PREMIER FISHING SOUTH AFRICA: Consolidating Strength While Hunting for Growth

South Africa’s Operation Phakisa is about utilising the vast oceans that surround the country’s more-than-3000km of coastline. Established in 2014, Operation Phakisa looks to build economic prosperity and opportunity by unlocking the power of the sea. The clashing cold Atlantic Ocean meets the warmer Indian Ocean at Cape Point, and the water provides a bounty. 

On land, the value increases. Marine transport and manufacturing, energy oil and gas, aquaculture, marine protection, small harbours, tourism, and much more is given life by the sea. 

Some suggest that by 2033, South Africa’s oceans could contribute up to R177 billion to GDP and support more than 800,000 jobs. 

At Premier Fishing South Africa, one of the country’s leading commercial fishing, fish processing and marketing companies, the power and potential off the coast is being highlighted by ongoing growth in a tough industry. 

“We are the market leader in the south coast rock lobster and the biggest exporter of south coast rock lobster from South Africa. We are the largest exporter of squid from South Africa to Europe – we lead in those two markets,” explains CEO Sooren Ramdenee. 

“We also have an aquaculture farm where we produce abalone, and we are in many other fishing sectors as well, including pilchards, octopus, and hake.” 

The company owns strong brands including South Atlantic Lobster, Marine Growers, Atlantic Abalone, Sea Diamond, and Seagro an organic fertilizer product. 

HUNTING FOR OPPORTUNITY  

In 2020 and 2021, Premier Fishing & Brands Ltd – the JSE-listed entity that controls Premier Fishing South Africa – posted strong financial results despite rough economic conditions. Vertical integration helped the business to retain strong cost controls and, in its 2021 results presentation, the company highlighted optimism and positivity when looking forward. 

Today, Premier Fishing is busy across widespread geographic locations around the country, and Ramdenee is looking for new avenues for growth. A Certified Chartered Accountant by training, he is clear that the numbers will follow the development of a robust team culture. 

“Fishing is always a challenge – it is a difficult industry,” he admits. “But the company has always been well-run and my job is to expand the company further and consolidate on what we have. We turn to shareholders (African Equity Empowerment Investments Ltd) and experienced employees, and all stakeholders to help with that. It has been interesting over the past few months, and hopefully we are on the right path. 

“We value our people. The most important asset in our company is our people – our seafarers, skippers, and everyone on the boats. Without them, there is nothing. They get the product – they put their lives at risk. We get the product and sell it, but without them, there is nothing.” 

After joining the company in 2022, Ramdenee has identified the areas where Premier Fishing already leads as essential for both growth and consolidation, and helped strengthen the company’s holding in Talhado Fishing Enterprises – a specialist squid business with freezing facilities on land and sea. “Recently,” he says, “we have acquired additional stake in the squid sector. We had 50.3% of Talhado Fishing Enterprises and we have acquired an additional 30.35% to bring our shareholding to 80.6%. We will look for other opportunities in SA and outside of SA – if it meets our criteria, we will certainly look at it.” 

Squid has been a particularly important sector for Premier Fishing and the company is now a leader in the South African industry, driving revenue for the country. 

“We send to various countries in Europe – Portugal, Spain, France, Italy, Croatia and more. We also export to the USA, Japan, China, and Taiwan and Japan – we have a vast network,” says Ramdenee, adding that the limits imposed on fishing of certain stocks, while welcomed, mean that the company cannot always fulfil demand with supply. This is why the CEO remains hungry for further opportunity. 

“As a company you cannot stay stagnant. You always need to grow and you have to be open-minded. We are actively looking for opportunities.”

HISTORICALLY BUOYANT

Premier Fishing South Africa is more than 70-years old. The company has been navigating the seas around the country for decades and is headquartered from Cape Town. Bases include Saldanha Bay, Hout Bay, Gansbaai, and Port Elizabeth and St Francis Bay. The goal for the business is ‘to be the first choice in everything we do and for our stakeholders’. Currently, customers around the world receive some of the finest lobster products thanks to historic excellence in the sector. 

In 2022, Premier Fishing received R200 million in revenue from its lobster business, an increase on 2021. At the same time, the company negotiated fishing rights for the next 15 years for south coast rock lobster as well as other lines. Generally, lobster catches are frozen at sea before being graded and packed at facilities on land. SCRL live in deep water and so must be fished with long-line traps or baited lobster pots, requiring multiple hauls each week. Most of the catch heads to the USA and the knowledge that customers respect and acknowledge South Africa’s hard work is fantastic for the local workforce, which sits at around 800 people depending on time of year. 

“It is a good environment to work in,” says Ramdenee. “Everyone knows what they have to do. We are running a business so we do have to be sustainable. The fishing industry is seasonal. There are times when fishermen and crew are not working. We equip ourselves for that, we prepare and develop other tasks. It’s not all about profit – it is about an eco-system including the whole community. You have to balance what you can do, and that is what I am proud of.” 

LOCAL, REGIONAL, GLOBAL

A Level 1 BBBEE company, with significant local procurement scores, the business is committed to safety through a large network of regional partners, but this does present challenges in ensuring quality of the highest standard. 

“We do give preferences to BEE companies, but they must be able to deliver. Our supply chain is critical to the running of the business and we are well-staffed. Whoever we deal with has to be the best. We cannot take risks, we are pedantic about this to ensure we keep our costs down. Everything is checked and audited to ensure we are getting the right prices – that is how we maintain our costs and production,” explains Ramdenee. 

At the same time, Premier Fishing is building partnerships in the community and, in the past five years, invested more than R12 million into education and feeding schemes. R2 million was spent on learnerships, education, and skills development in 2022 alone. This comes at a time when the South African economy is challenged from all directions and the global economy remains highly unpredictable and uncertain. Today, Premier Fishing is debt free and at the helm of its own destiny. 

“We have our own vessels, equipment, people, and sites,” says Ramdenee. “One of the most important things to ensure is that any vessel we put to sea is safe. There is an emphasis on this because we are putting people’s lives on the boat. We have to ensure they are up to standard with regards to repairs and maintenance. Diesel costs a lot of money – sometimes people can be out at sea for around a month, and that is expensive. We do have a central procurement team, and we have shore skippers at each location to ensure we have the right conditions to go to sea.” 

According to a study from Stanford University, global demand for seafood is set to double by 2050. China alone will consume around 100 million tonnes by 2050, and many are busy with research into alternatives for sources of iron, calcium and vitamin B-12 as the world slows its consumption of red meats. Changing appetite among young consumers, climate change issues, and the ability to quickly upscale sustainable production will all be hurdles for the wider global industry, but Premier Fishing is standing strong with a diverse product portfolio and varied customer base. 

Currently, the fierce waters off South Africa’s coast are plentiful and Premier Fishing is looking to build on its fair winds.

“We are very flexible,” says Ramdenee. “We react quickly and take opportunities. We lead in south coast rock lobster and squid, and these are good businesses to be in. Based on what we can catch, all of our goods are sold – we simply cannot catch enough. We export everything, and that is good for the country as we are a foreign revenue earner. As we grow, we will be able to employ more people sustainably. 

“We are always looking for opportunities,” he concludes. “We actively want to expand and grow. We evaluate every chance – we are in a phase where we want to grow the business aggressively.” 

As progress with Operation Phakisa continues, Premier Fishing is the perfect demonstrator of how successful a sustainable ocean-based business can be, even over the biggest waves.