Marine and Freshwater Resources Institute

Technical Report No 37

Integrated Agri-Aquaculture Systems

Investment Portfolio

Edited by: Fiona Gavine and Geoff Gooley

May 2002

Marine and Freshwater Resources Institute Private Bag 20 Alexandra 3714 © The State of Victoria, Department of Natural Resources and Environment, 2002

This work is copyright. Apart from any use under the Copyright Act 1968, no part may be reproduced by any process without written permission.

ISSN: 1328-5548

ISBN: 1 74106 020 6

Copies available from: Librarian Marine and Freshwater Resources Institute PO Box 114 Queenscliff VIC 3225 Phone: (03) 5258 0259 Fax: (03) 5258 0270 Email: [email protected]

Preferred way to cite this publication: Gavine, F. M. and Gooley, G. J. (2002). Integrated Agri-Aquaculture – Investment Portfolio. Marine and Freshwater Resources Institute Report No. 37. Marine and Freshwater Resources Institute: Snobs Creek. Department of Natural Resources and Environment, Victoria. 50pp.

General disclaimer: This publication may be of assistance to you but the State of Victoria and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication. TABLE OF CONTENTS

TABLE OF CONTENTS...... i

ACKNOWLEDGEMENTS...... ii

1 INTRODUCTION TO INTEGRATED AGRI-AQUACULTURE SYSTEMS ...... 1 1.1 The Victorian Opportunity ...... 1

2 TYPES OF INTEGRATED AGRI-AQUACULTURE SYSTEMS...... 5 2.1 Farm Diversification ...... 5 2.2 Inland Saline Aquaculture ...... 7 2.3 Aquaponics ...... 9

3 SETTING UP AN AQUACULTURE OPERATION ...... 11 3.1 Legislation And Regulation ...... 11 3.2 Site Selection and Risk Management...... 13 3.3 Economic Viability...... 14 3.4 Business Planning...... 15 3.5 Key Investment Criteria...... 16

4 MANAGEMENT OF AN AQUACULTURE OPERATION ...... 17 4.1 Water Quality ...... 17 4.2 Feed Management...... 17 4.3 Health Management...... 17 4.4 Stock Management ...... 18 4.5 Control of Predators and Pests...... 18

5 AQUACULTURE PRODUCE...... 19 5.1 Harvesting and Post-Harvest Handling...... 19 5.2 Marketing of Aquaculture Produce...... 21

6 REFERENCES AND FURTHER READING...... 23

7 APPENDIX 1: AQUACULTURE SYSTEMS ...... 27 7.1 Pond Culture ...... 27 7.2 Cage Culture ...... 29 7.3 Recirculating Aquaculture Systems ...... 31

8 APPENDIX II: AQUACULTURE SPECIES...... 33 8.1 Barramundi...... 33 8.2 Eels (Shortfin and longfin)...... 35 8.3 Murray Cod ...... 37 8.4 Ornamental Species...... 39 8.5 Atlantic Salmon ...... 41 8.6 Silver Perch...... 43 8.7 Trout...... 45 8.8 Yabbies – Freshwater Crayfish...... 47

9 Contact details for IAAS ...... 49

Marine and Freshwater Resources Institute, Snobs Creek i ACKNOWLEDGEMENTS

This Investment Portfolio was compiled and edited by Fiona Gavine and Geoff Gooley of the Aquaculture Program, Marine and Freshwater Resources Institute, Snobs Creek, Victoria. The project was funded jointly by the Science Technology and Innovation Initiative and Fisheries Victoria.

The contribution of the following people to this document is gratefully acknowledged:

Fish species: Richard Gasior and Nathan O’Mahoney Aquaponics: Geoff Wilson Inland saline aquaculture: Chris Hazelman Recirculating Aquaculture Systems: Annie Giles

Dr Brett Ingram, Peter Lawson and Brendan Larkin also assisted with checking for factual errors and editing.

Front cover acknowledgemnents: Main picture, ISIA; cow grazing, ISIA; tomatoes, ISIA; Barramundi and watercress, Glenn and Danielle Sheehan; Irrigation channel, MaFRI; Irrigation system, MaFRI.

ii Marine and Freshwater Resources Institute, Snobs Creek 1 INTRODUCTION TO INTEGRATED AGRI-AQUACULTURE SYSTEMS

Aquaculture is a rapidly growing industry in Australia with each state and territory adopting different species and culture methods according to their climate and natural resources. In Victorian inland waters rainbow trout is the largest aquaculture sector producing 1,500-2,000 tonnes of fish per year. Rainbow trout are coldwater fish and the industry is based (primarily) the north-east of the state. The culture of warm water native fish, such as Murray cod and silver perch has expanded rapidly in recent years and they are commonly grown in tanks or ponds. Yabbies are grown throughout Victoria and can be harvested from farm dams or grown in commercial quantities in purpose-built ponds.

Although aquaculture production is dominated by large-scale operations, there are many opportunities for small to medium-scale ventures to exploit. A variety of species can be grown in systems which could make use of resources and infrastructure already available on your farm. If your farm has a reliable supply of good quality water then aquaculture may provide an opportunity to diversify your on-farm activities. The integration of aquaculture into existing farming systems, or Integrated Agri-Aquaculture Systems (IAAS), is a rapidly developing new rural industry in Australia.

Research into the technical and economic viability of IAAS has highlighted three main types of integration:

• Farm diversification through the use of irrigation water for aquaculture and land-based crops, agro- forestry or pasture. Diversification into aquaculture can improve your farm’s productivity through high- value, market-focussed products and increasing your return from each megalitre of your valuable water resources. • Inland saline aquaculture - the use of shallow saline groundwater for aquaculture. Where farmland has been degraded by salt intrusion, inland saline aquaculture may offer an opportunity to recover productivity from otherwise unproductive resources and offset the costs of measures to deal with salinity. • Aquaponics - aquaculture wastewater subsequently used for hydroponics. For farms where aquaculture is the primary enterprise, wastewater can be used for irrigation or the hydroponic production of fruit and vegetables.

The information in this portfolio is designed to provide basic information about production systems and species for potential investors in Integrated Agri-Aquaculture Systems (IAAS). It also gives examples of how the systems and species may be integrated, depending on the resource base available. Information on the permits required prior to setup and other factors, which may affect the feasibility or economic viability of the venture are also included.

1.1 THE VICTORIAN OPPORTUNITY As Victoria is in the temperate zone of south-east Australia potential IAAS investors must be aware of some of the constraints presented by the natural resource base and climate of the State.

Temperature has a direct influence on the growth and survival of all fish and most species have specific temperature ranges where their growth is optimal. This means that some species will be more suitable than others for the area where you live. For example, warmwater species such as Murray cod and silver perch will perform far better under ambient conditions in the north-west of the state (eg. Mid Murray and Sunraysia) than they would in the south-east. Since fish growth and survival are key factors in the profitability of an aquaculture venture, matching suitable fish species to the climatic zone is critical to the success of IAAS. Temperature is also a prime consideration for the selection of plant species for integration with aquaculture systems and may restrict the number of

Marine and Freshwater Resources Institute, Snobs Creek 1 species available for integration unless greenhouse technology is also used. Temperature constraints are usually only a problem with “open” aquaculture systems such as conventional ponds, farm dams and cages. “Closed” aquaculture systems are generally protected to some extent from the external environment as they are enclosed in sheds or greenhouses and water temperatures can be controlled artificially.

There are legal restrictions on stocking some fish species outside of their natural range in Victoria, which will limit species choice in some areas. This can also be overcome by using “closed” systems, but these are usually very capital intensive and require skilled management.

Since profitability is a key consideration for adoption of IAAS by existing farmers and landowners in Victoria, each IAAS must be tailored to optimise the available resources, skills and level of capital investment available to the individual investor. Profitability of IAAS can be maximised by optimising production technology, economics and environmental issues.

Production Technology Production technology includes both aquaculture production systems and species.

Descriptions of three of the most commonly used aquaculture production systems: pond culture, recirculating systems and cages are given in Appendix I. The production system selected for aquaculture systems will depend on (Table 1.1) the:

• natural resources available to the investor; • chosen culture species; • level of capital investment; and • proposed level of intensity.

Table 1.1 Aquaculture production system characteristics Production Stocking Operating Level of System Type Intensity Density Costs Capital Investment Intensive High High High Recirculating tanks Flow-through ponds Semi- Medium Medium Medium Tanks, ponds, cages Intensive Extensive Low Low Low Farm dams, ponds, cages

Selection of an appropriate aquaculture species is critical to the success of an IAAS venture. Details of some of the most appropriate species are contained in Appendix II. These species have been selected as they are already commercially cultured in Australia and so there is a ready supply of juveniles and market acceptance of the product. Factors which should be considered when selecting a suitable species for your IAAS venture, include:

• Biological requirements. Temperature, salinity and water requirements are important criteria in selecting species. For open aquaculture systems, the species will be dictated by the climate of the area that you live in. • Aquaculture status. This is important as species already cultured commercially will have a track record of growth and performance which will make business planning more realistic. In addition to having a reliable supply of hatchery-bred juveniles, there may also be specifically formulated diets and appropriate husbandry methods will be known. • Market potential. The market demand, location of the market and expected price are important considerations to justify the level of investment. Capital-intensive recirculating systems must grow high value species at intensive stocking densities to realise returns on their investment.

The selected aquaculture species should be able to achieve market size within one or two seasons. In some parts of Victoria, the growing season may be too short for the species chosen to reach market size. In such situations, producers may have to utilise larger-sized advanced “stockers” to shorten the production cycle, or simply rely on agisting fish for short periods before on-selling to other producers to finish off to market size. Another option is to share production of warm water fish with an

2 Marine and Freshwater Resources Institute, Snobs Creek operator of a recirculating system to over-winter fish in artificially heated water and move them into open systems during the summer.

Investors selecting plant species for integrating aquaculture with hydroponic systems will need to address similar issues. In particular, investors need to ensure that the quantity and quality of water from the aquaculture venture matches the requirements of the plant species with which it is integrated. For farm diversification investors, the plant species are usually the primary produce of the farm.

Economics and Marketing The primary economic benefit of aquaculture integration into irrigated farming systems is from producing profitable, marketable products without any net increase in water consumption. However, other economic benefits may flow from aquaculture integration such as a reduction in the requirement for artificial fertilisers.

Economically it is important to look at how the aquaculture venture improves the bottom line of the farm as a whole as well as a stand-alone venture.

The effective marketing of aquaculture produce from small-scale IAAS operators will be an important factor in the long-term economic sustainability of the industry and will demand innovative and cooperative marketing strategies (see Section 5.2).

Where an existing aquaculture industry sector is already catering to the market demand for a certain species, market access for small-scale operators may impact on the economic feasibility of the integrated operation. Existing market pricing structure, contractual agreements (between producers and buyers) and quality assurance/food safety standards may again eliminate certain species from consideration, or may force small- scale IAAS operators to strategically align themselves with existing aquaculture industry producers.

IAAS investors need to ensure that they meet minimum production levels, quality assurance and food safety standards (Section 5.1) to realistically access seafood markets in a cost-effective manner. The primary means by which this can be achieved is through business networking, including pooling of produce, sharing of infrastructure (eg. purging, processing, packaging, storage and freight facilities) and collaborative and/or coordinated marketing. This approach would also allow small-scale producers to achieve economies of scale.

Environmental Issues The traditional single use of irrigation water in Victorian agriculture is inefficient. The increasing cost of this water to farmers highlights the potential benefits of IAAS which principally aims to value-add existing water use and nutrient use, by the production of a more diverse and marketable product base on any one farm. In addition, farmers with lands already degraded, specifically through salinisation, may have an opportunity to recover some productivity and perhaps rehabilitate land through the integration of inland saline aquaculture practices.

Recently, reform of the Australian water industry established commercial markets for the trading of water entitlements, which has placed a premium on water resources and led to a greater need to optimise use from both an economic and environmental perspective. Future policy developments in this area may involve the trading of nutrients and/or salinity credit. This could potentially offer additional benefits to IAAS farmers in the future.

Marine and Freshwater Resources Institute, Snobs Creek 3 Summary

Some things to consider when selecting commercially viable aquaculture species for integrated production are similar to those for conventional, stand-alone aquaculture systems, and include:

• Product value and size of the intended market. • Cost of conveyance to market. • Biological and husbandry requirements. • System design and cost of production. • Availability of seed. • Level of proposed capital investment and projected revenue. • Compatibility with existing agriculture business and irrigation infrastructure • Quantity and quality of effluent and associated re-use options.

4 Marine and Freshwater Resources Institute, Snobs Creek 2 TYPES OF INTEGRATED AGRI-AQUACULTURE SYSTEMS

2.1 FARM DIVERSIFICATION Aquaculture can potentially be integrated into any farming system if appropriate resources are available. However, the most significant opportunity for the large-scale uptake of IAAS lies within the irrigated farming sector in Victoria. Most of the irrigated land in Victoria is in the north of the State along the Murray River. The Goulburn-Murray Irrigation District is by far the largest irrigation area, but there are smaller irrigation areas to the northwest (Robinvale, Redcliffs and Merbein Irrigation Districts). South of the dividing range there are three irrigation areas, the MacAlister, Werribee and Bacchus Marsh Irrigation Districts. The main agriculture sectors in the irrigated areas in Victoria are:

• Dairy / livestock • General horticulture • Viticulture • Cropping • Mixed farming

Farms in areas outside irrigation districts often have access to groundwater resources or other surface waters (rivers and lakes) which may be used as a water source for aquaculture.

A farmer who simply wants to stock some fish or yabbies in existing farm storages without having to feed or manage them regularly is called an “extensive” fish farmer. Farmers who harvest yabbies from their dams would fall into this category. Stocking densities are low with this type of aquaculture and yields and returns are also low.

Production can be improved slightly by feeding artificially, but more intensive culture generally requires custom-built ponds, tank systems or floating cages. Custom-built aquaculture systems generally make stock handling and harvesting easier and become more necessary with large numbers of fish.

There are many ways in which aquaculture technology can be applied in existing farms depending on the resources available on the farm (water supply, land, pumps and pipes), the location of the farm and the intended level of investment. Box 1 shows a schematic diagram of aquaculture integrated into a dairy farm in Victoria. This farm uses irrigation water for broodstock and fry ponds and groundwater for hatchery production of native fish prior to irrigating paddocks for beef cattle.

A summary of the aquaculture options for farm diversification depending on the water source is given in Table 2.1.

Water Aquaculture Level of Yield Table 2.1: Summary of Source Options Investment aquaculture options by water Farm dams Free-range/extensive Low Low source Cages Low Medium Irrigation Ponds Medium Medium water Tanks / Recirculating Medium-High Medium-High Cages Low-Medium Low-Medium River water Ponds Medium Medium Tanks/ Recirculating Medium-High Medium-High Groundwater Ponds Medium Medium Tanks /Recirculating Medium-High Medium-High Town water Tanks /Recirculating Medium-High Medium-High

Marine and Freshwater Resources Institute, Snobs Creek 5 Box 1: Diagram of aquaculture integrated into a beef cattle farm in northern Victoria. BORE HATCHERY

PASTURE IRRIGATION CHANNELIRRIGATION

FISH POND Legend Fish production

Water flow

Where fish are grown in “open systems” (such as dams, ponds and cages), water temperatures in your area will dictate the species available to you. There are also restrictions on stocking some native fish species outside their natural range. The species options for freshwater farm diversification are shown in Table 2.2. “Optimal” temperatures are those at which the species grows best; they will survive outside this range but growth and feeding will be reduced.

