Introduction
1.1
Aquaculture – the farming of aquatic organisms such as fish, molluscs, crustaceans, and aquatic plants – is a global industry that has experienced extraordinary growth in Australia in recent years.
1.2
Estimated to be worth at least $1.5 billion, the aquaculture sector in Australia has a reputation for producing high quality, high value and sustainable seafood and other aquatic products for domestic and international markets.
1.3
This report aims to examine the vast opportunities for aquaculture in Australia, the barriers faced by industry in expanding their operations, and possible improvements to regulation and policy to support a strong Australian aquaculture sector into the future.
Structure of the report
1.4
This report consists of five chapters:
This chapter (Chapter 1) provides an overview of the conduct of the inquiry and an outline of the status of the aquaculture in Australia and the Commonwealth, State and Territory regulatory and policy frameworks which underpin the sector.
Chapter 2 outlines opportunities for innovation and expansion in aquaculture, examining new and emerging models of production, species, markets, and technological innovations.
Chapter 3 addresses the key barriers to growth of the aquaculture industry in Australia, including the risks faced by biosecurity, issues of social license, workforce, and access to investment and research funding.
Chapter 4 examines the standards for the naming and labelling of farmed seafood in Australia and the impact of these standards on consumers’ understanding of the provenance of the products they are purchasing and consuming.
Chapter 5 considers key issues raised about the regulatory and policy frameworks for aquaculture in Australia and proposes solutions to better support the long-term growth of the sector.
Conduct of the inquiry
1.5
On 30 March 2021, the Committee received a referral from the Assistant Minister for Forestry and Fisheries, Senator the Hon Jonathon Duniam, to undertake an inquiry into the Australian aquaculture sector.
1.6
On 1 April 2021, the Committee adopted the terms of reference and commenced the inquiry.
1.7
The Committee called for submissions to be lodged by 14 May 2021 and continued to receive late submissions after this date. A total of 44 submissions were received, listed at Appendix A.
1.8
Due to the ongoing impact of the COVID-19 pandemic, the Committee’s ability to travel was significantly restricted during the inquiry. The Committee travelled to the Northern Territory on 25 and 26 July 2021, where it conducted site visits at Humpty Doo Barramundi Farm, Paspaley Group, and the Darwin Aquaculture Centre; and a public hearing in Darwin.
1.9
The Committee also held a series of public hearings in Canberra, with witnesses appearing from across the country by videoconference. Details of all public hearings held for this inquiry are listed at Appendix B.
Aquaculture in Australia
1.10
World seafood consumption has risen substantially in recent years, but wild-caught production has largely plateaued. Any substantial increase in seafood production will have to be driven by growth in aquaculture. Aquaculture, therefore, forms a critical element of the future of global seafood supply and is the fastest-growing food industry in the world. Estimates put the value of aquaculture at $US243.5 billion in 2019, with the industry providing 52 per cent of seafood for human consumption.
1.11
Australia’s aquaculture industry is small by global standards, accounting for less than 1 per cent world production. But Australia has a reputation for producing safe, sustainable, high-quality and high-value aquaculture products. The Australian aquaculture industry has many advantages over its competitors: the ability to culture a large number of species over a range of climatic zones; access to relatively inexpensive land and water; and freedom from many of the diseases that affect aquaculture in other countries.
1.12
Australian aquaculture sector production in 2019-20 was valued at
$1.6 billion, an increase from $1.5 billion from the previous year. In volume terms, production reached 106,139 tonnes. By comparison, wild-catch production was valued at $1.58 billion, a decrease of 12 per cent from the previous year. The higher dollar value of aquacultural output was reflected in the fact that it represented 38 per cent of the total volume of production of fish but 51 per cent of total value, compared to 62 per cent and 49 per cent respectively for wild-catch production.
