The Australian Ornamental Fish Industry in 2006/07 Project No

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The Australian Ornamental Fish Industry in 2006/07

By David O’Sullivan, Elizabeth Clark and Julian Morison

Dosaqua Pty Ltd PO Box 647, Henley Beach SA 5022 08 8355-0277 [email protected] Contact: Dos O’Sullivan

EconSearch Pty Ltd 214 Kensington Road Marryatville SA 5068 Tel: 08 8431 5533 Fax: 08 8431 7710

Project No. 2007/238

Page 1 of 216

The Australian Ornamental Fish Industry in 2006/07

By David O’Sullivan*1, Elizabeth Clark2 and Julian Morison2 (* Principal Investigator, 1 = Dosaqua, 2 = Econsearch)

February, 2008

Dosaqua Pty Ltd PO Box 647, Henley Beach SA 5022 08 8355-0277 [email protected] Contact: Dos O’Sullivan

EconSearch Pty Ltd 214 Kensington Road Marryatville SA 5068 Tel: 08 8431 5533 Fax: 08 8431 7710

This work is copyright. Except as permitted under the Copyright Act 1968 (Commonwealth), no part of this publication may be reproduced by any process, electronic or otherwise, without the specific written permission of the copyright owners. Neither may information be stored electronically in any form whatsoever without such permission.

The Fisheries Research and Development Corporation plans, invests in and manages fisheries research and development throughout Australia. It is a statutory authority within the portfolio of the federal Minister for Agriculture, Fisheries and Forestry, jointly funded by the Australian Government and the fishing industry.

Disclaimer: This report was prepared using the best information available to Dosaqua Pty Ltd and EconSearch Pty Ltd at the time of preparation and any economic or financials figures or estimates are, at best, compilations of production levels, costs or revenue from a variety of businesses and operations.

The budgets, assumptions and predictions in this report are provided on the clear understanding that any commercial action taken in reliance of the accuracy of the estimates is a decision of the user of the information and is taken on an own risk basis. Dosaqua Pty Ltd, EconSearch Pty Ltd and staff disclaim any liability for losses incurred as a result of reliance of any information contained in this report.

ISBN: 978-0-646-48438-9

Page 2 of 216 The Australian Ornamental Fish Industry in 2006/07

Contents Tables...... 6 Figures...... 9 Acknowledgments...... 10 Abbreviations...... 11 1. Non Technical Summary ...... 12 2. Introduction – Background and Need ...... 18 2.1 Justification for the Project...... 18 2.2 Objectives of the Project...... 18 2.3 Steering Committee ...... 19 2.4 Project Team...... 20 3. Method of Analysis and Definition of Terms ...... 21 3.1 Survey of Ornamental Fish Industry Stakeholders ...... 21 3.2 Other Sources of Information...... 23 3.3 Method of Estimating the Industy Structure, Size and Value...... 23 3.3.1 Business/sector overview...... 23 3.3.2 Purchases ...... 24 3.3.3 Sales and product destination...... 24 3.3.4 Employment ...... 24 3.3.5 Investment in the industry ...... 24 3.3.6 Operating expenditure...... 24 3.3.7 Sector summary ...... 25 3.4 Definition of Terms...... 25 4. Introduction to the Ornamental Fish Trade ...... 27 4.1 Ornamental Fish Taxonomic Groups...... 27 4.2 International Marketing Channels ...... 28 4.3 International Markets ...... 30 4.3.1 Major Exporting Countries...... 31 4.3.2 Major Importing Countries...... 31 4.3.3 Aquaculture Versus Wild Caught ...... 32 4.3.4 Relative Value of Ornamental versus Food Fish...... 32 4.3.5 Marine Fish Expansion...... 33 4.3.6 Live Corals ...... 34 4.3.7 Live Rock ...... 34 4.3.8 Marine Invertebrates ...... 35 4.4 Background on the Ornamental Fish Industry in Australia...... 35 4.5 Remainder of the Report...... 36 5. Breeders and Collectors ...... 37 5.1 Business/Sector Overview...... 38

5.2 Purchases...... 41 5.3 Sales and Product Destination ...... 42 5.4 Employment...... 46 5.5 Investment in the Industry...... 47 5.6 Operating Expenditure...... 49 5.7 Sector Summary ...... 51 6. Wholesale and Import Sector ...... 54 6.1 Business/Sector Overview...... 55 6.2 Purchases...... 57 6.3 Sales and Product Destination ...... 60 6.4 Employment...... 63 6.5 Investment in the Industry...... 64 6.6 Operating Expenditure...... 64 6.7 Wholesale Sector Summary ...... 65 7. Retail Sector ...... 67 7.1 Business/Sector Overview...... 68 7.2 Purchases...... 70 7.3 Sales and Product Destination ...... 75 7.4 Employment...... 79 7.5 Investment in the Industry...... 80 7.6 Operating Expenditure...... 80 7.7 Retail Sector Summary...... 81 8. Hobbyists and Hobby Organisations ...... 83 8.1 Overview...... 83 8.2 Purchases and Product Sources ...... 84 8.3 Hobbyist Types ...... 86 9. Unregulated Trade...... 91 9.1 Overview...... 92 9.2 Purchases from Unregulated Sources...... 92 9.3 Sources of Trade ...... 92 9.4 Species Involved...... 93 9.5 Value of Unregulated Trade...... 94 9.6 Issues Associated with Unregulated Trade ...... 95 10. Illegal Trade...... 96 10.1 Overview...... 96 10.2 Sources of Trade ...... 97 10.3 Species Involved...... 98

11. Ornamental Fish Imports ...... 100 11.1 Live Ornamental Fish Imports...... 100 11.2 Coral and Other Invertebrate Imports ...... 104 12. Ornamental Fish Exports ...... 108 12.1 Live Syngnathids...... 109 12.2 Exports of Native Species...... 112 12.3 Exports of Non-Native Species...... 115 12.4 Exports of Coral ...... 118 13. Commercially Important Species Traded...... 119 14. Australian Ornamental Fish Industry GVP, 2006/07...... 124 15. Method for Annual Estimation for GVP...... 126 16. Potential Areas for Industry Growth...... 128 17. Potential Impediments for Industry Growth...... 131 18. Summary of Survey Results and Findings...... 135 19. Intellectual Property, Benefits and Adoption of This Report ...... 139 19.1 Intellectual Property ...... 139 19.2 Benefits of the Project...... 139 19.3 Adoption of the Project ...... 140 20. Outcomes, Deficiencies, Recommendations and Conclusions ...... 141 20.1 Planned Outcomes ...... 141 20.2 Deficiencies and Constraints ...... 141 20.3 Recommendations...... 142 20.4 Conclusions ...... 143 References ...... 144 Appendix 1 Management of Ornamental Fish in Australia ...... 147 Appendix 2 Survey Questionnaires ...... 149 Appendix 3 Ornamental Fish Grey List...... 167 Appendix 4 Background on the Structure, Size and Value of the Australian Ornamental Fish Industry...... 169 Appendix 5 Ornamental Fish Industry Imports ...... 189 Appendix 6 Ornamental Fish Industry Exports ...... 195 Appendix 7 Marine Species Collected in Australia ...... 204

Tables

Table 1.1 Summary of selected characteristics for the Australian ornamental fish industry ...... 14 Table 2.1 Project steering committee membership ...... 19 Table 3.1 Estimated number of businesses and survey targets by industry sector...... 21 Table 3.2 Survey responses and response rate by industry sector...... 22 Table 5.1 Survey responses from breeders by state/territory...... 38 Table 5.2 Survey responses from collectors by state/territory...... 39 Table 5.3 Business ownership/operation for breeders a ...... 39 Table 5.4 Length of business ownership/operation for breeders...... 40 Table 5.5 Business ownership/operation for collectors a ...... 40 Table 5.6 Length of business ownership/operation for collectors...... 41 Table 5.7 Purchases of ornamental fish by breeders, product source, 2006/07 a ...... 41 Table 5.8 Sales of ornamental fish by breeders, state/territory, 2006/07 a...... 42 Table 5.9 Sales of freshwater species by breeders, species group, 2006/07 ...... 43 Table 5.10 Sales of ornamental fish by breeders, product destination, 2006/07 a ...... 43 Table 5.11 Sales of aquatic plants by breeders/suppliers, product destination, 2006/07 a ...... 44 Table 5.12 Sales of ornamental fish sales by collectors, state/territory, 2006/07...... 44 Table 5.13 Sales of ornamental fish by collectors, destination, 2006/07...... 45 Table 5.14 Employment in the ornamental fish industry by breeders, 2006/07...... 46 Table 5.15 Employment in the ornamental fish industry by collectors, 2006/07...... 46 Table 5.16 Investment in the ornamental fish industry by breeders, 2006/07 ...... 47 Table 5.17 Investment in the ornamental fish industry by collectors, 2006/07 ...... 48 Table 5.18 Operating expenditure by ornamental fish breeders, 2006/07 ...... 49 Table 5.19 Operating expenditure by ornamental fish collectors, 2006/07 ...... 51 Table 6.1 Survey responses from the wholesale sector by state/territory a...... 55 Table 6.2 Business ownership/operation in the wholesale sector a...... 56 Table 6.3 Length of business ownership/operation in the wholesale sector ...... 56 Table 6.4 Purchases of freshwater species by the wholesale sector, product source, 2006/07...... 57 Table 6.5 Purchases of freshwater species by the wholesale sector, species group, 2006/07 ...... 58 Table 6.6 Purchases of freshwater species by the wholesale sector, product source by species group, 2006/07...... 58

Table 6.7 Purchases of marine species by the wholesale sector, product source, 2006/07 a ...... 59 Table 6.8 Purchases of ornamental fish by the wholesale sector, product source, 2006/07 a ...... 59 Table 6.9 Purchases of ornamental fish accessories by the wholesale sector, product source, 2006/07 a ...... 60 Table 6.10 Sales of freshwater species by the wholesale sector, product destination, 2006/07 a ...... 60 Table 6.11 Sales of freshwater species by the wholesale sector, species group, 2006/07 ...... 61 Table 6.12 Sales of marine species by the wholesale sector, product destination, 2006/07 ...... 62 Table 6.13 Sales of ornamental fish by the wholesale sector, product destination, 2006/07 a ...... 62 Table 6.14 Sales of ornamental fish accessories by the wholesale sector, product destination, 2006/07 a ...... 63 Table 6.15 Employment in the ornamental fish industry, wholesale sector, 2006/07...... 63 Table 6.16 Investment in the ornamental fish industry, wholesale/import sector, 2006/07...... 64 Table 6.17 Operating expenditure relating to the ornamental fish industry, wholesale/import sector, 2006/07...... 65 Table 7.1 Survey responses from the retail sector by state/territory ...... 69 Table 7.2 Business ownership and operation in the retail sector ...... 69 Table 7.3 Length of business ownership/operation in the retail sector a ...... 70 Table 7.4 Purchases of freshwater species by the retailers, product source, 2006/07 a ...... 70 Table 7.5 Purchases of freshwater species by the retail sector by species group, 2006/07 ...... 71 Table 7.6 Purchases of freshwater species by the retailers, product source by species group, 2006/07 ...... 72 Table 7.7 Purchases of marine species by the retail sector, product source, 2006/07 a ...... 72 Table 7.8 Purchases of ornamental fish by the retail sector, product source, 2006/07 a ...... 73 Table 7.9 Purchases of coral, live rock and aquatic plants by the retail sector, product source, 2006/07...... 74 Table 7.10 Purchases of ornamental fish accessories by the retail sector, product source, 2006/07...... 74 Table 7.11 Sales of freshwater species by the retail sector, product destination, 2006/07 ...... 75 Table 7.12 Sales of freshwater species by the retail sector, species group, 2006/07...... 76

Table 7.13 Sales of freshwater species by the retail sector, product destination by species, 2006/07 ...... 76 Table 7.14 Sales of marine species by the retail sector, product destination, 2006/07...... 77 Table 7.15 Sales of ornamental fish by the retail sector, product destination, 2006/07 a ...... 77 Table 7.16 Sales of ‘other’ products by the retail sector, product destination, 2006/07 a ...... 78 Table 7.17 Sales of ornamental fish related accessories by the retail sector, product destination, 2006/07 a ...... 79 Table 7.18 Employment in the ornamental fish industry, retail sector, 2006/07 ...... 79 Table 7.19 Investment in the ornamental fish industry, retail sector, 2006/07 ...... 80 Table 7.20 Operating expenditure relating to the ornamental fish industry, retail sector, 2006/07...... 81 Table 8.1 Survey responses from hobbyists and hobby organisations by state/territory...... 84 Table 8.2 Purchases of ornamental fish by hobbyists, product source, 2006/07...... 84 Table 8.3 Purchases of other products by hobbyists, product source, 2006/07 a ...... 85 Table 8.4 Purchases of ornamental fish related accessories by hobbyists, product source, 2006/07...... 85 Table 9.1 Unregulated trade in ornamental fish by species group ...... 94 Table 10.1 Ornamental fish species traded illegally in Australia ...... 99 Table 13.1 Major species groups of ornamental fish traded in Australia, 1996/97 and 2006/07...... 119 Table 13.2 Major exotic and native freshwater finfish species traded in Australia...... 120 Table 13.3 Major exotic and native marine species traded in Australia a ...... 122 Table 13.4 Major exotic and native invertebrate species (freshwater and brackish water) traded in Australia a ...... 123 Table 14.1 Ornamental fish industry GVP, breeder sector, 2006/07 a...... 124 Table 14.2 Ornamental fish industry GVP, collector sector, 2006/07 a...... 124 Table 14.3 Ornamental fish industry GVP, wholesale sector, 2006/07 a ...... 124 Table 14.4 Ornamental fish industry GVP, retail sector, 2006/07 ...... 125 Table 14.5 Australian ornamental fish industry GVP, 2006/07 a...... 125 Table 15.1 Suggested sample for GVP update survey ...... 126 Table 18.1 A comparison of the key indicators of the Australian ornamental fish industry ...... 138 Table 20.1 Description of the project’s planned outcomes...... 141

Figures

Figure 4.1 Generalised international marketing channels for ornamental fish...... 29 Figure 5.1 Summary of value of purchases and sales by breeders, 2006/07 a ...... 52 Figure 5.2 Summary of value of sales by collector sector, 2006/07 a ...... 53 Figure 6.1 Summary of value of purchases and sales by the wholesale sector, 2006/07 a ...... 66 Figure 7.1 Summary of value of purchases and sales for the retail sector, 2006/07 a ...... 82 Figure 8.1 Freshwater species purchases by hobbyist type, 2006/07...... 87 Figure 8.2 Marine species purchases by hobbyist type, 2006/07...... 87 Figure 8.3 Ornamental fish purchases (all species) by hobbyist type, 2006/07 ..... 88 Figure 8.4 Other purchases by hobbyist type, 2006/07 a...... 89 Figure 8.5 Accessories purchases by hobbyist type, 2006/07...... 89 Figure 8.6 Total ornamental fish related purchases by hobbyist type, 2006/07 ..... 90 Figure 11.1 Average price of ornamental fish imports, 2002/03 to 2006/07 ...... 101 Figure 11.2 Quantity of ornamental fish imports by state of final destination, 2002/03 to 2006/07...... 102 Figure 11.3 Value of ornamental fish imports by state of final destination, 2002/03 to 2006/07...... 102 Figure 11.4 Quantity of ornamental fish imports by country of origin, 2002/03 to 2006/07...... 103 Figure 11.5 Value of ornamental fish imports by country of origin, 2002/03 to 2006/07...... 103 Figure 11.6 Average price of coral imports, 2002/03 to 2006/07...... 104 Figure 12.1 Quantity of live Syngnathid exports by state of origin, 2002/03 to 2006/07...... 110 Figure 12.2 Value of live Syngnathid exports by state of origin, 2002/03 to 2006/07...... 110 Figure 12.3 Quantity of live Syngnathid exports by country of final destination, 2002/03 to 2006/07...... 111 Figure 12.4 Value of live Syngnathid exports by country of final destination, 2002/03 to 2006/07...... 111 Figure 12.5 Quantity of live ornamental fish (native species) exports by state of origin, 2002/03 to 2006/07...... 113 Figure 12.6 Value of live ornamental fish (native species) exports by state of origin, 2002/03 to 2006/07...... 113 Figure 12.7 Quantity of live ornamental fish (native species) exports by country of final destination, 2002/03 to 2006/07...... 114 Figure 12.8 Value of live ornamental fish (native species) exports by country of final destination, 2002/03 to 2006/07...... 114 Figure 12.9 Quantity of live ornamental fish (non-native species) exports by state of origin, 2002/03 to 2006/07...... 116

Figure 12.10 Value of live ornamental fish (non-native species) exports by state of origin, 2002/03 to 2006/07...... 116 Figure 12.11 Quantity of live ornamental fish (non-native species) exports by country of final destination, 2002/03 to 2006/07...... 117 Figure 12.12 Value of live ornamental fish (non-native exports) exports by country of final destination, 2002/03 to 2006/07...... 117 Figure 18.1 Distribution channels for Australian ornamental fish industry: regulated trade ...... 136 Figure 18.2 Distribution channels for Australian ornamental fish industry: unregulated and illegal trade ...... 137

Acknowledgments

This report would not have been completed without the great assistance provided by all members (both industry and government) of the Project Steering Committee (PSC, Section 2.3). They assisted in ensuring that the project team stayed focussed on the objectives and their many comments and suggestions significantly improved the text of the report. In particular Colin Bransgrove (PIAA) and Shane Willis (Aquarium Industries) provided a large number of contacts and references for information.

Finally, many thanks to all of those individuals and business who agreed to assist with the study by participating in the survey process. The project team recognise that the data were often difficult to compile, however, many respondents worked hard to ensure that the data that were supplied were of the highest quality.

Abbreviations

ABS Australian Bureau of Statistics ACT Australian Capital Territory AKKII Indonesian Coral, Shell and Ornamental Fish Association (translation) AOTO Aquatic Organisms Trade Organisation AQIS Australian Quarantine and Inspection Service BRS Bureau of Rural Sciences CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora DAFF Department of Agriculture, Fisheries and Forestry DoFWA Department of Fisheries, Western Australia EU European Union FAO The Food and Agriculture Organisation (United Nations) FOB freight on board FRDC Fisheries Research and Development Corporation FTE full time equivalent GBRMPA Great Barrier Reef Marine Park Authority GMAD Global Marine Aquarium Database GVP gross value of production MAC Marine Aquarium Council NSW New South Wales NT Northern Territory OATA Ornamental Aquatic Trade Association OFI Ornamental Fish International PIAA Pet Industry Association of Australia PIJAC Pet Industry Joint Advisory Council (now known as PIAA) ppt parts per thousand PSC Project Steering Committee PTFEA Philippine Tropical Fish Exporters Association QLD Queensland SA South Australia SAFEA Singapore Aquarium Fish Exporters’ Association SARDI South Australian Research and Development Institute TAS Tasmania UNEP United Nations Environment Programme VIC Victoria WA Western Australia WCMC World Conservation Monitoring Centre

1. Non Technical Summary

2007-238 The Australian Ornamental Fish Industry in 2006-07

Principle Investigator: David (Dos) O’Sullivan Address: Dosaqua Pty Ltd PO Box 647, Henley Beach, SA 5022 Tel: 08 355-0277, fax: 08 8355-0288

Key Words: Ornamental fish, breeding, wild catch, wholesalers, importers, retailers (pet shops), invertebrates, corals, aquaculture

Objectives: 1. Determine an estimate of the overall structure, size and value of the ornamental fish industry in Australia. 2. Determine an estimate of the overall structure, size and value of ornamental fish industry activities. 3. Determine the level of recreational ornamental fish ownership and the types of owners - based upon level of seriousness (irregular, moderate and serious). 4. Compile of a list of the commercially important species traded in Australia categorized by, value, source, production method, etc. 5. Develop a method to estimate the GVP of the industry on an annual basis. 6 Identify potential areas for industry growth.

Objective Status Comments

1 Complete The ornamental fish industry in Australia involves the sale of a number of finfish, crustacean, mollusc and other invertebrate species, as well as a range of aquatic reptiles and amphibians (the first four groups are jointly termed “fish” in this report; the latter two groups are not discussed in this report.

2 Complete This report provides a comprehensive and current analysis of a series of indicators for each of the sectors.

3 Complete The survey method did not allow specific focus on this objective, The hobbyists were divided into three groups based on their annual expenditure – irregular, moderate and serious. The level of expenditure by each of these groups was calculated for various product groupings.

4 Complete Section 13 of the report provides an overview of commercially important species traded.

5 Complete Section 14 outlines the GVP method used in this project and Section 15 provides suggestions for future annual reviews.

6 Complete Section 16 details potential areas for growth and Section 17 details potential impediments to this growth based on survey responses.

The ornamental fish industry in Australia involves the sale of a number of finfish, crustacean, molluscs and other invertebrate species, as well as a range of aquatic plants, reptiles and amphibians (the first four groups are jointly termed “fish” in this report, the latter three groups are not discussed in this report).

Currently, the industry consists of the following sectors: • importers and wholesalers (fish and accessories); • commercial breeders (covered by aquaculture permits in some states); • wild catch collectors (mostly in Western Australia, Northern Territory and Queensland); • retailers (general pet stores and specialist aquarium stores); • hobbyists (individuals and clubs); and • public aquaria (not included in this study).

In addition to the sectors identified above, there is also unregulated and illegal trade within the industry. Unregulated trade includes the sale (or swapping) of fish without required licences or permits. Illegal trade includes: • importation of fish and/or accessories without specific permits or licences; and • sale of species on the noxious fish list (in some states this can include species on the grey list).

In 2006/07 total retail sales relating to the ornamental fish industry were $303.9 million. This figure includes $129.1 million in ornamental fish sales, $170.6 million in accessories sales (tanks, filters, lights, etc.) and $4.1 million in ‘other’ sales (live rock, coral and aquatic plants).

The gross value of production (GVP) of the commercial sectors of the ornamental fish industry (breeders, collectors, importers/wholesalers and retailers) was estimated to be $233.1 million in 2006/07. This figure excludes the value of unregulated and illegal trade.

Australian Ornamental Fish Industry Summary points: • More than 2,000 species of marine and freshwater finfish, crustaceans, molluscs and other animals are traded. • Survey respondents indicated that sales of marine species and related accessories was an area of growth for the industry. • The industry consists of a number of integrated sectors which can be divided into three levels - supply, sales and hobbyist use. • Imports of fish was reported to be 17.7 million fish, significantly higher than the estimated domestic production 8.3 million fish (7.7 million from aquaculture and 0.6 million from wild catch). • More than 200 licensed fish breeders, catchers and importers supply through a network of wholesalers who in turn sell to an estimated 1,200 pet shops and specialists aquarium outlets spread around the country. • There is also an active but difficult to quantify trade in fish within hobby associations and between enthusiasts. Fish are also sold or swapped (for store credits) to retailers and wholesalers.

A summary of selected characteristics for each of the industry sectors is provided in Table 1.1. The information provided in Table 1.1 reflects either survey averages or estimated totals for the whole of the industry sector.1

Table 1.1 Summary of selected characteristics for the Australian ornamental fish industry Sector Characteristics and Status for 2006/07 Breeders • Breed own fish for sale to wholesalers and retailers. Survey • Integrated - also manufacture accessories, others have own retail outlet respondents (9) • Majority family owned, long term average 25 years. make up an • Some require aquaculture permits/licences depending on individual estimated 50% of industry sector state/territory legislation. • Minimal quantities of fish purchased due to disease concerns • Supply wholesalers (49%) and retailers (48%). • Sales $5.0 million, 7.7 million specimens (majority finfish). • Majority of production (in terms of quantity and value) is based in Victoria. • Survey responses suggest 100% freshwater species (goldfish and Koi make up 91% of production and 72% of value) industry sources suggest there is some breeding of marine species and coral. • Average investment in capital equipment of $340,000 per operator, average annual operating expenses of $210,000 (almost 70 per cent wages). • Average employment in the sector estimated to be around 3 FTE employees per operator. Collectors • Collect finfish, crustaceans, molluscs and invertebrates, tropical marine Survey species. respondents (6) • Permit or licence required, numbers capped. make up an • Majority family owned, long term av.>12 years. estimated 60% of industry sector • Survey respondents collect in QLD (59%), WA (35%) and NT (6%), also some unquantified collection in VIC. • Supply exporters (17%), retailers (76%) and hobbyists (4%). • Sales $5.3 million, 0.6 million specimens (majority marine finfish). • 74 tonnes of corals and live rock, sales $1.8 million. • Average investment in capital equipment of $2.0 million per operator, average annual operating expenses of $480,000 (almost 60 per cent wages). • Average employment in the sector estimated to be around 6 FTE employees per operator. Importers / • Source fish from overseas (72%), breeders (27%) and collectors (<1%). Wholesalers • Mostly NSW, Qld, Vic, however significant growth in WA. Survey • Supply retailers (99%) and export (1%). respondents (14) • Integrated - also sell accessories, specialist retail outlets. make up an • Majority family owned, long term av.>20 years. estimated 95% of ornamental fish • Purchases $8.0 million, 19.0 million specimens (majority finfish). trade and 48 per • 15.4 million finfish imported, worth $5.8 million, $0.38 per fish. cent of • Freshwater 95% of quantity and 90% of the value (21% goldfish and Koi, accessories 20% live bearers, tetras and catfish were also significant). trade. • Majority of ornamental fish (in terms of volume and value) were imported into Victoria and Queensland. • Sales $27.0 million, 18.9 million specimens (majority finfish). • Average investment in capital equipment of $690,000 per operator, average operating expenses of $700,000 per annum (wages 80 pre cent of total).

1 Details of the survey method and method of data analysis are provided in Section 3.

Sector Characteristics and Status for 2006/07 • Average employment in the sector estimated to be 14 FTEs per operator. Retailers • Source fish from overseas (10%), local breeders (17%), local collectors Survey (4%), wholesalers (64%), hobbyists (6%). respondents (56) • Specialist aquarium outlets as well as general pet store with aquarium make up an section, integrated - also sell accessories. estimated 20% of • Supply hobbyists (99%). industry sector • Mostly NSW, Qld, Vic. • 50% family owned, medium term av.>10 years. • 43% of sales to serious hobbyists (mostly marines), 42% to moderate hobbyists (freshwater) and 14% irregulars (freshwater). • Purchases $41.5 million, 37.6 million specimens (majority finfish). • Freshwater species 95% of total quantity and 90% of total value (27% goldfish and Koi, 18% discus and cichlids, 15% live bearers and 16% tetras). • Sales $129.1 million, 33.9 million specimens (majority finfish). • Freshwater finfish species made up 95% of numbers sold and 79% of total value (29% goldfish and Koi, 19% discus and cichlids, 15% tetras and 15% live bearers). • Average investment per operator of $185,000, major capital items include aquarium equipment and sheds and buildings. • Average annual operating expenses of $200,000 (excludes stock/fish purchases), major expenses include wages, rent and electricity. • Average employment in the sector estimated to be around 4 FTE employees per operator. Hobbyists • Source fish from retailers (99%), local breeders (<1%) and local collectors (<1%). • Mostly NSW, Qld, Vic. • In terms of the number of hobbyists, it is likely the largest number would be in the irregular to moderate category. • Fish purchases $129.1 million, 33.8 million fish, excluding unregulated or illegal trade. • Purchases of freshwater species accounted for 95% of the total number and 79% of the total value of ornamental fish purchased. • Total ornamental fish related purchases by hobbyists (including accessories) were approximately $305.1m. • In terms of the total value of fish purchases by hobbyists irregular hobbyists accounted for 16% of total purchases, moderate hobbyists 37% and serious hobbyists 47%. Unregulated • Unregulated trade includes trade (sale and swap) of aquatic animals Trade without required licences or permits by breeders and hobbyists. • Up to 40% of retailers source product from this sector. • Sources of unregulated trade include: o hobby breeders and hobbyists; o organised auctions (e.g. Cichlid auctions); o online forums and trade sites; o newspaper classifieds; o swapping between hobbyists; and o swapping and store credit between retailers and hobbyists. • Hobbyists breeding certain species which are in low demand or are unsuitable for commercial production. • There are many species involved in unregulated trade, including; o catfish; o Koi; o live bearers; and o cichlids. • The value of unregulated trade is unknown; survey responses indicated it could be anywhere from 5% to 100% of regulated trade.

Sector Characteristics and Status for 2006/07 Illegal Trade • Illegal trade includes holding or sale of species on the Noxious Fish list and holding or sale of species that are not included on the allowable list for each state/territory. • Sources of illegal trade include: o wholesalers; o retailers; o online forums and classifieds; o fish dealers; and o imports. • Motivations for illegal trade include profit and cultural significance of some species. • An increase in education and the availability of information about permissible species would likely decrease the level of illegal trade. Exports • Exports include: o live syngnathids; o native species of ornamental fish; o non-native species of ornamental fish; and o corals. • Exports of syngnathids primarily originate in Victoria and are destined for Japan. • The majority of exports of native and non-native ornamental fish species originate in Queensland and are sent to many countries including the USA, Malaysia, Singapore and Japan. • 465 live syngnathids were exported (majority to Japan). The FOB value of these exports was approximately $161,000. • Exports of native species were valued at $1.1 million and comprised of almost 70,000 individuals. • Exports of non-native species were valued at $230,000 and comprised of 7,000 individuals. • Almost 900kg of coral was exported which was valued at almost $20,000. This coral was exported from Queensland and sent to Canada, Germany and the Netherlands. Potential for • Demographic changes such as increases in housing density. Fish are a Industry convenient pet for small houses and apartments. Growth • Import replacement through an increase in local production. • The popularity of marine aquariums is increasing. • Increase in the local breeding of marine species and culture of live rock and coral. • Increase in coral exports. • Greater interest in native species and planted aquariums. • Government support through R&D would support growth in local production. • Education and training programs would promote growth. Potential • Difficult to compete with imports. Impediments • Too much competition within industry. to Growth • Lack of formal education and training available. • Regulations are difficult to understand making compliance costs high. • Lack of industry advocate. • Labour shortages and high wages costs. • Water restrictions. • Economic factors (e.g. unemployment and interest rates). • Wild catch fishery has a poor image. • Losses through the supply chain are costly. • Illegal trade gives the industry a bad image. • Diseases from imported fish threaten local production.

