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Operation Phakisa: Unlocking the Economic

Potential of South Africas Oceans

AQUACULTURE
Invest in South Africa: The Oceans Economy Seminar,
London
7 July 2015

Contents

Overview of the aquaculture sector


Overview of initiatives

Investment opportunities
Skills development & research needs

Globally, Aquaculture contributes to almost half of total supply

Global total fish production wild catch and farmed


(reported)
Mn tonnes

Share of
Production

160
140
120

Aquaculture
Wild catch
+7.2% p.a.

44 %

Factors influencing supply


Supplementing
wild capture
within
maximum
sustainable
yields

The need to employ sustainable fishing


methods has become more important due to
dwindling stocks of certain species

FAO has classified most wild fisheries as


either fully exploited or over exploited

Increasing demand for fish products

100
80

New technologies and breeds e.g. RAS

+0.9% p.a.

60
56 %

40

Better
technologies
and production
methods

system and GIFT strain for tilapia has


enabled better yields and lower long term
input costs

Higher stocking capacity for shrimps which


allows for higher yield

20
0
1970

Investment in research and development


1980

1990

2000

Aquaculture production has shown strong growth of 7.2%

p.a. from 1970 to 2012.


Currently, Aquaculture accounts for almost half of total fish
production1
Asia accounts for 88% of global Aquaculture production:
1

Governments have a responsibility to ensure

2012

that everyone has enough to eat.


Food Security

Food needs to be available, accessible and


affordable through a resilient and reliable
supply system

Fish is regarded as an essential part of a


healthy and nutritious diet

Fish production refers to fish and shellfish production


SOURCE: FAO State of World Fisheries and Aquaculture 2014; FishStatJ

Globally fish stocks are declining, and wild capture will not be able to meet
the increasing demand for fish products
Global trends point to an increasing role for Aquaculture in fish production
SA Annual
Production (2012)
Tonnes

SA Aquaculture production
Tonnes

Steady growth of 6% p.a.


5,999
+6% p.a.
2,819

6,037

5,999

2000

2006

2012

SA Marine catch production


Tonnes
715,320

Marine catch is plateauing


+1% p.a.

663,195

627,493

715,320

2000

2006

2012

SOURCE: FAO State of World Fisheries and Aquaculture 2014; FishStatJ, DAFF

In SA however, aquaculture is a young industry with low scale of


production

~4,000 tonnes
(excluding seaweed) of
Aquaculture production in 2013

~50% of Aquaculture
farms in SA are located in the

Western Cape

Untransformed sector
with 10% PDI participation at
management level in the sector

(28% freshwater, 72%


marine)

>600,000

In 2012,
tonnes of fish and fish
products was produced in

2,227 jobs in the sector

South Africa; only 0.8% of it


was from Aquaculture farms

SOURCE: FAO, FishStatJ, DAFF

Aquaculture contributes

~R 0.7 bn (0.2%) to
South Africas GDP

There is a great deal of diversity, however South African marine and


freshwater Aquaculture are dominated by six species
Marine Aquaculture is dominated by molluscs
Species
Abalone

Oysters

Overview

Farmed exclusively in WC
Production Prices: R45-60/ kg
Imports are cheaper; not

Mussels

Farmed exclusively in WC
Mostly exported
Production price: R280-360/kg
0.9-1 job is created per ton of
production
Maturity: 36-48 months

Freshwater Aquaculture is focused on finfish


Production
Tonnes1
1,111

241

+R18/kg fresh

Processed price: R25/kg


Maturity: 7 months
Marine finfish

Overview

Trout

Maturity:
Table Trout : 12 months
Large Salmon Trout: 18months

1 428

Catfish

Forms: Live, whole on ice,

160 (2011)
0 (2012)

required to meet same


sanitation standards
Maturity: 6 - 12 months

Mediterranean & Black mussel


860
Production price: R5.50/kg possessing

Production
Tonnes

Species

Tilapia

smoked fillet, pt
Production prices: R30/ kg
Maturity: 6-9 months

Is referred to aquatic

chickens
Market size: 9 months
Mozambique Tilapia is
endemic in SA

234

Dusky kob, Silver kob, Yellowtail, 280


White margined sole

Production prices: R35-45/kg


Maturity: 8-12 months

5 5

A typical seafood platter served in South Africa consists of mostly


imported produce:
Mussels: From
New Zealand

Squid: From
Argentina

Prawns:
From India

Linefish: Catfish
From Vietnam
6

Aspirations
HEADLINES 2019: SA economy reaps the rewards of Operation Phakisa
to Aquaculture in South African has
shown strong growth in 5 years, with

production from 2014 up 5


fold to 20,000 tons

The Aquaculture sector in

South Africa now employs

15,000 people in direct


and full time jobs..

Jobs in Aquaculture sector seen


as quality

jobs,
improving livelihoods
in rural communities.
Abalone

experts estimate the revenue

contributed by Aquaculture
to South Africas economy to be as
much as R 3 Bn

Oyster

exciting momentum built in


Operation Phakisa evidenced by

Aquacultures inclusive
growth

Mussels

Finfish

SOURCE: Aquaculture Lab

The Aquaculture sector in South Africa has incredible potential and yet
remains at a small-scale leading to many challenges for producers

Four project-related issues that contribute to or result from the sub-scale nature of the
sector in SA

Insufficient primary infrastructure


in rural areas Aquaculture in rural
areas are challenged by
infrastructure limitations

Research & Development is


fragmented
The R&D activities are not
coordinated and do not align with
industries needs.

