By Larry Claasen
SEA Harvest is looking to “maximize” its fishing operations in the second half of 2024.
The group said in its results for the six month to end June 2024, that 50% of the hake deep-sea trawl and Horse Mackerel quota still had to be caught and that it was aiming to do this with the assistance of two trawlers, the Harvest Cap Nord and Isabella Marine, it recently bought
The acquisition of a freezer trawler and a fresh fish trawler come as its total allowable catch has increased by 5%.
The group said its Pelagic division was on sound footing as costs were under control and was buoyed by strong demand both locally and internationally. In May, Sea Harvest completed its acquisition of Aqunion and Saldanha/Westpoint Fishing from Terrasan Group.
It bought a 100% of Terrasan’s pelagic business and 63,07% of Aqunion – its abalone business – for an initial cash and share-settled consideration of R965-million.
Though its Pelagic operation is doing well, it faces challenges within its Aquaculture division, as a result of slowing economies in China and Hong Kong, coupled with fierce competition. The group’s management is now focused on diversifying its Aquaculture division’s market, customer base, and product offerings to mitigate these pressures.
It said the successful integration of Viking Aquaculture – an abalone, oysters and mussels producer – and Aqunion was seen as crucial for unlocking the full potential of these acquisitions.
In the dairy sector, increased milk production and lower input cost inflation at Ladismith have been offset by a constrained consumer market and declining international powder prices. The group’s management was also working to address the impacts of the Foot-and-Mouth Disease outbreak in the Eastern Cape. Looking ahead, the commissioning of a solar PV plant and a new roller dryer powder plant in the second half of the year is expected to support the company’s sustainability and growth objectives.
In Australia, the delayed start of the 2024 Shark Bay and Exmouth prawn fishing seasons meant that most of the sales from the new season’s catch will occur later in the year. This would be bolstered by an increased quota for scallops and crabs in Shark Bay. The company is also focusing on diversifying its product and market mix to counteract the effects of weak global prawn prices.
Following the acquisition of Aqunion and Saldanha/Westpoint Fishing, the group said it remained committed to cost control, working capital management, cash generation, and debt reduction.
