+27 71 448 3496

Sea Harvest’s aquaculture segment shows growth

Share Article
South Africa based agri-business and seafood company Sea Harvest, has seen significant growth in its aquaculture segment

Sea Harvest’s aquaculture segment shows growth

 Despite a disappointing performance by seafood and agri-business Sea Harvest’s fishing operation, the company’s aquaculture segment showed good growth.

Sea Harvest’s aquaculture segment increased revenue by 55% to R56- million, benefiting from increased abalone sales volumes and pricing, resulting in the segment halving its loss to R18-million.

The company suffered a loss in hake volumes during the first six months of the year though, which they attribute to the recently concluded Fishing Rights Allocation Process (FRAP), while the rising fuel price had a significant financial impact on its operations.

According to Sea Harvest Group CEO, Felix Ratheb, the company had to confront tough macro-environmental factors driven by significant input cost pressures and supply chain disruptions.

“The South African fishing operation, the bedrock of the group, had to contend with a 10% decrease in available hake quota volumes due to losses associated with the FRAP and a reduction in the Total Allowed Catch (TAC), compounded by significantly higher fuel prices and a stronger exchange Rand, resulting in 25% lower operating profit for the period.

FRAP lays good foundation

Despite the headwinds, the group delivered earnings before interest and tax (EBIT) of R287- million and headline earnings per share of 65 cents, 10% behind 2021 respectively, an acceptable outcome in the circumstances,” says Ratheb.

“Although we were disappointed with the outcome of the FRAP, considering that Sea Harvest was one of the top performing companies in all sectors it applied for, the result lays a good foundation for certainty and stability to the group for the next 15 years,” adds Ratheb.

Despite the tough operating environment, Sea Harvets completed the acquisition of MG Kailis’ fishing business on 23 May 2022, which Ratheb says represents a significant step in the execution of the group’s investment strategy of acquisitive growth in the international seafood space.

“It complements and diversifies our existing business operations in Australia. The Australian subsidiary performed well, with revenue up 17% for the period. Pleasingly, our other operations continue to deliver. The Cape Harvest Foods segment increased 85% to R956- million as a result of the increased capacity at Ladismith Cheese, combined with the Mooivallei and BM Foods acquisitions,” says Ratheb.

Sea harvest employs more than 5300 employees, operates 60 vessels and 15 processing facilities in South Africa, Australia, Namibia and Mozambique, selling its products to more than 26 countries across the globe. The group owns two dairy operations in Ladismith and Bonnievale in the Western Cape, South Africa, producing a variety of cheese, butter and powder products. Sea Harvest Aquaculture operates two abalone aquaculture farms and two oyster farms in South Africa and Namibia.

Sea Harvest supports an ecosystem approach to fisheries (EAF) management in its wild-capture operations. Its Cape hake products and Australian prawns proudly bear the blue Marine Stewardship Council (MSC) logo – the gold standard for sustainability in the global fishing industry.

WhyAfrica does research and covers natural resources and the primary sectors of African economies, and the infrastructure, equipment and engineering methods needed to extract and utilise these resources in an efficient, responsible, sustainable, ethic and environmentally friendly way, so that it will benefit the people of Africa.

Furthermore, WhyAfrica promotes Africa as an investment and travel destination, analyses the continent’s business environment and investment opportunities, and reports on how the political economy of African countries affects its development.         

WhyAfrica provides you with business intelligence that matters. Africa is our business, and we want it to be yours too. To subscribe to WhyAfrica’s free newsletter or digital magazine, and for more news on Africa, visit the website at www.whyafrica.co.za or send a direct message. WhyAfrica launched its first ever digital magazine in November 2021.

The company will undertake its annual road trip through South Africa, Zimbabwe, Zambia, the DRC, Malawi, Tanzania and Kenya in 2023. If you are interested in sponsorship or advertising opportunities, please contact me at leon@whyafrica.co.za. We have a wide range of different packages and combo deals to give your company the greatest exposure to a rapidly growing, African readership.  

The 2022 Southern Africa Road trip issue of WhyAfrica’s magazine is now available in print. The magazine was distributed in South Africa, Namibia, Zambia, Zimbabwe, and Botswana during WhyAfrica’s 2022 Southern Africa Overland Road Trip, the company’s new and innovative platform. WhyAfrica has expanded its product range and now offers its readers, followers, advertisers, subscribers and partners the following:

  • Daily 24/7 online articles on WhyAfrica’s website (FREE)
  • Daily updates on WhyAfrica’s social media platforms (FREE)
  • Newsletters delivered to a handpicked audience every two weeks (FREE)
  • Two printed magazine per year distributed at large events and during our road trips across Africa featuring original, in-depth articles (FREE) with great, on-site photographs by the WhyAfrica team (FOR SALE UPON REQUEST)
  • Four digital magazines per year (FREE)
  • Live updates, video clips, articles, and podcasts during and after WhyAfrica’s annual road trips (Southern Africa in 2022, East Africa in 2023 and West Africa in 2024) (FREE)
  • Sponsorship and advertising opportunities for the annual WhyAfrica Overland Road Trips (PAID FOR)
  • A library where companies doing business in Africa can display scientific or research papers (PAID FOR)
  • A product section where companies doing business in Africa can display new offerings or services (PAID FOR)
  • Media partnerships with, and a presence at, most of the major conferences and exhibitions in the African mining, energy, agriculture, infrastructure, water management, ESG, environmental management, tourism, development, and conservation sectors (FREE)
  • WhyAfrica connects potential investors with new ventures in Africa and suppliers and service providers with existing companies in Africa (PAID FOR)
  • WhyAfrica assists companies in generating content focused on the wider African business community (PAID FOR)
  • Partnerships with companies doing business in Africa (PAID FOR)
  • Partnerships with companies thinking about expanding into Africa (PAID FOR)
  • In 2023 subscribers will have access to our in-depth articles about the African political economy, research, and country reports about the countries we visit on our road trips, and trends in the sectors that we cover (PAID FOR)
  • A WhyAfrica book is in the pipeline and if all goes according to plan, should be published towards the end of 2023 (PAID FOR)
  • The WhyAfrica consultancy arm assists and advises companies doing business in Africa through utilising our extensive global business network (PAID FOR)

Become part of the WhyAfrica community. Tell us your story. Expand your footprint across Africa and partner with us to make the most of your African experience.           

Share Article


AgricultureEnvironmental Management & Climate ChangeEnergyESGInfrastructureMiningPolitical EconomyTourism and ConservationWater Management