Seafood exporter Phil-Union Frozen Foods Inc. (Puffi) has laid off 245 agency workers following a US restriction on imports of Philippine Blue Swimming Crab, citing insufficient documentation on marine mammal protection measures. The workforce reduction, implemented on May 16, 2026, at the Mactan Economic Zone 1 in Lapu-Lapu City, has displaced at least 245 agency-based workers, with 65 seeking assistance from the local public employment office.
US Restrictions on Philippine Crab
The US National Marine Fisheries Service (NMFS) imposed the restriction on May 12, 2026, under the Marine Mammal Protection Act Import Provisions. The agency found that Philippine Blue Swimming Crab fisheries failed to demonstrate measures comparable to US standards for protecting marine mammals. Specifically, the Philippines could not provide sufficient documentation on marine mammal bycatch monitoring, mandatory reporting of deaths and injuries from fishing operations, and evidence of effective bycatch mitigation measures.
Puffi president Kunho Choi emphasized that the layoffs were not due to quality or safety issues. "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 NMFS comparability determination."
Industry Impact
The Philippine Association of Crab Processors Inc. (Pacpi) warned that the ban threatens an industry that shipped over 2,400 metric tons of crabmeat worth more than $50 million to the US in 2025. The US accounts for about 90% of Philippine crab exports. The ban has already led to canceled orders, loss of customers, and reduced operations. "What was once a thriving fishery is now at risk of closure and create a generational impact," Pacpi said.
The impact extends to thousands of fishermen, crab pickers, factory workers, logistics providers, and suppliers who depend on the crab industry. Despite the setback, Puffi continues to export other seafood products such as octopus, shrimp, fish, and crab to 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 noted.
Call for Government Action
Industry stakeholders urged government agencies, including the Bureau of Fisheries and Aquatic Resources, the Department of Agriculture, and the Department of Environment and Natural Resources, to address the regulatory deficiencies identified by US regulators. They called for stronger marine mammal bycatch monitoring and reporting, improved fisheries management, and coordination with industry and environmental groups to regain US market access.
Puffi stressed the need for immediate action to safeguard livelihoods. "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.
