The US National Marine Fisheries Service restricted imports of Philippine Blue Swimming Crab on May 12, 2026, over insufficient documentation regarding mandatory marine mammal protection and bycatch monitoring measures.
Seafood exporter Phil-Union Frozen Foods Inc. cut 245 agency-based workers in Lapu-Lapu City on May 16, stating the reduction stems entirely from the lost US market access.
The Philippine Association of Crab Processors Inc. warned the ban threatens a 50-million-dollar export industry, prompting urgent calls for government agencies to address the identified regulatory deficiencies.
SEAFOOD exporter Phil-Union Frozen Foods Inc. (Puffi) has cut more than 200 agency workers after the United States restricted imports of Philippine Blue Swimming Crab. The restriction comes because of insufficient documentation regarding marine mammal protection measures. Industry stakeholders are now urging government agencies to immediately address the issues identified by US regulators to protect thousands of local livelihoods.
Hundreds of workers affected in Lapu-Lapu City
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.
The workforce reduction implemented on May 16 resulted in the displacement of at least 245 agency-based workers at the Mactan Export Processing Zone 1 in Lapu-Lapu City. Of these affected individuals, 65 have initially sought assistance from the Lapu-Lapu City Public Employment Office.
Choi emphasized that the job cuts do not mean the company has failed in its operations.
"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.
“Perhaps, 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.
Why the United States restricted imports
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.
A massive blow to a $50 million industry
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.
Urgent calls for 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