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PNG Smoked Tuna Not Competitive In Japanff

30 January 2007 Papua New Guinea

The Papua New Guinea Government has been urged to reduce the current duty on smoked tuna being imported by Japan.

A Japanese marketing researcher said with the present 7% import duty imposed on imported PNG smoke tuna, it won’t be able to compete against its counterpart from Solomon Island which enters Japan duty-free.

This was an issue for consideration raised by Pacific Islands Centre (PIC) senior marketing researcher Yoshiko Miyazaki who is part of a Japanese delegation on a fact-finding mission targeting agriculture and fisheries industries in the country.

Ms Miyazaki, during news briefing last Wednesday, referred to feasibility studies conducted by Japanese businessman Hiroyasu Kawaguchi who said at present smoked skipjack tuna import from PNG was slapped with 7% import duty, while those from Solomon Islands enter the Japanese market duty-free.

Thus, PNG is clearly in a less-competitive position against Solomon Islands.

Another issue for consideration was the high freight cost currently experienced by PNG companies and exporters for its products.

Ms Miyazaki said this was a major impediment that should be addressed at the national level to promote PNG exports.

Through the study, she also noted the limited catching capacity of the local fishing groups due to non-availability of markets, storage facilities and boat sizes which determines their current capacities.

“The study indicates PNG has the potential to establish a processing facility for smoked tuna … thus PIC is positive that this prospect can be realized with the support and joint efforts of the PNG Government, through Investment Promotion Authority, National Fisheries Authority and the respective local stakeholders in PNG,” Ms Miyazaki said.

Preliminary research was undertaken by both PIC and IPA with the tuna industry to determine the viability of setting up a smoked tuna processing plant in the country.

The study was carried out by an expert from Marukei Katsuobushi Co of Japan which produces and supplies smoked tuna products in Japan.