50 556 MT

51 410 MT
US$ 68  868 Million

Shrimp, tuna, sharksfin, beche-de-mer

USA, Japan, USA, Taiwan, Philippines, Hong Kong

PNG Fisheries Overview

 Papua New Guinea has an extensive and valuable fisheries sector ranging from inland river to lakes and oxbows, fisheries, aquaculture, coastal beche-de-mer and reef fisheries to the prawn trawl and large-scale deepwater tuna fisheries. The range of participants covers artisanal community to medium sized domestic prawn and tuna longline operators to large international purse seine fleets in the deepwater tuna fishery.

The PNG fisheries zone of 2.4 million square kilometers is the largest in the South Pacific. The fisheries zone includes an extended reef system, numerous islands and an extensive coastline. These create huge opportunities but also present an enormous challenge for monitoring and control.

The total market value of PNG catch is estimated at K350 to K400 million on average although information on the true value of artisanal fisheries is difficult to obtain and cyclical factors and commodity price movements, especially tuna, because huge value swings from year to year. It is believed that there is significant potential to increase the economic value returns to PNG of these fisheries through better management and development programs.

Export earnings are important, but the importance of fisheries to the local markets and subsistence economy is also of major importance to the PNG people and economy. Reliable data on these markets is not available.

Access fees from deepwater fishing nations currently form the bulk of the revenues received and managed by the National Fisheries Authority. Other sources include license fees from other operators, assistance from donors and penalties arising from prosecutions under the Fisheries Management Act.

 Tuna is the largest of PNG fisheries and represents a balance of both domestic industry development and Foreign (DWFN) Access arrangements. The fishery is primarily based on the skipjack and yellowfin fish species with smaller quantities of bigeye and albacore.

The fishery is guided by a National Tuna Fishery Management Plan, which establishes an overall management structure and an application framework for the longline, purse seine and pole and line fisheries, including license limits and total allowable catches. PNG has embarked on onshore investments in the tuna fishery and as a result foreign and domestic access by purse seine vessels is increasingly linked to commitment to onshore investment, preferably in the form of tuna processing.

Tuna is found through out the PNG fisheries zone but especially to the north and east. As tunas are a migratory species moving from area to area depending on climatic conditions, the quantity found in the PNG zone may vary significantly form year to year. A regional approach to managing tuna is therefore important and PNG is a party to a number of bilateral and multilateral arrangements for this purpose.

Catch is usually about 150,000mt to 200,000mt per year but it is estimated that the resource can sustain much higher annual catches of 250,00mt to 300,000mt. The potential market value is about K1 billion depending on the commodity price. Catch from PNG waters accounts for 20-30% of the regional catch and is about 10% of the global catch. There is now concern that yellowfin and bigeye tuna may be nearing an over fished state.

In the recent past, catch trend by vessel category has changed, such that 60% is now caught by vessels associated with onshore investments in PNG and the other 40% is caught by foreign purse seine vessels who used to catch most of the tuna.

PNG currently has access agreements with Taiwan , Korea , Philippines and China and is negotiated on an annual basis. A multilateral treaty arrangement currently exists with USA . These establish the number of vessel allowed to enter the fishery and the access fees payable. Usually about 130 foreign purse seine vessels fish in PNG waters each year, but this is now decreasing as some are associated with the onshore investments in PNG and are fishing under the FSM arrangement.

Tuna product is exported in the form of fresh chilled, canned, fishmeal and frozen tuna. Chilled tuna is air freighted to the sashimi market in Japan . Frozen tuna is exported to Philippines and Taiwan , canned tuna mainly to USA , Germany and Great Britain with small quantities to the Melanesian Spearhead Group countries and fishmeal to Australia and Japan . More than 10,000mt of canned tuna is consumed locally per year. Export value is now about K200 million, a 100% increase from K100 million in 1999. This excludes catch by foreign vessels which pay access fees and take fish to overseas processors.

Resource management is a key factor in fisheries and in this regard PNG has one of the largest observer programs in the region to collect data for management purposes. The programme has 87 trained observers who work on tuna vessels. They also cover non-tuna fishery vessels such as the prawn vessels, shark longline vessels, hand line vessels and those doing trial fishing. Observer coverage on purse seine vessels involved in the mother ship operations and on vessels fishing under trial fishing permits is 100%.

Port samplers are stationed at major ports to do sampling when vessels make port calls.

Some concessionary licenses have been granted in conjunction with onshore investment in canneries in Madang and the loin plant in Wewak. These allow foreign vessels to operate as domestic vessels to supply tuna to the canneries.

