| Business: HERE WE COME --SOLTAI’S TUNA HEADS TO US MARKET |
Two important milestones early 2007
Evan Wasuka
In the Solomon Islands’ provincial town of Noro, where Soltai, one of the South Pacific largest manufacturers of tuna products, is located, the year 2007 could not have started on a better note.
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Tuna...heading for the Soltai cannery.
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Soltai, whose Solomon Blue canned tuna is a staple diet in most Solomon Islands homes and whose popularity is spreading throughout the region, reached two important milestones in early 2007.
First, the company completed an extensive upgrade of its cannery, a vital piece to maintaining its exports to Europe. Second and most significant, is the greenlight to export its tuna to the lucrative United States market.
The approval by American authorities allows access for Soltai products to be sold in American supermarkets under the label of international corporation TriMarine International Limited, which Soltai has a commercial arrangement with.
The expansion will also lead to the recruitment of an additional 300 to 400 workers.
In the Solomon Islands, like its Pacific neighbours, the fisheries sector makes up a big chunk of the country’s revenue.
In 2005, fisheries catch was at 23,853 tonnes. Although it was lower than in previous years, it was the second highest export earner behind forestry, with Soltai the major player.
After six years of operation, Soltai is making solid gains in its development and the key says Soltai chairman Fred Seda has been its strategic alliance with TriMarine which began in 2003. Under the alliance, Soltai provides fish loins for TriMarine’s European markets, notably France, Germany and Italy.
The Western Province, one of the Solomon Islands’ wealthiest provinces, saw its future in the fisheries and processing industry and invited the Japanese-owned Solomon Taiyo to set up shop in Noro in 1979 from its previous home in Tulagi. In 2001, it decided to the join the fishing business when Solomon Taiyo decided to sell the company in 2001 as its operation came close to collapsing.
With 49 percent control of Solomon Taiyo’s operations and government taking over the remainder, the company was reborn as Soltai.
“We have not really come out yet through the tunnel. Thankfully though, we can now see clearly the light ahead. We know where we are heading,” says Seda.
With TriMarine’s support, Soltai has been able to renovate its cannery and operations.
The benefits of this and the multiplying effects on the provincial and national economy will be significant, says Seda.
With a new intake of 300-400 workers, the company’s payroll will increase by about S$250,000 per month, thus increasing Pay As You Earn Tax to the government to around S$25,000 and National Provident Fund contributions by about S$55,000 per month.
Domestic sales are expected to rise by S$1.5 million per month while the foreign exchange reserve per year is estimated to be around US$5 million from the exports of loins and catering packs. And with the greater number of staff, Seda is quick to point out that this means greater consumer base for local food and services suppliers.
Soltai has the distinctive feature of being the only operator in the Southern Hemisphere to have a locally operated fleet, crewed by locals, supplying fish to a locally owned and managed cannery.
Soltai’s presence has turned Noro into an industrial hub of the Western Province.
Noro plays home to Solomon Islands’ second international port and is the base of the country’s other fishing operator—National Fisheries Development Limited—owned by TriMarine.
Out of Noro’s 3000 plus residents, a thousand of this is made up of staff of Soltai who have been drawn in from all parts of the country.
Prime Minister Manasseh Sogavare, who visited the township for the cannery’s inauguration, said Noro has set the model on how the rest of the country should be with people from different areas living and working together peacefully. A hard task to achieve in a country where the memories of the 1999-2001 ethnic tension still linger in the minds of the people.
As Soltai grows and Noro booms, the company has had an intricate and close relationship with the town. Soltai’s head of security Ishmael Kaviu heads the Noro Town Council, while town clerk Gloria Sibisopere is the wife of Soltai’s general manager, Milton Sibisopere. Provincial premier Alex Lokopio is also deputy chairman of Soltai.
As for Soltai’s future, the company’s chairman is confident that fishing will always be an important part of the company but its future will be in processing and marketing.
In the pipeline is a new fishmeal plant along with a new 2000-tonne cold storage, bankrolled by an ANZ Bank.
But an October deadline set by the European Union (EU) means Solomon Islands has eight months to get itself from List Two of the EU’s health and sanitary compliance into List One.
“If Solomon Islands fails to achieve List One—then all our exports are doomed,” says Seda.
He says the company has been working towards meeting the requirements but the process is an expensive but necessary one for the future of the company.
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