Overview of the aquaculture sector

Operation Phakisa: Unlocking the Economic Potential of South Africas Oceans

AQUACULTURE Invest in South Africa: The Oceans Economy Seminar,

London

7 July 2015

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Contents

Overview of the aquaculture sector

Overview of initiatives

Investment opportunities

Skills development & research needs

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Globally, Aquaculture contributes to almost half of total supply

Global total fish production wild catch and farmed (reported)

0

20

40

60

80

100

120

140

160

2012 1990 2000 1970 1980

Aquaculture

Wild catch

Share of Production

44 %

56 %

Mn tonnes

+0.9% p.a.

+7.2% p.a.

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 Fish production refers to fish and shellfish production

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

Better technologies and production methods

New technologies and breeds e.g. RAS 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

Investment in research and development

Food Security

Governments have a responsibility to ensure that everyone has enough to eat.

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

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

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Globally fish stocks are declining, and wild capture will not be able to meet the increasing demand for fish products

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

715,320

5,999

2000

2,819

+6% p.a.

2012

5,9996,037

2006

627,493663,195

+1% p.a.

715,320

SA Aquaculture production Tonnes

SA Marine catch productionTonnes

SA Annual Production (2012)Tonnes

Steady growth of 6% p.a.

Marine catch is plateauing

2000 20122006

Global trends point to an increasing role for Aquaculture in fish production

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

~4,000 tonnes (excluding seaweed) of

Aquaculture production in 2013 (28% freshwater, 72%

marine)

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

Western Cape

Untransformed sector with 10% PDI participation at

management level in the sector

In 2012, >600,000 tonnes of fish and fish

products was produced in South Africa; only 0.8% of it

was from Aquaculture farms

2,227 jobs in the sector Aquaculture contributes ~R 0.7 bn (0.2%) to South Africas GDP

SOURCE: FAO, FishStatJ, DAFF

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Marine Aquaculture is dominated by molluscs Freshwater Aquaculture is focused on finfish

Overview Production Tonnes1

Abalone 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

1,111

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

required to meet same sanitation standards

Maturity: 6 - 12 months

241

Mussels Mediterranean & Black mussel Production price: R5.50/kg possessing

+R18/kg fresh Processed price: R25/kg Maturity: 7 months

860

Marine finfish Dusky kob, Silver kob, Yellowtail, White margined sole

Production prices: R35-45/kg Maturity: 8-12 months

280

Overview Production Tonnes

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

1 428

Catfish Forms: Live, whole on ice, smoked fillet, pt

Production prices: R30/ kg Maturity: 6-9 months

160 (2011) 0 (2012)

There is a great deal of diversity, however South African marine and freshwater Aquaculture are dominated by six species

Species Species

Tilapia Is referred to aquatic chickens

Market size: 9 months Mozambique Tilapia is

endemic in SA

234

6

A typical seafood platter served in South Africa consists of mostly imported produce:

Prawns: From India

Linefish: Catfish From Vietnam

Squid: From Argentina

Mussels: From New Zealand

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HEADLINES 2019: SA economy reaps the rewards of Operation Phakisa

Jobs in Aquaculture sector seen as quality jobs, improving livelihoods in rural communities.

exciting momentum built in Operation Phakisa evidenced by Aquacultures inclusive growth

experts estimate the revenue contributed by Aquaculture to South Africas economy to be as much as R 3 Bn

The Aquaculture sector in South Africa now employs 15,000 people in direct and full time jobs..

to Aquaculture in South African has shown strong growth in 5 years, with production from 2014 up 5 fold to 20,000 tons

Abalone

Oyster

Finfish

Mussels

SOURCE: Aquaculture Lab

Aspirations

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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

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

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

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


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

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

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.

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

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

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Regulations

Skills

Market

Funding

Solutions developed focuses on priority initiatives that support the implementation of the of projects

Quick wins

Selection and Implementation of 24 Projects 1

Inter-Departmental Authorisations Committee

3

2

Capacity building for support services

Legislative reform 4 Globally recognised monitoring and certification system

8Government Preferential Procurement

Coordinated industry-wide marketing efforts

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Aquaculture Development Fund 5

6


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Initiatives have been ranked in priority and budget requirements have been specified

Highest priority

Detailed in following pages

Selection and implementation of 24 Projects

1

2 Legislative reform to promote Aquaculture development

Establishment of an Inter-Departmental Authorisations Committee

3

5 Establishment of an Aquaculture Development Fund

4 Establishment of a globally recognised monitoring and certification system

6 Capacity building for support services

8 Preferential Procurement of Aquaculture products

Coordination of industry-wide marketing efforts 7

Budget required R(mn)

