1. TITLE: COSTA RICA: AQUACHILE ACQUISITION BOOSTS TILAPIA OUTPUT ACCESSION NUMBER: 076567 SECTION: Company Profiles (29), Aquaculture (15), Effect on Future Commodity Supply (3), Exports (11), Domestic Trade (24). COMMODITY: FRESHWATER. SPECIES: TILAPIA. PRODUCTS: FRESH. COUNTRY: COSTA RICA, CENTRAL AMERICA, CHILE, SOUTH AMERICA. SOURCE: WORLDFISH REPORT - 2008-03-13 The Chilean salmon leader, AquaChile, has acquired a tilapia-producing company in Costa Rica, raising its tilapia output by 3 000 tonnes a year. The Chilean company says that tilapia now accounts for 10% of its sales. No financial details were given, but AquaChile revealed that, through its acquisition of El Pelon de la Baruja, its total production will rise by 3 000 tonnes a year from 19 000 to 22 000 - a 15% increase. This association strengthens the position of Grupo ACI in Costa Rica, as well as in the market of tilapia, reports the US web-based publication Seafood.com. AquaChile's general manager, Alfonso Marques de la Plata, said the acquisition also demonstrated the ability of the company to establish alliances with important local producers; thus, supporting its leadership in the aquaculture sector. The acquired company, El Pelon de la Baruja, has more than four years experience in the production of tilapia. Annual sales amount for approximately USD 4.5 million. The company has been a supplier of Grupo ACI since 2005. Now, with this alliance, El Pelon de Baruja will focus solely on the production of tilapia exclusively through Grupo ACI. The new partner of AquaChile is the Gonzalez family, which has control of the group named El Pelon and has an important presence in the agricultural sector; this group is one of the largest producers of cantaloupe in the world, in addition to pineapple and rice. Tilapia business represents a 10% of the total revenue of AquaChile, which is already the largest salmon producer in Chile and third in the world. AquaChile's total revenue in 2007 was USD 483 million and net profit USD 15 million. AquaChile's subsidiary, Grupo ACI, is one of the main marketers of fresh tilapia in the USA, with a total market share of 25%. The company exports 90% of its production to the US; the remaining 10% going into the domestic Costa Rican market. 2. TITLE: WORLD: FAO WARNS OVER POSSIBLE SHARK EXTINCTION IN CENTRAL AMERICAN WATERS ACCESSION NUMBER: 076170 SECTION: Bio Resources (20), Protected Species (25), Landings (9), Price Information (2). COMMODITY: OTHERS. SPECIES: SHARK. PRODUCTS: FIN. COUNTRY: NICARAGUA, CENTRAL AMERICA, COSTA RICA, SPAIN, EUROPE. SOURCE: PRENSA LATINA - 2008-01-28 The Food and Agriculture Organization of the United Nations (UN-FAO) announced that the ongoing exploitation of shark by-catch in Central American waters is decimating the species. The international entity described the practice as one where only shark fins are targetted and cut while the rest of the live animal is tossed back into the sea. The fins are known to fetch high prices on Asian markets. The slump in the lobster and shrimp harvest in the last year further exacerbated the situation as fishers increasingly turned to shark finning, FAO officials state. “According to the experts, some species have already disappeared and others are on the border of extinction. We have not even been able to study these species in our waters, as other more commercially popular species outranked them in terms of research priorities,” explained Luis Enrique Velasquez from the Research Centre for Fisheries and Aquaculture (CIPA), a branch of the Nicaraguan Institute for Fisheries and Aquaculture (INPESCA). The researcher believes the decline in other popular fisheries stocks incited the major fishing companies to demand shark fins for export. These are typically used to prepare soup in Asia. Moreover, neighbouring countries Guatemala, El Salvador and Costa Rica each possess an official shark finning industry, as opposed to Nicaragua where no such authorisation exists. Velasquez particularly advised against further exploitation of the endangered bull shark, a fresh water species that inhabits the waters of Lake Nicaragua o Cocibolca. International experts describe the status of the resource as being “extremely delicate, with some species already endangered,” including the bull, the lemon and hammerhead, Prensa Latina reports. A kilogramme of shark fins in Costa Rica can exact a price of up to US$ 50 - its body meat is only worth US$ 2 per kilogramme. In Asian countries, the commercial value of shark fin per kilogramme can run as high as US$ 700. Environmentalists are especially concerned about Ecuadorian stocks; they insist the impact of shark fin harvesting for trade and export is irreparable, considering the lack of an adequate resource management control system. Oceana, the international organisation dedicated to the conservation and protection of the world’s oceans, last year pointed to Spain as the European country that most heavily impacted the world’s shark population in being behind the kills of more than 350 000 sharks per year. According to FAO data analysed by Oceana, Spain harvested nearly 30 000 tonnes of shark in 2005 and ranked fifth as globe's biggest shark fin producer, first in the EU. 3. TITLE: COSTA RICA: REOPENING OF EU FARMED SHRIMP MARKET ANTICIPATED