December 1998 / January 1999 aeVolume 6, Number 6 no=800Contents:• SSP farming in the Philippines: an in-depth overview PEARL• Chinese FWPs: better sizes, shapes, colors & prices• A new joint venture in Myanmar gets ready to revitalize the WORLDonce-upon-a-time greatness of Burmese pearls• Mab* pearls come out of the closet The Jitternational Pearlii,g Jou,·nitt

World markets await these warm Philippine beauties

A SLEEPING GIANT AWAKENShe Philippine South excess of 500,000. typhoons and strong tidal waves.

T Sea pearl industry According to president of the However, more and moreis on the brink of a Philippine Association of Pearl companies have begun to set upgiant step forward Producers and Exporters farms in the Philippines. Onenow that the six (PAPPE), Jacques Branellec, the reason is that, unlike Australia

lea ng producers in the country number of farms in the country where the number of companieshave mastered hatchery tech- totals 23, ofwhich 15 are of com- involved in pearling is restrictedniques. Inercial scale. Most farms are by the government (but like

Annual production in the concentrated in northern Indonesia), the Philippine gov-country is expected to surge Palawan, which accounts for ernment does not limit the num-beyond 200 kan by the year 2000, about 70% oftotal production. ber ofpearl farm licenses, nor theindustry sources feel. In 1997 the Although the archipelago number of shells cultivated atcountry produced about 80 kan, has 7,100 islands, some say it each farm.according to one industry insid- has become increasingly difficult Another reason: pearlinger; others put annual production to find good sites because most companies with government-at between 100 and 150 kan. islands are heavily populated

Before the success in hatch- and many areas are exposed to "Philippine" to page 3ery development, the countrywas limited to an annual catch ofabout 300,000 wild oysters, CHINESE FWPS IMPROVEwhich were shared among allproducers. But by the late 1980s espite the current woes the hearts of overseas dealersfewer and fewer oysters were D in many Asian markets- who stock Chinese FWPs.being readily found: most are greatly reduced domesticnow taken in depths of up to 150 demand, the currency crisis,

STEAM TRADINGfeet and beyond. downsizing and bankruptcies-But now that major produc- some good may be making its

ers have well-established hatch- way to major overseas markets A 13.8mm pinkish pearl wasery operations, the supply of oys- such as the US.A. and Europe. recently sold by Steam Tradingters is sufficient for ambitious One such bright light is a Co. Ltd. in Tokyo, Japan, atexpansion. One large producer in significant advance in the supply US$4,000. A South Sea pearl?the country is reported to have of Chinese freshwater pearls... No. The pinkish pearl was aseeded more than 200,000 oys- and a concomitant rise in inter- fi·eshwater pearl from China.ters in 1998. Smaller farms are est in these goods from retailers The company also sellsseeding between 20,000 to and the consumer. strands of 8mm round Chinese50,000 oysters annually. The Here are some viewpoints FWPs at between US$500 andtotal number of oysters being from four Asia-based suppliers ofseeded each year is most likely in these goods which may gladden "Chinese" to page 6

The International Pearling Journal

BITS AND PIECES So we went ahead and shot a retailer who moved into SSPsEve's sparkling beauty, using a two years ago, and now this sec-cheap, plastic giveaway ruler tor accounts for over half of his

 u may very well wonder from a rental car company. Only business. Plus lots of import- :' about the glistening later did I find exactly what we export statistics to show you whatI Burmese pearl we depict wanted... in bright, blazing yel- trends are taking place. And more.

on page 1 1. Illustrating the great- low... sitting squarely on my clut-ness that once was Burma's tered desk! So to all of your ne more item of note: The(nowadays it's called Myanmar) purists who will decry our showing Mrst Indonesian Southpearl producing capability, and an 11.5 x 13.9 mm Burmese pearl Sea Pearl Auction will beaccompanying an article about an and contrasting it with our nation- held February 8th and 9th inAustralian firm's attempts to al measuring idiocy, our deepest Rooms 204 through 210 in therevive quality pearl production in apologies. Hong Kong Convention andthat country, this 11.5 x 13.9mm Exhibition Centre.beauty was loaned to us by Eve e were thinking about "Due to the isolation of manyAlfilld. Then why did we depict it taking some time 0# of the pearl farms in outlyingagainst a ruler marked in inches? from our regular pub- islands, and the increased volumeWell, I would like to say that this is lishing schedule (with the end-of- of production in the last twothe way that the QVC TV shop- year promise of either cleaning years," the sponsor said inping network here in the USA our offices, or setting fire to the explaining the rationale behindmeasures its pearls on air (you whole mess and moving to a new this event, "a venue was neededknow how reluctant we Americans hole in the wall, like the early to bring the dispersed productionare to join the rest of the world in cavemen were wont to do). But to an accessible location... so asconversion to the metric sys- more and more interesting to serve the marketing needs oftem)... but that isn't the real rea- pearling matters keep swimming Indonesian pearl producers, andson. The real reason is that when into view. to formalize a central outlet forI went to find a ruler marked in mil- In future issues, Rende marketers of cultivated pearlslimeters and centimeters so as to Newman GG (author of the third throughout the world."indicate size relativity, all I could edition of her Pearl Buying Guide) During this, the first offind were rulers in picas and discusses: Should the term 'black planned biennial auctions, inter-agates (used in printing and type- pearl" be abandoned? \Ne contin- national buyers may view, selectsetting), and varying inch demar- ue looking in on the Cook Islands and make closed bids on produc-cations (used in business forms). government's gross mismanage- tion from many Indonesian pearlThe only metric ruler at hand was ment in the rebuilding of producers both from remote, out-

a see-through one that wouldn't Mahihiki's cyclonic destruction. lying islands and other locales dis-work against a dark background. We'll present the success story of persed throughout the country. IQ

attend ISSPA-1999 you must reg-ister bv December 15th. ContactPhilmore USA, Inc., 836Woodshire Lane, Suite K-6,Naples, Florida 34105, USA. Fax:

