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EXPORTS SAVE FISH CANNING INDUSTRY.

Introduction

Having great potential in the maritime sector, Indonesia should be able to become a fish producer that is solid in not only the management of fishery resources but also the development of fishery-based industries which can contribute substantially to the country's economy.

Fish canning industry is an industry which can be developed by using the fishery resources. The sharp rupiah depreciation against foreign currencies has encouraged producers of canned fish to raise exports of their production, but there are problems faced by producers that they could not use that opportunity.

This study will describe the development of fish canning industry in Indonesia, especially its condition amid the economic and monetary crisis, market structure of canned fish in the country and export prospects.

Production decreases sharply

Indonesia's total production of canned fish fell to 100,800 tons in 1999 from 254,000 tons in 1997. The decrease was attributable to many factors. Among them were weak demand in the country, economic downturn, riots, unfavourable security and social conditions, shortage of supply of raw material and the increase in price of packaging.

Many canned fish producers have faced difficulty to obtain fish in the adequate quantity because most of the supplies have been absorbed by traders selling their production to exporters of frozen fish. The sharp appreaciation of foreign currencies against the rupiah has encouraged exporters of fish to raise their production and to compete to collect fish from fishermen.

The price of cans which rose over 50% also has affected the purchasing power of canned fish producers to buy the packaging. The product was sold at a higher price because the price of its raw material (tinplate) soared to Rp 5.3 - 6.2 million per ton in August 2000 from Rp 2.5 - 3 million per ton before the crisis. The increase was also attributable to the imposition of import duty on tinplate imported from certain countries. The economic crisis also resulted in a decrease in demand for canned fish in the country. Moreover, exports have so far been the only hope for producers of canned sugar because domestic market demand for canned fish has been lower than salted fish.

Table - 1 Production of canned fish, 1995 - 1999
Year Production (000' tons) Growth (%)

1995 269.5 -

1996 282.9 4.9
1997 254.6 -10.0
1998 110.7 -57.0
1999 100.8 -8.9
Average growth (%)



Source: Department of Industry and Trade

Active producers less than 50%

Indonesia's fish canning industry changed drastically in the past three years. Several large-scale producers have to stop producing because of various factors. They are generally foreign investment companies destined their production for the export market. The closure is attributable mainly to unfavourable conditions in the country.

PT General Food Processing Industry which was previously the largest producer of canned fish in the country has stopped operating since two years ago. The company is a joint venture between businessmen from Medan and NHB Seafood Manufacturing Pte. Ltd of Singapore. Other companies which have stopped producing are PT Berlian Mina Sejahtera located in Cilincing Jakarta and PT Karangetang Makmur located in Bitung, North Sulawesi.

Data at the Ministry of Industry and Trade show that Indonesia has 65 fish canned producers which have a total production capacity of 730,000 tons per annum. But the Association of Indonesian canned fish producers (APIKI) recorded that only 29 companies survive and operate actively. They have a combined production capacity of 139,000 tons per annum. The companies can survive because most of their production are exported to America, Europe and Japan.

Table - 2 Producers of canned fish, 2000
Company Location Status

PT Medan Tropical Caning Medan, North PMDN
 and Frozen Industries Sumatera
PT Native Prima Co. Medan, North PMDN
 Sumatera
PT Timur Jaya Cold Asahan North Non PMDN/PMA
 Storage Sumatera
PT Bali Maya Permai Bali Non PMDN/PMA
PT Rex Canning Pasuruan, East Java PMDN
PT Aneka Tuna Indonesia Pasuruan, East Java Non PMDN/PMA
PT Maya Muncar Banyuwangi, East Non PMDN/PMA
 Java
PT Blambangan Raya Banyuwangi, East Non PMDN/PMA
 Java
PT Karya Manunggal Banyuwangi, East Non PMDN/PMA
 Prima Sukses Java
PT Sumber Yala Samudra Banyuwangi, East Non PMDN/PMA
 Java
CV Surya Blambangan Banyuwangi, East Non PMDN/PMA
 Java
NV. Muncar Banyuwangi, East Non PMDN/PMA
 Java
PT Harapan Lancar Banyuwangi, East Non PMDN/PMA
 Java
PT Sari Laut Jaya Banyuwangi, East Non PMDN/PMA
 Java
PT Hayala Luhur Banyuwangi, East Non PMDN/PMA
 Java
CV. Pacific Harvest Banyuwangi, East Non PMDN/PMA
 Java
CV. Pacific Harvest Banyuwangi, East Non PMDN/PMA
 Java
PT Indo Bali Negara Jembrana, Non PMDN/PMA
 Bali
PT Pengambengan Raya Negara Jembrana, Non PMDN/PMA
 Bali
PT Sumina Extraction Negara Jembrana, Non PMDN/PMA
 Bali
CV Samudra Raya Negara Jembrana, Non PMDN/PMA
 Bali
PT Indohamafish Negara Jembrana, Non PMDN/PMA
 Bali
PT Deho Canning Manado, North PMA
 Company Sulawesi
PT Citraraja Empat Sorong, Irja PMDN
 Canning
PT Multi Transfeche Biak, Irianjaya PMA
 Indonesia
PT Koki Indoca Surabaya, East Java PMDN
PT Sina Pure Foods Intl. North Sulawesi PMA
PT Avila Prima Banyuwangi, East Non PMDN/PMA
 Java
PT Estadha Pesca North Sulawesi PMDN
PT Tri Sejati Tata Food Jakarta Non PMDN/PMA