One of the outcomes of the project is a series of recommendations that highlight opportunities for supporting the future growth of the ornamental fish industry in Australia. These recommendations are: 1. A database of industry stakeholders be developed (already complete) and maintained to ensure that the industry is easily identified. 2. A strategic development plan be coordinated for the industry specifically covering the actions required to act on the growth opportunities for the industry and to overcome the impediments to growth identified in this report. 3. Similar regulations on licensing, translocation, species usage, etc. to be implemented in all states and territories. 4. Standard licensing, codes of practice and accreditation systems (third party audits) be established for all commercial operators (e.g. breeders, collectors, importers, wholesalers, retailers). 5. Government support to encourage growth in local breeding for import replacement. Support could include: • Low lease fees for under-utilised government facilities for use by ornamental fish breeders. • Funding for research and development of breeding technologies. • Funding for study tours for best practice and industry technology transfer. 6. Specialised hatchery training backed by specific R&D into breeding strategies (infertile offspring, disease resistance or specific pathogen free stock, selective breeding for colour, etc.) to improve quality and survival of stock throughout the supply chain. 7. Implementation of R&D into population dynamics and ecology of native species (including finfish, live rock and coral) to ensure long term expansion of the wild catch sector through access to appropriate stocks and the implementation of sustainable harvest strategies. 8. Annual estimates of GVP be undertaken and a more comprehensive review (such as that completed for this project) be scheduled for every 3-5 years. 9. Further R&D needs to be undertaken on the size of the hobby sector and specifically on determining a value for the unregulated trade.

2. Introduction – Background and Need

2.1 Justification for the Project

The breeding and keeping of ornamental fish is an activity with close linkages to aquaculture. Indeed, many of the fish husbandry techniques used in intensive aquaculture are equally applicable to ornamental fish. Many believe there is excellent potential for ornamental fish industry growth in Australia. One of the keys to industry growth is investment in research and development. However, in order to identify the priority areas in which to invest in research and development, good information about the industry is required. The “A Strategic Approach to the Management of Ornamental Fish in Australia” report (DAFF 2005, 2007), like other reviews, noted that there is little current information available on the structure, size, value and activities of the ornamental fish industry in Australia. Further details of this publication are provided in Appendix 1.

To address the lack of information on the industry, the Fisheries Research and Development Corporation (FRDC) and the Australian Government Department of Agriculture, Fisheries and Forestry (DAFF) commissioned a comprehensive study of the ornamental fish industry in Australia.

2.2 Objectives of the Project

The six objectives of the study, as detailed in the Terms of Reference, are detailed below: 1. Determine an estimate of the overall structure, size and value of the ornamental fish industry in Australia. • Indicators of structure may include: o vertical integration levels; o distribution channels; o business ownership; and o specialty shops or general pet shops. • Indicators of size may include: o number of operators; and o number of employees. • Indicators of value may include: o capital investment; o turnover; and o gross value of production (GVP). 2. Determine an estimate of the overall structure, size and value (using the above indicators) of ornamental fish industry activities. The activities studied include, but are not limited to: • wholesale; • retail; • imports; • domestic production; • wild catch;

• aquaculture; and • exports. 3. Determine the level of recreational ornamental fish ownership and the types of owners - based upon level of seriousness (simple fish tank up to breeding and showing). 4. Compile a list of the commercially important species traded in Australia categorized by value, source, production method, etc. 5. Develop a method to estimate the GVP of the industry on an annual basis. 6. Identify potential areas for industry growth (subject to funding availability).

2.3 Steering Committee

The FRDC and DAFF formed a steering group consisting of individuals with knowledge of the ornamental fish industry to oversee the project. The role of the steering committee was to provide information and guidance to the Principal Investigator to ensure the project met the objectives. This also included further development of the study plan submitted by the consultant.

The membership of the project steering committee (PSC) is detailed in Table 2.1.

Table 2.1 Project steering committee membership

Name Company Comments

Jared Patrick Bay Fish Major wholesaler and importer PIAA President 2007 Shane Willis Aquarium Industries Major wholesaler and importer PIAA member Steve Wood Pine Creek Hatchery Breeder of freshwater fish, family business, former PIAA member Colin Bransgrove Pet Industry Association PIAA CEO of Australia (PIAA) Will Zacharin Primary Industries and Chair - Ornamental Fish Management Resources South Implementation Group Australia (PIRSA) Alex McNee Bureau of Rural Ornamental Fish Management Sciences (BRS) Implementation Group Justin Fromm FRDC Observer Project Manager - Research

Caryn Scott Australian Quarantine Live Animal Imports section and Inspection Service (AQIS) Observer Clayton Harrington DAFF Observer Policy Officer - Aquaculture

The Australian Ornamental Fish Industry in 2006/07

2.4 Project Team

Dosaqua Pty Ltd

In 1986 Dosaqua Pty Ltd was established specifically to provide a wide range of services to the aquaculture, fisheries and the processing sectors of the seafood industry and since 1999 has also been working in the aquatic ornamental animal industry. Services include professional development and training integrated into the workplace, technical information dissemination, facility expansion, systems development, risk management and environmental impact mitigation. Dosaqua worked with the Pet Industry Joint Advisory Council (forerunner of PIAA) and the Australian Quarantine Inspection Service in 1999 on a review of the ornamental fish industry and has trained candidates in the wholesale, pet shop and farm/breeding sectors.

EconSearch Pty Ltd

EconSearch was established in 1995 to provide economic research in primary industries, natural resources and regions throughout Australia. The firm provides independent economic analysis and policy advice to firms, industry associations, research and development corporations, regional development organisations and government agencies. EconSearch has conducted assignments throughout Australia and works in collaboration with a range of other consulting companies and research institutions (engineering, horticultural, accounting, farm management, etc.) and is well placed to contribute to multi-consultant and multi-disciplinary studies. In South Australia EconSearch has prepared detailed economic indicator reports for each of the state’s ten commercial fisheries over the past ten years. EconSearch also produces an annual economic impact report on South Australia’s aquaculture industries.

The Australian Ornamental Fish Industry in 2006/07

3. Method of Analysis and Definition of Terms

3.1 Survey of Ornamental Fish Industry Stakeholders

The study consisted of approximately 100 face-to-face interviews conducted across Australia with a random selection of businesses and individuals involved in the ornamental fish industry. Two questionnaires were developed, in consultation with the project steering committee, to be used as an instrument for collecting the information required – one for commercial operations and one for hobbyists. A copy of each questionnaire is included in Appendix 2 of this report.

To ensure the confidentiality of information provided by survey participants, results are only presented on a whole of industry or sector level. Some survey participants were concerned about the confidentiality of information gathered in the survey process. A signed confidentiality agreement was available to all survey participants to guarantee the privacy of information provided (a copy of this agreement is provided in Appendix 2).

The support of businesses, individuals and organisations involved in the industry, particularly the Pet Industry Association of Australia (PIAA) was critical to the study’s success.

In conducting any survey, and in choosing an appropriate sample size in particular, there is inevitably a need to balance accuracy and reliability against the constraints of budget and time. Given some information about the population to be sampled (the standard deviation of the parameter to be estimated), the required sample size can be determined for a given level of confidence and an acceptable sampling error.

For the ornamental fish industry, however, there were insufficient data available to statistically determine an appropriate sample size for any of the sectors. Instead, the choice of sample size was guided by the consultants’ and the PSC’s knowledge of the industry. The estimated size of the population and target number of responses by industry sector is provided in Table 3.1.

Table 3.1 Estimated number of businesses and survey targets by industry sector

Estimated total number Proportion of total Sector Target of businesses industry sector Suppliers, Breeders & Collectors 200 - 400 10 2.5 - 5 per cent Wholesalers & Importers 20 10 50 per cent Retailers (Specialists) More than 800 40 5 per cent Retailers (General) 1,200 - 1,300 25 2 per cent Hobbyists and Other 2,000 - 4,000 11 Less than 1 per cent

Total 4,300 - 6,600 96 1 - 2 per cent

Almost 300 business and individuals were selected to be involved in the study and were sent an introductory letter from the FRDC and EconSearch Pty Ltd outlining the project and seeking their support. There was also significant media communication about the study through various online and printed media, including:

The Australian Ornamental Fish Industry in 2006/07

• Australian Aquarium Magazine, Issue 2, 2007, page 12 • Austasia Aquaculture Magazine, Vol 21.3, September 2007, page 50 • The Pet Directory (www.petdirectory.com.au).

A summary of the number of businesses contacted and completed surveys is detailed in Table 3.2.

Table 3.2 Survey responses and response rate by industry sector

Number of businesses Number of survey Response Sector contacted responses rate Suppliers, Breeders & Collectors 48 15 31% Wholesalers & Importers 49 16 33% Retailers (Specialists) 119 48 40% Retailers (General) 32 9 28% Hobbyists and Other 37 9 24%

Total 285 97 34%

A survey, by definition, aims to make inferences about a population based on information provided by a sample of the total population. Accordingly, not all businesses and individuals involved in the Australian ornamental fish industry were contacted. Rather a specified number of businesses and individuals were contacted based on the anticipated response rate (approximately 30 per cent) and the target number of responses (96).

In addition to the 285 businesses that were sent a letter from FRDC and EconSearch Pty Ltd, information about the study and a copy of the questionnaire was distributed to commercial breeders via fisheries departments in Victoria and New South Wales but yielded no responses.

A total of 97 businesses and individuals provided a response to the survey, the remainder did not participate for the following reasons: • not interested in participating (10%); • too busy or not available (24%); • could not contact (46%); and • no longer in business (4%).

Thirty letters were returned indicating that a large number of businesses in the industry had closed down in recent times. This was reinforced by survey participants, many describing the industry as a “come and go” industry.

The Australian Ornamental Fish Industry in 2006/07

3.2 Other Sources of Information

A literature review (including web sites) was undertaken, which was greatly assisted by a series of previous reports and surveys (particularly Willis 1995, AQIS 1999, PSM 1999, 2000 and Whittington and Chong 2007).

Information was also collated from databases operated by Australian Bureau of Statistic (ABS), Australian Quarantine Inspection Service (AQIS), Bureau of Rural Sciences (BRS) and Department of Agriculture, Forestry and Fisheries (DAFF).

Several government fisheries or aquaculture departments provided information on production and value of ornamental fish and a range of hobby organisations assisted in identifying key players in the industry.

3.3 Method of Estimating the Industy Structure, Size and Value

Estimates of the overall structure, size and value of ornamental fish industry activities were based on the survey responses from industry stakeholders and other sources including published and unpublished data (detailed above).

For each commercial sector of the industry (breeders, collectors, wholesalers/importers and retailers) estimates of the total volume and value of purchases and sales are presented. All estimates presented represent either a survey average or an estimated total for the whole sector. Estimates do not represent a sum of survey responses as this would breach the confidentiality of some respondents.

For each sector the following indicators are presented: • business/sector overview; • purchases; • sales and product destination; • employment; • investment in the industry; • annual expenditure; and • sector summary.

Each of these indicators, what they represent and how they were calculated are discussed in the following sections.

3.3.1 Business/sector overview

A series of broad indicators describing the sector, based on the responses to the stakeholder survey. These indicators include: • geographic distribution by state/territory; • business type; • ownership/operation type (e.g. sole trader, franchise etc.); • length of business ownership/operation; and • any other information relating to the industry sector (e.g licensing arrangements).

The Australian Ornamental Fish Industry in 2006/07

3.3.2 Purchases

An estimate of the total quantity, value and source of purchases made by the industry sector based on survey responses from industry stakeholders and other sources of information (described in Section 3.2). It should be noted that the quantity and value of purchases represents the estimated total for the sector and not the sum of survey responses.

3.3.3 Sales and product destination

An estimate of the total quantiy, value and destination of product sold by the industry sector based on survey responses from industry stakeholders and other sources of information (described in Section 3.2). It should be noted that the quantity and value of sales represents the estimated total for the sector and not the sum of survey responses.

3.3.4 Employment

The average number of employees per business for each industry sector, including paid employees and owner/operator labour. The average per business employment figures represent an average of the industry stakeholder survey responses. Where possible, the range in number of employees is given to provide an indication of the variation in the size of businesses in the industry.

Where deemed to be statistically reliable, an estimate of the total sector employment is provided. These estimates were based on the total employment by survey respondents (not reported) and the total value of sales by survey respondents (not reported). The employment by survey respondents was scaled up to an industry sector level based on the difference between the total sum of sales by survey respondents and the estimated value of sales by the whole sector (Australia wide).

3.3.5 Investment in the industry

Average investment in capital items per business for each industry sector is based on the responses provided in the survey of industry stakeholders. Average capital investment provides an indication of the major capital items purchased by businesses in each sector. A range in total capital investment is provided, where possible, to highlight the variability in the level of investment between businesses.

Where deemed to be statistically reliable, an estimate of the total capital investment by all businesses in the sector is provided. These estimates were based on the total value of investment by survey respondents (not reported), scaled up by the magnitude of difference between sales by survey respondents (not reported) and estimated total sector sales.

3.3.6 Operating expenditure

Average annual operating expenditure, per business, for each industry sector is based on responses provided in the survey of industry stakeholders. The range in total annual operating expenditure is given to provide an indication of the variation in the size of the businesses in the industry.

The Australian Ornamental Fish Industry in 2006/07

3.3.7 Sector summary

A sector summary is provided for each industry sector to highlight the flow of ornamental fish related purchases and sale between sectors. The summaries are based on the estimated total value of purchases and sales for each industry sector.

3.4 Definition of Terms

The ornamental fish industry in Australia includes commercial fish breeding facilities and collectors, wholesale traders, retail outlets and the hobby sector. It includes a range of aquatic finfish, mollusc, crustacean and other invertebrate species as well as plants used in homes, offices and other commercial premises. For the purposes of the project it was decided that the industry would not include the public or giant aquariums2 nor involve aquatic amphibians, reptiles or aquatic organisms provided as live feeds for other animals.

Accessories - Includes water treatment chemicals, ornaments, lights, etc. Accessories are sold by Distributors and Retailers.

Brackish water fish – Fish found in water with a salinity more than 4 parts per thousand (ppt) but less than 10 ppt.

Family owned – Business is owned by several members/generations of one family.

Fish – in this report this generic term is used to describe a wide range of aquatic finfish, mollusc, crustacean and other invertebrate species – it does NOT include aquatic amphibians, reptiles or aquatic organisms provided as live feeds for other animals.

Finfish – Teleosts and elasmobranches, including freshwater, brackish and marine species, tropical and temperate species, eggs, larvae, juveniles and adult forms.

Freshwater fish – Fish and other species originating in freshwater streams or lake environments, and held in freshwater tanks/aquaria.

Hobbyist includes three subcategories: • Serious: Person who spends significant time and expenditure (>$1,000/yr) on aquatic animals. Likely to be involved in hobby organisations and regularly show their animals. They may be involved in the selling/swapping/exchange of aquatic animals for accessories, feeds or other animals without a profit focus. • Moderate: A moderate level of annual investment (<$1,000) in animals, however no sales made of aquatic animals or accessories. These can include businesses which display aquatic animals for their customer or staff enjoyment, or individuals involved for own or family enjoyment. • Irregular: Occasional purchases of fish, total expenditure on fish of less than $100/year.

Marine fish – Fish and other species originating in marine or estuarine waters, and held in salt water tanks/aquaria.

2 See Section 3.4

The Australian Ornamental Fish Industry in 2006/07

Ornamentals – Indicates fish and other species not typically used as food for humans or other animals – usually such fish are displayed or kept as pets.

Partnership – Two or more individuals own business as a partnership (can be family e.g. husband and wife).

Public Aquaria – Facilities open to the general public where the fish are generally for display only.

Unregulated trade includes: • importations without specific permits or licenses (both into the country and within and between jurisdictions).

Illegal trade includes: • the holding/sale of species on the Noxious Fish list (in some states this can include species on the Grey List3); and • sale/swap of aquatic animals without required licences or permits by collectors, breeders or hobbyists.

Sole Trader – Individual owns business.

Supplier includes licensed collectors and breeders.

Collector (licensed) is a person/business with the appropriate specific permits or licences who collects (wild catch) aquatic animals for profit. Usually involved with marine species, live rock and corals. Sometimes collectors are referred to as “divers”.

Breeder (commercial) is a person/business with the appropriate permits or licenses who breeds and sells aquatic animals for profit.

3 See DAFF (2007) and Appendix 3.

The Australian Ornamental Fish Industry in 2006/07

4. Introduction to the Ornamental Fish Trade

KEY FACTS: The Worldwide Ornamental Fish Industry

• Over 100 countries are involved in the ornamental fish industry at some level. • It is estimated that there are approximately 100 million hobbyists involved. • Approximately 1.5 billion ornamental fish are traded annually world wide. • The retail value of fish and other species is estimated to be worth between $3 billion and $4.5 billion. • Taxonomic groupings include coldwater freshwater species, tropical freshwater species, coldwater marine and brackish species and tropical marine and brackish species. • Trade in ornamental fish is dominated by tropical and coldwater freshwater species. • Ornamental fish species include over 2,000 freshwater finfish species, almost 1,500 marine finfish species and up to 1,000 invertebrate species. • Freshwater species of ornamental fish are predominantly bred in aquaculture facilities whilst marine species are caught in the wild. • International marketing channels extend from breeders/collectors to importers/wholesalers to retailers to hobbyists. • Producers (breeders and collectors) need to provide stock year round as retail sales are relatively constant (not seasonal). • Worldwide retail trade (including accessories and wages) is estimated to be worth more than $20 billion. • Asia contributes approximately 70% of total exports in ornamental fish. • Major import markets are the USA, Japan, Germany, United Kingdom and France. • Sales of marine species (usually higher unit value than freshwater species) are increasing. • In Australia the trade between sectors involves purchases and sales of freshwater and marine species of ornamental fish, coral and live rock, aquatic plants and accessories (including but not limited to tanks, electronic equipment, chemicals and fish food).

Source: Sections 4.1 to 4.4.

4.1 Ornamental Fish Taxonomic Groups

Over 2,000 freshwater fish species have been kept in aquaria, with several hundred species being most popular (Sales 2003). More than 1,450 species of marine fish are traded globally with Indonesia and the Philippines being the main suppliers (Wood 2001). Almost all of the freshwater species are cultured, while marine species are predominantly wild-caught.

The Australian Ornamental Fish Industry in 2006/07

Taxonomic groupings are widely used in the industry (Bassleer 1994), with broad groupings being: • coldwater freshwater species; • tropical freshwater species; • coldwater marine and brackish species; and • tropical marine and brackish species.

Worldwide the largest market is for the tropical freshwater species, accounting for around 90 per cent (Bassleer 1994) of the worldwide ornamental fish market. Livengood and Chapman (2007) also reported that between 90 and 96 per cent of all ornamental fish traded globally are freshwater in origin.

Chapman et al. (1997) reported that 32 species account for 58 per cent of imports into the USA, and that two species, namely guppies (Poecilia reticulata) and neon tetras (Paracheirodon innesi), accounted for 37 per cent of US imports in 1992.

Important species and taxonomic groups of fish noted by Bassleer (1994) include: • Characidae (tetras); • Cyprininae (barbs and goldfish); • Callichthyidae (mostly Corydoras species); • Loricaridae (Plecostomus and Ancistrus); • Poeciliidae (livebearers, i.e. guppies, swordtails, platys, mollies); • Cichlidae (cichlids, mouth-brooders and egg-layers); and • Anabantidae (labyrinthfish such as bettas and gouramis).

Historically, these species groups have been an important part of the Australian ornamental fish industry (PSM 2000), either being imported or cultured locally. Of the estimated 1,500 or more species traded in the Australian industry in the late 1990s, around 30 species dominated sales (PIJAC 2000, PSM 2000). The number of species traded in Australia has increased rapidly over the past 20 to 30 years and continues to increase due to improvements in breeding, transport and aquarium technology (Willis 1995).

4.2 International Marketing Channels

The relatively higher values of ornamental fish compared to fish for consumption also reflect the composition of the market and the marketing channels utilised for ornamental fish.

As the generalised marketing channel for ornamental fish shown in Figure 4.1 depicts, there are several steps within the chain. In general there is a significant mark-up at each step of the chain, generally in the order of 100% (Willis 1995). Therefore, prices of fish at the retail level may be several times higher than at the farm gate.

The Australian Ornamental Fish Industry in 2006/07

Figure 4.1 Generalised international marketing channels for ornamental fish

Fisher / Breeder

Exporter

Importer / Wholesaler

Retail Pet Shop

Consumer

Source: Bassleer (1994).

This marketing schematic may be further extended through addition of country or city buyers (agents) who aggregate supplies of fish from breeders and collectors and then sell them to exporters (Fernando and Phang 1994). Again, this will add to the end cost of the fish.

Livengood and Chapman (2007) suggest that for marine fish the marketing channels (as provided in Figure 4.1) may be further extended by additional middlemen on both the export and import sides.

Wholesalers play a major role in the marketing chain as they operate as a link between supplies (from imports and domestic producers) to the retailer and hobbyists (Bassleer 1994). Wholesalers serve as aggregators that are able to source and maintain relatively large numbers of a variety of fish available for retailers (Willis 1995). Wholesalers generally have a large customer base and distribution network that enables them to efficiently dispense large volumes of fish. It is often difficult for producers to bypass wholesalers in the chain due to their greater product range and established, efficient distribution networks (Willis 1995).

The Australian Ornamental Fish Industry in 2006/07

Since the most effective sales channel for producers is normally via wholesalers, the majority of ornamental fish producers operate in the business or industry market. It appears that in the ornamental fish market there is little fluctuation in demand throughout the year (Willis 1995), with minor seasonal fluctuations in demand (Chapman et al. 1997). Producers of ornamental fish must therefore gear production towards satisfying demand by producing fish all year round.

4.3 International Markets

Worldwide, the keeping of ornamental fish in aquaria is a popular hobby; aquaria are a regular sight in many homes, in workplaces and public spaces. The international market for ornamental fish involves more than 100 countries (Livengood and Chapman 2007), indicating that it is well established throughout the western world. In the United Kingdom, for example, the population of pet fish is estimated to be 140 million, about two and a half times the human population (DAFF 2007).

Estimates indicate that in the late 1980s and 1990s there were more than 100 million hobbyists throughout the world (Winfree 1989, Bassleer 1994, Willis 1995). While no more recent data are available on hobbyist numbers, industry sources suggest that the popularity of the hobby is still high and has not decreased to any significant extent (Jared Patrick, Bay Tropical Fish Farm, pers. comm. 2007).

The European Union is the largest market for ornamental fish; however, the United States (US) is the single largest importer of ornamental fish in the world (Chapman 2000, FAO 1996-2005).

The global retail value of live ornamental fish in 2000 was estimated by the Food and Agriculture Organisation of the United Nations (FAO) to be over US$3,000 million (Whittington and Chong 2007). The World Trade Organisation (WTO) estimated this trade is worth more than US$4,500 million with an annual growth rate of 8%; of this, Asian countries account for a significant 68% share (SAFEA 2007).

Bartley (2000) reported that the entire industry worldwide, inclusive of retail sales, associated accessories or materials, wages and non-exported product, was worth approximately US$15,000 million in 1999, a major increase on the US$900 million reported for the early 1990s (Bassleer 1994).

For every dollar spent on fish, the Singaporean Aquarium Fish Exporters Association (SAFEA) estimated that $5-$10 is spent on various accessories (SAFEA 2007).

A FAO report (FAO 1999) suggested that the international trade in ornamental fish had expanded in the 1990s at an average rate of 14% per annum since 1985. While there are no data to support this, Australian industry sources have suggested that international growth has since slowed to some extent due to competing leisure activities such as internet and video games (Shane Willis, pers comm. 2007).

The Australian Ornamental Fish Industry in 2006/07

4.3.1 Major Exporting Countries

Market shares for the export of ornamental fish for different regions are summarised in Figure 4..

Figure 4.2 Market shares for exports of ornamental fish, 2002

Total Exports = US$250 million

Oceania North America 1% South America Africa 3% 5% 4% Middle East 5%

Europe 25% Asia 55% Central America 1% Australia 1%

Source: Ploeg (2007)

The total value of exports worldwide was estimated to be US$250 million in 2004. The most significant export region was Asia which accounted for over half of total exports in 2004. The second largest area is Europe which accounted for one quarter of total exports (Ploeg 2007).

A summary of ornamental fish industry export data for Australia are detailed in Section 12 of this report.

4.3.2 Major Importing Countries

The major markets for ornamental fish are the industrialised western economies, which are characterised by high population densities and cool climates (Bassleer 1994).

The hobby of keeping ornamental fish enjoys a similar popularity throughout these markets, with studies suggesting that in the late 1980s and through the 1990s it was the second most popular hobby after photography in the USA (Winfree 1989 and Chapman et al. 1997).

The Australian Ornamental Fish Industry in 2006/07

Ploeg (2006) reported that the peak in imports was in 1994 with a value of US$337 million, the value of imports declined steadily since then to US$234 million in 2002. The discrepancies between Ploeg’s estimates of the value of exports (previous section) and imports are thought to be due to variations in the quality of the import versus export data collection by various countries.

Ploeg (2006) reported that the five largest importing countries of ornamental fish in 2002 were: • USA (US$40 million) with sharp drops in imports since the September 2001 New York Twin Towers attack; • Japan (US$25.6 million) with significant decreases in imports since the Asian Economic Crisis in 1997; • Germany (US$24.3 million); • United Kingdom (US$23.6 million); and • France (US$21 million).

With most countries showing decreases in demand for imported fish, Ploeg (2006) suggested that production may have reached saturation point, which could lead to a decrease in the price of ornamental fish.

Ploeg (2005 and 2006) suggested less than 200 million fish were traded in 2002, however, other estimates suggest that up to 1 billion fish are traded per annum (Whittington and Chong 2007).

A summary of ornamental fish industry imports for Australia are detailed in Section 11 of this report.

4.3.3 Aquaculture Versus Wild Caught

The importance of wild caught fish is decreasing due to improvements in breeding and production technology, with 80 per cent of species now being produced on farms (Winfree 1989, Livengood and Chapman 2007). The main suppliers of wild caught fish are now South American countries, which have to date, failed to develop a significant aquaculture industry based on ornamental fish production (Chapman et al. 1997).

4.3.4 Relative Value of Ornamental versus Food Fish

A comparison of the relative value of ornamental fish compared to food fish is also an interesting point to note. Bassleer (1994) and Willis (1996) indicated that ornamental fish generally have a much higher value than food fish, mostly due to the fact that they are sold live and in comparatively smaller numbers than food fish. In addition, high levels of quality control in the areas of nutrition, water quality management and disease control are needed when producing ornamental fish in order to ensure the product is healthy and aesthetically pleasing when sold (Willis 1995).

On average there is a ratio of 1 to 100 between the prices of food fish and aquarium fish. For example, the average value of food fish is approximately US$3.00 per kilogram compared with the value of food fish is approximately US$300 per kilogram (Bassleer 1994). FAO (1999) also states that the exports of ornamental fish from the Maldives in 1994 were worth US$496,000 per tonne. Some highly prized fish such as Discus (Symphosodon discus) can fetch in excess of US$2,500 per kg ($2.5 million per tonne) (Willis 1996).

The Australian Ornamental Fish Industry in 2006/07

The Asian Arowana or Dragon Fish (Scleropages formosus), being a CITES protected species, can only be traded by permit. Specimens could fetch up to US$50,000 each at retail stores. Dragon Fish typically have a life span of up to 100 years (SAFEA website October 2007). At present this species can’t be imported into Australia as there are two endemic species of Scleropages here, however, this restriction is currently under review.

Although the price for some species may be very high, the quantity demanded is likely to be low. Producers placing too many fish in the marketplace may rapidly depress the price. Generally the markets for many ornamental fish are price sensitive, with sales decreasing substantially when price increases (Willis 1995) as consumers substitute with other species or with other hobby expenditure. This sensitivity is reflected in the proportional sales of different species. For example, in Australia, approximately 20 species of ornamental fish account for 80 per cent of all fish sales (Humphrey 1989, PSM 2000). These species, often referred to as the 'bread and butter' species, include the easily farmed, inexpensive species such as livebearers (guppies, mollies, platys), gouramis and neon tetras (Brown and Gratzek 1982, Willis 1995).

In addition to taxonomic groups for the classification of ornamental fish, characteristics such as size or length of fish, fin size and shape, body shape, origin of fish and colour variety may also be used to differentiate products into different segments (Brown and Gratzek 1982, Willis 1995). These characteristics can be important in determining the value of different species of fish, with rare and unusual fish generally fetching the highest prices (Willis 1996). Boldly coloured fish with large fins also typically command high prices.

4.3.5 Marine Fish Expansion

Compared to demand for traditional ornamentals (coldwater and tropical freshwater species), the keeping of marine fish continues to increase in popularity; Wabnitz et al. (2003) suggested that between 1.5 and 2.0 million people worldwide are believed to keep marine aquaria worth an estimated US$200-300 million annually. There is currently limited breeding of marine species of ornamental fish, rather fish are mostly caught in the wild.

Since April 2000 the United Nations Environment Programme - World Conservation Monitoring Centre (UNEP-WCMC) and the Marine Aquarium Council (MAC) have been collaborating with members of trade associations such as the Indonesian Coral, Shell and Ornamental Fish Association (AKKII), Philippine Tropical Fish Exporters Association (PTFEA), Singapore Aquarium Fish Exporters’ Association (SAFEA), Ornamental Fish International (OFI) and Ornamental Aquatic Trade Association (OATA) to establish a Global Marine Aquarium Database (GMAD) as a freely available source of information on the global aquarium industry. The GMAD website (www.unep- wcmc.org/marine/GMAD) states that their common objective is to centralise, standardise and provide fast and easy access to information on the aquarium trade.

