SPC ACTIVITIES the Department’s in the next issue of the Fisheries Fisheries Department): sfb- premises. The association’s aim Newsletter. [email protected] or Antoine is to promote and assist with the Teitelbaum (SPC development of aquaculture in For more information, contact Officer): [email protected] Vanuatu. There will be an Sompert Rena Gereva (Senior update on both of these events Fisheries Biologist at Vanuatu

NEARSHORE FISHERIES DEVELOPMENT AND TRAINING SECTION Technical assistance to Niue Fisheries Department

SPC trained Niue’s Fisheries done by the Pacific Islands The Namukulu FAD will be Department staff in the plan- Applied Geoscience Commission placed 1.7 nm offshore at a ning, construction and deploy- (SOPAC) in Niue. The Halagigie depth of 700 m. ment of fish aggregating devices FAD is 2 nm offshore in 720 m (FADs). depth, while the Matapu FAD is The FADs were constructed 1.5 nm offshore in 700 m depth. according to the design recom- FADs are very important to Niue’s fishermen because they concentrate effort, which saves fishermen time and fuel in getting to the fishing ground. Although the Niue Fisheries Department staff have participat- ed in some areas of previous FAD work, they need to be proficient in all aspects of the work in order to maintain a sustainable FAD programme to ease the opera- tions of the island’s commercial and recreational fishermen.

SPC’s Fisheries Development Officer, William Sokimi provid- ed the necessary training. He worked with Niue Fisheries Department staff in construct- ing three FADs (Figs. 1 and 2), one of which was deployed at the Halagigie site and the other at the Matapu site. The third FAD will be deployed near Namukulu by fisheries staff at a later date. The Halagigie and Matapu sites were recommend- ed because they were closer to Alofi and were previously suc- cessful sites. FAD deployment points were selected from earli- er bathymetry survey work

Figure 1 (top): Flotation sections for the three FADs completed.

Figure 2: (bottom): Transporting FAD to the deployment site.

SPC Fisheries Newsletter #124 – January/March 2008 25 SPC ACTIVITIES

mended by SPC in its FAD man- ual. A “V” deployment strategy was used with the flotation and anchor coordinates on the V ends and the turning point at the V point. The flotation sec- tion of the FAD was dropped off at a preset coordinate at the 750 m contour. The launch then headed for the second coordi- nate, which was approximately half the mooring length. The positioning of the second coor- dinate was angled towards the 650 m contour. Before the vessel arrived at the second coordinate a slight angle on the rudder was used to bring the launch gently around to a third coordinate that marked the approximate full length of the mooring. This action created a “U” path, although once the vessel settled on its return course, the heading was angled a bit to head for the flotation section. The U turn was towards and parallel to the shal- lower slope (i.e. the island side).

Once the full length of the mooring rope was paid out, the anchor deployment depth was confirmed and the anchor deployed (Figs. 3, 4 and 5). Aggregators were tied on after the FADs had settled. The final settling positions were:

Halagigie: 19° 03.787’S 169° 58.861’W Depth: 720 m

Makapu: 19° 00.674’S 169° 56.875’W Depth: 700 m

The charted positions are shown in Figures 6 and 7.

Figure 3 (top): Deploying the anchor.

Figure 4 (middle): Anchor deployed.

Figure 5 (bottom): Halagigie FAD settled in the water shortly after deployment.

26 SPC Fisheries Newsletter #124 – January/March 2008 SPC ACTIVITIES

Compared with the straight line pulls the flotation section under- underwater using the U method, deployment method, the V or U water for a short period before it but the movement is much gen- deployment methods place less resurfaces. The U method, how- tler than the straight line method. strain on the mooring ropes ever, does not pull the flotation Also, the anchor is deployed on because the anchor makes its section underwater, but instead the shallower slope so that there way to the bottom. In the trails it slowly through the water is less chance of it settling in straight line method, the heavy until the anchor settles. Some- deeper water. anchor places considerable stress times deeper moorings pull the on the mooring rope and also flotation section of the FAD

Figure 6 (left): Halagigie FAD final settling location marked with an X.

