1. Fiji has significant marine resources, yet much of the value of seafood can be captured beyond the country's borders. How is PAFCO working to expand local processing and create greater value from Fiji's fisheries resources?
PAFCO remains the largest processor in Fiji and one of the largest ion the region. Hence, our requirements are far more than even the fish supplies from Fijian waters. Our capacity remains at 30,000 tonnes of processing annually.
We deal quite a bit with local suppliers, such as Hangton. We also have Golden Ocean supplying us with PIT tuna that we supply to the United States. We've got Khans and a few others, like Ace Tuna, that also come in and provide supplies.
However, a lot of our other requirements come from across the globe because of the migratory patterns of tuna.
In terms of how we can change the entire landscape of Fiji, what we're looking at is sustainable resource management. We are fully accredited with the Marine Stewardship Council (MSC), and we have Dolphin Safe certifications. We ensure that our chain of custody is never broken.
Every supplier that comes on board must meet the certification requirements, irrespective of the market the product goes to. MSC is a must. We also require Dolphin Safe certification, as well as the relevant Kosher and HALAL certifications at our processing facilities, to ensure that the relevant markets are always served in the right manner.
The requirements keep changing. We've just started a process under GFSI for BRCGS for the European market as well. This is an ongoing audit, and I'm pretty confident that we will come out with flying colors, as we have done with USFDA and other standards.
2. Sustainability is fundamental to the long-term future of the fisheries industry. How does PAFCO balance commercial production with responsible fisheries management and the protection of Fiji's marine ecosystems?
The whole focus is to ensure that everything in your supply chain is managed the way that we require. If the chain of custody is not followed, then automatically the entire system is broken.
So we pay a lot of attention to it, and we ensure that our team is on top of it all the time, right from the suppliers, irrespective of who they are or which part of the world they are coming from.
For example, even for empty cans supplies, we visit the supplier's factory, see it firsthand and conduct an in-house audit. Once we are satisfied that, when dealing with them, there will be consistency of supply in a sustainable way, with all the certifications that we require, then we proceed.
For example, people who provide labels or cartons must also meet the relevant industry standards to ensure that they are compliant.
Our operations and quality teams also visit suppliers and conduct audits when required. I accompany my team as well at times to ensure that whoever we're dealing with is providing the right items. Some of these audits are unannounced or surprise audits as well.
This is simply to ensure that all the sustainability requirements are met.
3. PAFCO is a major employer in Ovalau. How significant is the company's workforce?
These were for the Forestry company I believeWe have around 870 people when we are running double shifts. It sometimes varies depending on the species and the tonnage being processed.
At any point in time, the bare minimum that we operate with is 400-plus employees.
4. How does the company contribute to local communities through employment, skills development, training and opportunities for economic participation?
Just looking at the last couple of years, on average, we've put in around FJD 10 million into the economy of Ovalau by way of salaries, wages, CSR and other activities.
This practically ensures that everything on the island is operational. If we don't put in that much money, the grocery stores, clothing stores, restaurants, transport providers, cleaners and the entire economy would grind to a halt.
The entire populace is actually supported through us in a big way.
Every dollar that is spent by any of our customers goes beyond PAFCO and right into the community because we've got multiple CSR projects that we support.
We look after hospitals and schools. We provide education-related assistance and extracurricular activities to keep young people fit and focused through rugby, hockey, netball and other sporting activities.
We also support villages in multiple ways, whether there is a program they are hosting, educational programs we can assist with, or infrastructure such as seawalls or shelters.
The dollar that comes into the company trickles down into the community in much bigger and larger ways.
We support the Frank Hilton Organization, which looks after some of the poor and ill children in society. We also support Gospel School for the Deaf and St. Christopher's Home, which looks after vulnerable members of society.
For us, it's not just about being based in Ovalau; it's about ensuring that the benefits reach the people in the Lomaiviti province
5. Fijian seafood has the potential to reach more international consumers. Which global markets do you see offering the greatest opportunities for PAFCO, and how can Fiji strengthen its position within the international seafood supply chain?
Traditionally, the U.S. and Europe remain the biggest markets for canned tuna products, loin products and even fresh and frozen tuna.
The other area we're looking at is growing within the region. PAFCO's exports of canned products have been growing in Australia, New Zealand, P Tonga, Samoa and Vanuatu. We're also now getting into Nauru, Niue, the Cook Islands and other Pacific markets. We're expanding in the region quite significantly.
Our ability to consistently supply is the key element..
In terms of where else we can go, I think once these markets are covered, it would require us to increase our capacity to be able to serve additional markets.
Asia is not something we're looking at at this stage for a very simple reason: Asia is the tuna capital of the world, and it's hard to compete there.
So we still have a lot of room for providing products into the U.S. and EU markets, as well as Australia and New Zealand. We are developing these markets and have specific strategies, irrespective of whether it's private-label business or our own brands going into the market.
We remain open for business and are treating each opportunity as it arrives.
6. The U.S. is an important market for fish and seafood. What opportunities do you see to increase PAFCO's exports to the U.S., particularly to American buyers and consumers looking for high-quality, responsibly sourced seafood?
