In 1983, an El Niño year, a significant shift in Cape Point, South Africa, winter winds occurred, causing significant increases in upwelling variability in the early to mid-1990s. Further shifts in mean wind conditions and upwelling were detected in the 2000s. These two episodic environmental events, which occurred mainly during the summer months (December to March), have been proposed as the reason for the sudden upsurge in the abundance of small pelagic fish in the southern Benguela in the early 2000s. Environmental factors have been important drivers of ecosystem dynamics, and model simulation studies suggest that changes in the relative availability of mesozooplankton to anchovy and sardine affected increases in the abundance of small pelagic fish in the southern Benguela (RSA 2012a, RSA 2014, Blamey et al. 2015).
Small pelagics such as anchovy (Engraulis encrasicolus) and sardine (Sardinops sagax) are small forage fish that live in surface and near-surface waters over the continental shelf of most of South Africa’s coast. Forage fish are small schooling fish that feed on plankton and occupy a vital place in marine foodwebs. Generally, these species eat herbivorous (phytoplankton) or carnivorous (zooplankton) plankton and are eaten by larger predators that occur higher up in the foodweb. Forage fish therefore play a fundamental role in marine ecosystems by converting energy from lower trophic levels into food for predators at higher trophic levels in the marine environment (Coetzee and Badenhorst 2013). Impacts on small pelagics observed during the past century have had significant economic and ecological effects, such as the closure of two canneries and suspension of fishing activity for six months in 1997, due to the major spatial shift of small pelagics to the south coast (Jarre et al. 2013).
Reform in the fisheries sector after 1994 brought about a reallocation of fishing rights and an examination of how fisheries were managed. For the first time in the history of fisheries management in South Africa, the developmental concerns of social and economic reforms formed part of the rights allocation process. Although fisheries reform has dominated fisheries management debates over the past 20 years, fisheries in South Africa were well managed. The job crises narrative of the industry (threatening that any reduction in rights allocation will directly affect the jobs of fish workers) demonstrated the incompatibilities of the reform process and the achievement of social and economic equity. The environmental crisis narrative indicates that El Niño–related changes in wind conditions, sea surface temperature (SST) and overfishing affect the productivity of small pelagics, fishing possibilities and the distribution of the resource. How to achieve the balance between economic growth, creating and maintaining jobs, protecting the resource and redistributing fishing rights, is one of the biggest challenges facing fisheries managers in South Africa.
In the small pelagics sector, the environmental crisis is intimately linked to the job crisis and reform narratives. Also, the threats to small pelagic fisheries go beyond climate change, resource governance and environmental sustainability to include the social and economic justice issues of reforming the fishing sector. In the context of these threats, this chapter applies the I-ADApT framework (Bundy et al. 2016) to the small pelagics fishery in the greater Saldanha Bay area, southern Benguela. It provides a brief, descriptive case study in relation to geographical area; species; and the main impacts on the natural, social and governance systems. The chapter moves to the responses of the social and governance system to the natural system and provides a reflection on the responses.
The greater Saldanha Bay area is situated in the southern Benguela region, which extends from a permanent upwelling cell near Lüderitz in Namibia, around the coast of South Africa to East London, (~28 °E), and includes the Agulhas Bank (Figure 14.1). It extends offshore to the 500-m isobath, covering 220,000 km2. The physical environment in the southern Benguela is characterized by pulsed seasonal upwelling due to prevailing southeasterly winds during the summer, which results in high productivity and relatively large exploitable fish biomass typical of upwelling systems. The southern Benguela is a temperate upwelling system and supports a wide variety of commercially exploited fish species and exhibits substantial variability in both oceanographic and biological components (Figure 14.1).
The economic boom for purse-seining started along the underdeveloped west coast of South Africa in the late 1930s and significantly increased with the post–Second World War demand for canned fish, technological advances and high unemployment rates (Crawford 1981). This sector provided increased employment opportunities for many locals in the area (Jarre et al. 2013). From the 1950s to the 1980s, during the closed seasons between August and December, workers engaged in alternative livelihoods, that is, fishing for west coast rock lobster and handline as a form of subsistence (Jarre et al. 2013).