“Closed systems”, such as recirculating aquaculture systems (RAS), allow control over water temperatures, have reduced water use compared with open systems and can be made bio-secure which will allow species outside of their natural range (eg. barramundi) to be cultured in Victoria.

Integrating aquaculture into your farm requires consideration of the resources you already have in terms of water, pumps, pipes and how the new venture will fit in or otherwise affect your current farming and irrigating operations (eg. is your irrigation system compatible with aquaculture effluents?). The topography of the land is important and prevailing soil types may make some forms of aquaculture more appropriate than others.

Key benefits of farm diversification into aquaculture include: • More than one crop produced from the same volume of irrigation water. • Fish can represent a high value diversification option compared with conventional crops; • Less inorganic fertilisers are required for irrigated crops, farmers using IAAS have reported considerable savings in fertiliser costs; • Aquaculture integration can reduce the environmental impacts of agriculture through improved water and nutrient utilisation; • Income derived from aquaculture can offset farm capital and operating expenses.

Once you have selected the species and systems which are most appropriate to your farm and the level of investment you wish to make, a whole-of-farm business planning approach is recommended prior to proceeding further.

Table 2.2: Freshwater species options for IAAS Species Optimal Growout time to market Restrictions temperature Yabbies 24-28 3-6 months Murray cod 23-28 Up to 24 months (open) Only north of the 9 months (closed) Divide unless RAS Silver perch 23-28 Up to 24 months (open) 12 months (closed) Golden perch 23-28 Up to 24 months (open) 9 months (closed) Rainbow trout 10-20 9 months (open) Brown trout 7-17 9-12 months Atlantic salmon 10-16 2-3 years Barramundi 28-32 5 months Only in RAS

6 Marine and Freshwater Resources Institute, Snobs Creek 2.2 INLAND SALINE AQUACULTURE

The Salinity Problem Land salinisation is a major problem in the Murray-Darling Basin (MDB), both in irrigated and dryland agricultural areas. Although natural land salinisation does occur in some parts of the MDB, European-style land use activities are predominantly to blame. Salinisation is caused by the replacement of native perennial vegetation with shallow-rooted annual crops and pastures for agricultural purposes. As a result, water infiltration increases and causes the water table to rise, bringing with it natural dissolved salts. Waterlogging and salinisation of the soil can then occur. Salinisation results in significant productivity losses for agriculture and increased likelihood of soil erosion, saline seepage and stream salinisation. Large areas of land in the MDB have been rendered unusable for conventional agriculture by these processes.

Salinity Solutions Several approaches are being implemented to combat the problem of salinity. These include surface and sub-surface drains, tree planting, re-use after dilution with fresh water, whole farm planning and management, and even disposal of saline drainage water to the Murray River.

In the long-term, a more environmentally sustainable option to deal with salinity involves the construction of large, closed evaporation basins, which may be publicly or privately owned. Saline groundwater is pumped into the basins, helping to lower watertables in the process. In terms of aquaculture, such evaporation basins show great potential for culture of salt-tolerant aquatic organisms.

Aquaculture Options Integration of aquaculture into inland saline waters can take several forms:

Extensive Culture Within Saline Farm Dams: Black bream have been trialed in Western Australia in farm dams of varying salinity. Findings concluded that black bream can survive in such dams given appropriate conditions, but growth was extremely poor. Rainbow trout, however, thrive in these dams and can grow to market size in 9-10 months.

Aquifers: Shallow aquifers can be used for pumping into evaporation basins or intensive, recirculating tank systems. Advantages include numerous sites, existing infrastructure and the opportunity to offset management costs through extra uses, such as aquaculture. Salinity of such aquifers may vary over time and the volume may not be sustainable for commercial aquaculture.

Deep aquifers are seen to be a good option for both grow-out and hatchery use in intensive recirculating systems, as the water source: • Is more uniform in quality/quantity than surface water; often with similar chemical ratios to seawater. • Usually contains little or no wild fish eggs, predators, parasites, bacterial/viral loads. • Is less polluted than surface water. • Has a relatively stable temperature compared to surface water. • Is often of a relatively high temperature (useful for culture of tropical species such as barramundi).

Marine and Freshwater Resources Institute, Snobs Creek 7 Box 2: Diagram of Serial Biological Concentration of Salts System in northern Victoria AGRO FORESTRY BORE SALT

TILE DRAINAGE

EVAPORATION BASINS EVAPORATION BASINS (LOW SALINITY) (HIGH SALINITY) SBCS Culture System Serial Biological Concentration of Salts (SBCS) systems involve firstly irrigating salt-tolerant plants with moderately saline groundwater pumped from a shallow aquifer (Box 2) The plants absorb water but only take up small amounts of salt, leaving a reduced volume of more saline water behind in the soil. This leached residual water is collected via tile drains and pumped into evaporation basins. Aquaculture production can take place within the evaporation basins, and salt-tolerant plants and salt may also be produced within the system. Culture options within evaporation basins include floating cages, and free-ranging. Atlantic salmon, rainbow trout, silver perch and Australian bass have been found to perform well in saline waters. Other species such as snapper and mulloway are being investigated in NSW and SA.

Constraints Temperature fluctuations (and resultant water temperature fluctuations) in inland Victoria are a major limitation for pond aquaculture. As such culture species may only be a winter or summer “crop” according to temperature tolerances and optimum growth temperatures.

Disposal of saline aquaculture effluent in inland areas is difficult, as it is often highly saline and loaded with nutrients. Salt production from such effluent may be an option provided nutrient concentrations are reduced first. This may be achieved by filtration/settlement, and then biological filtration using organisms such as seaweed, oysters, microalgae and omnivorous fish. Irrigation of salt-tolerant plants is another possibility but raises the problem of reintroducing salts into the soil.

Species Some species with potential for growth in saline water, and their salinity and temperature tolerances are presented in Table 2.3. Obviously the final choice of species will be site specific depending on salinity and water temperatures.

Species Salinity Temperature Table 2.3: Some species Optimum optimum with potential for inland (ppt) (oC) saline aquaculture. Fish Murray cod 4-6 23-28 Silver perch 4-6 22-28 Golden perch 4-6 23-28 Rainbow trout 0-35 10-20 Brown trout 0-35 7-17 Atlantic salmon 0-35 10-16 Barramundi 0-35 26-30 Snapper 16-35 20-28 Mulloway 5-35 Unknown Black bream 0-48 (24) 24 Crustaceans Yabbies <8.0 24-28 Artemia 35+ 22-27 Molluscs Mussels (Blue) 20-37 12-26 Abalone 34-37 15-18 Algae Isochrysis 25-35 24-26 Dunaliella salina 25-35 24-26

8 Marine and Freshwater Resources Institute, Snobs Creek 2.3 AQUAPONICS

Aquaponics is a relatively new term used to describe the use of aquaculture effluents for the hydroponic production of plants.

Hydroponics is the growing of plants without soil. Nutrients are dissolved in water and the nutrient solution is offered to plant roots in a variety of ways, such as in sand beds, scoria rock, sawdust, and from thin films to misted sprays. Until recently, most commercial hydroponics has been undertaken with inorganic nutrients, or artificial fertilisers. However, organic hydroponics is becoming increasingly popular as a means of more effective waste management. In aquaponics, much of the plant food nutrients can come from organic sources -- such as fish excreta, fish food wastes or the breakdown of algae and other microorganisms growing in the water.

Australia’s first commercial aquaponics farm is at Bob’s Farm, near Newcastle, NSW, where barramundi finfish are grown in tanks in a polyhouse for live sale. Fish wastes are filtered off to a composting tank in which microorganisms break down the organic matter into simpler compounds that can be used as plant food. Some nutrients are added and the liquor then becomes a hydroponic nutrient for commercial lettuce growing (Box 3). If there is any wastewater, a nearby pasture provides safe disposal that enhances the feed available to beef cattle. Most times there is no fish farm effluent to dispose of; it is fully used by the lettuce.

Box 3: Schematic Diagram of Bobs Farm, NSW

HYDROPONIC LETTUCE

RECIRCULATING BORE SYSTEM HOLDING TANK

Other Australian investors in aquaponics are now starting ventures into various combinations, such as finfish and tomatoes, herbs, chives and other leafy vegetables. A particularly interesting one is the trout and wasabi joint venture project at Snobs Creek trout hatchery. The trout produce enough waste in large volumes of cold, clear water to raise the hotter-than-mustard, Japanese wasabi condiment that is so essential to spice up sushi dishes.

Plant requirements in Aquaponics In hydroponics all essential elements are supplied to plants in the form of nutrient solution and the success or failure of the venture depends primarily on a strict nutrient management regime which is achieved by carefully manipulating the pH level, temperature and electrical conductivity. pH. Most hydroponically grown plants require a slightly acidic pH with the optimum being between 5.8 and 6.5. pH levels above 7.5 will limit the availability of trace metals to plants.

Temperature. Temperature fluctuations in a hydroponic solution can affect the pH of the solution and the solubility of nutrients. Ideal water temperatures are 20-22oC.

Marine and Freshwater Resources Institute, Snobs Creek 9 Electrical Conductivity (EC). EC is pH EC used as a measure of the nutrient Fruit Banana 5.5-6.5 M concentration of the hydroponic solution. Melon 5.5-6.0 H Nutrient requirements of plants can Strawberries 6.0 M generally be categorised as low, medium Water melon 5.8 M or heavy feeders (Table 2.4). Vegetables Broad bean 6.0-6.5 M Capsicum 6.0-6.5 M In commercial operations, the quality of Cucumber 5.5 M hydroponic solution is monitored Lettuce 6.0-7.0 L constantly and adjusted automatically as Pak Choi 7.0 M required. The ambient air temperature is Tomato 6.0-6.5 H also an important crop requirement. Zucchini 6.0 M Plants generally grow well within a Herbs Basil 5.5-6.0 L specific temperature range. Warm Fennel 6.4-6.8 L season vegetables and most flowers o Mint 5.5-6.0 H prefer a temperature range between 15 C o Mustard cress 6.0-6.5 M and 24 C. Cold season vegetables such Watercress 6.5-6.8 L as lettuce and spinach grow best between 10-21oC. Flowers African violet 6.0-7.0 L Crysanthemum 6.0-6.2 M Species Gladiolus 5.5-6.5 M The plant species options for potential Table 2.4: Some Plant Species With Potential in integration with aquaculture are virtually Aquaponics limitless, however, a cross-section of fruit,

vegetables, herbs and flowers in given in Table 2.4 along with their pH and EC requirements. In this context, EC is a measure of the nutrient content of the prevailing water and L= 0.6-1.5 mS/cm, M=1.5-2.4 mS/cm and H=2.4- 5.0mS/cm (Carruthers, 1993).

The most appropriate plant species to be grown with aquaculture effluent will depend on the quantity and quality of effluent available and the temperature at which it enters the system. Heating or cooling the effluent to optimal conditions and supplementing the nutrients can widen species options, if required. The use of greenhouse technology to raise ambient air temperature is another way to increase the species options available.

Wasabi-trout aquaponics in Victoria One important constraint to aquaponics is the use of salt in routine fish farming activities. Plants with a low salt tolerance will suffer from excess salt in the system and this will have to be carefully managed.

Salt-water aquaponics The production of salt-water plant species is also a growing area. Some species of marine micro- algae are known to be sources of beta-carotene and may be worth developing commercially.

In Queensland, research is being carried out using prawn farming wastes to grow algae on plastic “aquamesh”. The seawater algae are browsed by estuarine mullet and rabbit fish -- which can then be harvested. Seaweed or mangroves in aquaponics may offer other waste management options for saline water farming systems.

10 Marine and Freshwater Resources Institute, Snobs Creek 3 SETTING UP AN AQUACULTURE OPERATION

3.1 LEGISLATION AND REGULATION

Do You Need an Aquaculture Licence?

An aquaculture Licence is required under the Fisheries Act, 1995 if you are hatching, rearing, breeding, displaying or growing specified fish or fishing bait for sale or other commercial purposes. If you wish to stock fish for personal reasons, however, such as aesthetics or private fishing, and do not wish to sell any product then you do not require a licence. The Fish in Farm Dams information booklet should be consulted for more details.

To conduct aquaculture activity on freehold land an Aquaculture (Private Receipt of Land) licence is required. An Application application for an Aquaculture (Private Land) Licence may be obtained from Fisheries Victoria. Local Council Aquaculture Request for further Planning Permit Licensing Officer information Preliminary advice can be obtained from the Aquaculture Licensing Officer, based in Melbourne (03 9412 5715) Water Authority Regional EPA Works Approval Access Licence Recommendation and Regional Aquaculture Co- ordinators who are located in Port Phillip, Northern, South West and Manager Aquaculture Gippsland regions. For technical advice and information on aquaculture, Executive Director call the Inland Extension Officer (03 Fisheries Victoria 5774 2208).

Licence Issued To complete the application, you will be required to provide information on:

• Your property. • Proposed aquaculture development. Figure 3.1 Approvals Process for Aquaculture Licences • Water supply and discharge arrangements. • Business planning.

An application fee must be paid when your application is submitted and there is an annual renewal fee if the application is approved. Figure 3.1 shows the approvals process for Aquaculture (Private Land) Licence applications.

After your application has been submitted, you will be contacted by the Regional Aquaculture Coordinator who will work with you to ensure that all the appropriate approvals are gained from the relevant authorities. Your aquaculture licence can be revoked if you are found to be not complying with the conditions of your licence.

System Restrictions If your land is liable to flooding there may be restrictions on the use of pond culture for aquaculture.

Species Restrictions There are some restrictions on species, which can be used for aquaculture in Victoria. Applications to stock species which have been declared “noxious”, such as carp and marron, are unlikely to be approved.

In addition, if an “open” aquaculture system is used, permission will not be given to stock native fish outside of their natural range. This means that species such as Murray cod can only be stocked north

Marine and Freshwater Resources Institute, Snobs Creek 11 of the Great Dividing Range unless bio-secure closed systems are utilised. More information regarding the requirements for stocking of species outside their natural range is available in the "National Translocation of Live Aquatic Organisms", which may be viewed at: http://www.brs.gov.au/fish/translocation.html

There are also strict controls placed on the siting, operation and management of barramundi aquaculture systems in Victoria (DNRE, 2000).

Moving species interstate (Translocation) The translocation of species interstate is the movement of native and introduced species between states. There are National Translocation Guidelines which must be adhered to if you need to bring seedstock in from other states or sell fish interstate. These guidelines have primarily been put in place to protect native fish stocks from exotic disease.

Other Approvals The approvals required for diversifying into aquaculture are site specific depending on the location of the farm and the proposed aquaculture activities; including the size of the operation and the extent of alteration to the existing site. A summary of the range of approvals which may be needed when diversifying your farm into aquaculture is given in Table 3.1. Your local aquaculture coordinator will be able to advise you on which permits and processes are required for your property, and your local council will be able to provide further guidance on the licences required. Table 3.1 Summary of approvals which may be required for land use change to aquaculture (Source: DNRE, Victoria)

Activity Approval Required Contact Authority Aquaculture Growing fish for sale Aquaculture licence Fisheries Victoria, DNRE Vegetation Removal of native vegetation Planning permit Local Council Land Earthworks Planning permit or Certified Local Council Whole of Farm Plan Disposal of solid wastes Licence / Advice EPA/ NRE/ Council Water Abstracting water Licence Water Authority Bore construction & abstraction Licence Water Authority Undertaking works on Crown Licence and approval NRE/CMA land stream frontages Disposal of drainage/ runoff Licence/permit or advice Local council / CMA / Water Authority

12 Marine and Freshwater Resources Institute, Snobs Creek 3.2 SITE SELECTION AND RISK MANAGEMENT

Assessing the suitability of your farm for aquaculture is a critical phase in the planning and set up process. The aquaculture system and species selected should optimise the natural resources available on your farm and ideally should be compatible with your existing agriculture enterprise and irrigation system. Careful planning and site selection will reduce the risks of the venture not performing as well as it could and could ultimately dictate the profitability and sustainability of the IAAS.

