The Chair of the Chamber of Commerce, Francine Gaisoa says though the challenges facing the local canneries were well known and people had an idea of the inevitable, the closure of Samoa Tuna Processors still came as a shock.
Last week, Tri Marine International which owns STP, announced it’s shutting down its canning operation December 11.
She says throughout this year, people knew the canneries were experiencing difficulties making a profit as the media reported on them.
Difficulties such as the reduction of fishing days, limits on fishing zones and increased labor costs in American Samoa compared to other countries, cost of freight, fuel and other factors.
Commenting on the effects of the shutdown of STP’s canning operation, the chamber chair said hundreds of people would lose their jobs, resulting in the loss of disposable income and workers would not be able to support their families.
Gaisoa predicts a lot of people may be returning back home to neighboring islands or maybe people will work off of the land more and turn to agriculture as a means of supporting their families.
Meanwhile she said, there’ll be a trickle down effect on the local economy, especially since a whole range of businesses will be affected, not just grocery stores but other companies for example those that provide electricity telecommunications, insurance, banks, schools, and so on.
Gaisoa said, “Hopefully we wont see people turning to illegal means of making a living,” but instead “use their ingenuity and creativity to make ends meet.”