Couple of major projects are now completed. This includes the 200mt per day loin plant in Wewak, the ADB funded wharves at Manus and Kavieng and the processing facility in Kavieng. Other projects in line includes the net mending facility in Manus, the three tuna processing plants in Lae, one fishing processing plant in Rabaul and another plant by the Poseidon company. Longline fishery operators are currently putting up small processing plants to do value adding in tuna. At least two of these plants are completed and three more are nearing completion.

Hand line fishery has attracted a lot of interest and trial reports have shown to be positive. This fishery will be introduced at the latest by early 2004. The mid-water trawl fishery has also attracted a lost of interest and there are currently a couple of proposals for consideration.

Beche-de-mer

The growth in the beche-de-mer industry has gradually increased in the last few years and with it an increase number of participants, as well as the hype of trade activities and multiple financing arrangements between locals and non-citizens. Subsequently this has constraints the allocated resources for monitoring for this fishery by both the National Fisheries Authority and the provincial administration.

There is significant improvement on the quality of the export product, as a result of improving processing methods by many operators. It is also attributed to dissemination of information to fishermen on handling of different species and processing techniques.

The overall export has level off to more than 400mt (dried) annually, values as a result of weaker kina against US dollars at more than K21 million. While the establishment of the national management plan has had a positive impact on the sustainability of the fishery at some provinces, there is further need to involve the community in the overall management of the resources under their respective jurisdiction.

  Prawn and Lobster

 A total of 23 fishing licenses are available to trawl in PNG's Prawn fisheries; 15 in the Gulf of Papua Prawn fishery, one in Orangery Bay and seven to Torres Strait. Currently, a total of 19 prawn vessels are operating in PNG, 15 operating in the Gulf of Papua Prawn Fishery, while one is operating in the Orangery Bay fishery and only three in the Torres Strait Fishery.

In the Gulf of Papua Prawn fishery, a total annual catch from all species of prawns is on average about 1,000 metric tones (tail weight) per annum, with an estimated value of K10 million (AUS $5 million). The fishery remains closed to foreign involvement. Prawns are processed and packed on board and mainly exported to Japan , Singapore and Australia or are sold domestically within PNG. The fishery is managed under the Gulf of Papua Prawn Fishery Management Plan.

The fishery is believed to be nearing its catch potential and with the increase efficiency in fishing effort has raised concerns for research. The lack of knowledge and uncertainty about the status of the prawn stock and a measure of effective fishing effort has led to an ACIAR-NFA funded research project on the economic, biology and management strategy evaluation for the fishery, which is being implemented.

 The study would provide basis for effective management of the Gulf of Papua prawn resources and aims to ensure their sustainability and maximum long-term economic and social benefits. Additionally, it aims to provide sound basis to determine whether an inshore (inside three miles) fishery would by viable.

The prawn and lobster fisheries in the Torres Strait Protected Zone are being co-managed with Australia under the Torres Strait Treaty Arrangements. The management is aimed at preserving the fishery for the traditional inhabitants, with strict limited entry for non-inhabitants.

 The Orangery Bay Prawn Fishery catches are unloaded onto a shore based facilities where they are processed and packed. The annual export value of prawns (all species) from Orangery Bay fishery is worth approximately K100, 000. The products are mainly exported to Asia and even sold domestically.

About five hundred divers are involved in the year round lobster fishery, working either to the seven freezer vessels, each operating five or six dinghies, or to the two shore based processors in Daru operating from outboard dinghies. In recent years annual catches of around 80 metric tones of tails with a value exceeding K4 million have been exported mostly to Australia and United States markets at high operational costs.

Restrictions and high fishing operational cost appear to make this fishery less economical than the Gulf of Papua Prawn Fishery. An annual harvest of prawn (all species) was worth approximately K3 million in exports alone and products exported to Asian markets.

Lobster fishery mainly in the Torres Strait Protected Zone is co-managed with Australia under the Torres Strait Treaty. The fishery is based on frozen tail, for export to Australia and recently US market. The fishery produce an average of 80mt tail weight annually, but with increasing market interest for whole live from EU and also the US markets, the production is likely to increase by 40%. There is likely an introduction of quota system to manage the fishery be 2006, which could allow for greater control and monitoring of the fishery.

Aquaculture

 Aquaculture was introduced in the 1950s as a means to alleviate high malnutrition levels in inland areas. Despite this ancient introduction, development has so far been stagnant and mostly concentrated at the artisanal and subsistence level. Pond culture of carp, tilapia and rainbow trout has developed significantly in the last few years with over ten thousand farmers throughout inland areas with a combine total production estimated to be valued at K10 million.

