Abalone ( Haliotis midae ) farming and seaweed harvesting in South Africa: Industry interdependencies and socio-economic importance Robertson-Andersson Deborah 1 ; Troell 2 , M.; Halling 2 , C.; Anderson 3 , R.; Maneveldt 4 , G. and Bolton 1 J. J. 1 Botany Department, U CT 2 Department of Systems Ecology, Stockholm University 3 Seaweed Research Unit, MCM 4 Botany Department, UWC

“ Abalone farming in South Africa has developed rapidly and the country is now the largest producer outside Asia”. World Aquaculture March 2003

Abalone industry development in SA Farm Types: 22 rights holders 13 exporting farms 2 hatcheries

South African abalone farming Cleaning Feeding Eating

Roman Bay Sea Farm

SA kelp resources Seaweed Concession Areas

Seaweed Concession Areas

Kelp harvest vs abalone production

Seaweed concession areas and MSY Kelp: Maximum Sustainable Yields, harvests, and beach-cast amounts of fronds supplied as abalone feed, for the year 2003, by concession area (MCM Data). 1872 52 4050 10399 Totals 112 75 1158 1550 11 (2) 0 99 951 956 8 (3) 528 54 348 644 7 (3) 878 33 897 2680 6 (3) 354 60 696 1165 5 (3) Beach cast (t f wt) Total Harvest as % of MSY Harvest (t f wt) MSY (t f wt) Concession Area

Kelp: 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 – Relationships between abalone produced and seaweed harvested

Potential 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

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

Poaching G. Marharaj

Abalone distribution

Abalone exports to Hong Kong from Southern Africa for 2004 were 500 kg dried 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)

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 effects ABALONE FARMING EXPORT AND TRANSPORT SEAWEED HARVESTING EDUCATION AND TRAINING CANNING RESEARCH AND R & D SECURITY FEED INDUSTRY VETERINARY CIVILS AND MAINTENANCE ELECTRICITY

Growth in industry *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) 7.6* 840 21 890 182 13 2006 28 776 27 745 197 13 2005 556 576 13 2004 Percentage increase in employees No of employees Annual Percentage increase Tons.a -1 Investment (R millions) No of producing farms Year

*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 industry: 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 1.1 1.62 0.6 Employees per ton 814 ZAR 346.5 Total 63 110 17 Workers per farm ZAR 15.75 ZAR 30 ZAR 1.6 Investment per farm (millions) Average Max Min

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.

Distribution of running costs of the abalone industry: Salaries and wages 31.27 Cost of sales 21.5 Kelp 10.63 Repairs and maintenance 7.22 Electricity 6.77 Artificial feed 5.63 R & D 3.2 Security 2.5 Technology 2.08 Insurance 4.2 Miscellaneous 5.0 From Gerber 2004

Seaweed 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 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. 2 200 estimated 7.5 2006 3 123 23 2004 6 30 36 2002 15 4 54 2000 50 0 95 1998 No of contract divers Farmed tons Wild tons

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.

Other 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 industries

“… 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

Socio-economic effects from Abalone farming in SA in 2004 Investment (ZAR) Male :female UnSkilled (%) Pay (ZAR) Tonnage (tons) Laborers 750 000 2 000 000 255 779 161 346 500 000 1:0 1:0.23 1:2 1:0.23 50 0 88 61 2464 2464 1484 1813 312 123 11019 740 8 57 388 (600 – 1000) 814 ABFEED CANNING SEAWEED ABALONE

Haga Haga – by ward area (Data from Census ‘05) Farm Stats… Black male 57 White Male 7 Black female 1 White female 1 Black African Coloured White Total Male 33 - 15 48 Female 39 3 24 66 Total 72 3 39 114

Haga Haga – by ward area (Data from Census ‘05) Farm Stats… Black male 57 White Male 7 Black female 1 White female 1 Black African Coloured White Total Male 33 - 15 48 Female 39 3 24 66 Total 72 3 39 114

South Africa vs. the world 8 L 100 25 1.15 Mexico 9 L/SC 400 239 0.6 USA # of farms Farm type Tonnage (tons) 2010 Tonnage (tons) 2005 Laborers per ton 23 20 26 13 L/SC L/SC L/SC L 150 1000 1000 1200 3 350 205 840 0.4 0.25 1.1 New Zealand Australia Chile South Africa

Socio-economic effects from Abalone farming in SA There are direct socio-economic benefits from the abalone industry through: employees ( > 1200 people employed ) salaries, incomes, gender, social groups ( 50 % unskilled labour ), etc. including spill over effects (e.g. the kelp industry) and also other indirect effects on entrepreneurs with 20 % growth in the industry forecasted for the next 5 years

THANK 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 J SP