Lack of access to quality inputs


Quality seed, fingerlings and feed are
critical to the health and quality of the
products. Due to the limited scale,
there are a limited number of input
suppliers to the sector, which also
increases the cost of production.

Lack of inclusivity
Limited participation by youth,
women and black people in the
sector . Currently, the sector
averages less than 10% PDI
participation at management levels

SOURCE: Aquaculture Lab

In addition, there are four supply-side and demand-side issues that hinder
the growth of the sector
2

Four enabler issues that relate to the ability of the projects to operate. These are cross-cutting
issues which impact the sector as a whole
Unsupportive legislative and
regulatory environment
The current regulation and
governance systems do not cater for
the Aquaculture sector specifically. In
addition, delivery systems are slow and
costly. Compliance burden serves as a
barrier to the sector
Limited access to land and sea
space as the Aquaculture sector is
often excluded from spatial planning. In
a user conflict situation, Aquaculture
does not often get priority
Small pool of skills and knowledge
in the sector. Due to the emerging
nature of the sector there is limited
extension support (specialised state
extension officers, veterinarians and
researchers). There is also little
awareness of Aquaculture farming as a
career and education option.

SOURCE: Aquaculture Lab

Access to finance
The Aquaculture faces difficulty
in accessing finance as it is not
well understood by financial
institutions and deemed to be a
high risk sector. The sector
requires high capital investment
and a long payback period

Limited accessibility of
markets due to undeveloped
value chains. In addition, limited
market intelligence has led to
fragmented marketing efforts.
Hence, production and projects
planning are not based on
demand

Solutions developed focuses on priority initiatives that support


the implementation of the of projects

Quick wins

1
Selection and Implementation of 24 Projects

Legislative reform

Inter-Departmental Authorisations
Committee

Aquaculture Development Fund

Capacity building for support services

Coordinated industry-wide
marketing efforts
SOURCE: Aquaculture Lab

Globally recognised
monitoring and
certification system

Regulations

Funding

Skills

Government
Preferential
Procurement

Market

10

Initiatives have been ranked in priority and budget


requirements have been specified

Detailed in following pages


Quick wins

Budget required R(mn)


Highest
priority

1 Selection and implementation of 24


Projects

2,867(Govt=1,165)

Establishment of an Inter-Departmental
Authorisations Committee

Establishment of an Aquaculture Development


Fund

Coordination of industry-wide marketing efforts

55

Legislative reform to promote Aquaculture


development

11,7

Establishment of a globally recognised


monitoring and certification system

27

208

6 Capacity building for support services


8

Preferential Procurement of Aquaculture


products

SOURCE: Aquaculture Lab

11

Quick wins

Implementation of Phase 1 Projects

24 Aquaculture projects were selected based on criteria developed in the lab. These
projects were categorised into 3 phases based on their readiness to start
implementation and operate, as follows:
Year 1

Year 2

Phase 1: Implementation of
9 Ready-To-Operate
projects in 6 to 12 months

New
Jobs

337
Tonnes

Phase 1

1,198

Phase 2

300

Phase 3

923

Tonnes

Phase 3: Implementation of
12 projects in 2 to 4 years
(more planning required)

585

2016
R(mn)

Achievement by 2019:
Production: 17, 644 tonnes
Revenue: R1,641 mn
New Jobs: 2,584 x 2 (*services)

Phase 2: Implementation of 6
Ready-To-Operate projects
in 12 to 24 months

513

2015

Year 3

603

2017
R(mn)

Tonnes

546

2018
R(mn)

Tonnes

2019
R(mn)

Tonnes

R(mn)

1,640

405

2,187

458

3669

599

4,541

700

62

365

72

1,325

146

3,931

348

6,478

594

56

1,393

70

2605

107

3,795

176

6625

345

333

12

24 projects have been selected and sequenced for implementation across


Project/enterprise
3 phases
Phase 1

Hatchery expansion- Paternoster- Oyster

Phase 2

Expansion- East London IDZ- Kob

Phase 3

Expansion- Hamburg cluster- Oyster

Coastal provinces

Expansion - Ventersdorp- Catfish

Inland Provinces

Expansion - Roman Bay Abalone


Expansion - Abagold
Expansion - HIK Abalone
Expansion - Amatikulu - Ornamentals

Limpopo

Expansion - Wild Coast Abalone - Abalone

Mpumalanga
North West

New- Wild coast abalone ranching cluster - abalone


New- Hamburg cluster - Kob

Gauteng
Ventersdorp

New- Saldanha Viking Cages - Trout and Salmon


New - Amatikulu - Kob

Free State

Hondeklip Bay

Northern
Cape

KwaZulu
Natal

Expansion - Marine Growers - Abalone

Richards Bay

Amatikulu

Expansion - Doring Bay Abalone - Abalone


Expansion- Saldanha Blue Ocean Mussels - Mussel
Expansion- Saldanha Bay Oyster Company - Oyster
New- Saldanha Southern Atlantic Sea Cages - Salmon

Doring Bay
Paternoster
Saldanha

Eastern
Cape
Western Cape
Overberg

New- Algoa Bay Sea Cage Farming - Yellowtail

ELIDZ

Hamburg
Algoa3

New- Richards Bay Sea Cage Farming - Dusky Kob


New- Diamond Coast Abalone Ranching - Abalone
ADZ-Ventersdorp - Catfish
Expansion - DST Abalone Hatchery
Expansion - Jacobsbaai Sea Products - Abalone

