Susan N. delos Reyes, export manager of Zamboanga-based SR Seafood Inc. and president of CPOPEI said the group wants to weed out bad production practices that have in recent months, severely affected the quality and marketability of octopus being shipped to the US and in several countries of the European Union (EU).
"What we are trying to do is prevent a crisis in the industry threatened by inappropriate practices of some exporters and even the fishermen who bring the product to us," delos Reyes said.
The exports of whole, cleaned and gutted frozen octopus is becoming a major industry in Mindanao, especially in Zamboanga City. Currently, the Philippines is the top octopus exporter to the US.
Last year, the country exported a total of 8,863 metric tons (MT) to the US valued at close to $30 million. Following closely are Indonesia, China and Vietnam.
But the Philippines is fast losing ground to its competitors. In February and March this year, several octopus shipments were rejected by the USFDA due to salmonella, a pathogenic microorganism.
De los Reyes said that it is well known in the industry how rampant the practice of water injection in octopus is. This is done to increase the weight of octopus by as much as 50%, and in some cases, as high as 70%. This is practiced by the fishermen, the middlemen and by exporters themselves to gain a better price for their product.
An average size octopus would weigh one to two kilos and priced at about P100 per kilo. The bigger-sized octopus can weigh as much as six kilos.
De los Reyes said that as early as last year, there were already quite a number of shipments that were either detained or rejected by the USFDA due to poor quality.
"We have gained an awfully bad reputation in the international market. The USFDA described our product as pumped up, watery or filthy. While not all exporters practice water injection which we suspect was the source of contamination, the unflattering label is being lumped on all octopus products coming from the Philippines," de los Reyes said.
As a result, octopus importers both from the US and EU, have been shifting to suppliers from Indonesia. Octopus importers, in fact, have been paying a premium price of as much as 15 to 20 US cents per pound for Indonesian octopus while octopus exports from the Philippines now fetch a lower price.
But what is even more alarming to CPOPEI is that the USFDA is now closely monitoring octopus exports from the Philippines which they suspect could be a prelude to a total ban on the product.
Under Section 402 of the US Federal Food, Drug and Cosmetic Act, a food is considered adulterated "if any substance has been added thereto, mixed or packed therewith so as to increase its bulk or weight, or reduce its quality or strength, or make it appear better or of greater value than it is. "Moreover, it stated that "water added to a food for which a standard of identity has been established, unless the standard provides for added water, violates that standard. Such food is also considered adulterated and misbranded."
"We have to do something while we still can or we could just wake up one day and find our product is banned by the USFDA, and all because of bad production practices," said de los Reyes.
The CPOPEI is initially focusing its efforts on Zamboanga City where most of the exporters are based. Zamboanga City is one of the biggest exporters of frozen octopus in the country and gets it supply primarily from Sulu and surrounding areas.
Last month, the group, in a bold and unprecedented move, stopped buying octopus from their suppliers for a week, sending a strong signal to offenders that harmful practices such as water injection will no longer be tolerated.
One of the CPOPEI’s more prominent member, George R. Tan of AA Export & Import Corporation said " a swift and decisive action is needed to stop this malpractice that is destroying the industry."
The group is also seeking support from concerned government agencies such as the Bureau of Fisheries and Aquatic Resources (BFAR). It has proposed to BFAR that erring exporters will either be stripped of their export permits or imposed major sanctions.
"We have an industry to protect, thousands of fishermen families and those in the processing industry depend on octopus exports for their livelihood. We have to act at all costs to save our business," de los Reyes said.
In a previous speech before exporters Tan said: "The market has presented a need, and at this point in time, it is a need for safe and quality products. And there’s nothing else for us to do but to respond to that need. We must all aim for the highest quality possible. For quality is no longer just the measure of what our buyer wants, instead it should now be viewed as the result of all the processes, procedures and practices that we apply, from the raw material source up to the dining table."
Some of the CPOPEI members include AA Export & Import Corp., Bluefin Seafood Export Inc., HJR International Corp., Jam Seafood Inc. and SR Seafoods International Inc.