Oceana Group

Monday, December 22nd, 2014,

Investors

Oceana Group Limited's 2013 Integrated Report provides material information relating to the group's strategy, governance practices and performance for the financial year ended 30 September 2013

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Fishmeal and Fish Oil

Oceana Group

Lucky Star's two fishmeal (reduction) plants are located at St Helena Bay and Hout Bay from where its fleet of vessels operates, targeting industrial fish, particularly anchovy. Fishmeal produced is sold locally and abroad.

Species used: Anchovy (Engraulis encrasicolus), pilchard (Sardinops sagax), redeye herring (Etrumeus whiteheadi), horse mackerel (Trachurus trachurus capensis)

Fishmeal, as a rich source of protein, is a valuable ingredient in animal and aquaculture feed and is also used as a fertilizer. The health benefits of fish oil are well documented and our fish oil is in particular demand given the high Omega-3 component. The fish oil is used in animal and aquaculture feed and also in the pharmaceutical and chemical industries.

More information on fishmeal and fish oil

In excess of 50% of Lucky Star's fishmeal is manufactured to premium protein standards. This is sought by balanced feeds manufacturers to service the growing offshore mariculture and aquaculture industries. Both plants are certified by the regulatory agencies of China, the EU, Australia and Middle Eastern countries to enable fishmeal produced to enter the markets of those countries. Fish oil is a by-product in the manufacture of fishmeal.

Production

The fish is harvested in the clean unpolluted waters of the Benguela Current and Agulhas Current Marine Ecosystems. Harvesting constraint limits are strictly enforced by government authorities employing sustainable fisheries strategies. Small pelagic fish are targeted by the fleet of 18 purse seine vessels and delivered to one of the three geographically strategically placed plants, thereby ensuring maximum freshness of raw material.

One plant employs indirect hot drying technology, one employs steam drying technology and the third has two stage drying consisting of steam and indirect hot air drying, thereby producing low-temperature (LT) product. Meso-pelagic fish are harvested by one of the four midwater trawler factory ships. Product that is not frozen is immediately reduced to fishmeal with steam drying technology.

Certification and quality

There is strict in-house quality control with frequent analysis in our own laboratories ensuring efficient process control. In addition, every batch of fishmeal is also analysed by an independent accredited laboratory according to our customers' requirements. Our products have been tested for dioxin and PCBs and this analysis has confirmed that the levels are extremely low.

The two South African plants have also implemented FEMAS (Feed Materials Assurance Scheme) which is a third party assurance scheme that ensures the principles of Hazard Analysis (HACCP) and Good Manufacturing Practice are adequately applied during the production process. There are rigorous controls at each stage of the supply chain that meet standards currently recognised as international "good practice" and which maintain the safety and specification of the feed ingredients supplied. The two plants have also obtained IFFO Global Standard for Responsible Supply (IFFO-RS) certification (click to view a list of IFFO-RS certified plants). IFFO recognises the importance of responsible sourcing, responsible production and responsible supply practices.