SOURCE: Aquaculture Lab

13

Establishment of an Inter-Departmental Authorisations Committee

Currently, there is an uncoordinated approach to processing of applications for Aquaculture,


approvals of which can take up to 830 days. The establishment of the Inter-Departmental
Authorisations Committee (IAC) aims to co-ordinate applications and approvals, with the
expectation of reducing processing time to 240 -360 days.
WUL

AIS

DWS

alth

890 days to 240/360 days!

et

Anim

DoH

DPE

sn
Tran

al He

IAC

ing/
Fund
trade

ti
The d

Capit
al M
agem anent

DEA

Prov
EIA

inces

DPW

e
Leas

Representation at the IAC by all


relevant departments
SOURCE: Aquaculture Lab

14

Establishment of an Aquaculture Development Fund

The Aquaculture sector faces difficulty in accessing finance as the sector is small and not well
understood by financing institutions.

ADF aims to fast-track growth, while meeting transformation objectives

Funding pool to assist end-to-end Aquaculture projects


Coordinates funding from various government departments and DFIs through an
MoC

Initial proposal for ADF to be managed by Land Bank/DFI


Key focus of ADF to drive transformation / inclusivity by providing new entrants
with access to funding in pre-production phase

15

7 Coordination of industry-wide marketing efforts


The players in the Aquaculture sector have limited access and awareness of markets
(a) Market
Intelligence

(b) Improve domestic


markets

(c) Value chain ownership and


product development

Inclusive
Market Intelligence
Information System

(d) Promote responsible, fair regulation and environmental certification

16

Even during the lab process, several issues faced by the


industry were resolved.
Key Outcomes from the Aquaculture Lab:

Done
In Progress

Impact on sector:

Proposal to reconsider increasing


the EIA thresholds legislation /
Environmental
regulation
Affairs

Time and cost savings since the majority of farms


would trigger a Basic Assessment (8-10months),
instead of a full Scoping EIR (14-24 months)

Exemption from listing of trout as


an Alien and Invasive Species
legislation / regulation where it is
already established

Growth of the trout faming section through


expansions and establishment of new farms in
areas they already occur, since the would not
need to undertake an additional risk assessment
and apply for an additional permit

Access to state land for


projects and zones in Phakisa

Environmental
Affairs

Public Works
Rural dev &
land reform

Access to sea space and duration


of leases
Transnet Ports

The security of tenure will increase investor


confidence through improved turnaround times
for lease approvals and duration of leases

Investor confidence through improved turnaround


times for lease approvals and duration of leases

Authority

17

Investment Opportunities:
Aquaculture Development Zones

What is An Aquaculture Development Zone?


An area or site either on land or sea set aside exclusively for aquaculture use or development
Aquaculture Development Zone may have bulk infrastructure(reservoir, water pump) to attract
investors
Aquaculture Development Zone are supported by key government policies such as Industrial Policy
Action Plan, draft Agricultural Policy Action Plan, National Aquaculture Policy Framework, etc.
Department of Agriculture, Forestry and Fisheries identified suitable Aquaculture Development Zone
based on:

- Locational advantages of the site


- Availability of quality water (freshwater or seawater)
- Carrying capacity of the ecosystem
- Accessibility to markets (Infrastructure and logistical)
- Potential socio-economic impacts (job creation, rural development, etc.)

18

Investment Opportunities:
Aquaculture Development Zones

Benefits of Aquaculture Development Zone

Minimising the cost of obtaining Environmental Impact Assessments Authorisation due to the
economies of scale

Minimising the costs of infrastructure development (e.g. Access roads, electricity, water intake and
discharge)
Easily coordinated support systems such as Extension Services, Veterinary Services, Hatcheries, etc.
Coordinated marketing
Associated benefits of agricultural zoned of the sites
Investment attraction
Job creation

19

Investment Opportunities:
KwaZulu-Natal Province: Amatikulu Aquaculture Development Zone
Location & Size
Situated approximately 130km from
Durban and 7km from Amatikulu River.
Targeted area is 110 hectares.
Land Based Zone
Targeted Species
Ornamentals, Finfish & Seaweed.
Current Status
Currently only 2 hectares are utilised for
Ornamental fish farming.
Potential Production and Job Creation
Production of 15 000 tons per annum
Direct Job Creation: 6 000 jobs
Indirect Job Creation: 10 000 jobs

Progress
Department of Agriculture, Forestry &
Fisheries are in negotiation with the
Ingonyama Trust Board to obtain a letter of
consent to utilise the identified site.
Department of Agriculture, Forestry &
Fisheries initiated the process of obtaining
Environmental Impact Assessment.
Department of Agriculture, Forestry &
Fisheries, KwaZulu- Natal Wildlife & Trade
Investment KwaZulu- Natal started engaging
potential investors
Challenges
Access to funding to develop infrastructure.

20

21

22

Investment Opportunities:
Eastern Cape Province: Coega Industrial Aquaculture Development Zone
Location & Size
Situated approximately 20km east of Port
Elizabeth
Targeted area is 300 hectares.
Land Based Zone

Progress
Feasibility study conducted.
Process of an Environmental Impact
Assessment is initiated.

Targeted Species
Finfish, Abalone & Seaweed.