Small pelagics dominate the fish community. Others species such as red eye round herring (Eriumeus whiteheadii), horse mackerel (Trachurus trachurus) and lantern and light fish are fished, but are underutilized (RSA 2012a, RSA 2014). Cape hakes (Merluccius capensis and M. paradoxus) form the basis of the largest commercial fisheries in the southern Benguela (Van der Lingen et al. 2006). Sardine (also known as pilchard) catches dominated to the extent that 60 percent to 90 percent of the pelagic industry in South Africa consisted of sardine and anchovy. The ratio between sardine and anchovy landings has, however, fluctuated over the decades. Two collapses of the sardine fishery have occurred: in the early 1960s due to overfishing and in the early 2000s due to the regime shift of sardine to the southern Benguela coast (Fairweather et al. 2006, Coetzee et al. 2008). As a result, fishermen started using purse-seines with a smaller mesh size in order to target anchovy (De Oliveira 2002), peaking in the mid-1980s at around 600,000 tons and then collapsing thereafter. Anchovy landings reached a low of 40,000 tons in 1996 (Sauer et al. 2003). However, 2001 and 2002 were boom years in the pelagic industry as the total annual catch reached over 535,000 tons, due to an increase in both sardine and anchovy abundance and catches. The sardine catch amounted to 261,000 tons in 2002, but this was followed by a sardine stock collapse (Van der Lingen et al. 2009, Coetzee et al. 2008, Blamey et al. 2015).
Since then, both stocks have declined and the 2008 Total Allowable Catches (TAC) were reduced to 90,000 tons for sardine and 247,500 tons for anchovy (Moolla and Kleinschmidt 2008). In the last few years, less than 50 percent of the anchovy TAC was caught by rights holders from South African waters (RSA 2012a, De Goede 2013).
The small pelagic fishery is a capital-intensive sector based on a rights-based fisheries management system with associated by-catch for red eye round herring and cape horse mackerel. Most of the small pelagic fishery infrastructure (the fishing fleet and major canning and fishmeal factories) is situated on the west coast in the greater Saldanha Bay, St Helena Bay and Velddrif areas. Since the 1940s, canning and fishmeal have been part of this sector’s operations, and six canning and processing companies and 15 packing entities have been operational. Coastal communities have settled in and around this area, largely based on employment derived from the fishing industry (Coetzee and Badenhorst 2013, Hara et al. 2014).
The sector employs more than 10,000 people: 4,500 full-time workers, 2,500 seasonal workers (mainly women), 700 fishermen (contracted by vessel owners) and 2,400 indirect jobs. Major employers specializing in pelagics include Oceana and Southern Seas (Sauer et al. 2003, Van Zyl et al. 2008). The high volume, low profit and large fluctuations directly influence the employment security of workers (Raakjaer Nielson and Hara 2006). In 2015 to 2016, job numbers were down, with 4,000 available only for seasonal employment for six months of the year and only one company providing short-term employment through learnership programs. Many other workers resorted to interim relief permits allocated to west coast rock lobster and linefish.
The small pelagic fishery is South Africa’s second most economically valuable fishery after hake: the 2006 value of the fishery was R1,150 million and contributed 23 percent to the total value of fish landings in South Africa (Warman 2007). Adult sardine are canned or frozen for human consumption, whereas juveniles and anchovy, red eye round herring and horse mackerel are reduced to fishmeal, fish oil, fish paste, pet food and bait (Hara 2013, Hara et al. 2014, Jarre et al. 2013, Isaacs and Hara 2015).