PEARL K. Obuchi • President XXX-941-263-9371E-mail: schurch241 @aol.comWORLD R- Torrey • Editor

The inteinnii,>nul rm,ring J„„ri,„1 R Grella • Production Supervisor hat's all folks! We're out ofroom... but just enough's

P. Brutcher • Production Manager   left to wish each and everyPEARL WORLD is published bimonthly by Haggis House, Inc. Office: 5501 North Seventh Avenue/ Suite one of you a joyous holiday sea-

331/ Phoenix, Arizona 85013-1775/ USA. Telephone: (602) 678-5799. Facsimile: (602) 678-6799. E-mail address: son, and a happy and prosperousprlwrid@aol.corn.© 1998 PEARL WORLD LLC. All rights reserved. Any reproduction or use, in whole or part,of editorial or graphic content in any manner is prohibited without written perm:Mion. One year subscziption:US$110 for domestic USA. US$130 elsewhere. For comments or opinions, please write, call or fax PEARLWORLD, attenson Editor "Pearl World,The International Pearling Journal•is registered in the US. Patentand

4/034#ee.1 THE EDITORil..

Trademark Office.

The International Pearling Journal

"Philippine"from page 1 Branellec in Manila, Jewelmer development in Shark's Fin Bay.has interests in four farms: the "We have developed only 20% of

issued licenses are entitled to earliest in Bugsuk, two in the potential of the whole leaseduse specialized security agencies Busuanga and a new farm in area," says Mr. Branellec.which provide security guards to northern Palawan. With an available site and aprotect farms against thefts. "It is·part of the company's sufficient supply of hatchery

«South Sea pearls have been . risk management to have farms shells, the.scale of pearl farmingproclaimed the national gem of at different sites," Mr. Branellec, is expected to increase. "Althoughthe Philippines and the - ······· l w e have large room forgovernment at various 0 Eil 1 -f* 11 l k.1 'AN 1:14.1 J : expansion, our concern islevels. is very supportive UULmIS 311:13 1 in expansion in terms ofof the industry. Our   quality rather than quan-pearls have become a L tity. Our . developmentmajor export item," said i and- research focus onMr Branellec. r increasing the percentage

Luzon . of high quality pearls,"The Philippines lie in   .a tropical zone. The says Branellec, addingregion has two major sea- that some older sites willsons: the wet season, from ' . m Manila be left alone to recoverJune to November, and I and regenerate. . ' -the dry season, from ' Although actual pearl

0 Mindom cultivation has started,December to May. _(DeSeeding and harvesting Busuesgao C construction on the land-e :are undertaken only in f   Panay · · n based farm in.the,, wet season. 1 J© Oce!,u Malutamban continues. '

- Cultivation periods vary C €'Bohol eSUrlgao "The hikhest standardsfrom 18 to 24 months. I c Palawan are being maintained in

The size of Philippine i : the construction of theSouth Sea pearls range 1 0 farm infrastructure, withBugsuk Mindanaofrom 9mm to 16mm; most the aim of maintaining

0are in the 10mm to 12mm : Sulu Se: 0 , high morale in our work- «range. The colors of the ' Zamboanga 'Davao Gult force" says Mr. Branellec.pearls derived from I Hatchery operationswhite4ipped oysters vary '· are carried out at

Celebes Seafrom silver, white,'cream, Bugsuk, Jewelmer's earli-and champagne to gold- 5 . . est established farmen. And from black-lipped Map courtesy of Jewe//ety News Asia south of Palawan. "We set -oysters: from blue , · up our farm in Bugsuk inthrough grey to black. Managing Director of Jewelmer, 19791 Sonne of the advantagesRegardless of coloration, said. The, company- has been included the fact that the islandPhilippine cultured ,pearls - are granted a lease to develop pearl was not populated... that naturalgenerally noted for their healthy farming in Shark's.Fin Bay in oysters were available from the

- textures and superior nacreous northern Palawan, and produc- Sulu Sea to the east of Bugsuk:..coatings. , tion-at this'initial stage centers that the area is protected from

. around Malutamban Island. strong tidal waves... and that the«This new site integrates the remoteness of the area gives us .

  EWELMER INTERNATIONAL technologies improved through better security control,"   themore than 20 years of,experi- Managing Director stated.

