The Philippine Government lifted the ban on the import of Broodstock and cultivation of the vannamei in the Philippines with the signing at 11:45 am today 8 January 2007 by Agriculture Secretary Arthur Yap of the Fisheries and Administrative Order (FAO) No 225. This move will revive the aquaculture shrimp industry in the Philippines that had withered to a mere 20,000 mt of black tiger production per annum (vs official government statistics of 38,000 mt) leaving a lot of abandoned ponds or expensive shrimp ponds converting to extensive milkfish or tilapia production.

We expect that production nationwide will increase rapidly. Initial output will be first aborbed by the domestic market as local ex pond prices drop from a current Php350-430 ($7.00-$8.60) per kg for 20 gram animals and Php280-350 ($5.60 to $7.00) per kg for 15 gram animals. The numbers needed for exports to kick will be at Php175 ($3.50) and Php145 ($2.90) respectively. This production for the domestic market should be increasingly available from May onwards and exports for sure will commence by the end of the 3rd quarter 2007.

Initially mainly block frozen product will be produced as the approximately 21 shrimp exporting plants have not modernized and have survived on a mere 2 tons a day of primarily HO Japan production. Four plants claim to have IQF equipment either installed or coming or mothballed from way back when most of these plants have been supplying 90% to either the Japanese or Korean Head On markets and know very little about other product forms, markets, recoveries, yields, packaging and costings. So they will start slowly but surely.

Mida has been in this market since 1990 when it was first started incorporated as a buyer in the region for ConAgra/Singleton Seafood. Mida Trade since expanded its client base across the United States, Europe, Australia and North Asia though we serviced these buyer needs more from Indonesia than the Philippines, In 1997 Mida established its local distribution company buying imported and local frozen seafood to sell directly to over 1000 hotels and restaurants in the Philippines through its own fleet of reefer trucks and its own cold storage facilities. Because of this Mida offers Philippine plants access to both the local and international markets. It has over 100 employees is well placed and connected in the local seafood industry to effectively represent buyers who want to capitalize on the soon-to-be active buying opportunity from a new non-tariff shrimp source.

Mida Trade’s and Mida Food’s Managing Director Chingling Tanco has served for the last 2 years as chair of the local Philippine Fisheries and Aquaculture Board and headed their advocacy for the lifting of this ban on the vannamei for the last two years. Today we celebrate the success of the lifting of the ban for many many many reasons – especially the rewards of her efforts and time spent battling local politics and misguided policies. It also has established Miss Tanco and Mida one of the key players and movers in the industry – from Hatchery operators to Pond owners to Processing plants.