Facts about the Australian seafood industry

Seafood forms an integral part of Australia's international image.  It is Australia’s fourth most valuable food-based primary industry after beef, wheat and milk.  It is also an important contributor to the Australian economy, valued at $2.3 billion in 2002-03. This represents a decrease of 5.5% on the previous year due to fallen unit values for many species (ABARE and FRDC 2004).  

The Fisheries Research and Development Corporation (FRDC 2000) reports that the ever-increasing world population which is projected to reach 7 billion people by 2020, will drive up the demand for Australian seafood.  Other factors affecting demand will be the expanding numbers of affluent people, particularly in South-East Asia and increasing awareness of seafood’s health benefits.

FRDC has challenged existing data on employment numbers due to its lack of consistency and comprehensiveness.  The suggested figure is over 80,000 people, as opposed to 22,400 as reported by the Australian Bureau of Statistics figure for 1998.

Australian seafood industry worth $2.3 billion
Seafood is Australia’s fourth most valuable food-based primary industry
80,000 people employed in the seafood industry
Greater demand projected for Australian seafood
90% of Australians eat seafood
Seafood exports are high value-added products
Australian seafood is a part of our international image
New environmental focus for seafood industry

References

Fisheries Research and Development Corporation 2000, Investing for tomorrow's fish:  the FRDC's research and development plan, 2000 to 2005, FRDC, Canberra.

ABARE and FRDC 2004, Australian Fisheries Statistics 2003, Australian Bureau of Agricultural and Resource Economics, Canberra

Fisheries Research and Development Corporation, 2001, From Antarctica to the Tropics:  A snapshot of the Australian fishing industry 2001, FRDC, Canberra.

Australian seafood industry worth $2.3 billion

Australian seafood industry production rose by 4.9% in 2002-03 to 249,000 tonnes.  However, the gross value fell by 5.5% on the previous year to $2.3 billion due to falling unit values for many species (ABARE and FRDC 2004).


Western Australia (WA) still remains the largest Australian fisheries producer, its value reaching over $607 million, a decrease of $9.1 million on the previous year. This is followed by South Australia worth just over $473.5 million which is 3.3% less than production achieved in 2001-02 or $15.9 million.  

The tables below provide production figures for each State and Northern Territory, and for the Commonwealth fisheries.

Gross value of Australian fisheries (wild catch and aquaculture) production in 2002-03 state by state:

Note:  Figures below are in $'000 eg. in NSW, the gross value of production is $135,191,000 which appears as $135,191 in the table below.

Total $2,297,386,000 (which includes the Commonwealth fisheries worth $417,029,000)

Aquaculture
Since 1992-93, the real value of aquaculture production has more than doubled from $331 million (in 2002-03 dollars) to $743 million in 2002-03. This represents an annual rate of growth of 8 per cent in real terms. Australia's wild catch fisheries gross value grew at a lesser rate than this. As a result, aquaculture's share of Australia's total fisheries gross value of production increased from 17% in 1992-93 to 32% in 2002-03.

Seafood is Australia’s fourth most valuable food-based primary industry

At $2.3 billion, the seafood industry is Australia's fourth biggest food industry after beef, wheat and milk. Most of its production value is exported overseas to countries such as Japan which is Australia's main export market for edible products, Hong Kong, and the United States.

Export value
The export value to these countries is as follows (rounded to the nearest million):

Japan - $628 million
Hong Kong - $356 million
United States - $152 million

The value of total seafood exports fell by 12% from the previous year to $1.84 billion. This was due to a fall in the quantity exported as well as a decrease in the unit values of different commodities.  The outbreak of SARS (Severe Acute Respiratory Syndrome) in Asia and the consequent fall in exports of live product to Asian markets affected the value of Australia's seafood exports. The lower quantity of crustacean and mollusc exports plus the falls in unit prices of abalone and rock lobster contributed to the decrease.

The appreciating value of the Australian dollar also affected the unit value of many fisheries products. In 2002-03 the Australian dollar appreciated by 11% compared to the US dollar and 6% compared to the Japanese yen when looking at the levels from the previous year.

Tuna, rock lobster, abalone and prawns are the principal edible fisheries exports. Pearls dominate the nonedible exports in terms of export value. The remaining nonedible export products include marine fats and oils, fish meal and ornamental fish.

What our seafood exports are worth in 2002-03

Note:  The figures below are rounded off to the nearest million.

Rock Lobster	$493 million
Prawns	$263 million
Pearls	$404 million
Abalone	$263 million
Scallops	$34 million
Other Crustaceans	$263 million
Tuna	$319 million
Oysters	$4 million

(ABARE and FRDC 2003)

The principal export states are South Australia, Western Australia and Queensland in order of its export value.