1.13
The state/territory breakdown of production by value is as follows:
Table 1.1: Aquaculture gross value production by state/territory 2019-20
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Tasmania
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$ 931 million
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Salmonids, oysters
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South Australia
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$ 229 million
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Tunas, abalone, oysters
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Queensland
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$ 161 million
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Prawns, barramundi
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Western Australia
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$ 84.7 million
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Pearl oysters
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New South Wales
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$ 84.6 million
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Prawns, oysters
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Victoria
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$ 59.7 million
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Abalone, salmonids
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Northern Territory
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$ 48.1 million
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Barramundi
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TOTAL
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$ 1.598 billion
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Source: Department of Agriculture, Water and the Environment, 2022
1.14
In line with the global rise in aquaculture production in the past two decades, Australia’s aquaculture sector has steadily increased its real value and proportional share of fisheries and aquaculture production volume and gross value production (GVP). The gross value of aquaculture in Australia has grown from $605 million in 1998–99, while the value of wild-catch fisheries has remained steady. Production is projected to rise to $1.9 billion in 2025–26. Aquaculture’s share of seafood production has risen from 34 per cent in 2005–06 to 51 per cent in 2019–20. It is forecast to rise to 55 per cent in 2025–26.
1.15
Australian aquaculture production is dominated by Atlantic salmon farming in Tasmania, mainly in coastal waters. According to the Blue Economy Research Centre:
The success of salmon can be attributed to several key factors including how well suited Atlantic salmon are to being farmed, global technology and its exceptional product and culinary characteristics that underpin an expanding domestic market. The establishment and current expansion can be attributable foremost to individuals and industry leadership as well as an environment of supportive State governments and excellent multi-disciplinary research organisations.
1.16
Most of the value of Australian aquaculture production comes from high value species such as pearls, salmonids, tuna and oysters, but over forty species are commercially produced. The top five aquaculture species groups, in order of production value, are: salmonids, tuna, edible oysters, pearl oysters and prawns. Other species groups include: abalone, freshwater finfish (such as barramundi, Murray cod, silver perch), brackish water or marine finfish (such as barramundi, snapper, yellowtail kingfish, mulloway, groupers), mussels, ornamental fish, marine sponges, mud crab and sea cucumber.
1.17
Lack of success in some areas has reflected a global tendency to focus on new aquaculture species and technology before, rather than after, suitable market research. There is potential for growth in tropical prawns and tropical marine white-fleshed fish. Seaweed aquaculture is an emerging sector with great current interest and potential for Australia, although commercial production has not yet commenced.
Who has responsibility for aquaculture in Australia?
1.18
Primary responsibility for the regulation of aquaculture operations lies with state, territory and local governments. Under the Constitution, state and territory governments have primary responsibility for management of land and waters within a state or territory, and management of inland and coastal waters out to the three nautical mile limit. The Commonwealth Government has the responsibility for management of marine waters between the three and two hundred nautical mile limits.
1.19
Each state and territory has its own fisheries or aquaculture legislation that regulates aquaculture production, covering issues such as licensing, land use and planning, food safety, water management, environmental protection and management, biosecurity, biodiversity and conservation. Local government by-laws and planning provisions may provide authorities for the development of aquaculture specific to each local government area.
1.20
Some states have aquaculture legislation, others regulate aquaculture under broader fisheries legislation. In New South Wales, Victoria, Queensland and Western Australia, aquaculture is regulated under general fisheries legislation covering commercial and recreational fishing, and aquaculture. Tasmania has two pieces of legislation relating to marine and inland fisheries respectively. Separate legislation provides for marine aquaculture leases in Victoria (Land Act 1958), Tasmania (Marine Farming Planning Act 1995), and potentially in Queensland (Land Act 1994). In contrast, South Australia has a single dedicated Aquaculture Act (2001, as amended in 2003 and 2005), while Western Australia has dedicated legislation for pearling (Pearling Act 1990).
1.21
In New South Wales, South Australia, Northern Territory and Tasmania, authority for aquaculture lies with their respective Departments of Primary Industry, with the role played by the Department of Fisheries in Western Australia, Department of Agriculture, Fisheries and Forestry in Queensland, and Victorian Fisheries Authority in Victoria. The Australian Capital Territory does not have an aquaculture industry.
1.22
Responsibility for environmental regulation, including the approval of new aquaculture developments and ongoing monitoring and compliance, is generally a matter for state and territory governments. In some cases, the Commonwealth has a regulatory role.
