Developing an Australian Seafood Strategy for Export Growth - Stage 1 - Project No. 2004/413 Jayne Gallagher - FRDC
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Developing an Australian Seafood
Strategy for Export Growth
– Stage 1
Jayne Gallagher
Project No. 2004/413
2004/413 Developing and Australian Seafood Strategy for Export Growth – Stage 1 Jayne Gallagher Published by Seafood Services Australia Ltd. October 2005 COPYRIGHT This work is copyright. Except as permitted under the Copyright Act 1968, no part of this publication may be reproduced by any process, electronic or otherwise, without the specific written permission of the copyright owners. Neither may information be stored electronically in any form whatsoever without such permission. DISCLAIMER The authors do not warrant that the information in this report is free from errors or omissions. The authors do not accept any form of liability, be it contractual or otherwise, for the contents of this report or for any consequences arising from its use or any reliance placed upon it. The information, opinions and advice contained in this report may not relate to, or be relevant to, a reader’s particular circumstances. Opinions expressed by the authors are the individual opinions of those persons and are not necessarily those of the publisher or research provider. ISBN: 0-9775587-0-3 By: Jayne Gallagher Seafood Services Australia Level 1 15 Hercules Street Hamilton QLD 4007 Telephone: 1300 130 321 Facsimile: (07) 3633 6776 http://www.seafoodservices.com.au Printed in Brisbane October 2005 SSA Final Report Standard (5 January 2004) Page 2 of 11
TABLE OF CONTENTS
1 NON TECHNICAL SUMMARY ................................................................................................ 4
2 ACKNOWLEDGEMENTS.......................................................................................................... 5
3 BACKGROUND ........................................................................................................................... 5
4 PROJECTED OUTPUTS............................................................................................................. 5
5 OUTCOMES ................................................................................................................................. 6
6 METHODOLOGY ....................................................................................................................... 6
7 RESULTS AND DISCUSSION ................................................................................................... 9
8 BENEFITS AND ADOPTION..................................................................................................... 9
9 FURTHER DEVELOPMENT................................................................................................... 10
10 PLANNED OUTCOMES ........................................................................................................... 10
11 CONCLUSION ........................................................................................................................... 10
12 LIST OF ATTACHMENTS....................................................................................................... 11
12.1 Attachment 1: Project Brief ..............................................................11
12.2 Attachment 2: National Seafood Export Forum ...............................11
12.3 Attachment 3: Australian Seafood Strategy for Export Growth –
Literature Review.............................................................................11
12.4 Attachment 4: Australian Seafood on the Global Menu – draft ........11
12.5 Attachment 5: Letter of support from Australian Seafood Industry
Council.............................................................................................11
12.6 Attachment 6: Letter of support from National Aquaculture Council
Inc....................................................................................................11
SSA Final Report Standard (5 January 2004) Page 3 of 111 NON TECHNICAL SUMMARY
2004/413 Developing an Australian Seafood Strategy for Export
Growth – Stage 1
PRINCIPAL INVESTIGATOR: Jayne Gallagher
ADDRESS: Seafood Services Australia
PO Box 2188
1/15 Hercules Street
Hamilton QLD 4007
Telephone: 1300 130 321 Fax: 07 3633 6776
OBJECTIVES:
To develop a national strategy to achieve significant export growth for
Australian seafood by:
Establishing agreed national export growth targets
Identifying priority opportunities to achieve these export growth targets,
including feasibility assessments
Identifying impediments to export growth
Establishing on going processes to take advantage of opportunities for
maximising export growth and to address identified impediments.
Achieving these aims required funding in three phases, Scoping, Pilot and
Commercialisation. Each phase was to be separately funded with triggers on
whether or not to continue the project at strategically important points.
This project dealt with Scoping (phase one) and involved a literature search,
an industry survey and focus groups. Information and analysis was presented
to an industry forum held in Melbourne in February 2004. A number of
outputs were produced including a draft strategy “Australia Seafood on The
Menu” NFIS Ltd has since further created the Seafood Enterprise Alliance to
refine and implement agreed actions. The two remaining phases, Pilot and
Commercialisation were to occur subsequent to the findings of phase one.
OUTCOMES ACHIEVED
The Australian seafood industry and industry stakeholders have committed to
forming an Australian Seafood Promotion Body and will use the outputs of this
project as inputs to the development of a business and operational basis for
further activity
KEYWORDS:
industry development, export, trade, capacity building, market research
SSA Final Report Standard (5 January 2004) Page 4 of 112 ACKNOWLEDGEMENTS
The funding partners in this project were the NFIS Ltd, WA Fisheries and
Seafood Services Australia Ltd. Funding for Seafood Services Australia’s
involvement was provided by the Australian Government’s Fisheries
Research and Development Corporation through the Seafood Industry
Development Fund.
3 BACKGROUND
The Australian seafood industry is a significant contributor to the Australian
economy, with exports in excess of $2 billion in 2001-02 and a multiplier
effect estimated to be around $10 billion.
Seafood products from Australia are highly regarded on the international
market, with many suppliers having a long history of consistent high quality
supply, with some seafood varieties being unique to Australian waters. This
presents many potential opportunities for export growth for the Australian
seafood sector.
It was recognised that there was no strategic process to enable opportunities
to be identified and capitalised upon, thereby allowing Australia to realise the
benefits of maximising the potential growth.
4 PROJECTED OUTPUTS
A number of outputs were expected to occur through this project. These
included:
An agreed seafood industry vision for increasing export market value.