The . largest . producer of ence, and is comparable to farms The land-based - farm inSouth Sea pearls in the of the highest standards in other Bugsuk employs 200 workers,Philippines is Jewelmer countries," Mr Branellec stated. including a farm manager,.International . Corporation. A company named Terramar marine biologists and 14 techni-Established in 1979 by Manudl Aqua Resources IncorporatedCojuangco .and,3 Jacques has been - set up for pearling . ':Philippine" to bag; 4

The International Pearling Journal

"Philippine"from page 3 oyster's age to determine the size ent race apart. Idealistic, intu-of nucleus to implant," feels itive and adventurous. But with-

cians. «The farm provides a good Branellec. out an analytical approach,training ground for our work- The average cultivation peri- determination and vision, theyforce in all four farms. After od after seeding is 24 months at will not go far.twenty years of trial and error, Jewelmer, Mn Branellec says: '<Pearl farming is a difficultwe have reached a maturity peri- "We concentrate on production of but challenging venture. It hasod during which every single 11mm to 16mm pearls.step in our shell management The market for pearlsprocess has proven its effect:ive- below 11mm and aboveness. Although we are applying 16mm is narrow:the experience to new farms, it More than 90% ofwill take four years to fully Jewelmer's pearls aredevelop an effective shell man- exported. "Althoughagement specific to a site," says rapid sales growth ofBranellec. South Sea pearls in

Jewelmer spent 10 years on Asia have beenresearch and development before checked, we do notachieving success in mastering have problems market-oyster breeding know-how in ing our pearls because1989. The first pearls from of the generally highhatchery oysters were harvested quality and competitive  in 1991, and these pearls were prices... as well as our 1 4 z'*'' /imbued with a rare and intense effort:s to expand our jorient, Mr. Branellec said. clientele base in new

Hatchery oysters developed markets."in Bugsuk are for use in the com- The company has Jacques Branellec (!eft) receives a plague of appreciation aspany's four farms. Given the 12 shops in the guest speaker at the 2nd Philippine Jewellery conference.

same parents, hatchery oysters Philippines- eleven inproduce pearls in sizes and colors Manila (the newest in Makati) never been easy for any company,which vary with farm sites and and one in Cebu- to tap a poten- maybe particularly so in develop-technicians' skill. tial domestic market of some 60 ing countries where economic,

Young oysters three to four million people. «The market political and social changes haveyears old yield the best nacre potential at home and abroad is a strong effect on the industry.growth. The first operation pro- huge: South Sea pearls are "The element of risk is highduces pearls with better luster. becoming a core product," Mr. in pearl farming. One can loseDepending on the technicians Branellec feels. everything because of a wrongand the quality of pearls pro- choice of site, natural catastro-duced in the first operation, some phe, El Nifio effect, or oyster dis-oysters can be used for a second  o BRANELLEC INTERVIEW ease. There are years of successoperation. About 10 percent to 20 and years of failure. The amountpercent of the oysters undergo a Jacques Branellec, whom we of investment and hard work dothird operation, Mr. Branellec first met and became friends not guarantee a good harvest.said. with at Pearls 94 in Hawaii, is "Pearling imposes a long

Although hatchery oysters deserving of the success he, his investment cycle. It takes fiverequire a long investment cycle, fellow producers and his indus- years for a company to have athey have an advantage over try are achieving. In a personal first return on investment andwild oysters in that they give the interview in the September issue 10 years before an investmentproducer better control over the of Jewellety News Asia, he gives can be fully recovered, if every-homogeneity of the oysters and us all a look at what he feels are thing goes right.hence, the sizes of the pearls pro- important factors in the produc- «People involved in theduced. "Wild oysters require tion and marketing of cultured pearling industry respect nature,highly experienced technicians pearls:who have to make a guess of the "Pearl producers are a differ- "Philippine" to page 5

The International Pearling Journal .il"Philippine"from page 4 is fundamental that producers dardization and returns to

abide to a minimum period of nature, accepting the differenceslove the sea and love pearls. The cultivation to give pearls a nacre and variations nature offers.dream of every farmer is to pro- 3mm to 5mm thick. "I am not talking as a roman-duce better pearls... the best pos- "Although institutions have tic, I am talking as a producersible pearls. South Sea pearls are attempted to grade pearls, the who has experienced the day-to-not produced in a confined man- unique characteristics of pearls day difficulties of pearl farmingmade environment. Each pearl is have defied all efforts of system- and who remains in the industrya human adventure in coopera- atic evaluation. The magic of after almost thirty years. When Ition with nature. pearls will always involve subjec- went into the SSP industry in

"It is not a commodity in tive appreciation and evaluation. 1969, I brought a pouch ofwhich only investment and profit "It will be difficult to imagine Tahitian pearls to show to pearlmatten If a large enterprise with a consumer, who, after checking dealers in Japan. All doors werestrong financing decides to go a pearl pricelist- which may stip- closed to me.. as no one at thatinto pearling for the sole reason ulate the price of a 12.5mm time had the vision to realize theof getting extra income, the round at US$450- disagrees potential of these pearls. Nowchance that it will succeed is low. with a retailer which sells a par- Japan is importing more thanThe return and profit will never ticular 12.5mm round pearl for 800 kan ofTahitian pearls a year.be fully justified by the dispro- US$70 more. What happens in USouth Sea pearls will corre-portional amount of hard work. the diamond trade will not hap- spond to a new lifestyle wherePearling has to be a passion, I pen to South Sea pearls. individuality becomes more pro-would even say, it is a lifestyle "Each pearl has a character nounced. Baroque and otherwhich demands commitment." of its own. Any attempts to cali- shapes in a wide range of colors

brate or standardize South Sea will sell. Pearls no longer have topearls will be doomed to failure. be perfectly round and pinkish.

lr-EARL'QUALITY & GRADING «And because they are not "The world has come a longstrictly calibrated, South Sea way and may have forgotten some

Mn Branellec continues: -The pearls enable producers and basic values. We crave for naturalmost important quality of a pearl dealers each to have a different things, simple things. South Sealies in its inner glow- its orient- strategy to reach their cus- cultured pearls, initiated by man,which is more than merely a lus- tomers." nurtured by man and left to thetrous surface. The best pearls care of nature, will take up ahave this fire from within that major role in the jewellery scenedistinguishes them from other (OSP PROSPECTS in the 21st Century" *pearls.

