Title: Maximizing economic returns from the hake fishery in South Africa.

The future of capture fisheries is currently under threat due to declining stocks. According to the current SOFIA Report, the proportion of overexploited or depleted stocks has increased from 10 per cent in 1974 to 29.9 per cent in 2009. To ensure sustainable development in economic, social and environmental terms, the utilization of by-products has become an important industry in various countries. The focus of this study is therefore to introduce utilization of by-products and increase value of production in South Africa. Currently, there are still tons of fish turned into low value products such as fishmeal, and some parts of fish discarded at sea as waste. With the limited resources, South Africa ought to make the most out of every kilogram of catch by introducing the concept of full utilization. An analysis was done using the diamond model of Michael Porter to evaluate the competitiveness of the South African fishing industry compared to that of Iceland. Using Iceland as a benchmark, the first phase of this study involved conducting research through interviews in the South African hake fishery to determine the current level of utilization as well as in Iceland to learn from their experience of full utilization. The model and research conducted revealed that the South African fishing industry lacks the supporting industry which is the vital part of the full utilization project. Policies were then recommended for south African government to support the industry. It is anticipated that this project will contribute towards job creation in the fishing industry as well as economic growth.