The South African Hake Industry
The hake trawling fishery is the largest of South Africa’s many fishing industries. According to the South African Deep-Sea Trawling Industry Association (SADSTIA), the hake industry generates more than USD 270 million in sales annually and hake landings in 2018 was an impressive 123,004 MT.
Two species of hake are caught, shallow-water hake (Merluccius capensis) and deep-water Cape hake (Merluccius paradoxus). Deep-water Cape hake makes up more than three-quarters of the total.
While hake is a popular fish within South Africa, 67% of the catch gets exported. Hake products get exported to over 42 countries and bring in foreign currency of USD 157 million annually.
Source: SADSTIA
The Cape hake fishery was the first in Africa to receive Marine Stewardship Council (MSC) accreditation (MSA). To obtain this certification, these fisheries need to be carefully managed in a way that is deemed sustainable by the MSC. Demand for fish from MSC accredited fisheries has become increasingly important as sustainable food practices are in the spotlight. The hake fishery has had its accreditation renewed twice and is seen as a benchmark for good management practices in fisheries. The South African hake fishery is managed by Total Allowable Catch (TAC) and to a lesser extent Total Allowable Effort (TAE) quotas. The TAC is set yearly, based on the status of the hake resources. The total allowable catch for 2021 is 139,109 MT, slightly down from 146,431 MT for both 2020 and 2019.
Source: DEFF, SADSTIA
While the TAC is slightly down, hake stocks are considered “above maximum sustainable yield”, which means that if TAC recommendations are followed, hake stocks should remain at optimal levels. According to the Department of Environment, Forestry and Fisheries’ (DEFF) Status of the Marine Fishery Resources, 2020, shallow-water hake stocks were abundant and deep-water hake stocks optimal, with fishing pressure on both species also regarded as optimal. This means that there had been no indication that there could be a drop in the hake catch any time soon.
Source: SADSTIA
Most of the South African hake catch is processed into fillets for the export market. The domestic market prefers headed-and-gutted hake. So-called ”baby hake” (small headed-and-gutted hake) is a regular item on South Africans’ shopping lists.
Source: SADSTIA
Hake is caught, processed, and exported year-round and there are few fluctuations in export volumes within the year. Export of frozen hake fillets for 2021 has been strong throughout the first 10 months of 2021. 19,011 MT of frozen hake fillets was exported over this period, compared to 17,188 MT over the same period in 2020. This also gave very little indication that supply might tumble.
Source: ITC Trade Map
The first indications that supply might be falling short are coming from the local market, where hake is getting hard to come by. According to Tridge’s representative in South Africa, Nic Thompson, some of the major retailers in South Africa are actively looking for hake, and especially baby hake is difficult to find. While no official numbers or public announcements have been made, hake catches are reportedly below expectations along the west coast of South Africa and also in Namibia. It is not yet clear what exactly is behind the lower catch, as there had been almost no warning signs that the fishery might be under pressure. It will become clear if the drop is a result of lower hake populations as the volumes reported by hake trawlers get tallied and made public after the holiday season is over.