Challenges
Possible opposition to the Environmental
Impact Assessment

Current Status
No fish farming is taking place at the
moment.
Project driven by the Coega Industrial
Development Zone
Department of Agriculture, Forestry &
Fisheries provides technical support
Potential Production and Job Creation
Production of 20 000 tons per annum
Direct Jobs - 10 000 & Indirect Jobs 15
000

23

24

25

Investment Opportunities:
Eastern Cape Province: East London Industrial Development Zone
Location & Size
Situated in the west bank of East London
adjacent to the East London Airport.
Area is 30.3 hectares
Land based Zone
Targeted Species
Finfish, Abalone and Seaweed
Current Status
Currently two farms in the zone
Current production of 200 tonnes

Progress
Continuous marketing of the zone and
identification of potential investors
Challenges
An agricultural activity in the Industrial
Development Zone results in high levies for
the farmers.
Access to support services

Potential Production and Job Creation


Production of 5 000 tons per annum
Direct Job Creation: 2 000 jobs
Indirect Job Creation: 3 000 jobs

26

27

28

Investment Opportunities:
Eastern Cape Province: Qolora Aquaculture Development Zone
Location & Size
Situated 60km northeast of East London.
Area is 26.4 hectares.
Land based Zone.
Targeted Species
Finfish, Abalone, Mussels & Seaweed.
Current Status
Service provider appointed to implement
the conditions of the Environmental
Authorization.
Potential Production and Job Creation
Production of 6000 tons per annum
Direct Jobs (1000); Indirect Jobs (2000)

Progress
Environmental Impact Assessment
approved.
Waste Management permit issued.
Community resolution issued.
Department of Agriculture, Forestry &
Fisheries initiated process of identifying
potential investors.
Department of Agriculture, Forestry &
Fisheries is developing zone designs,
architectural and management plans.
Challenges
Access to funding for infrastructure
development.
Lease agreement from the Department of
Rural Development and Land Reform.

29

30

31

Investment Opportunities:
Eastern Cape Province: Algoa Bay Aquaculture Development Zone
Location & Size
Algoa Bay, Port Elizabeth
Area is 285 hectares and sea based
zone
Targeted Species
Finfish (yellowtail)
Current Status
No farming activities are taking place
currently.
Potential Production and Job Creation
Production of 1 000 tons per annum
Direct Jobs 220
Indirect Jobs 780

Progress
Environmental Authorisation granted
Environmental Authorisation has been
advertised in the local newspapers as per
requirements
Appeals have been submitted to Department
of Environmental Affairs
Department of Agriculture, Forestry &
Fisheries to respond to appeals to enable
Environment Affairs Minister to make a
decision in light of the submitted
Challenges
Objections raised by lobby groups may delay
the finalization of the authorization.

32

33

34

Investment Opportunities:
Northern Cape Province: Vanderkloof Trout Aquaculture Development Zone
Location & Size
Vanderkloof .
Targeted Species
Finfish (Trout).

Progress
Feasibility study complete
Environmental Authorisation to be obtained
Zone area as Aquaculture Development
Zone

Current Status
No farming activities are taking place
currently.
Potential Production and Job Creation
Production of 11518 tons per annum
Direct Jobs 1000
Indirect Jobs 1000

35

36

37

FACT SHEET: HAMBURG OYSTER & KOB


VISION
Revitalisation of the oyster farm and expansion of a
kob pilot project in Hamburg to 1000 ton commercial

TARGETED SPECIES
Pacific Oyster
Dusky Kob

farm, Eastern Cape. This will increase oyster production


and improve the socio-economic status of the
Hamburg community

LOCATION

CURRENT STATUS
Current production = 16 tons oysters,
Expansion = 54 tons oysters,

Situated in the Hamburg, Eastern Cape Province

Sea Based and Land Based site

Farm gate price Kob = R50/kg


Farm gate price oysters R50/kg
Oyster rafts continuously maintained.
R500 000 has been acquired from ECDC for the ongoing
maintenance of the oyster rafts.
Recruited 21 staff members employed on oyster farm and
kob pilot farm.
The Hamburg Kob pilot project is complete and fully
operational.
3 batches of fish have been supplied to the farm.
Received Environmental Authorization for 1000 ton
expansion site from Eastern Cape Provincial Government
3838

FACT SHEET: HAMBURG OYSTER & KOB


REQUIRED RESOURCES

BUSINESS OVERVIEW

R350 mn investment required for kob and

The Department of Agriculture, Forestry and Fisheries,

R14 mn required for Oysters

Branch Fisheries has identified a number of aquaculture

GROWTH STRATEGY AND


PROSPECTS

projects that aim to empower coastal communities through

The oyster farm will have the capacity to produce


over 70 tons of oysters per annum.
The holding facility will hold oysters collected from
the oyster racks and from oysters collected from the
wild by subsistence oyster fishers.
A dusky kob pilot project has been established on the
2 hectare site and will have the capacity to produce

transfer of technology, skills development and job creation.


The projects are expected to contribute to the development of
economy activities within inland and coastal communities,
particularly those that that has been affected by the decline in
the capture fisheries. Hamburg (Eastern Cape) has been
identified as specific locations where intervention is required
due to loss of jobs from closure of the oyster farm and the
potential of the area for aquaculture.

10 tons of kob per annum.


An Environmental Impact Assessment has been
conducted on the site to determine the suitability of
the site for the implementation of a 1000 tons dusky
kob farm

Ease of implementation:
L

Impact:
L

3939

FACT SHEET: OCEANWISE KOB


EAST LONDON INDUSTRIAL DEVELOPMENT ZONE (ELIDZ)
VISION
Aim to expand the current 500 tons/year of dusky kob
to 3500 tons/year of kob, and new finfish species, by
December 2019, in order to increase employment from

TARGETED SPECIES

Dusky Kob

Finfish, Abalone and Seaweed

100 to 600 jobs and increase contribution to the GDP.

