MIFCO Maintains Current Fish Purchase Price Amidst Global Market Decline

Maldives Industrial Fisheries Company (MIFCO) has decided to keep its fish purchase price unchanged for the time being, despite a decline in global market prices. 

The company stated that it has not altered its purchase price since the last adjustment, as there has been no favourable change in the international market. MIFCO indicated that the decision to maintain the purchase price was made during a period of significant downturn in the fisheries sector. Although global fish prices have fallen, MIFCO has endeavoured to keep its purchase price stable. 

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Previously, MIFCO was buying fish at a rate of MVR 16 per kilogram, but this was deemed unsustainable. The company is now aiming to maintain this price until market conditions improve, allowing it to source quality fish from local fishermen at a fair rate.

The company is also exploring opportunities to positively impact fish prices through its market monitoring models and is engaging in consultations with relevant stakeholders.

This year, MIFCO has experienced a 42% decrease in fish supply compared to the same period last year. There has been a marked decline in both local fisheries and frozen fish shipments. 

Historically, MIFCO purchased fish at an average rate of MVR 16 per kilogram, while the government provided a monthly subsidy ranging from MVR 20 million to MVR 25 million. However, due to government cash flow constraints and declining fisheries, the company continues to rely on subsidies to manage its operations.

The company stated that it is working to manage its expenses effectively and is awaiting a positive shift in international fish prices. With three months remaining in the year, MIFCO has processed 26,000 tonnes of fish out of its annual production target of 67,000 tonnes. Last year, the company produced 72,000 tonnes.