THE CANNED TUNA INDUSTRY IN THE PHILIPPINES

A Presentation by Tuna Canners Association of the Philippines (TCAP)

VII World Tuna Conference “TUNA VIGO 2015”

A brief introduction… • The Philippines is structured to be a fishing nation;

• Our 7,100 islands altogether measure 2,000 kms. long and is 150 kilometers from the southern tip of Taiwan;

• Our water area is 2.2 million square kilometers

•Land area is more than 30 Million hectares, including mountain peaks, volcanoes, etc.

Dominant Tuna Species in the Philippines

• yellowfin tuna (Thunnus albacares), • bigeye tuna (Thunnus obesus), • skipjack tuna (Katsuwanos pelamis), • eastern little tuna (Euthynnus affinis), • frigate tuna (Auxis thazard), and • bullet tuna (Auxis rochei)

Gears Used to Catch Tuna

• Purse seines, ringnets and handlines usually account for 75% of annual catch.

• –Purse seines 48%

–Ringnet 26

–Handline 10

–Hook-and-line 14

–Other gears 2

Common Gears Used • Purse Seine and ringnet

FISH AGGREGATING DEVICE (FADS) OR PAYAO

DEEP SEA PAYAO (FAD)

How did tuna fishing develop?

• Started in 1900’s under American rule

• 1942-44 tuna fishing became commercial

• 1950 – americans started commercial trade

• 1960s – refrigerated ships started landings in zamboanga

• 1973 – Tuna Exporters Association was formed

• 1980s – the Japanese went into bigtime buying of sashimi grade tuna

How are we doing now?

• The Philippines is still one of the top fish

producing countries in the world.

• Over 1.6 million Filipinos involved

• Contribution to Phil GDP in 2013 -1.7% and

1.9% at current and constant prices, respectively

• 2013 export volume -165,757 MT for all Tunas,

valued at US $681.618 million.

• Canned tuna constitutes bulk of tuna products

being exported. Tuna, mackerel and sardines

are major import fish commodities in 2013

• 30% of imports accounted for by tuna.

Where do we get our tuna raw materials?

• Sources of tuna:

• Papua New Guinea 8 %

• Taiwan (ROC) 10.2%

• Japan 2.5%

• Marshall Islands, 0.5%

• Korea Rep, 1.7%.

• Other fishery imports include mackerel, 14.7%

• Sardines, 5.3%.

Philippine Registered Vessels in WCPFC

<250 GT >250 - 500GT >500 - 1,000GT > 1,000 GT

Bunker 1 1

Fish Carrier 167 52 14 17 250

Fishing Vessel 4 2 1 7

Handline 1 1

Longline 3 9 8 20

Mothership 8 8

Multi-purpose vessel 7 1 8

Purse seine 79 25 27 20 151

Support Vessel 362 3 3 368

Total 631 89 55 39 814

Number of Registered VesselsType of Vessel Total

Regional Fish Management Organizations (RFMO)

• The Philippines implements its obligations under the respective regional conventions and conservation and management measures (CMMs) adopted by the following RFMO organizations: – WCPFC Western and Central Pacific Fisheries

Commission

– IOTC The Indian Ocean Tuna Commission

– ICCAT International Commission for the Conservation of Atlantic Tunas

– CCSBT Commission for the Conservation of Southern Bluefin Tuna (the Philippines is a non-member cooperator)

Philippine Vessels Out There Table 1. Classification and Number of Philippine registered vessels

WCPFC

Type of vessel <250GT >250GT >500GT Total

Bunker 1 1

Fish Carrier 111 51 26 188

Unspecified Vessel

8

2

1

11

Handline 1 1

Longline 7 8 9 24

Multi-purpose 6 1 1 8

Purse Seine 64 36 27 127

Support Vessel 254 4 4 262

IOTC

Longline 9 15 24

Purse Seine 14 15 17 46

ICCAT

Longline 9 16 25

Total Tuna Catch by Species (2010-2014)

Year

Commercial

Municipal

TOTAL

Skipjack Yellowfi

n Bigeye Skipjack Yellowfin Bigeye

2010 177,698 85,351 8,575 50,481 61,924 3,070 387,099

2011 147,979 68,625 6,022 49,404 54,389 3,591 330,010

2012 163,026 77,730 7,912 41,327 45,698 4,568 340,262

2013 168,183 83,142 6,899 40,963 46,742 4,962 350,891

2014 194,583 94,256 6,188 39,270 45,664 4,980 384,942

TUNA CANNERIES There are seven (7) members of the Tuna Canners

Association of the Philippines,.