An analysis of key seafood industry export market development
opportunities including:
o Identification of the top 5 priority export market opportunities for
Australian seafood.
o A model pilot project to trial a supply chain into a priority market
opportunity and a road map to achieve that (Phase 2).
o A draft action plan for addressing impediments to maximising
export growth.
SSA Final Report Standard (5 January 2004) Page 5 of 115 OUTCOMES
This project formed the basis for the development of a national
industry/government partnership to achieve agreed export growth targets for
the Australian seafood industry.
Long-term benefits of an improved export performance by the seafood
industry are expected to include increased economic returns resulting in
stronger rural and regional communities.
Increasing economic performance without increasing pressure on Australia’s
limited and unique fisheries resources, and maximising the opportunities
offered by the growth of the Australian aquaculture industry are added
benefits of having a national strategy.
6 METHODOLOGY
A full time project manager was engaged to undertake research and consult
with key industry leaders and associated seafood industry stakeholders to -
• Analyse current and potential markets not yet being fully exploited
• Identify cultural and institutional barriers to maximising opportunities
• Match market opportunities with supply capabilities (capacity to meet
customer requirements)
• Develop a model for testing an identified market opportunity.
This methodology is summarised in Figure 1.
SSA Final Report Standard (5 January 2004) Page 6 of 11Seafood Services Australia National Food Industry Strategy Ltd WA State Government
(SSA) (NFIS Ltd) Department of Fisheries
Agree Project Brief
and Contract Parties
State / Federal Government Peak Industry Body Support
Investment and Commitment Australian Seafood Industry Council (ASIC)
Investment and Commitment
Literature Search for Existing Materials
on Related Matters
Key Industry Leaders Group
Survey Focus Group
Trade and Market Access Forum
National Workshop
Prioritise Opportunities
Final Report including -
Road Map for Stage Two
Preliminary Impediment Action Plan
FIGURE 1: ASSEG DEVELOPMENT STRATEGY
SSA Final Report Standard (5 January 2004) Page 7 of 11 Page 7 of 11Following the appointment of the project manager the project proceeded in
stages as follows:-
6.1.1.1 Stage 1: Project Commencement
6.1.1.2 Key Activities:
Project Team meet in Melbourne
Completed Project Brief and Summary
Agreed Corporate Governance issues
NFIS Ltd, WA Department of Fisheries and SSA signing off on project
brief.
Stage 2: Initial Research
6.1.1.3 Key Activities:
Analysis of existing trade and market access research relating to the
Australian seafood and other relevant industries. Including -
o Benchmarking market performance against competitors
o Identifying strengths and weaknesses of seafood industry
performance
o Summarising existing literature to synthesise information,
including strategic recommendations and the highlighting of
commonly identified criteria for success.
Contacted the ASIC Trade and Market Access Committee. Followed by
distribution of project summary, and a personal approach by project team
to stimulate participation in the project. Commence identification of key
industry leaders and focus group members.
Telephone contact with identified industry leaders seeking opinions on
issues arising from literature search. Project manager will seek
nominations for focus group participation. Focus group identified.
Key industry leaders group formed the hub of network for information,
communication and support
Stage 3 – Focus Group and Surveys
Key Activities:
Communications consultant engaged to develop survey methodology and
instruments (including written and personal interview techniques).
Market intentions survey undertaken and analysed to gain insights into –
o potential growth areas in a five and ten year timeframe,
o where growth is expected to occur i.e.
Sector/Product/Species/Form;
o Impediments to maximising export growth.
o perceptions of Australian seafood industry performance
o customer targets i.e. retail, hospitality, catering etc
o predictions of “the next big thing” in Australian seafood
Synergies from survey and literature search findings identified.
SSA Final Report Standard (5 January 2004) Page 8 of 11Stage 4 – National Trade and Market Access Forum
Key Activities:
Conducted National Trade and Market Access Forum for the seafood
industry in Melbourne
National export growth targets explored
Export growth opportunities identified through the project prioritised
Actions and responsibilities for removing impediments to maximising
export growth identified.
7 Results and Discussion
A large number of seafood industry members and seafood industry
stakeholders participated in meetings, discussions and surveys. The results
of these activities are summarised in the following attachments:
• National Seafood Export Forum outcomes (Attachment 2)
• Literature Review – Australian Seafood Strategy for Export Growth
(Attachment 3)
• Australian Seafood on the Global Menu – draft action plan (Attachment
4)
The discussions and meetings were robust with many differing views
expressed. The diversity of business objectives, due to sectoral, regional and
financial differences made it impossible to agree on overall export targets. It
was possible however to agree on a process for examining the potential for
an Australian Seafood Brand. It was also agreed that this process would be
an inclusive one and involve a range of businesses so that the diversity of
views could be considered and accounted for in any nationally collaborative
seafood promotional effort.
A need to consider the global market for Australian seafood as a whole rather
than as separate domestic and export markets was unanimously agreed
upon. This is reflected in the draft action plan “Australian Seafood on the
Global Menu”.
8 Benefits and Adoption
The diversity of people and businesses involved in this project is its strength.
Benefits accrued to individuals through the networking opportunities afforded
through meeting people from other areas in Australia facing similar
challenges in marketing their product. At a seafood industry collective level
the benefits of reaching a common understanding of the issues affecting the
market performance of Australian seafood will provide an excellent basis for
developing collaborative solutions on either sectoral, regional or national
scales.
