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Global War on Drugs or Tuna

Global War on Drugs or Tuna

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Published by: gyanpratap on Jan 17, 2011
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GLOBAL WAR ON DRUGS OR TUNA?

GLOBAL WAR ON DRUGS OR TUNA???

‡ Social boycott ‡ Increase in transportation costs led to reduction in exports ‡ ATP Act angered ASEAN Members .Snapshot ‡ Difference of opinion between the two competitors.

Discuss the different environmental factors having an impact on the tuna processing industry. .1.

2. How can international distribution strategy provide a competitive advantage? Which of the three market players has the best distribution strategy? .

International Distribution Strategy .

In what ways are international trade treaties having an impact on the tuna canning industry? .3.

Tuna ‡ Lowering tariffs on Ecuadorian Tuna as part of an effort to revive ATP Act ‡ Reductions were intended to coax the Andean Countries out of the drugs business ‡ Resulted in a worldwide battle for and against tuna tariffs .

Tuna Industry & the canning process ‡ Began in USA in 1903 ‡ Has spread to offshore areas due to low wages and their proximity to fishing areas ‡ Legislative activity by 1980¶s to protect friendly mammals ‡ Increasing low cost imports led to closure ‡ Eastern Pacific Region became a favored source for tuna production ‡ Shrinkage of the industry in the continental USA .

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Distribution of exports of canned tuna. . January-November 2010.

meaty. with or without salt ‡ Loins are light.Loining Technology ‡ Located near fishing docks ‡ Subjected to a process of thawing. Canning process gain a significant amount of savings . edible part of the fish ‡ Weighs les than half of a whole fish ‡ Results in reduction of freight costs ‡ Accounts fro 60-80% of the cost of labor ‡ Thus. butchering and precooking ‡ Cleaning and separating red and white meat ‡ Packed in water or oil.

Fueling Life¶s Everyday Adventures with Exceptional Seafood MARKET LEADER.STARKIST .

Tuna Market PlayersStarKist ‡ A leading producer. distributor and marketer of shelf-stable seafood products in the United States ‡ The first brand to introduce the StarKist Flavor Fresh Pouch. and. a line of lightly marinated tuna. StarKist Tuna Creations. a dolphin-safe policy .

Distribution Strategy ‡ Locating close to the market ‡ Operations in American Samoa and Ecuador ‡ Saves the cost of labor ‡ Enjoying lower transportation costs due to regional proximity to the market .

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Bumble Bee ‡ Founded by a handful of dedicated canners back in 1899 ‡ Employs over 1.000 hard working men and women ‡ Transformed its plants from labor intensive production lines to automated lines ‡ Assured it means premium quality seafood .Tuna Market Players.

Distribution Strategy ‡ Locating close to the market ‡ Operations in American Samoa and Ecuador ‡ Saves the cost of labor ‡ Enjoying lower transportation costs due to regional proximity to the market .

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Chicken of the sea ‡ Fishermen referred to the white albacore tuna as ³Chicken of the Sea´ ‡ Synonymous with health. nutrition and convenience ‡ Ensuring a healthy supply of seafood for future generations ‡ The protection of dolphin are imperative ‡ Supports high standards of stewardship and management .Tuna Market Players.

Market Share 16% 44% 17% StarKist BumbleBee Chicken of the sea 23% Others .

ASEAN Members joining the battle ‡ Members face tariffs as high as 35% on Tuna exports ‡ Exports to US growing to 600% since lower transportation costs ‡ Low cost of labor in Ecuadorian Region .

Proposal ‡ Lower Tariff Rate ‡ Low Transportation Costs ‡ Government participation in trade like administrative guidance ‡ Similar Tariff/ raise the tariff of import .

THANK YOU .

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