Table 3.2 gives a preliminary list of factors which should be considered during the feasibility planning stage. Some of this information will be more relevant to certain types of aquaculture systems than others, e.g. “open” pond systems will require more information on natural resources such as topography, soils and climate than “closed” recirculating tank systems. Other issues, e.g. water supply, are relevant to all integrated aquaculture ventures

In all cases, it is important to access as much information as possible during the feasibility/ planning stage of the venture so that important decisions on systems and species are based on accurate projections. This will reduce the risk of investing in an aquaculture system or species which is inappropriate for your circumstances.

Table 3.2: Summary of some issues/ risk factors to be examined during feasibility planning (after Gooley and Gavine, 2002)

Issue Potential Risk Comments Natural Geology Suitability for the construction and operation of ponds Resources Accessibility of underground water resources Topography Likelihood of flooding Suitability for construction and operation of ponds and irrigation systems (use of gravity) Soils Water retaining properties; Presence of acid-sulfate or sodic soils. Contamination – soils should be tested for residues of herbicides and pesticides. Climate Assess likelihood of flooding drought or storms Ambient temperature, rainfall, evaporation, sunshine, wind speed and direction. Water Supply Seasonal changes to quality and quantity; Sources of pollution; Long-term data required; Access – allocation permits; Cost of purchasing water and supplying site. Aquaculture Farm dams Recommended stocking densities systems Ponds Abundant supply of good quality water, suitable geology, topography, soils and climate required. Tanks Abundant supply of good quality water, suitable climate, suitable topography/soils for effluent disposal. RAS Access to reliable supply of water, suitable topography/ soils for effluent disposal. Level of capital investment required. Cages Access to lake/ standing water with adequate depth and good water quality. Permission from relevant authorities if public waters. Species Biological requirements (temp, salinity, water); Market demand and price; Aquaculture status; Legislative restrictions; Time to market. Effluent Irrigation Suitable topography, soils for wastewater irrigation; Quantity and quality of effluent Disposal sufficient to meet plant requirements. Hydroponics Quantity and quality of effluent and suitability for plants. Evaporation Sufficient storage areas to store effluent. Protection of adjacent soils and water sources (use of pond liners). Remediation Choice of appropriate species to remediate wastewaters (algae, mollusc, crustaceans, fish, trees). Appropriate stocking densities, markets. General Planning Whole of farm plan (physical and business); Marketing strategy Economics Cost-benefit analysis using realistic market prices, set up and production costs. Training Access to technical training support and extension.

Marine and Freshwater Resources Institute, Snobs Creek 13 3.3 ECONOMIC VIABILITY

The profitability of the aquaculture enterprise and how it can contribute to the overall performance of the farm will be a key factor in the uptake of IAAS by farmers. As part of the planning process a cost- benefit analysis should be undertaken so that the economic viability of the aquaculture venture can be assessed. It is important that realistic assumptions are made at this stage about the likely level of production that the chosen species and system will achieve. It is also important to consider the following key variables that will affect the profitability of aquaculture:

1. Market price for the product. Information on the market prices for some aquaculture species is given in the species factsheets in Appendix II. This is based on average prices at the large wholesale fish markets in Sydney and Melbourne. It is often possible to get higher prices by selling fish directly to restaurants or local fishmongers. The price that you get for your product will vary with species, size and product quality. It can also depend on the competition from other suppliers or wild fish. Market price and demand can vary seasonally and it may be important to plan production around seasonal trends.

2. Yields from production - which depends on: • Species selected. • Intensity of production - extensive, semi-intensive and intensive. • Time to market - species, culture system and local climate. • Survival - fish husbandry skills, predators, disease, system failure, human error or other unpredictable factors. • Farm and risk management – during the early years of production yields may be lower than expected due to inexperience with fish and aquaculture systems.

3. Costs of production • Feed and the efficiency with which it is used. Feed is the major cost component of semi- intensive and intensive aquaculture in Australia. It is important that stock are fed as efficiently as possible to reduce feed costs. The Feed Conversion Ratio (FCR) is a measure of the weight of feed needed to achieve a unit of weight gain. The closer this is to 1.0:1, the more efficiently the fish are converting feed. • Juveniles. The cost of juveniles can represent a major proportion of operating costs. Hatcheries should be contacted to find out current market prices. • Water. In IAAS water may not be a production cost as water is already being brought on-site for other purposes. • Electricity. • Labour. • Transport and marketing.

These variables will be site specific and depend on the level of investment, choice of aquaculture species, geographic location (for open systems) and farm husbandry skills.

Capital/Setup Costs Since IAAS are likely to be based on existing farms with existing water entitlements, capital costs related to the purchase of land and water can usually be excluded from this analysis. Capital/ setup costs for your aquaculture venture will be directly related to how compatible the chosen aquaculture system is to existing natural resources and infrastructure on the property and the level of intensity of farming. Capital costs which may be applicable include: • Aquaculture infrastructure: construction of ponds, purchase of tanks/cages • Buildings: sheds for purging, processing, production or hatchery. • Predator control measures: • Harvesting equipment • Water quality monitoring equipment • Backup generators or oxygen supplies.

14 Marine and Freshwater Resources Institute, Snobs Creek 3.4 BUSINESS PLANNING

Business Plans The preparation of a business plan is a crucial stage in planning an integrated agri-aquaculture venture. A business plan is a plan for the whole enterprise and should include both agricultural and aquaculture components. It is a critical analysis of opportunities and challenges for an enterprise and provides strategic direction towards achieving the vision for the enterprise. Agriculture, Fisheries and Forestry Australia (AFFA) has recently published guidelines on what should be in a business plan. Components of a Business Plan

A Brief History of the Enterprise. A history of the enterprise from its incorporation to the present time should be given, highlighting any change in:

• The original line of business and range of products it produces. • Its performance over the years. • Impediments it has faced. • Strategies it has adopted to manage the business.

Objectives (both short-term and long term). • A short statement of objectives of the business, highlighting how the short-term objectives are aligned with the long-term objectives. • A discussion of the relationship of the proposed project with the overall objective of the enterprise.

Market Analysis of the Range of Products the Enterprise Produces (see Section 5.2). • Understanding the market. • Marketing strategies - an analysis of how the business is envisaging to market its products in the domestic and overseas markets:

Market Returns - Cash-Flow Analysis This section should include likely market returns of products from both domestic and overseas operations of the business. A cash-flow analysis is a report of the cash flow generated by the firm's operations, investments and financial activities. It is not an income-expenditure statement. It is based on the current and expected level of production, price of inputs and products and the market share the business is likely to capture.

Management Structure of Business This section sets out the skills of key personnel involved in the management of the business and their strengths and weaknesses. It also shows the line of hierarchy in the management of the business stipulating clearly key tasks and responsibilities of each person.

Financial Management This section should include an analysis of: • How the business envisages its funding requirements and how that requirement would be met from cash inflows that would be generated from its business operations. • What risk management strategies it has in place for a back up arrangement in the situation should it fail to realise its expected market returns. • The availability of financial management skills to the business.

Human Resources Management An analysis of human resources should: • Identify the availability of in-house skills to manage human resources of the business. • Include a stock take of skills available to the business. • Identify the required skills including how those skills are accessed during its business operations.

Marine and Freshwater Resources Institute, Snobs Creek 15 Risk Management This section involves the identification of both technical and business risks and the development of appropriate strategies to address the identified risks. Risks should be prioritised in terms of the most critical risks, which will undermine the success of the business. This will enable risks to be anticipated and redressed earlier than otherwise.

Performance Monitoring and Evaluation This section deals with the identification of: • Key performance indicators and the strategies to monitor the performance of key personnel. • The mechanism to evaluate the performance of its operations, including auditing of accounts. • Evaluation should include an analysis of: ⇒ Effectiveness - the extent of achievement of the enterprise objectives. ⇒ Efficiency – the success of the enterprise to achieve its objectives in the most cost-effective way.

3.5 KEY INVESTMENT CRITERIA

Identification of optimal species, system design, capacity and production levels: • Level of intended investment and expected return on investment will be a key driver in the choice of species and systems. • Species should be selected according to the geographic location of the farm, unless fully closed systems are used. • System design should optimise the use of readily available/ existing resources, topography, and infrastructure to minimise start-up costs. • Choice of culture species, system and scale of investment should be based on commercial opportunities which take into account the “whole-of-production” chain needs of the existing seafood industry. • Integration of aquaculture with existing farm operations should be based on thorough “whole-of- farm” business planning. • Integrated aquaculture produce must conform to the standards set by the Local Health Authorities, which in turn presently operate under ANZFA (Australia New Zealand Food Authority) Food Safety Standards. • Technical training and support services should be accessed as required.

Achieve economies of scale through business networks: • Economic viability of the proposed development should be assessed prior to implementation. This should be based on an objective analysis of cost-benefit including realistic profitability targets. • Cost-benefit analysis should factor in the economic value of linked environmental benefits, particularly in relation to land rehabilitation, reduced nutrient and/or salt emission and multiple water use. • Aquaculture production should focus on high value markets where possible for both export and domestic consumption

Optimise natural resource utilisation • Natural resource utilisation should not result in any net increase in environmental emissions or associated external environmental costs. Ideally, it should not require a net increase in water consumption.

• Systems should be designed with future developments in tradeable emission permits in mind to optimise commercial viability.

16 Marine and Freshwater Resources Institute, Snobs Creek 4 MANAGEMENT OF AN AQUACULTURE OPERATION

4.1 WATER QUALITY Water quality is one of the most crucial factors that will determine the success or failure of a fish farming venture and its management is extremely important. Before set-up you should ensure that the water supply you intend to use is free from pollution (organic, agricultural and/or industrial), excessive suspended particles and pathogens. It is advisable to have your water supply tested to make sure it is suitable before investing in aquaculture.

Each species has a preferred range of temperature, salinity and dissolved oxygen requirements and the aquaculture system should operate at optimum levels of each parameter for fast growth and efficient performance. The acidity or alkalinity of water (as measured by pH) is also important for fish health and ideally should be between 6.5-9.0. It is important to note that these parameters interact and determine the toxicity of other parameters such as ammonia and some heavy metals to fish. For example, the toxicity of ammonia (which is excreted by fish) increases with rising pH and temperatures.

If fish are stocked too densely and water exchange is inadequate, then waste products from the fish can build up causing stressful levels of dissolved oxygen, ammonia and nitrite.

The following parameters should be measured on a daily basis in fish farms:

• Temperature • Salinity • pH • Dissolved oxygen • Ammonia

4.2 FEED MANAGEMENT Feed costs can represent over 40% of the total production costs on fish farms and it is extremely important that fish are fed efficiently. Feeding efficiency is measured using Food Conversion Ratios (FCRs) which are calculated by dividing the dry food fed by the gain in wet fish weight. If possible, the diets used should be specifically formulated for the species that you are rearing. This means that the diet will be nutritionally balanced and feeding efficiency will be increased. Feeding rates vary with fish size and water temperature, with small fish fed a higher percentage of their body weight each day than larger fish. Different sizes of fish will also require pellets of different physical dimensions. Feed manufacturers are a valuable source of information on appropriate diets, rations and pellet sizes for your operation.

There are three main feeding methods in aquaculture: • Hand feeding. This is usually more appropriate for small farms and also allows the feeder to gauge the health of the stock through appearance and behaviour. There also tends to be less feed wastage with this method. • Automatic feeding. Automatic feeders are usually used on large farms to save on manpower. They are driven by clockwork, water, compressed air, electric or battery mechanisms. These devices allow more regular feeding during the day. • Demand feeding. These feeders respond to demands of the fish.

4.3 HEALTH MANAGEMENT In any aquaculture operation, farmers may have to deal with various parasitic, bacterial, protozoan and fungal infections. Most of the diseases are already present in Australian waters and outbreaks generally occur as a result of environmental (e.g. water quality related) and/or handling or husbandry stress. These problems tend to reflect poor management practices on the farm. Susceptibility to disease is species and system specific and can result from various pathogens, but there are a range of therapeutic treatments available to deal with most outbreaks.

Various measures can be taken to reduce the incidence of disease on aquaculture farms including:

Marine and Freshwater Resources Institute, Snobs Creek 17 • Ensure that any stock brought onto the site are certified disease free from the supplier. • Quarantine new fish to ensure they are disease free before introducing them to your system. • Make sure that the system is kept hygienic through regular cleaning of tanks and other infrastructure. • Monitor water quality daily and inspect fish for signs of disease regularly. • Treat stock with salt baths and/or other prophylactic treatments.

4.4 STOCK MANAGEMENT Grading Most stocks of fish exhibit hierarchical or pecking-order patterns of feeding behaviour which means that some fish get less food than others. Over time the fish that feed more will grow larger than the ones that get less food and size differences will appear in the population. Size variations cause problems in intensive aquaculture as it is not possible to appropriate rations or pellet sizes to the fish. There are also problems with larger fish bullying, attacking or eating the smaller ones. To overcome this problem fish should be graded regularly to keep fish of similar sizes together.

4.5 CONTROL OF PREDATORS AND PESTS Predators cause problems at fish farms by: • Killing or damaging fish • Damaging the cage or predator nets • Stressing fish which disrupts feeding and reduces resistance to disease. • Spreading disease.

Common predators of aquaculture species in Australia include fish-eating birds (e.g. cormorants), water rats and carnivorous fish.

Some species do not kill or damage the fish, but are a nuisance because they harass the fish or compete with them for food. Carp can be a nuisance species in inland cage culture.

Predator control is most commonly by covering the culture area in predator nets. Other options include trapping the predators, but some species (such as water rats) are protected species and they must be relocated to alternative habitats.

18 Marine and Freshwater Resources Institute, Snobs Creek 5 AQUACULTURE PRODUCE

5.1 HARVESTING AND POST-HARVEST HANDLING

Harvesting of aquaculture produce

The harvesting method used will depend on the culture system employed and the species to be harvested. Tanks and cages are the easiest culture systems to harvest, as the fish are concentrated in small, easily accessed areas. Pond systems require that the produce are caught using nets or by completely draining the pond. The harvest method utilised must minimise damage to the fish as any damage to flesh, scales or fins may reduce the marketing opportunities.

Post-harvest Handling The post-harvest treatment required for produce from aquaculture will depend on the intended market.

Purging Systems Fish grown in ponds or tanks may acquire an “off-flavour” from algae or bacteria and require purging in freshwater for several days before processing. Purging systems consist of one or more flow- through tanks, which are fed with clean, fresh water. The fish are not fed whilst they are being purged.

Killing Methods. The most appropriate killing method depends on the number and size of fish to be killed at any one time in addition to marketing, economic and humane considerations.

New guidelines released in April 2000 under the Victorian Prevention of Cruelty to Animals Act (1986), stipulate that all live animals to be used for food must be killed humanely. The recommended killing method for fish is a fast, heavy blow to the head and/ or spiking (using a narrow-bladed knife to penetrate and then destroy the brain). Other common methods of killing fish include: • In line harvest sedation • Electrical stunning • Carbon dioxide sedation

Crustaceans are generally marketed live, but there are guidelines for handling and killing of crustaceans that must be followed. It is recommended that crustaceans be immersed in an ice slurry for 20 minutes prior to further processing. When the body temperature of crustaceans is reduced far enough, the animal will die without suffering. The humane killing guidelines recommend that live crustaceans should not have tails or heads removed, be put into boiling water or served live to diners.

