Export Leader Hangs On

If there has been a Samoa economic miracle, it is because business and government have focused on the basics. Like fish.

"Fish exports make up between 42 and 70 percent of the country's total exports," says Oloialii Koki Tuala, chief executive officer of Apia Export Fish Packers Ltd. "We ship fresh chilled fish to the U.S. and other markets, and frozen albacore tuna for the canneries in American Samoa. We also supply fishing equipment, bait, and ice to local fishermen."

Oloialii and two partners have been operating Apia Export Fish Packers for nine years. He's a former senior auditor with the Ministry of Agriculture, Forests and Fisheries, and was general manager of the government's shipping agency.

The company also manages 12, 11-meter-plus fishing vessels, 10 of which are licensed to fish in Samoan territorial waters and the other two work the Cook Islands waters. Apia Export Fish Packers also supplies and trains the Samoan crews for these boats, does the necessary engineering and maintenance, and sees to it that catches are handled according to very stringent international standards.

"We always look at the catches that come in and we give feedback to the skippers and crews about how they are handling product. The company audits each vessel for compliance with both international and local government safety and product quality standards. We set a very high standard for quality." They need to, and the skippers and crews know this, because the canneries or other buyers will reject a poorly handled catch.

Despite the company's diversification within this one economic sector, Samoa's fisheries industry is now hurting. Oloialii says tuna catches this year have dropped by 60 to 70 percent from last year's takes. "This is not just in Samoan waters," Oloialii adds, "it's all over the region. Fiji and the Cooks are experiencing the same thing."

Oloialii Tuala and his crew with container of flash-frozen fish ready for shipment.

What's happening?

According to Oloialii, no one really knows. "Some people say it's a result of El Niño damaging part of the food chain. But it doesn't seem like the fish just went somewhere else, if they did, no one's found where they are."

The really sensitive question that few people in the industry want to ask is: Is this due to overfishing?

"No one has a 100 percent answer. It could be overfishing, but no one has any evidence of that. There have always been up and down cycles in the fishing industry, but never before had the drop been so drastic, or for so long a period." But Oloialii says he doesn't think government has issued too many fishing licenses, as might be the case in some Pacific countries.

While the industry weathers this economic crisis, how is his company managing?

Oloialii says they have been extending credit to boat operators and the firm has not hired anyone in six months. Their own employees are also taking over some functions that were outsourced in better times.

"We're holding off on capital investment and we've controlling spending," Oloialii says, "And we try to hire some of the crewmembers off the boats when we have extra projects, so they can still survive."

Like other businesses in Samoa, Apia Export works closely with the government. The fishing sector, like agriculture and other commercial activities, develops an action plan for its industry along with the appropriate government ministries.

"We want to be part of the government's long-term action plan," Oloialii says. And to do this, he and his partners work closely with the Fisheries Division of the Ministry of Agriculture, Forestry and Fisheries. The fishing industry is hoping to get improvements in docking and berthing facilities. With refrigeration crucial, and large ice-making machines on hand, the company also has an investment in the quality of the local power grid. Just in case, though, they always have large backup generators on hand.

There is no telling what next year's fishing will be like. People in the industry are praying it will not be worse than this year. Yet on a limited production regime, Apia Export is surviving with its diversified income stream, its skilled management and its dedicated employees.