Value creation in minor fisheries

Transcription

1 If we keep doing what we have always done... Value creation in minor fisheries Dr Janet Howieson (Curtin University) Ewan Colquhoun (Ridge Partners)

2 Value creation in minor fisheries Outline: 1. Issues and challenges for our minor/small-scale fisheries 2. Case studies for change 3. Framework for change

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4 Seafood source and use ranked by GVP $0.5 $0.4 Australian AQUACULTURE Australian WILDCATCH Of the top 30 seafood species by GVP (ABARES 2013): $ Billion $0.3 $0.1 - The Big 10 dominate - The Big 10 are both aqua and wild catch $ of the next 20 are wild catch fisheries Salmonids Prawn Tuna Prl Oyster Barramundi Flathead Sardine Mackerel Scallops Squid Ling Billfish Emperor Silver perch Threadfin

5 Challenge 1: Profitability Economic return of existing products/markets v costs to stay in operation Beach prices may be stagnant or dropping (competition from other protein sources/forms, competition from imports) Operating costs are increasing (diesel, licenses, freight, bait etc.) Impact on operating fisheries Working for less/uncertain income (and associated life impacts) Stop fishing ( underutilised species ), increases risk of losing the fishery.

6 Example: Australian Salmon $3.00 Landed Price $/Kg (nominal) $2.25 $1.50 New South Wales Victoria Western Australia South Australia Tasmania Other/ Comm. $0.75 $

7 3,000 Example: Australian Salmon Harvest (tonnes) 2,250 Tonnes 1,500 New South Wales Victoria Western Australia South Australia Tasmania Other/ Comm. 750 '

8 Challenge 2: Maintaining Support Undervalued by using the usual metrics (AFMF workshop 2014) Lack of recognition of other benefits of these fisheries (e.g. social, regional development, local) Lack of recognition of future potential of these fisheries Management agency support (using current models based on GVP) Representative support Research/economic development support

9 Community Support Often Operate in areas where there is strong recreational interest and the chance of conflict is relatively high (AFMF workshop 2014) Challenge 3: Resource Access

10 Challenge 4: Small Business Realities Time and energy for operations Fishing and harvest Time and energy for all other business issues E.g. Fisheries regulations, compliance and governance, food safety, labelling Time and energy to organise new directions How do I access resources and expertise for the things I want to do? E.g. Collaboration, marketing & promotion, value-adding Succession planning What about the long term? Will the kids want to stay in the business?

11 The trend: Decreasing percentage of young farmers (under 35) % of farm holders < Belgium Denmark Greece Ireland Italy Luxembourg Netherlands Portugal Spain UK Australia US (USDA-NASS, 2012; Barr, 2014;; Eurostat, 2015)

12 Case Studies for Change 1. SA Coorong Cockle Fishery (Pippi) 2. WA Australian Salmon Fisheries (South Coast & Southwest WA) 3. WA Fremantle Octopus Fishery 4. QLD Moreton Bay Fishery 5. WA Peel Harvey Fishery

13 Case 1: Lakes & Coorong Cockle SA

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15 Case 1: Lakes & Coorong Cockle SA Success factors: High quality resource MSC leverage, bait Collaboration between traditional beach fishers and the regulator (SA Fisheries) A real market proposition - value added cockles Leadership by senior fishers and an independent respected chair Cost-benefit move from bait market to niche human consumption Joint investment coming up with the $$investment capital Retail Price up from $7/kg to $11/kg

16 Case 2: WA Australian Salmon

17 Celebrate this heritage fishery with Recreational fishers and coastal communities

18 Case 2: WA Australian Salmon Success Factors: Large resource, not mapped bait markets Falling beach prices/harvest/investment Low collaboration by fishers, processors, peak body and regulator (WA Fisheries) R&D to develop products with real market appeal and margins consumer products + export Strong leadership by senior fishers on driving change Dialogue with recreational fishers and regulator Volume and Margin gain possible to lift beach price and reinvestment

19 Case 3: WA Fremantle Octopus

20 Case 3: WA Fremantle Octopus Domestic marinated range to Coles, Woolworths, IGA and gourmets stores nationally Exports frozen hands to USA (NY), Singapore and Hong Kong. Marinated products to Hong Kong

21 Case 3: WA Fremantle Octopus Success factors: Innovation in catch method: trigger pot and onboard handling to ensure high quality product Development of octopus hands as new consumerready product, and marinated product Motivation to survive fear of failure/loss of livelihood Beach price up from $4.50/kg to ~$12/kg due to value-add, factory modification, leads to increased catch.

22 Case 4: QLD Moreton Bay Seafood Estuarine fishery with >80% comprising Prawns Mullet Bream Garfish Whiting Flathead Trevally Tailor Rabbitfish

23 Case 4: QLD Moreton Bay Seafood Fishery Vision Methods Species Principles Objectives Responsibilit y Duty of Care Environment Food safety Quality Habitat Commercial Recreational Indigenous Community Other users Management Legislation Closures & MPAs Illegal fishing R&D Logbooks Observers Vessel M tce and pollution

24 Case 4: QLD Moreton Bay Seafood Success factors: Fisher agreement to work together to better engage with community and consumers Strengthen fishery s direct connection for quality seafood with local consumers and tourists Establish new (2012) MBSIA Fresh brands and seafood logo Brand linked directly to licensee access to handle product caught in the Moreton Bay Marine Park based on agreed Code of Practice Code of Practice for use of the Moreton Bay Fresh logo and an application form to become a licenced user Changes are yet to deliver price and margin lift

25 Case 5: WA Peel Harvey Fishery Industry champion that links buyers to fishermen Collaboration between fishers and supply chain partners to manage seafood supply volume at agreed quality specs Tight quality control of product from harvest to consumer opens new markets Community engagement (MSC accreditation) Beach price received has doubled over last few years this fishery offers a good quality local white-meat product at competitive prices

26 Our Key Factors for Change 1. Market/end-user driven 2. Collaborate and develop beneficial relationships Between fishers, through the value chain, with managers, with researchers Industry champion/leadership 3. Harness support Valuing fisheries more broadly than economic contribution and viability has merit for small scale fisheries (AFMF workshop 2014) Community support Research/government support Infrastructure support (logistics, storage, processing, distribution) 4. Innovation and informed investment Work with the experts

27 Value Chain Analysis Framework

28 In the midst of difficulty lies opportunity Albert Einstein