Preparing the way for growth in aquaculture in Northern Australia: Industry priorities and vision

2028 Dean Jerry, Jennifer Cobcroft, Kyall Zenger, Jan Strugnell,

Amy Diedrich, Rob Bell, Roger Barnard, Simon Irvin, Kylie Penehoe, Michael Davis, Kim Hooper, Jo-anne Ruscoe

• Identify key challenges and opportunities facing the aquaculture sector in northern Australia

• Explore potential solutions and/or identify the most strategic research projects for further investment

Project Objectives

Aquaculture

• infrastructure

• policy

• investment

• environmental

• production

• knowledge

• training and human capital gaps

Project Scope

Research or alternative solutions to address

roadblocks

Project Approach

Capacity & scalability limitations

• Species and regions

• Lit review

Industry Vision 2028

• Industry supported

• Identified goals

• Survey

• Focus Groups

Current & emerging

issues

• SWOT

• PESTEL

• Scenarios

• Stage I Report

Strategy for future growth

• Socialisation

• Incorporate feedback

• ID solution providers

• Stage II Report

• Final Report

Distribution of respondents in Northern Australian Regions, and throughout Australia

120+ responses

Surveyed participants

R e s p o n d e n t s

Online Survey

Species produced:

Software

Barramundi 35%

Tiger Prawns 29%

Pearl Oyster 16%

Rock Oyster 10%

Cobia 6%

Grouper 6%

Banana Prawns 3%

Redclaw 3%

Other 26%

Including sea cucumber, black lip oyster, milky

oyster, tropical rock lobster & cherabin

Respondent Location

QLD WA NT Outside Northern Aus

56%

15%

17%

12%

C h a l l e n g e r a t i n g

Online Survey

Species specific responses:

Software

35%

44%

21%

Please choose how you would like to answer the following challenge rating questions:

Species specific

Industry wide

Do not feel qualified torespond

Including giant clams, tropical rock lobsters, slipper lobsters, cherbin, ornamentals, black-

lip oysters, eel, seaweed, marron & sea cucumber

Barramundi 20%

Tiger Prawns 18%

Redclaw 13%

Rock Oyster 11%

Grouper 9%

Pearl Oyster 7%

Cobia 2%

Other 21%

0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00

Feed quality

Stock performance

Market sales price

Market access and development

Competition (domestic and international)

Fingerling, PL and/or spat (quality/supply)

Broodstock (quality/supply)

Disease

Access to capital

Feed costs

Supply chain and infrastructure

Regulatory burden (time/cost)

Transport costs

Livability/remoteness of operations

Labour costs

Breeding programs (absence of)

Building/infrastructure costs

Environmental risks/pressures (extreme weather etc.)

Labour recruitment/availability

Power (costs/reliability)

Weighted average – Industry wide challenges (all respondents)

C h a l l e n g e r a t i n g

Online Survey

Other key challenges identified

by respondents: - Business management capacity

- Red tape & bureaucracy

- Discharge limits/restrictions

- Access to technology and innovation

- Social license to operate

- Lack of suitable sites

- Biosecurity risks

- Public perception of industry

- Land ownership

- Water quality

C h a l l e n g e r a t i n g

Online Survey

0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00

Feed quality

Market access and development

Supply chain and infrastructure

Market sales price

Stock performance

Competition (domestic and international)

Livability/remoteness of operations

Fingerling, PL and/or spat (quality/supply)

Transport costs

Feed costs

Building/infrastructure costs

Disease

Access to capital

Broodstock (quality/supply)

Environmental risks/pressures (extreme weather etc.)

Labour costs

Breeding programs (absence of)

Power (costs/reliability)

Regulatory burden (time/cost)

Labour recruitment/availability

Weighted average - Industry wide challenges (producers only)

Environmental Risks

Regulatory Burden

Access to Capital

Competition

Market Sales Price

Market Access/Development

Supply Chain Infrastructure

Transport

Building Infrastructure

Power

Liveability

Labour Recruitment

Labour Costs

Absence of Breeding Programs

Feed Quality

Feed Costs

Disease

Stock Performance

Fingerling (supply and quality)

Broodstock

Perception of industry level challenges for aquaculture development in northern Australia

minor

moderate

severe

no response/don’t know

0 20 40 60 80 100

Percent

Environmental Risks

Regulatory Burden

Access to Capital

Competition

Market Sales Price

Market Access/Development

Supply Chain Infrastructure

Transport

Building Infrastructure

Power

Liveability

Labour Recruitment

Labour Costs

Absence of Breeding Programs

Feed Quality

Feed Costs

Disease

Stock Performance

Fingerling (supply and quality)

