Seafood exporter Puffi laid off 245 agency workers on May 16, 2026, after losing US market access for Philippine Blue Swimming Crab due to insufficient marine mammal protection documentation.
The US National Marine Fisheries Service restricted the exports on May 12, citing the Philippines' failure to demonstrate bycatch monitoring and mitigation measures comparable to US federal standards.
Industry association Pacpi warned the ban threatens a $50 million export industry, prompting stakeholders to urge government agencies to immediately address the regulatory deficiencies to regain US market access.
SEAFOOD exporter Phil-Union Frozen Foods Inc. (Puffi) cut more than 200 agency workers after the US restricted imports of Philippine Blue Swimming Crab due to insufficient documentation on marine mammal protection measures.
Stakeholders urged government agencies to immediately address the deficiencies identified by US regulators.
In an official statement sent to SunStar Cebu on Saturday, May 30, 2026, Puffi president Kunho Choi said the workforce reduction was a direct consequence of the lost access to the US market for Philippine-origin Blue Swimming Crab products, rather than any issues with product quality, food safety, manufacturing, or regulatory compliance.
Workforce reduction
“The resulting workforce reductions within the industry should not be interpreted as a consequence of operational failure, product quality concerns, or non-compliance by individual seafood processors,” Choi said.
“Rather, these measures have become necessary due to the loss of access to the United States market following the [National Marine Fisheries Service] (NMFS) comparability determination affecting the Philippine Blue Swimming Crab fishery,” Choi said.
The workforce reduction implemented on May 16 resulted in the displacement of at least 245 agency-based workers at the Mactan Economic Zone 1 in Lapu-Lapu City. Of these affected individuals, 65 have initially sought assistance from the Lapu-Lapu City Public Employment Office.
US restrictions
The restriction stems from a determination made in May 2026 by the US NMFS under the Marine Mammal Protection Act Import Provisions. The federal agency found that Philippine Blue Swimming Crab fisheries had not demonstrated measures comparable in effectiveness to US standards for protecting marine mammals.
According to Puffi, the NMFS decision was based on the Philippines’ inability to provide sufficient documentation on marine mammal bycatch monitoring, mandatory reporting of marine mammal deaths and injuries associated with commercial fishing operations and evidence showing the effectiveness of bycatch mitigation measures. The company stressed that the restriction was entirely unrelated to the quality or safety of Philippine crab products.
“The restriction on Philippine Blue Swimming Crab exports is an industry-wide issue with significant economic, social and employment consequences. It is not the result of any food safety issue, product quality concern, manufacturing deficiency, or regulatory violation by Puffi or other Philippine seafood processors,” Choi said.
Industry impact
In a separate statement, the Philippine Association of Crab Processors Inc. (Pacpi) warned that the US ban on Philippine Blue Swimming Crab exports threatens an industry that shipped more than 2,400 metric tons of crabmeat worth over $50 million to the US in 2025. The US has long been the primary export destination for these products, accounting for around 90 percent of all Philippine crab exports.
Pacpi said the ban enacted on May 12 has already led to canceled purchase orders, the loss of long-standing customers and reduced operations. “What was once a thriving fishery is now at risk of closure and create a generational impact,” Pacpi said.
Industry stakeholders warned that the impact extends far beyond processors and exporters, directly affecting thousands of fishermen, crab pickers, factory workers, logistics providers and suppliers who rely on the crab industry for their livelihoods.
Despite the setback, Puffi said it remains operational and continues to export other seafood products, including octopus, shrimp, fish and crab products destined for non-US markets. “The current restriction affects only Philippine-origin Blue Swimming Crab products intended for export to the United States and does not affect the company’s other seafood processing and export operations,” Choi said.
Government intervention
Crab industry players urged government agencies, including the Bureau of Fisheries and Aquatic Resources, the Department of Agriculture and the Department of Environment and Natural Resources, to immediately address the deficiencies identified by US regulators.
The stakeholders urged the National Government to implement stronger marine mammal bycatch monitoring and reporting measures, improve fisheries management and coordinate with industry and environmental stakeholders to regain access to the US market.
Puffi said immediate action is needed to regain access to the US market and safeguard the livelihoods of thousands of Filipino fishermen, seafood workers, processors, exporters and their families who rely on the Blue Swimming Crab industry. The company added it remains committed to preserving jobs and supporting fishing communities while government agencies work toward restoring the country’s comparability status under the US regulatory framework.
“We respectfully request the understanding, cooperation and support of all stakeholders as we work together toward restoring the competitiveness, sustainability and long-term viability of the Philippine Blue Swimming Crab industry,” Choi said. / DPC