Although development on a relatively small scales so far, there is significant opportunity for aquaculture operations in both inland ponds and coastal sea cages. Pond culture of trout and carp has developed significantly in the last few years with over six thousand farms throughout inland areas. Commercial farms for barramundi and pearl culture have been established and have recently commenced for genetically modified tilapia.

At the commercial level, trout, barramundi and pearl culture has been established and recently commenced for prawn. Commercial trout farming began in 1976 and but has under gone turbulent times with fed and fingerling constraints. To date one farm with potential production capacity of 10 tonnes annually is in operation along with several small-scale farms of 5 tonnes average production capacity. Collectively, they have the capacity to produce over 30 tonnes valued at half a million kina.

Bismark Barramundi has also pioneered the propagation of banana prawns in PNG in 2003. The first trial run was completed at the end of 2003 where a tonne of prawns were harvested.
This achievement is expected to drive the prawn culture industry in PNG. Coral Sea Mariculture established the first pearl hatchery in PNG on Samarai Island in 2002 and has so far conducted two spawning of Gold lip and Silver lip pearl oysters. The availability of juvenile pearl oysters is a bonus for potential farmers and the PNG pearl industry. Bismark Barramundi Limited in Madang pioneered the propagation and farming of barramundi in PNG IN 2000. The Company is now producing around 200,000 table size fish annually. Spin off benefits of this achievement has been the involvement of villagers along north coast of Madang through the ‘Family Farm' concept, where the Company provides fingerlings, feed, technical assistance, etc and buy back the fish for processing and marketing.

Currently there is high interest in aquaculture both at the subsistence and commercial level. There is high potential for aquaculture both to complement capture fisheries and increase export earnings.

Barramundi

This fishery occurs mainly along the southern coast with the largest population in Western Province . Until the fishery collapsed in 1990, barramundi was the fourth largest export fishery in PNG but is now only artisanal.

The main fisheries now are in the Fly River system and adjacent coastal region and the coastal fishery based in Daru catching a combined total of 70 to 170 metric tones a year. This is processed into fillets and exported by four companies.

The capture fishery for barramundi is based along the southern coast of the PNG mainland and mainly in the Western province. The fishery is now operating under a management plan that was developed under an ACIAR funded project completed in 2002.

Barramundi exports in 2000 was 23.5 tonnes valued at around 402 thousand kina; exports in 2001 was 25.1 tonnes valued at around K353 thousand kina; 2002 was 31.5 tonnes valued at about 600 thousand kina while the 2003 export was 10.6 tonnes valued at around 230 thousand kina.

Live Reef Food Fish Trade

Live Reef Food Fish Trade (LRFFT) is in its infant stages of development. The fishery is operating on a strict management plan recently been re-gazetted on 16 th April 203 (G 48). Over a six month period of operation in 2001, over 6 tonnes of live fish was exported out of New Ireland to Hong Kong, valued at about PGK 0.13 million. In 2003 the company made another export of 6.76 tonnes of live reef food fish valued about the same amount as in 2001 export. Currently only one company has license to operate LRFFT in PNG and two more licenses are yet to be issued.

Reef Fish

This fishery is artisanal with most catch utilized as subsistence consumption. Much of the catch from this fishery is sold and consumed locally but a small portion is exported annually. In 2002 about 132.82 tonnes of reef fish was exported valued at about K797, 176. A total of 49.94 tonnes of reef fish was exported in 2003 valued at K288, 356. The combined total export for 2002 and 2003 in terms of quantity is about 182 tonnes valued at over K1 million.

Most of the reef fish products are exported as a trunk, whole, gill and gutted, raw, and filleted either frozen or chilled. The quantity of reef fish sold and consumed locally is not accounted for in the NFA database. Exports from this fishery are expected to increase once the EU RCFDP and ADB project are completed and fully functional. However, there is still a potential for small to medium scale development of this fishery such as the deep reef slope resources.

Shark Fishery

A Shark fishery was established in 2003 and is presently operating under a National Shark Longline Management plan that was approved by the NF Board in 2002 and gazetted on the 26 th of June 2003. Nine vessels were licensed to fish for sharks since 2003 and this number was to be reviewed after two years when a review is done for the fishery.

Shark exports ranged from around 1897 tonnes valued at about 6.7 million kina in 2000; 1,769 tonnes valued at about 8.5 million kina in 2001; 1,442 tonnes valued at 6.6 million kina in 2002 and 1,360 tonnes valued at about 4.9 million kina in 2003; 824 tonnes valued at 2.1 million kina in 2004.