TOTAL

 Prod. capacity
Company (tons/year)

PT Medan Tropical Caning 11.750
 and Frozen Industries
PT Native Prima Co. 3.600
PT Timur Jaya Cold 750
 Storage
Pt Bali Maya Permai 12.000
PT Rex Canning 5.000
PT Aneka Tuna Indonesia 10.000
PT Maya Muncar 4.896
PT Blambangan Raya 18.000
PT Karya Manunggal 4.800
 Prima Sukses
PT Sumber Yala Samudra 4.500
CV Surya Blambangan 2.500
NV. Muncar 1.350
PT Harapan Lancar 800
PT Sari Laut Jaya 4.200
PT Hayala Luhur 3.000
CV. Pacific Harvest 385
CV. Pacific Harvest 385
PT Indo Bali 4.200
PT Pengambengan Raya 4.500
PT Sumina Extraction 1.440
CV Samudra Raya 3.000
PT Indohamafish 3.600
PT Deho Canning 2.160
 Company
PT Citraraja Empat 2.000
 Canning
PT Multi Transfeche 3.450
 Indonesia
PT Koki Indoca 200
PT Sina Pure Foods Intl. 12.000
PT Avila Prima 2.000
PT Estadha Pesca 12.000
PT Tri Sejati Tata Food 1.107

TOTAL 139.188



Source: Department of Industry and Trade: ASPIKI

Most of the companies are located in East Java, especially Banyuwangi. Next come Bali, North Sumatra and North Sulawesi. See the following table.

Table - 3 Producers of canned fish by locations, 2000
Province Number of Prod. capacity (tons)
 business

East Java 14 59,631
Bali 6 28,740
North Sumatra 3 16,100
North Sulawesi 3 26,160
Jakarta 1 1,107
Irian Jaya 2 5,450
Total 29 139,188



Source: Department of Industry and Trade/APIKI (data processed)

Most of the fish processed and packed by the companies in can are Tuna, Mackarel and Sardine. Canned Mackarel and Sardine boiled with tomato sauce are sold in the largest quantity in the country. Producers also have started to sell canned tuna which is processed by local food prescriptions, like Gulai Tuna, Sambal Goreng Tuna and Tuna masak Rica Rica in the country since several years ago.

Canned tuna in the form of chunk or flake has contributed the largest portion to the total exports of canned fish. Producers also have exported other kinds of seafood, like canned crab meat.

Exports prop up fish canning industry

The increased demand for canned fish in the United States, Japan and European countries help Indonesia's fish canning industry overcome the problem resulting from the dull demand in the country. Yet, the available opportunity cannot be utilized optimally because most of the producers face difficulty to obtain raw material in the adequate quantity.

Exports of canned fish fluctuated in the past four years. The exports were 36,353 tons in 1996 and 40,849 tons in 1999. They high a four-year high of 42,275 tons in 1998 when the exchange rate of the rupiah sharply depreciated to Rp 10,000 - 12,000 per US$1.

By value, the exports also fluctuated. They stood at US$93,733,000 in 1996 and US$115,967,000 in 1998 and US$96,126,000 last year.

Canned tuna or skipjack contributed 87.56% to the total exports of canned fish per annum in the period. It was followed by canned crab meat which shared 5.44% in the total exports.