LOCATION

Situated in East London, Eastern Cape Province

Land Based site

CURRENT STATUS
Environmental Authorisation already exists with ELIDZ for
the expansion of the farm
The business plan has been completed
The Marketing Plan has been completed
1st phase of Oceanwise BEE transformation to 26% has
been formalised and completed.
Feasibility study for centre of excellence underway.

4040

FACT SHEET: OCEANWISE KOB


EAST LONDON INDUSTRIAL DEVELOPMENT ZONE (ELIDZ)
REQUIRED RESOURCES
Investment R 139 mn

GROWTH STRATEGY AND


PROSPECTS
Create sustainable jobs and increase contribution to
the GDP from R32 mn to R228 mn

BUSINESS OVERVIEW
Oceanwise has pioneered the farming of dusky kob in South
Africa and is well positioned to expand production.
Oceanwise has invested extensively in the creation of a
world class aquaculture facility where Dusky Kob (Kabeljou)
is successfully farmed and marketed and a number of other
species are being developed also as sustainable sources.
Through utilisation of specialised aquaculture technology the

Create a technical support platform for other marine


finfish and kob farms
2015: Transformation 51% BBBEE

company will continuously improve on its farming procedures


so that only top quality products are supplied to local and
international markets.

2016: Expand production: 500 1000 ton


2017: Expand production: 1000 2000 ton
2019: Expand production: 2000 3500 ton

Ease of implementation:

Impact:

Employment Equity Scheme, resulting in 51%


BBBEE ownership in the company

4141

FACT SHEET: EXPANSION HIK ABALONE -BUFFELJAGS


VISION
HIK Abalone Farm (Pty) Ltd is an established abalone

TARGETED SPECIES

Abalone

farm with a production of 165 ton in 2014. Planned


shore based farm expansion will grow production to
294.8 ton in 2019.

LOCATION AND SIZE

Situated in Hermanus, Western Cape Province

Land Based site

CURRENT STATUS
ADEP funding sourced from DAFF/Department of Trade and
Industry (DTI) for expansion of farm.
The Environmental Impact Assessment underway for the
expansion of the Buffeljags abalone farm.
Increased hatchery staff capacity and 1 farm manager.
Current production = 165 ton;
Expansion of production = additional 135.8 ton;
FOB price = R300-350

4242

FACT SHEET: EXPANSION HIK ABALONE-BUFFELJAGS


REQUIRED RESOURCES
Capital Investment (R56.15 mn)
Opex investment (296.156 mn)

BUSINESS OVERVIEW
HIK Abalone Farm started in 1997, with the construction of
the first grow-out platform. A hatchery soon followed in 2002
to the ensure the self-sufficiency of the company. HIK has

GROWTH STRATEGY AND


PROSPECTS

gone from strength to strength in the last decade, with current

Increase farm production from shore based units

employs 110 people, 30 of whom are occupied in highly

Construct and operate own processing and packing

annual abalone exports of over 150 tons. HIK currently


specialised mid- to senior-management positions.

facility, thereby ensuring self-reliance and saving on


processing costs
Increase hatchery output and selection, thereby
improving on-farm growth rates
2014: Expansion of hatchery & construction of
processing facility
2015: First production tanks on expansion site
2019: Full production from expansion site

Ease of implementation:
L

Impact:
L

4343

FACT SHEET: DOORINGBAAI ABALONE (PTY) LTD


VISION

LOCATION AND SIZE

Doringbaai Abalone is a abalone grow out facility and

Situated in Dooringbaai, Western Cape Province

hatchery in Doringbaai on the West Coast of South

Land Based site

Africa. The community own a 35% share in the


company to secure sustainability and upliftment. With

TARGETED SPECIES

this initiative we aim to secure job creation and a


positive transformation of

current conditions in the

Abalone

community.

CURRENT STATUS
Has a conditional lease agreement in place from Dept.
Public Works
Underway with environmental impact assessment.
ADEP funding sourced from DAFF/Department of Trade
and Industry (DTI) for expansion of farm.

4444

FACT SHEET: DOORINGBAAI ABALONE (PTY) LTD


REQUIRED RESOURCES

BUSINESS OVERVIEW
Dooringbaai Abalone (Pty) Ltd has been operating as a grow-

Investment R 66 433 108 mn

out facility and have recently finalized the building of their


abalone hatchery. The farm buys in abalone spat from a

GROWTH STRATEGY AND


PROSPECTS

developed abalone farm (Abagold (Pty) Ltd) and grows the


animals out to a size of 80-100g, which are then sent to

To increase the target production of 30 Tons/annum

Abagold (Pty) Ltd for processing and marketing of the

to a total production of 100 tons/annum.

product. In 2014 the farm harvested approximately

Sustainable job creation with the effect of less

1360.29kg, however the farm has the capacity to produce 30

poverty.

tons of abalone. In 2015, a decision was taken to expand the

Initiate future development of schools.

farm due to the high demand of abalone in the market. The


objective of the expansion is to increase the carrying capacity
of the farm from 30 tons to 100 tons of abalone over the next

Ease of implementation:

