OYSTER FARMING IN NAMIBIA: A SUCCESS STORY TO GREATER FOOD SECURITY
Namibian mariculture is currently expanding significantly, primarily because international markets for oysters are being opened up, particularly in Asia. Up till now Namibia's main mariculture species has been Pacific oysters, and its main market South Africa. Only having one key market stifled production and Namibia's mariculture industry remained small until recently. The industry started making international buyer contacts in South East Asia, through business trips, as a foundation for starting their production operations around the beginning of 2006. They obtained such large international orders that several companies had to cooperate in an attempt to meet demand. There is a real opportunity to expand production for other Namibian oyster companies by establishing good market contacts internationally. This involves market research, visits to international trade shows, and visits to international clients to cement relationships and meet client product specification requirements.
Most products at the moment are shipped live. Oysters, fresh in the half-shell are sold to cruise liners when they come alongside at the Port of Walvis Bay. There is some direct selling by growers to restaurants, but this involves a lot of work for small orders, so generally it is easier to sell to Namibian wholesalers. Some sales also occur to supermarkets and local tour operators. Whole frozen oysters are currently sold to the distributor Blue Marine Interfish, based in Windhoek. They distribute them domestically and in the SADC market, where there is good demand for this product. The Namibian market for oysters is very small, but it can be expanded through more aggressive marketing and by greater availability. To some extent, it can also be promoted through tourism. If we assume that that present domestic oyster consumption is approx. 30 tonnes per year, and we assume that marketing initiatives are made, we estimate that future domestic consumption will be 50 - 60 tonnes per year.
The international market for oysters may appear to be huge. Global production of oysters is presently more than 4.5 million tonnes, of which most is produced and consumed in China. However, only about 50,000 tonnes enter the international markets annually. In 2005, total global export trade in oysters amounted to some 50,000 tonnes worth US$ 166 million. In other words, most of the oysters produced in for example China appears to be consumed domestically. During the period from 1992 through 1997 there was stagnation in international trade, and unit prices fell.
Pacific oysters are sold regionally to South Africa as a live product. Currently efforts to open overseas markets for live, fresh and frozen oysters to Hong Kong, Beijing and Singapore as well as the USA are being made. Singapore acts as a logistical trade hub for onward sale by Singapore distributors into other parts of Asia. Europe and the USA are expected to open up as markets when the Namibian Shellfish Sanitation Programme is operational and EU accredited. The bulk has traditionally been sold to wholesalers in Johannesburg, and smaller amounts to wholesalers in Cape Town, who then sell to restaurants and hotels. Some product is also sold to oyster farms in South Africa for on growing. Present indications from markets in South East Asia are that this market would be able and willing to absorb the entire production in Namibia, even at a production volume of 3,000 - 4,000 tonnes a year.
Based on FAO figures, Namibian oyster production currently amount to less than 0.01% of world production. Consequently, if they become popular overseas, demand will well outstrip supply. A market strategy needs to be devised to maximize the value of Namibia's oysters, and to expand production within the context of niche marketing, selling to high-end buyers who are willing to pay a premium for the product. A goal could be to make Namibian oysters "the most expensive oysters in the world". It is clear from a „value‟ perspective, and given the taste and texture of Namibian oysters, that the opportunity for Namibian oyster growers is with whole „live‟, and fresh or frozen half shell oysters. These are the higher value segments, and are considerably more expensive than the high volume canned and processed forms such as those that come from Korea. A good way to introduce a product at the high-end of the market is via expensive hotels and restaurants. Many countries have learnt the success formula of promotions through top hotels and restaurants. More broadly, a „total industry‟ commitment to an agreed set of verifiable standards that could be communicated via joint marketing efforts should be considered by the mariculture sector. For example, the industry could agree to implement „best practice‟ quality control systems together with environmental and resource sustainable farming and harvesting practices that would enable the industry to clearly position itself as a „world class‟ provider of oysters. A „total industry‟ approach, strongly aligned to Namibia's ‟pristine, naturally productive waters‟, will help establish true points of difference with the major oyster buyers Namibia is targeting. This strategy only calls for Namibian oyster exporters to promote, showcase and market in a collective and consistent manner. What is important is to establish and market the „marketable advantages‟ that come with a joint marketing strategy, to ensure that Namibian oyster exporters are able to negotiate from a position of quality, consistency, environmental sustainability, and food safety. This strategy is much more than just jointly funding display space at seafood shows and developing glossy generic brochures. Undertaken properly, it will create points of difference for Namibian oysters in the international arena.