«The beauty of a South Sea "The long-term development Source: Jewe#ery News Asia, Jewelmer

pearl lies in its glow reflected of South Sea pearls is bright as International Corporation, Andy MOller of Golaythrough thick layers ofcoating. It the world moves away from stan- Buchel Japan K.K.,

FOR SALENUCLEUS MANUFACTURING OPERATION & NUCLEI

South Pacific Nucleus, founded in 1990, operates two shops: a 1,000 square foot cube cuttingfactory in Tijuana, Mexico (with 6 employees); and a 1,400 square foot finishing, polishing and gradingfactory in Costa Mesa, California (5 employees). Price: $150,000 for all equipment and fixtures,on-site training included. Shops can be easily moved, and terms are negotiable. South PacificNucleus also has all sizes and grades of nuclei for sale at discounted prices. Contact us for any of yournuclei needs. Principals and serious buyers only: fax (714) 645-7110 for more details.

LV '..J

The International Pearting Journal

"Chinese" from page 1 mixed with lower quality. We buy develop jewellery designs infrom pearl markets in China the cooperation with jewellery man-

US$800 a strand. Akoya pearls higher quality lots at about ufacturers in Japan." Pieces arefrom Japan? No. They, too, are US$15,000 a kilogram and sort in platinum and gold... andstrands of Chinese FWPs. the pearls very carefully. We wholesale from US$100 to

«A top quality freshwater market pearls of high quality in US$3,000. The best selling pricepearl with excellent luster is as single pieces, pairs as well as range is US$300 to US$400.rare as a top quality South Sea strands."pearl of the same size, so why The potential of producing MAN SANG TRADINGshould we sell high quality higher quality pearls in largerChinese freshwater pearls at a sizes is great in China, Mrfraction of the price of South Sea Tajima said. "But as long as The increased supply oflargepearls?" Director of Stream lower quality can be marketed at freshwater pearls will put pres-Trading, Sansei Tajima, asked. profitable prices, farmers will not sure on prices of white and black

"It is a misconception that all make an extra effort to improve South Sea pearls, the ChairmanChinese freshwater pearls are of quality. of Man Sang International Ltd.lower quality and cheap. Good "The larger sizes brought in Hong Kong, Ricky Cheng, said:quality pearls in large sizes exist onto the market in 1998 are the "More and more 9mm to 14mmbut they are rare. Out of 20 tons result of an oversupply of pearls freshwater pearls are beingof freshwater pearls, only two in the past four years. Some brought onto the market. Theykilograms are 9mm and- are usually priced muchabove, and only 500 lower than white andgrams are rounds with     black South Sea pearls:good luster and coating; Out of 20 tons of Chinese The company recentlyMr. Tajima said. sold some graduated

The company began FWPs, only 2kgs are 9mm strands of Chinese fresh-specializing in the mar- and above, and only 500 water pearls 9mm to 11keting of high quality mm at US$2,000 a strand.Chinese freshwater grams are rounds with good '+South Sea pearls of simi-pearls in 1994. lar sizes and colors are atluster and coating."Previously, we supplied least US$4,000 a strand,"pearls 8mm and above. he said.Now we are concentrat-- Man Sang launcheding on 9mm and above. treated black freshwaterThese pearls are now coming in farmers are forced to keep their strands 9mm to 11mm duringnatural colors of champagne, mussels in the water for a longer the September Hong Kongorange and purplish, in addition period, waiting for a better price Jewellery & Watch Fair whichto the traditional white." at which to sell them. gave buyers a lower price alter-

"Buyers in Japan and "Quality will improve signifi- native to Tahitian pearls. "WhenTaiwan appreciate the high qual- cantly if farmers cultivate fewer I was in Tahiti, I suggested toity of the pearls and are willing pearls in each mussel. At the Tahitian pearl associations thatto pay US$1,500 to US$4,000 for moment, some mussels have as they study the potential threat ofa strand of 9mm to 11mm pearls. many as 20 pearls implanted in 8mm to 11mm treated blackJewellery manufacturers in each shell. This explains why freshwater pearls on TahitianHong Kong are more reluctant to larger sizes are generally of pearls. Prices of treated blackpay high prices as they do not lower luster. Few farmers in freshwater will be significantlyconsider Chinese freshwater China understand that they can lower than natural color Tahitianpearls as a luxury item. increase profits by cultivating pearl," said Cheng.

