FEATURE

AUSTRALIA
a complex aquaculture industry
From boom or bust for key species groups of shrimp, salmon and tilapia!

ustralian aquaculture is in many

ways at the crossroads. It clearly
has potential but regrettably
there are many things holding it
back. Much of Australia has been based on
the boom or bust process and aquaculture
is very much in that zone.

Setting the scene

First, we have to understand and accept

that Australia is seafood deficient and already
relies on imported seafood for around 75 percent of all seafood consumed. This has long
been the case despite Australia having the
worlds third largest Exclusive Economic Zone
(EEZ) at around 10 million square kilometers.
When you compare that with the size of the
Australian mainland States and Territories,
which is 7.69 million square kilometers, you
can appreciate the size.

Australia is surrounded by both tropical

and by temperate seas, but these waters are
not particularly bountiful as far as wild fish are
concerned and there are many scientific and
geographic explanations for this.
However, we must ask the question has
Australia really made the best uses of its water
resources or have they been, so far, wasted by
not embracing aquaculture, the worlds fastest
growing primary industry?

Reports that point to optimism

A Report was done on Imported Seafood

by the Fisheries Research & Development
Corporation (FRDC) and detailed analysis of
fisheries statistics, various reports and trade
information from around Australia, revealed
that:
The 193,000 tonnes of seafood imported in financial year 2008/09, some 250
species/ products from aquaculture and

32 | INTERNATIONAL AQUAFEED | January-February 2015

wild-catch fisheries, had a landed cost

of Aus$1.3 billion and an estimated final
sales value of Aus$4.5 billion
The business activities transacted in
importing this seafood, from the landing
port to the consumers plate added
Aus$3.2 billion (4.5 minus 1.3 billion) to
the Australian economy
Almost all the imported seafood was
used for seafood consumption through
the retail and the food service sectors
This quantity provided 72 percent of
the fish and shellfish flesh consumed in
Australia and underpinned more than
two-thirds of Australias employment in
the seafood post-harvest sector
Canned fish, frozen fillets, frozen whole
and processed prawns and frozen squid
products were the major imported
items
Just taking some very rough calculations

FEATURE

you will see Australias issue. Consider the

dietary recommendations for Australians by
the National Health & Medical Research
Council (NHMRC) and do a quick computation and you will see that the amount of seafood required would need to be in the region
of 750,000 tonnes of whole fish/seafood. If
you then consider Australias current harvest
(both wild-catch and aquaculture) is regularly
in the 200-240,000 tonnes you will see the
need for imported product. This situation is
not expected to improve in the foreseeable
future.
A few months ago, Rabobank gave a view
that the strong thematic drivers, both local
and global, are critical to the current growth
in the industry advising that these will continue
to support further growth in the medium to
long term.
They went on to give the view that the
rate of growth and outlook varies significantly

across sectors, depending on the exposure to

the key growth drivers and suggested that in
order for Australian seafood sectors to grow
and remain competitive, it is important that
strategies are developed to the address the
following:
Ability to sustainably
increase production

Technological and aquaculture improvements

Market concentration, with
high barriers to entry
Brand development and reputation
Improving market access
Opportunities and challenges with
meeting Asian demand growth

Evolution of the Middle Class Millions % (OECD 2010)

2009

2020

2030

North America

338 (18%)

333 (9%)

322 (7%)

Europe

664 (36%)

703 (22%)

680 (14%)

Latin America

181 (10%)

251 (8%)

313 (6%)

Asian & Pacific

525 (28%)

740 (54%)

3228 (66%)

Sub-Saharan Africa

32 (2%)

57 (2%)

107 (2%)

Middle E & N Africa

World Total

105 (6%)

165 (5%)

234 (5%)

1845 (100%)

3249 (100%)

4484 (100%)

January-February 2015 | INTERNATIONAL AQUAFEED | 33

FEATURE
Supply chain partnerships
A competitive value proposition
relative to alternate proteins
Rabobank concluded that the overall the
outlook remains very optimistic across most
key Australian sectors.
However, there will be challenges, particularly with regard to managing environmental
and sustainability issues, biosecurity as well as
trade flows.