Figure 7 (right): Makapu FAD final settling location marked with an X.

Kavieng pump boat trials

In mid-November 2007, SPC’s positive outcomes suggested that and retain tuna schools. Between Fisheries Development Officer, the concept could be used else- 20 and 30 FADs have been William Sokimi, worked with where in Papua New Guinea deployed off the coast of Morobe staff of the where there is infrastructure and Province to support the Lae tuna Operations (CFO) section of the marketing access to support a pump boat . For the National Fisheries College tuna fishery (e.g. Kavieng in Kavieng trials, however, four (NFC) in Kavieng, Papua New New Ireland Province). FADs were deployed by the Guinea, on a pump boat hand- National Fisheries College (NFC) line fishing trial. The objective of the Kavieng a month prior to pump boat han- pump boat fishing trials was to dlining trials (Fig. 1). These were The inspiration for this project ascertain whether sufficient vol- spaced approximately 5 nm was the success of pump boat umes of tuna could be caught in apart and 2–3 nm off the reef fishing operations carried out in pump boat handlining opera- shoreline to maximise aggregat- Lae (Morobe Province, PNG), in tions to encourage the introduc- ing capabilities. Previous use of mid-2005. The purpose of that tion of a tuna and pelagic fish FADs in pump boat operations project was to supplement tuna species value-adding processing showed that tuna migrated supplies to Frabelle Limited, a capacity at the Kavieng unpredictably between the FADs tuna fishing and canning compa- processing facility. within a cluster, and were most ny based in Lae. The Lae pump probably driven by baitfish boat operations were based on FADS FOR PUMP BOAT FISHERY movements, changes in local cur- those used in the Philippines and rent, or regional seasonal influ- focused on mid-water jigging The pump boat fishery is highly ences on tuna migration habits. methods around FADs. Initial dependant on FADs to aggregate

SPC Fisheries Newsletter #124 – January/March 2008 27 SPC ACTIVITIES

Figure 1: N° 2 FAD in Kavieng. Figure 2: Chum bag gear.

PUMP BOAT HANDLINE FISHING good catch or not. The other aggregation at their station. The METHODS restrictive aspect of the drop- boats then convene at the FAD stone method in commercial with the most tuna. The most effective way to catch fishing is that it does not give large tuna is to use live bait. fishermen much scope to test In replication of the Lae pump Baitfish are jigged with 15–30 kg the waters when tuna detection boat fishing methods, the drop- test monofilament lines and becomes difficult due to move- stone method was improved on small 4/0 J hooks with pink/ ment of schools from one FAD while the live bait jigging meth- blue plastic strips or chicken to another. However, the Lae ods were retained. A chum bag feathers attached. These artificial pump boat fishermen have the with 1 kg sinker was attached to lures are attached to a trunkline in advantage of many boats to the end of the mainline. The a series of three to six hooks per detect the whereabouts of tuna chum bag was used to envelope trunkline, with a 200 g lead sinker schools within their FAD clus- the chum bait as well as 20 m of at the end. The mainline is low- ter. In times of low tuna aggre- 2.0 mm monofilament trunkline ered to approximately 20–60 m gation, the boats spread out with a baited 14/0 to 16/0 tuna (and sometimes 100 m) where it among the FAD cluster and circle hook at the end (Fig. 2). is haltingly retrieved in a jigging keep in radio contact, sharing This tuna handlining method is manner. Live bait is hooked onto updated information on tuna very effective in the multi-mil- stronger lines with larger hooks to catch the bigger tuna species.

