IMPACTS
Future Fish (marine cultivated tilapia).
Fish has always played a central role in the diets of the poor in South Africa prior to 2006 when Cape hake and fish in general was the least cost animal protein source in South Africa. The price of Cape hake became uncompetitive against terrestrially produced meat proteins over the period 2006/07 which marked the transition point when broiler chickens became the least cost meat protein in South Africa. Given present and future pricing scenario’s Cape hake has littlemerit as an affordable alternativemeat protein targeting food insecure households in rural and urban South Africa froma cost perspective. A 2021 study (Kourie, 2021) revealed thatmarine capture fisheries, and in particular theMSC certified Cape hake catch and tinned pilchards, have retrospectively seen year-on-year (y-o-y) price inflation of 9.5% (over 2010-2019) and 7.9% y-o-y (2005-2020) respectively somewhat higher than the 2005- 2020 CPI of 5.28% Marine, or seawater cultivatedMozambique tilapia offers a high-quality (improved flavour in seawater) alternative and more affordable whitefish species to replace unaffordable Cape hake. In addition using seawater or saline Biofloc Technology (BFT) to grow Mozambique tilapia offers even greater production cost savings potentially the least cost source of animal protein in South Africa with fish taking the crown back from broiler chickens to render marine cultivated tilapia potentially the least cost animal protein source in South Africa.
Perceived quality versus prices for the most common global whitefish species from Geldenhys
(2013) and Lallemand et al. (2014). Aquaculture Stewardship Council (ASC) certified Future Fish™
ormarine cultivated tilapia (izumidai) andMarine Stewardship Council (MSC) certified hoki were
added above based upon theirmarket value. Note that the Japanesemarket ranksmarine tilapia
higher than all otherwhitefishspecies.
The greatest impacts offered by the forthcoming marine tilapia farming industry of comparable scale to the Cape hake fisherywhere quotas are seldomless than 100,000 tonnes are the following;
- Improved food [protein] security attributed to the availability of a more affordable whitefish species sold for under R50.00/kg as Head-on-Gutted (HoG) fish enabling more South African households to eat animal proteins.
- Job impacts are significant adding 5000 new permanent jobs for workers directly involved in the production and processingofmarinetilapiaignoring backward linkagesto fishfeedstock commodities.
- Improved trade balance for imports of more affordable whitefish known as Pangasius (tra/basa) currently displacingCape hake achievedvia import replacementby locallyproducedmarine tilapia.
- Currently a large portion of the Cape hake quota is exported mostly to Spain and the European Union, displacing Cape hakewithmore affordablemarine cultivated tilapia will enable increased exports of Cape hake into internationalmarketsthereby improvingSouthAfrica's trade balance.
- Onward production beyond what local markets would absorb will see marine tilapia exports into the neighbouring SADC countries, the Middle East and European Union as global supplies of wild captured whitefish become increasingly more expensive due to finite wild captured fish resources and increased global demand.Marine tilapia exportswould improve SouthAfrica’s trade balance.
- Marine tilapia domestication and aquaculture is supportive of governments National Biotechnology Strategy (2013) to enhance the commercialization and productization of South Africa’s biological resources: Mozambique tilapia are indigenous to South Africa rivers systems and as such forms part of the biodiversity that existwithinthe country.
Marine cultivated tilapia offers almost endless industrial growth potential to satisfy not only South Africa’s demand for the least cost animal protein, but also onwards into SADC countries, and global markets, and could potentially grow to over 1.5million tonnes per annum comparable to the Norwegian salmon farming industry worth R67.5Bn at todays retail traded price of R45.00/kg for HoGfish.
Click on the Marine Tilapia AquacultureProjectcover slideon the Projects page to learn more.
Pilot scale Atlantic salmon RAS production unit
Pilot scale Atlantic salmon RAS production unit
South Africa currently imports over 5,000 tonnes per annum of Atlantic salmon as Head-on-Gutted (HoG) fish worth around R1Bn in air-delivered fresh commodity chiefly from Norway under a high carbon footprint. The following positive impacts and outcomes would accrue for a local supply of Atlantic salmon.
- Fresher product. By far the greatest advantage of local production against imports is the age of stock by the time Atlantic salmon reaches stores and the catering industry. The fresher the better for sushi within hours of harvest. Almost 2 days lapses by the time Atlantic salmon are collected by the first receiver, and another day to day and half for processingand distributionto stores and the catering industry – not fresh enoughfor sushi.
- Sparingof R1Bn in imports of fresh Atlanticsalmonwill strengthenthe national trade balance.
- Job impact. Complete substitution of some 5,000 tonnes of fresh HoG salmon from Norway would create around 1,000 permanent direct jobs in production and processing excluding backward linkages to feedstock commodityproductiontomake feeds for salmon.
- More economical supply. Air freight and related charges make-up around 16-20% of the cost of fresh Atlantic salmon in South Africa in addition to the NASDAQ Salmon Index pricing. Local production would be more economical – see below. More affordable salmon brings price competitiveness against prime cuts of beef implyingmore consumerswillbuy salmonin South Africa, a healthieralternativeto redmeat.
- Skills development. Developing skilled manpower for the local salmon farming industry increases worker job security in the aquaculturesectorwhendiversificationoccurs.
Competitive pricing of locally farmed premium quality fresh Atlantic salmon at a scale of 1,000 tonnes per annum of 5-6kg LW fish to undercut the landed costs of 5 – 6kg Norwegian salmon based upon the average week 4/2024 NASDAQ Salmon Index pricing plus air freighted delivery costs reportedbyNofima (exchange ratefor February2024 was ZAR 1.78 = NOK 1.00)
Cost advantage of locally farmed over imported Norwegian salmon = ZAR 84.39/kg as HoG for 5 – 6kg fish and
R40.00/kg HoG against 3-4kg imported Norwegian salmon !!!