SABAH AS WORLD CLASS LOBSTERS PRODUCER

  

BY  :    MOHD  JEFRI    RADIUS 

THE  World’s   fisheries  is  dramatically  under pressure  as  a  consequence  of  humans’  rising  demand  for  sea products .  During  the recent  conference  of  the  Western  and Central  Pacific  Fisheries  Commission  (WCPFC) held  in Manila; participants  raised  their  alarming  concern  that  drastic  measure  must be  taken   by  reducing  30 percents  of  its   catch  that  mainly  comprised  the  vulnerable   big eye tuna species from   the   production  of  151,000  metric  tonnes  annually.

Not only to preserve  tuna  stocks  or varieties  vide  statistics  of   catch  in 2011   e.g  Skipjack tuna (1.4 million tonnes) and Yellowfin tuna (550,000  metric tonnes)  respectively,  which is  on the  verge of  depletion,  but  other  marine life  as well  that are  caught and hauled  accidently including lobsters which  lured  the growing  middle class mostly  from the  Asian  region. 

Mr. Asis  Perez, Head  of   the Philippines  Bureau  of  Fisheries was  quoted recently  by  AFP  correspondent  in Manila as  saying  “The area  covered by  the  WCPFC   provides  50  per cent of  all the  tuna catch  globally“. 

Generally, about  75  per cent  of  the  global fisheries  have  either  been  fully  or  even  over  exploited  which  means  wild catches  cannot  increased  sustainably .

The  New South Wales’ Port  Stephen Fisheries   Institute  report  forecasts  that  with  the  limited  supply from the  wild,  the  aquaculture  sector  caters  the  alternative   as  having the  potential   to  supply   the  need  of   an additional  74 millions  metric tonnes  by 2025, which  is  more than  40 per cent  of the  present  aquaculture  capacity, thereby  justifying  the  importance  of  the  sector  in  question  as   the  world’s  fastest  growing food,  which is   expanding  rapidly   at the  rate of  eight percent  every year.

As  an example,  the  RM 2  Billion Integrated  Lobster   Aquaculture  Park  (ILAP)  located  in Semporna,  best  known as  the gateway to  Sipadan , one  of  the world’s  best diving  heavens,  is   expected   to  transform  the  economy  of this   south  west  coastal  town   in Sabah,  once  the  new  agri-business   model   is  set  fully  in operation  to  bring  about  more big  changes   over the next  few years.

Significantly,  over the  long term  it presence  could  turn  Semporna   into  a  major player  in  the  global  seafood  industry  parallel to  or  in the  same way   Intel ‘s  first  overseas   factory  in Bayan Lepas  that had successfully turned  Penang  into  Asia’s  Silicon Valley . Once   Penang  started  making  Intel’s   microprocessors,  it showcased   the  resources   available   in the  State  to other  global  technology  companies.

Other  technology  players  soon  followed  suit   upon  Intel’s  fruitful   establishment  of   its   foothold  in Asia ,  thus  transforming  Penang  into  a  world  powerhouse  in electronics. Today , export of the  commodities   from  Bayan  Lepas   are   earning    a  turnover  to  the tune  of  RM 20  Billion  per year. Over the years  Intel  has spread  its  operations  from a mere  five acre  site  in 1972  to the  present   space   of  over  160 acres.

The  partnership between  Penang   and  Intel  has brought  other  spin – off  benefits  as well.  Intel  has set  up  research  programmes   and  laboratories  in Universiti  Sain Malaysia (USM) comprising  not just  computer technology but also in  materials  and  mineral  research. Intel  and  other  technology  companies  have  industrial  placement   programmes    benefiting  USM  students.

Prospectively, If the  9,300  hectares  ILAP  is successful  under  a  joint venture   with Yayasan Sabah, Semporna  could be  the seafood  industry  as  Penang  is  to   the  electronic  manufacturing. The  aquaculture  park  is a new  agri-business  model  which is expected to revolutionise the global seafood industry. The total  international  trade  in seafood  is more   valuable   than the global  trade  in all other  animal protein  put together  and some  37  percents  of the  world ‘s  fish production  is exported, thus  making  it  the   most  globally  traded  animal protein.

