Abalone (Haliotis midae) farming and seaweed harvesting in South Africa: Industry interdependencies and socio-economic importance

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

0

100

200

300

400

500

600

1957

1960

1963

1966

1969

1972

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

Years

Ab

alo

ne

(to

ns

)

0

1000

2000

3000

4000

5000

6000

7000

Ab

alo

ne

fe

ed

an

d b

ea

ch

ca

st

(to

ns

)

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

MSY

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

SCA 8

0

20

40

60

80

100

years

% o

f M

SY

020406080

100120140

0 20 40 60 80 100

% harvest of MSYAb

alon

e (to

ns)

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

farms

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

1.6

ZAR 30 ZAR

15.75

ZAR

346.5

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,

2005)

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,

2005)

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).

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).

“… unemployment is high and rising and is considered to be one of the most critical

socio-political challenges for the government” (Kingdon & Knight, 2003).

Lewis (2001), the overall unemployment in 2000: > 36 % for skilled and > 50 % for

unskilled and semi-skilled workers.

Unskilled = do not need to use reasoning in the performance of their work.

Semiskilled = read, write and communicate.

Skilled = some form of tertiary education and or a matric

Skill distribution within the industriesSkill distribution within the industries

ABALONESEAWEE

DCANNING ABFEED

Laborers 814 388 (600

– 1000)

57 8

Tonnage (tons) 740 11019 123 312

Pay (ZAR) 1813 1484 2464 2464

UnSkilled (%) 61 88 0 50

Male :female 1:0.23 1:2 1:0.23 1:0

Investment

(ZAR)

346 500 000 255 779

161

2 000 000 750 000

Socio-economic effects from Abalone Socio-economic effects from Abalone farming in SA in 2004farming in SA in 2004

Haga Haga – by ward area Haga Haga – by ward area (Data from Census ‘05)(Data from Census ‘05)Haga Haga – by ward area Haga Haga – by ward area (Data from Census ‘05)(Data from Census ‘05)

Black African Coloured White TotalMale 33 - 15 48Female 39 3 24 66Total 72 3 39 114

Farm Stats…

Black male 57

White Male 7

Black female 1

White female 1

Haga Haga – by ward area Haga Haga – by ward area (Data from Census ‘05)(Data from Census ‘05)Haga Haga – by ward area Haga Haga – by ward area (Data from Census ‘05)(Data from Census ‘05)

Black African Coloured White TotalMale 33 - 15 48Female 39 3 24 66Total 72 3 39 114

Farm Stats…

Black male 57

White Male 7

Black female 1

White female 1

South

AfricaChile

Australi

a

New

ZealandUSA

Mexic

o

Laborers

per ton

1.1 0.25 0.4 0.6 1.15

Tonnage

(tons)

2005

840 205 350 3 239 25

Tonnage

(tons)

2010

1200 1000 1000 150 400 100

Farm type L L/SC L/SC L/SC L/SC L

# of farms 13 26 20 23 9 8

South Africa vs. the worldSouth Africa vs. the world

Socio-economic effects from Abalone Socio-economic effects from Abalone farming in SAfarming in SA

There are direct socio-economic benefitsdirect socio-economic benefits from the abalone industry through: employees ( > 1200 people employed> 1200 people employed) salaries, incomes, gender, social groups (50 % unskilled labour50 % unskilled labour), etc. including spill spill over effectsover effects (e.g. the kelp industry) and also other indirect effectsindirect effects on entrepreneurs with 20 % growth20 % growth in the industry forecasted for

the next 5 years

  THANK YOUTHANK YOU

ACKNOWLEDGEMENTS

I would like to extend special thanks to the following

organizations without whose help this project would

have

been impossible:

Swedish and South African Collaborative Program

I & J Mariculture farm

JSP Mariculture farm

Abagold

N R F JSP