Cold Link Africa Mar/Apr 2017 | Page 15

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INCORPORATING COLD CHAIN

Oceana creates more employment for fishing communities

Oceana Group , South Africa ’ s largest fishing company , continues to import frozen pilchards to meet local demand , providing continued employment for over 1 390 seasonal workforce throughout the year .

Oceana ’ s Lucky Star brand of canned pilchards is a market leader in its category and accounts for approximately three million meals per day in South Africa . To achieve the company ’ s objective of ensuring food security for the nation , Oceana has increased its production capacity to provide cost effective , high protein meals to more families throughout the country .
Rich in omega-3 fatty acids , pilchards offer a healthy and nutritious alternative protein source to beef , pork or chicken — all of which are expected to increase in price as one of South Africa ’ s worst droughts continues to affect the agricultural sector .
The availability of this ocean resource is not sufficient to meet local demand . To make up for the shortfall in local supply , Oceana imports frozen pilchards from Morocco and Thailand for value added processing in its canneries at St Helena Bay and Laaiplek in the Western Cape .
This year the South African total allowable catch ( TAC ) for pilchards is 23 % less than last year , which would potentially have resulted in the reduction of working hours . However , the processing of frozen pilchards has enabled Oceana to provide year-round employment for about 1 390 employees who would otherwise have remained seasonal workers . Furthermore , it has resulted in cannery offal being channelled through to the fishmeal plant and processed into fishmeal and oil , resulting in additional hours of work for its workforce .
“ Our determination to meet consumer demand prompted us to start importing frozen pilchards . While still relying heavily on our local quota , our production has been enhanced by the importing of additional product ,” comments Oceana CEO , Francois Kuttel .
“ Processing of our local pilchard quota can guarantee our cannery staff employment for only between two and three months of the year and meets less than 50 % of the local demand for this staple favourite of many South Africans ,” adds Kuttel .
Since 2014 , Oceana has created more than 300 weeks of additional employment in the canneries , and have ensured year-round employment for formerly seasonal staff who are now not only paid a basic wage , but also enjoy benefits such as overtime , pension fund contributions , seasonal bonuses , and a production bonus .
Oceana has invested an additional R10-million in the Laaiplek facility to process a greater quantity of frozen fish ; currently the majority of imported frozen pilchards is processed in the St Helena Bay facility . The
Oceana Group
The Laaiplek facility where Oceana invested R10-million to process more frozen fish .
annual imports of frozen pilchards translate to an economic injection of nearly R200- million in wages and in services procured in both St Helena Bay and Laaiplek .
Kuttel adds , “ The drop in our currency ’ s exchange rate against the US dollar means that we are paying more for imported canned pilchards than ever before , which is putting some pressure on our bottom line . On the flipside , the high US dollar exchange rate has meant that it is now possible for us to import frozen product and undertake the entire canning process in our own facilities , instead of importing the canned product , which was certainly more feasible
much stronger . Given the high demand for this cost effective protein source , it is likely that we will increase the amount of frozen pilchard imported in the future , which will create additional employment opportunities in these fishing communities .
“ The Oceana Group is committed to sustainable jobs for our entire workforce , especially for the formerly seasonal workers who can our pilchards . By importing frozen pilchards we are providing job security for our staff , as well as ensuring food security for the millions of South Africans who count on Lucky Star pilchards to provide a healthy , cost effective source of protein ,”
in the past when the exchange rate was
concludes Kuttel .
CLA

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