The GMAD website (accessed October 2007) reported that a total of 1,471 species of marine fish are traded worldwide with the best estimate of annual global trade ranging between 20 and 24 million individuals.

Damselfish (Pomacentridae) make up almost half of the global marine finfish trade, with species of angelfish (Pomacanthidae), surgeonfish (Acanthuridae), wrasses (Labridae), gobies (Gobiidae) and butterflyfish (Chaetodontidae) accounting for approximately another 25-30 per cent.

The Australian Ornamental Fish Industry in 2006/07

The most traded species are the blue-green damselfish (Chromis viridis), the clown anemonefish (Amphiprion ocellaris), the whitetail dascyllus (Dascyllus aruanus), the sapphire devil (Chrysiptera cyanea) and the threespot dascyllus (Dascyllus trimaculatus).

The ten most traded species account for about 36 per cent of all marine ornamental fish traded globally for the years 1997 to 2002. Trade data, correlated with aquarium suitability information, indicate that two species known not to acclimatize well to aquarium conditions are nonetheless very commonly traded. They are the bluestreak cleaner wrasse (Labroides dimidiatus: GMAD records 87,000 worldwide imports of this species from 1997 to 2002) and the mandarin fish (Synchiropus splendidus: GMAD records 11,000 live individuals exported to the EU in the same period). Data further indicate that species characterised as ‘truly unsuitable’, mainly due to their restricted dietary requirements, such as the foureye butterflyfish (Chaetodon capistratus), the harlequin filefish (Oxymonacanthus longisrostris) and the Hawaiian cleaner wrasse (Labroides phtirophagus), are also commonly traded, albeit in lower numbers.

4.3.6 Live Corals

In October 2007 GMAD reported that a total of 140 species of stony coral, nearly all scleractinians, are traded worldwide, with the best estimate of annual global trade ranging between 11 and 12 million pieces. Although difficulties associated with accurate coral identification probably make species data less reliable for corals than for fish, it is clear that species in six genera (Trachyphyllia, Euphyllia, Goniopora, Acropora, Plerogyra, Catalaphyllia) are the most popular, accounting for approximately 56 per cent of the live coral trade between 1988 and 2002. Sixty-one species of soft coral are also traded, amounting to close to 390,000 pieces per year. Sarcophyton spp. (leather/mushroom/toadstool coral) and Dendronephthya spp. (carnation coral) are two of the most commonly traded species. However, whilst the biology of the former makes it a hardy, fast-growing and easily propagated species under aquarium conditions, Dendronephthya spp. usually die within a few weeks, mainly due to the fact that they lack photosynthetic symbionts and rely on filtering particles and nutrients in the water column for food.

4.3.7 Live Rock4

Live rock (including live sand and coral) are used by marine aquarium enthusiasts to enhance the aesthetics or function of their aquaria. It is preferential to utilise live rock in a reef aquarium because it can fulfil three functions; biological filtration, support structure and assist in providing a more complete and natural ecosystem

Live rock can be coral pieces or other rocks which are usually encrusted with inhabited by a multitude of living organisms, including: • bacteria; • worms; • crustaceans (crabs, shrimps, isopods, copepods); • sponges; • cnidarians (soft corals, hard corals); • red (including coralline algae), brown, and green algae (both micro and macro); • gastropods (snails);

4 This section draws on www.ozreef.org/library/articles/liverock.html.

The Australian Ornamental Fish Industry in 2006/07

• molluscs (clams, nudibranchs); and • echinoderms (starfish, brittle stars).

Live rock is also used in saltwater aquariums as a main source of nitrifying bacteria, important role players in the nitrogen cycle that processes waste from aquarium inhabitants into less toxic forms. Live rock, especially when encrusted with multiple colours of coralline algae, can also be a major decorative element in a saltwater aquarium. It is often used to build caves, arches, overhangs or other structures in the tank.

Live rock, and live sand, can introduce unwanted organism into the ecosystem, hence, the importation of live rock is not permitted into Australia.

4.3.8 Marine Invertebrates

More than 500 species of invertebrates (other than corals) are traded as marine ornamentals (GMAD website, October 2007), though the lack of a standard taxonomy makes it difficult to arrive at a precise figure. The best estimate of global annual trade ranges between 9 and 10 million animals, mostly molluscs, shrimps and anemones. Two groups of cleaner shrimp, Lysmata spp. and Stenopus spp., and a group of anemones, Heteractis spp., account for approximately 15 per cent of all invertebrates traded.

4.4 Background on the Ornamental Fish Industry in Australia

The breeding and keeping of ornamental fish is an activitiy with close linkages to aquaculture. Currently, very little information exists relating to the size and structure of the ornamental fish industry in Australia.

The incidence of pet ownership in Australia is one of the highest in the world, with an estimated 63% of households owning some kind of pet. In 2005, total consumer expenditure on pet care products and services was estimated to be $4.62 billion. Approximately 85 per cent of this expenditure was related to dogs and cats. The remaining 15 per cent (approximately $0.69 biillion) involved expenditure relating to other types of pets including ornamental fish (BIS Shrapnel 2006).

A study in 1992 suggested that at least 10% of Australian households kept ornamental fish, and that more than one million Australians (or 6%) could be classified as hobbyists (Mangosi 1992).

Background on the structure, size and value of the Australian industry in the 1990s is provided in Appendix 4. However, the report “Contribution of the Pet Care Industry to the Australian Economy” (BIS Shrapnel 2006) provides a summary of the whole pet industry in 2005. Whilst much of the data collected are on dogs and cats, there are a number of interesting facts on ornamental or pet fish: • In 2005 Australia had a population of approximately 20 million fish, more than half of the total pet population.

The Australian Ornamental Fish Industry in 2006/07

• The state breakdown for fish ownership in 2005 was: o NSW / ACT 7.1 million o Victoria 4.9 million o Queensland 3.5 million o Western Australia 2.0 million o South Australia / NT 2.0 million o Tasmania 0.5 million • Each year approximately 15 million fish are sold.5 • Historically the wholesale price has averaged $1.50 per fish, the 2005 wholesale price was slightly under this, with annual wholesale sales worth around $22.5 million. • Using an average retail price of $4.00 per fish, the total retail value of fish sales in 2005 was probably over $60 million. • In 2005 there were 879 registered aquarium and supply shops in Australia which competed in a market worth approximately $100 million for aquaria, equipment and accessories. • In addition around $60 million worth of fish food was sold.

It is estimated that 2005 retail sales relating to the ornamental fish industry were approximately $220 million, based on retail sales of fish of $60 million, aquaria, equipment and accessory sales of $100 million and sales of fish food of $60 million (BIS Shrapnel 2006).

The findings of the BIS Shrapnel report (detailed above) are compared with the findings of the ornamental fish industry survey conducted for the purpose of this study in Section 18 of this report.

4.5 Remainder of the Report

In the remainder of the report the structure of the ornamental fish industry is presented with separate sections for each of the following: • breeders and collectors; • wholesale/imports sector; • retail sector; • hobbyists and hobby organisations; • unregulated trade; • illegal trade; • imports; and • exports.

5 Records suggest that 8–10 million ornamental fish per annum have been imported into Australia over many decades (Love et al. 2004), leaving local production at around 5-7 million.

The Australian Ornamental Fish Industry in 2006/07

5. Breeders and Collectors KEY FACTS: Australian Ornamental Fish Breeders & Collectors Business/Sector Overview • A total of 9 ornamental fish breeders participated in the survey. The survey respondents represent 57 per cent of the estimated total value of ornamental fish sales by breeders ($5.0 million). • 6 licensed collectors participated in the survey. In terms of value of sales, the responses account for just over 56 per cent of the total value of sales by collectors ($7.0 million). • Breeders and collectors supply the wholesale and retail trade sectors with fish, plants and invertebrates. • Some breeders are unlicensed (licence requirements vary state to state); collectors are all licensed. • The majority businesses operating in this sector are family owned or sole traders. Many have been established for long periods of time (average 27 years for breeders, and 12 years for collectors). • Many of the operators run integrated businesses incorporating wholesale and retail functions. Purchases • The number of fish purchased by breeders is limited due to disease concerns, particularly relating to imported products. Sales and distribution • Breeders sold an estimated 7.7 million fish worth $5.0 million, whilst collectors sold almost 0.6 million fish worth $5.3 million and 74 tonnes of live rock and coral worth an estimated $1.8 million. • Ornamental fish breeding occurs predominantly in Victoria. Primarily freshwater species are produced with Goldfish accounting for 91 per cent of production and 72 per cent of the value of production. Discus and Cichlids account for approximately 3 per cent of production and 9 per cent of the value of production. • Collectors are based in the northern areas of Australia which reflects the supply of and demand for tropical marine species. • Breeders primarily sell to the wholesale and retail sectors whilst collectors sell directly to retailers and export product overseas. Employment • For breeders surveyed the number of full-time equivalent (FTE) employees ranged from 1.0 to 8.6 and the average was 3.1. • For collectors surveyed the number of FTEs ranged from approximately 3.0 to 10.3 and the average was 5.8. Investment • Capital investment in the industry was estimated to be approximately $340,000 per operator for breeders (excludes land) and $2.0 million per operator for collectors. Annual expenditure • Average annual expenditure per operator was approximately $480,000 for collectors and $210,000 for breeders. The most significant cost item in both sectors was wages.

Source: Sections 5.1 to 5.7

The Australian Ornamental Fish Industry in 2006/07

A series of indicators are presented in the following sections to demonstrate the size and value of the breeder and collector sector of the Australian ornamental fish industry, including: • business/sector overview; • purchases; • sales and product destination; • employment; • investment in the industry; • operating expenditure; and • a sector summary

Further explanation and definition of each of these indicators, including method of calculation, is provided in Section 3.3 of this report. It should be noted that only averages and estimated sector totals are reported.

5.1 Business/Sector Overview

This sector includes businesses that are involved in supplying fish, plants and invertebrates to the wholesale and retail trade sectors of the ornamental fish industry.

The number of survey responses obtained from the breeders and collectors are summarised in Tables 5.1 and 5.2. The 15 responses received (9 from breeders and 6 from collectors) exceeds the original target of 10 responses. The estimated population of this sector was estimated, based on the advice of the project steering committee, to be between 200 and 400 (Table 3.1). A total of 15 responses represents between 3.75 and 7.50 per cent of the estimated total population of the sector.

Table 5.1 Survey responses from breeders by state/territory

State/Territory Number of Responses Proportion of Total Responses

New South Wales 1 11% Queensland 1 11% South Australia 1 11% Victoria 1 11% Western Australia 3 33% Other 2 22%

Total 9 100%

The survey respondents included several types of businesses such as: • breeder/supplier of aquatic plants; • breeder of a single species of ornamental fish; • breeder of multiple species of ornamental fish; and • licensed collector of fish, coral and live rock.

The Australian Ornamental Fish Industry in 2006/07

Table 5.2 Survey responses from collectors by state/territory

State/Territory Number of Responses Proportion of Total Responses

New South Wales 0 0% Queensland 4 67% South Australia 0 0% Victoria 0 0% Western Australia 2 33% Other 0 0%

Total 6 100%

Many of the businesses and individuals who participated in the consultation process were integrated businesses. Generally, these businesses undertake activities which involve collecting or breeding fish and selling products to the wholesale and retail sectors as well as directly to hobbyists through their own retail outlet.

The legislation regarding aquaculture permits for ornamental fish breeding varies from state to state. Where permits exist the number of commercial breeders in each state is limited by the number of permits issued.

Survey respondents were asked to provide an indication of the ownership/operation arrangement for their business and the length of business ownership. The responses from are summarised in Tables 5.3 and 5.4.

Table 5.3 Business ownership/operation for breeders a

Type of Business Number of Reponses Proportion of Total Responses

Family Owned 7 78% Partnership 2 22% Chain Store/Franchise 0 0% Sole Trader 0 0% Other 0 0%

Total 9 100% a See definition of terms for definitions of business types.

Seven of the nine breeders who participated in the study indicated that their business was family owned; the remaining two businesses were partnerships (Table 5.3).

The Australian Ornamental Fish Industry in 2006/07

Table 5.4 Length of business ownership/operation for breeders

Length of Business Ownership Number of Reponses Proportion of Total Responses / Operation

Less than a year 0 0% 1 to less than 5 years 1 11% 5 to less than 10 years 1 11% 10 to less than 20 years 4 44% 20 to less than 30 years 1 11% 30 years or more 2 22% Unknown 0 0%

Total 9 100%

For the breeders the length of business ownership ranged between 5 years and 79 years. The mean average length of business ownership/operation was 27 years. Seven of the nine respondents indicated that they had owned/operated their business for 10 years or more and only one respondent had owned the business for less than 5 years (Table 5.4).

Information regarding business ownership and operation was also obtained from collectors. The survey responses are summarised in Tables 5.5 and 5.6.

Table 5.5 Business ownership/operation for collectors a

Type of Business Number of Reponses Proportion of Total Responses

Family Owned 3 50% Partnership 2 33% Chain Store/Franchise 0 0% Sole Trader 0 0% Other 1 17%

Total 6 100% a See definition of terms for definitions of business types.

The Australian Ornamental Fish Industry in 2006/07

Table 5.6 Length of business ownership/operation for collectors

Length of Business Ownership Number of Reponses Proportion of Total Responses / Operation

Less than a year 0 0% 1 to less than 5 years 1 17% 5 to less than 10 years 0 0% 10 to less than 20 years 5 83% 20 to less than 30 years 0 0% 30 years or more 0 0% Unknown 0 0%

Total 6 100%

For collectors the length of business ownership ranged between 4 years and 17 years. The mean average length of business ownership/operation was 12 years. This suggests that only a limited number of businesses have entered the sector in recent years.

The number of licensed collectors (in WA, NT, QLD and VIC only) is limited by the management structure of each of the fisheries. The market concentration varies between species and products.

5.2 Purchases

The estimated total value and number of ornamental fish purchased by breeders is summarised in Table 5.7.

Table 5.7 Purchases of ornamental fish by breeders, product source, 2006/07 a

Ornamental Fish Purchases Product Source Quantity (000) Value ($'000) Average Price ($/unit) Imported 3.2 8.5 2.62 Collector 0.0 0.0 - Breeder 0.2 0.5 2.62 Wholesaler 1.7 4.4 2.62 Hobby Breeder 0.0 0.0 -

Total 5.1 13.4 2.62 a The total number and value of fish purchased represents an estimated total for all commercial breeders in the Australian ornamental fish industry. Source: Survey responses and EconSearch analysis.

The ornamental fish breeders who participated in the study indicated that they limited the amount of fish they purchased to minimise the risk of fish losses in case of disease. Some breeders indicated that they had purchased stock from overseas in the past which had inadvertently led to disease outbreaks.

The Australian Ornamental Fish Industry in 2006/07

Some collectors indicated that they purchase the fish collected from the divers that operate on their licence. This arrangement is deemed to be akin to payment of wages to an employee. None of the collectors who participated in the survey indicated that they made any fish purchases from outside their sector (e.g. from breeders, wholesalers or retailers).

5.3 Sales and Product Destination

Breeders

The quantity and value of sales by ornamental fish breeders in Australia is summarised in Table 5.8. The most significant amount of fish, in terms of number and value, are produced in Victoria and Queensland, where the largest ornamental fish breeders are located. Production by ornamental fish breeders is predominantly freshwater species.

A small number of specialist breeding operations have recently begun breeding marine species. Due to the limited number of operators and survey responses it is not possible to separate ornamental fish sales into marine and freshwater species. Survey responses suggest that breeding of marine species is currently minimal but is likely to increase over the next few years. There are also two commercial coral farms operating in Australia. Unfortunately due to the limited sample size and difficulties in identifying and contacting businesses coral and marine breeding has not been captured in the survey results.

Table 5.8 Sales of ornamental fish by breeders, state/territory, 2006/07 a

Ornamental Fish Sales State Quantity ('000) Value ($'000) Average Price ($/unit) Northern Territory 36 200 5.50 New South Wales 573 429 0.75 Victoria 3,889 2,000 0.51 Queensland 2,880 1,302 0.45 South Australia 106 697 6.59 Western Australia 127 230 1.81 Other 120 140 1.17 b Total 7,731 4,998 0.65 a The total number and value of fish sold represents an estimated total for all commercial breeders in the Australian commercial fish industry. b Totals may not sum due to rounding. Source: Survey responses and EconSearch analysis.

The value of fish sales by survey respondents ranged from less than $10,000 to over $1.5 million. Average fish sales were approximately $360,000 per operator. Survey respondents accounted for an estimated 60 per cent of the total value of ornamental fish sales by commercial breeders.

A breakdown of ornamental fish production by species group is provided in Table 5.9.

The Australian Ornamental Fish Industry in 2006/07

Table 5.9 Sales of freshwater species by breeders, species group, 2006/07

Proportion of Total Sales Species Group Number of Fish Sold Value of Sales Australian Natives 0.2% 1.6% Catfish 2.1% 3.9% Goldfish and Koi 91.1% 71.7% Barbs and Danios 0.0% 0.0% Live Bearers 2.2% 11.8% Discus and Cichlids 3.1% 9.1% Tetras 0.6% 0.9% Gouramis and Bettas 0.0% 0.0% Miscellaneous 0.0% 0.0% Others 0.6% 0.9%

Total 100.0% 100.0% Source: Survey responses and EconSearch analysis

The proportions of total number and value of sales highlight some key differences in the value of different species groups: • Goldfish and Koi accounted for just over 91 per cent of the total number of fish sold and only 72 per cent of the value of sales. • Discus and Cichlids accounted for just over 3 per cent of the total number of fish sold and over 9 per cent of the total value of sales.

The total value of sales and product destination for ornamental fish breeders in Australia is summarised in Table 5.10.

Table 5.10 Sales of ornamental fish by breeders, product destination, 2006/07 a

Ornamental Fish Sales Product Destination Quantity ('000) Value ($'000) Average Price ($/unit) Export 0 0 - Wholesale 4,028 2,468 0.61 Retail 3,679 2,423 0.66 Hobbyist - Serious 18 100 5.50 Hobbyist - Moderate 6 7 1.17 Hobbyist - Irregular 0 0 - b Total 7,731 4,998 0.65 a See note for Table 5.8. b Total may not sum due to rounding. Source: Survey responses and EconSearch analysis

Ornamental fish breeders who participated in the survey indicated that they primarily sold fish to specialist ornamental fish wholesalers or directly to retailers. A small proportion of fish are sold by breeders directly to hobbyists (Table 5.10).

The Australian Ornamental Fish Industry in 2006/07

Some breeders, who participated in the survey, indicated that there is likely to be an increase in the proportion of total sales directly to retailers over the next few years. Sales directly to retailers allow breeders to obtain a higher price for their product.

Sales of aquatic plants by product destination are summarised in Table 5.11. The average value of sales of aquatic plants, per surveyed operator, was approximately $160,000.

Table 5.11 Sales of aquatic plants by breeders/suppliers, product destination, 2006/07 a

Aquatic Plant Sales Product Destination Value ($'000) Proportion of Total (%) Export 0 0% Wholesale 0 0% Retail 780 94% Hobbyist - Serious 52 6% Hobbyist - Moderate 0 0% Hobbyist - Irregular 0 0% b Total 832 100% a The total value of aquatic plants sold represents an estimated total for all commercial breeders/suppliers in the Australian commercial fish industry. b Total may not sum due to rounding. Source: Survey responses and EconSearch analysis

Collectors

The estimated quantity and value of sales by ornamental fish collectors in Australia is summarised in Table 5.12 by state of origin. The total quantity and value of sales represents an estimated total for all ornamental fish collectors in the Australian ornamental fish industry.

Table 5.12 Sales of ornamental fish sales by collectors, state/territory, 2006/07

Ornamental Fish Sales a Other Sales b State Quantity Value c Average Quantity Value c Average ('000) ($'000) Price ($/unit) (tonnes) ($'000) Price ($/kg) Northern Territory 62 321 5 2 37 23 Queensland 209 3,134 15 46 696 15 Victoria n.a. n.a. - n.a. n.a. - Western Australia 301 1,837 6 26 1,023 39 d Total 572 5,292 9 74 1,756 24 a Includes aquatic finfish, mollusc, crustacean and other invertebrate species. b Includes live rock and coral. c Excludes freight and marketing. d Totals may not sum due to rounding. Source: Survey responses and EconSearch analysis

The Australian Ornamental Fish Industry in 2006/07

Industry sources suggest that there are licensed wild catch collectors who operate in Victoria. Due to the limited sample size and difficulties in identifying and contacting some businesses no responses from Victorian collectors were obtained. The estimates of the quantity and value of sales presented in Tables 5.12 and 5.13 are survey based estimates.

The estimated quantity and value of sales by ornamental fish collectors is summarised in Table 5.13 by sales destination. The total quantity and value of sales represents an estimated total for all ornamental fish collectors in the Australian ornamental fish industry.

Table 5.13 Sales of ornamental fish by collectors, destination, 2006/07

Ornamental Fish Sales a Other Sales b Destination Quantity Value c Average Quantity Value c Average ('000) ($'000) Price ($/unit) (tonnes) ($'000) Price ($/kg) Export 56 911 16.32 6 95 16 Wholesale 4 62 16.32 13 205 16 Retail 470 4,004 8.53 43 1,163 27 Hobbyist - Serious 5 85 16.32 3 41 16 Hobbyist - Moderate 37 230 6.16 9 253 28 Hobbyist - Irregular 0 0 - 0 0 - d Total 572 5,292 9.26 74 1,756 24 a Includes aquatic finfish, mollusc, crustacean and other invertebrate species. b Includes live rock and coral. c Excludes freight and marketing. d Totals may not sum due to rounding. Source: Survey responses and EconSearch analysis

The total value of sales by collectors excludes margins placed on freight and packaging of products. Many collectors who participated in the study indicated that freight and packaging margins were an essential source of income for their business, adding as much as 50% of their sales. This is not included in the GVP (Section 14).

There was some difficulty involved in estimating the total value of fish, coral and live rock sold by collectors. None of the collectors who responded to the survey were able to indicate how many fish they sold or the average sale price, only the total value of sales was available. Some data were available from state/territory fishery departments on the number of fish sold, however no information was available on the average price or total value.

The value of ornamental fish sales by collectors who participated in the survey ranged from less than $50,000 to over $1.0 million. The average value of ornamental fish sales per surveyed operator was approximately $300,000. The value of ‘other’ sales ranges between approximately $250,000 and almost $450,000. The average value of ‘other‘ sales was approximately $350,000 per surveyed operator.

Sales of ornamental fish, live rock and coral by survey respondents accounted for an estimated 56 per cent of the total value of sales reported in Table 5.13.

The Australian Ornamental Fish Industry in 2006/07

5.4 Employment

Breeders were asked to provide an indication of the number of employees that worked in their business, a summary of responses is provided in Table 5.14.

Table 5.14 Employment in the ornamental fish industry by breeders, 2006/07

Owner / Operator Paid Employees Total Employment Labour a Number Full Time 0.6 1.7 2.3 Part Time 0.6 2.2 2.8 Total b (no) 1.1 2.7 3.9 c 0.8 2.3 3.1 Number of FTEs a Owner/operator labour includes family and other unpaid family helpers. b Totals may not sum due to rounding. c Full time equivalents. Source: Survey responses and EconSearch analysis

The number of employees ranged from 1 to 11 and on average businesses employed 4 persons. The number of FTEs ranged from 1.0 to 8.6, the average number of FTEs was 3.1. Based on the survey responses, total employment in the breeder sector is estimated to be around 50 employees (40 FTEs). The average annual wage (including on costs) earned by employees in the breeder sector in 2006/07 was approximately $47,000 per FTE6.

Employment details were also obtained from businesses involved in the collection of fish, live rock and coral, responses are summarised in Table 5.15

Table 5.15 Employment in the ornamental fish industry by collectors, 2006/07

Owner / Operator Paid Employees Total Employment Labour a Number Full Time 0.3 4.2 4.5 Part Time 1.0 0.8 1.8 Total b (no) 1.3 5.0 6.3 c Number of FTEs 1.2 4.7 5.8 a Owner/operator labour includes family and other unpaid family helpers. b Totals may not sum due to rounding. c Full time equivalents. Source: Survey responses and EconSearch analysis

6 Based on average employment per operator of 3.1 FTEs and average annual expenditure on wages of approximately $143,000 (including imputed unpaid labour).

The Australian Ornamental Fish Industry in 2006/07

The number of employees per operator ranged from 4 to 11; on average businesses employed 6 persons. The number of FTEs employed by collectors surveyed ranged from approximately 3 to 10; the average number of FTEs was 6. Based on the survey responses, total employment in the collector sector is estimated to be around 70 employees (60 FTEs). Industry representatives have indicated that they believe it to be more like 100 FTEs7. The average annual wage (or share of catch) earned by employees in the collector sector was approximately $47,000 per FTE (including on costs).

Due to the limited number of collectors included in the survey sample and the high degree of variability between operators it is difficult to estimate the total employment generated by the sector.

5.5 Investment in the Industry

Based on the survey responses the most significant capital items employed in the ornamental fish breeding businesses are: • sheds and buildings; • motor vehicles; and • aquarium equipment.

Capital investment by ornamental fish breeders is summarised in Table 5.16.

Table 5.16 Investment in the ornamental fish industry by breeders, 2006/07

Average Capital Investment Capital Item Coefficient of Variation a per Operator ($)

Aquarium / Pond Equipment b 92,310 165% Sheds & Buildings 157,000 131% Vehicles 135,000 193% Other c 600 263% d Total Investment 338,443 159% a Coefficient of variation is a relative measure of dispersion expressed as a percentage. It is calculated by dividing the standard deviation by the arithmetic mean. b ‘Aquarium/Pond Equipment’ includes tanks, ponds, filters, water treatment equipment, pumps, aeration equipment and lights. c ‘Other’ includes office equipment, trailers and any other equipment used in the ornamental fish business. d Total investment includes investment in capital items only, that is, it excludes the value of land and working capital. Source: Survey responses and EconSearch analysis

7 Due to the limited number of collectors included in the survey sample and the high degree of variability between operators it is difficult to estimate the total employment generated by the sector.

The Australian Ornamental Fish Industry in 2006/07

Total investment in capital items by survey respondents ranged from approximately $31,000 to $1.5 million (excludes land value). Average total investment in the ornamental fish industry by breeders who participated in the survey was almost $340,000 per operator. There was a significant amount of variation in the level of capital investment in the industry; this is to be expected given the differences in the scale of operations. Based on the total investment by survey respondents, the total investment (excluding land value) by all commercial breeders Australia wide was estimated to be around $4 million in 2006/07.

The level of investment in the industry was also obtained from collectors. Survey responses are summarised in Table 5.17.

Table 5.17 Investment in the ornamental fish industry by collectors, 2006/07

Average Capital Investment Capital Item Coefficient of Variation a per Operator ($)

Aquarium Equipment 34,283 74% Sheds & Buildings 438,802 99% Motor Vehicles 92,574 127% Trailers 18,496 175% Boats & Gear 384,639 149% Licence 1,197,000 123% b Total Investment 1,950,865 123% a Coefficient of variation is a relative measure of dispersion expressed as a percentage. It is calculated by dividing the standard deviation by the arithmetic mean. b Total investment includes investment in capital items only, that is, it excludes the value of land and working capital Source: Survey responses and EconSearch analysis

The most significant capital investment by ornamental fish collector businesses was in the following: • fishing/collecting licence; • sheds and buildings; • boats and equipment; and • motor vehicles.

Total investment in the industry by survey respondents ranged from approximately $360,000 to over $6.7 million. Average total investment in the ornamental fish industry by collectors was almost $2.0 million per operator. There was a significant amount of variation in the level of investment between operators. This is to be expected given the variability in sizes of operations and number of collector licences held by each operation. Due to the high degree of variability between operators and the small number of respondents, the estimated total investment has not been reported. It is estimated, based on consultation with industry stakeholders, that investment in the industry by collectors Australia wide exceeds $20 million.

The Australian Ornamental Fish Industry in 2006/07

5.6 Operating Expenditure

As a part of the survey, participants were asked to provide an estimate of direct and administrative costs associated with the operation of the business. Average expenditure by ornamental fish breeders in Australia is summarised in Table 5.18.

Table 5.18 Operating expenditure by ornamental fish breeders, 2006/07

Average Expenditure per Expenditure Item Coefficient of Variation a Operator ($)

Direct Costs Consumables 25,033 131% Electricity 21,231 166% Wages 104,643 155% Freight & Marketing 25,120 156% Packaging 7,857 265% Imputed Unpaid Labour b 37,925 83% Other Direct Costs c 25,014 238% Total Direct Costs 192,079 150% Administrative Costs Insurance 13,472 140% Legal & Accounting 5,400 154% Communication 2,209 77% Rates 3,122 90% Travel & Accommodation 0 11% Licences & Permits 1,348 106% Other Administrative Costs d 222 300% Total Administrative Costs 21,595 145%

Total Operating Costs 207,504 150% a Coefficient of variation is a relative measure of dispersion expressed as a percentage. It is calculated by dividing the standard deviation by the arithmetic mean. b Information on the number of hours spent on sales and marketing, general labouring and management and administration by unpaid workers was collected as a part of the survey. The number of hours was multiplied by indicative wage rates to impute a wage for these workers. c ‘Other Direct Costs’ include chemicals, repairs and maintenance and fuel. d ‘Other Administrative Costs’ include rents, leasing charges and fees, interest and borrowing costs and membership. Source: Survey responses and EconSearch analysis

The Australian Ornamental Fish Industry in 2006/07

Based on the survey responses the most significant costs for ornamental fish breeders in 2006/07 were: • wages; • packaging; • repairs and maintenance; • freight and marketing; • electricity; and • consumables (e.g. fish food).

There was a significant level of variation in the costs incurred by ornamental fish breeders, which is to be expected given the differences in scale of operations in the industry.

Total annual operating expenditure by ornamental fish breeders and suppliers, who participated in the study, ranged from just over $11,000 to approximately $812,000. Average total expenditure relating to the ornamental fish industry by survey participants was approximately $208,000 per operator.

Expenditure by ornamental fish collectors is summarised in Table 5.19.

