COULD this year see Premier Fishing, which is controlled by empowerment group Sekunjalo, upscale its operations markedly.

The group – despite showing a sturdy R16m operating profit in the last financial year – has always been considered mainly a lobster player.

But CBN notes in Sekunjalo’s latest annual report a determination to push its aquaculture operation.

Sekunjalo CEO Khalid Abdullah said Marine Growers, Premier Fishing’s abalone division, had embarked on an environmental impact assessment as part of its strategy to expand the farm after it acquired additional land.

He said this additional land could increase the capacity of the current Gansbaai farm to approximately 300 tons.

Not too much is known about the abalone farming operation. Abdullah simply noted the operation delivered good results, and that the performance of the division has consistently improved, driven by demand for local abalone in the Far East.

He also added: “Our decision to expand this business is one of the key strategies of the group.”

Other initiatives that might net additional revenue in the medium term include Premier Fishing’s plans to boost its fledgling pelagic division by re-opening its Saldanha Bay plant (in a joint venture with Oceana).

Abdullah says the environmental impact analysis (EIA) process at the Saldanha Bay plant is progressing well. “This will strategically position the pelagic division for further growth in the medium to long term as well as creating jobs in the west coast community”.

Meanwhile rumours around the quays in Cape Town is that Premier Fishing may be contemplating a similar venture in Hout Bay (this time in partnership with the Industrial Development Corporation).

Perhaps more intriguing is Abdullah’s contention that the success of the fishing business positions it well for organic, acquisitive and strategic growth initiatives.

On the acquisition front, there’s bound to be speculation around whether Premier fishing might look at the Lusitania lobster business. But if Oceana were shot down by competition commission concerns , then its seems unlikely Premier Fishing – which already has a big slice of the south coast lobster market – will be given a green light to go for Lusitania.

A far more likely deal could see Premier Fishing dropping a line for Foodcorp’s fishing interests now that its mainstay food brands business looks set to be sold to Rainbow Chickens.

The biggest impediment to such a deal, though, would be the price tag Foodcorp puts on the fishing business. CBN’s not sure Premier Fishing – or its parent Sekunjalo – will be keen to fork out the R500m to R600m price that has been bandied about in recent years.