The export competitiveness of the tuna industry in Thailand

Abstract

PurposeThailand dominates world exports of canned tuna with a market share of around 40 percent which is at least four times higher than any other exporter. The aim of this paper is to examine the export competitiveness of the canned tuna export industry in Thailand for 1996‐2006.Design/methodology/approachThe paper uses a revealed comparative advantage (RCA) approach and calculates RCA indices for both major exporters in the world market and competitors in individual export markets.FindingsThailand has comparative advantages in all major export markets; these have remained stable in the USA, the Middle East, Japan and Canada but have fallen substantially in Australia.Practical implicationsFirst, Thailand urgently needs to consider tuna farming. Second, smaller processing and fishing companies should merge to increase profit margins and market share. Third, Thailand should engage in effective trade negotiations with importers. Fourth, stock management and conservation could be used to support the industry. It is unlikely that current levels of comparative advantage can be maintained because of import tariffs, rules of origin, labour shortages and increasing unskilled labour costs.Social implicationsTuna management and conservation in Thailand could be used to support the sustainability of the industry.Originality/valueBy contrast to Kijboonchoo and Kalayanakupt who find that Thailand's market share declined between 1987‐1998 and revealed comparative advantage fell, these results show that this declining trend has since been arrested.