"Most suppliers in Hong fewer but better pearls." Treated black freshwaterKong sell Chinese freshwater Stream Trading also supplies pearls, mostly in the 4mm topearls in about the same way a line of jewellery made with 7mm range, were brought ontosuppliers sell rice, as a basic freshwater pearls. "To promote the market in 1996 whenmerchandise and in large quanti- the high quality image ofties. High quality is quite often Chinese freshwater pearls, we "Chinese" to page 7

The International Pearling Journal

"Chinese"from page 6 «The demand for large fresh- relatively stable compared withwater pearls is expected to be other sizes and shapes. In the

demand for pearls do darker strong as they are good value early 1989s, 6mm and 7mmshades picked up. compared to other categories of pearls were considered large in

The profitability of some cat- pearls," Mn Cheng added. the freshwater category. Nowegories of Chinese freshwater large sizes can be up to 15mm,pearls has improved, and Man taking six to seven years toSang has decided to strengthen TUNG FAT TRADING grow" Mr. Ngai said.its wholesaling by concentrating «The increased supply ofon high quality pearls selling The rise in supply of Chinese Chinese freshwater pearls up tofrom US$2,000 a kilogram and freshwater pearls above 9mm in 15mm will affect prices of Southhigher. "Overall prices decreased 1998 and 1999 may bring about a Sea pearls. Apart from theirin past years because of oversup- decrease in prices oflarge sizes, a more accessible prices, Chineseply., In the years of low prof- pearl supplier in Hong Kong freshwater pearls have a higheritability, producers in China tend feels. Theto sell the pearls in mussels, so President of buyers can continue the cultiva- Tung

Fat £ 6tion until they can sell the pearls Trading Co, Ngaiat a profit," Mr. Cheng said. Shek Fai, said. UI Apart from their more

"This practice has not only expect prices to accessible prices, Chineseenabled farmers to avoid dump- go down betweening their goods, it has also five percent and FWPs have a higher resistancebrought about the cultivation of ten percent for to shock because of [their]larger sizes, as pearls are often large Chinesecultivated for more -than four FWPs in medium solid layers of nacre.years. to top quality as     

"We expect the supply of demand in AsiaChinese FWPs in the 8mm to remains weak."12mm range to increase signifi- Large pearlscantly in the next two years, from the company are sold from resistance to shock because ofalthough the percentage of high US$5,000 to US$25,000 a kilo- the solid layers of nacre. Andluster round pearls will remain gram. many consumers have a prefer-low. "We used to sell a significant ence for the natural hues of pur-

USome wholesalers in China amount of large Chinese fresh- ple and orange in freshwaterconcentrate on collecting large water pearls in medium to good pearls. Many more suppliers aresizes in various shapes and sell quality to Japan, South Korea, competing for a share of thesethe pearls from US$20,000 a Taiwan and the Philippines. goods," he said.kilogram. Some pearls are sold Before the economic crisis, Asiaindividually at incredibly high took up 25 percent of our total

YAKUSHIPEARLJAPANprices, above US$400 each. These sales of these pearls."pearls are for collectors rather To expand the market forthan for the mass market" Cheng large freshwater pearls, Tung Yakushi Pearl Japan inadded. Fat is developing its sales of Osaka, Japan, was founded in

Apart from the breakthrough strands. A strand of 10mm rice- 1963 and is among the few com-at cultivation level, processing shape pearls of medium quality panies which have a well-definedtechniques have also significant- is around US$900 and a strand marketing approach to promot-ly improved. Several major of 9mm round pearls of medium ing high quality Chinese FWPs.processors in Hong Kong and quality goes off at about President Koji Yakushi expectsJapan have succeeded in giving US$1,000. this category to contribute 50%processed Chinese freshwater Tung Fat was established in of the company's total sales bypearls a pinkish tint rather than 1985, and has been concentrat- the year 2000 (currently,the bleached yellowish-white ing on sales of large pearls since Japanese Akoya account forcolor we have all become accus- 1983. "Prices of large sizes ortomed to. round pearls have always been "Chinese" to page 8

r

The International Pearling Journal

"Chinese"from page 7

some 90%). «We supply ChineseFWP jewellery to high-end retail- SUMMATIONers- including some of theworld's best-known. The best sell- ON THE SUPPLY SIDEing are strands at about US$100 • Supply of Chinese freshwater pearls 9mm to 15mm isto US$300. Strands of quality

increasingpearls 8mm to 10mm in graduat-ed sizes and colors are selling up • Cultivation of these sizes takes four to six yearsto US$700. We have strands atUS$10 but buyers are not inter- • Profit margins for these pearls are healthyested in these qualities."

• More companies are competing to supply these pearlsAlthough white pearls are indemand, sales of natural purple in Chinaand orange pearls are increasing • Some companies offer high quality color graduatedWith domestic demand ris- strands showing a play of natural colorsing, the company plans to expandsales to other markets. Yakushi • Some suppliers are developing sales of strands of largebegan processing freshwater sizespearls in China in 1991. In 1996,the operation was moved to • Strands of treated black pearls 9mm to 12mm willXingtang, near Guangzhou in become a lower price alternative to Tahitian pearlGuangdong Province, and some strandsUS$1 million has been investedin the latest polishing and • Strands ofwhite to yellow pearls Omm to 12mm will

drilling machinery to bring annu- provide buyers with a lower price alternative to whiteal output to one ton of FWPs. to yellow South Sea pearl strandsSome 60 workers are employedonly for drilling and stringing.

