Aquaculture floats to the top

Since the launch of the New Zealand Aquaculture Strategy in 2006, some of the impediments to expansion of the industry are being ameliorated – the regulatory regime is being reviewed, the economic benefit of the industry is being more widely appreciated, and Aquaculture New Zealand, formed out of the strategy, is providing a voice for the industry, and helps focus research, market development and legislative reform.

Greenshell mussels make up the biggest proportion of our aquaculture exports – around 75 percent by value in 2008 – followed by King Salmon, a little under 20 percent, and Pacific Oysters – the rest. Worth about $300 million, the industry has a target of $1 billion of sales by 2025.

Sam Lewis, NZTE operations manager food and beverage, says New Zealand aquaculture is well placed to take advantage of rapidly growing global demand for quality protein but the key to future success is to get beyond treating products as commodities.

“We have inherent advantages in the sustainability of our products grown without additives along coastlines washed by vast oceans. The Greenshell mussel is a unique product and the task is to differentiate it – and our other species – to capture additional value.”

Recognition of the premium quality of our products is already happening – in 2008 the three main species attracted higher value coming from decreased or small increases in volume.

Industry players are already investing in new market developments and now the Contestable Market Development Fund has announced an award of $600,000 to five aquaculture projects by Aotearoa Seafoods Limited (ASL), Island Aquafarms Limited, Pacifica Seafoods Limited and The New Zealand King Salmon Company.

The fund is part of the government’s programme of partnering with industry. Criteria specify projects that have the potential to drive growth over the medium to long-term and must be ‘transformational’ – introducing new products to market, developing new production processes, or accessing new distribution channels.
Price makers

Aotearoa Seafoods marketing manager John Grant says his company sees no future in being driven simply by increasing export volumes. “We want to steadily move towards value-added production so that we are price makers, not price takers,” he says.

The fourth largest producer of Greenshell mussels, ASL is one of the businesses owned by Wakatu Incorporation, whose shareholders are descendants of Ngati Koata, Ngati Rurua, Ngati Tama and Te Atiawa.

The company is using the new funding to develop the Korean market and has formed a partnership with a powerful Korean food market entity. “They will be our eyes and ears on the ground in Korea and will provide new retail channels for ready-to-use, packaged and branded products with appropriate flavour profiles for Korean tastes.

“The product will be developed specifically for the Korean market, be produced in New Zealand and shipped ready for the consumer.”

Grant says ASL will test new product in market in the second half of 2009, will act on feedback received, and be in final production before the end of 2010.

Don Everitt, sales and marketing general manager for New Zealand King Salmon Limited – producer of around three quarters of New Zealand’s King Salmon production –says the company’s two projects are aimed at developing markets in the US and Japan. (Funding is not available for its other major market, Australia, because of CER.)