Processing. Aquaculture produce destined for conventional markets may require processing on-site to reduce spoilage. Some producers take this one stage further by value adding through smoking or other making products. A general rule is to minimise handling of product prior to marketing or killing, to preserve product quality.

Once harvested and killed the quality of fish deteriorates rapidly through spoilage. Spoilage reduces the market value of the product as it can result in repugnant smells and deterioration in fish appearance and taste. There is also an increased likelihood of microbial contamination of the product with age.

Marine and Freshwater Resources Institute, Snobs Creek 19 The most effective way of controlling spoiling is to control the temperature of the product after harvest. Fish should be chilled to below 3.0oC as rapidly as possible after harvest; this can be done using an ice slurry. The fish should remain chilled throughout the whole processing procedure.

Removing the viscera from the harvested fish further prolongs the shelf life of the product. The fish can then either be transported to market chilled or further processed on-site into fillets or other value-added products.

Fish processing facilities must comply with the relevant food safety regulations. If the product is intended for the domestic market, this is under Local Government jurisdiction. You should check with your local council for the regulations and guidelines that are applicable in your area. Seafood Industry Victoria, the peak body for the commercial fishing industry can supply more information on post-harvest handling and training (see contact list).

The Australian Quarantine Inspection Service (AQIS) regulates processing facilities for export products and should be contacted for the procedures involved in obtaining accreditation (www.affa.gov.au).

Transporting to Market To reach the intended market in peak condition, the produce must be transported to minimise spoilage or other damage. The most appropriate method of transportation will depend on the species, intended market and level of processing undertaken.

Live produce The fish or crustaceans marketed live attract a premium price and must reach their intended market in prime condition. Fish should be transported in tanks with an independent supply of oxygen to ensure stress due to transport is kept minimal. Crustaceans can be packed into insulated polystyrene boxes and the temperature should be kept at or slightly above 4.0oC.

Fresh, chilled produce Some fish are sold whole, some head on, gilled and gutted (HOGG). Both forms may be may be kept fresh using ice slurries and transported to market in insulated boxes with the temperature kept between -1-+2.0oC, but care should be taken to avoid freezing the fish.

Frozen products Fish quality suffers badly from the effects of slow freezing, so quick-freezing is essential. Frozen seafood should be stored and transported at –20oC or below.

20 Marine and Freshwater Resources Institute, Snobs Creek 5.2 MARKETING OF AQUACULTURE PRODUCE

Australian primary producers have a history of ‘selling’ products rather than marketing them (Stoney, 2001). ‘Sellers’ are very focused on their production system and tend to work out where a product will be sold only after it has been produced, which results in producers having little control over their key markets and the price they receive. A marketing approach to moving products is about:

• Identifying the needs of customers and potential customers as an integral component of business planning. • Producing products that satisfy these needs. • Developing efficient systems to deliver the product to the market when, where and how the customer wants it.

Developing a Marketing Plan A marketing plan should be developed for an individual enterprise as part of its overall business plan. The following elements are a guide to what should be incorporated into a marketing plan:

Vision: that has been developed for the business (during the business planning stage) should be at the forefront during this process.

Market Research: a planned approach to identify potential customers and define their needs (including product specifications).

Key Market Variables: The following key market variables need to be considered when developing marketing goals and formulating a marketing plan:

Product: the item being offered for sale. Product includes its physical aspects such as taste, appearance, size, weight and quantity, and other product attributes such as after sales service. Price: usually determined by how much the customer is prepared to pay, matched with how much the producer is prepared to accept (partly determined by actual production costs and associated target profit margin). Place: where the customer wants to purchase the product (which typically must be convenient to or readily accessible by them). Issues such as distribution, freight and storage logistics and location of outlets are important factors to consider. Promotion: how effectively the marketer lets the customer know that the product will meet their needs. It is critical that these messages are realistic and do not over emphasise features that the company or product cannot deliver Implementation: is about developing the processes to make it all happen.

Review and Evaluation: The marketing plan should be reviewed and evaluated regularly.

Supply Chain and Networking Approach to Marketing The Australian aquaculture industry in general needs to develop stronger links with its supply chain, from farm, processor, exporter/importer, distributor(s) and retailer(s) through to the end consumers. Indeed this need is absolutely critical to the long-term viability of the existing inland sector, which is relatively small, diverse and commercially fragmented at present, even without any additional investment in the new and developing IAAS sector.

The diverse and fragmented nature of the industry at present may be overcome by the development of a centralised or networked supply system, or a joint marketing company. Such networks can provide critical mass to relatively small independent operators for the purposes of accessing larger market opportunities. In addition, such networks readily enable specialist operators (eg. hatcheries,

Marine and Freshwater Resources Institute, Snobs Creek 21 nurseries, growers) to cost-effectively link up or integrate both vertically and/or horizontally with other strategic ‘partners’ within a functional supply chain. Australian inland aquaculture produce is mostly sold on the domestic market as: • Cooked and chilled, whole (eg. freshwater crayfish such as yabbies and redclaw), • Non-cooked and chilled, head-on, gilled and gutted (eg. finfish such as rainbow trout, Atlantic salmon, silver perch, jade perch, Murray cod, barramundi and eel), • Live (eg. Murray cod, barramundi, silver perch, jade perch and eel) • Processed/value-added (eg. whole/portioned, filleted/smoke trout and eel)

Demand for Australian aquaculture products is currently strongest amongst the restaurant, catering and Asian communities. Live fish are sold almost exclusively into the domestic, retail and seafood sector market targeting Asian tourists and resident Asian communities who are generally prepared to pay premium prices for this fresh product. Farmed barramundi, Murray cod, jade and silver perch have become the dominant species in this very competitive market, particularly in Sydney and Melbourne.

Advice on how to establish and enter export markets is available through the Commonwealth Government agency, Austrade. This agency has offices located in various countries around the world, which provide services to Australian companies including market research, and identifying and introducing potential importers. Contact the Austrade hotline on 132878 or visit www.austrade.gov.au.

Key Marketing Issues for Development of the Australian Inland Aquaculture Industry The Australian inland aquaculture industry faces a number of challenges in maintaining existing markets, let alone developing new markets to accommodate new and developing sectors such as IAAS. If these challenges can be adequately addressed then every individual enterprise stands to benefit. Some issues are summarised below: • Pricing. Market research can only provide broad indications on price. The commercial viability of specific market opportunities can only be determined, once product is available and demand exists, by direct negotiation between the seller and the potential buyer or importer. • Consistency of supply. Buyers and importers seek reliable suppliers who can guarantee to provide a consistent supply of high quality product. This is particularly important when developing export markets. The majority of inland aquaculture producers tend to be relatively small in size and geographically dispersed both of which impact on reliability of product supply. These are key barriers to the establishment of sizeable processing facilities and therefore the development of export markets for various value-added inland aquaculture products. • Competition in a global marketplace. Australian industries are constantly exposed to competition within the global marketplace for both export and domestic trade, which highlights the continuing need to remain globally, cost competitive. • Skilled and “Export Ready” companies. Many inland aquaculture producers do not have a commercial background or formal training in aquaculture or marketing disciplines. This is particularly so for the IAAS sector in which many new investors come from a ‘non aquaculture’ background. Many small Australian producers attempt to infiltrate export markets with very little knowledge or expertise, including the need for all suppliers to develop and implement quality assurance and food safety standards. • Development of critical mass in production. Developing any market (particularly export) requires a level of critical mass, which allows the industry to adequately service that market. The most common market outlets used by Australian aquaculture producers are the wholesale fish markets.

Abridged from Stoney 2001 – see reference list.

22 Marine and Freshwater Resources Institute, Snobs Creek 6 REFERENCES AND FURTHER READING

Aquaculture Pillay, T. V. R. (1990). Aquaculture – principles and practices. Cambridge University Press. Piper, R. G., McElwain, I. B., Orme, L. E., McCraven, J. P., Fowler, L. G. and Leonard, J. R. (1982). Fish hatchery management. United States Department of the Interior, Fish and Wildlife Service, Washington D. C., USA. 517pp. Shepherd, C. J. and Bromage, N. R. (1988). Intensive Fish Farming. BSP Professional Books, London, UK. 404pp. Stickney, R. R. 1979. Principles of warmwater aquaculture. Wiley-Interscience. John Wiley and Sons Inc. USA. 375 pp.

Integrated Agri-Aquaculture Systems Gooley, G. J and Gavine, F. M. eds. (2002). Integrated Agri-Aquaculture Systems. A Resource Handbook for Australian Industry Development. Rural Research and Development Corporation. Canberra, ACT. Gooley, G.J., McKinnon, L.J., Ingram, B.A. and Gasior, R. (2001). Multiple Use of Farm Water to Produce Fish. RIRDC Publication No. 00/182. Final Report RIRDC Project No. DCM-1A. Rural Industries Research and Development Corporation., Canberra, Australia. 98 pp. Little, D. and Muir, J. (1987). A Guide to Integrated Warm Water Aquaculture. Institute of Aquaculture Publications, University of Stirling, Scotland. 238 pp. Mathias, J.A., Charles, A.T. and Baotong, H. (Eds.) (1998). Integrated Fish Farming: proceedings of a Workshop on Integrated Fish Farming held in Wuxi, Jiangsu Province, People's Republic of China, October 11-15, 1994. CRC Press LLC. 420 pp.

Inland Saline Aquaculture Fielder, D. S., Bardsley, W. J. and Allan, G. L. In press. Survival and growth of Australian snapper, Pagrus auratus, in saline groundwater from inland New South Wales, Australia. Aquaculture. Heuperman et al. (1998). Value Adding to Serial Biological Concentration for Improved Environmental Management. Institute of Sustainable Irrigated Agriculture, Department of Natural Resources & Environment, Tatura. Ingram, B. A., McKinnon, L. J. and Gooley, G. J. (In press). Growth and survival of selected aquatic animals in saline groundwater evaporation basins: An Australian case study. Aquaculture Research. Smith, B and Barlow, C. (eds) (1997). Inland saline aquaculture. Proceedings of a workshop held in Perth, Western Australia, 6-7 August, 1997. ACIAR Proceedings No. 83, 61 pp.

Hydroponics Carruthers, S. (1993). Hydroponic gardening. Lothian garden series.

Legislation DNRE, 2000. DNRE, 2000. Guidelines for farming barramundi in Victoria. Fisheries Victoria. Department of Natural Resources and Environment, Victoria.

Economics Weston, L., Hardcastle, S. and Davies, L. 2001. Profitability of selected aquaculture species. ABARE report for the Fisheries Resources Research Fund, Canberra, January.

Business Planning www.affa.gov.au

Processing DNRE, 2000. Guidelines on fish and crustacean welfare for marketing and preparation for human consumption. DNRE, Victoria. April 2000.

Marketing Stoney, K. 2001 (in press). Integrated Agri-Aquacutlure Systems – a Resource Handbook. Rural Industries Research and Development Corporation.

Marine and Freshwater Resources Institute, Snobs Creek 23 Aquaculture Systems – Ponds Boyd, C. E. (1990). Water quality in ponds for aquaculture. Auburn University, Alabama USA. Egna, H. S. and Boyd, C. E. (1997). Dynamics of pond aquaculture. CRC Press. Ingam, B. A. 1999 (Ed). Towards Best Practice in land-based salmonid farming: Options for treatment, re-use and disposal of effluent. Proceedings of a workshop held at Eildon, 29 April 1998. Marine and Freshwater Resources Institute, Victoria.

Ogburn, D. M., Rowland, S. J., Misfud, C and Creighton, G. (1994). Site selection, design and operation of pond-based aquaculture systems. In: Rowland, S. J. and Bryant, C. (eds) 1994. Silver perch culture. Proceedings of silver perch aquaculture workshops, Grafton and Narrandera, April 1994. Austasia Aquaculture. Rowland, S. J. and Bryant, C. (eds) (1994). Silver perch culture. Proceedings of silver perch aquaculture workshops, Grafton and Narrandera, April 1994. Austasia Aquaculture. Turtle Press, Tasmania. 125 pp.

Aquaculture Systems – Recirculating Aquaculture Systems O’ Sullivan, D. (2000) a&b. Advice for buyers of recirculating aquaculture systems – Parts 1 and II. Austasia Aquaculture. August/ September 2000.

Aquaculture Systems – Cages Beveridge, M. C. M. (1987). Cage Aquaculture. Fishing News Books. Gooley, G. J., De Silva, S. S., Hone, P. W., McKinnon, L. J. and Ingram, B. A. (2000a). Cage aquaculture in Australia: A developed country perspective with reference to integrated aquaculture development within inland waters. In: Liao, I. C. and Lin, C. K. (eds). Cage Aquaculture in Asia: Proceedings of the First International Symposium on Cage Aquaculture in Asia. Asian Fisheries Society, Manila and World Aquaculture Society – Southeast Asian Chapter, Bangkok, pp 21-37. Gooley, G. J., De Silva, S. S., Ingram, B. A., McKinnon, L. J., Gavine, F. M. and Dalton, W. (2000b). Cage culture of finfish in Australian lakes and reservoirs: a pilot scale case study of biological, environmental and economic viability. In: Proceedings of Reservoir and Culture- Based Fisheries: Biology and Management. An International Workshop, Bangkok, Thailand, 15-18 February, 2000.

Aquaculture Species – Barramundi Grey, D. L., 1987. An overview of Lates calcarifer in Australia and Asia. pp 15-21, in Management of wild and cultured sea bass/barramundi (Lates calcarifer). Copland, J. W. and Grey, D. L. (ed). ACIAR Proceedings 20. Canberra: Australian Centre for International Agricultural Research. Barlow, C. (1998). Barramundi. In: The New Rural Industries - A Handbook for Farmers and Investors. (ed. by K. Hyde), pp. 93-100. Rural Industry Research and Development Corporation, Canberra. Barlow, C., Williams K., and Rimmer, M. (1996). Sea bass culture in Australia. Infofish International. Vol 2/96 pp 26-33. DNRE, 2000. Guidelines for farming barramundi in Victoria. Fisheries Victoria. Department of Natural Resources and Environment, Victoria. Barramundi. DPI Note. www.dpi.qld.gov.au; Farming barramundi. www.wa.gov.au/westfish.

Aquaculture Species – Eels Gooley, G. J., McKinnon, L. J., Ingram, B. A., Larkin, B., and Collins, R. O. 1999. Assessment of juvenile eel resources in South-eastern Australia and associated development of intensive eel farming for local production. Marine and Freshwater Resources Institute Final Report FRDC Project No 94/067. Jones, J. B., Astill, M. and Kerei, E. 1983. The pond culture of Anguilla australis in New Zealand - with special reference to techniques and management of the experimental farm at The Kaha , Bay of Plenty. Riv. Ital. Piscic. Ittiopatol. 18 (3&4): pp 85-117 & 138-166. Skehan, B. W. and De Silva, S. S. 1998. Aspects of the culture-based fishery of the shortfinned eel, Anguilla australis, in western Victoria, Australia. Journal of Applied Ichthyology 14 (1-2): pp 23-30. Gooley, G. J.and Ingram, B. A. (2001). Assessment of Eastern Australian Glass Eel Stocks and Associated Eel Aquaculture. Final Report to Fisheries Research and Development

24 Marine and Freshwater Resources Institute, Snobs Creek Corporation (Project No 97/312). Marine and Freshwater Resources Institute, Alexandra, Victoria, Australia. Gooley, G. J. (1998). Eels. In: The New Rural Industries - A Handbook for Farmers and Investors. (ed. by K. Hyde), pp. 101-107. Rural Industry Research and Development Corporation, Canberra. O’Sullivan, D. and Dobson, J. 2000. Status of Australian Aquaculture 1998/99. Austasia Aquaculture Trade Directory 2000-2001. Tesch, F.-W. (1977). The Eel. Biology and Management of Anguillid Eels. Chapman and Hall, London. 434 pp.