ON THE MARKET SIDE"The advantages of buildinga base in China include a large • Awareness of the high quality of freshwater pearls isand highly-skilled workforce, low increasing in the United States, Europe and Asiacost ofland and production, and asupply of high quality pearls • Demand is rising for large freshwater pearls in thedirectly from the source, as well United States and Europeas a domestic market with a very • Demand in Asia has been affected by the adversestrong potential for development.The disadvantages are difficul- economyties in obtaining market informa- • Prices of large pearls may go down between 5% andtion and building trade connec- 10%tions, as well as the many differ-ences in trading cult:ures. • The popularity of natural colors, particularly pink to

"We buy top quality freshwa- purple, is growing rapidlyter pearls at US$2.85 per gram.Although production of Chinese • More wholesalers and retailers are striving to upgradefreshwater is high, about 600 to the image of Chinese freshwater pearls1,000 tons each year, only twopercent are round, three percent • Suppliers have more confidence in promoting high-endsemi-round, ten percent oval, freshwater pearlsforty percent rice-shape and • Certain freshwater pearls are fetching equally highforty-five percent baroque." * prices as South Sea pearlsSource: Jewellety News Asia

The International Pearling Journal  

A new farm software program: Part 11

BETTER PEARL FARMINGMANAGEMENT =PEARLING

The Shell Management System (SMS), is a specialsoftware computer program designed for the pearling SONWARE=industry. It is designed to perform many functions and canbe used by farm managers and accountant:s through to The Shell Management System is a tailor-madefarm owners. SMS can be configured to manage compa- computer system designed to manage pearl farms. Itnies with a single farm, through to larger companies with is Microsoft compatible and has the ability to corre-multiple farm sites. SMS is built usingthe latest tools and late and analyze all information that is stored in thetechniques, and uses a relational database to store and database. The system is currently being used bymanipulate the data. The system is Microsoft compatible many pearl farms around the world, and has provenand can run on standard PCs and office networks, and can to be reliable and easy to use.be translated into Japanese, French, Indonesian, etc.

+ The system can be individually configured to anyfarm's specific requirements.CONFIGURING SMS + Translations available for Japanese, French,Indonesian, etc.The Shell Management System (SMS) was designed + Maintains accurate shell counts for all shellso that it could adapt to any type of pearl farm in any groups.country. This system call be configured to any specifica- + Complete historical data is kept for all shelltions, and has been used at hatchery farms, quarantine groups from the moment they arrive at a farm,sites and production farms around Australia. and over- until their eventual death.seas. The system can manage Black Pearls, South Sea + Stores cleaning details and fouling densities.

Pearls, Fresh Water Pearls, etc., and can be tailored to + Keeps accurate dead and missing shell registries.your company's requirements with new reports, translat- + Records operation details, x-ray results... and caned to another language, or other system changes. Tailor- determine technician retention rates.made changes can remain confidential and be made avail- + Monitors hatchery survival rates.able to your company only... or incorporated in the rest of + Runs R&D experiments against different groupsthe system and available to other companies. of shell.

+ Statistically analyzes historical data, includingMAPPING CAPABIL¥rY monitoring the performance of shell groups

against each other.This system comes with a built-in mapping utility + Grades pearls and compare harvest results.

which allows you to draw freehand maps of the farm. The + Identifies ways to increase productivity and profit.maps will typically show where the shell are located... a + Electronic download facility permits transfer datacompass rose... and any other features and/or comments from remote farms sites to anywhere in the world.deemed important. The aim of these maps is to avoid con- + Managers will be kept better informed by meansfusion on the water by assisting crews identify the correct of instant access to the latest farm details.shell to work on, and help prevent shell being accidental- + Comes complete with staff training and a userly mixed. manuaL

To find out more about the Shell Management System and ways

SHELL TURNING PROGRAMS it can better manage your pearl farm, please see the detailsbelow.

Another feature of this system is the ability to putinto place a list of activities for any group of shell on a AQUAFARMfarm. For example: after operations, the shells can beplaced on a turning program where on predefined days /121 MANAGEMENTthe panels are turned. Turning programs can be devisedfor any set pattern, and then assigned to any group of

el=,4 SYSTEMSshell. The system informs users when a group of shell fl f,/321needs turning, and keeps track of where they are in the 11=f PO Box 919, Broome 6725turning program. Shell turning programs help managers Western Australiacontrol a farm more efficiently by ensuring jobs are on

Software Solutions Phone/Fax: (61)(500) 558-585time, and not accidentally missed. For Peding Mobile: (61)(41) 904-4112

Email: bakergln@tpgi.com.au

"SMS" to page 10

The International Pearling Journal

'*SMS"from page 9 SYSTEM REPORTING

SHELL PROFILING This system comes with a wide selection of reportsthat are already part of the print utility The print utility

Over time the SMS database will build up a profile for has a preview mode and zoom facility so you can displayall shell groups, for the various stages of their lives. This reports on the screen before printing them. Most of thesesystem can distinguish between different types of shell reports can be manipulated by a comprehensive list ofand farm locations... and over time it will creal:e an accu- options, which enables you to extract information in manyrate picture of which shells have performed well, and different formats.those that have been below average. By looking at thisinformation you can determine how you're performing, SECURITYand estimate future harvest results based on the survivalrate profile for your farm. The SMS database conforms to the Microsoft securi-

ty protocols, and manages system access rights throughBESEARCH & DEVELOPMENT MODULE user names and passwords. The security facility built into

the package allows you to define which employees can useSMS has a facility to run R,&D experiments against the system, and the level of access they can have within

individual shells, selected panels or complete groups of SMS. Without a valid password you can be assured yourshells. Experimental results are stored in the central data- confidential information will remain fully protected in this

base, and from here the data can be collated and analyzed. secured database.Experimental results can be analyzed in conjunction withother details, such as datalogger recordings and mortality TRAINING & SUPPORTdetails, etc. This is a better approach than separatingR&D data from farm data, and not being able to compare SMS comes with staff 1:raining, a fully documentedand correlate the two. user manual, and after sales support. Aquafarm