SSA Final Report Standard (5 January 2004) Page 9 of 119 Further Development At the time this project was undertaken there were a number of concurrent initiatives with similar objectives. In particular the National Aquaculture Action Plan Seafood Branding initiative and the findings that are being brought forward through that process need to be incorporated into any further work on developing an Australian Seafood Strategy for Growth. The National Seafood Export Forum recommended that a small group be formed to further develop an Australian Seafood Promotion Strategy. The groups, to be known as the SEA, was to be formed in collaboration with ASIC, FRDC and the NAC and was to be independently chaired. It was tasked with further developing the Strategy by investigating current sectoral, regional and national initiatives and recommending the way forward to Seafood Directions 2005. 10 Planned Outcomes It was expected that this project would provide a basis for the development of a national industry/government partnership to achieve agreed export growth targets for the Australian seafood industry Longer term it is expected that the benefits of an improved export performance by the seafood industry will provide increased economic returns resulting in stronger rural and regional communities. Increasing economic performance without increasing pressure on Australia’s limited and unique fishery resources, and maximising the opportunities offered by the growth of the Australian aquaculture industry are potentially added benefits of developing an agreed national strategy. While some of these expected outcomes have not yet been achieved the basic ground work has been laid for achieving them in the future. Phases 2 and 3 need to be undertaken to further demonstrate the benefits of collaborative seafood promotion activities and thereby enhance the chances of the planned outcomes being realised. 11 Conclusion The basic ground work has been done to enable the Australian Seafood industry to work collaboratively towards meeting the challenges of the globalisation of seafood markets. Further success will depend on the ability of industry leaders to build the capacity within the industry, and to facilitate a collaborative process that takes advantage of Australia’s clean green credentials and thereby improve the overall returns for Australian seafood in the global market. SSA Final Report Standard (5 January 2004) Page 10 of 11
12 LIST OF ATTACHMENTS
12.1 Attachment 1: Project Brief
12.2 Attachment 2: National Seafood Export Forum
12.3 Attachment 3: Australian Seafood Strategy for Export
Growth – Literature Review
12.4 Attachment 4: Australian Seafood on the Global Menu
– draft
12.5 Attachment 5: Letter of support from Australian
Seafood Industry Council.
12.6 Attachment 6: Letter of support from National
Aquaculture Council Inc.
SSA Final Report Standard (5 January 2004) Page 11 of 11Attachment 12.1
PROJECT BRIEF
AUSTRALIAN SEAFOOD – STRATEGY FOR EXPORT GROWTH
PHASE 1 – OPPORTUNITIES AND IMPEDIMENTS
AIM
To develop a national strategy to achieve significant export growth for Australian seafood by:
Establishing agreed national export growth targets
Identifying priority opportunities to achieve these export growth targets, including
feasibility assessments
Identifying impediments to export growth
Establishing on going processes to take advantage of opportunities for maximising export
growth and to address identified impediments.
In order to achieve these aims it is logical to divide this project into three distinct phases,
Scoping, Pilot and Commercialisation. Each phase will have separate funding applications
and approvals required with triggers on whether or not to continue the project at strategically
important points.
Phase 1. – Identify priority market opportunities for Australian seafood in export markets.
Phase 2. – Identify supply chain partners and analyse a pilot project for supply into the
preferred market.
Phase 3. - Develop options for the commercialisation of the piloted supply chain into the
preferred market.
This document deals with the Scoping (phase one) of the project in a level of detail. The two
remaining phases, Pilot and Commercialisation will require further detail subsequent to the
findings of phase one.BACKGROUND
The Australian seafood industry is a significant contributor to the Australian economy, with
exports in excess of $2 billion in 2001-02 and a multiplier effect estimated to be around $10
billion.
Seafood products from Australia are highly regarded on the international market, with many
suppliers having a long history of consistent high quality supply, with some seafood varieties
being unique to Australian waters. This presents many potential opportunities for export growth
for the Australian seafood sector.
At this point there is no strategic process to enable opportunities to be identified and capitalised
upon, thereby allowing Australia to realise the benefits of maximising the potential growth.
This project will establish a process that provides a sound basis for targeting investment and
achieving sustainable export growth.
INVESTORS
Investors in Phase 1 are the National Food Industry Strategy Ltd, WA Department of Fisheries,
Seafood Services Australia Ltd and the Australian Seafood Industry Council.
PROJECTED OUTPUTS
A number of outputs are expected to occur by undertaking this project. These include but are not
limited to:
An agreed seafood industry vision for increasing export market value.
An analysis of key seafood industry export market development opportunities including:
o Identification of the top 5 priority export market opportunities for Australian
seafood.
o A model pilot project to trial a supply chain into a priority market opportunity and
a road map to achieve that (Phase 2).
o A draft action plan for addressing impediments to maximising export growth.
OUTCOMES
This project will form the basis for the development of a national industry/government
partnership to achieve agreed export growth targets for the Australian seafood industry.
Long-term benefits of an improved export performance by the seafood industry will include
increased economic returns resulting in stronger rural and regional communities.
Increasing economic performance without increasing pressure on Australia’s limited and unique
fisheries resources, and maximising the opportunities offered by the growth of the Australian
aquaculture industry are added benefits of this national strategy.
APPROACH
A full time project manager will be engaged for 6 months to undertake research and consult with
key industry leaders and associated seafood industry stakeholders to -
• Analyse current and potential markets not yet being fully exploited
• Identify cultural and institutional barriers to maximising opportunities
• Match market opportunities with supply capabilities (capacity to meet customer
requirements)
• Develop a model for testing an identified market opportunity.Seafood Services Australia National Food Industry Strategy Ltd WA State Government
(SSA) (NFIS Ltd) Department of Fisheries
Agree Project Brief
and Contract Parties
State / Federal Government Peak Industry Body Support
Investment and Commitment Australian Seafood Industry Council (ASIC)
Investment and Commitment
Literature Search for Existing Materials
on Related Matters
Key Industry Leaders Group
Survey Focus Group
Trade and Market Access Forum
National Workshop
Prioritise Opportunities
Final Report including -
Road Map for Stage Two
Preliminary Impediment Action PlanMETHODOLOGY
Milestones
The following milestones shall apply unless otherwise negotiated between NFIS Ltd
and the Department of Fisheries.
