Aquaculture Has Become Australia’s Most Valuable Seafood Industry
Aquaculture has become Australia’s most valuable seafood industry, according to a recent report by the Australian Bureau of Agricultural and Resource Economics and Sciences. Aquaculture overtook wild-caught fishing for the first time in Australia in 2021-2022 in terms of the gross value of production (GVP) and hit a peak value of over $ 2 billion. The report found that the sector's GVP rose 9% in 2021, currently accounting for 56% of the total value of the seafood industry across the country.
Dr. Kelly Condon, a researcher at James Cook University and aquaculture expert, believes that the industry is growing due to large-scale investment that has led the way for improvements in resilience and efficiency. According to Condon, the largest expenses stem from labor and electricity. However, as farmers reach the economy of scale on their farm, it can become extremely profitable due to a higher production per unit area and improved consistency.
According to Dr. Condon, the advantages of aquaculture became much more distinct throughout the pandemic. The current effects of climate change and volatile weather patterns also proved to be influential in the country’s move towards aquaculture. More fish can be produced through aquaculture with less staff required than wild-caught fishing, and the process is much less impacted by weather conditions. Additionally, aquaculture is far less reliant on oil than deep-sea fishing boats, which has proven extremely advantageous as the cost of fuel has skyrocketed across the globe.
Throughout 2020-2021, the production volume on fish farms in Australia grew by 24%. Meanwhile, wild-caught fish production only increased by 0.3%. Currently, farmed fish accounts for 43% of all fish produced in the country. The Abares agricultural forecast predicts that aquaculture will continue to rise in popularity, eventually attributing 64% of total seafood GVP by 2027-2028. Although the projections are extremely optimistic, the report does note that the future of the industry is still unknown as demand for certain products, such as red rock lobster, is mainly dependent on income growth and increased consumer spending.
Greater Supply Control Than Other Forms of Fishing
To learn more about the future of aquaculture in Australia, go to TheGuardian.com:
“Valverde said fish farms were less market exposed than wild-caught fish because they had greater control on the supply side.
‘We’re in the fortunate position that if we can’t sell today, we can just leave them in the ponds, they just keep getting bigger and worth more and we can sell them later and always get our money back,’ he said. He added that labour shortages were a bigger concern.
‘What holds us back is not having enough farmers to produce,’ he said. ‘We desperately need more farmers producing to increase supply, but we do have a lot of new people getting into it, because the prices are so good.’”
Are there any countries that you think could become key contributors to aquaculture over the next few years?
Source: ‘If We Want To Eat It, We Have To Farm It’: The Push To Grow Australia’s $2bn Aquaculture Industry - The Guardian
Photo Source: WIX - www.wix.com
Written by AQUAMERGE
March 18, 2023