Impact:

two years.
M

4545

FACT SHEET: OVERBERG ABAGOLD- ABALONE


VISION

LOCATION AND SIZE

Abagold is an established abalone farm with a

Situated in Hermanus, Western Cape Province

production of 328 tons in 2014. Planned shore based

Land Based Zone

farm expansion will grow production to 499 tons in


2017

TARGETED SPECIES

Abalone

CURRENT STATUS
Current production = 328 tons
Expansion of production = 499 tons
FOB price = R300-350
Contractors have been appointed for the expansion of
Abagold abalone farm.
Approved ADEP from DAFF/DTI funding.
Reapplied for ADEP DAFF/DTI Funding for further farm
expansion.
4646

FACT SHEET: OVERBERG ABAGOLD- ABALONE


REQUIRED RESOURCES

BUSINESS OVERVIEW

Investment R53 mn

Abagold produces abalone, the world's most desirable


seafood, in close harmony with nature at the most southern
tip of Africa. The pristine cool water of the Atlantic Ocean

GROWTH STRATEGY AND


PROSPECTS

provides all the necessary nutrients for the cultivation of the


highest quality abalone. We export our canned and dried
abalone all over the world and build lasting relationships with

Increase farm production from shore based units

our loyal clients.

and ranching.
2015: Complete expansion
2017: Harvest to full capacity

Ease of implementation:

Impact:

4747

FACT SHEET: BLUE OCEAN MUSSELS (PTY) LTD


VISION

LOCATION AND SIZE

Blue Ocean Mussels will ultimately assist with growing

Situated in Saldanah Bay, Western Cape Province

the market of South African produced mussels by 600

Land Based site

tons.

TARGETED SPECIES

Mussels

CURRENT STATUS

Municipality has approved building plans and the


plan for the factory expansion has been developed.

ADEP application has been submitted to DAFF/DTI.

60% of funding has been secured from ABSA and


40% will come from Blue Ocean Mussels (BOM)
funding which is already available.

The market plan has been developed and presented


to board members
4848

FACT SHEET: BLUE OCEAN MUSSELS (PTY) LTD


REQUIRED RESOURCES

BUSINESS OVERVIEW

Investment R7mn

Blue Ocean Mussels (Pty) Ltd, South Africas premium


mussel farming operation. The location is paramount
to the products excellence. The unpolluted and

GROWTH STRATEGY AND


PROSPECTS

pristine seawater is perfect for mussel farming


because the windy West Coast conditions create up
welling currents which support the fresh, clean, cold

Facilitate the expansion of the projects to expedite


production, enabling growth of overall cluster

and nutrient rich water which is perfect for growing

Acquire fifteen new rafts

good quality mussels. Saldanha Bay is the only

Development of factory infrastructure (approximately


R7m needed)

location in Southern Africa where one will find mussel


farms.

Factory fully operational 2017

Ease of implementation:

Impact:

4949

FACT SHEET: SALDANHA BAY OYSTER COMPANY - OYSTER


LOCATION AND SIZE

VISION
To increase annual production to 10 mn Oysters per

Situated in Saldanah Bay, Western Cape Province

year A world leader in the South African oyster market,

Land based site

Saldanha Bay oysters have a delicately sweet flavour


which makes them one of the top choices for the South
African and International palates.

REQUIRED RESOURCES
Investment: R11mn

As early as 1984, Saldanha Bay was recognized as a


prime location for oyster growing. Its unpolluted tides,
cold Benguela current and high plankton content make
it an amazing growing ground for the renowned Pacific
oyster seeds which we nurture here with love and
pride. Our oysters easily reach weights of between 65g

TARGETED SPECIES

Oysters

CURRENT STATUS

and 120g.

2014: New boat + holding tanks

GROWTH STRATEGY AND


PROSPECTS

2015: Additional Long lines

Acquisition of additional Oyster Farming boats

Increasing holding tank capacity

Increasing long line farming capacity

Ease of implementation:

Impact:

H
5050

5151

FACT SHEET: EXPANSION VENTERSDORP CATFISH


VISION

BUSINESS OVERVIEW

To revitalize the existing 200t/a production system,

The Clarias group operates in three divisions:

separate the hatcheries into bio-secure units, establish

Catfish Supreme (CS)

a second production system, a feed factory and a

Tamarron Trading (TT)

processing facility

Clarias Aquaculture Products (CAP)

GROWTH STRATEGY AND


PROSPECTS

Catfish Supreme is directly involved in aquaculture with the main


focus on genetic improvement, fingerling production and fish

R 15mn/a value
23 new jobs by 31/12/2015
500 tons/annum productionSecure supply of
affordable quality feed
Expand markets
Revitalize existing system and expand production to
500 tons /annum
Establish 1000 tons/annum processing facility

production and rearing

TARGETED SPECIES

REQUIRED RESOURCES

Catfish

LOCATION & SIZE

Investment: R 23.4mn
Ease of implementation:

Located in Ventersdorp, North West Province

Impact:

Processing is done in a leased facility in Pretoria (Gauteng).


The product range includes smoked fillets, pickled fish and

H L

fresh fish.
5252

FACT SHEET: PATERNOSTER-OYSTER


VISION

BUSINESS OVERVIEW

Establishment of an fully operational and sustainable

The Paternoster Oyster Company (Pty) Ltd specialises in

oyster hatchery, producing sufficient spat to satisfy the

farming and production of oyster spat and full grown oysters and

need of the oyster grow out market in and around the

Paternoster Pump House (Pty) Ltd is a 100% subsidiary of

Saldanha area. Local sourcing of seed has positive

Bluegreen and a property company that holds exclusive strategic

impact on the quality of product along with growing

value in 40ha of owned land, sea water pumping rights and

capability in the sector.

permits to farm a various number of species, including but not

GROWTH STRATEGY AND


PROSPECTS
Production started

limited to live Oysters, Kob (Kabeljou), Scallops and abalone.

