Pacific Andes processing facilities. (Photo Credit: Pacific Andes)

Pacific Andes sorts out challenges and looks up again

After facing difficulties for three years, Pacific Andes International Holdings, one of the largest seafood companies worldwide, says it is ready to start consolidating its numerous acquisitions and streamlining operations.

The Group was affected by political issues in Russia, where the company was investigated for monopoly activities, a hostile takeover for a major Peruvian fishing company, and a substantial amount of debt, which caused investors in its two Singapore-listed entities, China Fishery Group and Pacific Andes Resources Development (PARD), to stop their operations.

"I'm glad to say that all these are over. We have removed most of the bad news. We solved the Russian issue by terminating the long-term supply agreements. We paid off USD 250 million of our most expensive debt," the Group's managing director Ng Joo Siang told The Business Times in an interview.

The Group was affected by the challenges one of its subsidiaries -- China Fishery -- had to face.

A Group’s spokesperson pointed out that after acquiring the Peruvian firm Copeinca, China Fishery incurred into debt. However, it became the largest fish player in Peru.

Referring to China Fishery's business, Ng Joo Siang, Vice-Chairman and Managing Director of Pacific Andes explained The Business Times that what affects the Group’s subsidiary is a mix of weather effects as well as regulatory risks, given its operations across international waters and multiple jurisdictions.

The El Niño weather phenomenon caused warmer ocean waters off Peru, resulting in dispersed fish populations last year, which caused a yield of only 61 per cent of the firm's Peru fishing quota in the April to July fishing season.

El Niño does not seem to be as big a deal this year so far and the company had already caught 85 per cent of its Peruvian quota of the "A" season, which ends in July.

Siang stressed that fish prices are now apparently so good that Russian firms, which owe China Fishery prepayment refunds after the termination of long-term supply agreements, are expected to pay the firm back this month for an installment originally due in September.

Meanwhile, Pacific Andes executives expressed hopes after considering that aquaculture is expected to play a bigger role in providing seafood for human consumption and the fact that despite a slowdown in the Chinese economy and overcapacity in many sectors, the demand for fishmeal has not gone down.

"China is the world's largest consumer of fish, and will continue to be. People need to eat. The Chinese want to have a better life," Siang concluded.

Related article:

- Pacific Andes posts lower performance in its first quarter  

[email protected]
www.seafood.media

Address:	Room 3201-3215 Hong Kong Plaza 188 Connaught Road West
City:	Hong Kong
Country:	Singapore
Phone:	+65 225 470 168
Fax:	+65 228 582 764
E-Mail:	[email protected]
More about:

Print