In  two  years  time,  the  ILAP  will  kick  off  its  commercial  phase. This  new  agri-business  model  is  identical  to  the  concept  implemented  by  the   Federal  Land Development  Authority  or  FELDA, which created  new opportunities   for farmers  to  own small holdings   of   palm  oil  in the  1960s and  1970’s.  This  is the  basis   for  Malaysia  ‘s   successful   palm  oil   industry, which  has  a  45 percents   share of  the  global market.

Farmers  who participate  in the  ILAP  will  have  a guarantee  buyback  from  Darden  Restaurants  Inc,  a US  Fortune   500  company   and  the  world’s   largest owner  and operator  of full  service  restaurants .  Darden serves  nearly   400  million  meals  a year  in the   1,900  plus  restaurants   it owns  and generates   sales  of   more than   USD   7.5  Billion  annually.      

The  company  in question  has developed  a  breeding  technology for spiny  lobster, which is  indigenous to  Sabah waters. Initially, under  the guarantee  Lobsters  grown by farmers will  be bought  by  Darden  that  will  then  sell  the  products  to  Asian consumers.

Eventually,  when  the  ILAP  has  built  up  its  optimum   capacity,  Sabah  lobsters  will  also  be  served  in Darden’s  strings   of  restaurants  presently  located  throughout  the  United  States.

The  strategic  geographical  location  along  with  the  clean  water  of  Semporna   considered a natural  disaster  risk  free zone are among the conducive  environmental  factors   luring  the RM 2 Billion   ILAP   investment  on  the  northern  part  of  the  Borneo  Island.

The  ILAP  is the  jewel of   the  Yayasan  Sabah  spearhead   joint  venture  via its  subsidiary  Inno  Fisheries Sdn. Bhd  with  Nanyang Nexus  Sdn.Bhd  to incorporate  Lobster Aqua Technologies Sdn.Bhd, through  which Yayasan  Sabah  and  Nanyang  Nexus  will  develop  and manage  ILAP  and will  further  roll out  investment in  relevant  infrastructural   development  namely  roads, power  supply, jetties  and  docks etc.

While   Nanyang Nexus  is itself  a  joint venture   between   Darden  and a  local  aquaculture  expert   Dr Shahridan  Faiez,  the  first  Malaysian  elected   to  the  Board of Directors of  the Global  Aquaculture  Alliance   (GAA), the  world’s   leading   international   organization for  aquaculture.

Dr Shahridan  together  with his partner  Sharizal  Shaaarani  formed   Ever Nexus   Sdn.Bhd,  which  is  Darden  ‘s   strategic  partner in  Malaysia.

The  ILAP   is  expected   to  hit  full  scale  capacity  by  2029   with   the  production  target  of   40  million pounds  or  about   18,000  metric tonnes  of  spiny lobsters  yearly.  Sales  are  projected   to be  about  RM  3  Billion then.  It  will  have  three  cutting-edge  hatcheries for  hatching  and breeding  spiny lobster. 

The  hatcheries   are the  key   to  ILAP  ‘s  sustainability, producing   stocks  of  lobsters   to be  grown out   to  reach  maturity  size .

Currently, lobsters   farmers   around the   world   are  still  sticking  to  the    tradition  of  catching  wild  lobsters   for  further  breeding  in  their   farms  or ponds  until   reaching  maturity  with  the  right  commercial   grades  and  specifications, this  methodology  is  posing  a real threat to the   depleting  population of  wild  lobsters    within   their   zones   of   habitation  in the  open  seas.

Thanks  to the  leadership  of  the  State  Government   under  Chief Minister  Datuk  Seri Musa  Aman, Sabah  with  its   abundant  natural  resources  will  be able to tap   this lucrative and growing  market  in  partnership  with  the  global  player  the  US  Company  Darden  Industries. 

ILAP  will  be   a  new  model  of  agri–business, seen as  a catalyst  to   turn  Sabah Economic  Transformation ‘s  visions and missions  into  reality  as  a  major  seafood player,  thus  dubbing  the  booming   coastal  town  of  Semporna  as   the  Bayan  Lepas   of  the  global   seafood  industry   in the  next  couple  of years