The most significant costs for collectors were: • wages; • fuel; • freight and marketing; • electricity; and • rent.

Total annual expenditure by ornamental fish collectors who provided a response to the questionnaire ranged from just over $190,000 to almost $1.3 million. Based on the survey responses average total annual expenditure by collectors relating to the ornamental fish industry was approximately $481,000 per operator. Due to the limited number of responses and the level of variability between operators, total annual expenditure has not been calculated.

The Australian Ornamental Fish Industry in 2006/07

Table 5.19 Operating expenditure by ornamental fish collectors, 2006/07

Average Expenditure per Expenditure Item Coefficient of Variation a Operator ($)

Direct Costs Consumables 12,833 114% Electricity 15,583 101% Wages 215,800 61% Freight & Marketing 125,567 141% Fuel 60,600 138% Imputed Unpaid Labour b 57,000 112% Other Direct Costs c 11,655 148% Total Direct Costs 442,871 95% Administrative Costs Insurance 7,338 107% Rents 8,093 175% Interest & Borrowing Costs 5,500 160% Travel & Accommodation 7,333 55% Licences / Permits 11,825 148% Other Administrative Costs d 6,741 118% Total Administrative Costs 45,599 57%

Total Operating Costs 480,870 85% a Coefficient of variation is a relative measure of dispersion expressed as a percentage. It is calculated by dividing the standard deviation by the arithmetic mean. b Information on the number of hours spent on sales and marketing, general labouring and management and administration by unpaid workers was collected as a part of the survey. The number of hours was multiplied by indicative wage rates to impute a wage for these workers. c ‘Other Direct Costs’ include chemicals, repairs and maintenance and salt water. d ‘Other Administrative Costs’ include legal and accounting fees, communication, rates, leasing charges and fees and memberships. Source: Survey responses and EconSearch analysis

5.7 Sector Summary

The following diagrams provide an overview of the relationships that exist between breeders and collectors and other sectors within the ornamental fish industry.

Figure 5.1 summarises the flow of purchases and sales by ornamental fish breeders within the industry. Figure 5.2 highlights the contribution of each state based aquarium fishery to the total value of production and the flow of sales to other sectors within the industry.

The Australian Ornamental Fish Industry in 2006/07

Figure 5.1 Summary of value of purchases and sales by breeders, 2006/07 a

Breeder Sector Wholesalers

Imports Sales andProductDestination 49% 64% Specialist Retailers

General Retailers

48% Ornamental Fish Wholesaler 33% Breeders

Serious Hobbyists

2% 4% Moderate Hobbyists Purchases and Product Source Purchases and Product

Commercial Breeders Irregular Hobbyists

Ornamental Fish Trade

a Percentage values denote the proportion of total purchases (Table 5.7) and sales (Table 5.10) of ornamental fish. Source: Survey responses and EconSearch analysis.

Figure 5.2 Summary of value of sales by collector sector, 2006/07 a

Queensland Collector Sector Marine Aquarium Fish 17% Exports Fishery Commercial Coral Fishery 5% Sales andProductDestination

1% Wholesale

12% Northern Territory Total Wild Catch Production Aquarium Fishery 76% Specialist Retailers

ht Product Source 66% g General Retailers

6% Western Australia Wild Cau Marine Aquarium Fish 17% Managed Fishery Hobbyists

Ornamental Fish Trade Other Trade

a Percentage values denote the proportion of total sales (Table 5.13) of ornamental fish and other (live rock, coral and aquatic plants). Source: Survey responses and EconSearch analysis.

6. Wholesale and Import Sector KEY FACTS: Australian Ornamental Fish Wholesale and Import Sector Business/Sector Overview • A total of 16 ornamental fish industry wholesalers participated in the survey. Based on the estimated value of sales for the wholesale sector, these responses represent approximately 86 per cent of fish sales and 36 per cent of accessories sales, that is, 49 per cent overall. • The wholesale/import sector includes businesses that are involved in directly importing fish and/or accessories from overseas for wholesale sale primarily to retailers. • The majority of businesses operating in this sector are family owned or partnerships, many of which have been established for a long period of time. Approximately 65 per cent of survey respondents indicated that their businesses had been operating for 20 years or more. Purchases • Wholesalers purchase large numbers of fish from overseas and also source stock from local (Australian) breeders. • Ornamental fish related accessories (tanks, filters, etc.) are primarily imported from overseas and distributed domestically. Only minimal quantities of accessories are manufactured within Australia. • It was estimated that wholesalers/importers purchased approximately 19.1 million fish in 2006/07 with a total value of $8.0 million. Sales and distribution • Almost all ornamental fish sales by the wholesale sector are to specialised and general retail outlets. It was estimated that in 2006/07 the total number of ornamental fish sold by the wholesale sector was around 18.9 million. The value of these sales is estimated to be almost $27.0 million for 2006/07. • Sales of freshwater species accounted for approximately 95 per cent of the total quantity and 92 per cent of the total value of ornamental fish wholesale sales. • Sales of marine species accounted for approximately 5 per cent of the total quanity and 8 per cent of the total value of ornamental fish wholesale sales. Employment • On average, operators in the wholesale/import sector each employed 16 people (14 FTEs) in 2006/07. Investment • Average capital investment in the ornamental fish industry by wholesalers/importers is estimated to be approximately $690,000 per operator. The most significant capital investments are in sheds and buildings and aquarium equipment. Annual operting expenditure • On average, operators in the wholesale/import sector spent approximately $272,000 on direct and administrative expenses in 2006/07. Major expenditure items include wages, freight and marketing, interest and travel expenses.

Source: Sections 6.1 to 6.7

A series of indicators are presented in the following sections to demonstrate the size and value of the wholesale/import sector of the Australian ornamental fish industry, including: • business/sector overview; • purchases; • sales and product destination; • employment; • investment in the industry; • operating expenditure; and • a sector summary

Further explanation and definition of each of these indicators, including method of calculation, is provided in Section 3.3 of this report. It should be noted that, for confidentiality reasons, only survey averages and estimated sector totals are reported.

6.1 Business/Sector Overview

The wholesale/import sector includes businesses that are involved in directly importing fish and/or accessories from overseas for wholesale sale primarily to retailers.8 Wholesalers also purchase fish and/or accessories from local breeders and suppliers.

The geographical distribution of survey responses obtained from the wholesale/import sector is summarised in Table 6.1. The total number of responses received (16) exceeds the original target of 10 responses. The estimated population of the wholesale/import sector was estimated, based on the advice of the project steering committee, to be 20 (Table 3.1). A total of 16 responses represents 80 per cent of the estimated total population of the sector.

Table 6.1 Survey responses from the wholesale sector by state/territory a

Proportion of Total State/Territory Number of Responses Respondents

New South Wales 2 13% Queensland 3 19% South Australia 1 6% Victoria 3 19% Western Australia 7 44% Other 0 0% b Total 16 100% a A number of businesses that participated in the survey distributed products Australia-wide and/or had operations in more than one state/territory. Responses have been classified by state/territory based on the juridiction in which the business is primarily situated. b Totals may not sum due to rounding.

8 Data on the quantity and value of ornamental fish imports into Australia are detailed in Section 11 of this report.

The Australian Ornamental Fish Industry in 2006/07

Many of the businesses that participated in the consultation process were integrated businesses. Generally, these integrated businesses were large specialist retailers that had a quarantine licence and facilities importing fish directly from overseas. Some retailers also imported electrical goods and other accessories directly from overseas, rather than purchasing these items through a wholesaler. A number of wild catch collectors also acted as wholesalers.

The wholesale sector of the ornamental fish industry in Australia consists of a small number of large firms that account for the majority of the market share and a large number of small firms that account for only a small proportion of the total market.

Survey respondents were asked to provide an indication of the ownership/operation arrangement for their business. The results are summarised in Tables 6.2 and 6.3.

Table 6.2 Business ownership/operation in the wholesale sector a

Proportion of Total Type of Business Number of Reponses Respondents

Family Owned 6 38% Partnership 5 31% Chain Store/Franchise 0 0% Sole Trader 2 13% Other 3 19% b Total 16 100% a Definitions of business types are detail in the definition of terms b Totals may not sum due to rounding.

Table 6.3 Length of business ownership/operation in the wholesale sector

Length of Business Proportion of Total Number of Reponses Ownership / Operation Respondents

Less than a year 0 0% 1 to less than 5 years 2 13% 5 to less than 10 years 2 13% 10 to less than 20 years 1 6% 20 to less than 30 years 5 31% 30 years or more 4 25% Unknown 2 13% a Total 16 100% b Totals may not sum due to rounding.

For the wholesale sector, the length of business ownership ranged between 1 year and 40 years. The mean length of business ownership/operation was 20 years.

The Australian Ornamental Fish Industry in 2006/07

From a total of 16 responses, 9 wholesalers indicated that they were a member of PIAA. The average length of membership was 22 years.

6.2 Purchases

The principal information used to estimate the value of ornamental fish purchases by the wholesale sector was collected in the survey process. Information was also sourced from the Australian Bureau of Statistics (ABS) on the value of ornamental fish imports into Australia. The estimated number and value of purchases of freshwater species by the wholesale/import sector for 2006/07 is summarised in Table 6.4.

Table 6.4 Purchases of freshwater species by the wholesale sector, product source, 2006/07

Freshwater Species Purchases Product Source Quantity ('000) Value ($'000) Average Value ($/unit)

Imported 15,191 5,707 0.38 Collector 0 0 - Breeder 3,006 1,496 0.50 Wholesaler 0 0 - Hobby Breeder 0 0 -

Total 18,197 7,203 0.40 a The total number and value of fish purchased represents an estimated total for all wholesalers in the Australian ornamental fish industry. Source: Survey responses, ABS (by request) and EconSearch analysis.

In 2006/07, the wholesale sector purchased approximately 18.2 million freshwater ornamental fish with an estimated value of $7.2 million. Over 80 per cent of purchases were imports from overseas (Table 6.4).

The range in the value of freshwater species purchases by survey respondents was large, but, for confidentiality reasons, it cannot be reported. The average value of freshwater species purchases, per surveyed operator, was approximately $860,000.

The estimated value of purchases by freshwater species group is summarised in Table 6.5.

In terms of value, Goldfish and Koi were the most significant freshwater species group (21 per cent). Live Bearers (20 per cent), Tetras (15 per cent) and Catfish (11 per cent) were also significant.

The Australian Ornamental Fish Industry in 2006/07

Table 6.5 Purchases of freshwater species by the wholesale sector, species group, 2006/07

Freshwater Species Purchases Species Group Value ($'000) Proportion of Total (%) Australian Natives 00% Catfish 819 11% Goldfish and Koi 1,502 21% Barbs and Danios 16 0% Live Bearers 1,407 20% Discus and Cichlids 48 1% Tetras 1,045 15% Gouramis and Bettas 24 0% Others 2,341 33% 7,203 100% Total Source: Survey responses and EconSearch analysis.

Wholesalers were asked to provide an indication of the typical source of purchases of particular species. Comments provided are summarised in Table 6.6.

Table 6.6 Purchases of freshwater species by the wholesale sector, product source by species group, 2006/07

Species Group Product Source Australian Natives All sourced from breeders within Australia. Catfish Mostly imported from overseas although there are some local breeders. Goldfish and Koi Approximately half of total purchases are from local breeders and the remainder from overseas. Koi are not imported. Barbs and Danios Mostly imported from overseas. Live Bearers Mostly imported from overseas. Discus and Cichlids Approximately half of total purchases are from overseas remainder of purchases are from local breeders. Tetras Almost all imported from overseas. Gouramis and Almost all imported from overseas. Bettas Source: Survey responses.

The estimated number and value of purchases of marine species of ornamental fish by the wholesale/import sector for 2006/07 is summarised in Table 6.7.

The Australian Ornamental Fish Industry in 2006/07

Table 6.7 Purchases of marine species by the wholesale sector, product source, 2006/07 a

Marine Species Purchases Product Source Quantity ('000) Value ($'000) Average Value ($/unit) Imported 164 58 0.36 Collector 2 27 16.32 Breeder 693 694 1.00 Wholesaler 0 0 - Hobby Breeder 0 0 - Total 859 800 0.93 a The total number and value of fish purchased represents an estimated total for all wholesalers in the Australian ornamental fish industry. Source: Survey responses, ABS (by request) and EconSearch analysis.

It is estimated that wholesalers primarily purchase marine species from breeders. It is estimated that the total value of marine species purchases by the wholesale sector was approximately $800,000 in 2006/07.

The average price of marine species purchases was $0.93 per fish in 2006/07, over double the estimate price of freshwater species ($0.42 per fish) (Tables 6.7 and 6.4).

For confidentiality reasons, the range in the value of marine species purchases by survey respondents cannot be reported. The average value of freshwater species purchases, per surveyed operator, was approximately $50,000.

Total ornamental fish purchases by the wholesale sector are summarised in Table 6.8. It was estimated that the total value of ornamental fish purchased by the wholesale sector was approximately $8.0 million in 2006/07. Over 80 per cent of these purchases were imports and almost 20 per cent from local breeders.

Table 6.8 Purchases of ornamental fish by the wholesale sector, product source, 2006/07 a

Total Ornamental Fish Purchases Product Source Quantity ('000) Value ($'000) Average Value ($/unit) Imported 15,355 5,765 0.38 Collector 2 27 16.32 Breeder 3,698 2,190 0.59 Wholesaler 0 0 - Hobby Breeder 0 0 - Total 19,055 8,003 0.42 a The total number and value of fish purchased represents an estimated total for all wholesalers in the Australian ornamental fish industry. Source: Survey responses, ABS (by request) and EconSearch analysis.

The estimated value of purchases of ornamental fish related accessories (food, electrical goods, tanks etc.) is detailed in Table 6.9 by product source.

The Australian Ornamental Fish Industry in 2006/07

Table 6.9 Purchases of ornamental fish accessories by the wholesale sector, product source, 2006/07 a

Accessories Purchases Product Source Value ($'000) Proportion of Total Imported 22,676 96% Australian Manufacturer 954 4%

Total 23,630 100% a The total value of accessory purchases represents an estimated total for all wholesalers in the Australian ornamental fish industry. Source: Survey responses and EconSearch analysis.

The total value of accessories purchased by the wholesale/import sector was estimated to be $23.6 million in 2006/07. Approximately 96 per cent of these purchases were imports (Table 6.9).

For confidentiality reasons, the range in the value of accessories purchases by survey respondents cannot be reported. The average value of accessories purchases, per surveyed operator, was approximately $900,000.

6.3 Sales and Product Destination

The principal information used to estimate the value of ornamental fish sales by the wholesale sector was collected in the survey process. Information was also sourced from the Australian Bureau of Statistics on the value of ornamental fish exports from Australia. It should be noted that all estimates of the quantity and value of wholesale sales reflect a total for the industry rather than a survey total.

The estimated quantity and value of sales of freshwater species by the wholesale sector and the product destination for 2006/07 are summarised in Table 6.10.

Table 6.10 Sales of freshwater species by the wholesale sector, product destination, 2006/07 a

Freshwater Species Sales Product Destination Quantity ('000) Value ($'000) Average Value ($/unit) Export 16 280 17.92 Wholesale 0 0 - Retail 17,999 24,639 1.37 Hobbyists 0 0 - Total 18,015 24,919 1.38 a The total quantity and value of fish sales represents an estimated total for all wholesalers in the Australian ornamental fish industry. Source: Survey responses and EconSearch analysis.

The Australian Ornamental Fish Industry in 2006/07

The wholesale sector sold an estimated 18.0 million fish in 2006/07. The value of these sales was approximately $24.9 million. Approximately 99 per cent of these sales were to the retail sector with the remainder being exported (Table 6.10).

The range in the value of freshwater species sales by survey respondents was significant, but, for confidentiality reasons, it cannot be reported. The average value of freshwater species sales, per surveyed operator, was approximately $3.2 million.

The estimated value of sales by freshwater species group is summarised in Table 6.11.

Table 6.11 Sales of freshwater species by the wholesale sector, species group, 2006/07

Freshwater Species Sales Species Group Value ($'000) Proportion of Total (%) Australian Natives 00% Catfish 2,832 11% Goldfish and Koi 5,198 21% Barbs and Danios 55 0% Live Bearers 4,868 20% Discus and Cichlids 166 1% Tetras 3,616 15% Gouramis and Bettas 83 0% Others 8,101 33% Total 24,919 100% Source: Survey responses and EconSearch analysis.

Sales of Goldfish and Koi accounted for 21 per cent of the total value of fish sold other significant sales were of livebearers and tetras (Table 6.11).

The estimated value of wholesale sales of marine species by product destination is detailed in Table 6.12.

The total value of wholesale sector sales of marine species in 2006/07 was estimated to be $2.0 million. Sales to the retail sector accounted for approximately 99 per cent of total wholesale sales (Table 6.12).

The range in the value of marine species sales by survey respondents was significant, but, for confidentiality reasons, it cannot be reported. The average value of marine species sales, per surveyed operator, was approximately $150,000.

The Australian Ornamental Fish Industry in 2006/07

Table 6.12 Sales of marine species by the wholesale sector, product destination, 2006/07

Marine Species Sales Product Destination Quantity ('000) Value ($'000) Average Value ($/unit) Export b 1 24 17.92 Wholesale 0 0 - Retail 849 2,029 2.39 Hobbyists 0 0 -

Total 850 2,053 2.42 a The total quantity and value of fish sales represents an estimated total for all wholesalers in the Australian ornamental fish industry b These exports could potentially include exports by wild catch collectors who also act as wholesalers. Source: Survey responses and EconSearch analysis.

Total ornamental fish sales (freshwater and marine) by product destination are summarised in Table 6.13.

Table 6.13 Sales of ornamental fish by the wholesale sector, product destination, 2006/07 a

Total Ornamental Fish Sales Product Destination Quantity ('000) Value ($'000) Average Value ($/unit) Export 17 303 17.92 Wholesale 0 0 - Retail 18,848 26,669 1.41 Hobbyists 0 0 -

Total 18,864 26,972 1.43 a The total quantity and value of fish sales represents an estimated total for all wholesalers in the Australian ornamental fish industry Source: Table 6.10 and 6.12.

The total value of wholesale sales of ornamental fish in Australia was estimated to be almost $27.0 million in 2006/07. Sales of freshwater species accounted for approximately 95 per cent of the total quantity of fish sold and almost 92 per cent of the total value. Sale of marine species accounted for almost 5 per cent of the total quantity of fish sold and 8 per cent of the total value (Tables 6.10 to 6.13).

The estimated value of sales of ornamental fish related accessories is detailed in Table 6.14 by product destination.

The Australian Ornamental Fish Industry in 2006/07

Table 6.14 Sales of ornamental fish accessories by the wholesale sector, product destination, 2006/07 a

Accessories Sales Product Destination Value ($'000) Proportion of Total Export 0 0% Wholesale 2,329 6% Retail 38,755 92% Consumer 852 2%

Total 41,936 100% a The total value of ornamental fish related accessories sales represents an estimated total for all wholesalers in the Australian ornamental fish industry Source: Survey responses and EconSearch analysis.

The total value of accessories sold by the wholesale/import sector was estimated to be $41.9 million in 2006/07. Approximately 92 per cent of these sales were to the retail sector, 6 per cent were to other, smaller wholesalers and 2 per cent were sold directly to consumers. The average value of accessories sales, per surveyed operator, was approximately $1.8 million.

6.4 Employment

Wholesalers were asked to provide an indication of the number of employees working in their ornamental fish related business. These responses have been used to estimate the level of employment generated in the wholesale sector of the ornamental fish industry. Employment estimates for the wholesale sector are summarised in Table 6.15.

Table 6.15 Employment in the ornamental fish industry, wholesale sector, 2006/07

Owner / Operator Paid Employees Total Employment Labour a Number Full Time 0.1 6.9 7.0 Part Time 0.1 8.9 8.9 Total b (no) 0.2 15.8 16.0 c Number of FTEs 0.1 13.5 13.6 a Owner/operator labour includes family assistance and other unpaid helpers. b Totals may not sum due to rounding. c Full time equivalents. Source: Survey responses and EconSearch analysis

The Australian Ornamental Fish Industry in 2006/07

The number of employees per operator ranged between 1 and almost 80, the average number of employees per operator was 16 (14 FTEs). The average wage (including on- costs) earned by employees in the wholesale sector was approximately $44,000 per annum9. Total employment generated by the wholesale sector (fish and accessories) in 2006/07 was estimated to be almost 400 FTEs10.

6.5 Investment in the Industry

Survey respondents were asked to provide an indication of the level of investment they had in the ornamental fish industry. Responses have been used to estimate the total investment in the industry by businesses in the wholesale/import sector. These estimates are summarised in Table 6.16.

Table 6.16 Investment in the ornamental fish industry, wholesale/import sector, 2006/07

Average Capital Investment Capital Item Coefficient of Variation a per Operator ($)

Aquarium Equipment 144,444 125% Sheds and Buildings 438,333 180% Motor Vehicles 25,000 89% Other b 21,900 293%

Total Investment 688,900 108% a Coefficient of variation is a relative measure of dispersion expressed as a percentage. It is calculated by dividing the standard deviation by the arithmetic mean. b ‘Other’ includes trailers, office equipment and other equipment. Source: Survey responses and EconSearch analysis.

Total investment in the industry by survey respondents ranged between $20,000 and more than $2.0 million. Average investment per operator was approximately $690,000, with significant investment in sheds and buildings and aquarium equipment (Table 16.16).

The coefficient of variation indicates that there is a significant degree of variation in the level of investment between businesses. This variability makes accurate estimation of total investment difficult. Based on consultation with key industry stakeholders total investment by the wholesale sector was estimated to be around $14 million.

6.6 Operating Expenditure

Survey respondents were asked to provide an estimate of the direct and administrative costs associated with operating their business in the industry. Average annual operating expenditure by wholesalers is summarised in Table 6.17.

9 Based on average employment of 13.6 FTEs per operator and average annual expenditure on wages of almost $593,000 per operator (including imputed unpaid wages). 10 The method used in estimating total employment is provided in Section 3.3.

The Australian Ornamental Fish Industry in 2006/07

Total annual operating expenditure relating to the ornamental fish industry (excluding stock purchases) by wholesaler ranged from almost $45,000 to just over $1.0 million. Average expenditure per operator was approximately $714,000. The most significant expenditure item was wages (including imputed unpaid wages), accounting for approximately 80 per cent of average expenditure by wholesalers.

Table 6.17 Operating expenditure relating to the ornamental fish industry, wholesale/import sector, 2006/07

Average Expenditure per Expenditure Item Coefficient of Variation a Operator ($)

Direct Costs Electricity 9,500 78% Wages 588,306 188% Repairs and Maintenance 1,900 137% Freight and Marketing 26,933 178% Imputed Unpaid Labour b 4,406 305% Other Direct Costs c 833 280% Total Direct Costs 640,211 40% Administrative Costs Insurance 11,225 111% Legal and Accounting 5,656 152% Communication 4,938 97% Interest and Borrowing Costs 47,000 200% Travel and Accommodation 22,000 130% Office Expenses 5,000 224% Other Administrative Costs d 1,538 257% Total Administrative Costs 73,839 186%

Total Operating Costs 714,050 55% a Coefficient of variation is a relative measure of dispersion expressed as a percentage. It is calculated by dividing the standard deviation by the arithmetic mean. b Information on the number of hours spent on sales and marketing, general labouring and management and administration by unpaid workers was collected as a part of the survey. The number of hours was multiplied by indicative wage rates to impute a wage for these workers. c ‘Other Direct Costs’ include consumables, chemicals and fuel. d ‘Other Administrative Costs’ include rates, rents and licences and permits. Source: Survey responses and EconSearch analysis.

6.7 Wholesale Sector Summary

The figure on the following page provides an illustration of the trade relationships between the wholesale sector and other sectors within the ornamental fish industry in Australia.

The Australian Ornamental Fish Industry in 2006/07

Figure 6.1 Summary of value of purchases and sales by the wholesale sector, 2006/07 a

Wholesale Sector Accessories Imports Exports

96% 1%

Fish Imports 72% Accessories Wholesaler Sales andProductDestination

99% General Retailer 6% Licensed Breeders 27% Specialist Retailer 92% Fish and Accessories Wholesaler <1% Wild Catch / Collection

Irregular Consumer

2% 0% Fish Wholesaler Unlicensed / Hobby Moderate Consumer Purchases and Product Source Purchases and Product Breeders

4% Serious Consumer

Australian Manufacturers Ornamental Fish Trade Accessories Trade a Percentage values denote the proportion of the total value of purchases (Tables 6.8 and 6.9) and sales (Tables 6.13 and 6.14) of ornamental fish and accessories. Source: Survey responses and EconSearch analysis.

7. Retail Sector

KEY FACTS: Australian Ornamental Fish Retail Sector Business/Sector Overview • The retail sector of the aquarium industry involves businesses that sell fish and accessories to consumers and hobbyists. Some specialist retailers have a permit and facilities required to import fish directly from overseas. • A total of 57 retailers participated in the consultation process. These retailers represent approximately 17 per cent of the estimated total retail sales of ornamental fish and other and 13 per cent of sales of accessories. Large retailers are thought be to overrepresented in the sample, accordingly comparison of sample total and industry would underestimate the total number of retail outlets in Australia. Purchases • Goldfish and Koi were the most significant freshwater species groups, accounting for 25 per cent of total value of freshwater species purchases in 2006/07. • The total value of ornamental fish purchases by the retail sector was approximately $41.5 million in 2006/07. The total number of ornamental fish purchased by the retail sector was approximately 37.6 million. • Approximately 64 per cent of retail purchases of ornamental fish were from the wholesale/importer sector. Sales and distribution • The total value of retail sales of ornamental fish Australia wide was estimated to be $129.1 million in 2006/07. The total number of ornamental fish sold through retailers was estimated to be approximately 33.9 million. • Sales of freshwater species accounted for 95 per cent of the total quantity of fish sold and 79 per cent of the total value. • Sales to hobbyists accounted for 99 per cent of total retail sales of ornamental fish. Employment • The total number of employees per operator ranged from 1 to 17. The average number of employees among survey respondents was 5 (4 FTEs). Total employment in the retail sector was estimated to be in excess of 1,500 FTEs. Investment • The most significant investment was in aquarium equipment, sheds and buildings, motor vehicles and computer and office equipment. • Average total investment by survey respondents was approximately $185,000. Significant capital items include aquarium equipment and sheds and buildings. Annual expenditure • Average annual operating expenditure (excluding stock) by retailers Australia wide was estimated to be approximately $200,000 per operator in 2006/07. • The most significant expenditure item for retailers was wages, accounting for 67 per cent of total operating expenditure in 2006/07 (including imputed unpaid wages).

Source: Sections 7.1 to 7.7.

A series of indicators are presented in the following sections to demonstrate the size and value of the retail sector of the Australian ornamental fish industry, including: • business/sector overview; • purchases; • sales and product destination; • employment; • investment in the industry; • operating expenditure; and • a sector summary

7.1 Business/Sector Overview

The retail sector of the aquarium industry involves businesses who sell fish and accessories to hobbyists. Retailers mostly purchase bred fish from wholesalers with some fish purchased directly from commercial breeders and wild catch collectors. Some specialist retailers have a permit and facilities required to import fish directly from overseas. Retailers predominately buy wild caught fish directly from collectors (Figure 4.2).

One recent industry study suggest that there are 879 registered aquarium and supply shops in Australia (BIS Scrapnel 2006). Based on this figure, the number of survey responses represents 6.5 per cent of the total number of retail outlets. Larger specialist retailers are thought to be overrepresented in the sample as these large retail outlets were generally recommended to be included in the sample by others in the industry.

A total of 57 retailers participated in the survey, 48 of these were specialist aquarium retailers and the remainder were general retailers with an aquarium section. A summary of the survey responses by state is provided in Table 7.1.

The original target for retail sector survey responses was 40 specialists and 28 general retailers. The number of responses from the retail sector is less than the original target to allow for a greater number of responses to be obtained from wholesalers, breeders and collectors. General retailers (pet shops) generally stocked only a small number of relatively low value species. Accordingly, greater focus was placed on obtaining completed survey responses from specialist retailers.

Table 7.1 Survey responses from the retail sector by state/territory

State/Territory Number of Responses Proportion of Total

New South Wales 14 25% Queensland 11 19% South Australia 11 19% Victoria 11 19% Western Australia 10 18% Other 0 0% a Total 57 100% a Totals may not sum due to rounding.

Survey respondents were asked to provide an indication of the ownership/operation arrangement for their business. A summary of the responses is provided in Table 7.2.

Table 7.2 Business ownership and operation in the retail sector

Type of Business Number of Reponses Proportion of Total

Family Owned 23 40% Partnership 3 5% Chain Store/Franchise 0 0% Sole Trader 17 30% Other/Unknown 14 25% a Total 57 100% a Totals may not sum due to rounding.

Approximately 70 per cent of survey respondents indicated that their business was either sole trader or family owned.

Survey respondents were asked how long they had owned/operated the business. Their responses are summarised in Table 7.3.

Table 7.3 Length of business ownership/operation in the retail sector a

Length of Business Ownership Proportion of Total Number of Reponses / Operation Respondents

Less than a year 1 2% 1 to less than 5 years 17 30% 5 to less than 10 years 12 21% 10 to less than 20 years 10 18% 20 to less than 30 years 4 7% 30 years or more 4 7% Unknown 9 16% a Total 57 100% a Totals may not sum due to rounding.

The length of business ownership ranged from less than 1 year to over 50 years (Table 7.3), average length of ownership was 11 years. Over 50 per cent of respondents indicated that they had been in business for less than 10 years. Just over 30 per cent of respondents indicated that they had been in business less than 5 years.

Almost 40 per cent of respondents indicated that they were a member of PIAA, the average length of membership was 14 years.

7.2 Purchases

The principal information used to estimate the value of ornamental fish purchases by the retail sector was collected in the survey process. Information was also sourced from the ABS on the value of ornamental fish imports into Australia. The estimated number and value of purchases of freshwater species by the retail sector for 2006/07 is summarised in Table 7.4.

