Report. The Canning Dilemma Do or Don’t?

Canners of tinned sardines are having a hard time. Not only have they had to deal with the problem of compromised product this year, but overfishing has taken its toll on the small pelagics fishery resulting in frozen sardines having to be imported at considerable cost. The cost of cans and tomato sauce have also been brought into question. In addition, the COVID-19 pandemic has further added to the problem by straining supply chains. This is the first of two parts to this report.

Once Proudly South African, the small pelagics fishery has had to import frozen sardines from countries such as Morocco and Thailand to avoid declining production. To add insult to injury the basic cost of the tin has risen thanks to a 10% import levy on tin plate. Already there is a 37% levy on imported tomato paste. Yet the price of tinned sardines is one item listed as a basic protein in the government’s food basket.

The overseas canner on the otherhand, has no import levies on cans, paste, or fish. They are not faced with future carbon tax threats and they have access to cheaper labour, water and electricity.

Which is why presently overseas canners can export canned fish products to South Africa cheaper than South Africa can produce the same canned fish products locally.