Table - 4 Export growth of caroled fish by kinds, 1996 - 1999
NO. HS Description 1996 1997

1604.11.100 Salmon in Airtight Containers 47 16
 113 49

1604.11.900 Salmon in Others Containers 129 17
 72 70

1604.13.100 Sardines, Sadinella and Brisling 1,182 54
 or Sparts in Airtight Containers
 603 75

1604.13.900 Sardines in Other Containers 16 0
 22 0

1604.14.100 Tuna, Skipjack and Bonito 30,984 23,860
 in Airtight Containers
 77,878 70,006

1605.10.100 Crab in Airtight Containers 2,005 1,126
 12,317 6,559

1605.10.900 Crab in Other Containers - -
 - -

1605.90.100 Other Aquatic Invertebrates 1,860 700
 in Airtight Containers
 4,591 1,456

1605.90.900 Other Aquatic Invertebrates 30 138
 in Other Containers
 137 228

TOTAL 36,253 25,911
 95,733 78,443

 Tons
 (US$000)

NO. HS Description 1998 1999

1604.11.100 Salmon in Airtight Containers 178 823
 481 2,256

1604.11.900 Salmon in Others Containers 240 31
 220 36

1604.13.100 Sardines, Sadinella and Brisling 83 357
 or Sparts in Airtight Containers
 71 333

1604.13.900 Sardines in Other Containers 42 23
 46 47

1604.14.100 Tuna, Skipjack and Bonito 38,886 35,768
 in Airtight Containers
 101,575 81,641

1605.10.100 Crab in Airtight Containers 2,188 2,223
 11,251 9,361

1605.10.900 Crab in Other Containers 39 50
 399 203

1605.90.100 Other Aquatic Invertebrates 573 933
 in Airtight Containers
 1,619 1,780

1605.90.900 Other Aquatic Invertebrates 46 641
 in Other Containers
 305 469

TOTAL 42,275 4,084
 115,967 96,126



Source: CBS/Data Consult

The United States and Japan were the main buyers of canned fish from Indonesia. The two countries contributed 64% to the total export volume and 69% to the total export volume. Other main buyers were Britain, Mideast countries, Holland and Germany.

Table - 5 Export growth of canned fish by destination countries, 1996 - 1999
 ('000 US$/Tons)

Country of Average
destination 1996 1997 1998 1999 (%/year)

Japan 7,734 7,855 10,609 11,220 14.13
 20,332 27,672 33,773 30,991 16.64

Saudi Arabia 370 1,044 798 1,170 68.41
 1,505 4,423 3,157 3,824 62.13

Jordan 719 632 1,066 1,607 35.77
 1,928 1,729 2,834 3,540 26.17

Egypt 1,604 1,181 3,865 1,935 50.32
 3,135 2,625 7,857 3,185 41.19

Australia 194 63 417 540 174.63
 635 152 1,399 1,231 244.11

United States 16,317 7,327 14,372 14,503 13.99
 49,860 23,123 41,933 35,921 4.46

Canada 662 324 513 75 -26.03
 1,734 769 1,302 137 -25.27

United Kingdom 5,305 4,962 4,883 3,325 -13.32
 10,856 11,771 10,520 5,561 -16.45

Netherlands 473 282 1,795 1,500 159.90
 1,454 822 4,259 3,100 115.82

Germany 1,574 918 1,461 2,030 18.81
 2,767 1,651 2,938 3,230 15.85

Others 1,301 1,323 2,496 2,944 36.10
 1,527 3,706 5,995 5,403 64.86

TOTAL 36,253 25,911 42,275 40,849 10.42
 95,733 78,443 115,967 96,123 4.22



Source: CBS

The average export price of canned fish decreased in the past four years, especially in 1999 when the price was US$2,350 per ton. The decrease was supposed of resulting from the sharp rupiah depreciation. Such a condition enables exporters to offer their production to buyers at a cheaper price in the US dollar.

The average export price of canned sugar destined for Saudi Arabia was higher than other countries. See the following table.

Table - 6 Average export prices of canned fish destined for countries, 1997-1999
 (US$/tons)

Country of 1997 1998 1999
destination

U S A 3,155.86 2,917.69 2,476.80
Japan 3,522.85 3,183.43 2,762.12
EnBland 2,372.23 2,154.41 1,672.48
Netherlands 2,914.89 2,372.70 2,066.67
Arab saudi 4,236.59 3,956.14 3,268.38



Source: CBS (data processed)

Imports decreasing

Indonesia is a major exporter of canned fish, but imports still continue. Indonesia imports canned fish from a number of countries mainly Malaysia, Australia, the United States and Japan. Among the imported brands are Del Monte, SW, heinz and Ayam Brand.