The United States is an important market for Fiji's fisheries sector. We export sashimi-grade tuna to the U.S., both frozen and fresh, particularly for the sashimi market. These exports account for approximately 70% of Fiji's total fisheries revenue. Not PAFCO! Pleas check
One of the key factors is responsibly sourced, non-farmed, locally caught seafood, using MSC and SQF certifications and maintaining U.S. FDA compliance. We ensure that, as I mentioned earlier, our chain of custody is always maintained.
The U.S. remains a very large market, and there is a lot of untapped potential.
The strategy we're currently using involves two different lines. One is looking after our diaspora market, which is more concentrated in California. We've got a specialist distributor who has just been appointed for that.
We are also working with another organization based in the U.S. to target some large retailers in the market. So we're looking at growing in that space as well, slowly.
7. What role can innovation and technology play in strengthening PAFCO's competitiveness? Are you looking at modernising processing facilities, improving quality standards, automation, whole-chain capabilities or other technologies to increase efficiency and product quality?
I'm glad you asked that question, because we're looking at multiple aspects of what you just mentioned.
We've got quite a bit of equipment that we are currently in the process of modernizing because it brings about a lot of efficiency, not just in operations but also fuel efficiency, helping us reduce our carbon footprint.
Two new state-of-the-art retorts are arriving in early September, which will help speed up the process, require less energy input and help us become greener, while saving costs and improving overall capacity.
We are also liaising with partners, including our energy provider, to ensure that the entire Ovalau Island gets a little more solar energy, and PAFCO is part of that.
We are the largest energy consumer on the island, and we're definitely looking forward to the possibility of the island being supplied with at least 50% or more of its energy from solar power.
In terms of equipment, we're also looking at other machinery and a degree of automation. We're looking at modernizing the canning equipment.. That will reduce overheads, lowers the cost per unit and makes us more competitive.
We are also looking at new flavors and new products that give customers more variety while allowing us to utilize our entire capacity, become a larger producer and effectively reduce costs for consumers.
8. International partnerships and investments could help accelerate the development of Fiji's value-added seafood industry. What opportunities do you see for PAFCO to work with global seafood companies, investors and potential U.S. partners?
We already have some great partners in the U.S. and EU in terms of taking our products to market. We are also looking at how we can improve on that and take it to the next level.
The idea is not to remain static, but to grow and work according to local market trends and consumer preferences.
A lot of market research and data is required. We'll work with the partners we have on the ground to get this information and ensure our products deliver what consumers require.
In terms of working with potential investors, our major shareholders are very supportive of many of the initiatives we undertake. We remain open to anybody who wishes to work with us, whether as a supplier, customer or partner for other business opportunities.
We've also just started venturing into additional uses for offal products. We are practically a zero-waste company. Everything that we cannot convert into a direct product we convert the scales, bones or other material, into fish meal and fertilizer, which is sold both locally and also exported
However, we're also looking at other options. We are working with a company called Shino Foods in Japan, which makes tuna stomachs into a delicacy. We are currently trialling and testing their products. In the upcoming year, we expect to be sending them container loads of tuna stomachs.
So that will become another product from what would otherwise be waste.
There's another product that we're working on, but I can't share the details today..
Shelf stability is key. There's a lot of testing and other work that needs to happen. We are currently partnering with a university overseas to see how we can convert that waste into a sustainable, shelf-stable product.
Ultimately, we're looking at creating multiple revenue streams from what was previously considered waste.
9. Looking ahead, what's your long-term vision for PAFCO and for Fiji's fisheries industry? How can the sector become more competitive, sustainable and capable of generating greater economic value for Fiji and its communities?
I think we remain a very good model in terms of community economic activity and the requirements around green operations. We remain a good source and example of that.
In terms of ensuring that we are looking after not just our vision but the industry as a whole, our growth will mean the industry's growth locally.
As our requirements grow, the demand for supplies will grow. That can potentially give birth to more companies in Fiji investing in vessels to supply PAFCO.
As I mentioned earlier, even if we bought every single tuna caught locally, it would still not be enough to support what we require to run at full capacity. So there is a significant opportunity within PAFCO as well as within the wider domestic industry.
Our vision remains to be a growing exporter and supplier of quality tuna products. We will continue working on that to ensure we can sustainably and consistently supply quality premium products to our export markets and grow sustainably.
We are also working with industry partners on long-term supply contracts for raw tuna. That will bring about more sustainable operations for us, more business for companies fishing here and supplying to us, and, in turn, more employment generation within the country.
And the economic benefits are not restricted to PAFCO or Ovalau alone; they are spread across the country.
10. Finally, what message would you like to share with Los Angeles Times readers about Fiji's seafood industry and the opportunities for American companies and consumers to engage with responsibly produced Fijian seafood?
We are operating in a green, pristine environment. We are working towards reducing our carbon footprint. We are working with the community, and we are ensuring that we have a triple bottom line, not just a focus on making a quick dollar and moving away.
So the message to consumers is that when you pick up any of our branded products or canned products through our partners, your money is well spent.
It is coming to a place that has full sustainable green, and zero-waste operations. It is a community-based company where every dollar, that you spend with us reaches far beyond the organization and moves into making lives better for everyone on the island and the country as a whole.
You are not just buying a product; you are partnering with a company such as ours and a country like Fiji, and the growth exists for both parties.
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