Table 7.4 Purchases of freshwater species by the retailers, product source, 2006/07 a

Freshwater Species Purchases Product Source Quantity ('000) Value ($'000) Average Value ($/unit) Imported 7,176 3,736 0.52 Collector 0 0 - Breeder 9,034 6,636 0.73 Wholesaler 17,999 24,639 1.37 Hobby Breeder 1,568 2,382 1.52

Total 35,777 37,394 1.05 a The total number and value of fish purchased represents an estimated total for all retailers in the Australian ornamental fish industry. Source: Survey responses and EconSearch analysis.

In 2006/07, retailers purchased approximately 35.8 million freshwater fish at an average price of $1.05. The total value of these purchases was estimated to be $37.4 million (Table 7.4).

The value of freshwater species purchased by survey respondents ranged between zero and over $650,000. The average value of freshwater species purchased was approximately $90,000 per suveryed operator.

The estimated value of purchases by freshwater species group is summarised in Table 7.5.

Table 7.5 Purchases of freshwater species by the retail sector by species group, 2006/07

Freshwater Species Purchases Species Group Value ($'000) Proportion of Total (%) Australian Natives 1,053 3% Catfish 1,449 4% Goldfish and Koi 9,364 25% Barbs and Danios 1,945 5% Live Bearers 5,880 16% Discus and Cichlids 6,742 18% Tetras 6,215 17% Gouramis and Bettas 3,741 10% Others 1,003 3% 37,394 100% Total Source: Survey responses and EconSearch analysis.

Goldfish and Koi were the most significant freshwater species group accounting for around 20 per cent of the total value of freshwater purchases11. Live Bearers, Tetras and Catfish were also significant.

Retailers were asked to provide an indication of the typical source of purchases of particular species. Comments provided are summarised in Table 7.6.

11 Goldfish and Koi were classed as one species group; it is likely that this group is predominantly made up of common goldfish.

Table 7.6 Purchases of freshwater species by the retailers, product source by species group, 2006/07

Species Group Product Source Australian Natives Generally sourced directly from local breeder. Supply is limited and generally can’t keep up with demand. Catfish Some unlicensed breeding, particularly of illegal varieties. Goldfish and Koi Sourced from both wholesalers (imported fish) and licensed breeders. Live Bearers Majority sourced from wholesalers, small amount from hobby breeders. Discus and Cichlids Generally sourced from unlicensed hobby breeders. African and South American Cichlids generally sourced from hobby breeders. Source: Survey responses.

The estimated number and value of purchases of marine species by the retail sector for 2006/07 is summarised in Table 7.7.

Table 7.7 Purchases of marine species by the retail sector, product source, 2006/07 a

Marine Species Purchases Product Source Quantity ('000) Value ($'000) Average Value ($/unit) Imported 405 211 0.52 Collector 162 1,479 9.14 Breeder 417 337 0.81 Wholesaler 849 2,029 2.39 Hobby Breeder 5 11 2.39

Total 1,837 4,067 2.21 a The total number and value of fish purchased represents an estimated total for all retailers in the Australian ornamental fish industry. Source: Survey responses, ABS (by request) and EconSearch analysis.

The majority of marine species by retailers were either from wholesalers or directly from overseas. Retailers purchased an estimated 1.8 million marine fish, worth on average $2.21 each. The total value of these purchases was estimated to be around $4.1 million (Table 7.7).

The estimates presented in Table 7.4 and Table 7.7 indicate that the average unit value ($ per fish) of marine species was over twice that of freshwater species.

The value of marine species purchases by retailers who responded to the survey ranged from zero to almost $500,000. The average value of purchases per survey respondent was approximately $60,000.

Total ornamental fish purchases by the retail sector are summarised in Table 7.8. The total value of ornamental fish purchases by the retail sector was estimated to be $41.5 million in 2006/07. Approximately 64 per cent of the total value of these purchases were from wholesalers, 17 per cent from local breeders, 10 per cent were imported from overseas, 6 per cent were purchased from hobby breeders and the remaining 4 per cent were from collectors (wild caught).

Table 7.8 Purchases of ornamental fish by the retail sector, product source, 2006/07 a

Total Ornamental Fish Purchases Product Source Quantity ('000) Value ($'000) Average Value ($/unit) Imported 7,581 3,947 0.52 Collector 162 1,479 9.14 Breeder 9,451 6,973 0.74 Wholesaler 18,848 26,669 1.41 Hobby Breeder 1,572 2,393 1.52

Total 37,614 41,460 1.10 a The total number and value of fish purchased represents an estimated total for all retailers in the Australian ornamental fish industry. Source: Tables 7.4 and 7.7.

The total value of ornamental fish purchases by survey respondents ranged between approximately $10,000 to almost $750,000. The average value of ornamental fish purchases by retailers was almost $135,000.

In some jurisdictions breeders are not required to hold a licence or licensing requirements are not enforced. Consequently, there was some uncertainty among survey respondents regarding the classification of commercial breeders versus hobby breeders.

In addition to marine and freshwater finfish, there is significant trade in coral, live rock and aquatic plants. The estimated value of these ‘other’ purchases is summarised in Table 7.9.

Live rock and coral purchases by the retail sector were primarily sourced from collectors, while aquatic plants were sourced from plant breeders, hobby breeders and wholesalers.

The average value of purchases of ‘other’ products by survey respondents was almost $60,000. The value of these purchases ranged from zero to almost $250,000.

Table 7.9 Purchases of coral, live rock and aquatic plants by the retail sector, product source, 2006/07

Other Purchases a Product Source Value ($'000) Proportion of Total Imported 0 0% Collector 1,163 59% Breeder 161 8% Wholesaler 627 32% Hobby Breeder b 27 1%

Total 1,978 100% a ‘Other’ includes live rock, corals and aquatic plants. b Predominantly aquatic plants, some coral ‘buy backs’ where coral has grown too large for tank or not suitable. Source: Survey responses and EconSearch analysis.

Purchases of ornamental fish related accessories by the retail sector are summarised in Table 7.10.

Table 7.10 Purchases of ornamental fish accessories by the retail sector, product source, 2006/07

Accessories Purchases Product Source Value ($'000) Proportion of Total Imported 57,392 74% Locally Manufactured 5,586 7% Unknown 14,532 19%

Total 77,511 100% a The total value of ornamental fish related accessories purchased represents an estimated total for all retailers in the Australian ornamental fish industry. Source: Survey responses and EconSearch analysis.

Retailers indicated that the value of accessories purchases generally exceeds the amount spent on fish purchases. Based on the survey responses it was estimated that for every dollar spent by retailers on purchasing ornamental fish, approximately $2.06 was spent on ornamental fish related accessories.

The total value of accessories purchases by the retail sector was estimated to be over $77.5 million in 2006/07. Approximately 74 per cent of these purchases were of imported products with 7 per cent being sourced from Australian manufacturers.

7.3 Sales and Product Destination

The principal information used to estimate the value of ornamental fish sales by the retail sector was collected in the survey process. All estimates provided in the following tables represent an estimated total for all retailers in Australia.

The estimated quantity and value of sales of freshwater species by the retail sector and the product destination for 2006/07 are summarised in Table 7.11.

Table 7.11 Sales of freshwater species by the retail sector, product destination, 2006/07

Freshwater Species Sales Product Destination Quantity ('000) b Value ($'000) Average Value ($/unit) Export 0 0 - Wholesale 0 0 - Retail 155 368 2.37 Hobbyist - Serious 12,276 36,799 3.00 Moderate 14,686 47,272 3.22 Irregular 5,081 17,424 3.43 Total 32,199 101,864 3.16 a The total quantity and value of ornamental fish sales represents an estimated total for all retailers in the Australian ornamental fish industry. b Based on the assumption that the mortality rate for freshwater species is approximately 10 per cent. Source: Survey responses and EconSearch analysis.

Retailers Australia wide sold an estimated 32.2 million freshwater fish at an average price of $3.16. The total value of these sales was around $101.9 million. Approximately 99 per cent of these sales were to hobbyists with the remainder being to other retail outlets (Table 7.11).

Survey respondents were asked to provide an indication of the total value of their sales by species group. The estimated value of sales by freshwater species group, based on the survey responses, is summarised in Table 7.12. The average value of freshwater species sales by survey respondents from the retail sector was approximately $260,000.

Table 7.12 Sales of freshwater species by the retail sector, species group, 2006/07

Freshwater Species Sales Species Group Value ($'000) Proportion of Total (%) Australian Natives 2,515 2% Catfish 2,942 3% Goldfish and Koi 31,828 31% Barbs and Danios 4,433 4% Live Bearers 12,566 12% Discus and Cichlids 20,761 20% Tetras 13,627 13% Gouramis and Bettas 8,238 8% Others 4,953 5% Total 101,864 100% Source: Survey responses and EconSearch analysis.

Based on survey responses Goldfish and Koi account for approximately 30 per cent of the total value of freshwater species sales. Discus and Cichlids were also significant accounting for around 20 per cent of total sales (Table 7.12).

Retailers were asked to provide comments on the typical destination of particular species groups. Their comments are summarised in Table 7.13.

Table 7.13 Sales of freshwater species by the retail sector, product destination by species, 2006/07

Species Group Product Source Australian Natives Serious collectors. Significant demand/interest in native species, proportion of total sales of native species could be larger if there was sufficient supply. Catfish Serious collectors. Goldfish and Koi For general aquaria and ponds. Discus and Cichlids Serious hobbyists.

Source: Survey responses.

The estimated volume and value of retail sales of marine species by product destination is detailed in Table 7.14.

Table 7.14 Sales of marine species by the retail sector, product destination, 2006/07

Marine Species Sales Product Destination Quantity ('000) b Value ($'000) Average Value ($/unit) Export 0 0 - Wholesale 0 0 - Retail 0 0 - Hobbyist Serious 1,113 19,285 17.32 Moderate 493 7,023 14.25 Irregular 63 974 15.48

Total 1,669 27,282 16.35 a The total quantity and value of ornamental fish sales represents an estimated total for all retailers in the Australian ornamental fish industry. b Based on the assumption that the mortality rate for marine species is approximately 10 per cent. Source: Survey responses and EconSearch analysis.

Retailers sold and estimated 1.7 million marine fish in 2007/06, worth approximately $16.35 each. The total value of retail sales of marine species was estimated to be approximately $27.3 million. The average value of retail sales of marine species was approximately $135,000 per survey respondent. All sales of marine species were to hobbyists, in terms of value 71 per cent to serious hobbyists, 26 per cent to moderate hobbyists and the remaining 4 per cent to irregular hobbyists.

Total ornamental fish sales (freshwater and marine species) by the retail sector are summarised in Table 7.15.

Table 7.15 Sales of ornamental fish by the retail sector, product destination, 2006/07 a

Total Ornamental Fish Sales Product Destination Quantity ('000) Value ($'000) Average Value ($/unit) Export 0 0 - Wholesale 0 0 - Retail 155 368 2.37 Hobbyist Serious 13,390 56,084 4.19 Moderate 15,179 54,295 3.58 Irregular 5,144 18,399 3.58

Total 33,868 129,146 3.81 a The total quantity and value of ornamental fish sales represents an estimated total for all retailers in the Australian ornamental fish industry. Source: Tables 7.11 and 7.14..

The total value of retail sales of ornamental fish in Australia was estimated to be approximately $129.1 million in 2006/07. The total number of fish sold by retailers was approximately 33.9 million, with an average value of $3.81 per fish. Sales of freshwater species accounted for approximately 95 per cent of the total quantity of fish sold and 79 per cent of the total value. Sale of marine species accounted for approximately 5 per cent of the total quantity of fish sold and 21 per cent of the total value (Tables 7.11, 7.14 and 7.15).

The estimated value of retail sales of ‘other’ products, namely, live rock, coral and aquatic plants, is summarised in Table 7.16.

Table 7.16 Sales of ‘other’ products by the retail sector, product destination, 2006/07 a

Other' Sales Product Destination Value ($'000) Proportion of Total Export 0 0% Wholesale 0 0% Retail 0 0% Hobbyist Serious 2,667 65% Moderate 1,249 30% Irregular 207 5%

Total 4,123 100% a The total quantity and value of sales represents an estimated total for all retailers in the Australian ornamental fish industry. Source: Survey responses and EconSearch analysis.

The total value of retail sales of live rock, coral and aquatic plants in Australia was estimated to be approximately $4.1 million in 2006/07 (Table 7.16).

The estimated value of retail sales of ornamental fish related accessories is summarised in Table 7.17.

Based on the survey responses, for every dollar of ornamental fish sales, retailers sell approximately $1.32 worth of accessories. Total sales of ornamental fish related accessories by the retail sector was estimated to be approximately $170.6 million in 2006/07 (Table 7.17).

Table 7.17 Sales of ornamental fish related accessories by the retail sector, product destination, 2006/07 a

Accessories Sales Product Destination Value ($'000) Proportion of Total Export 0 0% Wholesale 0 0% Retail 0 0% Hobbyist Serious 84,977 50% Moderate 57,204 34% Irregular 28,435 17%

Total 170,615 100% a The total value of ornamental fish related accessories sales represents an estimated total for all retailers in the Australian ornamental fish industry. Source: Survey responses and EconSearch analysis.

7.4 Employment

Retailers were asked to provide an indication of the number of employees working in their ornamental fish related business. These responses have been used to estimate the average level of employment generated in the retail sector of the ornamental fish industry. Employment estimates for the retail sector are summarised in Table 7.18.

Table 7.18 Employment in the ornamental fish industry, retail sector, 2006/07

Owner / Operator Paid Employees Total Employment Labour a Number Full Time 0.6 1.7 2.3 Part Time 0.2 2.5 2.7 Total b (no) 0.8 4.1 4.9 c Number of FTEs 0.7 3.3 4.0 a Owner/operator labour includes family assistance and other unpaid helpers. b Totals may not sum due to rounding. c Full time equivalents. Source: Survey responses and EconSearch analysis

The number of employees per operator ranged between 1 and 17, the average number of employees per operator was 5 (4 FTEs). Based on the survey responses and the estimated total value of retail sales, total employment generated by the retail sector in 2006/07 was estimated to be in excess of 1,500 FTEs12. The estimated average annual wage (including on costs) earned by retail employees was approximately $39,000 per FTE (Tables 7.18 and 7.20)13.

7.5 Investment in the Industry

Average capital investment by the retail sector, for 2006/07, is summarised in Table 7.19.

Table 7.19 Investment in the ornamental fish industry, retail sector, 2006/07

Average Capital Investment Capital Item Coefficient of Variation a per Operator ($)

Aquarium Equipment 98,782 128% Sheds and Buildings 72,074 276% Motor Vehicles 11,723 162% Office Equipment 2,444 344% Other Equipment b 1,832 297%

Total Investment 184,864 136% a Coefficient of variation is a relative measure of dispersion expressed as a percentage. It is calculated by dividing the standard deviation by the arithmetic mean. b ‘Other’ includes trailers and other equipment used in the ornamental fish industry. Source: Survey responses and EconSearch analysis.

Total investment in the industry by survey respondents ranged between $4,000 and just over $1.2 million. Average investment per operator was approximately $185,000. The most significant investment by retailers was in aquarium equipment (tanks, lights, filters, pumps etc.) and sheds and buildings. There was a significant degree of variability in the level of investment between respondents making estimation of the sector total difficult. This is to be expected as the size and level of sophistication of enterprises varied greatly between respondents (Table 7.19).

7.6 Operating Expenditure

Survey respondents were asked to provide an estimate of the direct and administrative costs associated with operating their business in the industry. These estimates were used to calculate an average annual operating expenditure by businesses in the retail sector of the ornamental fish industry. Estimates of operating expenditure by the retail sector in 2006/07 are summarised in Table 7.20.

12 Method for calculating total employment is provided in Section 3.3. 13 Based on an average of 4.0 FTE employees per operator with an annual wages cost of $155,000 (including imputed wages for unpaid labour).

Table 7.20 Operating expenditure relating to the ornamental fish industry, retail sector, 2006/07

Average Expenditure per Expenditure Item Coefficient of Variation a Operator ($)

Direct Costs Consumables 4,644 173% Electricity 10,945 66% Wages 110,645 138% Repairs and Maintenance 3,343 137% Freight and Marketing 10,003 178% Imputed Unpaid Wages b 44,244 99% Other Direct Costs c 1,414 181% Total Direct Costs 159,818 99% Adminisitrative Costs Insurance 3,573 114% Communication 2,520 115% Rates 2,604 248% Rent 31,649 118% Interest and Borrowing Costs 2,993 224% Travel and Accommodation 1,900 262% Other Administrative Costs d 2,519 153% Total Administrative Costs 46,331 100%

Total Operating Costs 198,636 93% a Coefficient of variation is a relative measure of dispersion expressed as a percentage. It is calculated by dividing the standard deviation by the arithmetic mean. b Information on the number of hours spent on sales and marketing, general labouring and management and administration by unpaid workers was collected as a part of the survey. The number of hours was multiplied by indicative wage rates to impute a wage for these workers. c ‘Other Direct Costs’ include chemicals, fuel and packaging. d ‘Other Administrative Costs’ include professional fees, leasing charges, memberships and licenses. Source: Survey responses and EconSearch analysis.

Total annual operating expenditure relating to the ornamental fish industry (excluding stock/fish purchases) by retailers ranged from approximately $13,000 to almost $850,000. Average expenditure per operator was almost $200,000. The most significant expenditure item was wages, accounting for approximately 67 per cent of total expenditure (including imputed unpaid wages).

7.7 Retail Sector Summary

Figure 7.1 on the following page provides an overview of the relationships that exist between the retail sector and other sectors of the ornamental fish industry.

Figure 7.1 Summary of value of purchases and sales for the retail sector, 2006/07 a Retail Sector Fish Imports 14% 10%

17% Irregular Hobbyist 17% Commercial Breeders 5%

8% Specialist Retailer Sales andProductDestination

4% Wild Catch / Collection 42% 59% Moderate Hobbyist 34% 6% <1% Hobby Breeders 1% 30%

32% Wholesalers General Retailer 74% 43%

64% 50% Serious Hobbyist Local Manufacturers Purchases and Product Source Purchases and Product 7% 65%

Unknown 19% Ornamental Fish Trade Accessories Trade ‘Other’ Trade a Percentage values denote the proportion of the total value of purchases (Tables 7.8 to 7.10) and sales (Table 7.11 to 7.16) of ornamental fish and accessories. Source: Survey responses and EconSearch analysis.

8. Hobbyists and Hobby Organisations

KEY FACTS: Australian Ornamental Fish Hobbyists & Hobby Organisations Overview • Survey respondents included individuals who breed and/or keep fish as a hobby and hobby organisations involved in the ornamental fish industry in Australia. Purchases and Product Sources • Survey responses indicated that fish are usually purchased from other hobbyists (who breed stock) or from trade outlets (retailers). • Purchases of fish and accessories from unregulated sources (e.g. other hobbyists, auctions or online) are summarised in Section 9. • The total value of ornamental fish purchased from regulated sources (commercial breeders, collectors, wholesalers and retailers) was estimated to be approximately $129.1 million. • Freshwater species accounted for an estimated 79 per cent of the total value of ornamental fish purchased by hobbyists. Hobbyist Types • Hobbyists have been classified according to three subcategories, irregular, moderate and serious, which are based on annual level of expenditure. • Survey responses indicated that the market for freshwater species is dominated by irregular to moderate hobbyists. The market for marine species is made up of more serious hobbyists.

Source: Sections 8.1 to 8.3

8.1 Overview

The survey respondents included individuals who breed and/or keep fish as a hobby and hobby organisations involved in the ornamental fish industry in Australia. A summary of the number of responses by state/territory is provided in Table 8.1.

A total of nine responses were obtained from hobbyists and hobby organisations (Table 8.1).

Table 8.1 Survey responses from hobbyists and hobby organisations by state/territory

State/Territory Number of Responses Proportion of Total

New South Wales 1 11% Queensland 1 11% South Australia 1 11% Victoria 2 22% Western Australia 3 33% Other 1 11%

Total 9 100%

8.2 Purchases and Product Sources

Fish are usually purchased from other hobbyists (who bred stock) or from trade outlets (import, wild caught or Australian bred). Some fish are sourced from the wild – usually in small numbers and only if species can legally be collected from the wild. Many hobbyists purchase fish from both other hobbyists and retailers. Hobbyists also purchase accessories (food, chemical, electronic equipment, etc) from retail outlets. There are a large number of online forums and outlets that sell ornamental fish and related accessories.

Purchases relating to the ornamental fish industry by hobbyists from regulated sources (commercial breeders, licensed collectors, wholesalers/importers and retailers) are summarised in Tables 8.2 to 8.4. Unregulated trade is likely to make up a significant proportion of total purchases by hobbyists and is discussed further in Section 9.

Table 8.2 Purchases of ornamental fish by hobbyists, product source, 2006/07

Ornamental Fish Purchases Product Source Quantity ('000) Value ($'000) Average Value ($/unit) Imported 0 0 - Collector 42 315 7.41 Breeder 33 29 0.86 Wholesaler 0 0 - Retailer 33,712 128,777 3.82 a Total 33,788 129,121 3.82 a Totals may not sum due to rounding. Source: Survey responses and EconSearch analysis reported in Sections 5 to 7.

Based on the survey based estimates of the total value of regulated sales (Sections 5 to 7) the value of ornamental fish purchases from regulated sources by hobbyists was estimated to be $129.1 million. Freshwater species account for approximately 95 per cent of the total quantity and 79 per cent of the total value of ornamental fish purchased by hobbyists. In addition to these purchases it is likely that a large number of fish are traded through unregulated sources (Section 9).

Table 8.3 Purchases of other products by hobbyists, product source, 2006/07 a

'Other' Purchases Product Source Value ($'000) Proportion of Total Imported 0 0% Collector 294 7% Breeder 52 1% Wholesaler 0 0% Retailer 4,123 92% b Total 4,469 100% a Other includes live rock, coral and aquatic plants. b Totals may not sum due to rounding. Source: Survey responses and EconSearch analysis reported in Sections 5 to 7.

The value of live rock, coral and aquatic plant purchases by hobbyists was estimated to be approximately $4.5 million. Hobbyists purchase over 90 per cent of these products from retailers but also source some products directly from collectors and breeders (Table 8.3).

Table 8.4 Purchases of ornamental fish related accessories by hobbyists, product source, 2006/07

Accessories Purchases Product Source Value ($'000) Proportion of Total Imported 0 0% Collector 0 0% Breeder 0 0% Wholesaler 852 0% Retailer 170,615 100% a Total 171,467 100% a Totals may not sum due to rounding. Source: Survey responses and EconSearch analysis reported in Sections 5 to 7.

Hobbyists spent an estimated $171.5 million on ornamental fish related accessories in 2006/07. The majority of these purchases were from retail outlets and a small amount from wholesalers. In addition to purchases from wholesalers and retailers, there is significant unregulated trade in accessories through online marketplace websites and forums. The value of purchases of accessories also excludes purchases from non- industry retailers such as variety stores and supermarkets.

8.3 Hobbyist Types

Hobbyists have been classified according to the following three subcategories: • Serious: Person who spends significant time and expenditure (>$1,000/yr) on aquatic animals. Likely to be involved in hobby organisations and regularly show their animals. They may be involved in the selling/swapping/exchange of aquatic animals for accessories, feeds or other animals without a profit focus. • Moderate: A moderate level of annual expenditure (less than $1,000 but greater than $100) in animals, however no sales made of aquatic animals or accessories. These can include businesses which display aquatic animals for their customer or staff enjoyment, or individuals involved for own or family enjoyment. • Irregular: Occasional purchases of fish, total expenditure less than $100/year.

Figures 8.1 to 8.6 summarise the breakdown of the different types of hobbyists for the following product groupings: • freshwater species; • marine species; • total ornamental fish; • other (live rock, coral and aquatic plants) and • accessories.

Irregular customers accounted for 17 per cent of the total value of purchases of freshwater species. Moderate customers accounted for 47 per cent of total freshwater purchases. Serious hobbyists accounted for 36 per cent of total freshwater species purchases (Figure 8.1).

Serious and moderate hobbyists accounted for over 95 per cent of total marine species purchases (Figure 8.2).

Irregular customers accounted for 14 per cent of the total value of ornamental fish purchases. Moderate customers accounted for 42 per cent of the total value of ornamental fish sales. Serious customers accounted for 44 per cent of the total value of ornamental fish sales (Figure 8.3).

Figure 8.1 Freshwater species purchases by hobbyist type, 2006/07

Total Freshwater Species Purchases = $101.5 million

Irregular Serious 17% 36%

Moderate 47%

Source: Survey responses and EconSearch analysis.

Figure 8.2 Marine species purchases by hobbyist type, 2006/07

Total Marine Species Purchases = $27.6 million

Irregular 4% Moderate 26%

Serious 70%

Source: Survey responses and EconSearch analysis.

Figure 8.3 Ornamental fish purchases (all species) by hobbyist type, 2006/07

Total Ornamental Fish Purchases = $129.1 million

Irregular Serious 14% 44%

Moderate 42%

Source: Survey responses and EconSearch analysis.

Moderate and serious hobbyists accounted for 60 per cent and 34 per cent, respectively, of ‘other’ purchases (live rock, coral and aquatic plants). Purchases by irregular hobbyists accounted for only a small proportion of the total value (Figure 8.4).

Overall, serious hobbyists account for 47 per cent, moderate hobbyists account for 37 per cent and irregular hobbyists 16 per cent of the total value of purchases relating to ornamental fish (Figure 8.6).

In terms of the number of individuals in each expenditure group, it is likely that the largest number of hobbyists would be in the irregular to moderate category.

Figure 8.4 Other purchases by hobbyist type, 2006/07 a

Total Other Purchases = $4.5 million

Irregular 6%

Moderate 34%

Serious 60%

a ‘Other’ includes coral, live rock and aquatic plants. Source: Survey responses and EconSearch analysis.

Figure 8.5 Accessories purchases by hobbyist type, 2006/07

Total Accessories Purchases = $171.5 million

Serious Irregular 49% 17%

Moderate 34%

Source: Survey responses and EconSearch analysis.

Figure 8.6 Total ornamental fish related purchases by hobbyist type, 2006/07

Total Purchases = $305.1 million

Irregular Serious 16% 47%

Moderate 37%

Source: Survey responses and EconSearch analysis.

9. Unregulated Trade

KEY FACTS: Unregulated Trade in Ornamental Fish Industy

Overview • Unregulated trade includes trade (sale and swap) of aquatic animals without required licences or permits by breeders and hobbyists. Purchases from Unregulated Sources • Almost 40 per cent of retailers surveyed indicated that they sourced a small proportion (average 6 per cent) of their ornamental fish purchases from unregulated sources, predominantly hobby breeders. • A number of hobbyists who participated in the survey indicated that they purchase fish from other hobbyists including through organised fish auctions. Sources of Unregulated Trade • Sources of unregulated trade include the following: o hobby breeders; o organized auctions (e.g. Cichlid auctions); o online forums and trade sites; o newspaper classifieds; o swapping between hobbyists; and o swapping and store credit between hobby breeders, retailers and wholesalers. Species Involved • Hobby breeders are important in providing fish to the aquarium trade as many of the species they breed are low demand species that are unsuitable for commercial aquaculture (not profitable) or require too much time and effort for commercial operations. • Species involved in unregulated trade include Koi, Cichlids, Livebearers and Catfish. Issues • From an industry management perspective, unregulated movement of fish is an important issue. Industry regulators and managers have no way of tracing products in the event of a disease or pest problem. • Unregulated trade is important in providing species that are unsuitable for commercial aquaculture. • Breeding of fish is an integral part of the hobby for many hobbyists. There needs to be a mechanism where these fish can be disposed of legally.

Source: Sections 9.1 to 9.6

9.1 Overview

Unregulated trade includes trade (sale and swap) of aquatic animals without required licences or permits.

Each survey participant (from all sectors) was asked a series of questions relating to unregulated trade in the ornamental fish industry. The questions related to the following: • purchases from unregulated sources; • sources of unregulated trade; • customer’s fish sourced from unregulated trade; • main species involved; and • comments on the size and value of unregulated trade.

Responses to these questions are summarised in the following sections.

9.2 Purchases from Unregulated Sources

Survey participants were asked what proportion of their purchases were sourced from unregulated trade. Almost 40 per cent of retailers surveyed indicated that they sourced a small proportion of their ornamental fish purchases from unregulated sources, namely hobby breeders. A number of hobbyists who participated in the survey indicated that they purchased fish from other hobbyists including through organised fish auctions.

9.3 Sources of Trade

Survey respondents were asked what they thought were the sources of unregulated trade in fish and accessories. Responses included: • hobby breeders; • organized auctions (e.g. Cichlid auctions); • online forums and trade sites; • newspaper classifieds; • swapping between hobbyists; and • swapping and store credit between hobby breeders, retailers and wholesalers.

Hobby Breeders

As the regulations and licence requirements relating to aquaculture of ornamental fish vary from state to state, it is difficult to define what is licensed and unlicensed breeding. In all states and territories a framework exists for licensing aquaculture operations and the large commercial breeders generally hold the appropriate licence.

The scale of hobby breeding operations range from individuals with one or two aquariums to those who operate commercial scale aquaculture operations.

Retailers source an estimated 6 per cent of their ornamental fish purchases from hobby breeders (Table 7.4).

Auctions

There are a large number of clubs and groups that periodically hold organised fish auctions. According to information gathered from survey participants, attendance at the auctions is predominantly made up of collectors and hobbyists. Some retailers indicated that they attended auctions to purchased fish.

Online Forums, Trade Sites and Classifieds

There are several websites that offer classified listings and fora on which individuals and businesses list fish and accessories for sale. Although these websites provide a useful forum for discussion about the hobby, listings on the sites often include illegal species (this is discussed further in Chapter 10).

In addition to online listings, fish and accessories are often listed in newspaper classifieds. Forum

Swapping Between Hobbyists

Many of the survey respondents indicated that the amount of trades and swaps between hobbyists has increased in recent years. Swapping between hobbyists is generally viewed as a good sign for the industry. Swapping and trade provides an indication that there is a strong interest in the hobby.