Saldanha Bay is the largest and one of few sheltered bays along South Africa’s west coast. The combination of shelter and the nutrient-rich Benguela Current makes Saldanha a prime location for bivalve aquaculture. Both mussel and oyster production in Saldanha have some of the highest growth rates in the world (Haupt et al. 2010, Pitcher and Calder 1998). Job opportunities in the Saldanha Bay area for fishers are in aquaculture, maintenance (cleaning and gardening services) for the tourism sector, coal-mining sector and fishing on recreational permits for linefish and west coast rock lobster. Most of the jobs available are in maintenance and cleaning, as many do not have the technical skills required for aquaculture and coal mining.
Over the past two decades, the distribution of sardine and anchovy underwent an eastward shift during the late 1990s (Van der Lingen et al. 2002, Fairweather et al. 2006). Adult anchovy shifted their distribution eastward from being predominantly located on the west coast to the east of Cape Agulhas. The shift occurred abruptly in 1996 when the anchovy population was at its lowest recorded level. Monthly SST was analyzed, revealing a shift in the cross-shelf SST gradient at the time that anchovy adult shifted their distribution, suggesting that the anchovy shift was linked to changes in the environment. The cooling of the coastal domain of the east of Cape Agulhas due to increased coastal upwelling would have resulted in enhanced productivity and improved feeding conditions (Figure 14.1).
The sardine shift happened more gradually. The bulk of sardine biomass was located west of the Agulhas bank in the 1980s and 1990s. In the late 1990s, biomass began to increase to the east of the Agulhas bank, and the pattern has persisted since. The gradual change in sardine distribution has been accompanied by episodic changes in the location of sardine spawning towards the south coast spawning east coast of Cape Agulhas (Figure 14.1). This resulted in the significant spatial mismatch between fishing effort and sardine abundance over the past decade. The eastward shift of sardine was accompanied by a sharp decline in sardine biomass from 4.5 million tons in 2002 to less than 400,000 in 2008 and 100,000 in 2012.
The eastward shift in sardine was followed by poor recruitment. An environmental trigger may have initiated the shift, but such a trigger has not been found. In 2007 and 2008, substantial numbers of sardine eggs were observed west of Cape Agulhas, suggesting a shift back of spawning and a move back to the west of Cape Agulhas (Fairweather et al. 2006, Blamey et al. 2010).
The combination of problems related to food, competition and density dependence is believed to lead to lower growth rates of anchovy and sardine because it affects their fertility (egg production) and larval food availability. More specifically, industry representatives suggest that during summer, water temperatures often remain high for an extended period, arising from limited upwelling, which ultimately leads to starvation of recruits (Hara et al. 2014).
The guiding objectives in managing the small pelagic fisheries are based on reforming rights allocation through equitable redistribution of access rights. This allocation needs to be based on sustainable harvesting and should not harm the marine ecosystem.
Post-apartheid reform took place by broadening access rights to new rights holders (individuals and companies) through state intervention (external transformation). The state policy of black economic empowerment (BEE) in established companies informs internal company transformation, aiming to change their race and gender profile. This could be achieved by offering ownership shares to historically disadvantaged empowerment groups and/or labor unions and transferring technical and managerial skills to historically disadvantaged employees within established companies. Shareholder schemes for workers were another way of implementing the reforms (Isaacs et al. 2007).
Although both external and internal transformation were intended to bring about redistribution, the shift in emphasis from external to internal transformation under the macro-economic policy of growth, employment and redistribution complicated the reform process, as the two approaches were not necessarily intended to achieve similar objectives (Isaacs et al. 2007).
As Roy Bross, then chairperson of the South African Deep Sea Trawling Industry Association, commented in Isaacs and Hara (2015):
Transformation [politics] has created a de-concentration of rights to accommodate many new entrants into the fishing industry to achieve equity, and economics [the Individual Transferable Quota (ITQ) system] has created a concentration of rights holders. This happened from 1991 with annual allocations to 2006 with long-term rights allocation and will happen again with the next rights allocation process.
(personal communication, June 2012)
Is this because the market system of ITQs cannot allocate rights equitably? Post-apartheid fisheries policy favored industry domination in continuing with the use of ITQs and BEE to allocate rights and at the same time expand the number of quota holders, thereby broadening access.