2,867 1

2

3

5

4

6

8

7

2

6

55

11,7

27

208

7

Quick wins


(Govt=1,165)

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Implementation of Phase 1 Projects Quick wins

Year 1 Year 2 Year 3

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

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

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:

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

New Jobs

Tonnes R(mn) Tonnes R(mn) Tonnes R(mn) Tonnes R(mn) Tonnes R(mn) 2015 2016 2017 2018 2019

Phase 1 1,198

333 1,640

405 2,187 458 3669 599 4,541 700

Phase 2 300 62 365 72 1,325 146 3,931 348 6,478

594

Phase 3 923 56 1,393 70 2605 107 3,795 176 6625 345

337 513 585 603 546

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

1

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24 projects have been selected and sequenced for implementation across 3 phases

Inland Provinces

Phase 1 Phase 2

Phase 3

Coastal provinces


Project/enterprise

Hatchery expansion- Paternoster- Oyster

Expansion- Hamburg cluster- Oyster

Expansion- East London IDZ- Kob

Expansion - Ventersdorp- Catfish

Expansion - Roman Bay Abalone

Expansion - Abagold

New - Amatikulu - Kob

New- Hamburg cluster - Kob

Expansion - DST Abalone Hatchery

New- Saldanha Viking Cages - Trout and Salmon

Expansion - HIK Abalone

Expansion - Amatikulu - Ornamentals

ADZ-Ventersdorp - Catfish

New- Wild coast abalone ranching cluster - abalone

Expansion - Doring Bay Abalone - Abalone

Expansion- Saldanha Blue Ocean Mussels - Mussel

Expansion- Saldanha Bay Oyster Company - Oyster

New- Algoa Bay Sea Cage Farming - Yellowtail

New- Saldanha Southern Atlantic Sea Cages - Salmon

New- Richards Bay Sea Cage Farming - Dusky Kob

New- Diamond Coast Abalone Ranching - Abalone

Expansion - Wild Coast Abalone - Abalone

Expansion - Marine Growers - Abalone

Expansion - Jacobsbaai Sea Products - Abalone

Western Cape

Eastern Cape

KwaZulu Natal

Free State

Northern Cape

Gauteng North West

Mpumalanga

Limpopo

ELIDZ

Amatikulu

Paternoster Saldanha

Hamburg

Ventersdorp

Overberg

Hondeklip Bay

Algoa3

Doring Bay

Richards Bay

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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.

Representation at the IAC by all relevant departments

890 days to 240/360 days!


3

DEA

The dti

DoH

DPW Provinces

DPE

DWS

IAC

AIS

Cap

ital M

an-

agem

ent

WUL

Funding/

trade

EIA

Transnet

Lease

Anim

al H

ealth

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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

5

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Coordination of industry-wide marketing efforts The players in the Aquaculture sector have limited access and awareness of markets

(a) Market Intelligence

Inclusive Market Intelligence Information System

(b) Improve domestic markets

(c) Value chain ownership and product development

(d) Promote responsible, fair regulation and environmental certification

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Even during the lab process, several issues faced by the industry were resolved.

Key Outcomes from the Aquaculture Lab: Impact on sector:

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)

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

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

Done

In Progress

Proposal to reconsider increasing the EIA thresholds legislation / regulation

Exemption from listing of trout as an Alien and Invasive Species legislation / regulation where it is already established

Access to state land for projects and zones in Phakisa

Access to sea space and duration of leases

Environmental Affairs

Environmental Affairs

Public Works

Transnet Ports Authority

Rural dev & land reform

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Investment Opportunities:

Aquaculture Development Zones

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.)

What is An Aquaculture Development Zone?

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Aquaculture Development Zones

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

Benefits of Aquaculture Development Zone

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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

KwaZulu-Natal Province: Amatikulu Aquaculture Development Zone


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.

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Location & Size Situated approximately 20km east of Port

Elizabeth Targeted area is 300 hectares. Land Based Zone Targeted Species Finfish, Abalone & Seaweed. 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

Eastern Cape Province: Coega Industrial Aquaculture Development Zone


Progress Feasibility study conducted. Process of an Environmental Impact

Assessment is initiated. Challenges Possible opposition to the Environmental

Impact Assessment

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

Eastern Cape Province: East London Industrial Development Zone


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

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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)

Eastern Cape Province: Qolora Aquaculture Development Zone


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.

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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

Eastern Cape Province: Algoa Bay Aquaculture Development Zone


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.

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Location & Size Vanderkloof . Targeted Species Finfish (Trout).