Milestone 1 – Project commencement
Date due September 29, 2003
Key Activities
Project Team meet in Melbourne
Complete Project Brief
Complete Project Summary
Agree Corporate Governance issues
Contract signed
NFIS Ltd, WA Department of Fisheries and SSA to sign off on
project brief.
Milestone 2: Initial research
Date due: 29 November 2003
Key Activities
Undertake analysis of existing trade and market access research relating to the
Australian seafood and other relevant industries. Including -
o Benchmarking market performance against competitors
o Identifying strengths and weaknesses of seafood industry performance
o Summarising existing literature to synthesise information, including
strategic recommendations and the highlighting of commonly
identified criteria for success.
Initial contact with the ASIC Trade and Market Access Committee. Followed by
distribution of project summary, and a personal approach by project team to
stimulate participation in the project. Commence identification of key industry
leaders and focus group members.
Telephone contact with identified industry leaders seeking opinions on issues
arising from literature search. Project manager will seek nominations for focus
group participation. Focus group identified.
Key industry leaders group to form the hub of network for information,
communication and support
Milestone 3 – Focus Group and Surveys
Date due: 20 January 2004
Key Activities
Communications professional to be engaged to develop survey methodology and
instruments (including written and personal interview techniques).
Based on market intentions undertake and analyse survey to gain insights into –
o potential growth areas in a five and ten year timeframe,
o where growth is expected to occur i.e. Sector/Product/Species/Form ;
o impediments to maximising export growth.
o perceptions of Australian seafood industry performance
o customer targets i.e. retail, hospitality, catering etc
o predictions of “the next big thing” in Australian seafood
Identification of synergies from survey and literature search findingsMilestone 4 – National Trade and Market Access Forum
Date Due: 19 March 2004
Key Activities
Conduct National Trade and Market Access Forum for the seafood industry in
Melbourne
Establish agreed national export growth targets
Prioritise export growth opportunities identified through the project
Identify actions and responsibilities for removing impediments to maximising
export growth
Milestone 5 – Final Report
Date Due: 26 March 2004
Key Activities
Assess and report on the feasibility of the top five opportunities
Develop draft road map that specifies the parameters to determine priority
markets/product matches for Australian seafood pilot project.
Draft action plan to address impediments and take advantage of the opportunities
for maximising export growth
Milestone / Funding Summary Schedule
Milestone Activity Funding Other Funding
Required
Milestone 1 Contract signed by 12 September Cash WA DoF, NFIS, SSA
Due: 29 2003, Project Management Team contributions (in kind)
September established $20,000 from
2003 NFIS, $5 000
SSA
Project Manager commenced WA DoF (in kind)
Milestone 2 Literature search, Initial peak industry Cash contribution ASIC, NFIS, SSA (in
Due: 28 and government contacts, Key $20,000 from kind)
November industry leaders interviewed. Focus NFIS
2003 group identified,
Milestone 3 Trial surveys completed, survey Cash
Due: 30 instruments refined. Initial analysis of contributions
January survey completed. $20,000 from
2004 NFIS, $5 000
SSA
Milestone 4 Complete focus group surveys and Cash contributions
Due: 19 analyse results, Analysis against $8,000 each from WA,
March 2004 literature search, refine road map for Qld, SA, Tas, Vic and
Stage 2 in consultation with key NSW Governments
industry leaders group
Conduct National Trade and Market
Access Forum to draft action plan to
address impediments to growth
Milestone 5 Complete Final Report including draft Cash
Due: 26 Australian Seafood Export Growth contributions
March 2004 Strategy including a road map to take $5000 from NFIS
advantage of opportunities and a draft
action plan to address impediments to
growth.Attachment 12.2
National Seafood Export Forum
Melbourne February 24, 2004
Outcome Notes
Executive Summary
The National Seafood Export Forum was convened to report back to the seafood
industry and associated stakeholders the findings of the industry and government
consultations and research for the Australian Seafood – Strategy for Export Growth
(ASSEG) project and to workshop these findings.
Outcomes of this forum include-
Australian seafood industry leaders agreed to -
i Develop and implement a coordinated 5-year plan with the goal of doubling
the value of exports, with the aim of increasing enterprise profitability.
ii Adopt a “Seafood - Brand Australia” approach to the marketing and promotion
of Australian seafood within an “Australian Food Brand” position.
iii Seek support from the National Food Industry Strategy Ltd and other
organisations to:
a) undertake research in Australia and selected overseas markets to better
understand the needs of consumers and new markets and assess Australia’s
capacity to meet those needs.
b) undertake coordinated in-market pilot projects to demonstrate returns on
investment to individual companies, through such activities.
c) assist seafood exporters gain practical marketing and export experience and
knowledge through the establishment of a mentoring program.
d) facilitate the development of a specialist seafood export marketing entity,
which has broad support from industry.
e) further develop the capacity of industry to engage with government on trade
negotiations, technical barriers to trade and related matters.
iv Assess the benefits for and develop the basis for expanding the existing
industry trade show initiatives under the generic “Seafood - Brand Australia” banner
within an “Australian Food Brand” position.Background
The ASSEG project is a joint initiative of the National Food Industry Strategy Ltd,
The Department of Fisheries WA and Seafood Services Australia (Attachment 1 –
ASSEG Project Summary).
