August 24, 2012

 

Soltuna to increase tuna production

 

 

The Soltuna firm has planned to increase tuna production by the end of 2012.

 

Speaking to Pacific journalists at Noro, Solomon Islands, over the weekend, Mr Lao said the company is looking to increasing its production from its current 80 tonnes per day to between 100 and 120 tonnes by the end of year to meet its market demand.

 

"We hope to increase our daily production to meet the increasing demand for tuna loins and canned products in the international markets," said Frank Lao, financial manager of Soltuna.

 

Soltuna's annual production of tuna loins to international markets is between 4500 to 5000 tonnes.

 

According to Mr Lao the current international market fish price of yellow fin is US$2100 per tonne and loin cost between $US6500 to US$6800 per tonne.

 

"Demand for our tuna loins is high and the company wishes to grasp that market demand," Mr Lao said.

 

However, he added that the company could not meet this increasing demand due to man-power problem the company is faced with.

 

Adding this was due to high labour turnover and bad attitude towards work which really affects the steady flow of company operations.

 

Soltuna is currently exporting 90% of loin tuna to its European and US markets. Thirty containers weighing 25 tonnes are exported each month.

 

A tonne of loin is sold at US$6,000 for yellow fin tuna giving annual estimated revenue of US$2 million.

 

Canned tuna products accounts for 90% of its domestic market and 10% to its overseas market. Despite high market demand for canned tuna, the company management wants to prioritise the exportation of tuna loins at this stage.

 

However the company's financial manager said if the company can increase its production to 100 or to its maximum of 150 tonnes per day, that will definitely boost the revenue to over US$3 million.

 

"Since 2010, the company is running at a loss, but we will try our best to change the situation in due course," Mr Lao stressed.

 

The company's annual financial statement, as of July this year, sees operating losses.

 

Meanwhile, Managing Director, Adrian Wickham, highlighted that there is a lot yet to be done as currently they are investing on factory equipment to boost their production.

 

"We will eventually get there and do much better," Mr Wickham said.