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DTIS, Volume I - Enhanced Integrated Framework (EIF)

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2005 accounting for almost a quarter of total exports in the first half of the year. Sri<br />

Lanka has remained a significant market (around 13 per cent).<br />

Table 8.5: Main Export Destinations, percentage by value (FOB)<br />

Country 2001 2002 2003 2004 2005 (Jan-<br />

Jun)<br />

United States 40.7 38.4 32.3 26.5 1.2<br />

EU, of which: 17.1 14.0 15.7 19.3 24.4<br />

UK 9.0 9.5 9.7 9.8 13.0<br />

Germany 6.1 3.3 3.8 4.9 5.2<br />

Sri Lanka 19.3 15.4 13.6 12.3 13.4<br />

Thailand 8.6 14.6 16.4 23.5 21.2<br />

Japan 4.6 11.5 10.3 11.7 24.5<br />

Source: Calculated from Statistical Yearbook of Maldives 2004 and Customs Services<br />

The bulk of the frozen products (tuna) are exported to the Thai processing industry,<br />

where economies of scale allow more profitable production of canned tuna destined in<br />

particular for the EU and US markets. The EU is the main market for canned tuna from<br />

the Maldives, of which the UK and Germany are the most important markets, followed<br />

by France, the Netherlands and Italy. Sri Lanka takes mostly dried and salted fish<br />

products, with only little value added accruing to the Maldives. But these intermediaries<br />

are turned into more attractive fish oils etc. in Sri Lanka. The latter process could just as<br />

easily take place in the Maldives. In fact, the level of fish manufacturing is lagging<br />

behind and product development is receiving very little attention and support. The<br />

government has yet to take the lead in promoting product development or new<br />

sustainable fishing technologies for example, for reef fish.<br />

For the foreseeable future, merchandise exports from Maldives are likely to remain based<br />

on fish products. The direction of exports will therefore be towards the future main fish<br />

product importing markets. In this regard the EU is the leading worldwide importer, with<br />

imports of eight million tonnes in 2001 28 . It is a particularly attractive market for<br />

suppliers providing value added products such as fresh on ice products, reef or deepwater<br />

fish fillets and tuna loins. The EU market for whole fish is limited. With a growth<br />

rate of 3 – 4 per cent per annum, the EU market is likely to remain the most important<br />

destination for Maldivian seafood exporters as the products demanded are canned and<br />

frozen loins of yellow fin tuna, and reef fish such as snappers and groupers, which are<br />

available in the Maldivian waters. However, to gain and extend market share in the EU<br />

will require that the Maldivian industry export value added products to meet the demand<br />

for ready meal fish products.<br />

Japan on the other hand remains focused on frozen whole fish for its sushi and sashimi<br />

markets. Although growth rates at 4 - 5 per cent per annum are slightly higher than in the<br />

EU, whole fish products in demand in Japan are based on blue fin and big eye tuna,<br />

which are rarely caught in Maldivian waters.<br />

28 The most recent year where comparable data are available according to the leading seafood market<br />

intelligence organizations: EUROFISH Magazine (part of the FAO Globefish network) and Seafood<br />

International – a leading commercial magazine.<br />

125

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