Abalone farming in Africa

Abalone Abalone ((Haliotis midaeHaliotis midae)) farming farming and seaweed harvesting in South and seaweed harvesting in South

Africa:Africa: Industry interdependencies Industry interdependencies andand

socio-economic importancesocio-economic importance

Robertson-Andersson Deborah1; Troell2, M.; Halling2, C.; Anderson3, R.; Maneveldt4, G. and

Bolton1 J. J.

1Botany Department, UCT2Department of Systems Ecology, Stockholm University

3Seaweed Research Unit, MCM 4Botany Department, UWC

Robertson-Andersson Deborah1; Troell2, M.; Halling2, C.; Anderson3, R.; Maneveldt4, G. and

Bolton1 J. J.

1Botany Department, UCT2Department of Systems Ecology, Stockholm University

3Seaweed Research Unit, MCM 4Botany Department, UWC

““Abalone farming in South Africa has Abalone farming in South Africa has

developed rapidly and the country is now developed rapidly and the country is now

the largest producer outside Asia”.the largest producer outside Asia”. World Aquaculture March 2003World Aquaculture March 2003

Abalone industry development in SAAbalone industry development in SA

Farm Types:22 rights holders13 exporting farms2 hatcheries

South African abalone farmingSouth African abalone farming

CleaningCleaning Feeding Feeding

EatingEating

Roman Bay Sea FarmRoman Bay Sea FarmRoman Bay Sea FarmRoman Bay Sea Farm

SA kelp resourcesSA kelp resources

Seaweed Concession AreasSeaweed Concession Areas

Abalone production WW Kelp as abalone feed WW

beach cast DW

Kelp harvest vs abalone Kelp harvest vs abalone productionproduction

Seaweed concession areas and Seaweed concession areas and MSYMSY

Concession Area

MSY(t f wt)

Harvest

(t f wt)

Total Harvest as % of

Beach cast

(t f wt)

5 (3) 1165 696 60 354

6 (3) 2680 897 33 878

7 (3) 644 348 54 528

8 (3) 956 951 99 0

11 (2) 1550 1158 75 112

TotalsTotals 1039103999

40504050 5252 18721872Kelp: Maximum Sustainable Yields, harvests, and beach-cast amounts of fronds

supplied as abalone feed, for the year 2003, by concession area (MCM Data).

SCA 8 – SCA 8 – Relationships between abalone Relationships between abalone produced and seaweed harvestedproduced and seaweed harvestedSCA 8 – SCA 8 – Relationships between abalone Relationships between abalone produced and seaweed harvestedproduced and seaweed harvested

020406080

100120140

0 20 40 60 80 100

% harvest of MSYAb

Potential ProblemsPotential Problems

Largest farm 120 T expanding to 240 T

Smallest farm 35 T

Average 70 T

18 farms with 70 T of abalone

Feeding 10 % body mass

kelp demand has the potential to increase or exceed 35 280 T per year just for abalone feed

Farms are concentrated in certain areas

PoachinPoachingg

G. MarharajG. Marharaj

Abalone distribution Abalone distribution Abalone distribution Abalone distribution

Abalone exports to Hong Kong from Abalone exports to Hong Kong from Southern Africa for 2004 were 500 kg Southern Africa for 2004 were 500 kg dried abalonedried abalone

500 kg dried abalone (H. midae) from: Namibia, Lesotho,

Swaziland, Mozambique, Zimbabwe and Botswana.

Wet to dry ratio – 10 kg wet (live abalone meat shucked) = 1 kg

dried abalone

500 X 10 = > 5 000 kg illegally harvested abalone from South

Africa.

