Govt assistance needed to avoid PAFCO loss
May 19, 2008, 16:52

The Pacific Fishing Company is expected to meet with Interim Prime Minister Commodore Frank Bainimarama to raise concerns over its operations.

PAFCO chief operating officer Chandra Prakash said the discussions would be centered on the loss of business the company faces.

Mr Prakash said the recent removal of duty from certain imported canned foodstuff such as fish will negatively impact PAFCO’s local canned foods.

“PAFCO will now be a victim to cheap imports. Because imported products will be sold cheaper our local products will remain stagnant,” he said.

Mr Prakash said operating accompany like PAFCO, situated in Levuka, cost somewhere around $5m since all raw materials such as cartons, cans, labels and even raw fish which are imported have to be shipped from Suva to Levuka and the finished product has to be imported back to Suva.

“Although the company rakes in about around $15 million worth of sales in the local market, this will diminish due to the drop in prices on the imported products,” he said.

“Customers will buy the cheaper goods and with the imported canned stuff now zero rated, our local canned foods will remain stagnant on the supermarket shelves,” he said.

Currently, Mr Prakash said the local tuna are selling at 79 cents each while the imported ones from Thailand, Indonesia and China were selling at 89 cents each.

“With the drop in duty, their prices will drop even further,” he added.

Mr Prakash predicted that the drop in sales of the local canned fish and the 1,000 strong staff could be halved to cushion this.

He said some 500 people from the 1,000 employed from the Lomaiviti Group could stand to lose their only means to livelihood.

Other business houses in Levuka could face closure since PAFCO was the lynchpin to the economy of the old capital.

“Since PAFCO is a state-owned company and has been satisfactorily generating profits, over the years, the last thing you want is to hurt your own Government Commercial Company.”

Mr Prakash said the meeting with the Interim PM would be to find a solution to the current predicament.

On saving the company’s operations, he suggested that the Interim Government should consider subsidizing the local food manufacturers.

He said PAFCO needed to remain viable given its rural significance.


-Ends-
No:0745