Cape Town, South Africa-based Sea Harvest Corporation, a subsidiary of seafood company Sea Harvest Group, has announced the three-year extension of its supply agreement with two related parties – Vuna Fishing Company and SeaVuna Fishing Company – for the exclusive right to purchase hake and related fish products.
SeaVuna Fishing Company is a wholly owned subsidiary of Vuna Fishing Company, which is a joint venture of Brimstone Investment Corporation. The supply agreement stipulates that fish caught by Vuna Fishing Company and SeaVuna will be marketed by Sea Harvest Corporation.
“The duration of the supply agreement has been extended and Sea Harvest will continue to purchase, from the Vuna Companies, the hake and related fish products that they produce, for a further period of three years from 1 January, 2023,” Sea Harvest Group said.
For the six months ended 30 June, 2022, Sea Harvest purchased fish from SeaVuna worth ZAR 134.3 million (USD 7.7 million, EUR 7.2 million), a decline from the ZAR 137.2 million (USD 7.9 million, EUR 7.4 million) it purchased in a similar a similar period in 2021.
Vuna, is a Mossel Bay, South Africa-based integrated fishing business in which Brimstone holds a 49.8 percent stake through its subsidiary Vuna Fishing Group. The company procures and supplies hake, sole, monkfish, and kingklip, as well as processing and packing the seafood products.
The supply agreement between Sea Harvest and the Vuna companies has been in place since 1 January, 2017, and was initially scheduled to terminate on 31 December, 2022.
“Sea Harvest and the Vuna Companies have concluded an addendum to the supply agreement, in terms of which the duration of the supply agreement will be extended and Sea Harvest will continue to purchase hake and related fish products from the Vuna Companies,” Sea Harvest said.
The parties have the option to extend the supply agreement yet again for a further period of three years, commencing on 1 January, 2026.
Sea Harvest’s purchases from the Vuna companies is capped at ZAR 954 million (USD 53.7 million, EUR 51.6 million), an amount that is less than 30 percent of the company’s market capitalization.
“The supply agreement is an important source of product for Sea Harvest, and accordingly, the rationale for concluding the extension agreement is to provide continuity to Sea Harvest and to ensure security of supply,” Sea Harvest said.
Photo courtesy of Sea Harvest
