FOR TUNA CANNERY
There is a great future and a growing demand
for canning and processing tuna. A state of the art tuna cannery,
if designed and managed properly, can be highly profitable.
The following is for your review and interest.
The tuna canning industry is highly successful
in the South Pacific and East Asia due to its low labor rates,
raw tuna supply, low overheads, low freight rates etc. Nearly
70% of the world tuna supply comes from the Western Pacific
Oceans which surrounds most of the East Asia and South Pacific
countries. The largest exporter of canned tuna in the world
is Thailand with over 21 million cases worth about $608 million
per year. The Philippines is second with over 6 million cases
worth about $130 million per year. Indonesia is third with
over 3.5 million cases worth about $100 million per year.
The total world import demand is over 56 million cases per
year. The European Union is the largest importer with over
36 million cases per year with the USA second with over 11
million cases per year. The demand for canned tuna is growing
substantially at more than 5% each year.
There are several tuna canneries in the South
Pacific that have been taking full advantage of the rich natural
resources of the surrounding oceans. I have worked at several
of these tuna canneries and know that with good management,
it can be highly profitable. American Samoa has 2 large tuna
canneries owned by USA companies that have been highly profitable
every year. They have been operating for more than 25 years.
I managed Starkist Samoa for 4.5 years and know that this
cannery is very profitable. Papua New Guinea has 1 tuna cannery
owned by a Philippine company. I worked at this cannery for
1 year and made them very profitable. It is a small tuna cannery
processing 120 tons a day and their net profit exceeded over
$7 million. Now there are 2 new tuna canneries that just started
operating and one other is now under construction. The Fijian
government had a joint venture with a Japanese company and
they built a tuna cannery that was doing poorly until recently
when they were contracted with a large USA tuna company. The
tuna cannery in Fiji is now fully owned by the government.
The Solomon Islands has a tuna cannery but due to the recent
governmental problems, it has not done well. Thailand is the
largest and most successful with several large tuna canneries,
while the Philippines and Indonesia share a similar success.
I have worked at tuna canneries in these countries and know
that it is a profitable industry.
Many countries in East Asia and in the South
Pacific, with vast coastlines are strategically located in
an excellent tuna processing area. Most are actually very
close to fishing grounds and better located for numerous shipping
lines. Indonesia has a unique natural resource of having one
of the best albacore fishing grounds in the world. Albacore
is the most expensive specie of tuna and is the most profitable.
A state of the art tuna cannery capable of processing 50-100
metric tons per day would be highly successful and very profitable
in any of these countries in South East Asia. It would generate
substantial income and it would also provide employment for
1,000-1,500 workers. In addition to canned tuna, the by-product
from the fish waste is made into fish meal. Fish meal is made
into animal feed and would provide agricultural benefits and
livestock needs. The fish oil can also be extracted. Tuna
oil is high in Omega 3 Fatty acids which is sought after for
its health benefits. In addition to the income generated by
the tuna cannery, there would be opportunity for many different
support industries such as boarding houses for the workers,
restaurants, department stores, shopping malls, equipment
fabricators, contractors, etc. An entire infrastructure would
be created that would provide a well balanced economy. This
tuna cannery would substantially contribute to the entire
countries economy for the short and long term. In addition
to serving canned tuna to the world export market, there is
also a high potential for developing canned tuna products
specifically for the local market. This alone can substantially
increase the overall net profit of this cannery. The following
is a brief list of economic benefits in having a tuna cannery.
- Net profit from the cannery would be several
millions $ annually.
- Provide employment for 1,000-1,500 cannery
workers. Would be one of the largest employers in the country.
- Would be one of the largest user and buyer
- Industrial fisheries services such as stevedoring,
agencies, ship repair, supplies, etc. would provide additional
revenue and employment for more than 1,000 workers.
- More shipping lines would move in to provide
transportation to and from other countries.
- There would be more than 1,000 plus fishermen
with full employment.
- Additional income from fishing licenses for
access agreements that allow foreign owned vessels to fish
in surrounding waters.
- Development of restaurants, stores, shopping
malls, housing, etc., as provision to all of the workers
in the new industries.
- Provide a lowcost canned tuna product for
the local market.
- An entire infrastructure would be developed.
These are a few of the major economic benefits
that a single tuna cannery can create if planned and designed
Many of the countries are very suitable for
having a tuna cannery, especially countries that qualify for
duty free status to EU(European Union) and the USA. The duty
for the EU is 24% and is normally paid by the buyers. The
USA has a duty of 12%. The duty is normally split between
the buyer and producer and this would be an additional profit
Below is a list of East Asian countries with
- Philippines: Has
7 successful tuna canneries operating. The fishing companies
and infrastructure is well established. Although not ACP,
still profitable business and a new cannery would not affect
the competition here.
- Viet Nam: Only 2
small tuna canneries in operation. The country is quickly
developing and a state of the art tuna cannery would do
very well here. Although not an ACP country, it would compete
with the tuna canneries in Thailand but would have more
- Fiji: This is an
ACP country and has only 1 tuna cannery operated by the
government. They have a contract with a large USA tuna company(Bumble
Bee) so most of the production is going to the USA. They
are not taking advantage of the EU duty free status. A state
of the art tuna cannery that exports only to EU countries
would be highly profitable.
