The performance of anned tuna suppliers is highly dependent on the availability of tuna itself. They supply raw materials to manufacturers. However, what has recently happened is that the supply of raw materials for canned tuna is thinning, whereas the market demand for canned tuna products continues to increase. This makes the producer’s ability to meet market demand to be limited.
Main Cause Of Anned Tuna Production Declining
Several tuna cannery companies have shown an increase in export demand since early 2018. Nevertheless, the productivity of tuna cannery factories is declining. This is mainly due to the decline in the supply of raw materials for production, namely fresh tuna. In fact, as already mentioned, market demand for canned tuna is showing a positive trend. Demand for European and US markets, for example, jumped by 30 percent from the previous year’s demand.
Inevitably this also confuses the anned tuna suppliers, because they also cannot meet the demand of local markets, especially from supermarkets or retailers. Moreover, the local market actually has a high potential as a target of canned tuna marketing because there are still many people who like canned food, especially canned tuna.
After further exploring, the cause of the difficulty of obtaining raw materials is the enactment of tightened transshipment regulations. This is exacerbated by the process of granting fishing permits that can take months to the extent that the authority promises that the issuance of the permit can be completed within only 5 days.
Thus, canned tuna producers hope that the government can help solve the problem by softening the regulations that disrupt the stability of the tuna market. The same thing is expected by the anned tuna suppliers as well. By alleviating the prevailing regulations, it is expected that the canned tuna business can return to normal, which in turn will have a positive impact on the country’s income.