6 operate in General Santos :

- Alliance Select Foods

- Celebes Canning Corpation,

- GenTuna Corporation

- Ocean Canning Corporation

- Philbest Caning Corporation

- SeatradeCanning Corporation

in Zamboanga - Permex Export Producer Corporation)

and another one in Zamboanga, Bigfish Food Corporation, not yet registered as a member of TCAP.

There are two (2) Philippine-owned and operated canneries in Papua New Guinea, one in Madang and another one in Lae processing around 50,000MT per year.

TCAP members Export Data

(in 000 ) 2014 2013 2012 2011 2010

No. of

Cases #

7,357.9

6,326.8

6,563.6

7,872.6

10,197.0

EXPORT

VALUE

(EST)

US

$

257,696.2

250,778.5

254,843.2

255,713.9

226,029.3

TUNA EXPORTS BY COMMODITY (2010-2014) Tuna commodity, by

volume (MT) 2010 2011 2012 2013 2014*

Fresh/chilled/frozen

33,688 22,027 22,910 20,177

28,808

Dried/smoked 13,933 8,000 2,725

1,460

Canned 76,801 58,071 38,796 29,660

58,660

TOTAL VALUE

(million USD)

359.38 314.507 455.10 664.50 459.83

Domestic Consumption

Canned SARDINES

5 National Brands 690 tons /month

All others 200 tons

Total 890 tons/month or

10,680,000 cases p.a.

Canned TUNA 2013 2014 (est) 2015

Kilos 52.6 M 50.5 M up 2%

Cases 6 Million 5.8 Million

Value Php 8.6 B Php 8.6 B 0%

Fisheries Management & Policy AGENCY FUNCTIONS RELATED TO TUNA FISHERIES MANAGEMENT

DA-BFAR

manage, conserve, develop, protect, utilize, and dispose of all

fisheries

and aquatic resources beyond municipal waters

DENR protection of fish habitat

DTI regulation of fish trade

DFA fisheries negotiations

MARINA registration of fishing vessels

PFDA,PPA management of fish ports

NFRDI, BAS research and policy support agencies

LGUs manage, conserve, develop, protect, and utilize all fish and

fishery resources within their respective municipal waters

Phil Coast Guard, Navy, }

Nationa Police maritime Group } enforce fishery laws

Airforce }

NAFC, FARMCs, PCAMRD

NCIE, MSCOCs, Sea Watch, ] coordinating bodies that facilitate fishery management measures

NTIC

TUNA MANAGEMENT PLAN

• A. Use and management of FADs – to regulate the deployment and number of FADs associated with tuna fishing

• B. Monitoring, Control, Surveillance (MCS) activities;

–Land component

–Sea component

–Air component

Guidelines and Required Compliance of the TUNA MANAGEMENT PLAN

• Determination of Catch Limit based on Best Scientific Evidence

• Limitation of Fishing Effort and Capacity

• Regulation of Transshipment at Sea

• Regional Observer Program

• Vessel Monitoring System (VMS)

• Entry and Exit Position Reporting

• Boarding and Inspection on the High Seas

• Port State Measures

• Charter Vessels

• Catch and Trade Documentation

• IUU Vessel Listing

GSP PLUS

• Fish supply is still a problem now and for the next three (3) years.

• The Philippines is registered as one of the biggest purseining fleet and is treated in the tuna industry as equal to the first world country catchers/processors. But we really cannot compete with their capacities.

• We continue to depend upon guidance and aid by the EU countries to whom we owe our phenomenal growth.

• In truth, our capabilities have been taught to us by our EU trading partners/friends

• Our markets have been essentially the EU and the USA, and we continue to receive help from the EU, in particular, in terms of market, technology, financial support if any.

ISSUES, CONCERNS & CHALLENGES

• Resource Management

• Production, Post Harvest and marketing

• Institutional Policy and Regulatory Concerns

• THANK YOU!

• MUCHAS GRACIAS!

•MABUHAY!