80,000 people employed in the seafood industry

There are difficulties in obtaining accurate and reliable data on demographic and employment characteristics of the Australian seafood industry. Reasons for this include:


• The classifications used by the Australian Bureau of Statistics do not reflect our industry’s occupations or industry sectors and most data is available at too broad a level. Typically, seafood industry figures are combined with data from other industries into categories. The aquaculture and processing and distribution sectors are usually combined with, for example, agriculture and food processing.
  
• Surveys often do not adequately identify casual, part-time and seasonal employees and similarly do not take into account the role of women and other family members in supporting family run businesses.
  
• The industry has a predominantly geographically dispersed regional and rural workforce which can pose additional difficulties in obtaining accurate data.
  
• The seafood industry has a national industry training advisory body (ITAB) and a variety of arrangements in different states and territories. In some states the industry is covered by separate ITABs or is covered as part of a larger industry grouping, such as primary industries. This arrangement further exacerbates difficulties listed above.
  
  

As a consequence, anecdotal evidence and personal observations are significant sources of information, especially for the wildcatch sector.

The seafood industry helps contribute to a healthy economy by providing employment and income to thousands of Australian families. The Australian Bureau of Statistics records around 19,600 people directly employed in wild catch, aquaculture, fish wholesaling and processing sectors in 2003. This figure, however, is not consistent with other data on fishing licences, boats and other forms of regulation. In addition, the employment data is not sufficiently broken down to distinguish employment outside these categories. Indirect employment in the commercial sector beyond production and processing – in compliance, transport, storage, wholesaling and retailing – is considerably greater than 19,600. The figure may be as high as 134,000. (FRDC’s Snapshot, 2001)

Greater demand projected for Australian seafood

In 1999 the world’s population reached 6 billion. By 2020 world population is expected to be greater than 7 billion. This will generate increased demand for seafood and place greater pressure on natural resources. Most of this population increase will occur in developing countries. There will be a resulting growth in demand for fish which is low value and can be supplied in bulk. Australia is not in a position to take advantage of this trend.

The increasing number of affluent middle classes in SE Asian countries and in current affluent countries will be a significant factor for Australia’s seafood industry, particularly in relation to high value seafood species and products.  There will be greater competition for higher quality seafood, which in turn will increase demand for Australian seafood. In Australia, with more people eating out and the increased awareness of the health benefits of seafood, the demand will be even greater for Australian seafood.

90% of Australians eat seafood

90% of Australians eat seafood and of this number, most do not catch their own. Commercial fishing provides this essential food for the 90% of Australians who do not catch their own seafood. According to a survey undertaken in 1991, Australian consumers eat around 12kg of fish and seafood per year. About half of the seafood consumed in Australia is produced domestically.

Fresh seafood is more popular

The results of a Sydney survey undertaken in 1999 showed that the average annual consumption of seafood in Sydney is 15.3 kg per person which is higher than the national average (FRDC’s R&D Plan). The survey also showed that another characteristic of the market is that minimal processing is preferred to the point that live fish are often the most valuable option.

Seafood exports are high value-added products

Although Australia's fishing zone is the third largest in the world, our total commercial catch is only about 0.2% of world tonnage. So Australia concentrates on adding value to its seafood by ensuring quality and by meeting consumer preferences.

Australia gets the best deal from its commercial seafood exports because of innovation to add value, and because of large investment in catch, aquaculture, processing and export. Seafood exports are high value-added products (eg farmed tuna, live lobster, pearls, packed prawns). Improved packaging, product differentiation and the adoption of quality management systems are some of the ways that the industry is adding value to production.

A particularly important form of value adding is effective handling and quick delivery by air to local or overseas markets. Electronic commerce via the Internet is being increasingly used as a means for transactions. This is an area for future expansion and exciting opportunities. Seafood Services Australia is encouraging value-adding by helping innovative businesses to target niche markets with premium products and brands.

Australian seafood is a part of our international image

Australian seafood is an integral part of our international image as a clean and environmentally responsible country with an enjoyable climate, innovative cuisine and cosmopolitan culture. More and more tourists seek out Australian quality seafood as a priority. For example, a recent study revealed that 25% of all Japanese tourists visiting Cairns say that to eat Australian seafood was an important reason to visit.

New environmental focus for seafood industry

A three year project to build environmentally focussed management systems across the seafood industry was launched in 2004.  The project which has committed funding of $665,000 from the National Heritage Trust is being undertaken by Seafood Services Australia

There is a general acceptance that sustainable wild harvest and aquaculture fisheries must focus on environmental, social and economic sustainability.  The adoption of environmental management systems (EMS) will deliver benefits to all stakeholders including taxpayers and seafood consumers.