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

Northern Cape Province: Vanderkloof Trout Aquaculture Development Zone


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

Zone

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FACT SHEET: HAMBURG OYSTER & KOB

VISION Revitalisation of the oyster farm and expansion of a

kob pilot project in Hamburg to 1000 ton commercial

farm, Eastern Cape. This will increase oyster production

and improve the socio-economic status of the

Hamburg community

LOCATION

TARGETED SPECIES

CURRENT STATUS

Pacific Oyster Dusky Kob

Situated in the Hamburg, Eastern Cape Province Sea Based and Land Based site

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

39 39 39

FACT SHEET: HAMBURG OYSTER & KOB

REQUIRED RESOURCES

BUSINESS OVERVIEW

GROWTH STRATEGY AND PROSPECTS

R350 mn investment required for kob and

R14 mn required for Oysters

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Ease of implementation:

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Impact:

The Department of Agriculture, Forestry and Fisheries,

Branch Fisheries has identified a number of aquaculture

projects that aim to empower coastal communities through

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.

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

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

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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

100 to 600 jobs and increase contribution to the GDP.

TARGETED SPECIES

Dusky Kob Finfish, Abalone and Seaweed

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.

LOCATION

Situated in East London, Eastern Cape Province Land Based site

41 41 41

REQUIRED RESOURCES

Investment R 139 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

company will continuously improve on its farming procedures

so that only top quality products are supplied to local and

international markets.


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Impact:

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

Create a technical support platform for other marine finfish and kob farms

2015: Transformation 51% BBBEE 2016: Expand production: 500 1000 ton

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

Employment Equity Scheme, resulting in 51% BBBEE ownership in the company

FACT SHEET: OCEANWISE KOB EAST LONDON INDUSTRIAL DEVELOPMENT ZONE (ELIDZ)

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FACT SHEET: EXPANSION HIK ABALONE -BUFFELJAGS VISION

HIK Abalone Farm (Pty) Ltd is an established abalone

farm with a production of 165 ton in 2014. Planned

shore based farm expansion will grow production to

294.8 ton in 2019.

TARGETED SPECIES

Abalone

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

LOCATION AND SIZE

Situated in Hermanus, Western Cape Province Land Based site

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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

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

annual abalone exports of over 150 tons. HIK currently

employs 110 people, 30 of whom are occupied in highly

specialised mid- to senior-management positions.


FACT SHEET: EXPANSION HIK ABALONE-BUFFELJAGS

Increase farm production from shore based units Construct and operate own processing and packing

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


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Impact:

L M H

44 44 44

FACT SHEET: DOORINGBAAI ABALONE (PTY) LTD VISION

Doringbaai Abalone is a abalone grow out facility and

hatchery in Doringbaai on the West Coast of South

Africa. The community own a 35% share in the

company to secure sustainability and upliftment. With

this initiative we aim to secure job creation and a

positive transformation of current conditions in the

community.

TARGETED SPECIES

Abalone

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.

LOCATION AND SIZE

Situated in Dooringbaai, Western Cape Province Land Based site

45 45 45

REQUIRED RESOURCES

Investment R 66 433 108 mn

BUSINESS OVERVIEW

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

out facility and have recently finalized the building of their

abalone hatchery. The farm buys in abalone spat from a

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

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

Abagold (Pty) Ltd for processing and marketing of the

product. In 2014 the farm harvested approximately

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

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

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

two years.


FACT SHEET: DOORINGBAAI ABALONE (PTY) LTD

To increase the target production of 30 Tons/annum to a total production of 100 tons/annum.

Sustainable job creation with the effect of less poverty.

Initiate future development of schools.


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Impact:

L M H

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FACT SHEET: OVERBERG ABAGOLD- ABALONE

VISION

Abagold is an established abalone farm with a

production of 328 tons in 2014. Planned shore based

farm expansion will grow production to 499 tons in

2017 TARGETED SPECIES

Abalone

CURRENT STATUS

LOCATION AND SIZE

Situated in Hermanus, Western Cape Province Land Based Zone

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.

47 47 47

REQUIRED RESOURCES

Investment R53 mn

BUSINESS OVERVIEW

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

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

our loyal clients.


FACT SHEET: OVERBERG ABAGOLD- ABALONE

Increase farm production from shore based units and ranching.

