Report on the Implementation of the derogation to ... - Trade Websites

Final <strong>Report</strong>
RoO Derogation under the PACP-IEPA
Table 3.14
Medium-term projection of the production capacity of PNG’s tuna processing plants,
2011-2016
Existing Operations
New Operations
Proposed New
Operations
a
Operational Status Facility
TOTAL PRODUCTION (MT/DAY)
RAW MATERIAL REQUIREMENTS
2012 2013 2014 2015 2016
RD Tuna Canners 200 120 120 120 120 120
Frabelle (PNG) Ltd. 100 80 80 80 80 80
South Seas Tuna Corp. 200 80 80 80 80 80
TOTAL EXISTING PRODUCTION 500 280 280 280 280 280
Majestic Seafoods Ltd. 350 30 60 120 120 120
International Food Corp. 120 40 60 60 70 70
Niugini Tuna Ltd. 200 - - 40 80 100
Nambawan Seafoods 150 - - 40 40 80
Halisheng Group 200 - - 30 50 80
TOTAL NEW PRODUCTION 1,020 70 120 290 360 450
TOTAL RAW MATERIAL REQUIREMENTS (MT) b
1,520 350 400 570 640 730
380,000 87,500 100,000 142,500 160,000 182,500
Raw material - canned tuna (mt) 247,000 60,900 71,900 97,150 103,400 113,150
Raw material - cooked loins (mt) 133,000 26,600 28,100 45,350 56,600 69,350
FINISHED PRODUCT
Max. Capacity
(mt/day)
Projected Production Input (mt/day)
Post- Derogation
Finished product - canned tuna (mt) 164,667 40,600 47,933 64,767 68,933 75,433
Finished product - cooked loins (mt) 55,860 11,172 11,802 19,047 23,772 29,127
EU EXPORTS - FINISHED PRODUCT
EU Exports - canned tuna (mt)
EU Exports - cooked loins (mt)
123,500 27,780 33,997 51,238 51,238 56,705
41,895 6,972 7,602 14,658 19,257 24,423
Based on plant operations for 250 days/year.
b Finished product is calculated on the following basis: 1.5kg of raw material = 1 kg finished canned tuna (including weight
of the fish, can, oil etc.); 1 kg raw material = 0.42 kg of finished frozen cooked loins.
Source: Interviews, PNG canning representatives 2011; consultants' analysis.
3.4.1 Implications of global sourcing on PNG processing sector expansion
From 2008-2011, global sourcing has had little influence on growth of PNG’s existing tuna processing
facilities, given production levels have generally remained constant and well below capacity. Also, to
date, existing plants have generally been able to meet raw material needs with EU-compliant
catches from their own fleets, or if sourcing from non-company vessels, are yet to branch out and
utilise the RoO derogation to its full capacity to source fish from vessels who have not traditionally
supplied them in the past.
Onshore investment in PNG in the short-medium term will continue contrary to market forces, since
PNG is a high-cost operating environment and tuna processing industries globally already suffer due
to overcapacity. Expansion is currently driven largely by NFA’s policy of linking fisheries access to
onshore processing, rather than duty free access to the EU market and global sourcing per se.
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