Aquaculture promise for Southern Africa

Three international companies recently joined forces to create a “one-stop” specialist aquaculture technology company. The company, named Global Recirc Technologies, promises to revolutionise fish production in Southern Africa.
Issue date : 27 February 2009

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Three international companies recently joined forces to create a “one-stop” specialist aquaculture technology company. The company, named Global Recirc Technologies, promises to revolutionise fish production in Southern Africa.

You are very confident Southern Africa is ready to cash in on aquaculture. Why is that?
Many marine and freshwater species are currently under threat due to wild harvesting. Despite this, the demand for fish is growing and aquaculture can reduce pressure on wild species and help enhance global food security. Some countries are already taking advantage of the situation. The Chilean salmon industry has grown from US9 million (R1,5 billion) in 1991 to exporting over US,3 billion (R23,1 billion) in 2007. The production of tilapia has been exponential over the last few years to the point where the US market demand has gone from almost nothing to importing 554 000t of whole fish in 2007. The same trend is also seen in Europe.

But there have been many failed projects in the past …
The situation in Southern Africa has changed due to favourable infrastructure, technological development, the availability of favourable species and significant increases in industry knowledge. Through genetic improvement of fin-fish species such as tilapia, feed conversion and growth rates have improved, again making it economically viable to farm with fish.

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Tell us more about Global Recirc Technologies?
Global Recirc Technologies was formed because of an alliance between Holder Timmons Engineering, a US group, Canadian aquaculture consultant John Holder and the South African company Global Aquaculture Solutions.
Over the past decade these companies have been involved in more than 60 projects in 14 countries. Key staff members in the group have a combined experience base of more than 250 years in aquaculture and are world leaders and experts in the recirculation and re-use of water in aquaculture.

What does this company offer?
The alliance turns the new company into a world leader of supplying services to the industry in the form of consultancies, research and development, design, manufacturing, installation and after-sales service of systems and technology.
Apart from in-house expertise, the company has access to outside expert industry services, which can assist with consulting or physical support towards the supply of aquaculture packages (see box: Aquaculture packages).

And you offer market access without the risk?
New roleplayers can enter the market without paying school fees. Global Recirc Technologies also allows farmers to buy locally-produced aquaculture technology and products instead of importing. This makes a vast cost difference.

While millions of dollars are invested in aquaculture in Africa, it never really took off in South Africa. Why is this?
Cool water temperatures have rendered most South African regions unsuitable for tropical fish. Tropical fish, such as the African sharp-tooth catfish and the two major commercial tilapia species, never had much potential in open-water systems here.

Does the use of controlled production systems change the situation?
Yes. Southern Africa and South Africa have the potential to become global roleplayers producing top-quality white-fleshed fin-fish species in traceable production systems for especially European markets.

How economically viable would it be to produce fish in temperature-controlled environments?
Economy of scale is important. Entry level production would be between 500t and 1 000t live product a year. Aquaculture isn’t easy, as it requires huge capital investment, sound management systems and secure take-off agreements.
In comparison, conventional aquaculture methods such as outdoor-pond systems and net-pen systems aren’t likely to be sustainable due to significant environmental issues and an inability to guarantee the safety of products.

What are the opportunities for subsistence farmers?
Small projects have to hook onto large, well-established commercial projects to secure them. Farmers need a constant supply of fingerlings, fish feed, markets and so forth.

Where are the market opportunities?
A potential aquaculture producer should firstly establish a market. There are huge market opportunities in Europe and Southern Africa if the quality is right.
Farmers would also benefit from forming cooperatives such as the Hands-On fish farmers’ project mentored by the University of Stellenbosch. This would ensure sufficient volumes to supply European and local markets on a sustainable basis. I won’t venture into the US as it’s a very sophisticated market with well-established suppliers.

What do you currently see as the main constraints in aquaculture production?
Lack of government support and direction in African aquaculture policies and legislation, as well as financial incentives. This is changing rapidly. Many African countries such as Namibia, Mozambique, Angola and South African provinces Northern Cape and KwaZulu-Natal are coming to the party to attract investors.
These countries or provinces are analysing and assessing regions to create strategic plans for production. I’m certain these projects would attract investors once the benefits and opportunities become widely known.

Any other advice to industry roleplayers?
All roleplayers have to get together to create a national aquaculture plan. The plan should include information about aquaculture production and establishing markets.
It should also clearly stipulate the role of different bodies and government departments, such as the Department of Water Affairs, Environmental Affairs and Marine and Coastal Management.
It should also encapsulate provincial policies and provide information on fish species and marketing trends.
For more information contact Kriek Bekker on (021) 885 2122 or e-mail [email protected].     |fw