President: Company reeling in K3m profit

 By GYNNIE KERO

SOUTH Seas Tuna Corporation (SSTC) is making millions in revenue from its fishmeal exports, managing director and president Mike McCulley says.

McCulley said the corporation was making US$3.3 million (K8.75 million) per annum, depending on the world market conditions.

Fishmeal is a commercial product made from fish and the bones and offal from processed fish used for animal feed.

It is a nutrient-rich and high-protein supplement feed ingredient that stores well, and is used primarily in diets for domestic animals and sometimes as a high-quality organic fertiliser

In its initial operational years, SSTC was producing fishmeal to sell to local feed producers in Lae, Morobe.

However, the company has shifted its focus by exporting the product to the Australian market.

“Occasionally we sell some to local feed producers in Lae, but in recent years 100% has been exported.

“At least 95% is sold to Australian customers, and occasionally we sell a load to China. Annual revenue from fishmeal varies from US$2 million to US$3.3 million depending on world market conditions,” he said.

For tuna exports, most of SSTC’s market is in Europe.

The company exported 95% of the 22,545 tons of frozen precooked loins to European customers last year.

The remaining 5% was shipped to Southeast Asian Customers.

McCulley said all tonnage of tuna shipment was white meat.

SSTC has spent nearly K4 million this year to improve its operational capacity.