RP is top bangus producer but a tail-ender in exports

The Philippines is the premier producer of milkfish or bangus but is the laggard among milkfish traders in the world. This sad reality is due both to uncompetitive production, inadequate post harvest and processing technology of global quality and the stiff competition posed by its Asian neighbors.

In 2003, the Philippines produced a total of 246,504 metric tons contributing 44.7 percent of global bangus production versus Indonesia’s output of 226.114 metric tons (41 percent of total) and Taiwan’s 77,899 tons (or 14 percent). Global bangus output then was 52,043 metric tons.

Yet, it exported only 625 metric tons or .26 percent of what it produced in 2003 and most of it was processed bangus exports which commanded better prices in the 50,000 metric tons (frozen bangus whole) US market alone, said Alvin Gimelo, president of the Bangus Association of the Philippines and general manager of Fisher Farms Inc.

Gimelo gave a presentation of the bangus industry during the recent first Aquaculture Congress held at the BSWM Convention Center in Quezon City hosted jointly by the Bureau of Fisheries and Aquatic Resources and Congressman Luis R. Villafuerte, chairman of the House of Representatives Committee on Fisheries.

Locally, per capita bangus intake has also been declining from 36 per person in 1993 to only 31 per person, he added.

Among the factors affecting Philippine bangus exports are: Rising cost of imported feeds, labor, electricity and shipment (domestic and international freight costs); inconsistent quality of bangus being exported (in taste, loosening of packs for vacuum packed products, histamine levels and supply consistency); and the tightening product quality standards in importing countries not to mention the inadequate laboratory testing facilities in the country.

Gimelo also said that financing (from the ACEF P4.8-billion facility) covers only P60 million that can be availed only by a company with assets of P30 million and more. The processing time of loan is one year.

Support from government for bangus traders’ participants in foreign trade shows and R&D efforts have been wanting. Neither could the industry access to any database on international bangus trade, Gimelo said.

Gimelo urged the government to help bangus exporters by conducting focused trade missions and helping them join specialized exhibits like the Boston Seafood fair in the US or the European Seafood show in Brussels, which local companies are now individually investing in at a huge cost.

He said the BAP has also been working hard to come up with a Philippine quality logo for milkfish to ensure the superior quality of products carrying such logo.

Gimelo proposed that government increase the ACEF loan to at least P100 million for companies with assets of P200 million and reduce the processing time to one month (instead of one year). "This will align to the government’s thrust of making the bangus one of 10 priority products," Gimelo said.

He also called for the removal of tariff for all inputs needed in the export of a particular product or reimbursing companies that have paid tariffs on such inputs with reimbursements based on actual export volumes.

Gimelo urged the government to invest in laboratory facilities and make them available at subsidized rates to exporters to help make bangus exports more competitive in prices and quality. — Rose dela Cruz