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SEAFOOD OPPORTUNITIES IN SOUTH AUSTRALIA
2
PREMIUM FOOD & WINE FROM OUR CLEAN ENVIRONMENT
Agriculture, Food and Wine is South Australia’s most significant industry
generating over $17 billion revenue annually, supplying Premium Food and Wine
to the world.
20% of Australia’s grain produce 7 million tonne average grain production per year with
80% exported to China, Asia and Middle East
62% of Australia’s wine exports Premium wine growing regions with exports to UK, North
America and emerging markets in China and Asia
Premium livestock producer Beef, lamb, dairy, pigs, poultry, wool – exports to Japan, China,
US, UK, Europe, other Asia
Australia’s premium seafood Tuna, rock lobster, abalone, prawns and kingfish from pristine
Southern Ocean exporting to Japan, Hong Kong and other Asia
Leading horticulture production Potatoes, tomatoes, capsicums, mushrooms, almonds, citrus –
including world leading greenhouse and water technologies
Australia’s first commercial forestry 200,000 hectares of softwood and hardwood plantations –
exports to Japan and others
World leading R&D and education University of Adelaide/Waite Institute, South Australian
Research & Development Institute, Australian Wine Research
Institute
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SEAFOOD PRODUCTION ADVANTAGES AND OPPORTUNITIES
Opportunity to invest in seafood production and processing from within an
environment of natural advantages.
‘Clean & Green’ environment for premium products
Productivity of the Southern Ocean combined with
renowned food safety and quality
Geographic logistical advantage
South Australia is centrally located in Australia, with established
logistics networks and in close proximity to Asian markets.
Development in underutilised species
Yellowtail Kingfish, sardines, mackrel, crab, molluscs
Value add processing opportunities
Pelagic fish value adding
Continued demand for seafood
Continued strong growth in domestic and international
seafood consumption
Industry advantages
Established seafood industry, operators, exporters and service
providers. Regulation to ensure economic sustainability.
Source: OECD-FAO 2014 4
DOMESTIC DEMAND DRIVING OPPORTUNITY
South Australia has a leading capability and advantage to supply Australian
produced premium fish to meet the continued growth in domestic consumption.
0
100
200
300
400
2009-10 2010-11 2011-12 2012-13
South Australian Seafood Exports ($m)
Japan China (inc Hong Kong) Singapore Vietnam
South Australia exported a total of $86m
of Southern Rocklobster in 2012/13
South Australia exported over $29m of
Abalone to China in 2012/13
South Australia exported close to $153m
of Southern Bluefin Tuna to Japan in
2012/13
Australian Fish 28%
Imported Fish
72%
Australian fish consumption has
doubled since 1990.
The rapid expansion of fish
consumption has resulted in
increasing imports.
In 2013, 72% of all fish consumed
in Australia was imported.
$1,900
$2,400
$2,900
$3,400
2005 2009 2013 2017 2021
World Fish Price (USD/t)
Fish
0
200
400
600
800
1,000
1990 2000 2010 2020
Total Fish Consumption Fish Imports
Increasing Demand
for Australian Fish
2013 Australian Fish Consumption Australian Fish Consumption Trend (kt)
Source: PIRSA and EconSearch
ASIAN DEMAND FOR PREMIUM SEAFOOD DRIVING
OPPORTUNITY
South Australia has a leading capability and advantage to supply the increasing global
demand. The growth in population and disposable income in Asia will increase demand
for premium seafood.
South Australia produced 1,111
tonnes of Abalone in 2013/14 from
wild catch and aquaculture. Over
71% was exported across the
globe.
Abalone Export Destinations
South Australia produced
7,486 tonnes of Southern
Bluefin tuna in 2013/14,
exporting 98% with a majority
shipped to Japan.
Tuna Export Destinations
South Australia produced
1,552 tonnes of Lobster in
2013/14, with almost all
exported into Asian countries.
Lobster Export Destinations
Japan
Other
Hong Kong
China Singapore
U.S.A.
Other
Vietnam
Hong Kong
China Singapore
5
6
FISHERIES AND AQUACULTURE PRODUCTION
Overseas processed exports $266m
Net interstate processed
exports $114m
Retail sales $260m
Food service sales $181m
Gross food revenue $821m
Southern Rock Lobster
$108 million production value 2013/14
Key export market – Hong Kong and Vietnam
Marine Finfish
$18 million production value 2013/14
predominant species - Yellowtail Kingfish
Oysters
$35 million production value 2013/14
Abalone
$38 million production value 2013/14
Southern Bluefin Tuna
$113 million production value 2013/14
Key export market - Japan
South Australia is a significant producer of
seafood products. Seafood contributes $818
million to the State’s gross food revenue.