- Solomon Islands: Also an
ACP country and has 1 tuna cannery that is not doing very
well and is operated/owned by the government. Due to the
unstable peace and order, would not suggest this location.
- Indonesia: Has more than
10 small tuna canneries but only a few are doing well, due
to lack of tuna canning experience, technology, and management.
Can potentially compete with Thailand due to its rich albacore
and tuna fishing grounds.
- Papua New Guinea: ACP country
and will have 3 tuna canneries by the end of this year.
Things move very slowly with the government and might take
time for all the approvals for another tuna cannery but
still it is very profitable.
- Thailand: The largest tuna
producer and exporter of canned tuna in Asia with more than
25 major tuna canneries. The most successful and well established
of all the countries.
- China: Just starting to
develop as a tuna processor with 2 small tuna canneries.
- American Samoa: There are
2 large tuna canneries owned by Starkist and Chicken of
the Sea. Since this is a territory of the USA, all products
are for USA and have some tax exemptions. Labor rates are
high but the canneries are very successful.
A small but highly efficient tuna cannery in
any of the East Asia or South Pacific countries can be very
profitable and rewarding for the investors and economy of
the country. Countries in other geographical locations can
also be very profitable but must be studied and well planned
I would like to propose to design, build, and
manage this tuna cannery for a group of prominent investors.
My credentials and past achievements would fully qualify me
as the ideal candidate for this project.
I am a highly successful consultant with 30
years of tuna processing experience. My expertise is making
tuna canneries very profitable. I have a proven track record
in the USA(Starkist in American Samoa), Thailand(Thai Union/Songkla
Canning), Korea(Dongwon Industries), the Philippines(Century
Canning, PhilBest Canning), Papua New Guinea(RD Tuna Canners),
and Indonesia. I have made all of these companies very profitable
through my expertise of management and technical processing.
My experience and success in tuna, seafood,
and pet food operations includes the following. I spent 17
years with Starkist Seafoods which is the largest tuna processor
in the world. My contributions at Starkist are substantial
and include over $36 million in annual savings from raw fish
yields, labor reduction, process improvements and others.
These savings are what kept Starkist number one and allowed
them to remain competitive with Thailand. I also worked 3
years for Thai Union Manufacturing and Songkla Canning located
in Thailand which is the 2nd largest tuna processor in the
world. Again my success was over $10 million in annual savings.
Century Canning is the largest tuna processor in the Philippines,
and Dongwon the largest in Korea. I also worked for the RD
Group which owns PhilBest Canning Corporation in the Philippines
and RD Tuna Canners in Papua New Guinea. In Indonesia, I made
significant improvement to the processing for increased profitability.
All of these companies became very profitable using my consulting.
My experience covers many different countries throughout the
world. All of my work was with the largest and most successful
tuna companies in the world.
As a professional in the seafood industry, my
expertise includes the following:
- Plant construction and design
- Management and organization
- Sales and Marketing
- Fish Procurement
- Quality Assurance
- Maximize yields and labor/equipment efficiency
- Maximize cost effectiveness and profitability
- Technical processing and product quality
- HACCP, GMP
- Technical Services
My success includes improvements which highly
contribute to profitability. These achievements include substantial
savings from raw material recovery/yields, labor reduction,
process improvement, and other major cost effective areas.
I look at the full scope of the company and focus on raw fish
supply, marketing, operations, and quality control. I emphasize
team work which creates a well organized working environment.
This will contribute to substantial improvements in the general
operation. My American management skills allow me to introduce
standard operating procedures and systematic methods which
make any operation far more efficient. My thorough understanding
of each countries culture has contributed to my success.
There are many opportunities to maximize the
cost effectiveness of any manufacturing operation, especially
processing/production. My success shows that I can make significant
contributions in optimizing the operation which will result
in substantial financial savings and will highly impact profitability.
In order to become reputable, and a leader
in the tuna industry, it takes more than just building a plant
or acquiring existing tuna canneries. Many large companies
had a vision of becoming the largest and best tuna processor
in the world and ended up in failure. They flourished and
then failed due to inexperience, over confidence, and mismanagement.
Classic examples are Unicord in Thailand and First Dominion
in the Philippines. Both of these were the largest tuna processors
in Asia at the peak of their success, then later went bankrupt.
From my vast experience and knowledge, I know what it takes
to be successful and to be the most reputable and profitable
in the world. In addition, I know how to sustain this success
over the long term and to provide steady growth in future
I would be fully dedicated to this tuna cannery
project for a long term business involvement that would be
5-10 years. I hope that you will seriously consider this project
due to its significant economic impact and high profitability.
I have enclosed some background information
on myself including, a resume and referral letters from past
I look forward to hearing from you soon.
USA Cellphone (714) 7265670
Fax: (714) 8422854
Or Email: email@example.com
Mr. Don Hosokawa
P.O. Box 6201
Huntington Beach, CA 92615, USA