Aquaculture Species – Murray cod DNRE, 2001. Murray cod taste testing for Asian markets: Preliminary market appraisal. Aquaculture Unit, Fisheries Victoria, DNRE, State of Victoria. Ingram, B.A.(ed.), 2000. Murray Cod Aquaculture a Potential Industry for the New Millennium. Proceedings of a workshop (Held 18th January 2000, Eildon, Victoria. Department of Natural Resources and Environment, Marine and Freshwater Resources Institute, Victoria, 43pp. Ingram, B. A., Missen , R. and Dobson, J. L. 2001. Best practice guidelines for weaning pond-reared Murray cod fingerlings onto an artificial diet. Marine and Freshwater Resources Institute Technical Report No. 36.

Aquaculture Species – Salmon Davies, P. E. and Mc Dowall, R. M.1996. Family Salmonidae, salmons, trouts, and chars. P. 81-91. In: McDowall, R. M. (ed) Freshwater fishes of south-eastern Australia. Reed Books Australia, Chatswood, NSW. O’Sullivan, D. and Dobson, J. 2000. Status of Australian Aquaculture 1998/99. Austasia Aquaculture Trade Directory 2000-2001. Shepherd, C.J. and Bromage, N.R. (eds.), Intensive Fish Farming. BSP Professional Books, Oxford, pp 17-49. Atlantic salmon Factsheet: DPIWE, Tasmania (www.dpif.tas.gov.au) The Atlantic salmon Aquaculture industry in South Australia (www.pir.sa.gov.au)

Aquaculture Species – Silver perch Rowland, S.J. and Bryant, C. (eds) (1995) Silver perch culture. Proceedings of Silver Perch Aquaculture Workshops, Grafton & Narrandera, 1994. pp. 51-65. Kibria, G., Nugegoda, D., Fairclough, R., and Lam, P. (1998). Biology and Aquaculture of Silver Perch, Bidyanus bidyanus (Mitchell 1838) (Teraponidae): A Review. The Victorian Naturalist. Vol. 115 (2). pp. 56-62. Guo, R., Mather, P. B., and Capra, M. F. (1995). Salinity Tolerance and Osmoregulation in the Silver Perch, Bidyanus bidyanus Mitchell (Teraponidae), an Endemic Australian Freshwater Teleost. Australian Journal of Marine and Freshwater Research. 46, 947-952. O’Sullivan, D. and Dobson, J. 2000. Status of Australian Aquaculture in 1998/99. Austasia Aquaculture Trade Directory 2000. Rowland, S. J. (1998). Silver perch. In: The New Rural Industries - A Handbook for Farmers and Investors. (ed. by K. Hyde), pp. 134-139. Rural Industry Research and Development Corporation.

Aquaculture Species – Ornamentals Beesely, N. and O’Sullivan, D. 2000. Breaking new ground in ornamentals. Austasia Aquaculture. April/May 2000. O’Sullivan, D. and Ryan, M. 2001. Ornamental fish: an opportunity for Australian growers? Austasia Aquaculture. April/May 2001. O’Sullivan, D. and Ryan, M. 2001. Expanding world market sees new industry body formed in WA. Austasia Aquaculture. February/March 2001.

Aquaculture Species – Trout Gooley, G. J. (1998). Trout. In: The New Rural Industries - A Handbook for Farmers and Investors. (ed. by K. Hyde), pp. 140-146. Rural Industry Research and Development Corporation, Canberra.

Marine and Freshwater Resources Institute, Snobs Creek 25 Shepherd, C. J. & Bromage, N. R. (eds.), Intensive Fish Farming. BSP Professional Books, Oxford, pp 17-49. Sedgwick, S. D. 1985. Trout Farming Handbook. 4th ed. Fishing News Books, England.

Aquaculture Species – Yabbies Lawrence, C. S. (1998). Yabbies. In: The New Rural Industries - A Handbook for Farmers and Investors. (ed. by K. Hyde), pp. 147-152. Rural Industry Research and Development Corporation, Canberra. Mills, B. J. (1983). Aquaculture of yabbies. Proceedings of the First Freshwater Aquaculture Workshop held at Narrandera, Department of Agriculture New South Wales. VAC, 2001. Victorian Yabby Producer’s Manual. A code of practice for the Victorian Yabby Aquaculture Industry. Freshwater Crayfish Growers Association of Victoria and the Victorian Aquaculture Council.

26 Marine and Freshwater Resources Institute, Snobs Creek 7 APPENDIX 1: AQUACULTURE SYSTEMS

7.1 POND CULTURE Pond aquaculture is the use of purpose-built, earthen ponds, generally with water supply and drainage infrastructure incorporated, to grow fish and crustaceans. Ponds are the most widely used structure for commercial aquaculture production and are most commonly used in fresh and brackish water aquaculture. In Australia, ponds for aquaculture production are generally static (ie. no regular water exchange), however, intensive systems with high stocking and feed rates and regular water exchange are utilised to produce trout and salmon in Victoria.

Advantages of Pond Culture • Can be relatively cost effective, particularly if gravity fed and drained. • Some control over growing conditions (eg nutrient inputs). • Minimises loss of stock through escapement or predation compared to more extensive operations.

Disadvantages of Pond Culture • Moderate to high land requirement and construction costs. • Little control over ambient environmental conditions (eg temperature). • Stock management may be difficult. • May have some water consumption where evaporation is high.

Systems There are several types of pond currently used in aquaculture. Some of these, eg. barrage ponds (ie ponds filled by rainwater or springwater), diversion ponds and sunken ponds, use the natural topography of the land. Tidal ponds are typically used in brackish water areas with flat land and moderate to high (1-2m) tidal ranges. Pumped ponds can be set up in a variety of configurations with pumps used as primary or supplementary water supplier. Pumps increase availability and versatility of sites, and may be utilised in perpetual flow or static ponds.

Static ponds may vary greatly in size and depth, depending on site characteristics, culture species and the intensity of the operation. As a general rule static ponds are 0.1-2.0 ha in area and 1.0-2.0 m deep. Purpose-built aquaculture ponds may have a sloping bottom from 1.0 m draining to a harvesting sump 1.5-2.0 m deep. Such ponds may be filled and drained at the sump.

There is no standard classification of ponds for aquaculture. The most meaningful classification of aquaculture pond systems may be categorised by the intensity of management inputs and the amount of production from the system. These classifications are: 1. Extensive. Stocking densities are low. There is little input of nutrients and the production is quite low. 2. Semi-intensive. Stocking densities are higher, and will require supplementary feeding. Nutrient input is higher, and production is greater. 3. Intensive. High stocking densities are employed. Large amounts of feed are applied and high water exchange and/or mechanical aeration are required. Production and risk of stock losses is high.

The most common types of pond layout are: Series. Water moves from one pond to the next by gravity. May maximise water use and minimise plumbing, but increases risk of disease transfer and compromises water quality. Parallel. Ponds fed independently. May use more water, but provides better environmental control and simpler management.

Marine and Freshwater Resources Institute, Snobs Creek 27 Species In Australia, ponds are mostly used in the commercial production/growout of native freshwater fish (such as Murray cod and silver perch), freshwater salmonoids and freshwater crayfish. In brackish water ponds prawns and some fish are commonly cultured.

In Victoria, ponds are mainly used in commercial nursery production of native freshwater fish, aquarium fish, and growout of yabbies and rainbow trout. Ponds are also commonly used for brood stock holding and conditioning.

Resource Requirements and Site Selection Site selection is of critical importance in pond aquaculture and factors to consider prior to pond construction include: • Water supply. An abundant supply of good quality water is essential for pond aquaculture. It has been estimated that 40 ML/ha/yr is required for static pond culture. If possible, the water should be gravity fed. • Water quality. The water supply should be free from pollutants and water quality should be suitable for the species to be cultured. • Soils. For growing native fish, ponds should also have relatively wellstructured soils with high organic content to support pond ecosystems. Ideally, ponds should be constructed in relatively impermeable soils to minimise water losses. Permeability can also be reduced by: ⇒ Compaction of soil in situ, or with introduced clays or bentonite. ⇒ In extreme cases liners can be used to reduce seepage. Liners may be made of PVC HDPE and/or geotextile material. • Topography. Pond design should make best use of the available landforms to minimise costs in pond construction and operation. If possible ponds must be designed so they can be drained completely. Gravity drainage will reduce pumping costs during harvest, and will aid in pond management. Restrictions may be placed on the construction of ponds if the proposed site is susceptible to flooding, or for other environmental concerns that may be raised during the statutory planning process. • Climate. The ambient temperature will dictate the species that can be cultured and the growing season. Other important meteorological information that should be reviewed includes: rainfall, evaporation, day length, wind speed and direction and also the frequency and intensity of storms. • Effluent. Methods of cost-effective and environmentally sensitive effluent disposal should be evaluated at the planning stage. It is in the farmer's interest to minimise environmental impacts from pond culture. A number of options for the disposal of pond effluent exist, including the use of settlement ponds, hydroponics (see 2.3) and irrigating pasture, agricultural crops or agro-forestry.

Stocking densities In extensive pond culture, the productivity of ponds depends upon the soil and water chemistry, location and water exchange. These factors limit the degree of primary productivity in the pond, and therefore the carrying capacity. In extensive systems, yields are typically low and economics dictate that extensive pond culture is often not commercially viable. In semi-intensive pond culture, production is increased through higher stocking densities, supplementary feeding and improved feed quality. In ponds, fish culture and primary production are correlated, so the fertilisation of ponds will increase fish production, particularly at the nursery stage. Fertilised ponds are commonly used for the nursery rearing of native warmwater fish such as Murray cod. Organic and inorganic fertilisers may be used to increase the productivity in semi-intensive pond systems.

Intensive pond culture generally applies to pond systems where supplementary feeds, such as pelleted diets, are the primary source of feed for the growout of various species such as native fish, yabbies and salmonoids. Stocking densities in such systems are much greater than for semi-intensive systems, and often require additional energy input, such as mechanical aeration and/or high water exchange rates.

28 Marine and Freshwater Resources Institute, Snobs Creek 7.2 CAGE CULTURE

Cage culture is an aquaculture production system where fish are held in floating net pens. Cages are widely used in commercial aquaculture overseas and individual cage units come in all shapes and sizes and can be tailored to suit individual farmer’s needs. Cage units can be purchased through commercial outlets, but can also be made from readily available construction materials such as polypipe, wood or/and steel. Cages can be used in both freshwater and marine environments. The advantages and disadvantages of cages compared with other culture systems, include:

• Advantages of cage culture ⇒ Use existing waterbodies. ⇒ Technical simplicity with which farms can be established or expanded. ⇒ Lower capital cost compared with land-based farms. ⇒ Easier stock management and monitoring compared with pond culture.

• Disadvantages of cage culture. ⇒ Stock is vulnerable to external water quality problems eg. Algal blooms, low oxygen. ⇒ Stock is more vulnerable to fish eating predators such as water rats and birds. ⇒ Growth rates are significantly influenced by ambient water temperatures.

Systems Intensive and semi-intensive cage culture systems are those where fish are stocked at high density and are fed on artificial diets. Appropriate stocking densities will depend on the species stocked and prevailing environmental conditions.

Extensive systems are those which rely on the natural productivity of the water and require no external feeding. These systems could be used in Australia to culture omnivorous or herbivorous fish, but there are few commercial aquaculture species that feed on plankton. MaFRI has used extensive cage culture to successfully grow goldfish and carp in wastewater, however, the species options for this type of aquaculture are limited as many of the likely candidates are exotic and bio- security cannot be ensured in cage culture.

Species A number of species are already grown commercially in cage culture overseas and if appropriate to the Victorian climate would probably be successful here. Notable examples are rainbow trout, brown trout and Atlantic salmon. These species have also been successfully trialed in Victorian waters. The adaptability of most Australian native species to cages is currently unknown, but research is underway to assess the suitability of Murray cod and silver perch to culture in cages. Barramundi is an Australian native fish and is commonly cultured in cages anchored in ponds.

Resource Requirements and Site Selection Cage culture can be integrated into almost any standing water on your property, provided that the water quality is suitable and there is adequate water depth beneath the cages to allow water movement. “Adequate depth” depends on the depth of the net and intensity of production. The depth should be sufficient to keep the nets clear of the sediment and allow water exchange beneath the nets.

Weather and shelter are important considerations in determining the suitability of a site for cage culture as they can impact on both the cage structure and enclosed fish. The cage units should be built to withstand prevailing wind and wave conditions at the selected site. Good water exchange is also important in cage culture to replenish oxygen and flush away wastes.

Marine and Freshwater Resources Institute, Snobs Creek 29 Water quality factors such as temperature, salinity, pH, suspended solids and the presence of algal blooms can potentially influence the growth and survival of your fish. In addition, sources of pollution and the tendency of the water body to stratify during the summer can also negatively impact on water quality.

Environmental Issues The success of cage culture depends on maintaining good water quality around the fish cages and so it is in the farmer’s best interests to minimise environmental impacts. Ensuring that the size and intensity of the operation is appropriate to the size of the water body and the rate of water exchange, is the key to avoiding adverse impacts on water and sediment quality. Environmental issues related to cage culture include: • Nutrient enrichment of waters, which can lead to, increased algal growth and downstream impacts. • Sediment accumulation which can lead to a deterioration in sediment and water quality. • Interactions with wild fish populations.

Impacts from cage culture are largely from uneaten feed and fish excreta, which can alter water and sediment chemistry if the wastes accumulate near to, or under, the cages. Good water exchange can prevent a build up of these wastes.

Generally, the environmental impacts of cage culture can be minimised through: • Proper site selection. • Appropriate anchoring or mooring systems. • Using extruded low nutrient diets. • Keeping feed wastage and Food Conversion Ratios (FCRs) low.

Best Practice Management Guidelines for cage culture are under development.

Carrying Capacity In semi-intensive and intensive systems the number of fish that may be stocked will be limited by the “carrying capacity” of the water. This can be calculated using standard methodology; however, research is required to adapt these techniques to Australian conditions.

Legal Considerations The use of cage culture in private waters will not require special licensing, however, cage culture in public waters may be more difficult. Since it is relatively new to Australian inland waters, most of the regulatory authorities have not developed policies towards cage culture and this will make gaining permission to moor cages in public waters difficult. Some water authorities (eg. Goulburn Murray Water) have started to address the issue and have formulated a policy.

30 Marine and Freshwater Resources Institute, Snobs Creek 7.3 RECIRCULATING AQUACULTURE SYSTEMS

Recirculating Aquaculture Systems (RAS) are systems which re-use water with mechanical and biological treatment between each use. A recirculating system generally occupies very little area, requires less water than conventional aquaculture and provides a predictable and constant environment for the culture species. RAS technology can be useful where land or water is limited, where water is of poor quality, if temperatures are outside the optimum range of the species to be cultured or if the species is exotic. It can also be usefully employed where ideal sites are unavailable or when the effluent stream needs to be controlled. A more intensive farming approach can be applied in recirculating systems than in open systems such as ponds, cages or flow through systems.

