Philippine Canned Tuna Exports Collapse By 42% ff

Philippine canned tuna exports in 2005 posted a 42 percent drop due to rising costs of fuel products, according to government statistics.

From US$153 million in 2004, total Philippine canned tuna exports went down to US$89 million last year. For the first time since 2002, canned tuna product is also no longer the top export revenue earner for Central Mindanao region last year. It was dislodged by canned pineapple, which posted US$122-million export revenue.

Ritche Rivera, vice president and chief operating officer of RD Group of Companies, disclosed that more than half of the operating costs of big tuna producers go to fuel expenses. ”In fact, we could save a lot on operational costs if we stop our fish catching operations. It is cheaper, operation-wise, to just buy from local producers or import tuna for processing,” he said.

The skyrocketing prices of diesel fuel products have resulted to fewer fishing expeditions, the latest regional export data reflected.

From about 93 million kilos in 2004, canned tuna production nose-dived last year to only 51 million kilos.

Marfenio Tan, president of the Socsksargen Federation of Fishing and Allied Industries Inc., said local tuna producers’ operational cost soared after diesel fuel breached the P30 per liter mark. He noted that diesel fuel and petroleum-based lubricants easily eat up around 40 to 60 percent of the cost per trip of a 1,000-ton tuna purse seine fishing vessel. He said that on an average, a four-day tuna fishing expedition could use up about 10,000 to 15,000 liters of diesel fuel or equivalent to a maximum of P465,000, at P31 per liter.

This means the expenses for a regular fishing trip of a local fishing vessel reach around US$600 to US$700 per metric ton, according to him.

Industry observers however also noted that the drop in canned tuna export revenues of Central Mindanao can also be attributed to some companies shipping out their products in other ports in Mindanao, particularly Davao City.

The latest regional export data was mainly sourced from the records of the Bureau of Customs in this city.

Japan and the United States still emerged as the top canned tuna market destinations, at US$7.3 million (26.03 percent) and US$7.1 million (25.46 percent), respectively.

Canned tuna sale from this city in the European market was only US$3.8 million or 13.53 market share.

General Santos City, known as the “Tuna Capital of the Philippines” is host to six of the country’s eight canneries.