In a disclosure to the Philippine Stock Exchange on Thursday, Alliance said its Indonesian subsidiary PT International Alliance Food Indonesia (PTIAFI) had “just achieved a major breakthrough in achieving self-sufficiency in terms of raw fish supply” with the setting up of a new unit that has obtained allocation for capture finishing within Indonesia’s exclusive economic zone.

The new subsidiary set up by Alliance’s Indonesian unit is called PT Van De Zee. It is 80-percent owned by Alliance, representing the maximum holding allowed for foreigners under Indonesian capture finishing laws.

“PT Van de Zee will be operated in integration with the tuna processing activities of PTIAFI thus making it the first foreign investment company to be granted a capture fishing license and allocation in the rich fishing grounds of Indonesia,” Alliance spokesperson Rajat Balain said.

Indonesia’s Ministry of Fisheries and Marine Resources has accepted from PT Van de Zee its fees for an initial allocation of 5,000 metric tons for 2012. Conditional on the fulfillment of its five-year vessel acquisition program, PT Van de Zee has a potential allocation of 30,000 metric tons of 2016.

“This means that by that year, PT Van de Zee would be able to fully support a 100-percent capacity utilization of PTIAFI’s processing plant, which has a capacity of 90 metric tons per day,” Balain said.

Such allocation, Balain said, would not only give the Indonesian unit a very high competitive advantage in an industry whose biggest challenge has been to access raw material resource.

He added that PT Van de Zee itself would likely boost the overall value of the Alliance Group as its optimum yield of 30,000 metric tons per year would translate to an annual gross revenue of $66 million based on the present value of $2,200 per metric ton.

This development suggests that the production out of Indonesia can exceed Alliance’s production in General Santos, Philippines.

By: Doris C. Dumlao
Philippine Daily Inquirer

Alliance Select purchased 500,000 PT International Alliance Foods Indonesia (IAFI) shares from fishing firm PT Wailan Pratama for $500,000, increasing the listed firm’s stake in IAFI to 99.98% from 89.98%, the disclosure stated.

“Alliance Select feels that Indonesia will play a crucial role in the company’s future growth and profitability. The country is extremely rich in marine resources and full control of IAFI will enable it to better plan production schedules and sales strategy to tap additional export markets around the globe,” the firm said.

The share purchase is expected to be approved by the Indonesia Investment Coordinating Board and the Department of Law and Human Rights “in the next few days” in accordance to Indonesian law, the disclosure added.

This comes as the company is looking to expand its presence in the Asian region this year.

Last November, Alliance Select said it was looking to begin shipping salmon to South Korea this year via subsidiary Big Glory Bay Salmon and Seafood Co. to service demand from large supermarket chains.

Salmon product exports are also being eyed to markets like Hong Kong, Singapore, Japan, China, and Malaysia, as salmon and tuna sales are expected to contribute to a double-digit revenue growth for the company this year, an earlier report said.

Alliance Select, formerly Alliance Tuna International, Inc., was incorporated in 2003 and began commercial operations in General Santos City in 2004, engaging in tuna processing, canning, and the export of canned tuna products to Europe and North America.

It is registered with the Trade department’s Board of Investments as a new canned tuna exporter and operates a General Santos City plant with a rated production capacity of 140 metric tons per day.

The company booked a comprehensive loss for the January to September last year amounting to $959,455, reversing a net profit of $766,549 in 2010 levels on the back of acquisition expenses.

Revenues dipped by 3.03% to $32.02 million from P33.48 million, while manufacturing and sales costs fell by 6.90% to $27.55 million versus P29.85 million, year-on-year, according to its latest financial statement.

It expects to swing to profit for the second half last year on the back of a 5 to 6% sales boost due to healthy revenues from holiday sales, the company earlier said.

Shares of Alliance Select declined by 0.69% to P1.44 yesterday from P1.45 on Wednesday.

-Franz Jonathan G. de la Fuente Businessworld

FISH EXPORTER Alliance Select Foods International Inc. expects salmon to account for a larger bulk of its revenues this year, with subsidiary Big Glory Bay Salmon and Seafood Co. planning to increase shipments to markets in Asia.
“Salmon sales will create [sic] a significant push for [2012] because Big Glory Bay will have been in operation for 12 months,” Rajat Balain, Alliance Select’s assistant vice-president for corporate planning said in phone interview two weeks ago.

Mr. Balain had said that revenues from salmon were not a major driver for 2011 sales since Big Glory Bay started operations just last August.

“Salmon sales will contribute one-fourth to one-third of the company’s sales,” he said, noting however that tuna sales should fare well too.

