Oceana's TAC had been lower than the size of its investment in the industry, said its chairman. (Photo: Oceana Group)

Oceana Group seeks additional fishing rights

Fishing and commercial cold storage group Oceana Group Ltd aimed to expand its long-term fishing rights by acquiring rights from parties wishing to leave the industry, said Chairman Mustaq Brey in the group's 2009 annual report.

Owner of popular brands such as Lucky Star and Glenryck, Oceana employs 1,351 permanent staff and 669 seasonal workers and operated 36 vessels in South Africa and Namibia in 2009. The group’s major shareholders are Tiger Brands and Brimstone Investment Corporation.

But Oceana’s total allowable catch (TAC) of 90,000 tonnes was low considering the size of its investment in the industry and its triple-bottom-line performance, Brey pointed out, Business Day reports. The TAC for 2008 was 90,776 tonnes.

In 2008 and 2009, Oceana only had rights to catch 14.4 per cent of South African pilchards, 16.8 per cent of anchovies, 18.8 per cent of horse mackerel, 1.1 per cent of trawl hake and 1.4 per cent of long-line hake.

"It is essential that the TAC, and in particular the commercial part thereof, be set at objectively justifiable levels so as to support the industry, which generally catches in a lawful and responsible manner, produces an important source of protein for the country, employs a large number of people and is a net earner of foreign exchange for South Africa," Brey informed.

Of great concern were west coast lobster poaching and insufficient law enforcement that may allow the depletion of inshore lobster stocks as had occurred with abalone, he stated.

From January to September 2009, Oceana saw revenues increase by 10 per cent to ZAR 3.3 billion (USD 447 million) and headline earnings by 18 per cent to ZAR 279.4c (USD 37.8c) per share, which Brey called "impressive." Final dividends per share also jumped by 18 per cent to ZAR 184c (USD 24.9c) per share.

This year saw improved canning yields with overall canned fish profitability above that of 2008.

The 2009 ‘A’ season anchovy TAC was 449,437 tonnes and the ‘B’ season 120,000 tonnes, compared to 2008’s ‘A’ season of 397,500 tonnes and ‘B’ season of 120,000 tonnes. At the close of anchovy ‘A’ season, Oceana had only landed 42 per cent of its quota.

Fishmeal production volumes were lower than 2008’s but there was better profitability due to higher selling prices. The TAC for west coast lobster was reduced to 2,340 tonnes from 2008’s 2,571 tonnes.

Oceana’s quota for season ‘A’ was 348 tonnes, compared to 2008’s 373 tonnes for the season, which was landed in full after catch rates improved later in the season. Export prices were lower and there was a lower turnover which led to lower 2009 lobster profits.

South African and Namibian horse mackerel TACs remained at 31,500 and 230,000 tonnes. Overall turnover rose by 8 per cent.

Operating profit was significantly better due to the improved fishing performance, higher prices and improved margins.

By Natalia Real
[email protected]
www.seafood.media

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