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Lobster market simmering again

30 May 2012

According to Cape Business News (CBN), exports markets for lobster appear to be firming, and the lobster market is starting to simmer nicely again, the latest results from Cape Town-based Premier Fishing suggest. Last month, Premier - a large exporter of lobster - reported a R1.1 million profit for the half-year to end February.

The company also reported a 10% jump in turnover to R76 million on the back of a strong showing from its pelagic interests and south coast lobster.

Khalid Abdullah, CEO of Premier Fishing's holding company Sekunjalo, told CBN that the company capitalised on its strong position in the US, where it holds 60% of the market for SA sourced lobster. He said prices had firmed, and that Premier Fishing was helped by hauling in bigger lobsters. "It's a simple rule," he said, "... the bigger the lobster, the better the price."

Abdullah said while there was pressure on west coast lobster pricing as other companies pursued their quotas aggressively, Premier Fishing was managing its catch rates more consistently. "We have a smaller quota in west coast lobster. Basically we can afford to leave our lobsters in the sea for longer." This, he said, could preclude quality issues like high mortality rates due to soft shells on live lobster orders, CBN reports.

Read the full article on www.cbn.co.za.