The aim of the ASSEG project is -
To develop a national strategy to achieve significant export growth for Australian
seafood by:
Establishing agreed national export growth targets
Identifying priority opportunities to achieve these export growth targets,
including feasibility assessments and a demonstration pilot project
Identifying impediments to export growth
Establishing ongoing processes to take advantage of opportunities for
maximising export growth and to address identified impediments.
A more detailed background is available in the National Seafood Export Forum
Background Papers (Attachment 2). These papers outline the extensive and
collaborative process that has been undertaken to identify issues and opportunities
with in excess of 250 stakeholders involved in face-to-face consultations.
Purpose
A key activity in ASSEG phase one is the National Seafood Export Forum to set
priorities for the development of –
• an in-market demonstration project
• ongoing processes to address impediments and capture opportunities.
The forum is a report back to stakeholders of ASSEG research to date, including an
extensive consultation and literature review process. Participants will workshop this
research to give stakeholder direction in achieving the aims as outlined above.
The Forum has brought 80 key stakeholders to the table to deliver the following
outcomes.Structure
The Forum consisted of seven tables of ten people with a plenary session after the
Setting the Scene and Target Setting (Attachment 3 and 4) presentations. The
workshop sessions following The Story So Far (Attachment 5) and Getting to Market
were facilitated by contributing table members, reporting back to the plenary session.
Throughout the process participants from the floor were asked to paraphrase key
messages from sessions.
Process
Opening :
Michael Williams – Facilitator
A self-introduction by all forum participants
Welcome:
Richard Brooks, Managing Director of the National Food Industry Strategy Ltd
welcomed forum participants. In doing so Richard highlighted the following points,
The seafood industry -
• Has high potential to expand and grow
• Lacks an effective support structure with a market focus
• Is currently fragmented
• Looks unlikely to reach full potential without a shared view
• Is enduring a tough time, with profits taking a hammering in the last year
• Must invest in marketing and merchandising to keep pace with other industries
and sectors
• Must lead the way and to be in charge of its own destiny.
• Has been engaged by NFIS to clarify areas of opportunity and assist in turning
them into reality, and
• Stressed that NFIS Ltd would be looking for consensus toward opportunities
during forum proceedings.
The Australian Seafood Industry 2004:
Russ Neal, CEO Australian Seafood Industry Council.
Russ set the scene for the forum making the following key observations –
• Gross Value of Production down from $2.41 b to $2.3 b last year
• Australian seafood industry has averaged 10% growth per year
• Volumes have continued to increase for exports, however the value has
decreased.
• Industry has tremendous potential for future growth
• Negotiations continue on trade barriers and tariffs, an example of a target
being Europe that has tremendous potential markets, with another ten
countries to join current 15 in the EU
• The US Free Trade Agreement has resulted in 48 tariffs on seafood being
removed.
• The seafood industry is the only primary industry without a marketing armComments from the floor included:
• Industry is in crisis, NFIS offers a great opportunity
• No marketing and promotion of Australian seafood within Australia
• Today can be a starting point
• Australian seafood is looking for value
• One industry but made up of many parts, needs a major restructure to create
collective volume
• Industry should be looking to the future – not the past
• The whole supply chain need to be focussing on growth
• Need some lateral thinking – How do we increase Australian exports?
• Australia has the best seafood in the world and there is a need to promote that
as one.
• Need to develop a strategy
Target Setting
The scene for target setting was to be set by FRDC Executive Director, Peter Dundas-
Smith. Unfortunately Peter was ill on the morning of the forum and unable to attend.
Peter contributed an overhead of his “Input / Output” model on where growth was
likely to come from for the Australian seafood industry.
Don Nicholls presented on behalf of Peter Dundas – Smith, including the following
salient points -
• Export growth can be achieved by two means – sell more fish or get greater
value for the existing production.
• There may be an opportunity for increasing volumes in aquaculture, however
wildcatch in general does not have this ability.
Sell more fish scenario:
Catch more fish by –
o Discovering more fisheries
o Increasing TAC’s
o Marketing under-utilised species
Grow more fish by –
o Increasing current species production
o Developing new aquaculture species
The majority of these were considered to have a low feasibility, with increased
aquaculture production rating a moderate feasibility for achieving growth.
Increase value for existing production scenario:
o Increase marketing / promotion into existing markets
o Find new markets
o Value add through –
Quality
New products
Effective supply chains
These were considered to have moderate to high feasibilities.Conclusion - Increasing the value of the product is considered to be the better
option.
ASSEG consultation revealed industry market intentions varying from 50% growth
per annum, through to enterprises that were contracting export activities.
A scenario planning model for growth was outlined by Don Nicholls with a number of
factors affecting growth being considered in the differing scenarios –
Factors outlined included - war, terrorism, health / disease outbreak, natural disasters,
exchange rates, airfreight etc. These factors were considered in setting four separate
scenarios 18%, 16%, 6% and 2% growth targets (Attachment 3). These scenarios were
based on literature revealed in the ASSEG project research.
The target initially suggested was for 6% growth – meaning that the seafood industry
would double in 11 years. Participants indicated that this scenario was too
conservative and while the growth rate was not considered important, the proposition
that industry should double exports was accepted.
Points made from the floor included –
• A need for cohesion and orderly targeted marketing
• Value creation can be achieved by targeted and coordinated marketing
• A need to build an export market through understanding the needs of the
market and meeting those market expectations
• There is a need to understand where you are going to position yourself –
whether that is low end or high end.
The Story So Far…
Don Nicholls presented the ASSEG project process and stressed the importance of the
input of the almost three hundred people who took part in the consultation process and
the high quality of the information provided.