Swapping and Store Credit Between Hobby Breeders, Retailers and Wholesalers

Many retailers and wholesalers indicated that they sometimes offer store credit for fish. This generally occurs when the hobbyist has bred some fish and does not want to keep them or when a fish has outgrown its tank.

9.4 Species Involved

Hobby breeders are important in providing fish to the aquarium trade as many of the species they breed are not profitable for commercial aquaculture, due to insufficient demand, or require too much time and effort for commercial operations.

Survey participants were asked to comment on the species involved in unregulated trade and the source of the trade. These comments are summarised in Table 9.1.

Table 9.1 Unregulated trade in ornamental fish by species group Species Group Comments

Catfish Hobby breeders of rare species. A large number are traded through online forums and classifieds. - Bristlenose Catfish

Goldfish & Koi Significant amount of trade between members of Koi societies.

Serious hobbyists breed Koi that are of higher quality (in terms of desirable characteristics) than commercial breeders. Commercial breeders sell them for $5 - $20 each while hobbyist sell them for $50-$100 each.

Some more specialised species of goldfish are bred by hobbyists and sold online.

Barbs and Danios Some sold through online forums and classifieds.

Live Bearers Significant number as they are easy to keep and breed and there is a large market for certain species. Often sold or exchanged through retail outlets.

Discus and Cichlids Significant number are bred and traded among hobbyists, particularly rare varieties. - Midas Cichlid Cichlid societies throughout Australia hold auctions on a - African Cichlids regular basis.

Gouramis and Bettas Generally not bred by hobbyists, local breeders cannot complete with inexpensive imported product. - Fighting Fish Some online sales through forums and classifieds.

- Saratoga Some online sales through forums and classifieds.

9.5 Value of Unregulated Trade

Survey participants were asked to provide comments on the size and value of unregulated trade in ornamental fish. The degree of variability between responses was significant. Some respondents indicated that unregulated trade would likely account for only 5 per cent of the total value of trade in ornamental fish. Others thought that the level of unregulated trade was equivalent to that of regulated trade.

The degree of variability in respondents estimates of the value of unregulated trade (compared to regulated trade) could be the result of a number of factors, namely: • uncertainty regarding definition of regulated and unregulated trade used in the study; • uncertainty regarding regulations pertaining to the breeding and/or keeping of ornamental fish; and • level of involvement in and knowledge of the industry.

9.6 Issues Associated with Unregulated Trade

From an industry management perspective unregulated trade in fish is an important issue. Even in states where licences are required, unregulated (unlicensed) commercial scale aquaculture operations exist. Hobby breeding and swapping/sales results in translocation of both exotic and native species. Industry managers have no way of tracing this product in the event of a disease or pest problem.

Recommendations for the management control of this sector (e.g. licences for all operations selling fish above certain levels or utilising over a certain volume of water capacity) are discussed in DAFF (2007).

Many people who participated in the industry survey indicated that that the swapping of fish between hobbyists, or even with retailers, should not be regulated. Rather, information on issues of translocation, biosecurity and health management should be provided through hobbyist clubs, trade press and retailers.

Breeding of fish is integral part of the hobby for many hobbyists and, for this reason, there needs to be a mechanism whereby these fish can be disposed of legally.

10. Illegal Trade

KEY FACTS: Illegal Trade in the Ornamental Fish Industry Overview • Illegal trade includes holding or sale of species on the Noxious Fish list and holding or sale of species that are not included on the allowable list for each state/territory (species vary between states). • The Grey List includes species that were previously allowed to be imported (before quarantine was imposed in 1984) and were not included on the allowable import list. Trade in such species still exists within the hobby sector (this list was prepared by the Ornamental Fish Consultative Committee for the Natural Resource Management Ministerial Council). • Survey respondents indicated that a limited amount of illegal trade in noxious or prohibited species occurs due to a lack of education and information such trade is not condoned by the wider industry. • There are a number of motivations behind illegal trade including profit, as illegal species tend to have a high value due to their rarity; the cultural significance of some species (eg. Arowanas) is also important. Sources of Trade • Based on information gathered in the survey, the following sources of illegal trade were identified: o retailers; o wholesalers; o online forums and classifieds; o importers; and o fish dealers. • No agreement on the estimated size of illegal trade in Australia, estimates ranged from 5 per cent to 95 per cent of legal trade. Issues • From an industry management perspective this illegal trade of fish is an important issue. Industry regulators and managers have no way of tracing products in the event of a disease or pest problem.

10.1 Overview

Illegal trade includes holding or sale of species on the Noxious Fish list and holding or sale of species that are not included on the allowable list for each state/territory (species vary between states).

The Grey List includes species that were previously allowed to be imported (before quarantine was imposed in 1984) and were not included on the allowable import list. Trade of such species still exists within the hobby sector (this list was prepared by the by the Ornamental Fish Consultative Committee for the Natural Resource Management Ministerial Council).

Over many decades between 8 and 10 million ornamental fish per annum have been imported into Australia (Love et al. 2004). Recently numbers of imports have been in excess of 15 million per year.

Whittington and Chong (2007) reported that there are 1,181 exotic fish species known to have been present in Australia during the past four decades and of those, 784 have been on an AQIS list of species approved for importation. Of these 784 species, 303 have been removed from the existing permitted species list at some point since 1963 (McNee 2002).

However, 199 species are present despite having been assessed as not permitted for import with a further 198 species present that have not been assessed; these 397 species may have been smuggled into Australia or were present prior to the commencement of the assessment process (McNee 2002).

For freshwater ecosystems a comprehensive review listed 34 alien fish species from eight families with established breeding populations in waterways in Australia (Lintermans 2004). Twenty-two of these species representing five families became established after introduction through the ornamental fish trade, affecting all States and Territories of Australia. The rate of introduction of new species has been similar each decade since about 1950 (Whittington and Chong 2007).

An increase in the level of information and education available and a decrease in the ambiguity of regulations would have a positive impact on the level of illegal trade. Many hobbyists do not even consider that a fish may be illegal, they assume that if it is available for sale then it must be legal.

Survey respondents indicated that a limited amount of illegal trade in noxious or prohibited species occurs due to a lack of education and information. However, this trade is generally is not condoned by the wider industry.

There are a number of motivations behind illegal trade including profit, as illegal species tend to have a high value due to their rarity. The cultural significance of some species (e.g. Arowanas) is also important.

10.2 Sources of Trade

Based on information gathered in the survey the following sources of illegal trade were identified: • retailers; • importers • wholesalers; • online forums and auction sites; and • fish dealers.

Retailers

Retailers who purchase from a national wholesaler are often unaware that some species on the wholesale list may be illegal in their state or territory. Many retailers were unclear on the rules and regulations that govern the industry. There was some confusion among survey respondents as to whether it was legal to sell fish that were not on the legal import list if they were sourced within Australia. Possession of illegally imported species and their progeny is prohibited under the Environmental Protection and Biodiversity Act (1999). It is not prohibited to possess a fish that was not imported illegally or one that is the progeny of a lawfully imported fish (Environmental Protection and Biodiversity Act 1999).

Importers

Despite strict quarantine laws and the threat of serious penalties, information gathered in the survey suggests that importing of illegal species does occur. For ornamental fish breeders and collectors, illegal imports are of great concern due to the associated disease risks.

Wholesalers

As wholesalers distribute fish nationally and the laws regarding permissible species vary from state to state, some wholesalers inadvertently undertake illegal sales.

Generally wholesalers and importers avoid illegal species and do not deliberately import these species from overseas. The threat of loss of their quarantine licence makes illegal imports too great a risk.

Online Forums and Auction Sites

Many illegal species are listed for sale on online forums and auction sites. Auction sites also provide an outlet for sale of illegally imported electronic equipment (e.g. aquarium lights and filters). Many of these items do not meet Australian standards and are potentially dangerous.

Fish Dealers

Some retailers and hobbyists indicated that it was possible to source many illegal species through fish dealers. These dealers act as a broker and source the species requested for the buyer and charge a commission on the sale.

10.3 Species Involved

Species that are traded illegally and comments on the source of trade are provided in Table 10.1.

Table 10.1 Ornamental fish species traded illegally in Australia Species Comments Koi Only illegal in some states therefore possible to purchase them legally from NSW or WA and transport them interstate (illegally). Catfish (certain species) Available online and through some retailers - Red Tail Catfish - Shovel Nosed Catfish Cichlids (certain species) South American species Tilapia Listed online Arowanas Available online and through some retailers Lungfish Online and through fish dealers Giant Gouramis Legal to keep them but illegal to sell them. Aquariums have them on display (legally) but this results in illegal sales. Sharks Online and through fish brokers Mosquito fish Sold as feeder fish Alligator Gars Listed online African Lungfish Online and through fish dealers Flowerhorn Not on allowable import list but are prolific. Marine species and Corals Unlicensed collectors source them from the wild and sell them. - Tinfoil Barbs Online Piranha Online and through fish brokers

11. Ornamental Fish Imports

KEY FACTS: Australian Ornamental Fish Imports

Import data were available for the following commodities: • live ornamental fish; and • corals (dry).

Live Ornamental Fish Imports • Over the five years from 2002/03 to 2006/07 the average value of ornamental fish imports decreased from $0.36 per fish to $0.30 per fish. • The total number of ornamental fish imported into Australia from overseas increased from 10.6 million in 2002/03 to 17.7 million in 2006/07. • The total value of ornamental fish imports increased from $3.9 million to $5.3 million between 2002/03 to 2006/07. • The majority of ornamental fish (in terms of volume and value) were imported into Victoria and Queensland. • In 2006/07, the most significant countries of import origin, in terms of quantity and value of ornamental fish imports, were Indonesia, Singapore, China and Malaysia.

Coral and Other Invertebrate Imports • Given the current bio-security restrictions on the importation of live corals, live rock and invertebrates, it is likely that the coral imports reported are used for decoration and display purposes only. • The average value of coral imports increased from $6.64 per kg in 2002/03 to $7.64 in 2004/05 but has decreased in subsequent years. • The total quantity of coral imported into Australia increased from 57 tonnes in 2002/03 to 103 tonnes in 2006/07. • The total value of coral imports increased from $381,000 to $560,000 between 2002/03 and 2006/07. • The most significant countries of import origin were the Solomon Islands, Japan, France and Vietnam.

11.1 Live Ornamental Fish Imports

Figures 10.1 to 10.5 and the associated data in Appendix 4 provide an historical breakdown of total ornamental fish imports into Australia, by state of final destination and country of origin, for the period 2002/03 to 2006/07.

Over the five years the average value per fish decreased slightly, from $0.36 in 2002/03 to $0.30 in 2006/07 (Figure 11.1).

Figure 11.1 Average price of ornamental fish imports, 2002/03 to 2006/07

$0.40

$0.35

$0.30

$0.25

$0.20

$0.15

$0.10

Average Price Fish per ($/fish) $0.05

$0.00

07 6/ 03/04 04/05 005/06 2002/03 20 20 2 200

Source: ABS (by request)

The total number of fish imported into Australia increased from 10.6 million in 2002/03 to 17.7 million in 2006/07 (Figure 11.2). Over the same period, the total value of ornamental fish imports increased from $3.9 million to $5.3 million (Figure 11.3).

Imports into Victoria accounted for the majority of ornamental fish imports into Australia, although the number of fish being imported into Queensland has increased dramatically over the last five years. In 2006/07, imports into Victoria accounted for 42 per cent of the total number of fish imported and imports into Queensland accounted for 41 per cent (Figure 11.2).

In 2006/07, imports into Queensland accounted for 38 per cent of the total value of live ornamental fish imported into Australia and imports into Victoria accounted for 34 per cent (Figure 11.3).

The most significant proportion of imports, in terms of number and value, are into Victoria and Queensland. This reflects the locations of Australia’s largest ornamental fish importers. A significant number of fish imported into Victoria and Queensland are sold to retailers in other states where the retail market for ornamental fish is significant (e.g. New South Wales).

Over the period 2002/03 to 2006/07 the most significant countries of import origin were Singapore, Indonesia, China and Malaysia, accounting on average for 29, 24, 13 and 12 per cent, respectively, of the total quantity of ornamental fish imported into Australia. In 2006/07, the most significant import countries of origin by volume and value were Indonesia (35 per cent of volume, 23 per cent value), Singapore (25 per cent of volume, 28 per cent of value), China (11 per cent of volume, 8 per cent of value) and Malaysia (9 per cent of volume, 11 per cent of value) (Figures 11.4 and 11.5).

Figure 11.2 Quantity of ornamental fish imports by state of final destination, 2002/03 to 2006/07

20,000 18,000 16,000 14,000 12,000 10,000 8,000 Quantity ('000) Quantity 6,000 4,000 2,000 0

3 4 5 7 0 0 0 0 5/06 03/ 04/ 0 2002/ 20 20 20 2006/

NSW QLD SA VIC WA Other

Source: ABS (by request)

Figure 11.3 Value of ornamental fish imports by state of final destination, 2002/03 to 2006/07

6,000

5,000

4,000

3,000

Value ($'000) 2,000

1,000

/03 /04 /05 /06 05 003 2002 2 2004 20 2006/07

NSW QLD SA VIC WA Other

Source: ABS (by request)

Figure 11.4 Quantity of ornamental fish imports by country of origin, 2002/03 to 2006/07

20,000 18,000 China Germany 16,000 Hong Kong 14,000 Indonesia 12,000 Malaysia 10,000 Singapore 8,000 Sri Lanka

Quantity ('000) Thailand 6,000 USA 4,000 Vanuatu 2,000 Other 0

/03 /04 /05 /07

2002 2003 2004 2005/06 2006

Source: ABS (by request)

Figure 11.5 Value of ornamental fish imports by country of origin, 2002/03 to 2006/07

6,000 China 5,000 Germany Hong Kong 4,000 Indonesia Malaysia 3,000 Singapore Sri Lanka

Value ($'000) 2,000 Thailand USA 1,000 Vanuatu Other 0

3 4 5 6 7 0 0 0 0 4/0 02/ 0 05/ 20 2003/ 20 20 2006/

Source: ABS (by request)

11.2 Coral and Other Invertebrate Imports

Live corals, live rock and invertebrate animals are not allowable imports into Australia. The major concern is that there is no way of telling what is going to grow on the `live rock' until it is in the water, so there is know way to know if pests species are being imported or moved around.

The coral imports illustrated in Figures 11.6 to 11.10 are dry products and are likely to be used for jewellery, shop decoration or display and carvings. According to the Biosecurity Australia ICON database, live coral like organisms can only be imported under the following conditions "Eligible non-commercial purpose only, excluding household pets. High security facilities only."

Figures 11.6 to 11.10 and the associated data in Appendix 4 provide an historical breakdown of total coral imports into Australia, by state of final destination and country of origin, for the period 2002/03 to 2006/07.

Figure 11.6 Average price of coral imports, 2002/03 to 2006/07

$2 Average Price ($/kg)of Coral $1

/07 02/03 03/04 04/05 06 0 20 2 20 2005/06 20

Source: ABS (by request)

The average value per kilogram of coral increased from $6.64 in 2002/03 to $7.64 in 2004/05, but has decreased in subsequent years (Figure 11.6). The total amount of coral imported into Australia from overseas increased from 57 tonnes in 2002/03 to almost 105 tonnes in 2006/07 (Figure 11.7). Over the same period, the total value of coral imports increased from $381,000 to $560,000 (Figure 11.8).

Figure 11.8 Quantity of coral imports by state of final destination, 2002/03 to 2006/07

120

100

40 Quantity (tonnes) Quantity

/03 /04 /05 /06 /07 003 006 2002 2 2004 2005 2

NSW NT QLD SA VIC WA Other

Source: ABS (by request)

Figure 11.9 Value of coral by state of final destination, 2002/03 to 2006/07

600

500

400

300

Value ($'000) Value 200

100

3 4 5 6 7 0 0 /0 0 0 2/ 3/ 4 5/ 6/ 00 00 200 200 200 2 2

NSW NT QLD SA VIC WA Other

Source: ABS (by request)

Figure 11.10 Quantity of coral imports by country of origin, 2002/03 to 2006/07

120

100 France Japan 80 Kenya Solomon Islands 60 Switzerland Vanuatu 40 Viet Nam

Quantity of Coral (tonnes) Coral of Quantity Other 20

/04 02/03 03 04/05 05/06 06/07 0 20 20 2 20 20

Source: ABS (by request)

Figure 11.11 Value of coral imports by country of origin, 2002/03 to 2006/07

600

500 France Japan 400 Kenya Solomon Islands 300 Switzerland Vanuatu 200 Viet Nam Value of Coral ($'000) Other 100

/03 /04 /05 /06 03 04 05 2002 20 20 20 2006/07

Source: ABS (by request)

The most significant state of final destination for coral imports for the period 2002/03 to 2006/07 were New South Wales, Queensland and Victoria, accounting on average for 39, 36 and 18 per cent, respectively, of the total quantity of coral imported into Australia (Figure 11.8).

Over the period 2002/03 to 2006/07 the most significant countries of import origin were the Solomon Islands, Japan, France and Vietnam, accounting on average for 38, 17, 14 and 11 per cent, respectively, of the total quantity of coral imported into Australia. In 2006/07, the most significant import countries of origin by volume and value were Japan (24 per cent of volume, 16 per cent value), Switzerland (22 per cent of volume, 19 per cent of value), France (16 per cent of volume, 4 per cent of value) and the Solomon Islands (15 per cent of volume, 19 per cent of value) (Figures 11.10 and 11.11).

12. Ornamental Fish Exports

KEY FACTS: Australian Ornamental Fish Exports

Export data were available for the following commodities: • live syngnathids; • native species of ornamental fish; • non-native species of ornamental fish; and • corals. Live Syngnathid Exports • Between 2002/03 and 2006/07 the total quantity or live syngnathids exported from Australia decreased from over 2,600 to 465. • The total value of these exports decreased from approximately $282,000 to $160,000 Native Species of Ornamental Fish Exports • Exports from Queensland accounted for the majority of the total value of exports of native species of ornamental fish between 2002/03 and 2006/07. • Between 2002/03 and 2005/06 the total quantity of native species exported from Australia decreased from almost 44,000 to just over 20,000. • The total number of Australian species exported increased to almost 70,000 in 2006/07. • The total value of exports of native species decreased between 2002/03 and 2004/05 but has increased in subsequent years • The most significant export destinations were the United States and Malaysia. Non - Native Species of Ornamental Fish Exports • Exports from Queensland accounted for the majority of the total value of exports of non native species of ornamental fish between 2002/03 and 2006/07. • Between 2002/03 and 2006/07 the total quantity of exports of non-native species of ornamental fish decreased from around 40,000 to 7,000. Coral Exports • There were no exports of coral over the period 2002/03 to 2004/05. • In 2006/07 almost 900kg of coral was exported. The total value of the coral was $18,000. • The coral was exported solely from Queensland and was exported to Canada, Germany and the Netherlands.

12.1 Live Syngnathids

There is a large and lucrative market for dried Syngnathids (sea horses, pipefish and sea dragons) for the Chinese medicine market. However, most of the species found in Australia are reported to be unsuitable for this market.

Recently live specimens have also been exported for the ornamental trade, including public aquaria. Figures 12.1 to 12.4 and the associated data in Appendix 5 provide an historical breakdown of total live Syngnathid exports from Australia, by state of origin and country of destination, for the period 2002/03 to 2006/07.

Between 2002/03 and 2006/07 the total quantity or live Syngnathids exported from Australia decreased from over 2,600 to 465. The total value of these exports decreased from approximately $282,000 to $160,000 (Figures 12.1 and 12.2).

Over the five year period, 2002/03 to 2006/07 the most significant export destinations were the United States and Japan, accounting on average for 58 and 25 per cent, respectively, of the total quantity of live Syngnathid exports from Australia (Figure 12.3).

Figure 12.1 Quantity of live Syngnathid exports by state of origin, 2002/03 to 2006/07

3,000

2,500

2,000

1,500

Quantity (no) Quantity 1,000

500

/03 /04 /05 /06 05 003 2002 2 2004 20 2006/07

QLD SA TAS VIC WA Other

Source: ABS (by request)

Figure 12.2 Value of live Syngnathid exports by state of origin, 2002/03 to 2006/07

350

300

250

200

150 Value ($'000) 100

3 4 5 6 7 0 0 /0 0 0 2/ 3/ 4 5/ 6/ 00 00 200 200 200 2 2

QLD SA TAS VIC WA Other

Source: ABS (by request)

Figure 12.3 Quantity of live Syngnathid exports by country of final destination, 2002/03 to 2006/07

3,500

3,000 Hong Kong 2,500 Ireland Italy 2,000 Japan 1,500 Singapore

Quantity (no) Quantity USA 1,000 Other

500

03/04 04/05 05/06 06/07 0 0 2002/03 2 20 2 20

Source: ABS (by request)

Figure 12.4 Value of live Syngnathid exports by country of final destination, 2002/03 to 2006/07

350

300 Hong Kong 250 Ireland Italy 200 Japan 150 Singapore

Value ($'000) USA 100 Other

/04 02/03 06/07 004/05 20 2003 2 2005/06 20

Source: ABS (by request)

12.2 Exports of Native Species

Figures 12.5 to 12.8 and the associated data in Appendix 5 provide an historical breakdown of total exports of native species of ornamental fish from Australia, by state of origin and country of destination, for the period 2002/03 to 2006/07.

At times, exported fingerlings actually destined for stocking in farms for production of food fish, are labelled as ‘ornamental species’. The large quantity of low value sales in 2006/07 could also be sales of brine shrimp or feeder fish.

Exports from Queensland accounted for the majority of the total value of exports of native species of ornamental fish between 2002/03 and 2006/07 (Figure12.6).

Between 2002/03 and 2005/06 the total quantity of native species exported from Australia decreased from almost 44,000 to just over 20,000. The total number of native species exported increased to almost 70,000 in 2006/07. Export data indicates that a large number of low value native species of ornamental fish were exported from South Australia to Malaysia in 2006/07 (Figures 12.7 and 12.8). The total value of exports of native species decreased between 2002/03 and 2004/05 but has increased in subsequent years (Figures 12.6 and 12.8.

Over the five year period, 2002/03 to 2006/07 the most significant export destinations were the United States and Malaysia, accounting on average for 37 and 27 per cent, respectively, of the total quantity of Australian species of ornamental fish exported from Australia (Figure 12.7).

Figure 12.5 Quantity of live ornamental fish (native species) exports by state of origin, 2002/03 to 2006/07

30 Quantity ('000) Quantity

3 4 5 6 7 0 0 /0 0 2/ 3/ 4 5/ 0 00 200 20 200 2 2006/0

NT QLD SA TAS VIC WA Other

Source: ABS (by request)

Figure 12.6 Value of live ornamental fish (native species) exports by state of origin, 2002/03 to 2006/07

1,400

1,200

1,000

800

600 Value ($'000) Value 400

200

5 /03 /0 /06 04 2002 2003/04 20 2005 2006/07

NT QLD SA TAS VIC WA Other

Source: ABS (by request)

Figure 12.7 Quantity of live ornamental fish (native species) exports by country of final destination, 2002/03 to 2006/07

70 Brunei Darussalam 60 Germany 50 Hong Kong Japan 40 Malaysia 30 USA Quantity ('000) Quantity Other 20

6 /04 /05 0 5/ 02/03 20 2003 2004 200 2006/07

Source: ABS (by request)

Figure 12.8 Value of live ornamental fish (native species) exports by country of final destination, 2002/03 to 2006/07

1,400

1,200 Brunei Darussalam 1,000 Germany Hong Kong 800 Japan 600 Malaysia

Value ($'000) USA 400 Other

200

06 07 5/ 006/ 2002/03 2003/04 2004/05 200 2

Source: ABS (by request)

12.3 Exports of Non-Native Species

Figures 12.9 to 12.12 and the associated data in Appendix 3 provide an historical breakdown of total exports of non-native species of ornamental fish from Australia, by state of origin and country of destination, for the period 2002/03 to 2006/07. Unfortunately no data are currently collected that details the species involved in this trade.

Between 2002/03 and 2006/07 the total quantity of exports of non-native species of ornamental fish decreased from around 40,000 to 7,000 (Figure 12.9 and 12.11). The total value of these exports fluctuated over the five-year period.

Exports to the United States of America accounted for approximately 56 per cent of the total quantity and 40 per cent of the total value of non-native ornamental fish exports between 2002/03 and 2006/07 (Figures 12.11 and 12.12).

In 2004/05 a large quantity of low value, non-native species were exported from Victoria to Singapore (Figures 12.9 to 12.12).

Figure 12.9 Quantity of live ornamental fish (non-native species) exports by state of origin, 2002/03 to 2006/07

Quantity ('000) 15

/03 /04 /05 /06 05 003 2002 2 2004 20 2006/07

NSW QLD VIC Other

Source: ABS (by request)

Figure 12.10 Value of live ornamental fish (non-native species) exports by state of origin, 2002/03 to 2006/07

600

500

400

300

Value ($'000) 200

100

4 6 03 05 07 2/ 4/ 6/ 0 200 2003/0 200 2005/0 20

NSW QLD VIC Other

Source: ABS (by request)

Figure 12.11 Quantity of live ornamental fish (non-native species) exports by country of final destination, 2002/03 to 2006/07

40 China 35 Hong Kong 30 Japan

25 Netherlands Singapore 20 Taiwan

Quantity ('000) 15 USA

10 Other

/06 /07 04/05 05 06 2002/03 2003/04 20 20 20

Source: ABS (by request)

Figure 12.12 Value of live ornamental fish (non-native exports) exports by country of final destination, 2002/03 to 2006/07

1,200

1,000 China Hong Kong 800 Japan Netherlands 600 Singapore Taiwan Value ($'000) 400 USA Other 200

6 05 0 4/ 02/03 03/04 05/ 06/07 20 20 200 20 20

Source: ABS (by request)

12.4 Exports of Coral

There were no exports of coral over the period 2002/03 to 2004/05. In 2006/07 almost 900kg of coral was exported, the total value of which was $18,000. The coral was exported solely from Queensland and was exported to Canada, Germany and the Netherlands.

Exports of coral were illegal prior to 2006. The amount of coral exported from Australia has the potential to increase significantly in the future.

13. Commercially Important Species Traded

The majority of sales within Australia are from nine species groups. A comparison of the total number of fish sold in 1996/97 and 2006/07 is provided in Table 13.1.

Table 13.1 Major species groups of ornamental fish traded in Australia, 1996/97 and 2006/07

Retail Sales Retail Numbers Value (%) (%) Species Group Taxonomic Group 1996/9 2006/0 2006/07 7 7

Australian Members of the Family Melanotaeniidae 0.8% 1.8% 2.0% Natives and other Australian native species Catfish Members of the sub-order Siluroidea 3.9% 2.6% 2.3% Goldfish and Koi Carassius auratus (Ryukin, Pearl Scale, Oranda, Lionhead, Pom Pom, Bubble Eyes, Telescopes, Comet, Fantails, Black 48.1% 27.3% 28.5% Mohr, Shubunkins) Cyprinus carpio(Koi Carp) Barbs and Members of the family Cyprinidae 4.7% 4.8% 3.7% Danios Live Bearers Members of the family Poeciliidae specifically guppies (Poecilia reticulata), mollies (Poecilia spp), swordtails, 11.5% 13.9% 11.2% (Xiphophorus helleri) and platys (Xiphophorus maculatus) Discus and Members of the family Cichlidae 6.0% 18.5% 19.3% Cichlids Tetras Members of the family Characidae 13.8% 13.9% 11.3% Gouramis and Members of the family Anabantidae 3.5% 9.1% 7.3% Bettas Other Other species not covered in the above Freshwater groups or fish that were not grouped 6.0% 3.2% 4.4% species Marine Species 1.7% 4.9% 10.0%% Total a 100.0% 100.0% 100.0% a Totals may not sum due to rounding. Source: PSM (1999), survey responses and EconSearch analysis.

Major freshwater exotic and native species available and the source of the species are summarised in Table 13.2. Many exotic (non-native) species are being bred domestically and there are also a large number that are imported into Australia.

Table 13.2 Major exotic and native freshwater finfish species traded in Australia

Common Name Scientific Name Source and Comments Archer fish. Toxotes sp Hatchery, wild caught, imported Angelfish Pterophyllum scalare Exotic, imported & hatchery Australian Pencilfish Craterocephalus Wild caught stercumuscara Barramundi Lates calcarifer Hatchery, also used for food, restocking Blue Eye Pseudomugil spp Hatchery / wild caught Bream Acanthopagrus berda Wild caught, also used for food Bristlenose catfish Ancistrus dolichopterus Exotic, hatchery Bully Mullet Mugil cephalus Wild caught, also used for food Berneyi Catfish Arius berneyi Wild caught, possible hatchery Catfish Black - Neosilurus ater Neosilurus ater Wild caught, possible hatchery Catfish Tandanus - Tandanus tandanus Hatchery, also used for food Catfish Yellow Eeltail - Neosilurus hyrtlii Hatchery / wild caught Crazy Fish Butis butis Wild caught Corydoras catfish (10 species) Corydoras spp Exotic, imported & hatchery Goldfish (varieties including Carassius auratus Exotic, some varieties Shubunkins, Comets, Red Caps, hatchery, others imported Orandas, Black Mohrs, Calico Fans) Danios (2 species) Brachydanio spp Exotic, imported & hatchery Discus fish (several species) Symphosodon sp Exotic, imported & hatchery Frog Fish Halphryne spp Wild caught Glassfish Sailfin Ambassis agrammus Wild caught Goby Bridled Arenigobius bifrenatus Wild caught Goby Desert Chalamydogobius eremius Hatchery / wild caught Gouramis (5 species) Trichogaster spp., Colisa Exotic, imported & hatchery spp Grunter Barcoo Scortum barcoo Hatchery, wild caught, also used for food, restocking Grunter Barred Amniataba percoides Hatchery, wild caught

Common Name Scientific Name Source and Comments Grunter Butler’s Syncomistes butleri Hatchery, wild caught Grunter Coal Hephaestus carbo Hatchery, wild caught Grunter Yellow Bar Tail Amniataba caudavittatus Hatchery, wild caught Guppies Poecilia reticulata Exotic, hatchery & imported Gudgeon Empire Hypseleotris compressa Hatchery, wild caught Gudgeon Purple Spotted (NTH) Mogurnda mogurnda Hatchery, wild caught Koi carp Cyprinus carpio Exotic, hatchery (NSW & WA only) Mollies Poecilia latipinna Exotic, imported & hatchery Mouth Almighty Glossamia aprio Hatchery, wild caught Mudskipper (Brackish) Periophthalmus kalolo Wild caught Murray Cod Maccullochella peelii Hatchery, also used for food, restocking Paradise fish Macropodus opercularis Exotic, imported & hatchery Perch Goldena Macquaria ambigu Hatchery, also used for food, restocking Perch Silver Bidyanus bidyanus Hatchery, also used for food, restocking Pigmy Perch Western Edelia vittata Hatchery, wild caught Platys Xiphophorus maculates Exotic, hatchery & imports Rainbows (15 species) Melanotaenia spp (M. Hatchery, wild caught, boesmani, M. lacustris, M. Native & Exotic (PNG) preachax) Saratoga Queensland Scleropages leichardti Hatchery & wild caught Scat Red (Brackish) Scatophagus argus Wild caught Scat Silver (Brackish Selenotoca multifasciata Wild caught Siamese fighting fish Betta splendens Exotic, imported Swordtails Xiphophorus helleri Exotic, hatchery & imports Tiger barbs Capoeta tetrazona Exotic, hatchery & imports Tetras Hyphessobrycon sp, Exotic, hatchery & imports Gymnocorymbus sp Threadfin Rainbow (Males Only) Iriatherina werneri Hatchery Walking fish Axolotl sp Exotic, hatchery

Sources: Updated from Willis (1995), PSM (1999) and PSM (2000).

