INDUSTRY FOCUS: FOOD & AGRICULTURE

//South Africa’s Operation Phakisa is about utilising the vast oceans that surround the country’s more-than-3000km of coastline. Established in 2014, Operation Phakisa looks to build economic prosperity and opportunity by unlocking the power of the sea. The clashing cold Atlantic Ocean meets the warmer Indian Ocean at Cape Point, and the water provides a bounty.

On land, the value increases. Marine transport and manufacturing, energy oil and gas, aquaculture, marine protection, small harbours, tourism, and much more is given life by the sea.

Some suggest that by 2033, South Africa’s oceans could contribute up to R177 billion to GDP and support more than 800,000 jobs.

At Premier Fishing South Africa, one of the country’s leading commercial fishing, fish processing and marketing companies, the power and potential off the coast is being highlighted by ongoing growth in a tough industry.

“We are the market leader in the south coast rock lobster and the biggest exporter of south coast rock lobster from South Africa. We are the largest exporter of squid from South Africa to Europe – we lead in those two markets,” explains CEO Sooren Ramdenee.

“We also have an aquaculture farm where we produce abalone, and we are in many other fishing sectors as well, including pilchards, octopus, and hake.”

The company owns strong brands including South Atlantic Lobster, Marine Growers, Atlantic Abalone, Sea Diamond, and Seagro an organic fertilizer product.

Hunting For Opportunity

In 2020 and 2021, Premier Fishing & Brands Ltd – the JSE-listed entity that controls Premier Fishing South Africa – posted strong financial results despite rough economic conditions. Vertical integration helped the business to retain strong cost controls and, in its 2021 results presentation, the company highlighted optimism and positivity when looking forward.

Today, Premier Fishing is busy across widespread geographic locations around the country, and Ramdenee is looking for new avenues for growth. A Certified Chartered Accountant by training, he is clear that the numbers will follow the development of a robust team culture.

“Fishing is always a challenge - it is a difficult industry,” he admits. “But the company has always been well-run and my job is to expand the company further and consolidate on what we have. We turn to shareholders (African Equity Empowerment Investments Ltd) and experienced employees, and all stakeholders to help with that. It has been interesting over the past few months, and hopefully we are on the right path.

“We value our people. The most important asset in our company is our people – our seafarers, skippers, and everyone on the boats. Without them, there is nothing. They get the product – they put their lives at risk. We get the product and sell it, but without them, there is nothing.”

After joining the company in 2022, Ramdenee has identified the areas where Premier Fishing already leads as essential for both growth and consolidation, and helped strengthen the company’s holding in Talhado Fishing Enterprises – a specialist squid business with freezing facilities on land and sea. “Recently,” he says, “we have acquired additional stake in the squid sector. We had 50.3% of Talhado Fishing Enterprises and we have acquired an additional 30.35% to bring our shareholding to 80.6%. We will look for other opportunities in SA and outside of SA – if it meets our criteria, we will certainly look at it.”

Squid has been a particularly important sector for Premier Fishing and the company is now a leader in the South African industry, driving revenue for the country.

“We send to various countries in Europe – Portugal, Spain, France, Italy, Croatia and more. We also export to the USA, Japan, China, and Taiwan and Japan - we have a vast network,” says Ramdenee, adding that the limits imposed on fishing of certain stocks, while welcomed, mean that the company cannot always fulfil demand with supply. This is why the CEO remains hungry for further opportunity.

“As a company you cannot stay stagnant. You always need to grow and you have to be open-minded. We are actively looking for opportunities.”

Historically Buoyant

Premier Fishing South Africa is more than 70-years old. The company has been navigating the seas around the country for decades and is headquartered from Cape Town. Bases include Saldanha Bay, Hout

Bay, Gansbaai, and Port Elizabeth and St Francis Bay. The goal for the business is ‘to be the first choice in everything we do and for our stakeholders’. Currently, customers around the world receive some of the finest lobster products thanks to historic excellence in the sector.

In 2022, Premier Fishing received R200 million in revenue from its lobster business, an increase on 2021. At the same time, the company negotiated fishing rights for the next 15 years for south coast rock lobster as well as other lines. Generally, lobster catches are frozen at sea before being graded and packed at facilities on land. SCRL live in deep water and so must be fished with long-line traps or baited lobster pots, requiring multiple hauls each week. Most of the catch heads to the USA and the knowledge that customers respect and acknowledge South Africa’s