The importance and quality of the literature review that comprised in excess of one
hundred relevant publications and papers was also emphasised. This information was
summarised into discussion points to be workshopped.
Discussion points of 9 potential opportunities were given with a request for additional
opportunities to be added. Through this process a number of priority criteria were
identified. The overwhelming theme from participants was that a coordinated
approach was needed in creating value.
The preferred markets for feasibility assessment were the key existing markets and the
US and European markets. With a point made that existing markets should be
consolidated as well as new markets developed.
The market characteristics that were identified as priorities to be capitalised upon
included –
• Coordinated generic promotion
• Seafood – Brand Australia – underpinned by standards
• Promote quality• Promote sustainability
• Target top end sectors - fine dining, hotels, high-end retail
• Promote Clean / Green
• Promote food safety
• Adding value
• Convenience
• Closer to end users / improved supply chain practices
• Alliances where possible
• Consider barriers to entry
Getting to Market
Given that the forum had identified a need for a coordinated effort to get to market, a
question was posed, “What does the strategic framework need to deliver to achieve
industry commitment and investment?”
and “What would it look like?”
The participant response to the initial question had strong synergies identifying
priorities that should be addressed. These priorities were –
• develop a specialist seafood export marketing entity, which has broad
support from industry.
• develop a five-year plan
• coordinate generic promotion under a “Seafood - Brand Australia”
approach to the marketing and promotion of Australian seafood within
an “Australian Food Brand” position
• undertake market research in Australia and selected overseas markets
that assists industry to meet the needs of consumers and new markets.
• improve practical marketing and export performance in the industry,
with an emphasis on mentoring new and emerging exporters.
• demonstrate return on investment through in-market pilot projects. (eg
the NFIS Ltd Dubai project, which is bringing commercial parties
together to develop new export opportunities.
• liaise with government on trade negotiations, technical barriers to trade
and related matters.
• develop the existing industry trade show initiatives under the generic
“Seafood - Brand Australia”.
• there should be a focus on improvement of performance in existing
markets as well as developing new markets.
• activities that cater for sectors with different stages of maturity and
differing needs.
• activities should not try to duplicate the activities undertaken by
enterprises such as a sales function.
A point to note was that there are areas of commonality between domestic and export
markets. The ASSEG project however has been specifically targeting export issues.
Common responses to the “What would it look like?” question were -
• National• Sustainable
• Industry based
• Expertise based
• Market driven
• Through chain
• Not a bureaucracy
There were mixed reports on whether there should be a new body created and also on
how a “board”, “committee” or other guiding structure may look, with varying
opinions on states or sector representation. There was agreement on the fact that it
should be the people who are in the business of exporting that set the direction.
Several structural models were also proposed during the course of the day, including
existing models based on the “Food Adelaide” model, Meat and Livestock Australia,
and new structures including the “Australian Seafood Export Promotion Council” ”
and discussion on whether it should be inside or outside the Australian Seafood
Industry Council.
Comments from the floor included –
• Industry has achieved results without coordination, efficient supply chains and
other issues. What could be achieved if these factors were well catered for?
• If industry does this right we are sure to succeed in regaining market share.
• This initiative will engender a fresh new vigour in industry and industry
should work towards this vision.
• Industry is self-help and is undertaking a proactive activity through this
process.
Close
Minister for Agriculture, Fisheries and Forestry, The Honourable Warren Truss closed
the forum with key points from his speech including -
• A plan is no good unless it drives change in the industry
• There is a need to act to preserve Australia’s position
• Australia’s share of value added market has declined
• A recognition of the key role that the seafood industry has played, with a
potential to achieve a lot more
• The need for a strategy to insulate exporters against global events
• US Free Trade Agreement, US is Australia’s third most important seafood
market
• Industry will reap the benefits of eliminating 48 tariffs
• Second guide to exports to be released by DAFF – EU followed by China
• Industry must not put all their eggs in one market
• Testing procedures – EU many markets becoming more prescriptive and may
make access more difficult
• Philippines and EU are challenging Australia’s quarantine system
Close – Richard BrooksIn summing up and giving a where to from here Richard touched on the following
points-
• Need for self-help, with industry taking the initiative
• Industry has achieved substantial success but has not achieved its full potential
• This group has recognised a need for a shared 5-year plan
• NFIS a catalyst to facilitate this strategy
• There has been some concern expressed that industry has too many bodies.
Does this need a new body?
• How will this body be structured?
• There seems to be a desire for standard to underpin the “Australian Seafood
Brand” – If under “Brand Australia”, there is a need for commitment to
support that brand from other sectors
• A need for a market focussed / consumer view
• There seems to be interest in trade fairs as a vehicle for promotion
• You can be assured that NFIS Ltd will take action and will feed back to this
group.
Summary
Australian seafood industry leaders agreed to a course of action that can be
summarised under the following headings -
Australian Seafood Promotion
• facilitate the development of a specialist seafood export marketing entity,
which has broad support from industry.
• adopt a “Seafood - Brand Australia” approach to the marketing and
promotion of Australian seafood within an “Australian Food Brand”
position.
World Market Development
• undertake coordinated in-market pilot projects to demonstrate returns on
investment such as the NFIS Ltd, Dubai project.
• assess the benefits for and develop the basis for expanding the existing
industry trade show initiatives under the generic “Seafood - Brand
Australia” banner within an “Australian Food Brand” position.
Capability and Capacity
• undertake research in Australia and selected overseas markets to better
understand the needs of consumers and new markets and assess Australia’s
capacity to meet those needs.
• assist seafood exporters gain practical marketing and export experience
and knowledge through the establishment of a mentoring program.
