GenSan tuna firms hang on despite high diesel price

GENERAL SANTOS CITY, Philippines — Despite reeling from high fuel prices, tuna fishing and cannery operations here continue to operate in order to meet high export demand, it was gathered Monday. Richie Rich T. Tan, vice-president for operations of the San Andres Fishing Industries, Inc., said that tuna fishing operators in the city, dubbed the "Tuna Capital of the Philippines", have not suspended operations despite the high cost of fuel. Fishing operators in Zamboanga City, the country’s center for canned sardines, stopped their operations on Monday last week, saying they could no longer afford diesel prices if fish prices were not raised to P25 per kilogram from the prevailing price of less than P22/kg. Canneries in Zamboanga, however, said they could afford a higher price of only P23/kg. Focus on efficiency Mr. Tan said that fishing operators in this city, where six of the country’s eight tuna canneries are located, are smarting from the high fuel prices, with some expecting earnings to dip as much as 50% since diesel prices have risen to nearly P60 per liter from P40/liter a year ago. "Now, it’s about efficiency to curb the impact of high oil prices. We don’t anymore send carrier boats to fetch pelagic tuna in the sea if the catches are not viable; unlike before, when we sent carrier vessels even if there’s no sure catch," he said in an interview. Although supply of tuna for cannery processing from local producers has become tight, there is no crisis yet since producers from Taiwan and Korea are filling in the gap, Mr. Tan said. But he also noted that Jakarta has banned the export of tuna caught in its territory, unless they are semi-processed there. The government is working to lift the ban in Indonesia, which is a rich source of tuna stocks for the Philippine tuna industry. Miguel B. Lamberte, Philippine Fisheries Development Authority manager here, earlier said the skyrocketing fuel prices have taken its toll on the volume of fish landing at the General Santos City Fish Port Complex. He said that operators resorted to fewer fishing expeditions in the past months due to high fuel prices. Ricardo B. Magnayon, Jr., plant manager of General Tuna Corp., which manufactures the Century-brand canned tuna, said their operations are unhampered since they have tuna suppliers from abroad. "Also, our local tuna suppliers are meeting their commitment," he said in a separate phone interview. — Romer S. Sarmiento, BusinessWorld