When no live bait is available, fresh bait is used with squid ink or chumbait attractant methods. The traditional dropstone fish- ing method is the main tech- nique used to carry out the chum bait function. Although this method is effective, its application in commercial fish- ing is burdensome and restric- tive because a large amount of suitable flat rocks must be car- ried on each fishing trip. The Filipino fishermen in the Lae fishery use broken flat pieces of building blocks for the drop- stone method. When the rocks run out, fishing stops and the fishermen return to port, regardless of whether there is a Figure 3: Pomat Litau completing a sinker for the scatter bait fishing method.

28 SPC Fisheries Newsletter #124 – January/March 2008 SPC ACTIVITIES lion dollar Okinawa FAD fish- ery. The principles are the same as for the dropstone method, except that the “stone” is retained as well as the “wrap around” leaf.

All fishing gear used during the trials were constructed at the NFC waterfront workshop by NFC staff and participants (Figs. 3, 4, 5 and 6). Two sets of fishing gear were made for each .

OUTCOME

The handline fishing trial did not produce the amount of catch that was envisaged to pro- mote the pump boat fishery in Kavieng. However, the concept should be pursued. The live-bait jigging methods went well (Fig. 7) and would have resulted in a high bait catch had not controls been implemented to leave the baitfish in place for when the bigger pelagic species return.

The four FADs closer to Kavieng were aggregating abundant numbers of baitfish after two weeks in the water. Fishermen in the area were recording tuna catches three weeks after deploy- ment. However, during fishing trials, only baitfish schools were sighted at the three remaining FADs. Tuna schools were nowhere to be found in the vicinity of the FADs and all the way along the coast as far as New Hanover. NFC’s training vessel, the FTV Leilani, covered the east and west coast searching for run- ning schools but none were

Figure 4 (top): Jigging rods and accessories for the scatter bait fishing method.

Figure 5 (middle): Completed lead sinker for the scatter bait fishing method.

Figure 6 (bottom): Malakai Komai displaying the bait jigging lures made from drinking straws.

SPC Fisheries Newsletter #124 – January/March 2008 29 SPC ACTIVITIES found. Only small schools of This should serve as a warning can be used to determine the Indian mackerel and rainbow to do more research on tuna time of the year when tuna are runner were spotted. movements in the New Ireland abundant, the period in which area. Pump boat fishing should the large sized tuna frequent the The disappearance of tuna be conducted over a whole year; area, and tuna spawning times. schools could be due to seasonal fishing two to three days a week, migration, changes in currents, or using the handline fishing meth- the recent spate of bad weather ods introduced in this trial. The that passed through New Ireland. results from these fishing trips

Figure 7: Bait caught using straw lures.

Sea turtle bycatch mitigation workshop and FAD fishing workshops

During the first few weeks of ness raising materials, and the species on sea turtles) and 2008, SPC’s Fisheries Develop- tools and techniques used for FAO’s guidelines for reducing ment Officer, Steve Beverly, mitigating turtle bycatch in sea turtle mortality in fishing began working as the managing longline fisheries, and releasing operations. editor of the Sea Safety Bulletin. hooked turtles unharmed. Also during this time, Steve Workshop participants helped After the workshop, Steve visit- participated in a sea turtle to provide advice and direction ed Wallis and Futuna where he bycatch mitigation workshop, on the development of a strate- conducted two FAD fishing held at the Novetel Hotel in gic work plan (action plan) workshops, one on Wallis and Nadi, Fiji Islands. relating to the mitigation of one on Futuna. The workshops interactions with sea turtles and were organised by Wallis and The workshop was organised fisheries in FFA member coun- Futuna’s Office of Agriculture, and sponsored by the Pacific tries. Most discussions related Forestry and Fisheries in Mata Islands Forum Fisheries Agency to longline fisheries, with a Utu. Steve described to partici- (FFA) and was attended by fish- focus on circle hooks and the pants the three FAD fishing eries officers from most FFA use of release equipment. methods that would be used member countries, as well as during the workshop: vertical experts from around the region The results of the workshop will longline, palu ahi and bidon in the field of sea turtle bycatch help direct related work by FFA dérivant (drifting bottle). mitigation. During the work- members and will be used in shop Steve, along with Carolyn determining obligations under After the classroom instruction, Robins of Beldi Consultancy WCPFC Resolution 2005-04 (res- participants began making up (Australia), gave a presentation olution to mitigate the impact of gear (Fig. 1). Six vertical long- on bycatch mitigation aware- fishing for highly migratory fish lines were fabricated and

