Plummeting Prices: Continuous Decline in Tuna Prices in Japan

In recent developments, the wholesale prices of large frozen bigeye tuna (weighing over 40 kilograms) at Tokyo's Toyosu Market have been experiencing a sustained downward trend. This decline is attributed to an increase in market supply and the need for retailers to make space for upcoming farmed tuna in April. 

The wholesale price of large frozen bigeye tuna at Toyosu Market has plummeted from 1,104 Japanese yen per kilogram in February to 1,033 Japanese yen per kilogram in March, marking a significant 12% decrease compared to the same period last year.

The continuous decline in prices can be primarily attributed to the surge in market supply. To accommodate the arrival of farmed tuna in April, retailers have been actively selling off their stocks of frozen bigeye tuna from ultra-low temperature cold storage facilities.

In March, approximately 11,371 large frozen bigeye tuna were introduced into the market, reflecting a year-on-year increase of 6% and a month-on-month increase of 16%. This surge in supply has revived the issue of fishing vessels waiting to unload their catch. Despite some relief since October of last year, the unloading of frozen tuna shipments, which began in February this year, still remains unfinished. Additionally, over 20,000 tons of frozen tuna are expected to arrive at the port in March and April.

Furthermore, retailers anticipate a rise in overseas refrigerated container shipments due to disrupted shipping schedules caused by prolonged suspensions last year. The inability to transport containers may surpass the levels witnessed last year and contribute to longer waiting times for vessels, further exacerbating the situation.

April typically sees a peak in the import of farmed bluefin tuna fillets from the Mediterranean. Consequently, retailers need to ensure sufficient cold storage inventory space. If vessel wait times remain on par with last year, next year's shipping plans will be further impacted, resulting in imbalanced arrival times at the ports.

In the coming months, the Japanese market will witness an influx of fresh tuna, including the commencement of the fishing season for fresh skipjack tuna. To alleviate the issue of excess inventory, retailers will need to stimulate the consumption of frozen bigeye tuna further.

Simultaneously, in March, the market saw a 48% increase in the trading of fresh imported bluefin tuna caught by Korean purse seine fishing vessels compared to the same period last year. Additionally, 148 fresh bluefin tuna from New Zealand were also available in the market, showing a 2.3-fold increase compared to the same period last year.

In contrast, the domestic market for fresh bluefin tuna caught by Japanese fishermen performed poorly in March. Large tuna weighing over 100 kilograms from the Nagasaki region witnessed a 75% decline compared to the same period last year. As a result, the average auction price for fresh bluefin tuna increased, reaching 6,383 Japanese yen per kilogram for large tuna (a 2.4% year-on-year growth) and 5,113 Japanese yen per kilogram for medium-sized tuna weighing between 40 and 99 kilograms (a 13.2% year-on-year growth).

The continuous decline in the wholesale prices of large frozen bigeye tuna at Tokyo's Toyosu Market can be attributed to increased market supply and the need to create space for upcoming farmed tuna. Factors such as heightened vessel waiting times and a surge in the import of fresh bluefin tuna from overseas further contribute to the price drop. As the Japanese market prepares for an increase in fresh tuna supply, retailers will need to strategize to boost the consumption of frozen bigeye tuna and manage the balance between inventory and demand.