Chamwe Kaira
Sustainability concerns persist in Namibia’s horse mackerel industry, the Oceana Group has said. Cabinet reduced the horse mackerel total allowable catch (TAC) to 208 000 metric tonnes for the 2025 season, down from 270 000 metric tonnes.
Oceana said Namibian horse mackerel vessels operated with similar fishing days and catch rates compared to last year.
The company recorded higher profitability due to lower fuel costs and a 12% increase in average US dollar sales prices driven by strong demand for affordable protein.
“Concerns persist about the sustainability of the framework for the horse mackerel industry in Namibia. Total horse mackerel sales volumes increased by 11% to 42 768 tonnes (2024: 38 711 tonnes),” the company said.
The group reported a 58% increase in operating profit in its Africa businesses for the year ending 30 September, supported by improvements across most indicators.
Revenue and operating profit, however, fell due to lower US dollar fish oil prices, which dropped by half from the record levels of the previous year.
Oceana said the Desert Diamond fished in Namibian waters for most of the first half before returning to South Africa, where it continued to experience inconsistent horse mackerel catch rates.
“Catch rates did show significant and consistent improvement in September, although fishing operations were confined to a small area. Compared to the significant loss incurred in the previous year, when mechanical failure kept the vessel docked for a substantial part of the year, the SA horse mackerel business managed to break even, although it remained below optimal performance.”
Lucky Star Foods recorded steady performance despite pressure on consumer spending. Both the fishmeal and fish oil businesses in South Africa and the United States achieved higher catches, which increased sales volumes.
Revenue decreased by 0.7% to N$10 billion, with strong sales volumes and firm pricing for wild-caught seafood offset by lower fish oil prices. Gross profit margin fell to 27.8% from 31.8%. Operating profit dropped by 23.2% to N$1.2 billion. The effective tax rate increased to 25% as Africa operations contributed a higher share of group earnings, with Namibia and South Africa attracting higher tax rates.
Profit after tax fell by 35% to N$724 million due to weaker performances in the fishmeal and fish oil segments, higher interest expenses and a higher tax rate.
The group declared a final dividend of 175 cents per share, bringing the total dividend for the year to 285 cents, down 42.4% from 495 cents in 2024.
“Lucky Star Foods will build on its strong brand and distribution network to continue to expand its market presence in South Africa and cross-border regions, capitalise on the growing demand for affordable protein and pursue opportunities in adjacent food categories.”
Caption
The horse mackerel total allowable catch (TAC) was set at 208 000 metric tonnes for the 2025 season.
