Tuna price unchanged over low market price, MIFCO says

MIFCO has decided to change the purchase price of tuna in accordance with the market price, but the price of tuna in the world market has not changed since then, the company said on Monday.

MIFCO has decided to fix the purchase price of tuna every week since last July. The price is determined based on the price of tuna in the foreign market and the cost of buying and exporting the tuna, MIFCO said at the time.

MIFCO said on Monday it changed the purchase price of tuna at a time when fishing is also very low and despite the decline in tuna prices in the world market since then, MIFCO is trying to keep the purchase price of tuna unchanged.

The company said when the price of tuna was changed, the purchase price of tuna was MVR 16 but it was not sustainable. Currently, they are working to keep the price of tuna at MVR 16 until the price improves in the market.

MIFCO will take every opportunity to bring about a positive change in tuna prices based on the models used to monitor world market prices. The company said it is in discussions with the relevant authorities.

MIFCO also added that the amount of tuna weighed for MIFCO this year is 42% lower than the same period last year and Maldives’s fishing is very low during this period. The price of frozen tuna shipments has dropped significantly.

Earlier, the government paid between MVR 20 million and MVR 25 million per month as subsidy to MIFCO.

The company still needs government subsidies to keep the price of tuna at a certain level. The company has been facing severe cash flow constraints due to the government's cash flow constraints and the slowdown in fisheries.

“Even if MIFCO has to sell tuna at a loss at the rate of MVR 16 for the sake of fishermen, it cannot be done permanently without subsidy,” MIFCO said.

"If the price of tuna in the international market in the future, there will be no choice but to reduce the purchase price per kilo of tuna. Therefore, the best option for MIFCO and the industry at the moment is to wait until we see a positive change in the price of tuna in the international market.” 

MIFCO also said that although some private factories are buying tuna at higher rates than MIFCO for processing, MIFCO exports 80% of the tuna it buys as raw material.

At a time when the price of tuna is declining in the world market, a positive change in the price of tuna will not be sustainable, the company said.

MIFCO said the Lh. Felivaru canary alone cannot afford to buy tuna at the high price it needs.

This is a year in which fishing has declined and with three months to go until the end of the year, MIFCO has weighed 26,000 tonnes of tuna so far.

MIFCO produces an average of 67,000 tonnes of tuna per year. Last year, MIFCO weighed 72,000 tonnes.