Interview With Yemeni Tuna Company Managerff

The fishing industry is a major source of employment for Yemen’s poor, especially those inhabiting coastal areas. Workers in this sector provide for 1.7 million citizens, that is, 8.6 percent of Yemen’s population.

In the following interview, John Williams, General Manager of the Yemeni Fish Company, talks about fishing Yemeni coasts, problems facing the industry, reasons behind the ambiguous and huge migration of tuna and unpredictable behavior by some fishermen that affects fish stocks.

The company began operating in late 2003 and work commenced on a new site in Dhabbah, 25 km. east of Al-Mukalla city. The company moved into its new facilities after a May 22, 2005 grand opening by President Ali Abdullah Saleh.

Encompassing more than 500,000 square meters, the complex contains a purpose-built factory, boatyard, training center, administration buildings and accommodation for local and expatriate staff. The whole site faces a harbor to accommodate vessels up to 4.5 meters draft.

The factory is among the most modern in the Middle East. Built to EU and U.S. FDA standards, it receives supplies from local and visiting vessels and from its own fleet of inshore boats. Local fishermen supply the majority of the catch and fresh fish is exported daily to Europe. The factory's capacity is 30 tons of raw material per day.

The main species from October to May is yellowfin tuna and the artisinal fleet brings in fish caught by hand line. Charter flights from Riyan International Airport, only five km. from Dhabbah, take some of the product while other fish goes on scheduled flights from Sana'a.

In summer months during the Southwest Monsoon, the principal catch is cuttlefish, with large quantities landed by local boats. Additionally, the company’s own fleet brings in catches of demersal fish, snapper, grouper and shark, a large percentage of which is exported to Europe.

Yemeni Fish Company management is predominantly local with a small number of expatriates. There is a strong training ethos, as it is important that the company’s future lies in the hands of Yemeni managers.

Yemeni Fish Company’s future depends upon exporting high quality fish and eventually fish products. As much of the added value from the seafood as possible is completed in Yemen and it is an objective of managers to train the local workforce to undertake this work.

What are the most pressing problems facing the company and how do you cope with them?

The most urgent problem facing the company is shortage of good quality fish. This is explained partially by the poor fishing season, but it is causing major difficulties for all export companies. Many new processing companies have set up in business in recent years and this has put further pressure on the fishery. Another problem is finding sufficient air freight space out of the country.

How do you assess the investment atmosphere in Hadramout?

Hadramout region is a good place to invest. A large pool of labor is available and the economic climate is right for investment. New roads offering better communication with the rest of Yemen and infrastructure improvements are all positive signs of progress. It is hoped that the many changes that have made Mukalla in particular an attractive and lively city will encourage the return of many skilled locals who now live in other parts of the country or abroad.

According to the Ministry of Fish Office in Hadramout, the 2005-2006 tuna fish season is Yemen's worst ever. What are the reasons and how does the tuna shortage affect your business?

According to all local information, this tuna season is among the worst on record. Pelagic fish (living in the water column rather than on the bottom) are highly migratory and move huge distances as water temperature and salinity change. They are also dependent upon their feed stocks like sardine and mackerel.

Fishing also impacts fish behavior and while tuna is a more robust species than many, and therefore less likely to be damaged by overfishing, it is always of great concern when too many juvenile fish are taken. Simple hand line methods used in Yemen are good for conservation, but too many boats and too many small fish inevitably will impact the fishery. Demersal stocks (fish living on the bottom) are much more likely to be affected by fishing, so it is imperative that these stocks are managed properly to allow for breeding and replacement of year classes.

All regional companies and indeed local consumers have been affected by the tuna shortage. Prices are high and this lowers the incentive for fishermen to produce high-quality product that the export market requires. Companies like ours rely on lower volumes of high-quality fish and that has been very difficult this season.

What is your marketing strategy and who are your customers?

Our business was set up to export chilled fish. Free tariff entry into the EU allows us an advantage over some other exporting countries. However, we compete with large volumes of very good quality fish from many parts of the world. Our strategy of selling only the best quality inevitably means low volumes, as much of the fish landed in Yemen is unsuitable for export. Our principal customers are European distributors serving supermarkets and food service industries.

Yemen’s fish industry is important business. Many fishermen made a killing in the course of a few years. Is this true about Yemeni Fish Company?

Fishing is an important business and if managed properly, it will remain so for many years. The unpredictable nature of pelagic fisheries will always make it a high-risk business and there always will be bad years to counter the good ones. As in all business, managing risk is a key to success.

It is said that the attitude and behavior of fishermen, whether in Yemen or the UK, are exactly the same. Is this correct?

Fishermen are independent-minded and this applies equally to those working in this fascinating industry around the world. Daily work, often in risky conditions, and the need to satisfy fluctuating markets makes long-term planning difficult for individual fishermen. It is no coincidence that the most successful fishing nations have strong and effective leaders in government and within their own industry.

How do you take advantage of cheap labor in Yemen?

Labor costs in Yemen are significantly less than in Europe or the U.S.; however, productivity is a better indicator and there is some way to go before we achieve levels to compete with other similar countries.

In terms of quality, what are the main types of fish on Yemen's coast and what makes tuna a valuable commodity?

Tuna, cuttlefish, shark, grouper and snapper are the principal export fish. It is fair to say that much of the fish landed in Indian Ocean ports is of poor quality, badly handled on board and without the use of ice. Properly handled, tuna can fetch very high prices in Japan and Europe but the quantity we see here is very small.

How do you compare Yemeni fish prices with other fish producing countries?

Good quality fish will achieve the same prices as any other country producing the same product. This is rare for tuna and Yemeni fish is the cheapest available. Demersal fish, which are easier to look after, compete well on export markets.

Citizens are experiencing inflated fish prices, which is attributed to great demand by fishing companies. What are your comments?

Local market fish prices respond to supply and demand. A poor fishing season and more buyers have caused this year’s high prices. On the positive side, factories now are employing more workers and that has to be a good thing.

Overfishing, bad management and pollution are the main dangers to the fish stock. To what extent are these threats present in Yemen?

The threat to Yemeni fisheries is ever present and only excellent management will ensure their long life and value to the country. We can do nothing about nature and the decision of fish to live elsewhere, but we can control the fishing effort, the quality of the product and to some extent, pollution.

Who is John Williams?

• A Master Mariner by profession

• 25 years in the fishing industry as an owner and manager

• General manager of a large fishing company in the United Kingdom before coming to Yemen

• Worked in the Middle East, Africa and South America