Supportive Business Environment
• implement a coordinated 5-year plan with the goal of doubling the value of
exports, and the aim of increasing enterprise profitability
• further develop the capacity of industry to engage with government on
trade negotiations, technical barriers to trade and related matters.It was resolved that industry would seek funding support from the National Food Industry Strategy Ltd and other organisations to undertake activities that would facilitate these outcomes in the most effective manner.
Attachment 12.3
National Food Industry Strategy Ltd
in conjunction with
Seafood Services Australia and the
Western Australian Department of Fisheries.
Australian
SEAFOOD SERVICES
AUSTRALIA Seafood Strategy
for Export Growth
Literature Review
February 2004
Prepared by MarkeTradenational food industry strategy ltd
a u s t r a l i a n s e a f o o d s t r a t e g y f o r e x p o r t g ro w t h page i
Executive Summary
A fundamental aim of the Australian Seafood Strategy for Export Growth Project is to develop a national,
industry-driven strategy to achieve significant export growth for the seafood sector, which includes wild
caught and farmed product. Phase One of the Project included a literature review of export markets,
opportunities, impediments and priorities. This summary presents key findings from the literature review.
Key findings on Australia’s fisheries production and exports include:
• In 2002 Australia’s total (edible) fishery production was an estimated 233,350 tonnes, valued at
$2.23 billion, with exports of 64,291 tonnes of edible fisheries products valued at $1.66 billion.
• Australia’s wild caught production is expected to plateau at around 65,000~70,000mt or $1.8~2.0
billion (or at best grow 5% annually through improved fishery yields and value adding).
• Australia’s aquaculture production is expected to grow at around 16% annually from 44,000mt or
$557 million in 2001-02 (from increased production and improvements to productivity).
• Anticipated growth in Australia’s aquaculture production is well placed to capture increases in
domestic consumption, export markets and the replacement of Australia’s rising seafood imports.
• Australia’s main exports are rock lobster, tuna, prawns and abalone, predominantly to the Asian
markets of Japan, Hong Kong, China, Taiwan, Thailand and Singapore.
• During 1997-98 to 2001-02, the highest annual growth in Australia’s exports has been sales to
Greece, France, Malaysia, Spain, Italy (from a low base) as well as Thailand and Hong Kong.
Key findings on future world production and trade in seafood include:
• World trade is expected to increase significantly in live/chilled/fresh finfish, frozen whole fish and
fillets, mostly to developed markets in USA, EU and Asia (Taiwan, Japan, Hong Kong, Singapore).
• Real prices for low-value finfish are expected to increase by around 6% during 2000-2020, and
15% for crustaceans and high value finfish. Real prices could rise by up to 69% by 2020 if capture
fishery stocks become threatened.
• Trade in seafood is becoming increasingly consolidated through large-scale, global ventures and
producers, stimulating market competitiveness and resource development.
• World demand/supply of value-added seafood is increasing, with a larger variety of products,
higher utilisation of fish, and advances in refrigeration, processing and packaging.
• Increased supply/trade in aquaculture products is stimulating competition with wild-caught
fisheries, raising consumer/market standards for supply consistency, uniformity & quality handling.
• Forecasted increase in net imports of fishery products among developing and developed countries.
• Forecasted higher levels of competition among low-value fish/fishery products.
• Forecasted increase in demand and prices for high-value fish/fishery products.
Key findings on global seafood consumption and demand include:
• World demand for fish and fishery products is expected to grow at around 2.1% annually.
• Fish consumption is expected to be highest in Japan/East Asia, followed by the Nordic countries
and North America. Asia-Pacific is expected to account for two-thirds of fish consumption.
• In developed countries, consumption and demand is expected to be driven by imports of high
cost/high value species.
• In developing countries, consumption and demand is expected to be driven by imports of low
cost/low value species.
• Developed countries will continue to be large net importers of fish with a growing emphasis on
sustainability, environmental regulations, pollution, food safety and eco-labelling.
• Home meal replacements (ready-to-eat meals) will be among the fastest growing products.
• The main factors driving growth in fish consumption include the availability of fish (i.e. domestic
industry capacity); economic development; population growth; ready-to-cook/ready-to-eat meals;
growth of supermarkets and non-traditional outlets (e.g. health food/organic stores; convenient
stores, hypermarkets); increased health consciousness; increased eating outside the home;
improvements in packaging/transport/availability of seafood.national food industry strategy ltd
a u s t r a l i a n s e a f o o d s t r a t e g y f o r e x p o r t g ro w t h page ii
Key findings on seafood export opportunities include:
• Added value increasingly means added benefit (not cost) to the consumer by way of convenience,
extra ingredients, longer shelf-life, environmentally friendly packaging, reduced cooking/preparation
time, or new packaging formats.
• Packaged fillets/portions and processed seafood products into supermarkets and convenience
stores in the EU, USA and Japan (i.e. ready-to-cook/ready-to-eat meals; frozen portion-size/long-
life fillets).
• Live/fresh/chilled seafood into speciality health/natural/organic and seafood stores in USA, EU, Japan.
• Live/fresh fish, whole frozen fish and fresh fillets to the wet markets of Hong Kong, Singapore,
Malaysia and Taiwan.
• Frozen crab, whole frozen fish, fillets and lobster into the Hotel, Restaurant, Institution sector of
Malaysia, Thailand and UAE.
• Frozen crab and fillets, and whole frozen fish and lobster into supermarkets of Germany, Belgium
and Nordic countries.
• Live and fresh fish, and frozen fillets/portions/whole fish supplied to the HRI sector in China, Hong
Kong and Japan.
