MANILA, Philippines – Listed fish processing firm Alliance Select Foods International will be spending US$17 million on its Philippine operations and $4 million on their Indonesian fish catching fleet to improve the supply of raw materials for their seafood canning and export business.
“The main goal this year is to build up the fishing divisions…This buildup in fishing capacity will support the tuna requirements of PT International Alliance Food Indonesia, our cannery in Bitung, Indonesia and will increase the capacity utilization,” President and Chief Executive Officer Jonathan Y. Dee said.
Indonsian subsidiary PT Van De Zee has two new catchers ready to set sail by 4th quarter and two more in 2014, Dee told reporters on the sidelines of company’s annual stockholder meeting on July 4.
“In Van De Zee, our license there allows us to catch up to 30,000 metric tons of fish. That’s equivalent to $164 million,” he said.
By 2015, Van de Zee is expected to supply 60% of the cannery requirements of its facility in General Santos City in southern Mindanao, while Wild Catch Fisheries, Alliance’s 40% joint venture with a Philippine shipping group, will contribute 40%.
The Philippine fleet via Wild Cath Fisheries is a joint venture with CHL Fishing Industry Inc. and CHL Construction & Development Enterprises Inc.
Dee said Wild Catch supplies up to 10,000 metric tons of fish per year to their General Santos cannery.
Alliance Select will also expand its fish farm, Akaroa Salmon Ltd in New Zealand, by 40% in volume. The facility is expected to generate 400 metric tons a year in the next few years.
These investments are expected to help boost the food firm’s finances these year after it suffered a net loss of $642,000 in the January-to-March period.
“It’s a volume business. There is good global pricing and good supply. We expect continued good delivery of fish and the market will continue to take higher price level. We will be able to offset the losses in the first quarter,” Dee said.
When asked about the losses incurred in the first quarter, Dee said, “It was the impact of the mismatch of the market which is the raw material, but we already cured it. That’s why in the second quarter is big reversal from the previous one,” he added.
Tuna operations of the company composed 74% of revenues while 26% came from salmon in 2012. – Rappler.com