Written by Natalia Freitas, for Atuna.com
Papua New Guinea (PNG) duty benefits on tuna exports to the European Union (EU) have been recently extended to more fishing grounds, attracting a large number of investments to the processing industry into the country. This has caused a strong opposing reaction from the Spanish canning industry represented by ANFACO, which released several statements requesting the revocation of the decision.
To respond to those statements PNG’s National Fisheries Authority, Mr. Sylvester Pokajam, spoke with us about a brighter future for PNG’s tuna industry.
Sylvester Pokajam
Atuna.com: The decision to consider PNG canned tuna free of duty in the EU was taken long ago. Why do you believe foreign investment on building canneries is happening more recently?
Sylvester Pokajam: Before the EU duty free/quota, free market access only allowed archipelagic waters tuna catch. Now it includes PNG Exclusive Economic Zones (EEZ) catches and globally sourcing of tuna. So, foreign investors know that this is the right time to invest in PNG, considering that our duty benefit with the EU won’t last forever. They want to have access to our tuna resources, which are rich and close by and know that with heavy investments PNG will be able to create volume to sustain the industry on the long run. That’s why this help from the EU is so crucial for the development of our tuna industry now. We currently have two operational canneries and one loining plant employing 8000 people, from which 99% are ladies. The new coming cannery –from the Frabelle, Thai Union and Century Canning partnership- that starts construction now in October will employ around 3.000 people directly; maybe double indirectly. About five more canneries are in the planning phase.
ANFACO, the Spanish organization of seafood canners, has protested at the EU Parliament against the PNG duty free condition alleging that it would harm their industry. How do you respond to that?
This should not harm the Spanish industry because the same fish processed in Thailand, Philippines and elsewhere – some 700.000 MT - will be processed in PNG considering more processing plants are being established here. It’s the same fish. Plus, they have several tuna canneries in South America, in Ecuador, enjoying the same benefits, so why complain about PNG?
Maybe they were hoping investment countries like Thailand and Philippines would invest in Spain instead of PNG?
Well, Thailand is also investing in the United States and I don’t see any complaints about that.
Where are most investors in PNG from? Could they be the real targets of ANFACO’s statements?
Most of them are from the Philippines and one each from Taiwan and Thailand. Yes I think they would be the target of ANFACO’s complaints, which they mentioned in their past statements.
Who are PNG’s main competitors?
Our main competitors are Thailand, Philippines and US.
Another focus point of protest by ANFACO is the fact that PNG could become IUU getaway into Europe. Is that a possibility?
No, PNG has the best Monitoring Control and Surveillance system in place. PNG has the biggest observer program in the Pacific with 200 personnel and the best state of the art vessel monitoring system; it has a 10 years old port sampling activities taken place, landing of catches and a strong licensing regime with appropriate legislation. IUU is not allowed in PNG.
How is the tuna trade between Spain and PNG?
Some members of ANFACO continue to trade with PNG companies. They see no problem whatsoever. In fact they want this false publicity by Spain to stop. They buy lots of yellowfin from PNG, and still import canned tuna the most from us.
How much has PNG tuna canning production grown in the past year? How much more do you think it will grow?
PNG tuna canning has not grown that much yet. So far, from the 500.000 metric tons caught in PNG waters, only 20% is processed here. The other 80% is taken away by distant water fishing nations and processed in Thailand, Philippines, Korea, US and Japan. We are looking at 30% to 40% more tuna canning production. Maybe 10-15 years we’ll be processing 100% of our tuna. That’s our final goal, that’s the day I’ll have a very good sleep at night.