30 SPC Fisheries Newsletter #124 – January/March 2008 SPC ACTIVITIES

mounted on Alvey Reef King reels, four palu ahi lines, and numerous drifting bottles. The Alvey Reef King reel (the largest model) can hold a vertical long- line fabricated from 2.0 mm monofilament with 20 spaces for branchlines (Fig. 2).

On the third day of the work- shop Steve accompanied five fishermen on a 7 m aluminium half-cabin boat. Two other simi- lar were (Fig. 3). These boats were ideal for this type of train- ing because they were previous- ly equipped with Alvey Reef King reels and had the reel mounts on the rails. This made it easy to install the project reels, some of which were purchased by the Office of Agriculture, Forestry and Fisheries for this workshop, and others that were the property of the fishermen. Steve and the fishermen depart- ed early for the FAD in the south.

Unfortunately, the FAD was not productive. No fish were caught on any of the workshop gear and no fish were caught . There were no birds either. One boat, however, had caught sev- eral tuna on the way to the FAD by trolling. Upon returning to the office and dis- cussing the outcome, it was decided that all boats would fish in the north the following day, in the vicinity of a lost FAD that had been productive before disappearing. Some fishermen expressed concerns that the gear, circle hooks, and bait (Pacific sardine, Sardinops sagax) were not suitable. However, cir- cle hooks and sardines work well elsewhere, especially in

Figure 1 (top): Fishermen making up vertical longlines.

Figure 2 (middle): Alvey Reef King reel with a 20-hook vertical longline.

Figure 3 (bottom): One of the workshop boats: a 7 m aluminium half-cabin runabout.

SPC Fisheries Newsletter #124 – January/March 2008 31 SPC ACTIVITIES industrial longline fisheries, daily that soak for 8–16 hours. A Steve observed that fishermen in and vertical longlines have good catch rate might be one both workshops, although dis- caught fish in the past. Steve fish (e.g. a large bigeye tuna or appointed with the fishing reminded the fishermen that the yellowfin) per 100 hooks, or results, learned a good deal workshop was an exercise in 20–25 fish per set. Based on about making up all three gear demonstrating techniques, and these amounts, the fact that par- types and the techniques used was not a commercial venture. ticipants caught no fish on 240 for fishing with these gear types. hooks is not unusual. Vertical Steve found that in general, the On the following day, the same longlines, like horizontal long- artisanal and subsistence fisher- three boats headed out. A 15 kg lines, need to count on num- men in Wallis and Futuna could yellowfin tuna was caught bers. After several days’ fishing benefit from further assistance while trolling and Steve used and several sets in different and training in safety at sea and the opportunity to demonstrate areas (depending on whether or in fish handling. None of the proper fish handling techniques not fish were present), Steve boats used during the work- for sashimi quality tuna. Several assured participants that if they shops had adequate safety gear, small yellowfin and skipjack were patient and persevered, and some had none at all, not tunas, two wahoo and two bar- they would start catching fish even life jackets. None of the racuda were caught while with the vertical longlines. fishermen were knowledgeable trolling, and one rainbow run- about proper fish handling tech- ner was caught on a vertical Steve conducted a similar work- niques, and fish were handled longline. shop on Futuna. The main differ- roughly and not iced properly. ence was that there was no FAD Steve noted that any future assis- Steve debriefed participants to fish on so participants fished tance to these fishermen from after the workshop. pointing off the reef on the northernmost SPC should concentrate on these out that the total effort for the point of Futuna, which is normal- two facets of fishing. He also vertical longlines had been only ly a good fishing spot. Results, reported that the Office of Rural 240 hooks soaking for about however, were similar to those on Affairs and Fisheries could use two hours, which is not much Wallis: no fish were caught on some assistance in their FAD effort. A mid-sized longliner any of the workshop gear. programme. sets about 2000–2500 hooks