The level of control provided by recirculating systems can provide a basis for improved risk management. The trade off however, is the increased dependence on technology and associated expense and expertise to manage it. Recirculation systems are expensive to purchase and operate and for this reason it is usually only economically viable to farm high value species in these systems. Recirculating systems represent relatively new technology with a wide variation in system design and quality available. When selecting a supplier or consultant, a potential grower should check their track record for the construction of recirculation systems, after sales service in technical and husbandry advice and ensure that the system will produce the tonnage of fish that has been originally specified.

Principles of Recirculation Systems A recirculation system is a closed system with culture tanks, filtration and water treatment components. The culture species is grown in tanks and the water is exchanged continuously to guarantee optimum growing conditions. Water is pumped from the tanks through biological and mechanical filtration systems and then returned to the tanks. A good general knowledge of the principles of water chemistry and a good biological knowledge of the species being cultivated, including an understanding of disease prevention, identification and treatment, is essential in recirculation system management.

Advantages • All aspects of the production environment may be controlled to achieve optimum growth; • Low water consumption per tonne of fish produced; • Impact on the external environment minimised by containing and treating wastewater; • Production facility can be operational all year round. • The ability to produce species outside their natural range.

Disadvantages • High capital costs (a 20 tonne system can cost approx. $250,000 - $500,000 to establish); • High operational cost ($7-10 for each kilo of fish produced); • Constant maintenance by trained personnel required.

Principal Components Production tanks vary in size and shape however round plastic or fibreglass tanks between 5,000 and 15,000 litres in capacity are most commonly used. Smooth round tanks with conical bottoms are preferred as solids can be concentrated by circulating water and subsequently removed from a central drain. For the integration of fingerlings, nursery tanks incorporated into the main system or smaller floating cages within the main tanks are generally used. This facilitates closer management of juvenile stock. Quarantine tanks, isolated from the main production system are useful in minimising disease transfer risk, particularly when new stock arrives and can also ensure that any medication used on stock does not interfere with biological filtration of the main production system.

Marine and Freshwater Resources Institute, Snobs Creek 31 Oxygen Generation or Aeration Fish require oxygen to survive. Recirculation systems usually facilitate stocking at very high densities. This is subject to the oxygen available and simple mechanical aeration systems may not be sufficient. Oxygen can be added to the system via liquid oxygen and/or an oxygen generator to maintain required oxygen levels of above 60% saturation. If the fish are stocked at very high densities, oxygen saturation of over 100% is sometimes required.

Biological and Mechanical Filters Fish produce ammonia and nitrites as metabolic waste products. These waste products become toxic to the fish if allowed to build up above certain levels and need to be converted to harmless nitrates. This is done using a biofilter, which is a medium upon which nitrifying bacteria colonise and grow. Common biofilter types include gravel, rotating biological contactor, bead filters, trickle filters and fluidised bed filters. The recirculating water passes through this biofilter and as it does so the nitrifying bacteria convert the toxic ammonia and nitrites in the water into non-toxic nitrates via oxidation. This process is known as nitrification.

Mechanical filtration in recirculation systems is necessary to remove solids such as faeces, uneaten feeds and biofilter floc. Many systems crash due to inadequate mechanical filtration. If excess solids are deposited on the biofilter there can be a reduction in bacterial action and a resulting elevation in ammonia and nitrite levels. Additionally, excess organic matter in the recirculating system may increase risk of disease development. There are several types of mechanical filter available such as screens, sand, gravel, bead filters, or settling devices. Several mechanical filters may have to be incorporated to ensure complete removal of solid waste matter.

Temperature Controllers Temperature requirements vary with different culture species and it is vital to maintain temperature within the optimal range for growth for the particular species to be cultured. Fish grow more rapidly, achieve optimal food conversion ratios and are less stressed and less prone to disease within this range. Heat exchangers, electric submersion heaters/coolers, or air injection can be used to achieve the right temperature.

Stocking Densities The loading capacity of recirculating production systems depends on flow rate, oxygen availability, filter and heat exchange unit efficiency and the particular requirements of the culture species. These requirements vary between species; for example under optimum conditions eels can be grown at stocking densities of >300 kg/m3 whereas Murray cod can be grown at >100 kg/m3. The higher the density that a species can be cultured without negatively impacting growth rates or fish health, the more viable recirculating systems are. Another important factor in the viability of recirculation systems is the market price per unit product.

Economic Considerations The cost of establishing and operating a viable recirculating facility can be higher than expected. There are computer models available that can be used to assess the merits of developing a recirculating aquaculture venture (AquaFarmer feasibility software). The larger the system, the more economically viable it will be. Low cost, small scale entry into the industry is often recognised as a means of limiting financial exposure while gaining valuable experience however this can lead to complex equipment retro-fitting, higher production risk margins and technological short cuts that may be costly in the medium to long term. While there may be an incentive to de-construct component parts by adding or subtracting from established designs, in practice this should not be considered lightly. It must be recognised that recirculating systems involve complex water chemistry in a finely tuned balance and that deviation from proven designs increases venture failure risk significantly.

32 Marine and Freshwater Resources Institute, Snobs Creek 8 APPENDIX II: AQUACULTURE SPECIES

8.1 BARRAMUNDI

Scientific Name: Lates calcarifer Bloch, 1790

Environment and Status: Native, demersal - freshwater, brackish, marine (Northern Australia); Common: Not native to Victoria. Distribution: Barramundi or sea bass (as it is commonly known as in Asia) is naturally found globally through the Indo-West Pacific region. In Australia they inhabit the tropical coastal and freshwater systems of the north.

Aquaculture Status in Victoria Currently there are three barramundi producers in Victoria. Interest in this species is growing rapidly due to its favourable attributes for culture in recirculation systems. This species is primarily farmed in Queensland, Northern Territory, Western Australia, South Australia and New South Wales. Most producers in the northern parts of Australia grow fish using cages in freshwater ponds or estuarine waters. In the southern states, barramundi are mainly grown in heated indoor intensive recirculating tank systems - the only system permitted in Victoria. One producer in South Australia utilises hot artesian bore water in a flow-through system.

Production and Value 1.00

The barramundi aquaculture industry has 0.80 developed in Victoria only recently due to the adoption of the Barramundi Guidelines (DNRE, 0.60 2000). In 2000, production has been estimated at 0.5 tonnes (Figure 8.1) but this is Tonnes 0.40 likely to increase substantially in the future. 0.20 Broodstock 0.00 Victoria has published guidelines for the 1997/98 1998/99 1999/00 farming of barramundi, which is not native to the state. The policy aims to minimise the risk Figure 8.1 Barramundi production 1997-2000 of transferring Barramundi Picorna-Like Virus (estimated) (BPLV) to native fish. The policy prohibits the hatchery production of barramundi in Victoria (DNRE, 2000).

Hatchery and Juvenile Production Interstate hatcheries may supply fingerlings to Victorian growers only if strict permit conditions are met. Only fingerlings over 42 days old (no eggs or larvae) may be transported to ongrowing facilities in Victoria. In addition, barramundi can only be transported to authorised Fish Culture Permit holders and they must be purchased from an approved health certified hatchery.

Grow-out Systems:

Intensive. The only growout systems approved for the culture of barramundi in Victoria are intensive recirculating tank grow-out systems. These systems are regarded as “bio-secure” and minimise the risk of fish escape or disease transfer. Given that barramundi are a tropical fish closed recirculating systems allow the maintenance of high water temperatures required for good growth and survival.

Marine and Freshwater Resources Institute, Snobs Creek 33 There are strict controls placed on the siting, operation and management of barramundi aquaculture systems in Victoria. Commercial growout in intensive recirculation systems starts once the fingerlings reach 30-80 mm. Stocking rates in tank systems vary depending on the intensity of the operation, but a medium stocking density of 30-40 kg/m3 is generally adopted. More sophisticated systems may be able to increase stocking densities but will be dependent on good farm management skills to maintain survival rates. Water quality requirements of barramundi are shown in Table 8.1.

Barramundi are carnivorous fish and require a high protein diet for efficient growth. Juveniles are readily weaned onto high quality extruded diets. Commercial barramundi diets are available from a number of feed suppliers and FCRs of 0.7:1 to 2.0:1 have been reported. The fish exhibits fast growth rates and can grow to 300mm/375g in 5 months.

Culture Attributes: • Fast growth rates; Readily weaned onto high quality extruded diets. • Existing supply of juvenile stock for culture in grow-out facilities. • Readily school and adapt easily to high stocking densities. Table 8.1 Water Quality Parameters for Barramundi Aquaculture Parameter Lower Level Upper Level Optimal Range Water temperature (oC) 20 38 28-32 Salinity (ppt) 0 35 - Dissolved oxygen (mg/l) 4 12 >5 pH (scale) - - 6.5-8.0

Marketing Attributes Barramundi is internationally regarded as a premium table fish. It has large firm flakes of tender white flesh. Australian barramundi is considered superior to those produced in other locations. Opportunities to develop overseas markets for barramundi are probably limited due to Australia’s high production costs. In local markets, barramundi has a well-established position in the market place and there are a number of products available to the producer. These include: live fish trade; plate sized whole (300-500g); and fillet or larger whole fish trade.

Economic Factors Since the only approved system for the 16 culture of barramundi in Victoria is intensive 14 1999 2000 2001 recirculation systems and the design and 12 operation is strictly controlled, there is a minimum level of investment required 10 (probably around $200,000) before 8 barramundi can be considered a realistic 6

proposition for IAAS. ($/kg HOGG) 4 Careful consideration of the market price 2 against the level of capital investment 0 required is necessary before opting to 123456789101112 invest in barramundi aquaculture. The Month average market price for growers are $9- 10/kg, but this has fallen in recent years. Figure 8.2 Market Price for Barramundi (Source Industry Organisations: SFM) Australian Barramundi Farmers Association (ABFA), PO Box 19, Mourilyan, Nth Qld 4858. Contact: Chris Phillips Tel: 0418 184 845

34 Marine and Freshwater Resources Institute, Snobs Creek 8.2 EELS (SHORTFIN AND LONGFIN)

Scientific names: Anguilla australis Richardson, 1841 (Shortfin) Anguilla reinhardtii Steindachner, 1867 (Longfin).

Environment and Status: Native - fresh and salt water, common.

Distribution: The shortfin eel is a temperate species but with a natural range which extends from southeast Queensland through to Victoria, Tasmania and the Murray River in South Australia. In contrast, the longfin eel is a typically a more sub-tropical species but also has a broad natural distribution extending from northern Queensland through to eastern Victoria and north- eastern Tasmania.

Aquaculture Status in Australia Commercial producers in Victoria, Tasmania, New South Wales, and Queensland rely solely on the capture of seedstock (glass eels and elvers) from the wild. Currently there is no commercial supply of Australian glass eels although a number of industry groups, in collaboration with state agencies in Victoria, New South Wales and Queensland, have obtained permits to capture glass eels (50-200kg/state). These eels are primarily used for commercial grow-out trials in intensive freshwater recirculation systems. Wild elvers and sub-adult eels are translocated from Victorian and Tasmanian coastal rivers to public and private lakes, swamps, wetlands and farm dams where they are left to grow (extensive) to marketable size. The majority of production is from Victoria with 225 tonnes produced in 1998/99 (O’Sullivan and Dobson 2000).

Hatchery and Juvenile Production Due to the complexity of the eel’s reproductive cycle there have been no successful efforts in spawning shortfin or longfin eels in captivity. Newly caught glass eels are usually fed a diet of minced fish or fish roe for 2-4 weeks before commencement of weaning onto artificial diets.

Grow-out Systems:

Intensive Intensive grow-out systems for eels are recirculating tanks systems. Eels have a high stocking density tolerance (<100 kg/m3) which means that a large number can be produced in a relatively small area. Food conversion rates in Asian and European systems vary between 0.9 and 1.9:1. Medium to fast growth rates are achieved in these systems with elvers growing from 2.5 g to 180-200g in 9-18 months. Survival rates (after 2-3 months) are 75%.

Semi-intensive Semi-intensive culture of eels is usually conducted in earthen ponds. Growout ponds usually range in size from 0.2-2 ha and are 1-1.5 m deep. Glass eel seedstock to can be grown to a harvest size of 180-200g in 6-18 months in Queensland. In Northern NSW, it is expected that eels could reach market size (200-300g) in 18-24 months. High stocking densities (<50 kg/m3) can be reached in pond systems. Efficient food conversions (1.1-1.5:1 FCR) can be achieved and survival rates (after 2-3 months) are 75->90%.

Marine and Freshwater Resources Institute, Snobs Creek 35 Extensive Extensive grow-out can occur in public and private lakes, swamps, wetlands and farm dams. Stocking rates of 0.0045-0.1457 kg/ha (with an average of around 1000 elvers/kg) are equivalent to 4.5-145.7 fish/ha. Yields range from <3kg/ha/yr to 160kg/ha/yr, depending on the location of the pond and other environmental factors. Growth rates are slow (>1 kg took 8-13 years after stocking).

Marketing attributes Eels have firm to medium, white to pink flesh. Eels may be sold whole when fresh or frozen, but are usually smoked and also sold as cutlets. In Japan “kabayaki” (small skinned, steamed and grilled eels) is regarded as a delicacy. Eels are highly regarded in Asian markets and attract a premium price. Prices vary in local markets vary, with best prices are reached for live product.

Economic factors Eels generally fetch a market price of between $10-12 per kilo in Tasmania and Victoria.

Industry Organisations Victorian Eel Fisherman's Association, RMB 4220, Timburn, VIC 3268. Tel (03) 5598 5364.

36 Marine and Freshwater Resources Institute, Snobs Creek 8.3 MURRAY COD Scientific name: Maccullochella peelii peelii Mitchell, 1838

Environment and status: Native (demersal)- freshwater, threatened. Distribution: Naturally found north of the Great Dividing Range throughout the tributaries of the Murray River and the Murray Darling Basin.

Aquaculture Status in Victoria There are currently 35 commercial producers in southeastern Australia of which 15 are producing fingerlings for stock enhancement and aquaculture. To date, 16 have produced table fish both in ponds and in recirculation systems.

Production and Value Production of Murray cod in Victoria has increased rapidly over the past 2-3 years, primarily due to the success of one large recirculation system (Figure 8.3). In 1998/99, Victoria produced approximately 20 tonnes of Murray cod and 162,000 juveniles with a value of $559,000 (O’Sullvian and Dobson, 2000). Estimates for the 1999/2000 production year have been put at 80 tonnes with a market value of around $1.5 million. It is expected that production will continue to increase over the next few years as a number of hatcheries and growout systems are under development.

Broodstock Murray cod broodstock are usually wild-caught, as there is currently no supply of mature farmed broodstock. Procuring broodstock is likely to become more difficult in the future, as there is no commercial fishing permitted in NSW and Victoria. The industry is trialing the use of domesticated broodstock and in time this should improve the genetic quality and disease status of juveniles. Broodstock are kept in small static ponds and fed yabbies, goldfish, trout or ox liver. The fish spawn in nesting boxes in the pond. The eggs are removed from the boxes and transferred to the hatchery. Smaller fish can be induced to spawn using hormones. 90 Hatchery and Juvenile Production: 80 70 In recent years techniques have been 60 developed to enable large-scale hatchery 50 production of Murray cod juveniles, however 40 juvenile production is still largely seasonal. Tonnes 30 The fish spawn between October and January 20 each year, the eggs are incubated in tanks and 10 take about 6-11 days to hatch. The fry are 0 then transferred to outdoor fertilised earthen 1997/98 1998/99 1999/00 ponds (stocking density approximately 35 fry/m²) where they feed on natural food. Figure 8.3: Murray Cod Production 1997-2000 Alternatively, techniques have been developed (estimated) to wean juveniles directly onto commercial diets (Ingram et al, 2001). At 30-50 mm (8-10 weeks old), the juveniles are ready to be transferred to growout systems.