2015: Complete expansion 2017: Harvest to full capacity


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Impact:

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48 48 48

FACT SHEET: BLUE OCEAN MUSSELS (PTY) LTD VISION

Blue Ocean Mussels will ultimately assist with growing

the market of South African produced mussels by 600

tons. TARGETED SPECIES

Mussels

CURRENT STATUS

LOCATION AND SIZE

Situated in Saldanah Bay, Western Cape Province Land Based site

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

49 49 49

REQUIRED RESOURCES

Investment R7mn

BUSINESS OVERVIEW

Blue Ocean Mussels (Pty) Ltd, South Africas premium mussel farming operation. The location is paramount to the products excellence. The unpolluted and pristine seawater is perfect for mussel farming because the windy West Coast conditions create up welling currents which support the fresh, clean, cold and nutrient rich water which is perfect for growing good quality mussels. Saldanha Bay is the only location in Southern Africa where one will find mussel farms.


FACT SHEET: BLUE OCEAN MUSSELS (PTY) LTD

Facilitate the expansion of the projects to expedite production, enabling growth of overall cluster

Acquire fifteen new rafts Development of factory infrastructure (approximately

R7m needed)

Factory fully operational 2017


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Impact:

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50 50 50

FACT SHEET: SALDANHA BAY OYSTER COMPANY - OYSTER

VISION

To increase annual production to 10 mn Oysters per

year A world leader in the South African oyster market,

Saldanha Bay oysters have a delicately sweet flavour

which makes them one of the top choices for the South

African and International palates.

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

and 120g.

TARGETED SPECIES

Oysters

CURRENT STATUS

LOCATION AND SIZE

Situated in Saldanah Bay, Western Cape Province Land based site

2014: New boat + holding tanks 2015: Additional Long lines

REQUIRED RESOURCES

Investment: R11mn

GROWTH STRATEGY AND PROSPECTS Acquisition of additional Oyster Farming boats

Increasing holding tank capacity

Increasing long line farming capacity


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Impact:

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51 51 51

52 52 52

FACT SHEET: EXPANSION VENTERSDORP CATFISH

VISION

Investment: R 23.4mn

To revitalize the existing 200t/a production system,

separate the hatcheries into bio-secure units, establish

a second production system, a feed factory and a

processing facility

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

Impact:

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BUSINESS OVERVIEW

The Clarias group operates in three divisions:

Catfish Supreme (CS)

Tamarron Trading (TT)

Clarias Aquaculture Products (CAP)

Catfish Supreme is directly involved in aquaculture with the main

focus on genetic improvement, fingerling production and fish

production and rearing

REQUIRED RESOURCES LOCATION & SIZE

Located in Ventersdorp, North West Province

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

The product range includes smoked fillets, pickled fish and

fresh fish.

TARGETED SPECIES

Catfish

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FACT SHEET: PATERNOSTER-OYSTER VISION

Establishment of an fully operational and sustainable

oyster hatchery, producing sufficient spat to satisfy the

need of the oyster grow out market in and around the

Saldanha area. Local sourcing of seed has positive

impact on the quality of product along with growing

capability in the sector. GROWTH STRATEGY AND PROSPECTS

BUSINESS OVERVIEW

The Paternoster Oyster Company (Pty) Ltd specialises in

farming and production of oyster spat and full grown oysters and

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

Bluegreen and a property company that holds exclusive strategic

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

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

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

Production started in January 2015 and product to market in 2015

Sufficient space available for expansion 7,2 mn spat 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 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

TARGETED SPECIES

Oysters

LOCATION & SIZE

Situated in Paternoster, Western Cape Province Sea Based site

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FACT SHEET: PATERNOSTER-OYSTER

REQUIRED RESOURCES

Investment: R 6,1m

MARKETS


Establish and expand a hatchery facility to deliver 7,2 mn (2016) and 15 mn (2019) of worth of oyster

spat

Improve and expand supporting utility and infrastructure on site by April 2016

Acquire equipment and begin breeding/production by January 2016


L M H

Impact:

L M H

Bluegreen market consists mainly of restaurants, caterers,

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,

prepared or packaged food items.

Bluegreen Ocean Investment Holding (Pty) Ltd holds

necessary permits to process broodstock and operate a

hatchery, permit to collect broodstock, permit to transport

cultured marine fish species, permit to engage in marine

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

of Agriculture, Forestry and Fisheries and the Department of

Environmental Affairs and Tourism.

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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


BUSINESS OVERVIEW

REQUIRED RESOURCES

Pilot projects: R 11.3 mn Commercialization: R 130 mn


L M H

Impact:

L M H

LOCATION AND SIZE

Stellenbosch University

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

TARGETED SPECIES

Yellowtail

Situated in Port Elizabeth (Algoa Bay), Eastern Cape

Sea Based site

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FACT SHEET: HONDEKLIP BAY ABALONE HATCHERY

VISION

Will contribute significantly towards development of a

sustainable and competitive abalone ranching industry

in the Northern Cape Province with international

recognition for its product quality, environmental

awareness and technical innovation


BUSINESS OVERVIEW

REQUIRED RESOURCES R 25 mn


L M H

Impact:

L M H

LOCATION AND SIZE

The Hondeklip Bay Abalone Project was established in January 2006 as a partnership between the Division of

Aquaculture, Stellenbosch University (SU); the Department

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

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

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.