Management Systems understands that staff training

PEARL GRADING and after sales support are important ingredients toensure the success of any computer system. Customers

Harvests by their very nature are a busy time ofyear, that use this system are fully supported wherever theysotheactualgradingofthe pearlsmayormaynothappen are, and can have problems diagnosed and fixed by simplyimmediately. SMS takes this into consideration by provid- plugging their PC into a telephone or satellite phone.ing two types ofgrading, a preliminary grading and a finalgrading. A preliminary grading is designed to record the SATISFIED CUSTOMERSbasics for the harvest pending the final grading. The fnalgrading fills in all the blanks by providing an in-depth 'Maxima have found that the system has become abreakdown of the harvest results on a technician or shell valuable tool in the maintaining ofshell stock records andgroup basis. The weights and number of pieces are the production of up-to-date reports for management;."entered into the various categories, shapes and colors and (Maxima Pearls)then assigned a unique batch ID. SMS provides an in- «We have found the SMS to be user-friendly, reliable,depth analysis of the results, and converts all weights to job specific and (yet) versatile. It has proven itself as amomme and kan, and calculates the harvest's value in yen valuable management tool, with considerable scope toand other currencies. become ofeven greater use in the future:(Pear]Autore) 4

MABE PEARLS: THEY'RE NOT SECOND RATE ANYMOREime was when mab6s were would swear these pearls were feel they should be called a com-pretty well assigned to the fully globular glories for which posite rather than a culturedalso-ran segment of the their owners shelled out a whole pearl, had their way "

cultured pearl population. Those lot of money. Years ago, CIBJO tried todays are fast receding into the "But they don't know the pacify both sides in this ran-distant past as these large, round half of it. Mabas, also known as corous nomenclature dispute bybeauties are now coming on mar- blister pearls, look like lusciously passing a rule that requiredket with an astounding array of large Akoya and South Sea mab6s to be called'composite cul-colors... and better surfaces. pearls, but, in reality, are half the tured pearls.' Like all such cut-

David Federman of Modern size and very often one-tenth the the-baby-in-two compromises,Jeweler even has become an affi- price. the rule is rarely, if ever, heeded.cionado, writing: «From afar and "Yet sad to say, they wouldeven pretty close up, most people cost far less if pearl purists, who "Mabas" to page 12

The International Pearling Journal -JOINT VENTURE MAKING HUGE STRIDES IN MYANMAR

A tlantic Ltd, a public com- Australian pearl quota, which due to start in December, 1998,L,1 pany based in Perth, has they sold to Broome Pearls some and over the preceding months a

I-lrecently signed a long years ago. The company also number of containers have beenterm joint venture agreement knows how things work in the shipped in with equipment towith the Myanmar Government fishing industry of Myanmar. completely revamp the hatcheryto upgrade and increase pearl It also has another successful on Pearl Island.production in the Mergai existing company with head- KRI Ltd., an emergingArchipelago in the south of quarters in Yangon (Rangoon), Indonesian producer, is provid-Myanmar, or Burma, as it was which operates four Australian- ing technical support. There arepreviously known. built 25-meter prawn trawlers in a number of Australian special-

The agreement was signed in Myanmar. This facility has ists on site in Myanmar who areFebruary, 1998, and things are proved an invaluable beachhead fully experienced in hatcherymoving swiftly to get production and grow-outpearl production to . in both Australia andmuch higher levels. Thejoint venture is called INCHES 1 Indonesia. An experi-

enced Aussie drift diverMyanmar Atlantic Ltd. has been added to the

The pearl growing team to organize thecapabilities of Burma wild shell quota thathave long been known comes with the jointsince Takashima set up venture.a successful pearl farm- Everyone connecteding venture on Pearl with Myanmar AtlanticIsland in the 1950's. is encouraged with the

It is fair to say that progress experienced tothings have not gone so date... and with bothwell for Burmese pearl short and long-termproduction in more prospects. Not only arerecent times, when other

hatchery buildings,there facilities such as

South Sea pearl produc-ers in Australia particu- wharves and jetties,larly, and in Indonesia, accommodations, etc.,have leaped ahead with already in place foradvanced technologies This exquisite egg-shaped cultured pearl is typical of the glory days of Myanmar Atlantic to

Burmese pearling. Measuring 11.5 x 13.9mm, it is classified as 'Veryand efficient systems. fine' due to its clean surface, high lustre and unusual golden-pink orient.revitalize, there is also a

The Burmese pearl It Is one of the prize possessions of the Eve Alfilld Gallery. In toaning this large pool of trainedindustry was national- beauty to us, Eve writes: "This Burmese peart was purchased in Las Burmese biologists andized in 1963 and in rec- Vegas in 1993, and was identified and admired by John Latendresse... workers on hand.