Trochus

Production for the trochus shell in the country increased for each passing year since 1998, though the lowest production was observed in the year 1999. The highest production was in the year 2003 at about 353mt. The fluctuation of production was affected by export price, couple with weaker kina against US dollar, in most cases, fishers or licensed exporters would hold trochus for a year or two till the export price improves. The establishment of the trochus shell processing plan in Rabaul (MSB Ltd), and its competitive price (K12/kg) would certainly have a direct impact on the Productions from hereon.

Crab Fishery

Crab fishery is a small but increasing fishery in PNG. At present, crab is an important subsistence fishery to the coastal communities along the estuarine mangrove habitats. The most common species often exported or sold at the local markets and restaurants is the mud crab (Scylla serratta). From 1994 to 2001, about 29.3mt of crabs were exported with a cumulative value of PGK 0.353 million. Most crabs were exported out of East New Britain, Milne Bay , NCD, New Ireland, and Western Provinces . They are either exported live, frozen or cooked.

Other Fisheries

Other fisheries resources of significant national or community interest include shark, an aquarium trade and greenshell snail. These are generally coastal resources and it is the intention of NAF to work with communities to establish effective management regimes to realize the potential of these fisheries.

Papua New Guinea National Fisheries Authority ( Corporate Plan 2005 – 2007 )

The National Fisheries Authority (NFA) is a non-commercial statutory authority owned by the government. As a statutory authority NFA is required to implement government policy for managing and developing fisheries as a national asset.

The Minister of Fisheries has overall responsibility for policy direction in accordance with the provisions of the Fisheries Management Act 1998. Under the Fisheries Management Act 1998, the National Fisheries Authority is ‘responsible for the management and development of the fisheries sector in accordance with the provisions of this Act under the overall policy direction of the Minister' and ‘shall perform and excise its functions and powers on behalf of Papua New Guinea'. The functions of the National Fisheries Authority are defined in the Act as follows:

•  Manage the fisheries within the fisheries waters in accordance with this Act and taking into account the international obligations of PNG in relation to tuna and other highly migratory fish stocks;

•  Make recommendations to the Board on the granting of licenses and implement any licensing scheme in accordance with this Act;

•  Liaise with other agencies and persons, including regional and international organizations and consultants, whether local or foreign, on matters concerning fisheries;

•  Operate research facilities aimed at the assessment of fish stocks and their commercial potential for marketing;

•  Subject to the Pure Foods Act, the Commerce (Trade Descriptions) Act, the Customs Act, the Customs Tariff Act, and the Exports (Control and Valuation) Act, control and regulate the storing, processing and export of fish and fish products;

•  Appraise, develop, implement and manage projects, including trial fishing projects;

•  Prepare and implement appropriate public investment programmes;

•  Collect data relevant to aquatic resources;

•  Act on behalf of the government in relation to any domestic or international agreement relating to fishing or related activities or other related matters to which the independent State of Papua New Guinea is or may become a party;

•  Make recommendations on policy regarding fishing and related activities;

•  Establish any procedures necessary for the implementation of this Act, including tender procedures; and

•  Implement any monitoring, control, and surveillance scheme, including cooperation, agreements with other States or relevant international, regional or sub-regional organizations in accordance with this Act.

•  Mission Statement

“Managing Our Fisheries for Sustainable Developments”

•  Vision

The National Fisheries Authority staff are endeavoring to improve the service we provide to our stakeholders. We are committed to meeting the following standards:

•  To do our best to help our customers

•  To make timely response to requests

•  To keep our customers, stakeholders and colleagues informed

•  To aim to provide reliable and up-to-date information

•  To say what we can do and do what we say

•  To treat staff and customers with politeness and respect

•  To be consultative and listen to the views of stakeholders

•  To turn up on time

•  To follow agreed policies and procedures

•  To support our staff and workmates

•  To keep a neat and tidy appearance

•  To be always open, honest and fair

NFA's Goals and Programs

To facilitate the development of PNG's fisheries and maximize the sustainable benefits.

Our programs to achieve this are:

•  Ensuring management plans for all major fisheries are current and effective;

•  Improving the economic returns from the commercial fisheries sector;

•  Encouraging and facilitating funding and investment for coordinated development of the domestic fisheries sector;

•  Providing practical training and education to the fisheries sector; and

•  Obtaining reliable and timely information required for managing fisheries resources.

To have policies that enables the development and management of PNG's fisheries compatible with conservation of the resource and promoting the national interest.

Our programs to achieve this are:

•  Revising the legislative framework;

•  Representing PNG interests in regional and international fisheries forums; and

c) Fostering initial relationship with other Pacific Island regions to increase the collective benefits from management development of shared fisheries resources.

