South Africa's Fishmeal and Oil Industry Braces for Long-Term Supply Shortages
Low anchovy and sardine landings have forced South African fishmeal and fish oil manufacturers to adapt to meet domestic and global demand.
Oceana Group, a Cape Town-based fishing and processing firm, has seen its production volume drop by 68% for the six months ending March 31, from 48,542 metric tons last year to just 18,353 MT.
The company attributes this decline to the highly cyclical nature of anchovy populations, which are affected by environmental factors such as upwelling intensity and sea surface temperature.
However, some experts warn that this is not a simple cyclical downturn, but rather a new normal due to climate change, which has warmed South African ocean waters by up to 2 degrees Celsius. This has pushed small pelagics into deeper, colder waters in search of nutrients.
Oceana's diversified portfolio, which includes its Daybrook Fisheries subsidiary in the U.S., is providing a natural hedge against resource variability, allowing the company to continue servicing its international customer base.