Broodstock

0 20 40 60 80 100

Percent

20 40 60 80 100

Percent

0

Perception of industry level challenges for aquaculture development in northern Australia

Environmental Risks

Regulatory Burden

Access to Capital

Competition

Market Sales Price

Market Access/Development

Supply Chain Infrastructure

Transport

Building Infrastructure

Power

Liveability

Labour Recruitment

Labour Costs

Absence of Breeding Programs

Feed Quality

Feed Costs

Disease

Stock Performance

Fingerling (supply and quality)

Broodstock

0 20 40 60 80 100

Percent

0 20 40 60 80 100

Percent

Perception of industry level challenges for aquaculture development in northern Australia

F u t u r e e x p a n s i o n

Online Survey

“Other” future expansion

options identified by

respondents: - Transport subsidies

- Independent environmental

impact assessments

- Reducing power costs

- Expanding biosecurity capacity

and resources

- Improving reliability of power

0% 5% 10% 15% 20% 25%

Other

Access to capital

Expanding markets

Government policy and regulation

Infrastructure

Research, development & extension

Selective breeding programs

Training, skills and workforce availability

Future expansion credit allocation - % total

F u t u r e e x p a n s i o n

Online Survey

“Other” R&D expansion

identified by respondents:- Transport subsidies

- Independent environmental

impact assessments

- Reducing power costs

- Expanding biosecurity capacity

and resources

0% 5% 10% 15% 20% 25%

Other

Automation

Disease management

Nutrition

Culture water quality management

Environmental management

Breeding and genetics

Live/fresh transport

R&D Credit allocation - % total

• Improve clarity and regulation of Country of Origin labelling (10.6%)

• indigenous engagement, employment and commercial opportunities (9.2%)

• Increase and improve breeding programs (8.7%)

• Increase production efficiency through automation/other technology (8.7%); and

• Increase and improve hatchery/seedstock supply (8.1%)

• Complex and duplicate regulatory processes (13.2%)

• High power costs (12.3%)

• High transport costs (11.7%)

• High labour costs (10.8%); and

• Lack of skilled/experienced labour(10.2%)

• Disease outbreak/introduction of exotic diseases (17.6%)

• Increase in power/fuel costs (10.3%)

• Regulatory processes hindering expansion and/or market development (9.8%)

• Competition from international competitors (9.2%); and

• Consumers unable to correctly identify Australian produce (8.4%)

• Strong reputation of Australian produce (17.6%)

• High growth rates due to warm average temperatures (13.8%)

• Large areas of suitable land (11.7%)

• Strong scientific support (11.1%); and

• Access and availability of fresh water (10.0%)

Strengths Weaknesses

OpportunitiesThreats

Industry SWOT analysis

2019

$220 million

2028

$410 million - $1 billion

1200 direct new jobs

~$100M2019

~$200M2025

~$74M2019

~$150M2027

Industry growth predictions

Biosecurity

Increased pathogen understanding, documented risks, transmission pathways, and practical surveillance implemented for the aquaculture industry in northern Australia by 2023.

Skilled personnel

Meet the gap in skilled personnel to fill at least 1200 jobs in aquaculture in northern Australia by 2028.

Supply chain capacity

Improved aquaculture supply chains in the Pilbara, Kimberley, Northern Territory and northern Queensland to reduce operating costs in northern Australia.

Collaboration in Innovative Technologies and Community Engagement

Enhancing networking and industry cohesion to deliver solutions to facilitate industry problem-solving.

Science-based policy and regulation

Continued improvement in clarified, science-based policies for aquaculture regulation, with transparent processes and timelines, enabling environmentally responsible and timely aquaculture expansion. Stronger and adaptive governance

Recommendations

Aquaculture will grow to a mature, cohesive, sustainable and

respected industry through innovative people providing more

premium products to Australian and international markets,

contributing to the prosperity and diversification of regional and

Indigenous communities in the north.

Northern Australian Aquaculture Industry Vision 2028

The authors acknowledge the financial support of the Cooperative Research Centre for Developing Northern Australia and the support of its investment partners: the Western Australian, Northern

Territory and Queensland Governments. We also acknowledge the financial and in-kind support

of the project participants.

Thank you to all the industry, government and education stakeholders who provided their perspective and input.