Major marine species available in Australia and their typical source are summarised in Table 13.13.

Most marine species are wild caught with some sourced locally and some imported from overseas. A small number of marine species are bred locally. A more comprehensive list of marine species collected by licensed collectors in Australia is provided in Appendix 7.

Table 13.3 Major exotic and native marine species traded in Australia a

Common Name Scientific Name Source and Comments Surgeonfish Acanthuridae Wild caught and imported Cardinal fishes Apogonidae Wild caught and imported Triggerfish Balistidae Wild caught and imported Dragonets Callionymidae Wild caught and imported Butterfly fish Chaetodontidae Wild caught and imported Hawk fish Cirrhitidae Wild caught and imported Batfish Ephippididae Wild caught and imported Grammas Grammatidae Wild caught and imported Wrasses (excluding Cheilinus Labridae Wild caught and imported undulatus - Humphead wrasse) Moray eels Muraenidae Wild caught and imported Box fish Ostraciidae Wild caught and imported Convict blennies Pholidichthyidae Wild caught and imported Angel fish Pomacanthidae Wild caught and imported Damsel fish Pomacentridae Hatchery, wild caught and imported Dottyback Pseudochromidae Wild caught and imported Syngnathidae – sea horses eg. Hippocampus spp Hatchery, wild caught and Tropical kuda, Southern knight imported Tangs (eg. Yellow tang Zebrasoma Zanclidae Wild caught and imported flavescens) Volitan Lionfish Pterois volitans Wild caught Clown fish – Red tomato, B&W Anemonefish Hatchery and wild caught Percula, Carmel Percula a Note: No marine invertebrates (including live rock, corals, molluscs and crustaceans can be imported) Source: Extracts from “List of permitted Live Marine fish suitable for Import [AQIS ICON, October 2007]” and data supplied by Cairns Marine).

Major invertebrate species available for sale in Australia are detailed in Table 13.4.

Table 13.4 Major exotic and native invertebrate species (freshwater and brackish water) traded in Australia a

Common Name Scientific Name Source and Comments Land hermit crab Coenibita variabilis Wild caught, Freshwater crayfish - Yabby Cherax destructor Wild caught & hatchery - Marron C. tenuimanus Wild caught & hatchery - Red Claw C. quadricarinatus Wild caught & hatchery - Others (e.g. Electric Blue Various Wild caught & hatchery Marron, Nth Qld Blue Redclaw, Blue Claw Yabbie), Black Yabbie) Ramshorn snails Planabis sp Exotic, hatchery Gold mystery snail Genus species Exotic, hatchery Singapore spiral Genus species Exotic, hatchery Trochus Trochus niloticus Wild caught & hatchery Giant clams Tridacna spp., Hippopus Wild caught & hatchery spp Freshwater Brown back crab Holthuisana sp Wild caught Peppermint shrimp Genus species Wild caught & hatchery Freshwater prawn Macrobrachium Wild caught australiense Long claw Freshwater prawn Macrobrachium rosenbergii Wild caught Freshwater glass shrimps Paratya australiensi Wild caught Cherry spider crab Amarinus laevis Wild caught a Note that aquatic invertebrates can’t be imported into Australia. Exotic species are produced from broodstock which have been through quarantine or have been long established in Australian aquariums. Source: Shane Willis, Aquarium Industries (pers. comm.) and Jared Patrick, BayFish (pers. comm.)

14. Australian Ornamental Fish Industry GVP, 2006/07

Gross value of production (GVP) for each of the ornamental fish industry sectors is summarised in Tables 14.1 to 14.5. Estimates of GVP exclude the value of unregulated and illegal trade. Estimates of GVP for each sector are based on the estimated value of purchases and sales presented in Sections 5 to 7.

Table 14.1 Ornamental fish industry GVP, breeder sector, 2006/07 a

Sales Purchases GVP ($'000) ($'000) ($'000) Ornamental Fish 4,998 13 4,985 Aquatic Plants 832 0 832

Total 5,830 13 5,817 a Includes commercial breeders only. i.e. excludes sales/trade by hobby breeders. Source: Survey responses and EconSearch analysis.

Table 14.2 Ornamental fish industry GVP, collector sector, 2006/07 a

Sales Purchases GVP ($'000) ($'000) ($'000) Ornamental Fish 5,292 0 5,292 Other b 1,756 0 1,756 Total 7,048 0 7,048 a Excludes illegal sales by unlicensed collectors, also excludes margins on freight and packaging. b Includes live rock, coral and aquatic plants. Source: Survey responses and EconSearch analysis.

Table 14.3 Ornamental fish industry GVP, wholesale sector, 2006/07 a

Sales Purchases GVP ($'000) ($'000) ($'000) Ornamental Fish - Freshwater Species 24,919 7,203 17,716 - Marine Species 2,053 800 1,253 Total Ornamental Fish 26,972 8,003 18,969 Accessories 41,936 23,630 18,306

Total 68,908 31,632 37,275 a Excludes sales of illegal imports. Source: Survey responses and EconSearch analysis.

Table 14.4 Ornamental fish industry GVP, retail sector, 2006/07

Sales Purchases GVP ($'000) ($'000) ($'000) Ornamental Fish - Freshwater Species 101,864 37,394 64,470 - Marine Species 27,282 4,067 23,215 Total Ornamental Fish 129,146 41,460 87,685 Other a 4,123 1,978 2,145 Accessories 170,615 77,511 93,105

Total 303,884 120,949 182,935 a Includes live rock, coral and aquatic plants. Source: Survey responses and EconSearch analysis.

Table 14.5 Australian ornamental fish industry GVP, 2006/07 a

GVP ($'000)

Wholesalers/ Breeders Collectors Retailers Total Importers Ornamental Fish 4,985 5,292 18,969 87,685 116,931 Other b 832 1,756 0 2,145 4,733 Accessories 0 0 18,306 93,105 111,411

Total 5,817 7,048 37,275 182,935 233,076 a Excludes the value of unregulated and illegal trade. b Includes live rock, coral and aquatic plants. Source: Survey responses and EconSearch analysis.

Note that the GVP for each sector (breeders, collectors, etc.) has been calculated by subtracting purchases of ornamental fish, other products and accessories from gross sales. This is done to avoid double counting in estimating GVP for the whole industry. For the collector sector, for example (Table 14.2), there are no purchases of fish or other products from other sectors and so the gross sales of $7.0 million is also the sector’s GVP. However, for the wholesale sector (Table 14.3), purchases of $31.6 million from breeders, collectors and imports must be subtracted from gross sales of $68.9 million to derive the sector’s GVP of $37.3 million.

The total GVP of the Australian ornamental fish industry for 2006/07 was estimated to be $233.1 million (Table 14.5). This estimate is based on survey responses from 97 businesses and individuals involved in the industry. The estimated GVP excludes the value of unregulated and illegal trade.

15. Method for Annual Estimation for GVP

To estimate the value of the industry in future years it will be necessary to obtain indicative information from key businesses representing each of the following sectors: • ornamental fish breeders; • licensed ornamental fish, live rock and coral collectors ; • ornamental fish and accessories importers and wholesalers; • specialist retailers (aquarium shops); • general retailers (pet stores); and • hobbyists and hobby organizations.

The suggested minimum number of participants in the update survey sample group are summarised in Table 15.1.

Table 15.1 Suggested sample for GVP update survey

Number of Respondents for Suggested Minimum Sector 2006/07 Survey Respondents for Update

Breeders 9 4

Collectors 6 3

Wholesaler/Importer a 14 5

Specialist Retailer b 49 8

General Retailer 9 2

Hobbyists 9 3

Total 96 25 a Should include two of the major fish importers/wholesalers in Australia and at least one of the major accessories importer/wholesalers. b Should ensure that this includes retailers with and without an importing licence and quarantine facilities and cover both freshwater and marine sales.

A survey instrument could be used to determine the GVP for the industry in future years. It is likely that questions included in the survey instrument would cover the following topics: • employment; • quantity and value of purchases and sales; • product sources and destinations; • forecasts for future years; • unregulated trade; and • illegal trade.

It is not necessary that participants in the future survey were involved in the survey conducted in 2007, however some survey participants did express an interest in being involved in future research into the industry.

It is recommended that a more comprehensive survey (sample size of approximately 100) of the industry be undertaken periodically, preferably every 3 years and at a maximum every 5 years, to ensure that the estimates of GVP accurately represent the industry’s actual position.

To assist in future studies a national database of industry stakeholders has been developed.

16. Potential Areas for Industry Growth

Comments provided during the surveys suggested the following growth areas for the ornamental industry.

Demographic Changes

A large number of respondents, particularly from the retail sector, indicated that increases in housing density were positive for the ornamental fish industry. Survey respondents indicated that fish are more convenient and easier to manage than other pets, especially in small spaces.

Local Breeding/Aquaculture

Many survey respondents indicated that they would like to see an increase in import replacement through domestic production. A number of respondents indicated that the quality and health of fish sourced locally was superior to imported specimens. However, other respondents strongly disagreed, saying that in most cases the quality of imported fish is much better due to cheaper labour costs overseas that allows higher degree of grading and selection. A greater economy of scale also means a greater selection of fish. Some respondents indicated that the incidence of transport related damage is lower in locally produced fish due to shorter transit times.

Many breeders indicated that it is difficult to compete with the price of imported fish. They felt that the scale of local breeding operations needed to be larger in order to be competitive and viable. Some respondents pointed to the ‘cottage industry’ level of expertise and experience in Australia which has yet to develop the broad scale production expertise of overseas countries.

Marine Species

Many survey respondents, particularly from the retail sector, indicated that the demand for marine species had increased and they expected this trend to continue. The increase in demand is attributable to a decrease in the costs of marine equipment and an improvement in the quality and reliability of equipment, particularly large custom- built marine aquariums for homes and offices. Survey respondents indicated that the market for marine species was becoming increasingly important to the industry as a whole.

There was some indication from a few respondents that there is likely to be an increase in domestic breeding of marine species. Currently a small number of marine species are bred in an aquaculture environment including seahorses and clownfish. Overseas technology may need to be imported to increase the number of marine species being bred. Also there may be potential to draw upon the expertise of those involved in marine food-fish aquaculture.

There was a growing demand for ‘ESD’14 fish from managed fisheries, aquaculture and certified sources. Some of the collectors surveyed indicated that they were moving towards increased aquaculture of fish, coral and invertebrates. One suggested that in the near future more than half of their production will be from aquaculture rather than wild caught. Collectors expect that the overall quantity of fish, live rock and coral produce will increase and the majority will be exported.

Coral and Live Rock

A small number of respondents involved in both the collector and retail sector, indicated that there was potential to significantly increase the amount of coral sold, particularly via export. They indicated that this could be achieved through the culture and the on-growing of corals and live rock.

Following the Strategic Assessment of the Queensland coral collection industry, exports of corals have been legal since 1st July 2006. Many respondents suggested they would be expanding in this area, with significant increases in export sales predicted.

Native Species

Some retailers indicated that there had been an increase in the level of interest in native species of ornamental fish. A number of retailers had increased their range of native fish and plants for ‘planted’ aquariums. There was a feeling among many retailers that the market (both local and export) for native species would grow over the next few years. Fortunately, several Australian natives (e.g. rainbow fish) have been bred overseas for many years and an international market already exists. However, it is suspected that Australian exporters may not have the production capability and production efficiency to compete internationally on species already traded.

Government Regulations/Organisations

Several survey respondents were involved in breeding and selling of Koi primarily for garden ponds. These respondents indicated that if Koi (sterile fish only) were allowed to be sold in all states and territories there would be significant growth in sales. A number of businesses who weren’t involved directly in breeding or sale of Koi but sold garden ponds and accessories, also indicated that legalisation of Koi sales Australia- wide would be beneficial for their business.

Many retailers and breeders indicated that government support for local breeders would be beneficial in promoting growth in the industry. Forms of government support suggested included: • low interest loans; • specialised hatchery training program; • research and development into breeding strategies; • low lease fees for under-utilised government facilities; and • funds for undertaking study tours overseas to learn about practices and technology utilized.

A large number of respondents from all sectors indicated that the legislation relating to the ornamental fish trade needed to be standardized Australia-wide. Many suggested

14 Ecologically Sustainable Development.

that an accreditation system be developed for commercial operators (breeders, collectors, wholesalers and retailers).

Some respondents indicated that policing of the laws that apply to the ornamental fish trade was insufficient and penalties were too lenient. Respondents also felt that there was a lack of knowledge about ornamental fish among those policing the laws.

Larger Retail Outlets (Chain Stores, Franchises)

Some of the retailers who participated in the survey indicated that they thought the average size (in terms of turnover) of retail outlets would increase over the next few years. These larger businesses would have a greater purchasing power and would be able to offer fish to consumers at a lower price. The small sized retailers would likely suffer as a result and would cease to be viable operations. The presence of larger individual retailers would likely increase the capacity for promotion and advertising of the industry. Many respondents indicated that it was important that the knowledge and experience of those working in the smaller stores (often owner-operated) was not lost in the commercialisation of the industry. They hoped that there would be opportunities for re-employment should some of the small stores be forced to close.

Education and Training

Many wholesalers and retailers who participated in the survey indicated that having well educated and trained staff was important for development and growth of their operations. Many retailers indicated that they found it difficult to find suitably trained staff for their business and hard to find the time to properly train them.

Many respondents, across all sectors, indicated that there needed to be more education and training available for people involved in the industry. They felt that a recognised training course or apprenticeship scheme would improve the quality and accuracy of information provided to customers (the Companion Animals Training Package [RUV04] has recently been developed to addressed this, however, there has been limited industry uptake).

Some survey respondents suggested that education and training could be linked to an accreditation system. .

17. Potential Impediments for Industry Growth

Survey participants were asked to consider potential impediments to growth for their business and for the industry as a whole. The comments provided by survey respondents are summarised below (some have already been mentioned in the previous section).

Local Production and Collection

Many respondents felt that the economic viability of local fish production would decrease over the next few years for a number of reasons, including: • high labour costs in Australia (compared to overseas); • restrictions on allowable activities in some states (e.g. restrictions on species that can be produced in ponds); • availability and affordability of capital; and • a lack young people entering/interested in the industry.

Some respondents felt that the limited number of commercial breeders and collectors would limit the opportunities for prospective entrants in the industry to gain experience. Survey respondents indicated that several experienced breeders had left the industry in the last 5 years and more would retire over the next few years. The lack of suitable formal education and training opportunities relevant to the industry also limits the number of new entrants to the industry.

Some survey respondents indicated that there was a lack of certified disease free brood stock in Australia.

Capacity to Expand

Many breeders indicated that imports are generally high volume and low in price making it difficult for them to compete. Breeders do not have the financial capacity to expand their production facilities to compete with and replace imported fish.

Some respondents indicated that there was a need for more large scale production operations which could supply wholesalers with a large quantity of fish (e.g. half a million fish per year) throughout the year. This “deficiency: means there is greater reliance on imported fish.

Competition

Many survey respondents, particularly in the wholesale and retail sectors, indicated that there had been a significant increase in the level of competition in all sectors of the industry in the past few years. This can lead to negative growth for individual businesses when there are too many operators serving limited market.

A large number of respondents from the retail sector indicated that the industry will move from small independent stores to larger chain stores (e.g. Pets Paradise and City Farmers). Foreign owned businesses interested in the industry could lead to profits going overseas.

Lack of Accurate Information and Advice

A large number of retailers indicated that the lack of accurate information available for retail workers and consumers would severely impede industry growth. Often customers are given bad advice and consequently their fish die. Many of these consumers will give up on the hobby.

Some retailers indicated that industry-wide water quality guidelines would reduce mortalities at all sector levels. A system of guidelines would need to involve all sectors of the industry.

Government Regulations/Organisations

Issues relating to Government regulations were raised as an impediment to growth in the industry by many survey respondents. The most common issue raised was the inconsistency of legislation relating to ornamental fish between states and territories in Australia. Respondents felt that differing laws between states and territories creates a black market for many species and leads to illegal trade.

Many respondents, particularly those who imported products directly from overseas, indicated that the Australian standards on fish imports were unnecessarily high, adding significantly to business costs.

Likewise, many respondents indicated that they felt their compliance costs were high due to constant changes in regulations. A few respondents indicated that the quarantine treatments (e.g. gamma ray) and paperwork for food/accessories imports leads to shortage of products available and adds to the cost and delays in importing goods.

Some respondents indicated that most AQIS officers needed more training in identifying legal and illegal species. This additional training would minimise delays for importers and reduce the number of illegal species entering Australia.

Some of the larger retail importers surveyed felt that there was a lack of sufficient policing of small importers. While the large importers are subject to inspection on a daily basis, small fringe operators may only have a visit monthly depending on volumes of fish.

Many respondents, particularly specialised retailers, indicated that growth of the hobby and the industry relies on interest generated by new species. They indicated that the process for getting new species added to the import list is difficult, slow and time consuming.

Some retailers expressed concern regarding the future of their business and the industry if quarantine restrictions are increased. Respondents indicated that a significant proportion of there annual sales are from imported fish Consequently, further tightening of quarantine regulations or bans on trade of Grey List fish would have a major economic impact on their business and the industry and would lead to job losses.

A number of collectors and retailers who specialised in marine species raised concerns regarding regulation of the collection fisheries. Some respondents indicated that they constantly felt their business was under threat due the potential for the government to ban or severely impede collection fisheries. Industry Advocacy

A number of respondents indicated that there needed to be an industry body specifically for the ornamental fish industry. Some respondents indicated that the lack of advocacy and recognition meant the industry had a low profile.

Labour Shortage/Wage Costs

A large number of respondents, particularly in the retail sector, indicated that they found it difficult to source and retain skilled or even unskilled labour. Many respondents associated this with the lack of education opportunities available within the industry.

Drought/Water Restrictions

A number of respondents, particularly from the retail sector, indicated that ongoing drought and water restrictions could impede growth in the industry. Most retailers indicated that water restrictions did not apply to aquariums and garden ponds. Since water restrictions were introduced in many states of Australia, there has been a greater awareness of water use. According to many respondents this has had a negative impact on growth in the ornamental fish industry.

Some survey respondents indicated that the suitability of drinking water for keeping fish is questionable as chemicals additives used to make water quality ‘potable’ are toxic to fish. Increasing pressures on urban water supplies is leading to more use of chemicals which is impacting on fish health in many areas.

Imports

Several retailers indicated that the quality of imported fish sourced from wholesalers was inferior to locally produced fish. They indicated that in some countries fish are caught from the wild by using cyanide to stun the fish (marines only). Inevitably some fish die as a result of this practice and there is habitat destruction (e.g. corals die). Sourcing from certified companies can reduce the problem.

A number of retailers and wholesalers indicated that there has been an increase in the amount of poor quality cheap imported accessories available for sale. Many felt that these imported goods devalued the industry.

Economy

Ornamental fish purchases generally rely on individuals discretionary income, therefore demand is affected by economic factors (e.g. unemployment levels and interest rates). Many retailers indicated that increases in interest rates would also have an adverse affect on their total sales.

Wild Catch Fishery Image

Many collectors felt that the public perception of the wild catch sector was poor. Some retailers indicated that they avoided purchasing fish caught in the wild due to the perception that the fishery is unsustainable and collection of corals damages the reefs.

Some collectors indicated that an accreditation system, such as through the Marine Aquarium Council, may assist in improving the image of the collection fisheries.

Losses through the supply chain

Many businesses within the ornamental fish industry, particularly in the retail sector, indicated that mortalities were a significant problem for their business. Some respondents indicated that mortalities were greater for fish that were sourced from overseas, particularly those caught in the wild.

Some respondents indicated that a high annual turnover of fish was normal. The expected life span of each ornamental fish varies considerably between species ranging from six months for some 'annual fish' in the Killifish group to 30 years or more for large coldwater species such as Koi carp. As a general rule, the larger the species, the longer life their expectancy. Many of the common small varieties such as guppies and neons have a life span of two years or less in the wild. As these small species account for a large proportion of the ornamental fish trade, the average life expectancy is fairly low. It should also be considered that the age of many imported fish could already be more than six months and so it would be expected that many would only survive a further six to 12 months in captivity for the normal lifespan.

Unregulated and Illegal Trade

From an industry management perspective the unregulated and illegal trade of fish are important issues. Industry regulators and managers have no way of tracing products in the event of a disease or pest problem.

Some respondents indicated that illegal trade was not good for the image of the industry and could affect potential investment in the industry.

Disease Status of Imported Fish

Some survey respondents indicated that the quarantine procedures do not always prevent introduction of diseases. In some cases local fish (domestically bred) have been mixed with imported fish, or put in a combined systems (e.g. recirculation system) and have died within a week due to the presence of pathogens, mainly viruses, e.g. Gourami iridiovirus.

18. Summary of Survey Results and Findings

The Australian ornamental fish industry consists of the following sectors: • importers and wholesalers (fish and accessories); • commercial breeders (covered by aquaculture permits in some states); • wild catch collectors; • retailers (general pet stores and specialist aquarium stores); • hobbyists (individuals and clubs); and • public aquaria15.

Trade between sectors involves purchases and sales of: • freshwater species of ornamental fish; • marine species of ornamental fish; • coral and live rock; • aquatic plants; and • accessories (including but not limited to tanks, electronic equipment, chemicals and fish food).

The complex relationships that exist between the sectors of the industry are summarised in Figure 18.1.

In addition to the sectors identified above, there is a significant amount of unregulated trade within the industry. Unregulated trade includes: • importation of fish and/or accessories without specific permits or licences; • sale of species on the noxious fish list (in some states this can include species on the grey list); and • sale of aquatic animals without required licences or permits.

The structure of unregulated and illegal trade in Australia is illustrated in Figure 18.2.

15 Not included in this study. PSM (2000) indicated that this sector was very small, limited to a few thousand fish being held at public aquaria at any one time in Australia. This is a misprint, the estimate was for ‘a few hundred thousand fish’; around 90% are marine species. Industry contacts suggest that public aquaria source marine fish from collectors/divers (sometimes they will undertake their own collection under permit) and freshwater fish from wholesalers.

Figure 18.1 Distribution channels for Australian ornamental fish industry: regulated trade

Overseas Wild Catch

Collector Overseas Aquaculture Serious Consumer

Moderate Consumer

Irregular Consumer Imports Breeder

Retailer

Wholesaler Exports

Source: Sections 5 to 7 (based on survey responses and EconSearch analysis).

Figure 18.2 Distribution channels for Australian ornamental fish industry: unregulated and illegal trade

Retailer

Overseas Wild Catch

Overseas Aquaculture Hobby Breeders Wholesaler (unlicensed)

Illegal Imports (fish & accessories) Hobbyists

Fish Dealers Unregulated Trade

Illegal Trade

Source: Sections 9 and 10 (based on survey responses and EconSearch analysis).

A summary of the findings of the industry survey conducted for 2006/07 and the findings of a pet industry report prepared for 2005 (BIS Shrapnel 2006) are summarised, for comparative purposes, in Table 18.1.

Table 18.1 A comparison of the key indicators of the Australian ornamental fish industry

Indicator 2005 Study Data Standing population 20 million fish N/A Annual wholesale sales 15 million fish 18.9 million fish Average wholesale price $1.50 per fish $1.43 per fish Total wholesale value $22.5 million $27.0 million Annual collector sales (fish only) N/A 0.6 million fish Average collector price (fish only) N/A $9.26 per fish Total collector value (fish only) N/A $5.3 million Annual breeder sales N/A 7.7 million fish Average breeder price N/A $0.65 per fish Total breeder value N/A $5.0 million Annual retailer imports (fish only) N/A 7.6 million fish Total retailer import value (fish only) N/A $3.9 million Annual retail sales 15 million fish 33.9 million fish Average retail price $4.00 per fish $3.81 per fish Total retail value $60 million $129.1 million No. aquarium and supply shops 879 N/A Sales of accessories $100 million $170.6 million (retail sales including Fish food sales $60 million accessories and food)

Source: BIS Shrapnel (2006), survey responses and EconSearch analysis.

The data presented in Table 18.1 suggests that there has been significant growth in the total volume and value of the ornamental fish trade.

19. Intellectual Property, Benefits and Adoption of This Report

19.1 Intellectual Property

No specific Intellectual Property (IP) was generated and it is expected that the report will be widely disseminated in the public domain through the distribution of the published report and electronically [PDF] through the FRDC or DAFF websites. A series of associated magazine articles are expected to highlight the report. Conference papers and/or training and extension could be provided utilising the data on production, value and industry segmentation trends.

19.2 Benefits of the Project

All sectors of the ornamental fish or pet industry in all states and territories will benefit from the completion of the project. As suggested in the original project application, the main beneficiaries are in the commercial production sector of the seafood industry, specifically: • Australian Capital Territory - 5% • New South Wales - 30% • Northern Territory - 5% • Queensland - 20% • South Australia - 5% • Tasmania - 2.5% • Victoria - 30% • Western Australia - 2.5%.

This specifically includes: • importers and wholesalers; • breeders; • collectors; • retailers (general pet shops and those specialised in ornamental fish or aquatic species); and • suppliers and manufacturers of tanks, equipment, feeds and other accessories.

Government and community groups that will benefit directly from the research are those identified in the project submission, specifically: • hobbyists (serious, moderate and irregular); • industry representative bodies (e.g. PIAA); • hobby organisations and other groups; • retailers, wholesalers, breeders, collectors and importers; • Commonwealth and State Government agencies; • members of the PSC; and

• members of the Ornamental Fish Technical Working Group (OFTWG) and other government or industry specialists.

It is unlikely that the adoption of this report will result in any changes in terms of prices (e.g. quality, market penetration, user satisfaction) or costs (e.g. productivity). However, a better understanding of the dynamics of the industry has been achieved which will assist the industry’s development.

The GVP information and overall industry trends collated as a part of the project will allow all industry sectors to better understand the current status of the industry and to understand their options for expanding production, sales and profitability.

A valuable database with more than 300 ornamental fish industry contacts has been collated and provided to FRDC. This database needs regular maintenance as the turnover of people and businesses in the industry, particularly in the retail sector, is high.

Adoption of the recommendations of the project (Section 19.3) will assist in the process of industry expansion.

19.3 Adoption of the Project

It is anticipated that the data provided in this report will be utilised by all sectors of industry and associated government agencies for describing and analysing the structure, function and value of the ornamental fish industry.

20. Outcomes, Deficiencies, Recommendations and Conclusions

20.1 Planned Outcomes

A description of the objectives and outcomes of the project is provided in Table 20.1.

Table 20.1 Description of the project’s planned outcomes.

Objectives Outcomes

1 Determine an estimate of the The ornamental fish industry in Australia involves the overall size, structure and value of sale of a number of finfish, crustacean, mollusc and the ornamental fish industry. other invertebrate species, as well as a range of aquatic reptiles and amphibians (the first four groups are jointly termed “fish” in this report; the latter two groups are not discussed in this report.

2 Determine an estimate of the This report provides a comprehensive and current overall structure, size and value of analysis of a series of indicators for each of the ornamental fish industry activities. industry sectors (Sections 5 to 12).

3 Determine the level of The survey method did not allow specific focus on this recreational ornamental fish objective. The hobbyists were divided into three ownership and the types of groups based on their annual expenditure – irregular, owners – based upon level of moderate and serious. The level of expenditure by seriousness (irregular, moderate each of these groups has been calculated for various and serious). product groupings.

4 Compile a list of the commercially Section 13 of the report provides an overview of important species traded in commercially important species traded. Analysis was Australia categorised by value, undertaken to highlight the value and source of source, production method, etc species groups at each sector level.

5 Develop a method to estimate the Section 14 outlines the GVP method used in this GVP of the industry on an annual project and Section 15 provides suggestions for future basis. annual reviews.

6 Identify potential areas for Section 16 details potential areas for industry growth industry growth. and Section 17 details potential impediments to this growth based on survey responses.

20.2 Deficiencies and Constraints

As discussed in Sections 9 and 10, little data were collected on non-regulated and illegal trade, especially “black market” sales and illegal imports. Nevertheless, the characteristics of the ornamental fish industry and it potential for growth have been comprehensively described in this project. For commercial sectors to exploit the results of the research there are a number of specific areas where government resources could be placed to increase Australian ornamental fish production, sales and value.