Imports of canned fish were lower than the exports. The imports ranged from US$ 1.5 - US$ 2.8 million per annum in the past four years, while the exports were around US$100 million per annum.

Table - 7 Import growth of canned fish by kinds, 1996-1999
NO HS DESCRIPTION 1996 1997

1604.11.100 Salmon in Airtight Containers 2 21
 5 50

1604.11.900 Salmon in Others Containers 4 0
 7 1

1604.13.100 Sardines, Sadinella and 84 133
 Brisling or Sparts in 139 181
 Airtight Containers

1604.13.900 Sardines in Other Containers 0 13
 0 16

1604.14.100 Tuna, Skipjack and Bonito in 325 445
 Airtight Containers 941 1,255

1605.10.100 Crab in Airtight Containers 90 36
 611 184

1605.10.900 Crab in Other Containers 0 45
 1 69

1605.90.100 Other Aquatic Invertebrates in 7 12
 Airtight Containers 24 23

1605.90.900 Other Aquatic Invertebrates 12 25
 in Other Containers 24 48

 TOTAL 525 730
 1,752 1,827

 (Ton/US$'000)

NO HS DESCRIPTION 1998 1999(*)

1604.11.100 Salmon in Airtight Containers 2 2
 3 4

1604.11.900 Salmon in Others Containers 5 1
 4 2

1604.13.100 Sardines, Sadinella and 84 121
 Brisling or Sparts in 78 161
 Airtight Containers

1604.13.900 Sardines in Other Containers 1 3
 1 8

1604.14.100 Tuna, Skipjack and Bonito in 961 213
 Airtight Containers 2,493 433

1605.10.100 Crab in Airtight Containers 26 69
 246 212

1605.10.900 Crab in Other Containers 30 7
 32 10

1605.90.100 Other Aquatic Invertebrates in 25 17
 Airtight Containers 9 10

1605.90.900 Other Aquatic Invertebrates 2 1
 in Other Containers 1 2

 TOTAL 1,136 434
 2,867 842



Note: (*) up to November;

Source: CBS

Domestic market dull

Indonesia's canned fish market grew slowly before the outbreak of the crisis because most of the consumers preferred fresh food, including fish and meat. The market share of the product continued to decrease to follow the crisis because the price was not affordable to low-and medium-income consumers. Producers also carried out no promotional activities to drive up the demand.

Producers launched only two new brands in the past ten years. Old brands continued to seize a large market share in the country. They were Botan, Ayam Brand, Pronasa and Maya. The export market promised brighter prospects for producers in the past three years.

Botan secures a strong foothold in the country's canned fish market. It is produced by PT Maya Muncar under a licence from Mitsui Co. The producer also markets its own brand, Maya, which also seizes a large market share.

Another local brand grabbing a large market share is Pronas, which is produced by PT Pangambengan Raya. The company also produces other products, like canned cornet beef. New brands sold in the country are Kokin produced by PT Kokin Indocan, ABC produced by PT Bambalangan Raya on the basis of order from PT Heinz ABC and Gaga produced by PT Karya Manunggal Prima Sukses on the basis of order from PT Jakarana Tama.

PT Medan Tropical Canning and Frozen Industries located in Medan also started to market canned tuna under a brand of Vinisi. The product is processed by using Indonesia's food prescriptions. Ayam Brand imported from Malaysia is a brand controlling a large market share in the country. The product distributed by PT Feretina is sold at a higher price than Indonesia's products, but its price remains lower than other imported brands.

Prices of canned fish are varying, dependent on kinds of fish and processing methods. Canned tuna is more expensive than canned mackarel and sardine. The price of canned sardine is the lowest among the three kinds.

PT Maya Muncar producing Botan and Maya recently started to raise the market share of its production by reducing the selling price, especially canned mackarel. In the hypermarket Carrefour, canned mackarel of Botan and Maya brands are sold at a price of Rp 4,690 and Rp 5,575 per can (425 gr) respectively. Prices of the same product of Gaga and Kokin brands are quoted at Rp 7,200 and Rp 7,025 per can respectively.

