Ananya Roy, Straits Times 10 Mar 09;
SINGAPORE-LISTED China Fishery Group (CFGL) will target African consumers in the year ahead.
Mr Ng Joo Siang, the industrial fishing company's group managing director, told The Straits Times that CFGL's South Pacific operation will focus on catching the Chilean jack mackerel primarily for the African market, where he sees 'huge demand for the species'.
CFGL is investing about US$100 million (S$155.2 million) over four years - ending next year - on buying, converting, upgrading and chartering vessels for its South Pacific operations. Catches will go to countries such as Nigeria and the Ivory Coast.
The company also plans to move some of its vessels from the North Pacific, where a fleet of 23 currently operates, to the South Pacific.
'Some of the vessels in the North are not operating to full capacity,' said Mr Ng. 'We will reduce the fleet size there and put 10 vessels from the North, along with five chartered and one new vessel, in the South Pacific.'
This year will be the company's maiden year of operations in the South Pacific Ocean, where it is set to become a member of the South Pacific Regional Fisheries Management Organisation.
Singapore is not a member of the body, which was established in 2006 to ensure the long-term sustainable use of fish stocks, so CFGL will gain membership via Russia.
Despite the downturn, CFGL posted a 6.5 per cent rise in net profit to US$94.3 million for the financial year ending Dec 31 last year.
High oil prices dented its results last year, but operating costs are expected to come down substantially this year because of falling oil prices.
Mr Ng forecasts that demand for fish will remain buoyant despite the current economic slump. Although people will dine out less, they will continue to eat at fast-food joints and will increasingly buy raw fish to cook at home.
He added: 'Consumers are increasingly looking at fish as the healthier choice, and population is also increasing. So the demand for fish has not waned. In fact, it is going up - especially for the low-cost fish, which CFGL provides.'
Currently, the China market is the biggest contributor to the company's earnings.