DevFish assists Tongan fishing association

The importance of national fish- utive officer post with the Tonga tuna industry — was hired as ing industry associations in rep- Export Fisheries Association executive officer (see photo resenting the views and interests (TEFA) for a six-month trial below). While waiting for office of their members is recognised in period, starting in late 2006. space to be provided, Tima many countries in the region, arranged TEFA’s files, set up a although most associations rely TEFA’s request for support was library, and created an email on the voluntary services of their primarily due to 1) the increas- account. Tima was also given members. But because members ing amount of outstanding the responsibility of managing are likely to be occupied with work and issues affecting the TEFA’s bank account with running their own fishing busi- interests of the association and cheques endorsed by the associ- ness, they are seldom able to its members, and the fishing ation’s treasurer or president. devote the time needed to asso- industry as a whole; and 2) lead ciation work. There also the per- TEFA executives ception that they are pursuing having difficulty the interests of their own compa- in attending to ny, rather than those of the asso- association mat- ciation. Unfortunately, fishing ters, as well as con- associations typically have a centrate on run- small membership of relatively ning their own small companies, and lack the businesses. resources to hire staff. Naitilima (Tima) To try to address these prob- Tupou — a Tongan lems, the European Union- national with sev- funded DevFish project provid- eral years of work ed funding support for an exec- experience in the

32 SPC Fisheries Newsletter #124 – January/March 2008 SPC ACTIVITIES

A setback in TEFA’s work plan membership has expanded to tion by fishing organisations, was experienced with the pass- include the following additional there is a misconception that ing away of the king and the organisations: industry is badgering govern- subsequent riot in Nuku’alofa. ment departments. Some fish- As a result, the executive offi- • National Economic and ing association members feel cer’s real work didn’t begin Development Council; that their operations have been until January 2007. singled out and discriminated • National Export Strategy against. One member had been The hiring of an executive offi- Team; “disadvantaged” from an open cer for the fishing association forum where he had openly dis- has been a success, and the • Export Working Group To cussed the shortcomings of a DevFish project hopes the situa- Government Task Force; government department. tion will be a model for similar in-country assistance to other • Ports Authority Advisory The tragic national event of Pacific ACP countries. The Board; November 2006 affected the establishment of the position association’s activities, both has proved to be a positive step, • WTO Facilitation Committees; internally and externally, due to not only for association mem- a shift in the government’s pri- bers, but for the • Department of Fisheries ority and Tonga’s immediate in Tonga as a whole. Working Group. development partners. This in turn affected Tima’s efforts to POSITIVE OUTCOMES Tangible results of the executive secure alternative funding officer’s representation in various sources for the continuation of Although acknowledgement of committees include: 1) the new her position and for certain the executive officer’s role by Customs Act (to be implemented association projects. Despite private sector and government in early 2008), which contains tax these setbacks, Tima was able to agencies has been slow, there concessions favourable to the establish contact with lead has definitely been more repre- fishing industry; 2) the gazetting donors and development assis- sentation of the association and of the Snapper Fishery Manage- tance agencies, and secure some the industry. Tima has also been ment Plan (which contains a cap assistance for TEFA. able to initiate contacts with on vessel numbers); and 3) the lead donors and development accountability of Tonga’s Fish- EXECUTIVE OFFICER’S assistance agencies, identifying eries Department with regard to OBSERVATION potential future support for the some of its association. There is also more obligations (e.g. on the prompt- Tima acknowledges that because openness within the association. ing of the executive officer, the of the diversity of the associa- The executive officer conveys fisheries minister requested the tion’s membership, there are members’ views to the govern- department to report on imple- both common interests and con- ment; previously, individual menting agreed upon recommen- flicting issues between members. companies were often reluctant dations of the National Commer- The association represents com- to communicate directly with cial Fisheries Conference). panies in the tuna longline, deep the government. bottom fish, and aquarium fish SETBACKS businesses. Tima believes she The industry’s ability to be rep- has built a rapport between resented and to participate in Some problems were experi- members, and hopes to further core policy-making committees enced during this trial period of nurture this relationship. and consultations has increased the executive officer. The restruc- dramatically. Before the appoint- turing of the government, and Tima believes that planned ment of the executive officer, the Ministry of Fisheries down- association activities must be TEFA had membership in five sized to a department, has meant concrete and objective, time lim- forums (Pacific Island Tuna that the industry is a lower prior- its must be set, responsible per- Industry Association (PITIA), ity for the government. The vol- sons identified, and a form of Fisheries Working Group, Fuel untary redundancy programme measurement determined so as Concession Committee, Tuna last year, after the civil service to assess the progress towards Management Advisory Commit- strike, has left the Department of objectives. Tima plans to contin- tee, and the Fisheries Manage- Fisheries with some core posi- ue working and building rela- ment and Advisory Committee). tions vacant. tionships with different govern- ment departments and organi- Through the executive officer’s With the increased capacity for sations, building the associa- efforts, acknowledgement and representation and participa- tion’s capacity; and maintaining