Table - 8 Brands and retail prices of canned fish in the country, September 2000
Producer/ Prices
Kinds of fish Brands Volume Kinds (Rp/unit)

1. TUNA

PT Maya Muncar Maya 185 Tuna Chunk in 7,100
 Vegetable oil

 185 Gulai Tuna 5,625

 185 Tuna dengan 5,490
 Bawang Bombay

 Sambal Goreng 6,740
 Tuna

 Tuna Rica-2 5,490

 Tuna kari 5,600

 Tuna pepes 6,750

 Botan 185 Tuna Flakes 7,650

PT Pangembangan Pronas 185 Tuna in Brine 9,700
Raya

Import Ayam 185 Tuna dalam 7,500
 brand air

PT Karya Gaga 185 Tuna sambel 4,500
Manunggal goreng
Prima Sukses

 Gaga 185 Tuna gulai 6,850

Heinz(Import) Green 180 Chunk in 18,000
 seas brine

 Green 190 Tuna for 20,125
 seas sandwich

2. IKAN
MACKEREL

Clout & KL Ayam Brand 425 Mackerel in 8,650
Sdn Bhd tomato sauce

PT Maya Muncar Botan 425 Mackerel in 4,690
 tomato sauce

 Maya 425 Mackerel in 5,575
 Tomato sauce

PT Karya Gaga 425 Mackerel in 7,200
Manunggal tomato sauce
Prima Sukses

PT Kokin Kokin 425 Mackerel in 7,075
Indocan tomato sauce

PT Blambangan ABC 425 Mackerel in 6,220
Raya tomato sauce
(PT Heinz ABC)

PT Maya Muncar Botan 155 Mackerel in 2,800
 tomato sauce

 Maya 155 Mackerel in 2,500
 tomato sauce

PT Kokin Kokin 155 Mackerel in 2,975
Indocan tomato sauced

Clout & KL Ayam Brand 155 Mackerel in 4,090
Sdn Bhd tomato

3. IKAN SARDIN

PT Maya Muncar Botan 425 Sardin in 4,700
 tomato sauce

 Maya 425 Sardin in 4,390
 tomato sauce

PT Karya Gaga 425 Sardine in 4,600
Manunggal tomato sauce
Prima Sukses

PT Kokin Kokin 425 Sardine in 4,250
Indocan tomato sauce

PT CIP CIP 425 Sardine in 4,090
 tomato sauce

Import Delmonte 425 Sardine in 21,990
 tomato sauce



Source: Careffour

Consumption remains low

Consumption of canned fish in Indonesia decreased sharply in the past three years. Indonesian people prefer to consume fresh fish because the product is easy to obtain, as a result of the big potential of fishery resources in the country. Moreover, the price of fresh fish is lower than canned fish.

Table - 9 Estimated consumption of canned fish in Indonesia
Year Exports Imports Production Consumption
 ('000 ton) ('000 ton) ('000 ton) ('000 ton)

1996 36.2 0.5 282.9 247.2
1997 25.9 0.7 254.6 229.4
1998 42.3 1.1 110.7 69.5
1999 40.8 0.4 100.8 60.4



Source: Data Consult

Per capita consumption of canned fish was around 0.29 kg per annum in 1998, while that of fresh fish was 20 kgs per annum. Canned mackarel and sardine contributed the largest portion to the total consumption of canned fish in Indonesia.

Fishery resources abundant

Indonesia has a great potential of fishery resources, as a result of the vast expanse of its waters which have a total areas of 5.6 million square meters with a coastal line of 81,000 kms in the length. A latest study carried out in 1991 show that Indonesia's waters have a sustained yield capacity of 6.1 million tons per annum, including 210,000 tons of tuna, 374,000 tons of skipjack and 127,000 tons of mackarel.

Table - 10 Sustained yield capacity of fish in Indonesia's waters, 1997
 Yielding potential
No. Kinds of fish (000 ton/year)

1 Large pelagiac fish 977
 * Big tuna 219
 * Skipjack 374
 * Spanish mackerel 127
 * Other tuna 205
 * Shark, Marlin, flaying fish and 52
 * sword fish
2 Small pelagice fish 3,224
3 Demersal fish 1.786
4 Shrimph 79
5 Coral fish 76
6 Decorative fish 1.5 billion heads
7 Squid 28
 Total 6.190



Source: KNPSSDIL

Out of the capacity, only 60 - 65% have been exploited. Indonesia's total production of seafish rose from 3.2 million tons in 1995 to 3.58 million tons in 1997 and 3.8 million tons in 1998. Tuna and skipjack contributed around 12% to the total output, while contributions of mackarel and sardine were 2% and 3% respectively.

