Sea Harvest Deep Dive [Part 1]

July 17, 2023
Josh Viljoen
Josh Viljoen

Quite the catch on the JSE?

Company Overview:

Sea Harvest is a leading South African fishing and seafood company that specializes in the production and distribution of frozen fish and value-added seafood products. With a strong presence in local and international markets, the company has a diversified product portfolio and a proven track record of delivering sustainable and profitable growth. Despite facing headwinds from the COVID-19 pandemic and market volatility, Sea Harvest has managed to maintain its market position and financial stability. However, the company is not immune to risks associated with the fishing industry, such as regulatory changes, climate change, and supply chain disruptions.


Industry Overview:

The fishing and seafood industry is a significant contributor to the global economy, with a value chain that extends from fishing and harvesting to processing and distribution. The industry is highly regulated, with strict environmental and sustainability standards, and is subject to geopolitical risks and market fluctuations. The South African fishing industry is an important player in the global seafood market, with a focus on pelagic species, such as hake, mackerel, and pilchards. South Africa's proximity to major fishing grounds and well-developed infrastructure and logistics make it an attractive location for seafood companies.


Business Model:

Sea Harvest operates a vertically integrated business model that includes fishing, processing, and distribution of frozen fish and value-added seafood products. The company owns a fleet of modern fishing vessels that catch hake, as well as other species, which are then processed in its state-of-the-art facilities. Sea Harvest's products are sold under its own brands and private labels, and are distributed to retail and foodservice customers in South Africa and globally. The company also operates a joint venture in Australia, Mareterram, which focuses on the fishing and processing of prawns and scallops.



Sea Harvest faces competition from both domestic and international seafood companies, including Oceana Group Limited, I&J, Simplot, and High Liner Foods. Domestic competitors are focused on the production and distribution of hake, while international competitors have a broader range of products and greater scale. The competitive landscape is dynamic, with competitors vying for market share in a highly regulated and complex industry.


Revenue Streams:

Sea Harvest generates revenue from the sale of frozen fish and value-added seafood products to retail and foodservice customers in South Africa and internationally. The company's product portfolio includes a range of hake products, as well as other species, such as tuna, salmon, and prawns. In addition, Sea Harvest produces value-added products, such as fish cakes, fish fingers, and smoked salmon, which command higher margins.


The company's revenue streams can be broken down into two main categories: South African operations and international operations. Sea Harvest's South African operations accounts for roughly 70% of total revenue, while international operations, which include sales in Europe, Asia, and Africa, account for the remaining 30%. 

Sea Harvest's revenue is influenced by a range of factors, including global demand for seafood, pricing dynamics, currency fluctuations, and supply chain disruptions. The company's diversified product portfolio and geographic footprint help to mitigate some of these risks, while its focus on sustainability and quality help to differentiate its products in the market. Overall, Sea Harvest's revenue streams are well-positioned for long-term growth, driven by increasing global demand for seafood and the company's strategic investments in production capacity and distribution networks.

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