TARGETED SPECIES

in January 2015 and product to

market in 2015

Oysters

Sufficient space available for expansion 7,2 mn spat

LOCATION & SIZE

by 2016 and 15 mn by 2019


Underway with BEE negotiations and exploration of
other empowerment options to be completed
Downstream: available spat will lead to the expansion

Situated in Paternoster, Western Cape Province

Sea Based site

of the oyster industry in the Saldanha/West Coast area


Value creation: 7,2 mn oysters spat will create a retail
value of R 42 mn
17 new jobs by 2017
5353

FACT SHEET: PATERNOSTER-OYSTER


REQUIRED RESOURCES

MARKETS

Investment: R 6,1m

Bluegreen market consists mainly of restaurants, caterers,

GROWTH STRATEGY AND


PROSPECTS

food processors, retailers and export markets at wholesale


level and it does not sell directly to the public. However, its
customers resell products to consumers (public) as raw,

Establish and expand a hatchery facility to deliver

prepared or packaged food items.

7,2 mn (2016) and 15 mn (2019) of worth of oyster

spat

Bluegreen Ocean Investment Holding (Pty) Ltd holds

Improve and expand supporting utility and

necessary permits to process broodstock and operate a

infrastructure on site by April 2016

hatchery, permit to collect broodstock, permit to transport

Acquire equipment and begin breeding/production

cultured marine fish species, permit to engage in marine

by January 2016

aquaculture activities and a valid permit to utilize the land for


aquaculture purposes issued by the Municipality. All the
aquaculture related permits were issued by the Department

Ease of implementation:

of Agriculture, Forestry and Fisheries and the Department of

Impact:

Environmental Affairs and Tourism.


L

5454

5555

FACT SHEET: ALGOA BAY SEA CAGE FARMING - YELLOWTAIL


VISION
Will contribute significantly towards development of a
sustainable and competitive marine finfish farming
industry in SA with international recognition for its
product quality, environmental awareness and
technical innovation

GROWTH STRATEGY AND


PROSPECTS

Obtain pilot project continuation approval from DST

Obtain marine Aquaculture right from DAFF

Finalize partnership plan

Implement and undertake 60 ton pilot project by


2016

Prepare project for commercialization and secure


investment

Establish and register commercial venture

Obtain approvals for expansion

Increase production to 300 tons by 2017

Establish hatchery by 2017

Increase production to 1 000 tons by 2018

Increase production to 3 000 tons by 2019

BUSINESS OVERVIEW
Stellenbosch University

REQUIRED RESOURCES
Pilot projects: R 11.3 mn
Commercialization: R 130 mn

TARGETED SPECIES
Yellowtail

LOCATION AND SIZE

Situated in Port Elizabeth (Algoa Bay), Eastern


Cape

Sea Based site


Impact:

Ease of implementation:

5656

5757

FACT SHEET: HONDEKLIP BAY ABALONE HATCHERY


VISION

BUSINESS OVERVIEW

Will contribute significantly towards development of a

The Hondeklip Bay Abalone Project was established in

sustainable and competitive abalone ranching industry

January 2006 as a partnership between the Division of

in the Northern Cape Province with international

Aquaculture, Stellenbosch University (SU); the Department

recognition for its product quality, environmental

of Science and Technology (DST); HIK Abalone Farm (Pty)

awareness and technical innovation

Ltd (HIK), to determine the technical and financial feasibility

GROWTH STRATEGY AND


PROSPECTS

Establish 2.4 mn spat per annum abalone


hatchery

Prepare project for commercialization

Establish and register commercial venture

Increase hatchery output to 4.8mn spat per


annum

LOCATION AND SIZE

Situated in Hondeklip Bay, Northern Cape Province

Land Based site

of abalone (Haliotis midae) farming in Hondeklip Bay. The


entity Diamond Coast Abalone (Pty) Ltd is the current Right
Holder, which operates the abalone grow out farm with a
production capacity of approximately 10 tonnes per annum.

REQUIRED RESOURCES
R 25 mn

TARGETED SPECIES
Abalone
Impact:

Ease of implementation:
L

H
5858

5959

FACT SHEET: RICHARDS BAY CAGE CULTURE KOB


VISION
Will contribute significantly towards development of a
sustainable and competitive marine finfish farming
industry in SA with international recognition for its
product quality, environmental awareness and
technical innovation

GROWTH STRATEGY AND


PROSPECTS

Implement and undertake 60 ton pilot project by


2016

Prepare project for commercialization and secure


investment

Establish and register commercial venture

Obtain approvals for expansion

Increase production to 300 tons by 2017

Establish hatchery by 2017

Increase production to 1 000 tons by 2018

BUSINESS OVERVIEW
The Aquaculture Division at Stellenbosch University was
established in 1989 with the aim to contribute to the
development of the aquaculture industry of Southern
Africa through high standards of education and training,
innovative research, and efficient services.
The Division functions in an interdisciplinary way through
participation of various Departments from the Faculties of
Natural Sciences and Agrisciences, as well as partner with
various Government Departments such as Department of
Science and Technology