SPC Fisheries Newsletter #124 – January/March 2008 33 SPC ACTIVITIES the ability to be objective to cer of TEFA, as the official dele- tion has had significant positive ensure the association’s views gate for Tonga to the Tuna impact on fisheries policies and are not marginalised. Commission meeting in has resulted in a situation that December 2007. could be considered a model of Tima believes her independence the positive benefits of a fish- and representation of the associ- TEFA is a member of the Pacific eries association…” ation definitely limits the mis- Island Tuna Industry Associa- conception that association rep- tion (PITIA), and Tima assists The executive officer has pro- resentatives are only pursuing with work of the PITIA secre- moted the association’s inter- their personal interests. tariat. Tima is also in discus- ests. While DevFish cannot sup- sions with PITIA and SPC for port the position indefinitely, ACCOUNTABILITY AND GOOD some collaborative training other potential sources of fund- GOVERNANCE work. ing have been identified as well as some revenue generating ini- The DevFish project acknowl- This success in Tonga has been tiatives. DevFish approved edges the timeliness with which brought to the attention of multi- TEFA’s request for an extension Tima carried out TEFA’s obliga- ple fishing associations in Samoa of the executive officer position tions under the MoA of this and Fiji, and has generated some and has provided funding sup- funding support. All required interest in those associations for port for a further six months. reporting requirements, includ- putting aside their differences DevFish has provided similar ing full expenditure acquittal and forming umbrella associa- assistance to three other coun- and financial records, have been tions to focus on policy issues of tries. Other donor agencies provided. common concern. interested in supporting private sector fisheries development in Industry representation in vari- EXTERNAL REVIEW the region may wish to consider ous forums and committees this kind of assistance to fishing enables good governance prac- The DevFish Project recently industry associations. tice by having a balanced and had a mid-term review. On the objective discussion on issues subject of the TEFA executive For DevFish Project assistance and policies. In recognition of officer, the review noted: and project technical reports, the objectiveness and integrity visit: www.ffa.int/node/542. displayed by Tima, the Govern- DevFish funding for a commit- ment of Tonga nominated her, ted and qualified officer at the in her capacity of executive offi- Tonga Export Fisheries Associa-

