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Big Leap In PNG Processed Tuna Exports ff

7 September 2004 Papua New Guinea

Papua New Guinea’s fish exports shot up by 40% last year and was worth a record K350 million (USD 116 million) from around K250 million (USD 83 million) previously. The increase was due to the start of production at the Wewak tuna loining plant and increased production by smaller fresh chilled tuna operators.

”With continued growth in tuna processing for export, the annual export value of fisheries products will possibly reach K1 billion by the end of the decade and possibly sooner,” according to the projects manager for the National Fisheries Authority, Ronald Kuk. However, issues of market access, particularly to the European Union and to a lesser extent the United States, may impact on projected growth, he said.

The biggest income earner was tuna with sales last year of K80 million (USD 26 million) worth of canned tuna, K70 million (USD 28 million) worth of frozen tuna and K30 million (USD 9.1 million) worth of fresh chilled tuna. Other key export items included K30 million (USD 9.1 million) worth of prawns and lobsters, K20 million (USD 6.6 million) of beche-de-mer, K8 million (USD 2.6 million) of shark meat and fins and various other coastal marine products worth K5 million (USD 1.7 million).

Mr. Kuk said the EU market is accessed by RD Tuna Cannery. It will be open to smaller operators after their participation in Brussels Food Fair 2004, which is funded jointly by INFOFISH and the European Union’s coastal fisheries project. He said: “We have commenced discussion with the US for increased market share as part of the current US/South Pacific Fisheries Treaty.”

Operating costs have become critical for long liners, in terms of both fuel and freight, and recently increased fuel costs are a major constraint to the whole fishing industry, especially at village level.

Mr. Kuk said fuel costs were a significant part of operating costs and any relief in fuel rebates would significantly cut industry costs. He said the NFA was starting to design small boats that could use diesel – diesel prices on Aug 9 rose by 2 toea to K2 a liter – because of the high costs for “zoom”. “Small operators are now loining and filleting for the frozen fish market as airfreight costs are killing the fresh and chilled product market,” he said.