South Australia exported a total of $86m
of Southern Rocklobster in 2012/13
South Australia exported over $29m of
Abalone to China in 2012/13
South Australia exported close to $153m
of Southern Bluefin Tuna to Japan in
2012/13
These advantages ensures that South Australian produced seafood is of the
highest quality, sustainable, traceable and safe.
Southern Ocean
The waters of the Southern
Ocean combined with the
productivity of the Gulfs St.
Vincent and Spencer
provide an ideal
environment for the
production of
premium seafood.
The South Australian
seafood sector is managed
by Primary Industries and
Regions SA, an agency
that is responsible for
growing sustainable
industries
and regions.
From boat or farm to plate,
producers and processors
undergo stringent quality
assurance monitoring
using international
standards to ensure high
quality, safe food
and products.
Management Food Safety
South Australia is a world
leader in the development
and implementation of a
number of fishing and
aquaculture production
techniques. South
Australia pioneered world
tuna ranching.
Production Techniques
ADVANTAGES GENERATING PREMIUM PRODUCTS
7
Premium South Australian Seafood is underpinned by:
• Clean environment
• Stringent food safety
• Strong fisheries management
• Innovative production techniques
8
WILD HARVEST FISHERIES PRODUCTION
Species 2013/14 volume of
production (tonne)
2013/14 value
of production
($ million)
Current sector structure
Southern
Rock Lobster 1,552 108
248 licence holders across 2 zones.
Limited entry quota managed fishery.
Prawn 1,881 30 52 licences across 3 zones.
Limited entry input controlled fishery.
Abalone 875 30 35 licence holders across 3 zones.
Limited entry quota managed fishery.
Sardine 34,000 20 10 licence holders.
Limited entry quota managed fishery.
Other 4,038 28 Whiting, snapper, crabs, squid
TOTAL 42,346 224
In 2013/14 South Australia produced 42,346 tonnes of wild harvest fisheries
product with a catch value of $224 million.
SOUTH AUSTRALIA’S KEY WILD HARVEST FISHERIES SECTORS
Source: PIRSA 2013/14
Wild Harvest Production Summary:
9
AQUACULTURE PRODUCTION
SOUTH AUSTRALIA’S KEY AQUACULTURE SECTORS
Species 2013/14 volume of
production (tonne)
2013/14 value of
production
($ million)
Current sector structure
Southern
Bluefin Tuna 7,486 113
Quota managed Commonwealth fishery –
ranching of wild harvest tuna. One operator
owning approximately 50% of the quota.
Oysters 5,710 35 20 small to medium enterprises producing
approximately 70% of production.
Marine Finfish
(Kingfish &
Mulloway)
992 12 5 small to medium enterprises producing
approximately 90% of production. Product
includes Kingfish, Mulloway and Barramundi.
Abalone 236 8 2 farms in operation with one of those producing
approximately 80% of the product.
Mussels 1,480 3 3 farms in operation with 2 farms producing
approximately 95% of the product.
Other 896 9 Rainbow Trout, Yabby
TOTAL 16,800 181
In 2013/14 South Australia produced 16,800 tonnes of aquaculture product with a
catch value of $181 million.
Source: PIRSA 2013/14
Aquaculture Production Summary:
LOGISTICAL ADVANTAGE
10
South Australia is located at the centre of Australia’s road, rail and air freight
logistics networks with:
• Time and cost advantages for air and land transport to key domestic markets
• Natural logistics advantage for exports into Asia
• Shorter air freight time to Asia than most of the large seafood producing countries
10
INVEST IN YELLOWTAIL KINGFISH AQUACULTURE
11
The domestic and international market demand for premium Australian produced fish is
rapidly increasing. Consumers are paying a premium for Australian produced fish.
