IRVIN & JOHNSON LTD

ABALONE AQUACULTURE- A LONG ADVENTURE

Deidre Du Toit

Norway Science Week

AVI LIMITED , a consumer brand company listed on the JSE, is the parent company to I&J

AVI’s extensive brand portfolio includes more than 50 brands which are leaders in their field and best-loved brands.

Brands:

Beverages: Five Roses, Freshpak, House of Coffees, Frisco, Koffiehuis and Ellis Brown

Biscuits: Bakers, Pyotts, Baumann’s, Willards and Provita

Frozen Food: I&J

Personal care: Yardley, Lentheric

Fashion brands: Spitz, Green Cross, Carvella, Lacoste and many other

ANGLOVAAL INDUSTRIES

Cape Hake in a Global Context (Tons)

90 000 000

10 000 000

1 000 000

Global Fish Production

Whitefish

Hake

300 000 Cape Hake Cape Hake contributes 3% to

Total Global Whitefish Production

Exports to > 25 Countries

IRVIN & JOHNSON VERTICAL INTERGRATION

Founded in 1910 – Cape Hake quota holder • 8 Wetfish Vessels • 3 Freezer Vessels • Continuous to train and develop experienced fishing crews

Two processing facilities Total Capacity of 44 000 mt

Value of the SA Cape Hake market

>50% contribution to value of SA commercial fisheries

>R5.4bn annual sales

R3.5bn export earnings

12 000 jobs created overall by vertically integrated model 6 700

people employed by Cape Hake industry

40% previously disadvantaged females

>1 600 direct employees

REGION 2014-2015 (MT)

China 115 397

Korea 10 000

South Africa 1 400

Chile 700

Australia 900

USA ( Incl. Hawaii) 362

Japan ( seeds) 200

Taiwan 171

New Zealand 100

Mexico 419

Europe 15

Thailand 8

Philippines 4

TOTAL 129 676

World Abalone Aquaculture production

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Geographical location and indicators

• 200 Km South East of Cape Town. • Zoned as Agriculture I • 8 Ha used for production • Key decisive factors to consider when starting an aquaculture

operation include: Water source - Energetic Coastline - quality water Feed security - Abundance of Kelp beds, artificial feed supply Distance from other farms, minimize associate Biosecurity risks Correct elevation from sea level, header tanks gravity flow, energy

efficiency Favourable water Temperatures Close proximity for distribution

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1980’s:

Historically I&J was a rights holder of wild caught abalone. It lost its right due to smaller TAC’s allocated to previous disadvantaged fisherman. In anticipation of the decline in wild populations due to poaching, I&J sought to purchase the Klipfonteyn Farm ( now known as Danger Point)

Size of the property 278 Ha, only farm on 8 hectares

1988:

First excavations and buildings erected

Number of employees: 4

TIMELINE AND HISTORY

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First employees living in caravans on-site

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Wooden houses act as hatchery and portable pools for stocking spat

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1988: Excavation of land and erecting first buildings

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1988 - First excavations and

tanks

•Employees in full-time positions: 4

2000-First commercial

export of product

•Hard work and dedication, delivers export only after twelve years’ investment

2005 – Export 105 t

2011 -Expansion: 220 t- 300 t

•Employment growth from 4 to 96 full time employees

2015 – Expansion 312 – 362 tons,

ASC certified

2015-2017 500– Expansion to 500

tons

•Employees in full-time employment: 180

CONTINIOUS GROWTH

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CURRENT FARM

VALUE CHAIN

PROCESSED at Walker Bay Canners for Canned and Dried Markets

GROW TO MARKET SIZE

SUBJECTED TO FARMING PROCEDURES AND PROTOCOLS

GRADED OUT TO GROW ON

WEANING ( Internal and External)

NURSERY : Juveniles

SETTLEMENT of Larvae

INDUCTION OF BROOD STOCK

HATCHERY: On-site

FOOD SAFETY, NRCS REQUIREMENTS AND BIOSECURITY

With a corporate background and support from the parent company, strict standard operating procedures are followed and adhered to by our company to comply to World standards such as

Compulsory specifications: The processing facilities and persons handling and processing

particular food products Quality and composition Packaging and labeling

The minimum requirements of the Compulsory Specification for these food

products are based on: Good Manufacturing- and Good Hygiene Practices (GMP and GHP) and by

applying in addition Food Safety Management Food Safety Management Systems based on HACCP

Standards and Guidelines set out by CODEX Routine testing of DSP, PSP Toxins, E-coli , heavy metals HACCP and HYGIENE manual Biosecurity Policies and Procedures

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South Africa is lucky to have a premium specie which is superior to other abalone species. Its renowned marketable properties has ensured discerning customers world-wide. The brand should be protected at all times.

Products include Live, Dried and Canned Abalone

PRODUCT RANGE

Taking the lead by becoming the first MSC certified hake fishery in 2004, and the first Abalone Farm in the African continent to be ASC Certified, we continue to protect and preserve our oceans.

ASC standards was only recently created ( 2012) and I&J pursued getting certified as part of their sustainability commitment. Since then there is a growing awareness by Asian customers purchasing sustainable produce. Certification process focus on the sustainability of the operation and its influence on the environment.

Key indicators include:

1. Complying with applicable legal regulations and requirements

2. Avoid significant effects on biodiversity

3. Avoid adverse effects on natural genetic diversity

4. Manage disease and pest in environmentally friendly way

5. Use resources efficiently

6. Be a good neighbour and conscientious coastal citizen

7. Develop farms in socially and culturally responsible manner

SUSTAINABILITY AND

CERTIFICATION

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I&J contributes 1% of our pre-tax profit every year, we donate fish and our people give freely in their time and effort to support causes that make our world & community a better place to live.

Current sponsorships include:

CORPORATE SOCIAL RESPONSIBILITY

THANK YOU