Economic benefits of a domestic tuna purse-seine fishery

THE PURSE-SEINE FISHERY The purse seine is a large net that than 30 mt of tuna per day, and is closed at the bottom (“pursed”) can carry over 1000 mt onboard. Purse- catches the to trap fish. The fish are then A new vessel of this type now largest amount of tuna in the transferred onto a fishing boat costs more than USD12 million, western and central Pacific: about and frozen in large tanks of and has operating costs of over 1.5 million metric tonnes (mt) or refrigerated brine. Purse seining USD2 million a year, but needs 70% of the total tuna catch in each is an efficient and capital inten- less than 30 crew members. of the last two years. The catch sive fishing method. Most purse- consists mainly of skipjack as seine vessels operating in the Fishing is concentrated near the well as small yellowfin. Pacific catch an average of more equator. There are also impor-

Purse seiners

34 SPC Fisheries Newsletter #124 – January/March 2008 SPC ACTIVITIES tant tuna purse-seine fisheries Pacific Island canneries now also Despite these benefits from for- in the waters of Japan, export loins; there is one factory eign access arrangements, most Indonesia and the Philippines, in PNG that only produces loins; Pacific Island governments feel but most of the catch comes and a loining plant that operated that they are not capturing the full from the EEZs of eight Pacific in the Marshall Islands for some economic benefits from their tuna Island countries: Kiribati, years will re-open soon. resources. Papua New Guinea, in Federated States of Micronesia, particular, has pursued a deter- Marshall Islands, Nauru, Palau, ECONOMIC BENEFITS mined strategy to attract foreign Papua New Guinea, Solomon OF THE INDUSTRY investment in locally based tuna Islands and Tuvalu, all of which purse seining and processing work together to manage and The high capital and operating operations. The purpose of the regulate the fishery. costs of purse-seine vessels have DevFish study was to measure made it difficult for Pacific the economic benefits that can be PROCESSING THE CATCH Island companies to participate secured by the development of a in the fishery, which has been domestic industry. Nearly all purse-seine catches in dominated by foreign fishing the region go towards making fleets. Currently, purse-seine MEASURING ECONOMIC BENEFITS canned “light meat” tuna. This vessels from Japan, Korea and is a huge industry, with a global Taiwan catch most of the fish As in an earlier DevFish study demand for around 7 billion taken from Pacific Island waters. of the longline fishery, six meas- cans per year. In the Pacific These catches are landed at urements of economic impact Islands, there are canneries in processors in Japan, or are trans- were used, each in US dollars, Solomon Islands, Fiji, and two shipped in large refrigerated and calculated per metric tonne in Papua New Guinea, but these to canneries in American of tuna. These six measure- are small by international stan- Samoa, Korea, the Philippines, ments were: dards. Cannery production in and Thailand. Transshipping is a the Philippines and American common activity in Honiara, • Value added — the key meas- Samoa is higher, but the world’s Pohnpei, Tarawa, Majuro and urement. This is calculated biggest producer of canned other Pacific Island ports. Access from the value of goods pro- tuna is Thailand. fees paid to Pacific Island coun- duced by an enterprise, less tries by foreign fleets are sub- the cost of goods and services Preparing tuna for canning is a stantial — around USD60 mil- purchased from other firms. labour intensive process, and lion per year — and make up a It can be considered as the net has become very expensive in high proportion of government gain to the national economy countries with high wages. Tuna revenue in countries such as from a fishing or processing canneries in Europe, for exam- Kiribati and Tuvalu. Development activity; ple, now mainly import loins aid is often linked to access (cooked, cleaned tuna fillets), agreements, and there may be • Net local purchases — Adds which are prepared in factories some benefits to local economies the value of supplies bought nearer to the fishing grounds. through port dues and the local by fishing companies, less This creates savings in both purchase of supplies and servic- the cost of import of supplies labour and freight costs. All es during transshipment. from overseas;

Left: A locally based purse seiner landing fish in PNG.

Right: Preparation of tuna in a Pacific Island cannery.

