Norwegian salmon to South Africa

AFRICA is one of the regions of the world that is experiencing rapid economic growth. The economic development means that a growing number of consumers have the purchasing power required to choose Norwegian seafood. For this reason, Nofima has been commissioned by the Norwegian Seafood Research Fund (FHF) to examine the possibilities for increased export of Norwegian salmon to South Africa.

The objective of the project is to obtain reliable and industry-relevant knowledge about the South African seafood market. The project is to provide the aquaculture industry with knowledge that can contribute to Norwegian salmon continuing to increase its share of the South African market, whilst establishing and maintaining a favourable situation for industrial competition. This is to be achieved by analysing international trade statistics, mapping and analysing central value chains for fresh and frozen salmon in South Africa, and identifying important marketing criteria and differentiation opportunities in these value chains.

This knowledge will lead to strategic recommendations for Norwegian stakeholders who act in the market or who are considering establishing themselves in South Africa.

Increased export to South Africa

The ambition of the Norwegian salmon industry is to grow. The development of new and established markets is vital to increase the demand for Norwegian salmon and to ensure that the price remains high.

Markets with high purchasing power are particularly interesting in this context. South Africa is one such market, in which the demand for Norwegian salmon has increased dramatically in line with the positive economic development in the country.

Norwegian companies exported 3,000 tonnes of fresh Norwegian salmon to South Africa in 2012, which was twice the figure for 2011 and six times the figure for 2006.A further 1,000 tonnes of frozen salmon was exported to South Africa in 2012, considerably higher than previous years.

The import of fresh salmon from Norway increased rapidly until 2007 (Norwegian Seafood Council, 2008).

The Norwegian Seafood Council has shown that most of the fresh salmon was destined for restaurants in 2007 (1,100 tonnes of fresh salmon). South Africa experienced also a pronounced trend for sushi, but there is evidence that this declined after a peak in 2007/2008, following the establishment of several disreputable operators in the market. This will be investigated in the proposed project.

The development of GNP per inhabitant in South Africa has been positive during the most recent decade, and amounted to US$7,500 in 2012. The GNP per inhabitant of South Africa is high when compared with those of other countries in Africa. Thus, the country appears to be an extremely attractive market for Norwegian salmon.

The average disposable income increased in South Africa by 60% between 2009 and 2012. This has led to an increase in general consumption. One example is the “black middle class”, in which consumption has more than doubled during the past 10 years.

Even so, the purchasing power of the average South African is relatively low, when compared with European consumers. In 2012, for example, each South African used an average of only US$872 for food, which constitutes 20% of total consumer expenditure (René and Balde, 2013).

Each Frenchman, for comparison, used $3,037 on food. France is the largest market for Norwegian salmon, where only 1Womens Nike Cortez