1. Imported Carbon Monoxide (CO) Treated Tunas and its Impact on the Consumers and Fisheries Industry in Hawaii Minling Pan NOAA Fisheries Service, Pacific Islands Fisheries Science Center Wuyang Hu University of Kentucky North American Association of Fisheries Economists (NAAFE) 2009 Forum Newport, RI, May 17-20, 2009

2. Research Background Hawaii residents have traditionally consumed substantial amounts of fresh bigeye and yellowfin tunas. Hawaii residents have traditionally consumed substantial amounts of fresh bigeye and yellowfin tunas. Typically, the local demand for tuna is met by local commercial fisheries. Typically, the local demand for tuna is met by local commercial fisheries. The end products for consumption are known as sashimi and ahi poke (bite-sized pieces of raw tunas mixed with seasoning). Some people call ahi poke “ raw tuna salad” The end products for consumption are known as sashimi and ahi poke (bite-sized pieces of raw tunas mixed with seasoning). Some people call ahi poke “ raw tuna salad”

3. Ahi Poke (Raw Tuna Salad) Sashimi

4. Direct Tuna Imports to Hawaii Retail market observations suggest a growing emergence of imported tunas Retail market observations suggest a growing emergence of imported tunas However, no increase trends of direct imports to Hawaii; The data show that imports were about 10% of locally caught tunas However, no increase trends of direct imports to Hawaii; The data show that imports were about 10% of locally caught tunas

5. Fresh Tunas Exports from Hawaii Exports to Japan increased in recent years Exports to Japan increased in recent years Exports to U.S. mainland, no data Exports to U.S. mainland, no data

6. Imported Tunas to Hawaii Product from – previously frozen, treated with carbon monoxide (CO) Product from – previously frozen, treated with carbon monoxide (CO) Transshipped to Hawaii from U.S. mainland Transshipped to Hawaii from U.S. mainland A box with label “Frozen tuna, treated with carbon monoxide” to promote color retention”, packed in CA A box with label “Frozen tuna, treated with carbon monoxide” to promote color retention”, packed in CA Mostly sold as ahi poke in retail market in Hawaii Mostly sold as ahi poke in retail market in Hawaii

7. What is CO Treated Tuna Cryogenic freezing Cryogenic freezing Low temperature (- 196°C ~ -78°C ) to preserve tuna for fresh use Low temperature (- 196°C ~ -78°C ) to preserve tuna for fresh use High cost High cost Before freezing, treated with CO Before freezing, treated with CO CO can arrest the oxidization process and allows the fish to retain its fresh red color for days after thawing from frozen CO can arrest the oxidization process and allows the fish to retain its fresh red color for days after thawing from frozen Invented in 1996 and patent in 1999, called “Tasteless Smoke” Invented in 1996 and patent in 1999, called “Tasteless Smoke” Low cost and no seasonal limitation Low cost and no seasonal limitation Concerns over food safety and fish quality associated with carbon monoxide treated tuna Concerns over food safety and fish quality associated with carbon monoxide treated tuna Evidence of the increase trend into U.S. Evidence of the increase trend into U.S. Frozen tuna into LA port Frozen tuna into LA port Imports from Indonesia, Philippines, & Vietnam (source of CO treated tuna Imports from Indonesia, Philippines, & Vietnam (source of CO treated tuna

8. Frozen Yellowfin and Bigeye Tuna Imported into Los Angeles (1989–2007)

9. Frozen Tuna Imports into U.S. from Indonesia, Philippines, & Vietnam (1989–2007)

10. Impacts to the Industry Bigeye price declined from $5.30/lb 1991 to $3:30/lb 2007 Bigeye price declined from $5.30/lb 1991 to $3:30/lb 2007 Landing increased from 3 to 13 million lbs Landing increased from 3 to 13 million lbs Total imports? Total imports? (U.S. mainland ~ Foreign) (U.S. mainland ~ Foreign) Total exports? Total exports? (U.S. mainland + Japan) (U.S. mainland + Japan) Total consumption? Total consumption? (U.S. mainland + Japan) (U.S. mainland + Japan)

11. Pilot Study on the Retail Market CO treated tunas price is lower $2-3 per pound (compared to locally fresh) CO treated tunas price is lower $2-3 per pound (compared to locally fresh) Noticeably larger volumes of previously frozen & CO treated ahi poke available in seafood display windows compared to fresh ahi poke Noticeably larger volumes of previously frozen & CO treated ahi poke available in seafood display windows compared to fresh ahi poke tunas – inflated demand Consumers may not be aware of the existing of the CO treated tunas – inflated demand Very small difference in the appearance Very small difference in the appearance Advertised as “freshly made” Advertised as “freshly made” To conduct a conjoint study To conduct a conjoint study Quantify consumers’ preference for the treated tuna vs. locally caught tuna Quantify consumers’ preference for the treated tuna vs. locally caught tuna Understand consumer behavior changes given full knowledge about the product Understand consumer behavior changes given full knowledge about the product

12. Consumer Preference (Conjoint) Study Survey design – two parts Survey design – two parts Consumers’ knowledge/awareness on the CO treated tuna in the retail market Consumers’ knowledge/awareness on the CO treated tuna in the retail market Conjoint study – measure consumers’ value on different attributes of the ahi poke (ongoing study) Conjoint study – measure consumers’ value on different attributes of the ahi poke (ongoing study) Focus group Focus group Testing the survey Testing the survey Fieldwork (~400 interviews) Fieldwork (~400 interviews) Farmers markets (50%) Farmers markets (50%) Supper markets (50%) Supper markets (50%)

13. Survey Results – Importance of the attributes Previously frozen (%) Origin (%) Treatment (CO treated) (%) Color (%) Recipe (%) Price (%) Very important 515567655150 Somewhat Important 373220293342 Not Important 91165148 Don't Know 227120

14. Have You ever Purchased TS or CO Treated Ahi Poke? Have You ever Purchased TS or CO Treated Ahi Poke? AnswersFreq. (N)Percent Yes10625% No15837% Don't know16138% Total425100%

15. Survey Results Are you aware of TS or CO treated ahi poke? Are you aware of Are you aware of Actual purchasing behavior Actual purchasing behavior AnswerN% Yes19847% No22253% Total420100% 47%>$6.99 23%~$7-8.99 31%>$9.00 36%>$6.99 24%~$7-8.99 40%>$9.00 Yes No

16. Primary Factor to Determine Freshness Freq.Percent Color14835% Taste10525% Knowing its never been frozen328% Knowing its locally-caught409% No difference4912% Other4912% Total423100%

17. Which One Looks Better? Cube (before marinate) Poke (after marinate) Which one looks better to you? N%N% Card 1 (treated with CO)21453%17142% Card 2 (Fresh)11128%14937% Both are good72%7 Neither7118%7919%

18. Preliminary Results & Conclusions The demand of CO treated tunas may have been inflated due to consumers’ unawareness The demand of CO treated tunas may have been inflated due to consumers’ unawareness More than 50% of consumers were not aware of the existence of CO treated tunas More than 50% of consumers were not aware of the existence of CO treated tunas Color played an important role in determining freshness. However, CO treatment made the product look fresh/fresher Color played an important role in determining freshness. However, CO treatment made the product look fresh/fresher The ongoing conjoint analysis is expected to quantify the marginal value of various attributes of the tuna products, such treated vs. no-treated, imported vs. local, and previously frozen vs. fresh The ongoing conjoint analysis is expected to quantify the marginal value of various attributes of the tuna products, such treated vs. no-treated, imported vs. local, and previously frozen vs. fresh