The New Zealand fishing company Sealord has pulled out of a joint venture in the Cook Islands after less than a year because of fish supply worries.
Sealord said in a statement it had been looking for year round supply for export.
“The fishery has proved to be seasonal and won't meet our objective of consistent year round supply, so we have decided to exit the shareholding,†Sealord said.
According to the Cook Island News, April to November last year was a bumper season for fishermen in Cook Island waters, but catches dried up in November.
Sealord was a marketing and sales partner in the venture and has offered to keep working with Cook Islands Fish Exports in a marketing capacity.
Fellow New Zealand firm, Hawkes Bay Fisheries, also offloaded its stake in Cook Islands Fish Exports.
The third partner in the venture, Cook Islands businessman Brett Porter, bought out the New Zealand firms and upped his holding in the fishery from a 50 per cent to a 100 per cent stake.
Cook Islands Fish Exports opened its plant in July last year, which, unknown to the owners, was half way through the local fishing season.
â€We realised in November when the fish started coming it was the end of the season. We should have actually closed the plant then for the next three to four months,†Mr. Porter said. “We understand the fishery now. We have some good fishermen, we have the capability of processing the whole season's fish and we intend to do that,†he said.
Mr. Porter intends to keep the $4 million plant running, despite the exit of his New Zealand partners. He anticipates the company will catch and process about 2000 tons of fish, mainly tuna, for export.
He said he was in talks with the Cook Islands Government to secure funding for the plant. “They have offered to look at investing in the plant, or taking a shareholding in the plant to ensure that we do stay open and remain viable.â€
He said the size of any potential investment by the government had not yet been settled.