ACCESSION NUMBER: 075890 SECTION: Aquaculture (15), Trade Regulations (7), Quality Control (22), Exports (11), Imports (12). COMMODITY: SHRIMP. COUNTRY: COSTA RICA, CENTRAL AMERICA, EU, EUROPE. SOURCE: LA NACION - 2007-12-21 Costa Rica’s government is anxiously anticipating a January 2008 visit to be paid by an EU mission of technical inspectors so that it may prove that national waste and lab controls have improved enough to restart shrimp exports to the European body. These had been banned by the EU in early 2007 due to food safety concerns. The Central American nation hopes to resume exports of farmed shrimp to the EU, as 75% of its exports had catered to the European market before the ban, La Nacion reports. Last March, EU authorities blocked the entry of Costa Rican farmed shrimp due to problems traced to defective packing at plants and fish farms there. An inspection carried out by European technicians in 2007 reported faulty waste systems and controls regarding chemical residues used to foment animal health. A lack of laboratories specialised in waste control analysis and final product analysis guaranteeing a safe seafood product were also lacking, the report stated. As a result of the deficiencies detected, the Costa Rican embassy in Brussels, EU headquarters, was notified on 23 March of the EU´s decision to close its market to Costa Rican seafood exports. According to data supplied by the Foreign Commerce Promotions (PROCOMER), Costa Rica exported 2 000 tonnes of shrimp in 2005. Last year, export volumes fell to 1 166 tonnes with this year’s volume expected to match that of 2006. Entrepreneurs managed to sell 1 000 tonnes of shrimp to the USA and Mexico in 2007. Producers emphasise that they have lost nearly US$ 2 million as a result of the EU ban -- a kilo of shrimp costs nearly US$ 2 less in these markets as opposed to what it would cost in the EU. The Costa Rican shrimp industry has responded to the situation by demanding that the National Service for Animal Health (SENASA) implement measures that would standardise the industry to EU requirements. The head of Ministry of Agriculture and Livestock (MAG), Javier Flores, confirmed that after much effort, the EU inspection visit will take place in early 2008. It is expected that all requirements will be fulfilled enough to have the EU reopen its market to Costa Rican farmed shrimp exports soon after the visit. 4. TITLE: COSTA RICA: SHRIMP EXPORTS TO EU MAY BE RESUMED IN 2008 ACCESSION NUMBER: 075842 SECTION: Exports (11), Imports (12), Trade Regulations (7), Quality Control (22), Aquaculture (15), Production (10). COMMODITY: SHRIMP. COUNTRY: COSTA RICA, CENTRAL AMERICA, EU, EUROPE. SOURCE: LA NACION (COSTA RICA)/ESMERK - 2007-12-20 After these exports were suspended in March 2007, Costa Rica expects to resume exports of farmed shrimp to the EU from the first months of 2008. These hopes are based on the fact that a mission of inspectors from the EU are expected to arrive in the country in January 2008. As such, the country aims to prove that it has improved the management of waste and residues in shrimp farms and shrimp packaging plants. Total exports of farmed shrimp reached 1 166 tonnes in 2006. Usually, some 75% of local farmed shrimp is exported to the EU. However, due to the EU suspension, local shrimp farmers have managed to export around 1 000 tonnes so far in 2007, mostly to the Mexican and USA markets. 5. TITLE: COSTA RICA: SHRIMP EXPORTS TO EU REMAIN UNCERTAIN ACCESSION NUMBER: 075124 SECTION: Trade Regulations (7), Exports (11), Imports (12), Quality Control (22). COMMODITY: FRESHWATER, SHRIMP. SPECIES: TILAPIA. COUNTRY: COSTA RICA, CENTRAL AMERICA, EU, EUROPE. SOURCE: LA NACION (COSTA RICA)/ESMERK - 2007-10-06 Uncertainty continues to surround exports of farmed shrimp from Costa Rica, as there is no indication that the EU will reopen its borders to this species in the short term. The EU prohibited imports of local farmed shrimp and tilapia fish skin from the Central American country on 23 March 2007, due to alleged problems in the management of waste and residues in shrimp farms and packaging facilities. 6. TITLE: COSTA RICA: PROJECT STOPPED DUE TO ENVIRONMENTAL IMPACT ACCESSION NUMBER: 074948 SECTION: Aquaculture (15), Environment (21), Company Profiles (29), Bio Resources (20), Innovations (26). COMMODITY: TUNA. COUNTRY: COSTA RICA, CENTRAL AMERICA. SOURCE: INFOFISH - 2007-09-03 An official source informed that the Constitutional Court of Costa Rica ordered the construction work on a project on tuna farms in the Pacific Ocean to halt because they had doubts of the real environmental impact of the project. The Court ordered the Environmental Technical Secretary (SETENA) from the Environment Ministry to clarify what would be the real environmental impact of the project by the company Granjas Atuneras del Golfito SA. Studies to know where the metabolic waste of the farms would go must be performed. On one side, the company assured under sworn statement that the zone has “dispersing” characteristics; the tuna waste would go out of the Dulce Gulf, a place with high natural richness nearby the farm. However, an environmental impact study done by the same company and backed by SETENA showed that currents are slow, and the waste would remain inside the Gulf. Environmental organizations and neighbours of the area filed an appeal some time ago. After the recent court decision they showed their satisfaction and repeated their concern that the waste from the farms will remain inside the Gulf and affect marine species such as turtles, sharks and dolphins. Environmentalists showed another concern, that in the Southern Pacific region of the country there is over-exploitation of yellowfin tuna, and in their opinion the farm would worsen this problem. 