Grow-out Systems: Intensive. The most popular growout systems for Murray cod in Victoria are intensive recirculating tank systems (RAS). Murray cod has proved to be very tolerant of high stocking densities (80-150 kg/m3) but oxygen injection is required with very high stocking levels. Murray cod display efficient food conversion (<1.5:1) in these systems with medium-fast growth rates (2g to 500-1000g in 12 months). Survival rates are >80%, but this is dependent on the management of water quality and

Marine and Freshwater Resources Institute, Snobs Creek 37 good fish husbandry techniques. Smaller recirculation systems have stocking rates of 30-40 kg/m3, FCRs of 1.5-2.0 and reach market size in around 12-18 months. Lower stocking densities generally reduce the risk of system failure, as there is a lower load on the biological filter. Table 8.2 Water Quality Parameters for Murray Cod Culture. Parameter Lower Level Upper Level Optimal Range Water temperature (oC) 9 34 20-25 Salinity (ppt) - - <6.0 Dissolved oxygen (mg/l) 4.0 - >5.0 pH (scale) 5.5 - 6.5-8.0

Semi-intensive. The most common semi-intensive systems for rearing Murray cod are ponds. These systems are stocked as highly as the RAS systems, but can produce up to 14 tonnes/ha/year. Water is not exchanged regularly in these systems, but is added to the pond on a regular basis to compensate for evaporation and seepage losses. It takes longer for fish grown in ponds to reach market size; up to 24 months in northern Victoria. Cage culture is another semi-intensive culture option, however there is limited information on the performance of Murray cod in cages. Trials are being carried out to determine optimal stocking densities and culture methods. In Victoria, there are restrictions on stocking Murray cod in ponds and cages south of the Great Dividing Range.

Extensive. Extensive grow-out in farm dams and ponds is commonly at stocking rates of 300-500 fish/ha. These fish feed on predominantly natural feeds and have growth rates of 2-3 kg in about 3 years.

Culture attributes of Murray cod grown extensively 30 1999 2000 2001 in ponds include: 25 • Existing juvenile production. • Relatively tolerant to water quality conditions. 20 • Commercial diets are being developed for the 15 species.

• Medium-fast growth rates. ($/kg HOGG) 10 • Efficient food conversion. 5

Marketing Attributes 0 The eating quality (firm white flesh) of Murray cod 123456789101112 is highly regarded by both domestic and export Month markets and is suitable for Asian and Western cuisine. Recently, a taste-testing study was Figure 8.4 Market Price for Murray Cod (Source undertaken with representatives from four Asian Sydney Fish Market) countries with the fish very well received in terms of flavour, texture and colour (DNRE, 2001).

The Murray cod aquaculture industry is still in its infancy in Victoria and production from this sector is expected to grow significantly over the next few years. Market development is currently being undertaken by the existing industry to build demand for the fish in the domestic market and overseas. It is thought that there is significant demand for the product to be exploited in both the domestic and international markets. Preferred sizes vary with markets and the time of year, and may range from 500g to 3.0kg. Larger Murray cod are also in demand, however the economic viability of growing these fish must be considered.

Economic Factors Murray cod have enjoyed a relatively high market price in recent years and market size fish generally fetch between $15-25/kg at the Sydney Fish Market (Figure 8.4). Cultured produce traditionally has a lower market price than wild Murray cod, which tend to be larger, but recent restrictions on wild fisheries may have a positive impact on wholesale fish prices. Higher prices can be gained by selling live fish directly to the restaurant trade ($ 20-30/kg). Weaned juveniles are valued at $0.60-1.10/fish.

Industry Organisations Murray Regional Aquaculture Association, PO Box 273, Deniliquin, NSW 2710. Tel: 03 5884 6649 Contact: Paul Trevathan.

38 Marine and Freshwater Resources Institute, Snobs Creek 8.4 ORNAMENTAL SPECIES Scientific name: Various; see table 8.3.

Status: Mainly exotic, some interest in native (especially tropical) species.

Distribution: Various.

Aquaculture Status in Australia The culture of ornamental fish species is a growing industry in Australia. For many years the keeping of ornamental or aquarium fish has been a major activity in Australia with several million hobbyists. The majority of fish have come from overseas (mainly Singapore) but local farm production has been increasing. In 1998/99 more than 15 million fish were sold, of which 50% were produced locally, mainly in Victoria (O’Sullivan and Dobson 2000). The popularity of tropical native species is also increasing, inspiring more investigations into their culture by local breeders. Some growers are interested in producing juvenile food fish (eg barramundi, cod, coral trout, snapper and giant clams) for the ornamental market. Many native freshwater species also offer aquarium potential, including smelts, galaxids, catfish, rainbowfish, hardyheads, perches, gudgeons and gobies.

Table 8.3 Some ornamental fish species bred in Australia (after O’Sullivan and Ryan 2001) Common name Origin Scientific name Water supply

Angelfish Exotic Pterophyllum scatare Freshwater Bristlenose catfish Exotic Ancistrus dolichopterus Freshwater Corydoras catfish (4 spp) Exotic Corydoras spp. Freshwater Goldfish Exotic Carassius auratus Freshwater Koi carp Exotic Carassius carpio Freshwater Guppies Exotic Poecilia reticulata Freshwater Platys Exotic Xiphophorus variatus, X. maculatus Freshwater Mollies Exotic Poecilia latipinna Freshwater Rams Exotic Microgeophagus ramirezi Freshwater Siamese fighting fish Exotic Betta splendens Freshwater Swordtails Exotic Xiphophorus helleri Freshwater Walking fish Exotic Axolotl sp. Freshwater Red tiger oscars Exotic Astronotus ocellatus Freshwater Gouramis Exotic Trichogater spp, Colisa spp. Freshwater Red rainbow Exotic Glossolepis incisus Freshwater Fat bellied seahorse Exotic Hippocampus abdominalis Marine Rainbowfish Native Melanotaenia spp. Freshwater Clown fish Native Amphiprion spp. Marine

Production and value The total value of the exotic aquarium industry is estimated at $4.8M. Total sales for native species were worth over $0.5 M in 1998/99, and expected to grow significantly (O’Sullivan and Dobson 2000).

Hatchery and Juvenile Production Some popular aquarium species have not yet been bred successfully under culture conditions. Many species, however, are relatively easy to breed and a variety of different techniques exist, depending on the species. Breeding pairs are generally placed in individual tanks, with a spawning substrate. Many species spawn year-round. Eggs are laid on spawning substrates and then the eggs and parents are separated (to prevent the parents eating the young) and young fish transferred to growout units.

Breeding techniques for native species are also variable; some simply reproducing in small ponds and others requiring hormone induction.

Marine and Freshwater Resources Institute, Snobs Creek 39 Grow-out Systems

Semi-intensive. Most farms grow their fish in open ponds with at least some water exchange and fairly comprehensive predator protection. In southern latitudes, tropical fish production requires an insulated and heated building, housing many aquaria. Outdoor and indoor tanks are also used, depending on the species and location, and including indoor recirculating systems, enabling maintenance of appropriate water temperatures. Individual species are usually housed in separate units. Young are fed live feeds (eg Daphnia, Artemia), various mash feeds, crumbles and pellets, and ready for sale after three to four months.

There may be opportunities for growing ornamentals in wastewater aquaculture IAAS.

Culture Attributes • Many species hardy; • Culture and breeding techniques well established for many species; • High fecundity; • Fast growout.

Marketing Attributes: There is a strong, existing domestic market for ornamentals and aquarium fish, with a growing interest in new species - including native fish. There is also potential for developing export markets, particularly with local species. Local production of exotics will continue to increase, led by culture of seahorses. Prices for individual fish vary from about A$0.35 to A$5, but an individual fish can reach more than $20 (Saratoga in Queensland). (O’Sullivan and Dobson 2000).

Industry Organisations: Victorian Ornamental Fish Growers 60 Station Rd, Wesburn, VIC 3799. Tel (03) 5967 1693 Fax (03) 5967 1697.

Pet Industry Joint Advisory Council, [email protected]

40 Marine and Freshwater Resources Institute, Snobs Creek 8.5 ATLANTIC SALMON

Scientific name: Salmo salar Linnaeus, 1758. Environment and Status: Exotic (benthopelagic)- freshwater, brackish, marine. Distribution: Naturally found in western Atlantic coastal drainages from northern Quebec in Canada to Connecticut in USA, and within the eastern Atlantic drainages from the Arctic Circle to Portugal. Unsuccessful initial stocking in Tasmanian and Victorian waters during the late 1860s. Re-introduced into New South Wales from Nova Scotia in 1963-65. Stocking of Burrinjuck Dam and Lake Jindabyne, New South Wales, on an annual basis (Davies and McDowall 1996).

Aquaculture Status in Australia Now well established, the majority of Australia's Atlantic salmon industry is in sea cages in south-east Tasmania and began over 17 years ago (1984-1986). There are four licensed producers in north-east Victoria; a commercial-scale fish farm producing premium grade salmon caviar, and three tourist fish farms where fish are stocked for angling. South Australia produced around 14 tonnes in 1998/99. Total Australian production for the same period was 7,134 tonnes (O’Sullivan and Dobson 2000).

Broodstock Atlantic salmon spawn once per year in May- June and may be artificially stripped in a hatchery environment. Female broodstock can lay up to 1,800 eggs/kg bodyweight which are fertilised by mixing with male milt and then placed in hatching troughs. Depending on the water temperature, the eggs hatch 40-80 days later and the young salmon feed on their yolk sac for a further 20-35 days. The fish are weaned onto artificial diets almost immediately and the larvae are held in freshwater raceways for a short period (approx. 20 days) before being transferred to large freshwater ponds or cages in freshwater lakes.

Hatchery/Juvenile Production Atlantic salmon are anadromous fish, i.e. they live most of their life in the sea, but migrate to freshwater to spawn. To achieve the best growth rates, the aquaculture production cycle mirrors the natural cycle and involves two distinct phases: juvenile production in freshwater (1-2 yrs), followed by growout in seawater. Juvenile fish grow rapidly in freshwater and after 8-15 months, a proportion of the stock are transferred to sea (at around 60-200 g) as salmon “smolts”. Other fish grow more slowly, however, and will require a further year in freshwater before being transferred to sea.

Grow-out Systems

Intensive The most common growout systems for Atlantic salmon are sea pens/cages. These cages are moored in estuaries or offshore and are stocked initially at a rate of less than 1kg/m3, the aim is to reach a maximum density at harvest of 12-15kg/m³. This stocking density is low compared with those used overseas, but the fast growth rates compensate for the lower density. The fish are fed commercial pelleted diets and consistently achieve FCRs of 1.4-1.5:1. Salmon are harvested from the sea cages after one year at a weight of approximately 4kg.

Marine and Freshwater Resources Institute, Snobs Creek 41 Semi-intensive Semi-intensive salmon farms in Victoria use flow through “Danish” pond systems similar to those used by the trout industry. Around 1 ML of water per day is used to produce 1 tonne of harvest sized fish per annum. One Victorian salmon farm does not have a sea phase in its production cycle; its focus is on producing premium quality caviar rather than maximising growth rates. Salmon held in freshwater for their entire life cycle have slower growth rates than those transferred to sea. In Tasmania, smolts are produced in ponds or tanks.

Extensive Atlantic salmon are often stocked into tourist fish ponds due to their superb fighting skills on rod and line.

Culture attributes • Techniques for breeding and ongrowing are well-established; • Fry are easily weaned onto artificial diets and species-specific diets are readily available;

Atlantic salmon inhabit waters of 0-20oC, but their optimum temperature is 10-16oC (Shepherd and Bromage 1990).

Marketing attributes The flesh of the Atlantic salmon is pale to dark and reddish pink, it has soft medium-sized flakes with a mild, distinct flavour. Australian salmon is recognised as being amongst the highest quality in the world and this is a huge marketing advantage. The Australian industry does not suffer the same disease problems as salmon farms in other areas of the world. It is highly regarded in Asian markets (approx. 70% exported to Japan), with a premium price in excess of AUS$12/kg. Value-added products, such as caviar, fetch premium prices (in excess of $80/kg). The majority of fish is sold as chilled whole, gilled and gutted, but other products include cutlets, fillets, smoked slices, smoked sides, paté, gravlax, and sashimi. There is a significant local market in Australia of several thousand tonnes of fresh and smoked products every year.

Industry Organisations: Marine Farmers Association of Tasmania, PO Box 83, Triabunna, TAS 7190. Tel/Fax: (03) 6257 7466.

Tasmanian Aquaculture Council, PO Box 878, Sandy Bay, TAS 7006. Tel (03) 6224 2332 Fax (03) 6224 2321.

Tasmanian Salmonid Growers Association Ltd, GPO Box 1614C, Hobart, TAS 7001. Tel (03) 6224 2521 Fax (03) 6224 3006.

42 Marine and Freshwater Resources Institute, Snobs Creek 8.6 SILVER PERCH Scientific Name: Bidyanus bidyanus, Mitchell, 1838

Environment and Status: Native – freshwater. Distribution: Naturally found north of the Great Dividing Range throughout the tributaries of the Murray River and the Murray Darling Basin.

Aquaculture Status in Victoria Commercial hatcheries are established in Victoria, New South Wales, Western Australia, Queensland and South Australia. These hatcheries produce juveniles for ongrowing in both brackish and freshwater. Silver perch growout has been established for a number of years with the majority of the production in New South Wales.

Production and Value In 1998/99, silver perch production in Australia was 220 tonnes with a value of $2.15 million, including 0.5 million juveniles (O’Sullivan and Dobson, 2000). The Victorian industry is small compared with NSW and Queensland 2.5 with an estimated 2 tonnes produced annually (Figure 8.5). 2

Broodstock 1.5 Silver perch broodstock are available from 1 commercial producers in NSW and Victoria (Tonnes) and should be held in earthen ponds for at 0.5 least 7 months prior to the breeding season (Rowland, 1984). Typical broodstock holding 0 ponds are 0.1 ha. At spawning, the 1997/98 1998/99 1999/00 broodstock are moved to tanks and artificially induced. Spawning and fertilisation then occur naturally. Figure 8.5 Silver Perch Production (est) 1997-2000) Hatchery and Juvenile Production: The hatchery production of silver perch juveniles is well established. The fertilised eggs are incubated in tanks for 5-6 days, but hatching is temperature dependent and can be accelerated to 24- 30 hours at 24oC. Larval feeding begins when yolk adsorption is complete, 6 days after hatching. The larvae (5mm long) are stocked directly into fertilised earthen ponds (stocking rates of 50-100 larvae/m2.) where they feed on natural food. This stocking density aims to yield 25-40 fry/m2. After 5-8 weeks in the ponds, the silver perch are 25-30 mm in total length and ready to be transferred to growout systems.

Grow-out Systems:

Intensive. Intensive growout systems are not commonly used for silver perch culture so there is limited data available. Some farmers are currently trialing intensive recirculation tank systems but high operating costs coupled with modest market prices make economic viability borderline.

Semi Intensive. The most popular method of silver perch culture is semi-intensive pond culture. Silver perch grow-out ponds should be built no larger than 0.25 ha, with aeration provided to achieve high yields. Stocking rates vary from 7,000 to 40,000 fish/ha; the optimum rate is around 20,000 fish/ha, but new entrants are recommended to start at 10,000 fish/ha. Good food conversion ratios are regularly achieved (<1.6:1) and growth rates can be as high as 2-3 g/fish/day in Northern NSW.

