through in the US

Pafco makes a break through in the US

THE Pacific Fishing Company (Pafco) has negotiated a five-year agreement for supplying tuna to Bumble Bee Seafood Inc, a major Ameri

can firm.

Pafco general manager Mitieli Baleivanualala said it was an exciting breakthrough for the company.

“We have made an important advance in the world’s largest single tuna market.

This will help us to secure the jobs of our workers and concentrate on long-term development.”

An immediate priority is for Pafco to invest about $7 million for expansion and improvement to its factory at Levuka, Ovalau. The upgrade will lift factory stan dards to comply fully with international production and hygiene requirements, par ticularly those of the US Food And Drug Administration and the European Union (EU).

Pafco, majority-owned by the govern ment, operates Ovalau’s main industry canning and processing high quality tuna for international customers. It provides employment for up to 600 local people.

Baleivanualala signed the Bumble Bee agreement at the US firm’s head office in San Diego, California.

Douglas Hines, Bumble Bee’s vice president resourcing and business develop ment, was the other signatory. Also present was Pafco’s chair Kalivati Bakani.

Pafco receives a processing fee for sup plying the American company with a min imum of 15,000 tonnes of tuna annually to be packed as loins for canning in Califor nia. Price details are confidential, in line with the terms of the agreement.

“Although we are not permitted to divulge the price as a matter of commer cial confidentiality, I can say that we have negotiated a very fair deal that provides a win-win situation for all parties con cerned,” Baleivanualala said.

“More importantly, this deal has pro vided a platform for Pafco to gradually move away from its reliance on preferen tial trade arrangements into free trade.”

Sales to Bumble Bee will now account for most of Pafco’s business. Pafco tuna is

also exported to Europe.

“EU market arrangements will remain important to our business in the next 10 to 15 years. They will provide the grace period for Pafco to fully move into the global free trade environment.”

Baleivanualala said; “WeTe proud our products are highly regarded and in demand by some of the most discerning consumers.”

“We place great emphasis on quality and environmental factors. Our tuna comes from unpolluted waters and is caught by vessels using dolphin-friendly fishing meth ods.”

Pafco, Baleivanualala said, is also com mitted to conservation and sustainability. It has access to the world’s richest tuna fish ery which contributes 50 per cent of the world’s global catch. The fishery is being

managed as a lasting resource for the Pacific region.

Planned renovations and refurbish ment form part of a five-year busi ness plan to ensure Pafco meets its obligations under the bumble Bee

contract. Improvements will include: - New cookers and baskets for the pre cooked product, new boiler and conveyors, anew fish conditioning system and fish

meal dryer, new butchering and thawing

system and an upgraded laboratory facility; - Better ventilation, new canteen, staff change room and launderette and possibly a day care centre; - Reorganised production flow and reconstruction of certain areas of the facto ry.

Baleivanualala said Pafco must constant ly enhance efficiency to remain competitive and get the maximum return from tuna pro cessing. “We have to be ready for a world trade environment which demands high pro ductivity and an ability to compete without preferential trade arrangements.” ■