• Processed-prepared lobster meals and tails/portions packed ready-to-cook supplied to
supermarkets in Sweden, Spain, Portugal and Belgium.
Key findings on impediments and barriers to export growth include:
• Many species, small scale, inconsistent supply volumes of Australia’s fish and fishery products.
• Lack of price competitiveness in low-value fish/fishery products for further processing.
• Uncertainty of airfreight capacity, costs, availability, routes and schedules.
• Food safety measures and the requirement for HACCP.
• Countervailing duties, anti-dumping legislation and competitor access to markets.
• Property Rights over market names.
• Sanitary and phyto-sanitary measures, regulations on safety/production/process standards.
• Increased risk assessment, more stringent and varied customs clearance procedures.
• Public concern for over-exploitation of natural resources, and verification of producer claims.
• Environmental concerns over aquaculture.
• Labelling for traceability, and for organic/environmental sustainability/eco-friendly.
Key findings on potential weaknesses of the Seafood Industry’s export development:
• Lack of dedicated programs including Government investment and R&D incentives; assistance to
build alliances; maintaining high quality, assured product; securing access to markets.
• Lack of an industry levy matched by government grants.
• Lack of industry-wide promotion, R&D activities, innovation/value-adding, market development,
and centralised data/intelligence.
• Lack of priorities such as establishing industry distribution networks in EU and USA; improved
access to airfreight; more highly integrated road-rail-sea-air transport.
• Lack of in-market presence to provide regular intelligence, sales support, promotions and
representation in preferred channels and priority markets.
• Lack of collaboration across industry; information flows between buyer-supplier-industry; Australian
brand and region/species specific brands.
Key findings on the strengths of Australia’s Seafood Industry include:
• A range of wild caught fisheries that are generally well managed and sustainable.
• Within close proximity to the World’s highest consumers of seafood (e.g. Asia).
• A reputation for producing and supplying safe, high quality, clean/green, fresh seafood.
• Ability to supply product year-round utilising Australia’s large coastline, wide range of species and
differing catch seasons.
• Australia’s seafood supply chains outperform the competition in Asia in quality, safety and logistics.national food industry strategy ltd
a u s t r a l i a n s e a f o o d s t r a t e g y f o r e x p o r t g ro w t h
Table of Contents
1. Introduction. .......................................................................................1
2. Australian Fisheries Production and Export.........................................2
3. Global Seafood Production and Trade .................................................10
4. Global Seafood Consumption And Demand .......................................13
5. Fishery Products, Markets and Trends................................................16
6. Market Opportunities and Market Entry Options ..................................27
7. Impediments To Export Growth ..........................................................32
8. Other Industry Models and Approaches. .............................................34
9. Bibliography .......................................................................................39
Disclaimer:
MarkeTrade has prepared this report for the exclusive use of its client, National Food Industry Strategy
Ltd. The material contained in this report is of a general nature, and neither purports, nor is intended, to
be specific advice on any particular matter other than general advice relating to the client for which the
report was prepared. No person should act on the basis of any matter contained in this report without
taking appropriate professional advice relating to their own particular circumstances. Apart from
providing advice of a general nature for the purposes of the client for which this report was prepared,
MarkeTrade expressly disclaims any liability to any person, in respect of anything done or omitted to be
done of and as a consequence of anything contained in this report.
MarkeTrade 78 Solomon St. Fremantle WA 6160 Ph 08 9335 7382 Mob. 0407 581 481 Email pjb@iinet.net.au ABN 63351 688958national food industry strategy ltd
a u s t r a l i a n s e a f o o d s t r a t e g y f o r e x p o r t g ro w t h page 1
1. Introduction
A fundamental aim of the Australian Seafood Strategy for Export Growth (ASSEG) Project is to develop
a national strategy to achieve significant export growth for the seafood sector, which includes wild
caught and farmed produce. The national strategy will:
1. Establish targets and identify priority opportunities, including feasibility assessments.
2. Identify impediments and establish on going processes to address impediments, whilst taking
advantage of the opportunities.
The project is divided into three phases, Scoping, Feasibility and Commercialisation.
Phase 1. Identify priority market opportunities for Australian seafood in export markets, including a
literature review of export markets, opportunities, impediments and priorities as well as a
national forum to agree on market priorities.
Phase 2. Undertake a feasibility study of a commercial supply chain into a preferred market that is
consistent with the outcomes of phase one.
Phase 3. Facilitate commercialisation of a supply chain project into a preferred market.
As a component of Phase 1, this report provides the findings of a literature review into seafood export
markets, opportunities, impediments and priorities. Literature was sourced from Publishers; Government
Agencies; World Wide Web; electronic databases; and Industry during November 2003 to January
2004. The review focused on seven aspects that are presented in the following order;
1. Australian fisheries production and exports
2. Global seafood production and trade
3. Global seafood consumption and demand
4. Fishery products, markets and trends
5. Market opportunities and entry options
6. Impediments to export growth
7. Other Industry models and approaches
The review aimed to identify recent contributions to the understanding of seafood markets and
marketing to identify a range of factors for developing an export strategy for the Australian Seafood
Industry. Throughout the Review, a summary of key findings is presented at the end of each section.
Statistics on Australia’s seafood fishery production and exports are generally reported in metric tonnes
and Australian dollars. Within this review, where appropriate, Australia’s exports have been reported in
Australian dollars to reflect value adding, whilst production has been reported in metric tonnes.
Throughout the Review footnotes have been used to identify literature sources (i.e. shown at the bottom of
each page) and a list of the reviewed literature is presented as a bibliography at the end of the document.You can also read
