to SFS Increase from 0 to half million pounds within 5 years

10. Frozen Yellowfin Treated by Tasteless Smoke (TS) The basic ingredient of TS is carbon monoxide (CO) The basic ingredient of TS is carbon monoxide (CO) $0.20/lb for TS treatment $0.20/lb for TS treatment Frozen cube/sashimi steak Frozen cube/sashimi steak Price on Hawaii wholesale market Price on Hawaii wholesale market $3.50/lb for cube $7.00/lb for sashimi steak

11. CO/TS Product History Japan producers began using CO to treat tuna 15 years ago Japan producers began using CO to treat tuna 15 years ago U.S. received first shipment of CO treated tuna in early 90s U.S. received first shipment of CO treated tuna in early 90s 1996 a patent of using CO technique was granted in US 1996 a patent of using CO technique was granted in US filtered-wood-smoke filtered-wood-smoke 1999 a patent for tasteless smoke (TS) claimed by Hawaii International Seafood Inc. was granted 1999 a patent for tasteless smoke (TS) claimed by Hawaii International Seafood Inc. was granted burning an organic, food grade smoking material burning an organic, food grade smoking material smoking in low °C smoking in low °C frozen tuna can stored for one year frozen tuna can stored for one year 2000 USFDA approved TS as generally regarded as safe 2000 USFDA approved TS as generally regarded as safe Tasteless smoke (preservative to promote color retention) Tasteless smoke (preservative to promote color retention) Treated with carbon monoxide (preservative to promote color retention) Treated with carbon monoxide (preservative to promote color retention)

12. Recent Development of CO Treated Seafood 1999 Japan banned the use of CO to treat tuna but allowed it for other seafood 1999 Japan banned the use of CO to treat tuna but allowed it for other seafood Canada and European countries also banned CO treated seafood Canada and European countries also banned CO treated seafood About 20-30 containers (40) of TS treated frozen tuna imported into the US monthly (IntraFish Industry Report, 2003) About 20-30 containers (40) of TS treated frozen tuna imported into the US monthly (IntraFish Industry Report, 2003) 7 – 10 million lbs a year to U.S. 7 – 10 million lbs a year to U.S.

13. Impact to Local Markets Data problem--no official statistics on total imports Data problem--no official statistics on total imports Transshipments Transshipments Harmonized System (HS) code: no clear code for TS treated tuna Harmonized System (HS) code: no clear code for TS treated tuna Consumer ignorance on the TS/CO treated products Consumer ignorance on the TS/CO treated products

14. A PILOT STUDY ON CONSUMER KNOWLEDGE FOR AHI POKE A PILOT STUDY ON CONSUMER KNOWLEDGE FOR AHI POKE

15. BACKGROUND Assumptions 1. Local consumers of ahi poke exhibit an ignorance towards the Tasteless Smoke product – Purchasing TS products without knowing what it is (ambiguous labeling; traditionally, local supply dominates) – The active ingredients as well as the effects of Tasteless Smoke are unknown to local consumers 2. Local consumers value the quality of fresh local ahi over previously frozen Tasteless Smoke treated ahi and are willing to pay a higher price for the local fresh

16. A PILOT STUDY Purpose of this pilot study Purpose of this pilot study To test the assumptions (if further study is needed) To test the assumptions (if further study is needed) To field-test the questionnaires To field-test the questionnaires Method of pilot study Method of pilot study Survey Survey Convenience Sampling Convenience Sampling Sample size of 62 (31 respondents from National Marine Fisheries Services affiliated and 31 respondents non-NMFS affiliated) Sample size of 62 (31 respondents from National Marine Fisheries Services affiliated and 31 respondents non-NMFS affiliated)

17. Retail Market Report How common TS is in our markets Table based on visitations on June 22, 2004

18. Popularity of TS treated Ahi Poke in Local Markets Two dollars difference between TS/CO treated and local fresh Ahi Poke Two dollars difference between TS/CO treated and local fresh Ahi Poke Holiday price is even lower: Ahi Poke $4.99/lb Holiday price is even lower: Ahi Poke $4.99/lb Long shelf life of TS/CO treated Ahi Poke Long shelf life of TS/CO treated Ahi Poke Constant & adjustable supply Constant & adjustable supply Freshly made Freshly made Consumer may not be aware of the differences in the two products Consumer may not be aware of the differences in the two products

19. PRELIMINARY RESULTS OF SURVEY Price is an indicator of the presence of consumption for Tasteless Smoke Ahi Poke PriceFrequency $4.00-$6.9928 $7.00-$10.9926 Varies2 None6 Total62 How Much Do You Pay For Your Ahi Poke? 28 26 2 6 051015202530 $4.00-$6.99 $7.00-$10.99 Varies None Price (Per Pound) Number of Respondents

20. PRELIMINARY RESULTS OF SURVEY About 77% consumers claim that they have not purchased Tasteless Smoke treated products before

21. PRELIMINARY RESULTS OF SURVEY The choice of color in Ahi Poke is a determinant of consumer ignorance for Tasteless Smoke product Color Preference Frequency Watermelon red 19 Different shades of red 24 Brown0 Black0 None20 Total63 What Kind Of Color Do You Look For In Determining Ahi Meat Quality 19 24 00 0 5 10 15 20 25 30 Watermelon redDifferent shades of red BrownBlack Number of Respondents

22. PRELIMINARY RESULTS OF SURVEY Most respondents did not realize that carbon monoxide is an active ingredient of Tasteless Smoke Knowledge ofTS having CO? Frequency Yes15 No47 Total62 Do You Know That the Active Ingredient in TS is CO? 15 47 01020304050 Yes No Number of Respondents

23. PRELIMINARY RESULTS OF SURVEY Knowledge of CO on muscles? Frequency Yes13 No49 Total62 Most respondents did not know that carbon monoxide intensifies the red color of Ahi meat Do You Know How CO Affects Muscle Protein? 13 49 0102030405060 Yes No Number of Respondents

24. CONCLUSIONS Further study is needed to determine the consumer knowledge and preferences for TS versus fresh tunas Improve questionnaire design Proper sampling Conjoint analysis Determining the value people would pay for local fresh or TS/CO treated (previously frozen) Ahi Poke Monitoring Transshipments