EU decision imminent on duty-free access for abalone

The European Union (EU)
will decide next month
(March) whether it will
grant duty-free market
access to South African
abalone, also referred to as
“white gold” on the global
trading market.
With the new Economic
Partnership Agreement
(EPA) between the
European Union (EU)
and the Southern African
Development Community
(SADC) effective since
February 1 this year,
previously excluded South
African fish and seafood
products can now enter the
lucrative European market
duty-free and quota-free,
according to Massimo de
Luca, head of trade and
economics at the European
Union Delegation to South
Africa.
Speaking at a business
briefing arranged by the
Johannesburg Chamber of
Commerce and Industry
(JCCI) last week around
the benefits of the EPA, De
Luca pointed out that 50%
of all South Africa’s fish
exports – particularly hake
– were currently earmarked
for Europe.
“But there is huge
potential for further
growth under the auspices
of the EPA, particularly
for agro-processed and
specialised sea food
products from South Africa
– especially abalone,” he
said.
While abalone is found in
abundance in cold waters
off Japan, Australia, New
Zealand and the west coast
of the United States, the
South African product is
considered to be of a much
higher standard globally,”
said De Luca, adding that
the country was the third
largest supplier of farmed
abalone in the world,
producing an estimated
1 450 metric tonnes
annually.
Futuregrowth Asset
Management announced
last month that it would
invest US$12.6 million in
a number of South Africa’s
aquaculture products,
including abalone farming.
“Abalone aquaculture
shows significant
long-term growth
prospects with very high
export potential,” said
Futuregrowth investment
analyst, Amrish
Narrandes.
Unfortunately the EU
has reservations about
allowing market access due
to a small trace of metals
found in fresh abalone
along South Africa’s
coastline. Furthermore, an
insatiable demand from
Asia for the exotic shellfish
has seen a rise in abalone
poaching, with Reuters
news agency reporting that
poachers can get around
US$18.86 per kilogram for
fresh abalone when dealing
with less scrupulous market
traders.
“The EU would expect any
seafood product supplied
to be tracked to a legally
licensed producer,” De
Luca commented. The EU’s
abalone audit in March will
reveal whether the European
Commission’s concerns have
been allayed.
According to de Luca, the
EU represents the largest
single fish market in the
world, taking the lion’s share
(R5 billion) of SA’s current
R8-billion export revenue.