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

TARGETED SPECIES

Abalone Situated in Hondeklip Bay, Northern Cape Province Land Based site

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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

BUSINESS OVERVIEW

REQUIRED RESOURCES

Pilot projects: R 6.4 mn

Commercialisation: R 42.7 mn


L M H

Impact:

L M H

LOCATION AND SIZE

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 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

TARGETED SPECIES

Dusky kob

Situated in Richards Bay, KwaZulu Natal Province Sea Based site

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FACT SHEET: AMATIKULU - ORNAMENTALS

VISION

Infrastructure available for relatively quick

implementation. Conditions suitable for production at

low cost vs other areas in SA


BUSINESS OVERVIEW

REQUIRED RESOURCES

Investment R 30mn

LOCATION AND SIZE

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

Broodstock acquisition Market linking and distribution Talk to local

importers and distributors. Investigate export

potential

Mentoring/extension link with local experts

TARGETED SPECIES

Ornamental species

Situated in Amatikulu, KwaZulu-Natal Province Land Based site

Impact:

L M H


L M H

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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

development on the site will require labour force which

will be sourced from the surrounding community. Once

farms have been established people from the

surrounding community will have an opportunity to

developed skills on farming aquatic organisms.


BUSINESS OVERVIEW

REQUIRED RESOURCES

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

LOCATION AND SIZE

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 will be implemented in two phase namely the

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

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

implementation of the dusky kob extension development.

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. farm-gate price: Kob = R60/Kg TARGETED SPECIES

Dusky kob

Situated in Amatikulu, KwaZulu Natal Province Land Based site

Impact:

L M H


L M H

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1. Qholora Abalone and Kob ADZ (EC) 2. Vanderkloof trout cage culture (NC) 3. Hamburg Abalone Stock Enhance (EC) 4. Algoa Bay ADZ (EC) 5. Marron Crayfish Farms (EC) 6. Sterkfontein Dam Trout (FS) 7. Gariep Dam Catfish and Tilapia(FS) 8. University of Limpopo Tilapia (LP) 9. Richards Bay (ADZ) (KZN) 10. Dube Trade Port (ADZ) (KZN) 11. Jozini Dam Tilapia (KZN) 12. Pongolo river ponds for Tilapia (KZN) 13. Mtunzini Fish Farm (KZN) 14. Really Useful Investments (RUI)

Kleinzee (NC) 15. Port Nolloth Abalone Farm (NC) 16. Buffeljachts Abalone Farm (WC) 17. Aquafarm Development (WC)

FUTURE BUSINESS OPPORTUNITIES 18. West Coast Abalone (WC) 19. I&J (WC) 20. Oyster Catcher (Pty) Ltd, Saldanha (WC) 21. Oyster Catcher (Pty) Ltd, Doring Bay,

Matzikama Municipality (WC) 22. Oyster Catcher (Pty) Ltd, Buffeljachts New

(WC) 23. Blue Sapphire Pearls, Saldanha, WC 24. Tuna Marine Abalone (WC) 25. Aquafoods SA, Saldanha, WC 26. West Coast Aquaculture, Saldanha (WC) 27. West Coast Oyster Growers, Saldanha

(WC) 28. Oesterzee Oysters, Saldanha (WC) 29. Saldanha Salmon (WC) 30. Saldanha Mussel (WC) 31. Matzikama ADZ (WC) 32. Paternoster Kob Recirculation (WC) 33. Uthando Lolwandle, Abalone cage farming

cluster (WC These opportunities will undergo the process outlined in Section 2.3: Next

Steps for selection and implementation as part of future phases

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Collaborate with the Department of Higher Education and Training, deve lop ing a s t ra tegy fo r aquaculture skills development

Tra in ing o f South Af r ican students, f ish farmers and government officials is required in t h e f i e l d o f a q u a c u l t u r e , particularly diseases, biology, breeding, nutrition, production s y s t e m s , g e n e t i c s a n d economics.

Animal health and food safety assurance

Research of new species

SKILLS DEVELOPMENT AND RESEARCH NEEDS 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 land infrastructure (facilities) or offshore infrastructure that would be suitable for the South African conditions. Opportunities are sought for investment and research and development in technology in respect of aquaculture

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

Documents

Overview of the aquaculture sector