Direct Deck Deals: In the 1970s, Japanese mother vessels and the Maldives Nippon Corporation revolutionized Maldivian fishing. Today, the industry relies on centralized, credit-based collection system

Traditional fishing dhonis are seen alongside a large fish collecting vessel as they engage in pole-and-line tuna fishing in the Maldives.

In the turbulent economic waters of the 1970s, Maldivian fishermen found an unexpected lifeline floating offshore. Once reliant on sail-powered dhonis and the drying of tuna for export to Sri Lanka, local fishermen began sailing their traditional boats out to Japanese “mother vessels” to sell their fresh daily catch directly on deck for cash. This innovative maritime collection system, pioneered by companies like HOKO and expanded through the Maldives Nippon Corporation (MNC) with Marubeni Corporation, became a cornerstone of President Ibrahim Nasir’s modernization drive. It bridged traditional pole-and-line fishing with emerging global markets and helped lay the foundation for industrial tuna processing in the Maldives.

The Economic Crisis That Sparked Innovation

For generations, Maldivian fishermen harvested skipjack tuna using sustainable pole-and-line methods from wooden sailing dhonis. The catch was primarily dried and exported as “Maldive Fish,” with Sri Lanka absorbing nearly 90% of production. When Sri Lanka faced a foreign exchange crisis in the early 1970s and sharply restricted imports, the traditional model collapsed. President Nasir, prioritizing fisheries as a pillar of economic development, sought new ways to monetize fresh catches. The Maldives lacked the infrastructure for large-scale fresh handling, so Nasir turned to Japanese expertise for capital, technology, and logistics.

in the 1970s at Yanmar's Technical Training School in Japan, marking the beginning of local capacity building for engine maintenance and repair in the Maldives. Photo : Workers and students pose outside the Yanmar Diesel Engine Factory in Nagahama, Shiga Prefecture, Japan. From the right: Mr. Yamaoka, Mohamed Areef, (Rankoka Areef) and J. Kantada from the Philippines

The Mother-Vessel Model: A Floating Marketplace

Rather than immediately building land-based factories everywhere, the Japanese partners introduced a flexible, sea-based solution. HOKO Fishing Company (through its subsidiary HOKO Maldives) led the way in the northern atolls. They deployed large “mother vessels” equipped with advanced blast freezers and substantial cold-storage holds. These floating factories were supported by smaller collector boats. Local fishermen would sail their traditional Dhonis out to rendezvous with the mother ships, offload their fresh catch directly on deck, and receive immediate cash payments. This system eliminated the delays and spoilage risks of shore-based drying, provided instant income, and ensured high-quality fresh tuna for export or further processing.

The model was revolutionary for its time. Fishermen gained reliable buyers and cash flow, encouraging them to fish more frequently and venture farther. The Japanese vessels handled freezing and storage at sea, maintaining quality for international markets. By the mid-1970s, this approach dramatically increased the volume of fresh and frozen tuna exports, surpassing traditional dried fish in value by 1977. HOKO’s operations alone demonstrated the system’s scale, with multiple collecting and mother vessels supporting thousands of tons of tuna annually.

Expansion to the South: The Maldives Nippon Corporation (MNC)

Building on HOKO’s success in the north, the partnership expanded southward through the Maldives Nippon Corporation (MNC), formally established in 1979 in collaboration with Marubeni Corporation, a major Japanese general trading company (sogo shosha). MNC adopted a similar mother-vessel collecting system tailored to the southern atolls.

Marubeni brought strengths in logistics, international marketing, and processing expertise, helping MNC complemented the maritime collection with investments in cold storage and eventual land-based processing. Together with HOKO’s efforts, it created a nationwide network that connected remote island fishermen directly to export supply chains. Fishermen no longer depended solely on seasonal drying or uncertain local markets, they had a steady, cash-based outlet for fresh catches

Impact on Fishermen and the Broader Economy

Mr. Mohamed Areef (Rankoka Areef) and his colleagues stand proudly in front of the Yanmar Maldives Engine Service Center during the 1970s, showcasing their dedicated work environment.

This deck-to-vessel sales system had profound effects. It provided immediate cash, boosting local economies and incentivizing investment in better boats and gear. It aligned perfectly with Nasir’s parallel push for fleet mechanization, including the introduction of Yanmar diesel engines around 1974. Motorized dhonis could reach the mother vessels more reliably and return with higher-quality catches, creating a virtuous cycle of increased production and efficiency. The approach preserved the cultural heart of Maldivian fishing, pole-and-line methods, while integrating it into modern commercial operations.

From Sea to Shore: Linking to Felivaru and Long-Term Legacy

The success of the mother-vessel system paved the way for land-based industrialization. The fresh tuna collected through these maritime networks supplied the Felivaru Tuna Cannery (established 1977), enabling value-added canning for global markets. MNC’s collaboration with Marubeni further supported processing and export diversification. When challenges like price volatility led to Japanese withdrawal in the early 1980s, the Maldivian government nationalized key assets through MIFCO, retaining the infrastructure and know-how.

Current Centralized, Credit-Based Collection via MIFCO

The 1970s Japanese mother-vessel model, where fishermen received immediate cash on deck, has evolved into a more centralized system dominated by the state-owned Maldives Industrial Fisheries Company (MIFCO). While collection networks still exist, the process is now largely credit-based, with notable drawbacks: significant time consumption, diesel waste, delayed payments, and ripple effects through local credit chains that burden fishermen, families, and island shops. This shift reflects nationalization and efforts at scale, but it has created new inefficiencies and hardships

Ripple Effects: Increased Credit Chains and Community Suffering

The credit system has expanded informal borrowing networks in fishing communities:

• Fishermen often turn to local shops (for groceries, fuel, spare parts) on credit, promising repayment once MIFCO pays.

• Shops extend credit to maintain customer relationships but face their own cash shortages when payments are delayed.

• This creates layered debt cycles: fishermen owe shops, shops may borrow from moneylenders or banks, and the entire community feels the strain. Families report difficulties covering daily needs, school fees, or boat repairs during long waits.

In remote islands, where alternative buyers are limited, dependence on MIFCO amplifies these issues. Broader financial pressures on MIFCO (including large debts and the need for external financing, such as a 2025 application for US$64+ million from the Islamic Development Bank for upgrades) contribute to operational constraints that affect payment timeliness.

While the spirit of organized collection lives on, the modern MIFCO-dominated system trades immediacy for centralization. The resulting time/diesel waste and credit chains impose real hardships on fishermen and island economies. Addressing arrears, improving payment speed, and balancing efficiency with fairness will be key to honoring the industry’s 1970s foundations while building a sustainable future.