SPC Fisheries Newsletter #124 – January/March 2008 35 SPC ACTIVITIES

• Employment earnings — The Islands, Papua New Guinea and • Domestic canning operation; wages paid to crew and Solomon Islands. These enter- onshore workers who are prises are classed as “locally • Combined domestic catch- resident in the country; based” and account for 105,000 ing and loining; mt of purse-seine catches and • Gross profit — Measured as 70,000 mt of fish processed per • Combined domestic catch- earnings before interest, tax, year as well as 5500 jobs. These ing and canning; and depreciation and amortisation; enterprises have a combined annual turnover of USD150 mil- • Foreign licenced (fishing off- • Contribution to the balance lion. The study used their actual shore and transshipping of payments — The value of financial results for 2006. elsewhere). export sales, less the cost of imported goods used; The DevFish study looked at six Each of these has different operational models: impacts on local economies. • Government revenue — The amount from licence fees • Domestic purse-seine vessel WHAT ARE THE BENEFITS? and other charges. catch and transshipping in a local port; The graph below shows the Data were collected from purse- value added per metric tonne of seine tuna fishing and process- • Domestic contract loining tuna caught and/or processed ing companies in the Marshall operation; under each of these models. The table below gives the average values for all six criteria.

Note that these are average values for more than one enter- prise, often covering more than one coun- try. There were con- siderable differences between enterprises of the same model, reflecting the nature of their investment and operations. It should also be noted

Operational Value added Net local Employment Bal. of EBITDA Gov’t model purchases earnings payments (profit) revenue Domestic PS 447 81 9 528 424 24 catch and transshipment

Domestic loining 71 214 114 143 188 42 operation Domestic canning 577 279 41 856 528 52 operation Domestic PS 375 296 123 671 236 66 catching and loining

Domestic PS 1024 361 50 1384 952 76 catching and canning

Foreign licensed, - - - - n/a 80 no transshipment

All values are in USD per metric tonne of tuna (catch or factory throughput) PS = purse seine; EBITDA = earnings before interest, taxes, depreciation and amortisation

36 SPC Fisheries Newsletter #124 – January/March 2008 SPC ACTIVITIES that the study looked at direct Despite the various incentives, Islands. A strategy is also needed expenditure by fishing and pro- the scale of onshore tuna pro- to restructure tax, operational and cessing companies. The wider cessing from the surface fishery management regimes applied to effect on the economy and tax in the region remains small. It is the surface tuna fishery to revenues from increased suggested that the main reason improve the balance between employment, for example, was why these government interven- resource owners and the enter- not considered. tions have failed to achieve more prises exploiting the resource. significant onshore processing is CONCLUSIONS that those policies have been FURTHER INFORMATION directed at vessel operators in an This study demonstrates that attempt to persuade them to This summary is based on a returns to the national economy become food processors. This report by Peter Philipson that from the surface tuna fishery has often been ineffective was commissioned by the are significantly enhanced with because, as shown by this study, DevFish project. A copy of the local basing of vessels and as vessel operators are already full report can be downloaded the level of onshore processing making adequate profits without from www.ffa.int. A printed increases. This supports the pol- getting into the unfamiliar busi- copy can be requested from icy direction of countries that ness of onshore processing. Jonathan Manieva, DevFish have sought to develop locally Project, Secretariat of the Pacific based purse-seine fishing oper- A policy option that directs vessel Community, BP D5, 98848 ations and onshore processing, operators to land their catch for Noumea Cedex, New Caledonia. particularly canning. However, onshore processing in the host under the current tax regimes, country, without requiring them The DevFish project is funded by the these returns (particularly direct to get involved in processing European Union and jointly imple- government revenue) are small themselves, may be more suc- mented by the Pacific Islands Forum compared with the returns to cessful in increasing the volume Fisheries Agency and the Secretariat fishing enterprises. of processing in the Pacific of the Pacific Community.

SPC Fisheries Newsletter #124 – January/March 2008 37