Avi Raz also saw it and concurs that it is Burmese." Pearl courtesy ofognizing the need to pro- Eve J. Alfilla Ltd., 623 Grove Street, Evanston, Illinois 60201. Phone: Already the localsvide more modern tech- (847) 869-7920. Fax: (847) 869-5451. can see the enormousnology, we have seen the advantage of the sys-Myanmar government establish in getting the complex pearling tems and equipment that hasthree recent joint venture part- venture up and running. arrived on their doorstep; andners to assist in production of Effectively, Atlantic has they have quickly adapted tohigher pearl exports and the gen- secured the lease of the existing modern pearl farming techniques.eration of foreign exchange. hatchery on Pearl Island, as well The bringing together of a

One ofthese is local, with the as securing water leases at vari- number of positive factors seemsothers being Tasaki from Japan ous locations to handle the surge to put Myanmar Atlantic in theand Atlantic from Australia. of production that has already unique position of being able to

Atlantic, through their started. In the space of the two- qiiickly and economically bring aChairman and major sharehold- month spawning season avail- previously well-known ander, Joe Rotendella, is well posi- able to them after signing, respected pearling center ri httioned to work Myanmar Myanmar Atlantic hals spat in back into the 21#- ifnot the 20 -Atlantic to its full potential. the production line. Century. *

Atlantic previously held an The next spawning season is Source: Atlantic Limited

The International Pearling Journal

"Mabes" from page 10 pearls to fill that need. Yet mab6s two domed hemispheres arestill provide big looks for little affixed directly to the inside of

Nor need it be... provided con- money, which gives them an the shell, one on each half. Caresumers are given a full explana- important market niche. must be taken to place the nucle-tion of the unique post-harvest- «Today mab6s supply glory us just outside the oyster's meatying process to which these pearls as well as girth, thanks to break- innards but far away from theowe their existence. throughs in cultivation tech- shell's black rim.

«Unlike other cultured niques in Japan, Australia, and '®To ensure impressive nacrepearls, the only remnant of a Tahiti. No mab6s better sum up accumulation (averagingmabd's original self that remains the modern-day art than those between 0.7 and 1.5mm), Amamiafter it is removed from the oys- coming from seven farms on Island mabas are allowed to growter is its nacre, which is stripped Japan's Amami Island, fifty for three years. And because theyfrom the nucleus on which it miles north of Okinawa. Thirty grow in colder waters subject togrew and attached to a totally years ago, eleven Japanese com- greater temperature variationsnew inner body. Because a mabe panies formed a Mab6 Pearl which cause nacre build-up atis thus the product of an elabo- Association. One of their first different rates, the best surviv-rate skin graft, purists think its ventures was to build an oyster- ing pearls boast luster so intensename should somehow acknowl- breeding facility on Amami, habi- they seem moist and glistening.edge this fact. tat for a black-winged oyster, «How pearls with nacre so

'«You're taking what is, in Pinctada penguin, that was per- massive and mirror-like could beessence, a nacre pelt and giving fectly suited for growing mabds. considered less than culturedit a new nucleus made out of A recession soon caused the orga- stumps us... although we are wellsome filler,' says one dealer who nization to disband. But one com- aware that final processingrefuses to sell mabas because he pany, Tasaki Shinju, continued makes these triumphs of thesays they are «one step removed to experiment with developing a pearl grower's art (technicallyfrom imitation." But his brethren tank-bred version of Amami's speaking) an assembled gem.argue that because a mabd's mabe-oyster. "Far more bothersome to usmost important part, its nacre, is "Finally, in 1975, relates is the plenitude of short-growthintact, original, and unadulterat- Minoru Matsunaga, Chief mabds with nacre crusts rathered, this pearl can be called cul- Executive Officer of D'Elia & than coatings. Especially whentured despite new scaffolding. Tasaki Co. Ltd. in New York, the growers have made such strides.

«The first successful cultured company succeeded in harvest- «At a ritzy pearl auction inpearls, grown by Kokichi ing 100,000 mollusks. When one Kobe, Japan, last July, New York-Mikimoto at the end of the 19th looks at the inside of a black- based South Sea pearl specialistCentury, were forerunners of the winged shell, you'll know why Albert Asher saw magnificentmodern mabd, grown by cement- Tasaki wanted to use them for soft-mauve colored mab6s withing a nucleus to the surface of an pearl-growing. Once beyond the mind-boggling opening-bid pricesoyster shell, allowing nacre to shell's black rim, you see a moth- of US$1,000 per pearl. 'Theyform around it, removing the er-of-pearl lining ribboned with were so beautiful,' Asher says,resulting blister pearl, grinding rainbow iridescence, most 'that anyone with a low opinionoff its base, and replacing it with notably soft sunset pinks and of mabds would have immediate-a mother-of-pearl backing. washes of baby blue. ly revised his thinking.'"

"Later, when Mikimoto "If seeding is successful, So get ready to revise yourdeveloped his fully-rounded cul- these colors suffuse the nacre of thinking: mabds are coming intotured pearl, Japanese pearl the pearl. But that's a big if. play more and more these days.farmers pretty mush ignored the Tasaki, probably the world's With a better array of colors, andhalf-shell variety. Indeed, veter- most adept grower of mab6s, is better surface coatings.. andan cultured pearl specialists like always plagued with at least a 50 very reasonably priced... mab6sRaymond Mastoloni in New York percent oyster-mortality rate. may be just what the next con-City recall that mab*s only "And no wonder. Seeding sumer coming into your shopbecame a market fixture in the mabe oysters is an art unto itself. may be tempted to buy. And this19503. 'Back then, mabas were Instead of inserting a round is good news for all who deal inpractically the only way you bead-nucleus deep in the oyster this segment of the culturedcould buy very large pearls,' he tissue as is done with most salt- pearl market. *says. 'Now we have South Sea water pearl-culturing, at least Source: Modern Jeweler