Source: Clean Seas 2013/2014 Annual Report, PIRSA 2013/14
• The nutrient rich water of the
Southern Ocean provide the ideal
environment for the production of
Finfish
• Yellowtail Kingfish is currently
farmed near Whyalla, Arno Bay
and Port Lincoln
• In 2013/14 a total of 571 tonnes
of Yellowtail were produced in
South Australia
• In 2013/14 over 1424 tonnes of
marine aquaculture finfish was
produced in the state
• The value of South Australian
finfish exports are minimal with
ample export marketing
opportunities available
• Lease sites and licenses can be
obtained for greenfield investment
or expansion of existing
operations
The Kingfish / Finfish Sector:
• Invest in the development of further
Yellowtail Kingfish production in the
waters adjacent Eyre Peninsula
• Identify potential locations and
establish greenfield Yellowtail
Kingfish, hatchery, pontoon farm
and processing operations
• Invest in joint venture infrastructure
The investment opportunity:
• In contrast to most wild catch
fisheries production, the closed
lifecycle production of Yellowtail
Kingfish has the potential to be
produced in much larger volumes
• Yellowtail Kingfish have white-flesh
and few bones, suiting domestic
consumers’ preference for
boneless white-flesh fillets
Yellowtail Kingfish Product:
The Production:
0
1,000
2,000
3,000
13/14 15/16 17/18
Yellowtail Production (T)
INVEST IN OYSTER AQUACULTURE
12
South Australia generates approximately 41% of Australia’s oyster production. With
domestic and international demand for this premium product continuing to grow.
Source: ABS, PIRSA 2013/14
• Invest in the development of further
marine oyster production in pristine
South Australian waters
• Identify potential locations and
establish a greenfield sub-tidal
oyster farms and new processing
operations
• Invest in a joint venture with, or
acquisition of existing operator
• Grow production through industry
consolidation and developing
international export markets
The investment opportunity:
• The nutrient rich water of the
Southern Ocean provide the ideal
environment for the production of
premium oysters
• Oysters are fed by the Southern
Ocean with minimal estuary or
agricultural run off
• In 2013/14 a total of 5,710 tonnes
of oysters were produced in
South Australia valued at $35m
• Only 8% of oysters produced in
the state are exported
• The value of South Australian
oyster exports have more than
quadrupled since 2007
• Lease sites and licenses can be
obtained for greenfield investment
or expansion of existing
operations
The Oyster Sector:
The Exports:
The Production:
20
25
30
35
40
45
06/07 08/09 10/11 12/13
South Australian Oyster Production
($M)
0
2
4
6
06/07 08/09 10/11 12/13
South Australian Oyster Exports ($M)
INVEST IN MUSSEL AQUACULTURE
13
South Australia generates 40% of Australia’s mussel production. With potential to grow
through new marketing opportunities to meet domestic consumption targets.
Source: ABARES, PIRSA 2013/14
• The nutrient rich water of the
Southern Ocean provide the ideal
environment for the production of
premium mussels
• In 2013/14 1,480 tonnes of Blue
Mussels were produced in South
Australia worth A$3m. The
majority of product was sold
through domestic markets
• The value of South Australian
mussels produced have more
than tripled since 2007
• Australia produces only 58% of
the domestic market
• Mussels harvested 12 months a
year using long line farming
techniques with a growing time of
9-12 months
• Lease sites and licenses can be
obtained for greenfield investment
or expansion of existing
operations
The Mussel Sector:
• Invest in the development of further
marine mussel production in pristine
South Australian waters
• Identify potential greenfield locations
and establish mussel farms and new
processing operations
• Invest in a joint venture with, or
acquisition of existing operator
• Grow production through industry
expansion and marketing
opportunities in Australia
The investment opportunity:
Mussel Product:
The Production:
• Australians consume 150 grams of
mussel per capita compared to
European consumption of 2 kg
• Market reach for mussels is
increasing in Australia. Consumers
can now purchase ready to eat
mussels in a vacuum pack
• Mussels are a highly nutritious food
0
500
1000
1500
2000
2500
06/07 08/09 10/11 12/13
South Australia Mussel Production (T)
INVEST IN PROCESSING NEW OR UNDERUTILISED SPECIES
14
Growing demand domestically for high value Sardine products for human consumption.
Currently in this sector there are no material processing operations in Australia.
Source: ABARES, PIRSA 2013/14
• Approximately 32% of all
Australia’s wild catch fish are
Sardines caught in South
Australia
• South Australia produces
approximately 89% of all
Australia’s Sardine production
• In 2013/14 a total of 34,000
tonnes of sardines were caught in
South Australia valued at $20m
• Only small quantities of sardines
produced in the state are
processed in high value products
for human consumption
• 98% of sardines caught in South
Australia are supplied to the Tuna
industry
• Australian imported over 16,000
tonnes of processed Sardines in
2012
The Sardine Sector:
• Invest in the development of the
domestic Sardine industry for
human consumption
• Identify potential greenfield locations
and establish sardine processing
operations
• Invest in a joint venture or acquire
an existing Sardine wild catch
licensed operator
• Invest to secure supply of processed
South Australian Sardine
The investment opportunity: The Production:
Sardines Product:
• Innovation in post harvest
processing has resulted in a pre-
packed fresh and frozen boneless
butterfly and barrel fillets.