Import reliance creates

its own issues

There is more to this as there are added

issues to being import reliant, these include
price variances due to market forces and exchange
rates. Trained staff are
not that easy to come by
and what is an enigma is
that whilst Australia has an
excellent Seafood Training
Package it is used sparingly.
The aquaculture industry
in Tasmania has definitely
made the most of this but
other states are lacking a
training focus. Clearly if you
are not training your staff
there will be consequences
down the track.
Most countries in Asia
that Australia relies on
for seafood are not only
large consumers of seafood
themselves but are also
expecting massive increases
in their middle classes. It is
understood that as people
move to middle class status their food consumption patterns change and they eat more
protein, especially proteins which they already
enjoy, e.g. seafood.
This increase in middle classes is actually a
potential double hit for seafood consumers in
Australia. As demand rises in those countries
they will not only seek to eat more of their
own production but will also be keen to
import special niche products exactly the
area where Australian production could fit.
The aim of Australian seafood harvesters
and processors generally is always at export
markets rather than domestic markets, it has
been part of the countrys psyche for generations.
This further acerbates the supply position
and whilst you would think with the abundance of resources, technology, science and
education that Australia has, we would see
the country wallowing in opportunities. Alas,
Australia seems to be paralysed and has been
that way for some time.
Politicians rarely understand the dynamic
of seafood and regrettably politics has played
a large role in Australias current position.

Some say that Australia has not moved into

the new dynamic of aquaculture as well as
it should have, especially in the governance
arena.

No cohesive plan for

shrimp, salmon or tilapia

There is no one plan for Aquaculture and

with nothing happening in Commonwealth
waters it is the States/Territories that rule the
roost. Governance is complicated and tied up
in red and green tape.
There are no two states with the same legislation/regulations. In most states/territories
fishing, a hunter-gather approach to harvest-

with production stable at approximately

20,000 tonnes. When compared to the global
supply of over six million tonnes, which is
produced in approximately equal amounts
by wild-catch and aquaculture, Australia is
a minor producer, but this could potentially
change in the future.
Whether a pipe dream or reality there
is currently a project by Australias largest
prawn farmer Seafarms Group Limited (itself
a recently-acquired subsidiary of ASX-listed
Commodities Group Limited), to create the
worlds largest prawn farm.
Based in the remote north of Western
Australia and aiming to create a 10,000ha
Black Tiger Prawn, P. monodon farm. Whilst it is still early
days and many uncertainties
remain, if this farm was developed it could become one
of Australias largest aquaculture sectors, potentially even
surpassing salmon aquaculture
in value terms. It would also
place Australia among the top
10 largest global prawn producers and also making it one
of the leading exporters.

Natural biosecurity
a key advantage

ing, is still locked with aquaculture, and that

would seem to confuse and obstruct opportunities. When you hear stories of no new
aquaculture licenses issued in a state for over
a decade when the rest of world is embracing
aquaculture it sends out bad messages to the
industry and potential investors.
Australia does have excellent science,
research and education. This is highlighted
by CSIRO Australia, who, after 10 years
of research, have perfected the Novacq
prawn feed additive.
Farmed prawns fed with Novacq grow on
average 30 percent faster, are healthier and
can be produced with no fish products in their
diet, a world-first achievement in sustainability.
Having this advantage is a major plus in
the market but alas the volumes that are produced in Australia are negligible. The quantity
of farmed prawns produced in Australia is only
around 4500 tonnes whereas in Indonesia and
many other similar countries they are producing over 300,000 tonnes the quantities all
over Asia certainly dwarf Australias activities.
At the moment for prawn Australia relies
more on wild-catch product (and imports),

34 | INTERNATIONAL AQUAFEED | January-February 2015

Experts say from a land

and feed availability perspective
and given the suitable climate
in this region, the farm should
be feasible. The high level of
biosecurity in Australia would
be a great advantage, especially
as the global prawn sector has
been through some crises with the outbreak of
Early Morality Syndrome, which decimated key
production regions such as China and Thailand
and pushed global prices to new highs.
Talking of biosecurity. It is important to
note that imported prawns in Australia are
only allowed if they are approved through
Biosecurity Australia.
Biosecurity Australia completed the final
import risk analysis (IRA) report and strict
policy recommendations for the importation
of prawns and prawn products from all countries have been in place for over five years.
The final IRA report recommended risk
management for white spot syndrome virus
(WSSV), yellowhead virus (YHV), Taura syndrome virus (TSV) and NHPB (in the case of
unfrozen product) to meet Australias appropriate level of quarantine protection.
The IRA recommends that imported
prawns be sourced from a country or zone
that is recognised by Australia to be free of
WSSV, YHV, TSV and NHPB (the last disease
agent, for unfrozen product only); or have the
head and shell removed (except for the last
shell segment and tail fans) and, if not from