Marine and Freshwater Resources Institute, Snobs Creek 43 Optimal conditions can produce growth rates to marketable fish of 500g in 10 months and 600-800g in around 18 months. High survival of rates of >90% are also commonly achieved. Annual production rates of 10 tonnes/ha have been achieved in static ponds in northern NSW.

Cage culture of silver perch has been trailed at an experimental level in NSW and Victoria, but more work is required to optimise appropriate stocking densities and culture conditions.

Extensive. Silver perch can be stocked in farm dams at a rate of around 350 fish/ha (carrying capacity 200-500 kg/ha is reached in 2-3 yrs).

Culture Attributes: • High survival and growth rates. • Hatchery techniques for large-scale production of juveniles well established. • Easily weaned onto artificial diets. • Uniform growth if graded regularly. Table 8.4 Water Quality Parameters for Silver Perch Culture Parameter Lower Level Upper Level Optimal Range Water temperature (oC) 20 30 23-28 Salinity (ppt) 0 15 0-4 Dissolved oxygen (mg/l) 3.0 - >4.5 pH (scale) 2.2 10.0 6.5-9.0

Marketing Attributes Silver perch has relatively good meat recovery of around 40 % and has excellent cooking and eating qualities. The flesh is firm and white with few bones. Pond-grown silver perch readily take up off- flavours present in the ponds and this can have a detrimental effect on markets. Poor quality fish have been released to markets in Australia and Southeast Asia causing severe damage to markets. The fish must be purged (held in freshwater 20 tanks) for several days after harvest. 18 Quality controlled protocols must be 16 1999 2000 2001 observed to ensure that the fish going to 14 market are prime quality. Small silver perch farmers may find it easier to build 12 local business networks to share the 10 cost of centralised purging, processing 8 and marketing. $/kg HOGG 6 4 Economic Factors: 2 Silver perch are now recognised and 0 readily accepted in the market although 123456789101112 prices are relatively modest at $9-10/kg live to the Asian restaurant trade. At Figure 8.6 Market Prices for Silver Perch 1999- the Sydney fish market average (Figure 2001(Source: Sydney Fish Market) 8.6) prices varied between $6.66- $11.06/kg in 1999 (Head on Gilled and Gutted). Premium prices can be obtained through developing niche markets locally or product branding.

Industry Organisations: • The Murray Region Aquaculture Association. • Warmwater Aquaculture Association. • NSW Silver Perch Growers Association Inc.

44 Marine and Freshwater Resources Institute, Snobs Creek 8.7 TROUT

Scientific Names: Rainbow trout: Oncorhynchus mykiss Walbaum, 1792. Brown trout: Salmo trutta Linnaeus, 1758

Environment and Status: Exotic, benthopelagic - freshwater, brackish, marine. Distribution: Rainbow trout are native of North America from Alaska to Mexico in rivers draining into the Pacific Ocean. They were introduced to Australia from New Zealand in the 1890’s and are found from northern New South Wales to South Australia, and throughout Tasmania. They were introduced successfully into the southwest corner of Western Australia in 1942. Brown trout are native to Europe and were introduced into Australia's cooler waters in the 1860s. Their distribution is restricted mostly to the highlands from northern New South Wales to the coast of Victoria although stocks are maintained in the Adelaide region of South Australia, in southwest Western Australia and throughout Tasmania.

Aquaculture Status in Victoria Freshwater land-based aquaculture of rainbow trout Figure 8.7 Rainbow Trout Production 1997- is the second biggest finfish sector in the Australian 2000 (estimated) aquaculture industry. In Victoria, land-based rainbow 2,000 trout farming is by far the biggest, highest valued aquaculture sector. Brown trout are produced mainly 1,600 in New South Wales, Victoria, Tasmania, and Western Australia for recreational fisheries purposes. 1,200 Production value

Tonnes 800 Victorian aquaculture produced 1600 tonnes of Rainbow trout in 1999/2000 (Table 1), with a value of 400 over $10 million. This production is relatively stable; however, it does fall in years when rainfall is low. 0 1996/97 1997/98 1998/99 1999/00 Broodstock Trout will not spawn naturally in artificial culture systems and juveniles must be obtained by artificial spawning. Fortunately the reproduction of trout is well understood and the techniques are well-developed (Shepherd and Bromage, 1990; Sedgwick, 1985). A female rainbow trout can produce up to 2,000 eggs/kg body weight and similar egg production is recorded from brown trout. In the hatchery the females are stripped of their eggs in June and July and the eggs are mixed with milt from the males. For spawning and egg production brown trout need water temperatures of 6-10oC and rainbow trout need 9-14oC.

Hatchery and Juvenile Production The fertilised eggs are placed in hatching troughs where, depending on the water temperature, they hatch after 4-14 weeks. The newly-hatched trout feed on their yolk sac for the next two weeks before being weaned onto artificial diets. Four-12 weeks after hatching they are ready to be stocked into growout systems.

Grow-out Systems Require good water quality to grow fast and semi-intensive and intensive grow-out systems for trout use flow-through systems where large quantities of water is continually exchanged in the culture unit. These systems have a high demand for good quality water.

Intensive. Most intensive land-based culture in Victoria is based on flow-through “Danish” pond systems or concrete raceways. High stocking densities of around 32 kg/m³ are used in these systems

Marine and Freshwater Resources Institute, Snobs Creek 45 with water flow rates of 5-10 L/sec/ tonne of fish. 16 Regular grading and splitting of stock is required 14 to ensure fast growth. A proportion of the fish can 1999 2000 reach market size (250g) in 9 months while the 12 2001 remainder will take longer depending on 10 husbandry practices. Some fish may be held 8 back to ensure a consistent supply to market. 6 ($/kg HOGG) FCRs range from 0.9-1.3 using extruded diets and 4 1.2-1.6 with pressed pellets. Typical survival rates of 60-80% are obtained from eggs to 2 harvest. 0 123456789101112 Month Cage culture in both fresh and marine waters is a proven method of rainbow trout culture and high- Figure 8.8 Market price of Rainbow Trout stocking densities of 30-40 kg/m² can be used. (Source: MFM) Larger fish cope better with being transferred to marine cages and the growth rates are faster. Fish from sea cages are grown to 2 kg before harvest.

Semi-intensive: Semi-intensive pond production uses the same technology as intensive culture, but stocking rates are lower. Stocking densities of 10-20 kg/m³ are typical of these systems and water exchange is consequently lower. Trout also have good potential for semi-intensive pond or cage culture in inland saline waters. Research has shown that trout adapt well to culture in these systems.

Extensive: Extensive grow-out in farm dams and ponds is an option for farmers who wish to fish recreationally or have a small-scale aquaculture venture. Low stocking rates of 375 yearling fish/ha are used and low yields 100 kg/ha/yr are recorded from the dams. Survival may be less than 50% due to predation, but growth rates are generally fast.

Culture Attributes: • Culture techniques are well established. • Fry are easily weaned onto artificial diets. • High tolerance to handling. • Species specific diets readily available. Table 8.5 Water Quality Parameters for Trout Culture Parameter Lower Level Upper Level Optimal Range Water temperature (oC) 4 22 8-18 Salinity (ppt) - 35 - Dissolved oxygen (mg/l) 5 10 >7 pH (scale) 6.0 8.0 7.0-7.5

Marketing Attributes: The flesh of trout is soft and delicate, white to pink in colour with a mild flavour (the pinker the better), and has fine bones. Currently most trout are sold domestically as chilled head on gilled and gutted (50%) or frozen head on gilled and gutted (25%). Value-added products such as smoked trout (20%) and trout fillets (fresh and smoked), patés, terrines and trout caviar are sold throughout Australia, with little being exported to Asia (2-3%).

Economic Factors The market price for rainbow trout is comparatively low at the farm-gate ($5.00-$6.00/kg fresh head on gilled and gutted, Figure 8.8). Larger farms are better placed to cope with the low prices due to production economies of scale. Small farmers can obtain better prices by developing local niche markets with restaurants or supermarkets. Value adding can increase the value of the product from $5-20/kg depending on the product. Small farmers may have to co-operate with processing and transport to make trout farming a viable option.

Industry Organisations • Victorian Trout Association

46 Marine and Freshwater Resources Institute, Snobs Creek 8.8 YABBIES – FRESHWATER CRAYFISH

Scientific Name: Cherax destructor Clark, 1936

Environment and Status: Native- freshwater, Common Distribution: The most widespread species of freshwater crayfish, found in ponds, farm dams, billabongs, swamps, creeks, rivers, lakes, bore drains, irrigation channels and reservoirs throughout most of Victoria, New South Wales, South Australia, southern Queensland, and parts of the Northern Territory.

Aquaculture Status in Victoria In Victoria, there are approximately 135 commercial licence holders endorsed for yabby aquaculture. These licence holders use existing farm dams or purpose built ponds under semi-intensive or extensive farming methods. This species is also farmed in South Australia and New South Wales. The Western Australian yabby industry consists largely of the species Cherax albidus introduced from Victoria’s southwest where the species is endemic. 30 Production and Value Victorian aquaculture produced 15 tonnes 25 of yabbies in 1999/2000 (Figure 8.9), with 20 an estimated value of $173,000. Yabby 15 production decreases during drought so Tonnes was lower in recent years. Recent 10 developments in Victoria, such as the multi- 5 waters licence, should make it easier for 0 yabby producers to access yabbies on a 1996/97 1997/98 1998/99 1999/00 number of farms, which will increase Year productivity. Moves towards cooperative production, processing and marketing will also facilitate yabby development in Figure 8.9 Victorian Yabby Production Victoria. 1996-2000 (estimated) Broodstock Yabbies are prolific breeders and spawn annually during the summer months in Victoria. Longer day lengths trigger egg development in females and spawning is triggered by water temperatures. When water temperatures rise above 15oC, yabbies spawn from early spring to mid-summer and can spawn continuously if water temperatures remain between 14 and 20oC. An average yabby spawning produces 350 eggs per brood, but larger females can produce up to 1,200 young. The eggs are incubated under the tail of the female for between 19 and 40 days and the juveniles are carried until they reach an advanced stage of development. After the young leave the female she is capable of spawning again immediately.

Hatchery/Juvenile Production Given the prolific breeding characteristics of yabbies, hatcheries are not necessary to produce juveniles. Juvenile stocking in growout ponds can be achieved in a number of different ways: • Stocking the pond with a parent population and allowing natural population dynamics to occur; • Stocking the pond with broodstock at a rate of one male to three females; • Stocking the pond with berried females; • Breeding the yabbies in smaller pond or tank and re-stocking them into growout ponds.

Marine and Freshwater Resources Institute, Snobs Creek 47 Grow-out Systems:

Semi-Intensive Semi-intensive growout systems use purpose built ponds with stocking rates of 5-10 juvenile fish/m². Feeding rates are between 2% and 4% biomass/day and the yabbies are fed artificial feeds, which are supplemented by natural feeds in the ponds. Good growth rates are obtained and the yabbies generally grow to 40g in 6-12 months. Estimated annual yields of 1500-2500 kg/ha in about 12 months can be obtained from semi-intensive systems. Very efficient operators are capable of producing 3-4 tonnes/ha. Food conversion rates of 4-5:1 has been recorded (with lucerne).

Extensive In extensive grow-out in farm dams and ponds low stocking rates of less than 5 juveniles /m² are employed. The estimated annual yield of farm dam yabby culture is 400-690 kg/ha/yr.

Culture Attributes: • Prolific breeders, but this can result in overcrowding which can reduce growth rates. The density of yabbies in culture ponds must be controlled. • Farming does not require complicated hatcheries or equipment. • Industry Code of Practice for yabby farming has been developed (VAC, 2001). • Multi-waters licensing in Victoria will make it easier for yabby farmers to access more waters for culture. Table 8.6 Water Quality Parameters for Yabby Aquaculture Parameter Lower Level UpperLevel Optimal Range Water temperature (oC) 18 30 25-28 Salinity (ppt) 0 8 <6.0 Dissolved oxygen (mg/l) 0.5 >4 pH (scale) 7.0 9.0 7.0-8.5

Marketing Attributes Yabbies are popular domestically as table food and are also used as fish bait. They are sold live, cooked, or processed as paté. 14 Acceptance by European markets as a 1999 2000 2001 replacement for their diminishing freshwater 12 crayfish is the key to future export markets. 10 However, product quality assurance and a 8 consistent supply must be maintained to develop these markets effectively. Currently, 6 the market is largely based on domestic $/kg (Live) 4 restaurants but there is great potential for 2 international market development. 0 123456789101112 One of the main advantages of yabbies is that they can be landed live, out of water, in Month major international markets maintaining the freshness of the product. Figure 8.10 Market Price for Yabbies (Source: Economic Factors Sydney Fish Market) Prices in domestic markets vary from $4.26- $12.59/kg (SFM, 1999) depending on seasonal availability. Best prices are obtained for good quality (60g) graded product direct to restaurants ($12-$20/kg). For the more successful yabby producers, viability will be enhanced where other business income streams such as tourism and value adding are adopted.

Industry Organisations: Australian Freshwater Crayfish Growers Association of Victoria Inc. (AFCGAV), Gippsland Yabby Growers Association,

48 Marine and Freshwater Resources Institute, Snobs Creek 9 CONTACT DETAILS FOR IAAS

Department of Natural Resources and Australian Freshwater Crayfish Growers Environment Association C/- Mr Greg Williams IAAS Reseach Program RSD 1920 C/- Ms Fiona Gavine Northern Highway Aquaculture Program Heathcote 3523 Marine and Freshwater Resources Institute Tel: 03 5433 2332 Private Bag 20 Alexandra Gippsland Aquaculture Industry Network Victoria 3714 C/- Mr Tony Mc Lennan Tel: 03 5774 2208 PO Box 370 [email protected] Sale 3850 Tel: 03 5143 2322 Aquaculture Licensing Aquaculture Licensing Officer Murray Regional Aquaculture Association Fisheries Victoria C/- Mr Paul Trevathan Department of Natural Resources and PO Box 273 Environment Deniliquin PO Box 500 NSW 2710 East Melbourne 3002 Tel: 03 5884 6649 Tel: 03 9412 5715 Victorian Ornamental Fish Growers Aquaculture Extension C/- Mr Ernie Hicks Inland Extension Officer Station Road Private Bag 20 Westburn 3799 Alexandra Tel: 03 5967 1693 Victoria 3714 Tel: 03 5774 2208 Victorian Eel Fishermans Association Department of State and Regional Development C/- Mr Bill Allen PO Box 18 Small business advice Skipton 3361 Tel: 03 5598 5364 C/- Mr Bruce Greene Level 11 Victorian Eel Growers Association (VEGA) 55 Collins Street Melbourne 3000 C/- Mr John Ranicar Tel: 03 9651 9294 PO Box 18 [email protected] Skipton 3361 Industry Peak Bodies Tel: 03 5340 2005

Victorian Aquaculture Council (VAC) Victorian Trout Farmers Association C/- Mr Louis Vorstermans C/- Mr Edward Meggitt 8 Fink Street PO Box 258 Kensington 3031 Alexandra Tel: 03 9372 5666 Vic 3714 Tel: 03 5773 2483 Seafood Industry Victoria Warmwater Aquaculture Association C/- Mr Ross Hodge Level 2/177 Toorak Road C/- Mr Phil McNeil South Yarra Victoria 3141 PO Box 231 Phone: 03 9824 0744 Tatura 3616 Aquaculture Organisations Tel: 03 5857 2529

Marine and Freshwater Resources Institute, Snobs Creek 49