1.23
The Commonwealth Government plays a national role in supporting aquaculture operations through national programs for market access and trade, research, biosecurity, aquatic animal health and export food safety. Environmental management lies under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). The responsible Commonwealth department is the Department of Agriculture, Water and the Environment (DAWE).
1.24
DAWE administers the Export Control Act 2020 and is the regulator for compliance with this Act. This Act provides for the control of the export of fish and fish products and is supported by the Export Control Rules 2021 which set out the operational requirements for exporting fish and fish products from Australia.
1.25
As improvements in technology make aquaculture feasible in Commonwealth waters, the Commonwealth Government will also have a role in ‘enabling state and Northern Territory governments to extend their existing aquaculture legislation and management into Commonwealth waters adjacent to their jurisdictions’.
National Aquaculture Strategy
1.26
In 2014, the Commonwealth Government and the governments of the states and the Northern Territory issued the National Aquaculture Statement which outlined the governments’ key policy commitments and actions, and articulated a number of government expectations of the industry. The Statement was seen as a step in the development of a national aquaculture strategy.
1.27
The governments committed to:
seek to create an environment that encourages investment, growth and profitability by simplifying processes, supporting research and extension, and improve international market access
develop a national aquaculture strategy in consultation with stakeholders to identify actions to create an environment in which the industry can grow
implement and maintain streamlined regulatory and management frameworks
support and recognise the importance of aquatic animal health and biosecurity for a productive aquaculture industry
ensure the continued engagement of the Australian industry and wider community in aquaculture planning and management.
1.28
Acting on the commitment in the Statement to the development of a National Aquaculture Strategy, DAWE consulted with over 100 stakeholders, including state and Northern Territory governments, indigenous committees, research bodies, environmental non-government organisations and over 60 industry bodies and operators. The stakeholders identified a range of issues affecting the industry, including:
problems with the regulatory framework
access to agricultural and veterinary chemicals
need for recognition of the role Aborigines and Torres Strait Islanders
community understanding of the industry
infrastructure deficiencies
domestic and international market access
extension as part of the research and development framework.
1.29
Following the consultative process, the National Aquaculture Strategy was published in 2017.
1.30
According to the then Assistant Minister for Agriculture and Water Resources, Senator Hon Anne Ruston, the Strategy ‘articulates a national vision for unlocking the industry’s potential, identifying priority areas for the industry and Australian governments to address and outlining a range of achievable actions’.
1.31
The Strategy defined a national aquaculture target of doubling the current value of Australia’s aquaculture industry to $2 billion per year by 2027, to be achieved by ‘encouraging development of new industry projects and growth of existing businesses’.
1.32
The Strategy identified eight aquaculture development priorities:
1
Promoting an efficient regulatory framework modelled on established best practice that is transparent and removes unnecessary burden on business
2
Maximising the benefits of innovation in aquaculture through targeted research, development and extension
3
Developing and improving market access for Australian aquaculture products domestically and internationally, capitalising on Australia’s clean and green image
4
Understanding and managing the biosecurity risks through a coordinated approach to protect the aquaculture industry and the Australian environment
5
Improving public perception and understanding of Australian aquaculture as a sustainable industry producing safe and healthy products
6
Continuing to improve the environmental performance of aquaculture, including identifying opportunities for optimising environmental performance through adoption of cost-effective strategies
7
Encouraging and promoting investment in Australian aquaculture
8
Improving training and education for the aquaculture workforce and ensuring future employment needs of the industry are met.
1.33
For each of the eight priorities, the Strategy identified a desired outcome and presented a number of actions required to realise each outcome. The Strategy states that ‘Responsibility for implementing the actions is shared between industry and Australian, state and Northern Territory governments and assumes continuous industry engagement’.
1.34
The actions specified the government and industry partners to be involved in each task, and a set of time frames defined as:
short-term—to be implemented within six months to two years
medium-term—to be implemented within three to five years
long-term—to be implemented within five to 10 years.
1.35
Some actions were identified as ongoing, meaning they are relevant for the life of the strategy.