This cautious approach is prudent, as the lack of a consistent market caused the collapse of the nascent catfish industry in the 1990s.
In this article, I’ll discuss the three market opportunities currently available to tilapia fish farmers.
The informal market
This market is particularly useful for selling small tilapia of between 150g and 300g. Millions of rural people throughout tropical Africa, for example, the Barotse people in northwest Zambia, survive on wild-caught tilapia of this size.
Their daily catch often consists of very small fish, often less than 10cm in length.
There is also a substantial market for small tilapia in informal townships, where fish are offered for sale as small, medium or large. Small fish are around 150g each, while large specimens are about 350g.
Typically, fish are harvested and then transported immediately to the informal market for sale.
These fish are whole, and often still alive, and therefore remain fresh. The customers have little access to refrigeration, so the fish are consumed on the same day.
Typical prices vary from R7,50 to R15 per fish, and many fish are bought in bulk and then resold.
For fish farmers in cooler areas, this market offers the opportunity to grow and sell the fish during the warmer months, then shut down the system during the cooler months. Farmers who use ponds for growing tilapia can produce large volumes by using this seasonal production method.
Fish distributors
These people collect gutted, gilled and possibly scaled fish from the farmer, and distribute them to various retail outlets. While these distributors may be hard to find, they are available countrywide.
One of the advantages of this market is that processing is limited – packaging is very basic and often requires little more than bulk plastic bags.
It is possible to achieve between R40/kg and R50/ kg, but a load of 100kg to 500kg is usually required at a time, and a regular supply may be expected.
The formal market
In this market, tilapia are processed into a value-added format that may include fillets, spiced offerings in various configurations, or even whole, cleaned fish in shrink-wrap plastic.
A supermarket may seem like an attractive option, but its delayed payment terms and need for regular supply may make it unviable for smaller producers.
Moreover, supermarkets are notorious for their reluctance to pay a fair price for a product that they may sell to the customer for up to R300/kg.
A better option may be health food outlets or delicatessens that are attracted to the healthy pesticide- and hormone-free nature of locally farmed tilapia as a health food.
These outlets pay farmers anything from R55/kg for a whole fish up to R185/kg for fillets.
About exporting fish on a commercial basis
To export fish, such as marine fish, for profit you must apply for a permit from the Department of Environment, Forestry and Fisheries.
If you are applying for export permits for bigeye tuna, southern bluefin tuna, swordfish, Antarctic toothfish, and Patagonian toothfish, you must attach the relevant catch statistical document for each consignment. Catch statistical documents are available from the Department of Environment, Forestry and Fisheries, Branch: Fisheries Management.
Note: This export permit expires after three months and it excludes freshwater fish. You must apply for a new permit once it has expired. Failure to adhere to permit conditions may result in suspension or cancellation of the permit.
For the exportation of species listed(link is external) by the Convention on International Trade in Endangered Species (CITES)(link is external) you must contact the Department of Environmental Affairs.
What you should do
Inform your nearest branch of the South African Bureau of Standards (SABS) about your export consignment if the fish you intend to export is not fresh and not for human consumption.
If the fish is fresh and for human consumption, you must inform Port Health.
Get the Application for a permit to export fish form at the Branch: Fisheries Management.
Complete the application forms with the following information:
physical addresses of importers in the destination country
the common and scientific names of the species being exported
quantities of species being exported
copies of catch statistical documents for all bigeye tuna, southern bluefin tuna, swordfish, Antarctic toothfish, and Patagonian toothfish exported under a previous export permit
your identity document (ID) and registration documents for your company, close corporation or trust
valid export permits from the Department of Trade and Industry or International Trade Administration Commission permit notifications
tax clearance certificate from the South African Revenue Service.
Where an agent is involved, an agreement between two parties must be attached together with copies of the signatories’ identity documents.
If you do not have a fishing right permit, you must also submit the following:
proof of supply and the physical addresses of the suppliers of the marine fish being exported
common and scientific names of the species being exported
quantities of species being exported.
Pay the prescribed fee in the following account:
Bank: First National Bank
Account number: 62123256382
Account type: Current
Account name: Marine Living Resources Fund
Branch name: Corporate Account Service Cape Town
Branch code: 204109
For a reference call the customer service centre at 021 402 3911 / 0860 000 3474
Submit the application forms to the Department of Agriculture, Forestry and Fisheries, Private Bag X2, Roggebaai, Cape Town, 8012 . Post or submit the original applications; failing which you will not be issued with the permit.
How long does it take
It may take seven working days or more, subject to proper lodging of the application and confirmation of payment.
How much does it cost
Get the tarrifs for 2018/19 from the Branch: Fisheries Management.
Forms to complete
Get the Application for a permit to export fish form from the Branch: Fisheries Management.
Who to contact
- Department of Environment, Forestry and Fisheries, Branch: Fisheries Management.
Tel: 086 111 2468