7. TITLE: CENTRAL AMERICA: CALVO AIMS FOR EXPANSION ACCESSION NUMBER: 074949 SECTION: Company Profiles (29), Production (10), Effect on Future Commodity Supply (3). COMMODITY: GENERAL, TUNA. PRODUCTS: CANNED, FRESH. COUNTRY: EL SALVADOR, CENTRAL AMERICA, COSTA RICA, GUATEMALA. SOURCE: INFOFISH - 2007-09-03 The Spanish company Grupo Calvo is aiming to expand its businesses in Central America and the USA. It actually directs 90% of the production done in El Salvador to the European market, mainly Spain. Grupo Calvo expects to reach a record level of sales of US$ 80 million. According to the firm Sardimar, the expansion of the company in Central America could be slow because the market in those countries is highly concentrated, with few labels leading in the markets. As part of the strategy, Grupo Calvo is studying the possibility of moving its factories to other countries. In Central America, the main exporters of tuna, both canned and fresh, are Costa Rica, El Salvador and Guatemala exporting over US$ 91 million in 2006. 8. TITLE: EU: FOOD AND VETERINARY OFICE REPORTS ON INSPECTION MISSION TO COSTA RICA ACCESSION NUMBER: 074880 SECTION: Trade Regulations (7), Quality Control (22), Imports (12), Health Aspects (32). COMMODITY: GENERAL. COUNTRY: COSTA RICA, CENTRAL AMERICA, EU, EUROPE. SOURCE: FISHFILESLITE - 2007-08-01 The Food and Veterinary office of DG SANCO published a report on a mission to Costa Rica regarding the health conditions for the export of fishery products to the EU, which took place in January 2007. The mission found discrepancies in the lists of approved establishments, and lack of consistencies in the legislative requirements when compared to EC regulations. Inspectors had limited technical knowledge, and follow up and application of sanctions for non-compliance was weak. Despite the provision of guarantees following an earlier mission, a residue monitoring programme for aquaculture products had not been implemented. There were non-conformities found in labeling and certification and there was a lack of official control in relation to heavy metals. Overall the mission concluded that the conditions could not be regarded as equivalent, and DG SANCO was recommended to demand an action plan of corrective actions. 9. TITLE: COSTA RICA: SHRIMP EXPORTERS PROFITS FALL AS EUROPEAN MARKET CLOSES ITS DOORS ACCESSION NUMBER: 074581 SECTION: Exports (11), Trade Regulations (7), Quality Control (22). COMMODITY: SHRIMP. COUNTRY: COSTA RICA, CENTRAL AMERICA, EU, EUROPE, USA. SOURCE: LA NACION - 2007-07-25 Costa Rican shrimp entrepreneurs deem nearly US$ 2 million will be lost due to reduced prices of nearly one thousand tonnes of products that will not be able to be sold in the EU markets and must therefore be sold in the USA. Since last March, EU authorities prevented farmed shrimp and tilapia skins originating from Costa Rica to enter the community because of problems detected in waste management of some of the products used in packing plants and in at some Costa Rican fishfarming tanks. Specifically, the European inspectors discovered metallic residue in inspected products, implying that the aquaculture products no longer comply with EU market requirements. Alexander Chan, representative of the products said that nearly one thousand tonnes of shrimp have entered the US market which was originally destined for the EU. The huge inconvenience which they face is that the US market pays US$ 2 less per kilogramme of shrimp than Europe. According to data supplied by the Foreign Trade Promotion (PROCOMER), in 2005, Costa Rica exported 2 000 tonnes of shrimp and last year that volume decreased to 1 166 tonnes. Approximately 1 200 directly related jobs in economically depressed areas, such as in the neighbouring regions of the Gulf of Nicoya, and in Parrita and Quepos, depend on the shrimp industry, which supplies nearly 7 000 indirect jobs, according to a report published by the Nacion. The Director of the National Service for Animal Health, Gerardo Vicente, assured they were working diligently towards a quick recovery of the European market opening their doors to Costa Rican products. 10. TITLE: COSTA RICA: NEW DE LA VILLA TUNA PRODUCTS LAUNCHED ACCESSION NUMBER: 074358 SECTION: Company Profiles (29), Product Development (5), Price Information (2). COMMODITY: TUNA. PRODUCTS: CANNED, LOIN. COUNTRY: COSTA RICA, CENTRAL AMERICA. SOURCE: LA NACION (COSTA RICA)/ESMERK - 2007-07-02 Costa Rican company Distribuidora Villa Quesada has introduced new products as part of its De La Villa canned tuna range into the local market. The new products include tuna loins, tuna loins in pieces, tuna in pieces and tuna in water. They are available at supermarkets and convenience stores nationwide at prices ranging between C 707 (US$ 1.36/EUR 1.06) and C 914.