REQUIRED RESOURCES
Pilot projects: R 6.4 mn
Commercialisation: R 42.7 mn

TARGETED SPECIES
Dusky kob

LOCATION AND SIZE

Impact:

Ease of implementation:

Situated in Richards Bay, KwaZulu Natal Province


Sea Based site

H
6060

6161

FACT SHEET: AMATIKULU - ORNAMENTALS


VISION
Infrastructure available for relatively quick
implementation. Conditions suitable for production at
low cost vs other areas in SA

GROWTH STRATEGY AND


PROSPECTS

BUSINESS OVERVIEW
Establishment of an ornamental farm with the capacity to
produce 1.4 million pieces of ornamental fish species. The
ornamental farm development will include two phases namely
phase one: The Refurbishment plan for Ornamentals (in
current dilapidated concrete tanks); and phase two: the
establishment of new ornamental green houses.

Infrastructure refurbishment work on old ponds


and water reticulation

REQUIRED RESOURCES

Broodstock acquisition

Market linking and distribution Talk to local

Investment R 30mn

importers and distributors. Investigate export

TARGETED SPECIES

potential

Mentoring/extension link with local experts

LOCATION AND SIZE

Situated in Amatikulu, KwaZulu-Natal Province

Land Based site

Ornamental species
Ease of implementation:

Impact:

6262

6363

FACT SHEET: AMATIKULU KOB FARM


VISION
The purpose of the Amatikulu kob farm seeks to
address poverty and unemployment in coastal areas
by creating skill-based employment. The infrastructure

BUSINESS OVERVIEW
The establishment of a 1000 ton per annum dusky kob farm
within the 108 ha Amatikulu Aquaculture Development Zone.
The farm will make use of pond culture techniques. The

development on the site will require labour force which

development will be implemented in two phase namely the

will be sourced from the surrounding community. Once

phase 1: Refurbishment for 10Ha dusky kob pond culture (on

farms have been established people from the

the current degrade prawn culture site); and phase two: the

surrounding community will have an opportunity to

implementation of the dusky kob extension development.

developed skills on farming aquatic organisms.

GROWTH STRATEGY AND


PROSPECTS

Infrastructure refurbishment and construction


refurbish ponds. Build pump station and water
reticulation. FPE construction
Phase 1 production: Kob = 260 tons/annum;
Phase 2 production = 2600 tons/annum. farmgate price: Kob = R60/Kg

LOCATION AND SIZE

Situated in Amatikulu, KwaZulu Natal Province

Land Based site

REQUIRED RESOURCES
Investment : Phase 1 = R8,5 mil; Phase 2 = R127mil

TARGETED SPECIES
Dusky kob
Ease of implementation:
L

Impact:
H

L
6464

6565

FUTURE BUSINESS OPPORTUNITIES


1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

Qholora Abalone and Kob ADZ (EC)


Vanderkloof trout cage culture (NC)
Hamburg Abalone Stock Enhance (EC)
Algoa Bay ADZ (EC)
Marron Crayfish Farms (EC)
Sterkfontein Dam Trout (FS)
Gariep Dam Catfish and Tilapia(FS)
University of Limpopo Tilapia (LP)
Richards Bay (ADZ) (KZN)
Dube Trade Port (ADZ) (KZN)
Jozini Dam Tilapia (KZN)
Pongolo river ponds for Tilapia (KZN)
Mtunzini Fish Farm (KZN)
Really Useful Investments (RUI)
Kleinzee (NC)
15. Port Nolloth Abalone Farm (NC)
16. Buffeljachts Abalone Farm (WC)
17. Aquafarm Development (WC)
These opportunities will undergo the
process outlined in Section 2.3: Next
Steps for selection and implementation
as part of future phases

18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.

West Coast Abalone (WC)


I&J (WC)
Oyster Catcher (Pty) Ltd, Saldanha (WC)
Oyster Catcher (Pty) Ltd, Doring Bay,
Matzikama Municipality (WC)
Oyster Catcher (Pty) Ltd, Buffeljachts New
(WC)
Blue Sapphire Pearls, Saldanha, WC
Tuna Marine Abalone (WC)
Aquafoods SA, Saldanha, WC
West Coast Aquaculture, Saldanha (WC)
West Coast Oyster Growers, Saldanha
(WC)
Oesterzee Oysters, Saldanha (WC)
Saldanha Salmon (WC)
Saldanha Mussel (WC)
Matzikama ADZ (WC)
Paternoster Kob Recirculation (WC)
Uthando Lolwandle, Abalone cage farming
cluster (WC

66

SKILLS DEVELOPMENT AND RESEARCH NEEDS

Collaborate with the Department


of Higher Education and Training,
developing a strategy for
aquaculture skills development

Training of South African


students, fish farmers and
government officials is required in
the field of aquaculture,
particularly diseases, biology,
breeding, nutrition, production
systems, genetics and
economics.

Animal health and food safety


assurance

Research of new species

Technology Innovation Transfer:


South Africa has a high energy
coastline with few sheltered bays for
aquaculture activities, hence South
Africa needs to invest in either on
ADF aims to fast-track
growth, while
land infrastructure
(facilities)
or me
offshore infrastructure that would be
suitable Funding
for thepool
South
to assistAfrican
end-to-end A
conditions. Opportunities are sought
Coordinates
from various g
for investment
and funding
research
and
MoC in technology in
development
respect of
aquaculture
Initial
proposal for ADF to be manag

Key focus of ADF to drive transform

with access to funding in pre-produ

67