“…if poaching continues at the current rate, abalone will be

fished to extinction in less than three years…” (Duvenhage

2002 of the South African abalone resource). Data from Hong Kong Department of Statistics (2006)

Abalone industry multiplier effectsAbalone industry multiplier effects

ABALONE FARMING

EXPORT AND

TRANSPORT

SEAWEED HARVESTING

EDUCATIONAND

TRAINING

CANNING

RESEARCHANDR & D

SECURITY

FEEDINDUSTRY

VETERINARY

CIVILS AND

MAINTENANCE

ELECTRICITY

Growth in industry Growth in industry Growth in industry Growth in industry

Year No of producing

Investment(R millions)

Tons.a-1 Annual Percentage

increase

No of employees

Percentage increase in employees

2004 13 576 556

2005 13 197 745 27 776 28

2006 13 182 890 21 840 7.6*

*Decrease in employment is due to economies of scale

FOB (free on board - describes a price which includes goods plus the services of

loading those goods onto some vehicle or vessel at a named location.) is around

26.8 $.kg and has remained at this level for the last three years (Loubser, 2005)

Some facts and figures of the abalone Some facts and figures of the abalone industry:industry:

Min Max Average Total

Investment

per farm

(millions)

ZAR 30 ZAR

Workers per farm

17 110 63 814

Employees

per ton

0.6 1.62 1.1

Gross Industry turnover for 2005 = ZAR 200 million

Race distribution within the abalone industry: Black* 49 %

Coloured* 35 %

White* 16 %

An immature non producing farm has almost 100 % male workers while a mature

farm has approximately 74 % males with 26 % females.

*South African government classification to quantify racial imbalances introduced during the apartheid era

Distribution of running costs of the Distribution of running costs of the abalone industry:abalone industry:

Salaries and wages 31.27Cost of sales 21.5Kelp 10.63Repairs and maintenance 7.22Electricity 6.77Artificial feed 5.63R & D 3.2Security 2.5Technology 2.08 Insurance 4.2Miscellaneous 5.0

From Gerber 2004

Seaweed work forceSeaweed work forceSeaweed work forceSeaweed work force

Increased profitability - R 900 – R 1 200 per ton fresh harvested

kelp vs. R 2 142 per ton dried kelp for overseas alginate

production FOB, (Wet:Dry = 5:1 Anderson et al. 1989).

Start up costs range from R 250 000 to R 10 million.

The total investment in 2004 was R 255.8 million.

The average rand value of turnover per SCA allocated in 2004 was

approximately R 2.3 million (GPR, 2005).

Expenditure into research and development ranged from R 60 000

to R 600 000.

The gross industry turnover for 2004 was R 125 44 364.91 (GPR,

Increased profitability - R 900 – R 1 200 per ton fresh harvested

kelp vs. R 2 142 per ton dried kelp for overseas alginate

production FOB, (Wet:Dry = 5:1 Anderson et al. 1989).

Start up costs range from R 250 000 to R 10 million.

The total investment in 2004 was R 255.8 million.

The average rand value of turnover per SCA allocated in 2004 was

approximately R 2.3 million (GPR, 2005).

Expenditure into research and development ranged from R 60 000

to R 600 000.

The gross industry turnover for 2004 was R 125 44 364.91 (GPR,

Abalone canning sectorAbalone canning sectorAbalone canning sectorAbalone canning sector

The first abalone

factories built in the

1960’s and canned wild

caught abalone.

Jobs in this sector are of

a more permanent

nature with the staff

being well trained and

skilled.

Decrease in wild quota

has caused several

factories to close.

The first abalone

factories built in the

1960’s and canned wild

caught abalone.

Jobs in this sector are of

a more permanent

nature with the staff

being well trained and

skilled.

Decrease in wild quota

has caused several

factories to close.

Wild tons Farmed tonsNo of

contract divers

1998 95 0 50

2000 54 4 15

2002 36 30 6

2004 23 123 3

2006 7.5200

estimated2

Other employment sectorsOther employment sectorsOther employment sectorsOther employment sectors

Electrical industry - 5 – 15 % of a farms running costs. If this compared to

the area of Gansbaai, the total usage of the three farms in Gansbaai is

13% of the total usage in that area, (Lawson-Smith, 2003)

Security Industry - 2 – 5 % - outsourced security is maintained

Scientific equipment, generating of research projects - 3.2 % - An

example at the University of Cape Town, University of Stockholm and the

University of the Western Cape through 2 projects in collaboration two

farms, 3 Honours, 10 MSc. students and 1 PhD student have obtained

their degrees and bursaries through research on the abalone industry.

12 research institutes have been or currently are involved with research

into aspects of abalone and seaweed physiology and cultivation (Gerber

2004).