To ensure a high level of compliance with fisheries legislation, regulation, access terms and license conditions.

Our programs to achieve this are:

•  Effective surveillance and enforcement of Licensed fishing activities based on the compulsory use of VMS technology, targeted deployment of resources and cooperation with neighboring countries;

•  Effective inspection and enforcement of quality standards by export processors;

•  Providing education and information to license holders so they fully understand the terms and conditions of their license; and

•  Successfully prosecuting those who do not comply with the law.

To promote and facilitate development of provincial and community fisheries and meet NFA's obligations under the Organic Law.

Our programs to achieve this are:

•  Establishing partnerships with provincial stakeholders to enable them to participate effectively in the development of fisheries resources;

•  Encouraging private sector development in the Province that are compatible with artisanal fishing activities; and

•  Facilitating donor funded projects.

To operate NFA as a streamlined, efficient and responsive statutory authority.

Our programs to achieve this are:

•  Providing effective governance and strategic management for the organization;

b) Using Accountable and effective decision-making processes;

c) Developing and maintaining responsive working relationships with industry and other key stakeholders;

d) Streamlining the issue of domestic and foreign licenses;

e) Ensuring that effective financial and internal controls are in place so that cash and other assets are secured and only authorized financial commitments and liabilities are incurred;

f) Encouraging initiative and high performance; and

g) Rationalization and effective utilization of property and infrastructural assets.

The National Fisheries College

The National Fisheries College (NFC) based in Kavieng, New Ireland Province , provides training for the fisheries sector. The college had established a proficiency-based qualification aimed at providing competent manpower to meet the domestic fishing requirement. The final outcome of the training program will provide well-trained manpower as qualified fishing deckhands, fisheries observers, fishing craft engineers, fishing masters and deck officers and fish processing and quality control.

The National Fisheries College is about to enter a new and exiting phase in its evolution with the imminent conclusion of the four and the half year Ausaid Funded NFC Strengthening Project (NFCSP). The challenge for the college will be to maintain the capacity, professionalism and reputation that have been gained over the last four years and built on these gains. The NFC Strategic Plan 2005 – 2007 reflects programs in place to implement this vision.

The main course streams are in commercial fishing, post harvest (processing and quality) and artisanal fishing with other courses such as observer training and business development and woman in fisheries as required. The college has also concluded affiliation program in 2005 with the University of Vudal to deliver fisheries diploma/degree program which is envisage to commence in 2006 and be delivered at both the National Fisheries College and the University of Vudal .

Although part of NFA, National Fisheries College necessarily operates as a semi-autonomous business unit due to its remote location and the specialized nature of its operations. Courses delivered at the National Fisheries College are funded by the National Fisheries Authority. The long-term objectives are to gradually reduce this training subsidy and introduce user pay concept to the fishing industry and other stakeholder having excess to training at the college. Advice to the NFA Board on education and academic issues is provided through the Fisheries Training Advisory Committee (FTAC) which is represented by the fishing industry and other major stakeholders.

Core Functions

The core functions of the National Fisheries College are:

•  Providing training programs for the commercial fishing, post harvest and artisanal sectors related to development of PNG fisheries;

•  Operating a training vessel providing practical fishing experience for students

•  Promoting NFC to ensure ongoing support from industry, communities and other stakeholders;

•  Providing efficient student administration, services, facilities and support;

•  Managing and maintaining facilities, assets, owners lease or controlled by NFC;

•  Maintaining efficient financial report and control;

•  Providing efficient and transparent administration and personnel procedures;

•  Managing NFA research facilities and property on its behalf; and

•  Provide fisheries tertiary education through affiliation with Vudal University

Strategic Goals

Strategic goals for the Fisheries College are:

•  Delivering a range of core fishing training courses that are responsive to national requirements and exceed the expectation of the commercial fishing, post-harvest and artisanal fisheries sector;

•  Extending the range of core courses and increase students graduates for the commercial fishing, post-harvest and artisanal fishing sector to 600 per year;

•  Increase user-pays funding progressively to 20% of total revenue

•  Being efficient and highly accountable so that the owners and funders have confidence and fully support the college;

•  Having close, positive relationship and earn the respect of the key players in the fisheries sector and government;

•  Having effective management and control systems to identify, monitor and manage significant risks to the business;

•  Attracting and retaining high caliber staff by excellent working conditions

•  Providing opportunity for professional development and stimulating environment; and

•  Providing an excellent learning environment for students through excellent teaching staff, resources and facilities.