In practice, these two mechanisms were incompatible from the start: ITQs limit the number of quota holders, whereas BEE is designed to expand the number of rights holders. In the small pelagics sector some of the incompatibilities led to conflicts related particularly to representation on the associations; for example, big fishing companies, processors and rights holders are represented on the South African Small Pelagic Association (SAPFIA) that makes up 32 percent of rights holders. SAPFIA’s purpose is to enable a business environment in which members can perform competitively and profitably. The smaller rights holders (24 percent) are either represented by the Eastern Cape Pelagic Association (ECPA) or the West Coast Pelagic Association (WCPA). The remaining 44 percent of rights holders, mainly new entrants, are not represented by any small pelagic association. FishSA was established in 2012 to represent the broader associations, but they have struggled to give the smaller rights holders voice or representation.
The west coast small pelagic fishery sector has experienced severe strain since 1997, when the season was closed for six months due to low small pelagics biomass. The pressure on the sector also affected secondary operations that depend on the sector, such as processing. Large quantities of fish caught off the south coast had to be transported overland to the processing factories on the west coast. Skippers strongly believe that variability and geographic shift are key drivers of fishing pressure on the west coast (Hara 2013). For example, Saldanha Bay Canning, a sardine and pilchard canning factory, and Oceana’s fishmeal factory closed down in the early 1990s (Clark et al. 2009).
Hara has followed the new entrants to the small pelagic section since the late 1990s with the shift in the contractual structure, in which independent boat owners and skippers are contracted to firms investing in boats, with crews being paid a commission based on the landings. Contracts were generally renewed on an annual basis, and with the shift to greater efficiency and streamlining, contracts have become more seasonal in line with fish availability. Boat-owning firms have no contractual obligations to crews and are thus shielded from labor disputes. The shift to vertical integration in the sector has resulted in many smaller independent operations going out of business (Raakjaer Nielsen and Hara 2006, Jarre et al. 2013).
The number of operational fishing vessels in the sector has declined by nearly one-third in the past decade, mainly as a result of most independent vessel owners leaving the industry. Also, factories have bought new and bigger boats following the assurance of being granted medium- and long-term rights. Further, owners have replaced old wooden vessels with larger, more fuel-efficient steel or fiberglass vessels with refrigeration systems. The maximum number of vessels allowed in the sector is about 100 (RSA 2005). The number of vessels operating at any given time is largely influenced by the annual quota size; for example, only 71 vessels were declared operational for the 2011 season, based on permits issued. The use of fewer, more efficient, mechanized vessels has resulted in job losses for skippers and crew (Hara 2013). Smaller operators off the Gansbaai coast have been pushed out by larger companies, because when there is an oversupply, large companies prioritize their own vessels over contracted vessels (Hara 2013, Hara et al. 2014). Increased competition for fish and crew employment to land an increased quantity and quality of catch has led to the closing of fishing areas, high grading and dumping (Hara 2013).
Vertically integrated operations with increased vessel ownership and upgrades to factories have strengthened the fishing companies’ negotiating position versus skippers and crew, independent vessel owners and independent quota holders. In particular, processing rights give factories greater leverage for negotiating delivered catch prices. The concentration of smaller rights holders or bundling of rights specifically due to the unviable nature of their allocations has obliged them to enter into catching, processing and marketing agreements with established companies.
The increased efficiency drive in the industry has brought about a 50 percent reduction in working hours in processing and canning factories, resulting in further job losses. The traditional three shifts of 8 hours have decreased to only one 12-hour shift per day. A new canning factory was constructed in 2007 (Jarre et al. 2013) because fish caught off Cape Agulhas were still processed in Saldanha, as many of the larger companies invested in bigger freezer vessels. Although the factories were saved from closure, the efficiency drive resulted in decreased jobs.