• Newly innovated premium products
• One of the world’s highest sources
of essential omega 3 oils
25,000
30,000
35,000
40,000
06/07 08/09 10/11 12/13 14/15
South Australia Sardine Allowable Catch (T)
Catch Limit
Australian Sardines:
15
Industry Support
South Australian seafood
organisations and members
actively support and develop
the industry in South Australia.
Foreign investment is
welcomed as a key mechanism
to support industry growth.
Key industry organisations:
• Wildharvest Fisheries
SA Inc.
• Sector specific industry
associations for all the key
wild catch and aquaculture
species
Government Support
The South Australian
Government supports investors
throughout the investment
process via a Case
Management approach.
Government agencies involved
include:
• Primary Industries and
Regions SA
• Department for State
Development
• Invest in South Australia
Low Costs
Ranked one of the lowest cost
states in Australia for business
and living.
Adelaide is ranked the 5th most
liveable city in the world.
Average wages are 6% lower
than eastern states.
Infrastructure
Adelaide and South Australia
are at the centre of Australia’s
air, road and rail transport links.
Strategic proximity to Asia
supported with a number of
ports, including Port Adelaide.
Food Safety Standards and Export Regulations
Food Safety Standards
South Australia is recognised internationally for its quality of food
safety standards and processes, ensuring strong differentiation in
international markets.
Producers and processors in South Australia adhere to the national
guidelines under Food Standards Australia & New Zealand (Primary
Production and Processing Standard for Seafood Products).
Export Regulations
Exports are controlled by the seafood program within the Australian
Department of Agriculture. Process of registration is by way of
application to the Australian Quarantine and Inspection Service. If food
safety plan and systems are in place, accreditation is relatively fast.
South Australia has a range of initiatives and advantages to support new
investment into the State including low costs and existing infrastructure in key
seafood regions.
SUPPORT TO INVEST IN SOUTH AUSTRALIAN SEAFOOD
Source: NATSEM: Household Budget Report Cost of Living, ABS, EIU: A Summary of Liveability Ranking and Overview, ABS
CONTACT DETAILS
Invest in South Australia
The Conservatory
131-139 Grenfell Street
Adelaide 5000
South Australia
T: +61 8 8303 2419
www.invest.sa.gov.au
Primary Industries and Regions South
Australia
Level 14, Grenfell Centre
25 Grenfell Street
Adelaide 5000
South Australia
T: +61 8 8226 0900
www.pir.sa.gov.au
Published February 2015
The information contained in this presentation has been compiled by the Department of State Development (DSD) and
Primary Industries & Regions South Australia (PIRSA) and originates from a variety of sources. Although all reasonable
care has been taken in the preparation and compilation of the information, it has been provided in good faith for general
information only and does not purport to be professional advice. No warranty, express or implied, is given as to the
completeness, correctness, accuracy, reliability or currency of the materials. Facts, illustrations and information should
not be relied upon and readers should seek their own professional advice and due diligence prior to making any
investment decision.
DSD, PIRSA and the Crown in the right of the State of South Australia does not accept responsibility for and will not be
held liable to any recipient of the information for any loss or damage however caused (including negligence) which may
be directly or indirectly suffered as a consequence of use of these materials. DSD and PIRSA reserves the right to
update, amend or supplement the information from time to time at its discretion.
This document has been prepared with the assistance of Rural Solutions SA, a division of PIRSA.
Justin Ross
Director
Agriculture, Food and Wine Primary Industries and Regions SA
Telephone +61 8 8226 8157
Email: [email protected]
Developed in association with the seafood
industry of South Australia
Glen Ingham
Seafood Account Manager
Agriculture, Food and Wine Primary Industries and Regions SA
Telephone +61 8 8204 9976
Email: [email protected]
Brad Karanicolou
Associate
Invest in South Australia Department of State Development
Telephone +61 8 8303 2182
Email: [email protected]
Thomas Herraman
Associate
Invest in South Australia Department of State Development
Telephone +61 8 8303 2255
Email: [email protected]