FEATURE
a disease free source, have each batch tested
on arrival with negative results for WSSV, and
YHV; or be highly processed, that is head and
shell-off (except for the last shell segment and
tail fans), and coated for human consumption
by being breaded or battered, marinated in a
wet or dry marinade, marinated and placed
on skewers or processed into dumpling,
spring roll, samosa, roll, ball or dim sum-type
product; or be cooked to a standard where
all protein is coagulated and no uncooked
meat remains.
Of course biosecurity is important but tens
of thousands of tonnes of imported green
prawns have been imported to Australia over the past 50 years - without any major
issue. Strangely with such rules no one seems
to take in the costs to consumers,

Salmon - the one bright light

Australias bright light in aquaculture is in

Atlantic Salmon, clearly not an indigenous
fish, but one which has now cemented itself
strongly in Tasmania. The volume is heading

towards 60,000 tonnes (Australias largest

single species harvest) with the majority of the
product aimed at the domestic market and
with strong environmental credentials being
obtained and continually chased.
It is clearly an industry sector which stands
out above most others in Australia. When
you consider that the harvest started in
1986/87 with a harvest of 53 tonnes you can
appreciate the growth.

The Huon Valley Trade Training Centre (HVTTC) at Huonville, Tasmania

This is one of four TTC's in Tasmania - there is something similar in South
Australia but nowhere else in Australia. All states treat education differently.
Steve Harrison (pictured), is Education Programs Leader at HVTTC, and will
soon take up his appointment as chairman of the AwF Global Schools/Students
Network. HVTTC enables school kids to get Certificate l & ll in the National
Seafood Training Package - which connects them with industry. Industry now
engages and enable kids to have time in the businesses through their schooling.
It's a great initiative, but its only a small pocket ...

Tassal Limited is the largest producer of

salmon in Tasmania, with almost eight million
Atlantic salmon growing in cages that can each
hold up to 40,000 fish.
Head of sustainability for Tassal, Linda
Sams has been reported as saying The
Company needs to expand to keep up with
demand. By 2030 we talk about doubling our
production, but there's a number of ways
we'll do that.
We'll do that through actually growing
more fish, but we'll actually do that as well by
growing fish more efficiently."
But Tassal and the other major Tasmanian
Salmon farms of Huon Aquaculture and
Petuna, who would jointly be close to being
Tasmanias largest employers, are continually
fought on expansion by two groups.
Yes, you would expect in Tasmania, where
the Green lobby gets most of its strength in
Australia, that the environmentalists would
be heavy objectors but it is also quite fascinating that another seafood group, the rival
abalone industry, are also wanting the expansion stopped. Both accuse salmon farms of
polluting Tasmania's waterways and killing off
marine life.
In Victoria, Pacific Oysters are considered
noxious pests and are not allowed yet South
Australia, Tasmania and NSW have created
viable businesses. Talking of noxious pests
Australia has spent millions of dollars trying to
find the silver bullet for European Carp and
Tilapia (the two largest aquaculture species in
the world) as against using the research and
technical knowhow on how to grow such species and satisfy market demand for cheaper
fresh fish.
Yet Atlantic Salmon and fish like Rainbow
Trout are allowed and even grown by
Government hatcheries.
We have not broached the money spent
on species like Tuna, Murray Cod and Silver
Perch or the Seafood CRC, so you can see
Australia is a confusing mix. Until there is
some political leadership and a national plan
which includes engagement with all States/
Territories creating a more investor-friendly
environment, then it should expect the boom
or bust era to continue and for the reliance on
imports to get stronger.

January-February 2015 | INTERNATIONAL AQUAFEED | 35