In the small pelagic sector, the governance systems guiding the management of the resource include Operational Management Plans (OMPs), Ecosystem Approach to Fisheries (EAF) and co-management. South Africa’s small pelagic fishery has been managed using OMPs since 1991, which sets annual TAC for anchovy and sardines.
South Africa introduced an EAF in 2002 (Shannon et al. 2004, RSA 2005), and the small pelagic fishery is the first in South Africa to explore the feasibility of an EAF. A criticism of the new EAF approach has included the difficulty of finding the balance between the resources and social and economic factors of the sector and the governance structures (Paterson et al. 2010, Nyikahadzoi et al. 2010, Hara 2013).
Co-management in the small pelagics sector is a government initiative where the Department of Fisheries, under the Ministry of Agriculture, Forestry and Fisheries (RSA), Fisheries Department scientists, university scientists, government officials, NGO (WWF) and industry associations are represented on the Scientific Working Group and Resource Management Working Group. The majority of stakeholders have structured and regular contact with each other, and the main goals of these working groups are to discuss scientific and management issues for recommendation for TAC, rights allocation and operational management issues. Although the views and inputs of stakeholders are advisory, they are privy to the key allocation directions for the following year. The general view among most rights holders and fishers is that government is highly responsive to their views and interests, though they might not get their way all the time. However, they also often feel marginalized, and social science inputs are not considered (Hara pers. comm. University of Western Cape, South Africa 2014).
OMP processes, which underpin the scientific recommendations each year, limit the catches of small pelagics within a TAC and total allowable bycatch (TAB). The use of a precautionary upper catch limit is applied when the actual catch and impact on any one stock are uncertain (Fairweather et al. 2006). The 2014 TACs and TABs for the small pelagic fishery set limitations on bycatch and size (juveniles and adults). The OMP for this sector is under review, performance reviews are conducted on the rights holders and a state of fisheries report is released biannually.
Bycatch management, temporary area closures, island perimeter closures and marine protected areas were all introduced in response to the decline in fish stocks, yet close monitoring of these management regulations and fishing vessel activity was not implemented. The challenge for policymakers and fisheries managers is to balance the ecological importance of small pelagics (i.e. leaving enough fish for the consumption requirements of their predators) against their economic importance (Japp 2014).
The November 2013 RSA acoustic survey produced an adult sardine biomass estimate of 851,553 tons, most of which (651,582 tons) was concentrated between Cape Point and Cape Agulhas (Figure 14.1). These estimates are lower than the long-term (1984–2012) biomass average of 999,000 tons, but considerably higher than the 2012 biomass estimate of 345,000 tons. The survey estimates for anchovy were more positive. Spawner biomass was estimated at around 5.17 million tons, substantially higher than recent years and the highest estimate since 2001 (Mhlongo et al. 2013). The bulk of the anchovy spawner biomass continues to be found to the east of Cape Agulhas, with 30 percent of the total biomass to the west of Cape Agulhas. This suggests that the reported eastward shift of the anchovy biomass and the mechanisms for maintaining the shifts are still present. About 54 percent (<200,000 tons) of the sardine biomass was found in the area to the west of Cape Agulhas and the remaining 46 percent on the east of Cape Agulhas. This suggests that the recent observed ‘reversal’ of the eastward shift in the distribution of sardine persists in certain years.
In reflecting on the type of social and governance responses to the key threats of climate variability, overfishing and achieving equity in the sector, one could conclude that the success of the responses was varied. The mandate of the South African fisheries department is to manage the fisheries sustainably, ensure equity and stability in the industry to secure jobs and contribute to the food security needs of the workers and the country. The governance response is to manage the small pelagics through OMPs and EAFs, while ensuring social and economic transformation in the pelagic sector.
