Alliance Tuna bullish on Indonesian unit, salmon venture

Alliance Tuna International, Inc. expects both revenues and net income to grow by nearly a third this year, as expansion activities bear fruit. The company plans to boost production at Indonesian unit PT International Alliance Food Indonesia to 100 metric tons (MT) from just 30 MT a day, Alliance Tuna Chief Operating Officer Teresita S. Ladanga said in an interview on Tuesay. “In the last six months of 2009, we were only operating at one shift and at a capacity of 30 metric tons a day. We are going to do some upgrades to improve the capacity to 100 MT although we might just be operating it at 60 MT per day," she said. Ladanga said the Indonesian subsidiary beat expectations last year, making Alliance Tuna optimistic the unit would provide a steady stream of profit this year. PT International Alliance Food Indonesia, which exports tuna to the US, is looking at expanding to Europe. Ladanga was also optimistic on an investment in salmon producer Prime Foods New Zealand made last year. Joint venture company Big Glory Bay Salmon Processing, Inc. will start building a plant in General Santos City this year. The investments in Prime Foods and the salmon plant mark the firm’s first attempt to venture outside the tuna business. Alliance Tuna expects commercial operations of Big Glory Bay to start in August. The new unit, Ladanga said, plans to export tuna to Australia, Singapore and the Middle East this year. “We are optimistic of the company’s growth this year. We expect a full-year benefit from the Indonesian operation this year and it, along with Prime Foods and Big Glory Bay, can easily contribute a 30-percent increase both for Alliance Tuna’s [sales] and [income]," she said. Alliance Tuna has yet to announce its 2009 profit. Profits went down by a third to $1.81 million in January to September due to lower prices. The canned tuna maker now exports to 55 countries, more than double since the start of operations four years ago. It exports more than three-quarters of its output to Europe. Alliance Tuna also ships tuna to North America, Asia, Africa and South America. This year, Ladanga said, the group plans to increase its market to at least 80 countries. “The vision of the company is to be a regional player and we are doing something about this," she said. Shares of Alliance Tuna shed 6 centavos to finish at P1.50 apiece. — Kristine Jane R. Liu, BusinessWorld