Export ventures of the company will also focus on Asia since there is more market opportunity in the region, rather than markets in the West, where the firm has already established a network with suppliers and producers.

Earlier, Mr. Balain said that the company would be shipping its first smoked salmon order to South Korea this month, and is looking at opportunities in China, and Malaysia and Indonesia.

Salmon processed by its subsidiary comes from New Zealand.

Alliance Select, formerly Alliance Tuna International, Inc., recorded a net loss of $1.44 million in the third quarter of 2011, 227% bigger than 2010’s $380,208 loss, according to its latest financial report, as the firm bankrolled acquisitions. The nine-month net loss totaled $959 million, a reversal from 2010’s $766,549 profit. — C. H. C. Venzon

www.bworldonline.com

Alan Spence came to the shores of America in 1989 and founded Spence & Co., Ltd. He came with a lifetime of experience as a salmon smoker and an enduring love of the ocean fostered by the years as a fishing boat captain. This has given him a unique perspective as both fisherman and processor. Together with his expertise and the very latest high-tech equipment, Spence & Co., Ltd. has developed a reputation for high quality and consistency that has ensured an expanding and well-regarded name in the smoked fish industry in the USA and Europe.
Spence & Co., Ltd. specializes in the production of smoked salmon and seafood, created in the Scottish tradition. We begin with fresh Atlantic salmon (Salmo Salar), farm raised to ensure the continuation of wild stocks. The fish is then masterfully smoked over oakwood, as our ancestors did along the rivers and estuaries of Scotland.

Operating out of our custom-designed and built smokehouse, Spence & Co., Ltd. has brought this age-old tradition into the 21st Century. Our state of the art smokers, imported from the UK, meet our twin goals of efficiency and authenticity. Our plant, conveniently located South of Boston, has excellent access to major highways, Boston’s Logan International Airport and the seaport.

Satisfied customers know that each taste of our premium products demonstrates how Spence & Co., Ltd. succeeds in honoring the past and preserving tradition with contemporary flavor and modern service.

We trust you will enjoy browsing through our site, and hope that you are tempted by our wide selection of quality products. Please don’t hesitate to contact us to answer any questions you may have.

Lang May Yer Lumb Reek

Established in 2005, the Bangkok office serves as a great asset to sales and distribution, as it utilizes the network of buyers and brokers who use Thailand as a base to buy canned tuna and other goods.Furthermore, its Marketing team also works closely with the Marketing team in Manila, providing the company with an excellent regional insight on the industry.

P.T. INTERNATIONAL ALLIANCE FOOD INDONESIA has access to the rich tuna fishing grounds in the world’s largest archipelago. The production plant has a capacity of 60 metric tons per day, with another 20 metric tons per day for frozen loins and other marine products.

Images from the Plant

Back to “Tipping the Scale”

When was the last time you sat down and enjoyed some fresh, delicious salmon?

Knowing full well the great demand for this premium product worldwide, Alliance has invested in Prime Foods NZ Ltd. (PFNZ), a leading gourmet company that produces high quality smoked King Salmon for the food service and retail industries.

A Local Industry Leader

PFNZ produces award-winning smoked salmon and mussel products that continuously delight both buyers and consumers around the world.

Prime Location

The smoked seafood factory is located in the village of Hororata, Canterbury, nestled under the Southern Alps of New Zealand’s beautiful South Island. You can rest assured that PFNZ’s salmon and mussels are fresh and clean, as its strategic location in the South Island allows strong currents from the Southern Ocean to refresh the area continually.

Want to find out more about PFNZ and its products?

Click here to view PFNZ’s website

Images of the Plant and Products

FDCP Incorporated

FDCP Inc. is our state-of-the-art can manufacturing facility. As one of the most modern in the Philippines, it provides us with an uninterrupted supply of sanitary packaging materials. The can manufacturing plant produces 2-piece and 3-piece cans to serve our retail and food service customers.

Our processing plant for canned tuna is located in General Santos City. We employ 2,000 workers who help us fulfill our production capacity of 140 metric tons per day.

Our factory is strategically located in the “Tuna Highway”, the Western Central Pacific Ocean, where 48 percent of the world’s tuna is harvested. This allows us to provide our customers with the freshest fish, at the most competitive prices.

BGB Salmon and Seafood, a joint venture between Alliance and PFNZ, is presently under construction in General Santos City, Philippines and will be up and running at the end of the year. The plant will be producing smoked salmon from New Zealand and Norway, at a capacity of 600 MT per year. These products will all be exported, widening our global reach.

View Photos of the Plant

General Santos Tuna Processing Plant

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