Price of packaging becomes an obstacle

The price of containers made of tinplate continued to increase in the past two years because of the rise in the price of raw material (tinplate). The performance of can industry which has so far imported raw material at a low price is affected, a result of the imposition of provision anti dumping duty (BMADS) on tinplate imported from certain countries. Source at APIKI said that the industry has been heavily dependent on imported raw material because two third of the need for tinplate has been imported.

The provisional anti dumping duty is imposed on tinplate imported from Japan, Taiwan, Japan and South Korea with the tariff ranging from 4% to 68%. Tinplate imported from Australia is subjected to BMADS of 16.7%, while the tariffs of BMADS on the same product imported from Japan and Taiwan are set at 68% and 41% respectively. The tariff of tinplate from South Korea ranges from 4% to 6%, dependent on its producers.

The policy is certain to affect Indonesia's can producers, because the price of tinplate imported from those countries has so far been lower than local production. The fact also shows that several producers can use local production because of certain reasons, including technical specification.

The problem jolting the country's can producers also affects the performance of food industry, including fish canning industry, because the increase in selling price of cans need more capital to pile up stocks in the adequate quantity.

Table - 11 Technical specifications of cans used in fish canning industry
Imperial Metric(*) Normal Net Product
Dimensions equivalent contents
(0 x height) (0 x height) OZS Gr/cc

202 x 308 52 x 90 5.3 150 cc Sardines, Mackerel,
 Tomato Sauces
211 x 108 (D) 65 x 38 3.5 100 gr Single serve tuna
307 x 111 (D) 83 x 45 6.5 165 gr Tuna
307 x 112 (D) 83 x 45 6.5 185 gr Crab / Shrimp
307 x 113 83 x 46 6.5 185 gr Tuna/crab/shrimp
 baby clams
401 x 211 99 x 67 15.0 425 gr Tuna
603 x 408 153 x 114 66.5 2,000gr Tuna



Note: (*)) = metriac 0 internal plug, imperial 0 across the seams

D = 2 piece cans

OZS = 1oz = 28.349 gr;

Source: PT United Can

Table - 12 Technical specifications of tinplate used for fish cans
Thick Width Length Coating Weight temper
(mm)

0.19 800 854 2.8 # 25 T-4CA
0.20 794 943 5.6 # 50 T-4CA
0.20 855 715 5.6 # 50 T-4CA
0.23 800 854 2.8 # 25 T-4CA
! 5/6/2.8 # 50/25
 7.8 # 75
0.23 869 835 5.6 # 50 T-3
0.23 899 866 8.4/2.8 # 75/25 T-4CA
0.24 943 794 8.4/2.8 # 75/25
 8.4/5.6 # 75/50 T-4CA
0.22 840 835 5.6/2.8 # 50/25
 8.4/2.8 # 75/25 T-4CA
0.25 878 886 5.6 # 50, 5.6/2.8 T-4CA



Source: Data Consult

Conclusion and prospects

With a total production of 700,000 tons per annum, Indonesia's fish canning industry should not be affected by the domestic market demand of canned fish which remains small and continued to decrease, because the producers still have bright prospects to export their production. Yet, the problems jolting the industry can be understood. First, the economic crisis seriously destroyed basic structures of Indonesian economy. The impact of the crisis adversely affected the industry because many companies operating in the sector belong to business groups which are in financial trouble due to the crisis.

The industry basically use local resources, but raw material of containers used for packing their production remains dependent on imports.

Another problem results from the supply of raw material (fresh fish). Most of the supply is used for direct consumption and exports of fresh/frozen fish. The sharp rupiah depreciation has encouraged producers to raise their exports. To boost the growth of the industry, the government needs to pay greater attention to ensure the smooth supply of raw material. Harmonious partnership between fishermen and producers needs to be explored to overcome the shortage of supply. Foreign fishing ships should give opportunity to Indonesia's canned fish producers to buy their production.

Producers still have bright prospects to export their production because the product is needed in large quantity in countries. For example, the United States' imports of canned tune were 244,133 tons, worth US$ 110 million in 1998 and 211,336 tons, valued at US$145 million.

Domestic market demand for the product is most unlikely to increase in a short term because economic indicators improve slowly, especially if producers do not carry out promotional activities. In order to enable the consumption to reach the pre- crisis level, producers also need to reduce selling prices of their production so as to be affordable to the public at large.
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Publication:Indonesian Commercial Newsletter
Geographic Code:9INDO
Date:Oct 10, 2000
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