No Fish: Calvo Shut Down Its Cannery El Salvadorff

The Spanish Group Calvo announced the temporary shutdown of its factory in El Salvador last month, after the 40 day tuna ban finalized on September 11^th.

This decision is due to the shortage on tuna supply. However, Calvo is determined to maintain all its employees and resume operations by mid October. Therefore, the processing plant located in Punta Gorda, La Union has suspended its activities until tuna supply recovers.

According to the General Manager of Calvo Group, Mr. Miguel Angel Peñalva, “Since September 16th all the activities at the processing facilities have been suspended. The company will comply with Salvadorian legislation and maintain its employees while waiting to receive sufficient raw material to resume normal activities”.

The shortage of tuna catches is originated due to the 40-day ban, implemented by the Inter American Commission for Tropical Tuna (IATTC), the organism which regulates tuna fishery in the Eastern Pacific Ocean, affecting 15 countries.

The chief of the Fishery Division of Cendepesca (National Center for the Development of Fisheries and Aquaculture), Mrs. S. Salaverria, indicated that the IATTC ban refrained about 200 tuna vessels with flags from Colombia, Ecuador, Guatemala, Honduras, Panama, Peru, Venezuela and El Salvador, from fishing tuna in the Eastern Pacific Ocean . This represents 60% of the tuna fleet operating in these waters and includes three vessels operating under Salvadorian flag.

Mrs. Salaverria indicated that the IATTC ban was not enforced due to a possible overexploitation of the species, but rather as a preventive measure to enable the recovery of the species’ resources.

Two of these three vessels with Salvadorian flag have the capacity to carry 11,250 metric tons; the third can transport 8,000 metric tons.

According to Mrs. Salaveria, El Salvador has not yet taken advantage of its total quota.  There are still licenses to operate an additional 11,112 m3, however there is insufficient cargo capacity. Therefore, the quota will be auctioned and the Salvadorian flag may be granted to 2 or 3 vessels. She also informed that the IATTC had rejected El Salvador’s request, last July,  to extend the tuna quota.

The Grupo Calvo employs 800 workers at the plant in El Salvador. However until the tuna supply improves, only the administrative personnel will be working to keep the facilities ready for the renewal of its activities once the tuna vessels are operational and the supply of raw material comes in. 

Mr. Peñalva also reiterated that this current situation does not affect the company’s growth, as it is exporting 90% of its production to Europe, meanwhile the rest is sent to Center America, Libya and Egypt.

This tuna industry is new in El Salvador. Its development was started in 2002 and it is expected to be able to generate more than USD 55 million in 2006 thanks to tuna and fish meal exports, this last product mainly imported by China.