The social response to major spatial shifts in species mainly focused on keeping the factories open on the west coast to secure the jobs of the workers. Although a few companies closed, one opened in Mossel Bay to accommodate the large volumes of landings in the area. Although the sector might have increased operational efficiency and improved profitability, the impact on low-level workers has been negative. Large businesses ensured economic viability through the mechanization of vessels and canning operations, and although closures were prevented, job losses were not. The use of mechanized vessels resulted in the loss of jobs for skippers, crew and processing workers (Hara 2013). The smaller operators off the Gansbaai coast were outcompeted by large companies (Hara et al. 2014). Because women are mainly employed as fish workers, the shift in species negatively affected their work.
Governance response to the job losses was to relax regulations on sardine imports to maintain jobs in the sector; hence large volumes of sardines from Morocco are now processed in factories in the Saldanha Bay area to prevent further closure. The Fisheries Department lifted some permit restrictions on vessel owners and companies to land fish on the south coast and transport them to the west coast. The undercatching of anchovy is a concern within the Department of Agriculture, Forestry and Fisheries, as there is a need for food security and job creation in this sector. To mitigate this, one company experimented with a new process of salting, curing and filleting anchovy for human consumption. Filleting anchovy is labor intensive and therefore has job-creation potential. However, the company decided not to continue as profitability would be low due to the labor costs (De Goede 2013). Ultimately, mechanization of anchovy production for animal feed and fish oil seems to be the choice of many fishing companies.
Transformations within established companies were cosmetic, with politically aligned black leaders rewarded with top managerial positions to ensure the continued allocation of rights and continued privileges for white women in top positions to fill the gender complement of transformation. Skippers, crewmembers, independent vessel owners and independent quota holders believe that the new rights holding system has greatly disadvantaged them. Allocating unviable rights to many small rights holders without the necessary infrastructure was one of these political decisions. It is also clear that the small pelagic industry, mainly composed of vertically integrated companies, soon used the space to bundle the rights of small rights holders and to enter into catching agreements.
Sardine stocks are currently at a low level after several years of poor recruitment, whereas anchovy stocks are currently high, but undercatches have been reported since 2000 (53 percent in 2000 and only 17 percent in 2013). Scientists and the industry have proposed that the latter is due to the associated bycatch of juvenile sardine, reduced processing capacity in the light of increasingly stringent environmental regulations governing factory emissions and effluent discharge and severe winter weather and sea conditions.
The eastward shift of anchovy persists, but sardine appears to be more abundant in the west again (RSA 2014). Scientists, industry and the fisheries department agree on the ecological and economic importance of small pelagic fish stock for human consumption, especially the canning sector’s contribution to food security and the nutrition of the many poor households in South Africa. Therefore, certain management tools have been put in place to mitigate the major shift from the west to south coast.
The pelagic industry companies are in a more powerful position than skippers, crew and fish workers. The outcome of the competition commission in 2012 on price fixing between companies is a testimony of their position (RSA 2012b). This can also be seen in the efficiency drive of the bundling of rights, mechanization of vessels and the impact on employment in the communities. Overfishing was a driver in the early 1960s with the collapse of the sardine stock and undercatching of the anchovy stock in 2013. Despite this, the overall health of the fishery seems to be manageable from an ecological and economic perspective. However, job losses continue to happen among processing workers, crew and skippers.
The application of the I-ADApT framework helps us understand the complex nature of the impact of overfishing, climate variability and transformation of the small pelagics species according to natural, social and governance systems. The political drivers for transforming the fishing sector are linked to the mandate of the government, and responses from the industry have been cosmetic.
In the natural system, a key message in the environmental crisis narrative is the importance of forage fish to the ecosystem. In the social system, the job crisis narrative was used by the big companies in the Saldanha Bay area to maintain their quota allocation, and with the spatial shift the companies concentrated their operations to improve efficiency, which resulted in many job losses and short-term employment losses. The small pelagic species seem to be resilient, yet sensitive to overfishing and climate variability. The governance responses of OMPs and EAF mainly focused on the health of the natural system, and the social responses mainly focused on jobs and profits. The level of social and governance responses mainly speaks to the short-term effects and appears to miss the interactions between the systems and the impacts on the lives and livelihoods of crew and fish workers.
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