One of the major constraints in undertaking the project was obtaining sufficient accurate information from individuals and businesses within the industry. Given the uncertainty regarding the number of businesses and individuals involved in the industry, it was not possible to calculate the statistically appropriate sample size. A sample size was determined based on estimates of the total population size made by the Project Steering Committee. Another constraint was knowing who in the industry should be contacted and included in the survey sample. A comprehensive contact list was compiled with the assistance of Project Steering Committee, however, this list did have its deficiencies. Many key industry contacts were originally omitted but have since been identified and involved in the consultation and report review process. A significant number of those who agreed to participate in the survey were unable or not willing to provide the necessary details when requested.

Some collectors were originally omitted from the original contact list and were, therefore, not contacted early in the survey period.A number of collectors were identified with the assistance of key industry stakeholders and were subsequently included in the sample. Nevertheless, more than the original targeted number of collectors responded to the survey and several others were contacted by phone for their input on working drafts.

Because many of the potential participants in the study were not listed in the phone book, the collaboration with industry groups and with government agencies was critical. However, often it was not possible for the project team to access organisations contact details due to confidentiality provisions within these organisations. Some distributed information and surveys on behalf of the project team, however, the numbers of replies were very low.

20.3 Recommendations

The project team recommend that the following opportunities or assistance could be provided to the industry: 10. A database of industry stakeholders be developed (already complete) and maintained to ensure that the industry is easily identified. 11. A strategic development plan be coordinated for the industry specifically covering the actions required to act on the growth opportunities for the industry and to overcome the impediments to growth identified in this report. 12. Similar regulations on licensing, translocation, species usage, etc. to be implemented in all states and territories. 13. Standard licensing, codes of practice and accreditation systems (third party audits) be established for all commercial operators (e.g. breeders, collectors, importers, wholesalers, retailers). 14. Government support to encourage growth in local breeding for import replacement. Support could include: • Low lease fees for under-utilised government facilities for use by ornamental fish breeders. • Funding for research and development of breeding technologies. • Funding for study tours for best practice and industry technology transfer. 15. Specialised hatchery training backed by specific R&D into breeding strategies (infertile offspring, disease resistance or specific pathogen free stock, selective

breeding for colour, etc.) to improve quality and survival of stock throughout the supply chain. 16. Implementation of R&D into population dynamics and ecology of native species (including finfish, live rock and coral) to ensure long term expansion of the wild catch sector through access to appropriate stocks and the implementation of sustainable harvest strategies. 17. Annual estimates of GVP be undertaken and a more comprehensive review (such as that completed for this project) be scheduled for every 3-5 years. 18. Further R&D needs to be undertaken on the size of the hobby sector and specifically on determining a value for the unregulated trade.

20.4 Conclusions

The Australian ornamental fish industry generates significant economic activity through purchases and sale of stock, employment, capital investment and annual operating expenditure.

Comparison of current survey based estimates of the value of the industry with historical estimates suggests that there has been significant growth in the ornamental fish industry. Responses from survey based consultation with key industry stakeholders suggest that there are a number of potential areas for industry growth, namely: • demographic changes; • increase in local breeding; • increase in demand for marine species; • increase in coral exports; • increase in the popularity of native species; • legislative changes and government support; and • education and training opportunities.

There are, however, a number of factors that have the potential to impede industry growth in the future, namely: • decrease in viability of local production; • limited financial capacity to expand local production; • increasing competition from large retailers; • lack of accurate information and advice available; • inconsistency in regulations between juridictions; • lack of industry advocacy; • labour shortages; • high wage costs; • competition from imported fish and products; and • losses through the supply chain.

There are a number of opportunities or assistance that could be provided to ensure that the industry is able to achieve further growth and development in the future.

References

AQIS 1999, Import Risk Analysis on Live Ornamental Finfish, AQIS, Canberra. Bassleer, G. 1994, The International Trade in Aquarium/Ornamental Fish, Infofish International 5/1994. Bartley, D. 2000, Responsible Ornamental Fisheries, FAO Aquaculture Newsletter No. 24, FAO UN, Rome. BIS Shrapnel 2006, Contribution of the Pet Care Industry to the Australian Economy, 6th edition, Australian Companion Animal Council Inc., St Leonards, NSW. Brown, E.E. and Gratzek, J.B. 1982, Fish Farming Handbook, AVI Publishing Company. Chapman, F.A. 2000, Ornamental Fish Culture, Freshwater, In: R.R. Stickney (ed), Encyclopaedia of Aquaculture, pp. 602-610. New York, NY: John Wiley and Sons, Inc. Chapman, F.A., Fitz-Coy, S.A., Thunberg, E.M. and Adams, C.M. 1997, United States of America Trade in Ornamental Fish, Journal of the World Aquaculture Society, Vol. 28 (1): . DAFF 2005, A Strategic Approach to Management of the Ornamental Fish in Australia – Consultative Draft, Marine and Coastal Committee, Natural Resource Management Standing Committee, Department of Fisheries and Forestry, Canberra. DAFF 2007. A Strategic Approach to Management of the Ornamental Fish in Australia, Marine and Coastal Committee, Natural Resource Management Standing Committee, Department of Fisheries and Forestry, Canberra. FAO 1999. Ornamental aquatic life: what’s FAO got to do with it? FAO News and Highlights, September. FAO, 1996-2005, FAO Trade Yearbooks 1996 to 2005, FAO, Volumes 83-97, Rome, Italy. Fernando, A. and Phang, P. 1994, Freshwater Ornamental Fish Aquaculture in Singapore, Singapore Polytechnic, Republic of Singapore. Gratzek, J. and Matthews, J. (eds) 1992, The Science of Fish Health Management, Tetra Press, USA. Humphrey, J.D. 1989, Extensive Livestock Industries - the Fish Industry, Australian Veterinary Journal, Vol 66 (20), Hutt, M.D. and Speh, T.W. 1995, Business Marketing Management, A Strategic View of Industrial and Organisational Markets, Dryden Press, USA. Ingram, M. 1987, The Lure of the Other Market, Fish Farmer, May-June issue. Lee, C. 1991, Aquarium Fish have Market Potential, Austasia Aquaculture Magazine, Vol. 5, No. 6, February. Livengood, E. and Chapman, F. 2007, The Ornamental Fish Trade: An Introduction with Perspectives for Responsible Aquarium Fish Ownership, IFAS Extension Paper FA124, University of Florida. Lintermans, M. 2004, Human-Assisted Dispersal of Alien Freshwater Fish in Australia, New Zealand Journal Marine Fresh Research 38, 481–501.

Love, G., Langenkamp, D., Galeano, D. 2004, Australian Aquaculture Statistics— information sources for status and trends reporting. ABARE Report 04.1, vi. Losordo, T. 1998, Recirculating Production Systems: The Status and Future, Part II, Aquaculture Magazine, March/April Issue. Mangosi, S. 1992, Contribution of the Pet Care Industry to the Australian Economy, BIS Shrapnel Pty Ltd, Sydney, McKay, R. and Wharton, J. 1992, A Preliminary Analysis of Ornamental Fish Importation - Brisbane 1985 to 1991. McNee, A., 2002, A National Approach to the Management of Exotic Fish Species in the Aquarium Trade, Bureau of Rural Sciences, Canberra. O'Sullivan, D. 1991, Status of Aquaculture in Australia in 1988/89, Austasia Aquaculture Trade Directory 1991, Turtle Press, Hobart. O'Sullivan, D. 1998, Status of Australian Aquaculture in 1996/97, Austasia Aquaculture Trade Directory 1998, Turtle Press, Hobart. O'Sullivan, D., Savage, J. and Fay, A. 2008, Status of Australian Aquaculture in 2005/06, Austasia Aquaculture Trade Directory 2008, Turtle Press, Hobart. PIJAC 2000, US Ornamental Aquarium Industry. PIJAC 2004. Profile of PIJAC in Australia in 2004, Pet Industry Joint Advisory Council of Australia, Baulkham Hills, NSW. Ploeg, A. 2005, FAO Statistics on the Ornamental Fish Industry. OFI Journal 48:78-79. Ploeg, A. 2006, Long-term Trends in the Worldwide Tropical Fish Trade, Pets International Magazine May. Ploeg, A. 2007, The Volume of the Ornamental Fish Trade, prepared for Ornamental Fish International, August. PSM Group Pty Ltd 1999, Ornamental Finfish Import Risk Analysis — Exposure Pathways Project, Final draft report, prepared for AQIS (unpublished). PSM Group Pty Ltd 2000, Marketing Strategy for the Development of an Ornamental Fish Industry in the Gascoyne Region of Western Australia, prepared for Gascoyne Inland Aquaculture Group. Reddacliff, G. 1984, Diseases of Aquarium Fishes, The University of Sydney - Post- Graduate Foundation in Veterinary Science, Sydney. Sales, J. 2003, Nutrient Requirements of Ornamental Fish, Aquatic Living Resources 16. Stanton, W.J., Etzel, M.J., and Walker, B.J. 1994, Fundamentals of Marketing, McGraw-Hill Inc., New York. Tilzey, R. 2005, A Strategic Approach to the Management of Ornamental Fish in Australia, Bureau of Rural Sciences, Canberra. Treadwell, R., McKelvie, L. and Maguire, G.B. 1992, Potential for Australian Aquaculture, ABARE Research Report 92.2. ABARE, Canberra. Wabnitz, C., Taylor, M., Green, E., Razak, T. 2003, From Ocean to Aquarium - The Global Trade in Marine Ornamental Species, UNEP-WCMC, Cambridge, U.K. Willis, S. 1995, Bioeconomics in Aquaculture - Preliminary Analysis of the Culture Potential of the Freshwater Angelfish - Pterophyllum scalare, Master of Science thesis, University of Tasmania.

Willis, S. 1996, The Ornamental Fish Market in Australia, (unpublished data from internal marketing analysis for Tasmanian Ornamental Fish Farm). Winfree, RA. 1989, Tropical Fish, World Aquaculture, Vol 20, No 3, September. Whittington, R and Chong, R. 2007, Global Trade in Ornamental Fish from an Australian Perspective: The case for revised import risk analysis and management strategies, Preventative Veterinary Medicine 81. Wood, E. 2001, Collection of Coral Reef Fish for Aquaria: Global Trade. In: Conservation Issues and Management Strategies, Marine Conservation Society, Ross-on-Wye.

Websites Accessed:

Australian Bureau of Statistics (ABS) – www.abs.gov.au

Australian Bureau of Agricultural and Resource Economics – www.abare.gov.au

Pet Industry Association of Australia (PIAA) – www.piaa.net.au\

Global Marine Aquarium Database (GMAD) – http://www.unep-wcmc.org/marine/GMAD/index.html

Singapore Aquarium Fish Exporters’ Association (SAFEA) – www.safea.org

The Food and Agriculture Organisation (United Nations) (FAO) – www.fao.org

Appendix 1 Management of Ornamental Fish in Australia

The Australian Government Department of Agriculture, Fisheries and Forestry (DAFF) considers that ornamental fish are well-suited to aquariums, but if released into Australia’s natural waterways, they could threaten Australia’s aquatic environment. In an August 2007 media release the Minister for Agriculture, Fisheries and Forestry, Peter McGauran, said that national regulations concerning the ornamental fish industry in Australia were necessary to make sure ornamental pets don’t become environmental pests / aquatic invaders.

In November 2006 the Natural Resource Management Ministerial Council endorsed the report, “A Strategic Approach to the Management of Ornamental Fish in Australia”. The final edition of the report was released in early 2007 by Ornamental Fish Working Group of the Bureau of Rural Sciences 16. This strategic plan provides a national approach to managing the ornamental fish trade and dealing with associated pest and disease threats. The Council also agreed to provide funding for two years, with an option for a third, to implement the key recommendations of the plan.

Following extensive consultation, the strategic plan presents seven key recommendations for the management and regulation of the trade in ornamental fish in Australia – all of which aim to prevent ornamental aquarium fish and plants from becoming environmental pests / aquatic invaders. These recommendations include: 1. Agree on and adopt a national noxious species list across all jurisdictions, noting links to existing lists and lists under development for marine pest species. 2. Agree to review the status of fish on the ‘grey list’ as a national priority. 3. Establish a scientific/technical working group reporting to the Natural Resource Management Standing Committee (through the Marine and Coastal Committee), to conduct assessments of fish on the grey list over the next 2–3 years. 4. Adopt a regulatory framework and licensing to manage large fish-breeders and ornamental fish importers in each state and territory. 5. Develop control mechanisms for the regulation and management of noxious fish and rare fish (e.g. CITES listed) already in circulation in Australia, again noting links to control plans for marine pests of concern. 6. Initiate a rigorous review of aquatic plants used in the ornamental fish trade, in order to control and regulate the spread of a number of recognised aquatic pest species. 7. Implement a national communication strategy to raise awareness in the community and industry about the management, control and regulation of ornamental fish and invertebrates.

Minister McGauran noted that past efforts to regulate the ornamental fish industry have failed as a result of heavy-handed approaches to regulation and lack of effective consultation with industry. He described the agreement for a common national list of noxious ornamental fish species between all State and Territory governments, as well as the pet industry, as a major step forward.

16 Copies of the report can be downloaded from the BRS website: http://www.brs.gov.au/ornamental

The report will be implemented by the Ornamental Fish Management Implementation Committee (OFMIC) which has been established to coordinate and lead the implementation of this national strategy. The plan will address the need for a process of consultation with stakeholders, including: • national education on the new noxious species list and the new regulatory and management arrangements (government and industry to communicate through agencies and customers); • implementation of new regulatory arrangements by each jurisdiction; and • agreement on management and funding mechanisms to deal with noxious fish being traded and kept in the community.

A national communication plan will form a framework for delivery of many of these objectives. The Marine and Coastal Committee will also need to consider the outcomes of the review by the Aquatic Animal Health Committee of disease risks associated with ornamental fish when that review is finalised and any implications the review may have for future management actions for the ornamental fish sector.

Appendix 2 Survey Questionnaires

Questionnaire for businesses involved in the industry:

EconSearch Pty Ltd 214 Kensington Road Marryatville SA 5068 Tel: 08 8431 5533 Fax: 08 8431 7710 Dosaqua Pty Ltd Email: [email protected] PO Box 647, Henley Beach SA 5022 Contact: Lizzie Clark 08 8355-0277 [email protected] Contact: Dos O’Sullivan

A Study of Ornamental Fish in Australia

Please read this first: • The ornamental fish industry in Australia includes commercial fish breeding facilities, wholesale traders, retail outlets and the hobby sector. It includes a range of aquatic finfish, mollusc, crustacean and other invertebrate species as well as plant used in homes, offices and other commercial premises. For the purposes of this survey, the industry does not include the public or giant aquariums nor involve aquatic amphibians, reptiles or aquatic organisms provided as live feeds for other animals. • Unregulated trade includes: o Importations without specific permits or licences; o The holding/sale of species on the Noxious Fish list (in some states this can include species on the Grey List); and o Sale/swap of aquatic animals without required licenses or permits by collectors, breeders or hobbyists. • Supplier includes licensed collectors and breeders. o Collector is a person/business with the appropriate specific permits or licences who collects (wild catch) aquatic animals for profit. Usually involved with marine species. o Breeder is a person/business with the appropriate specific permits or licences who breeds and sells aquatic animals for profit. • Hobbyist includes three subcategories: o Serious: Person who spends significant time and expenditure (>$1,000/yr) on aquatic animals. Likely to be involved in hobby organisations and regularly show their animals. They may be involved in the selling/swapping/exchange of aquatic animals for accessories, feeds or other animals without a profit focus. o Moderate: A moderate level of annual investment (<$1,000) in animals, however no sales made of aquatic animals or accessories. These can include businesses which display aquatic animals for their customer or staff enjoyment, or individuals involved for own or family enjoyment. o Irregular: Occasional purchases of fish, total expenditure less than $100/year. • Accessories include water treatment chemicals, ornaments, lights, etc. Accessories are sold by Distributors and Retailers.

• Please only include the amounts that can be attributed to your ornamental fish business for the 2006/07 financial year. PART A BUSINESS / INDUSTRY OVERVIEW

1. Which of the following industry sectors best describes your business?

Supplier / Breeder / Wholesaler / Importer Collector

Retailer (Specialist) Retailer (General)

Consumer / Hobbyist (go Other (please specify) onto Part E)

…………………………………….

2. If you indicated more than one sector in Question 1, please indicate your primary activity and describe the nature of your integrated business:

3. What proportion of the industry sector identified above does your business account for (if you indicated more than one sector in Question 1, respond for the sector of most significance to your business)?

Less than 5% 5% to less than 10% 10% to less than 20%

20% to less than 30% 30% to less than 50% 50% or more

4. Please indicate which business type is most applicable to your business:

Family owned Partnership Franchise

Other (specify) …………………………

5. How long have you owned / operated this business? years (Please circle to indicate whether owner or operator)

6. If family owned, how long has the business been owned / operated years by your family?

7. Are you a member of PIAA? Yes / No If so, how long have you been a member? years

PART B CAPITAL

1. In the following table, please include a list of all equipment that you use in your business, including aquarium equipment, sheds/buildings, trailers and motor vehicles (please give values exclusive of GST).

Item Age Current value Replacement cost (yrs) $ $ Aquarium Equipment

- Tanks

- Filters, water treatment

- Pumps

- Aeration

- Lights

- Other

Sheds/Buildings

Motor Vehicles

Trailers

Other (please specify)

2. If this capital is not solely used in your ornamental fish business, what is the percentage of the your capital used for your ornamental fish business?______%

3. If your capital has other uses, what are these uses?

PART C EXPENDITURE

1. Please provide estimates of your direct costs and administrative costs associated your business for the whole of the 2006/07 financial year (please provide values exclusive of GST).

$ Direct Costs (2006/07) (excl. GST)

Consumables

Chemicals

Electricity

Wages

Repairs and Maintenance

Freight and Marketing

Administrative Costs (2006/07) $ (excl. GST)

Insurance (specify type) -

Legal and Accounting

Communication – telephone, email

Rates

Rents

Leasing Charges and Fees

Interest and borrowing costs

Travel, accommodation

Membership, association expenses

Licences / permits

Other expenses (specify)

PART D EMPLOYMENT

1. How many people are employed in your business (average for financial year 2006/07, including yourself, paid employees and unpaid family helpers involved in running the business?

Part Time Year Full-Time Full Time No of Persons Equivalent

Actual 2006/07

Estimated 2007/08

2. Please estimate the number of days in 2006/07 that were spent on these activities by people who were not paid a wage (assuming an average of 8 hours per business day).

Management & Sales and Labour Administration Marketing (days) (days) (days)

You

Family (unpaid)

Other unpaid labour

PART E PURCHASES

1. Estimate the quantity and value of purchases during 2006/07.

Purchases Product Source(s) a Product Type $/Uni $ Collecto Whole- Consumer Qty Units Importer Breeder Retailer t Total r saler / Hobbyist

Freshwater % % % % % % Species *

Marine % % % % % % Species

Others b % % % % % %

Accessorie % % % % % % s

Total a Please refer to page 1 for definitions of product sources. b ‘Others’ could include live rock and coral, aquatic plants, etc.

2. Can you provide a breakdown (percentage of total purchases) for your FOUR major freshwater species groups, put the remainder under the “Others” category:

% of Comments on product sources (imported, Species group freshwater breeder, collector, other) purchases Australian Natives

Catfish

Goldfish & Koi

Barbs & Danios

Live Bearers

Discus & Cichlids

Tetras

Gouramis & Bettas

Miscellaneous

Others

Total 100%

PART F SALES

1. Estimate the quantity and value of sales during 2006/07.

Sales Product Destination(s) a Product Consumer / Hobbyist Type $ Whole- Qty Units $/Unit Export Retailer Total saler Serious Moderate Irregular

Freshwater Species

Marine Species

Others b

Accessorie s

Total a Please refer to page 1 for definitions of product destinations. b ‘Others’ could include live rock and coral, aquatic plants, etc.

2. Can you provide a breakdown (percentage of total sales) for your FOUR major freshwater species groups, put the remainder under the “Others” category:

% of Comments on product destinations (export, Species group freshwater wholesaler, retailer, consumer) sales Australian Natives

Catfish

Goldfish & Koi

Barbs & Danios

Live Bearers

Discus & Cichlids

Tetras

Gouramis & Bettas

Miscellaneous

Others

Total 100%

3. For people / businesses selling to the Consumer / Hobbyist sector, please estimate the number of your clients for each of the three subcategories (based on their annual purchases of aquatic animals). If you can, also provide a guesstimate of the total number of these for your state, as well as for all of Australia.

Serious Moderate Irregular >$1,000/year $100-1,000/year <$100/year

You / Your business

State

National

PART G FURTHER COMMENTS

1 What do you believe are the main areas for growth over the next few years?

a) For the industry (eg. local breeding of imported species, more native species collected or bred).

b) For your business.

2. What do you think are the major impediments or constraints to growth?

a) For the industry (eg. quarantine for imported species, differing regulations between states/territories, unregulated trade).

b) For your business.

3. Unregulated trade:

a) What proportion of your purchases comes from unregulated sources?

b) What are the sources of this unregulated trade (e.g. imports, hobbyist etc)?

c) If possible please provide an estimate of the proportion of your customers stock that would be sourced from unregulated trade?

d) What are the sources of this trade?

e) What would be the main species involved in this unregulated trade?

f) Do you have any other information or comments on the size and/or value of unregulated trade?

4. Are you confident or pessimistic about the future of your business in this industry? Please explain why you think this way?

5. Please provide any additional comments that could assist in preparing the report.

Thank you for completing this survey

Questionnaire for ornamental fish hobbyists:

A Study of Ornamental Fish in Australia

Please read this first: • The ornamental fish industry in Australia includes commercial fish breeding facilities, wholesale traders, retail outlets and the hobby sector. It includes a range of aquatic finfish, mollusc, crustacean and other invertebrate species as well as plant used in homes, offices and other commercial premises. For the purposes of this survey, the industry does not include the public or giant aquariums nor involve aquatic amphibians, reptiles or aquatic organisms provided as live feeds for other animals. • Unregulated trade includes: o Importations without specific permits or licences; o The holding/sale of species on the Noxious Fish list (in some states this can include species on the Grey List); and o Sale/swap of aquatic animals without required licenses or permits by collectors, breeders or hobbyists. • Supplier includes licensed collectors and breeders. o Collector is a person/business with the appropriate specific permits or licences who collects (wild catch) aquatic animals for profit. Usually involved with marine species. o Breeder is a person/business with the appropriate specific permits or licences who breeds and sells aquatic animals for profit. • Accessories include water treatment chemicals, ornaments, lights, etc. Accessories are sold by Distributors and Retailers. • Please only include the amounts that can be attributed to your ornamental fish purchases for the 2006/07 financial year.

PART A OVERVIEW

1. Please indicate which state or territory you were living in during 2006/07

Australian Capital Territory New South Wales

Northern Territory Queensland

South Australia Tasmania

Victoria Western Australia

2. How many fish did you have in your collection during 2006/07

3. Please provide an estimate of the number of ornamental fish collectors in your state or territory. We realise this may be difficult but please provide your best estimate, if possible.

Estimated number or Comments proportion of total

Serious (annual expenditure on fish and accessories of $1,000 or more)

Moderate (annual expenditure on fish and accessories of between $100 and $1,000)

Irregular (annual expenditure on fish and accessories of less than $100)

Total

4. Please comment on the size of your ornamental fish collection compared to other collectors in your state or territory.

PART B PURCHASES

1. Estimate the quantity and value of your purchases during 2006/07.

Purchases Product Source(s) a Product Collecto License Type $/ $ Whole- Qty Unit Importer r (Wild d Retailer Hobbyist Unit Total saler Catch) Breeder

Freshwater % % % % % % Species *

Marine % % % % % % Species

Others b % % % % % %

Accessories % % % % % %

Total

Purchases a Please refer to page 1 for definitions of product sources. b ‘Others’ could include live rock and coral, aquatic plants, etc.

2. Can you provide a breakdown (percentage of total purchases) for your FOUR major freshwater species groups, put the remainder under the “Others” category:

% of Comments on product sources (imported, Species group freshwater breeder, collector, other) purchases Australian Natives

Catfish

Goldfish & Koi

Barbs & Danios

Live Bearers

Discus & Cichlids

Tetras

Gouramis & Bettas

Miscellaneous

Others

Total 100%

3. Thinking about just your purchases from the hobbyist sector please provide an indication of the specific source of the purchase.

Comments (e.g. Proportion of total Marketplace accessories only, specific purchases species)

Auction

Online Auction (e.g. eBay)

Online Forum

Other (specify)

…………………………………

………………………………....

…………………………………

Total 100%

PART C COMMENTS

1 What do you believe are the main areas for growth over the next few years?

a) For the industry (eg. local breeding of imported species, more native species collected or bred).

b) For you specifically.

2. What do you think are the major impediments or constraints to growth?

a) For the industry (eg. quarantine for imported species, differing regulations between states/territories, unregulated trade).

b) For you specifically.

3. Unregulated trade:

a) What proportion of your purchases comes from unregulated sources?

b) What are the sources of this unregulated trade (e.g. imports, hobbyist etc)?

c) What would be the main species involved in this unregulated trade?

d) Do you have any other information or comments on the size and/or value of unregulated trade?

4. Are you confident or pessimistic about the future of this industry? Please explain why you think this way?

5. Please provide any additional comments that could assist in determining the size, value and structure of the ornamental fish industry in Australia.

Thank you for completing this survey

CONFIDENTIALITY AGREEMENT

DATED this………………………day of………………………..., 2007

FROM EconSearch Pty Ltd (ACN 070 281 435) (The Consultant)

TO ……………………………………………… (The Survey Respondent)

AGREEMENT

EconSearch Pty Ltd has entered or intends to enter into discussions and obtain information from the survey respondent in relation to the preparation of A Study of the Ornamental Fish Industry in Australia.

The survey respondent may provide or has provided EconSearch Pty Ltd with information that is of a confidential nature. In order to protect and maintain the confidentiality and value of such information, EconSearch has agreed to provide an undertaking to be bound by the terms and conditions pertaining to this confidentiality agreement.

EconSearch Pty Ltd will:

(a) preserve the strict confidentiality of all oral and written information provided by the survey respondent and take proper and adequate precautions at all times to preserve the confidentiality of the information.

(b) not in any way, without the survey respondent’s prior written consent, use the information for any purpose whatsoever other than in connection with the preparation of ‘A Study of the Ornamental Fish Industry in Australia’.

(c) if necessary, upon request from the survey respondent, promptly return all information (including all copies or reproductions of the same) held by EconSearch Pty Ltd, together with all information and documentation containing, comprising or relating in any way to the information.

(d) at the conclusion of the project, destroy all information provided by survey respondent (including all copies or reproductions of the same).

EXECUTION

______Signature of Authorised Person Signature of Authorised Person (representing EconSearch Pty Ltd) (representing the survey respondent)

______Name of Authorised Person (print name) Name of Authorised Person (print name)

Appendix 3 Ornamental Fish Grey List

Source: developed by the Ornamental Fish Consultative Committee for the Natural Resource Management Ministerial Council.

Appendix 4 Background on the Structure, Size and Value of the Australian Ornamental Fish Industry

Pre-1999 Reports and Reviews

Humphrey (1989) estimated that more than 3,000 retail outlets existed throughout Australia; most being located in the eastern states. The majority of imported fish were purchased by importers located in Melbourne, which was recognised as the trading hub in Australia. He also indicated that there was a small but growing local production industry.

The industry is supplied primarily by wholesalers that have traditionally imported fish from south-east Asian farms and wild fisheries (O'Sullivan 1991). Local production was well under 50% of the total sales and was predominantly goldfish.

A study in 1992 suggested that at least 10% of Australian households kept ornamental fish, and that more than one million Australians (or 6%) could be classified as hobbyists (Mangosi 1992).

Willis (1995) noted that in Australia, the ornamental fish industry is well established, and estimated to be worth over AUD$300 million annually. He stated that the industry was similar in popularity to that in other western countries. The demand for ornamental fish was serviced by a well-established network of commercial breeders, wholesalers and retailers located throughout Australia. Commercial breeders were characterised as small family run operations and being typical of a cottage industry varying in capacity from under 3,000 to 3.3 million ‘tails’ (specimens) per annum. Commercial production was also a relatively new industry in Australia, with operators surveyed being in the industry for average of less than 5 years at the time of the study. Indications were that many operators intended to expand significantly and viewed the quarantine regulations as a competitive advantage which would assist future growth.

AQIS Import Risk Analysis on Live Ornamental Finfish (1999)

An Import Risk Analysis (IRA) was undertaken on live ornamental finfish on behalf of the Australian Quarantine and Inspection Service (AQIS). The report (AQIS 1999) was in response to findings of the World Trade Organisation in 1997 of inconsistency in the quarantine measures applied by Australia to live and non-viable finfish.

As an outcome of this IRA, Australian introduced new policies on the importation of live ornamental finfish; these policies were announced on 19 July, 1999.

A private consulting group (PSM Australia, based in Melbourne) was commissioned by AQIS to report on the characteristics and commercial value of the industry in Australia. Working in association with the Pet Industry Joint Advisory Council of Australia (PIJAC, the precursor to PIAA), the aim was to survey industry to identify and describe: • Each of the sectors involved in the ornamental fish industry, and • The movements of ornamental fish and their associated wastes.

Demand for ornamental fish had experienced explosive growth during the 1970’s. However, in recent times it has become more stable (McKay and Wharton 1992). Demand is expected to continue to grow as household disposable income increases (Treadwell et al. 1992; Willis 1995).

The Australian ornamental fish industry is oligopolistic in nature, being supplied by relatively few Australian farms and overseas exporters (Willis 1995). Whilst the bulk of ornamental fish produced in Australia are sold by wholesalers, some producers utilise several market channels concurrently, selling direct to retailers and hobbyists (Willis 1995; PSM 1999).

The majority of the trade was in freshwater species. Fish originated through imports (the major countries of origin included Singapore, Hong Kong, Malaysia and Indonesia) and through local production, and were then sold to wholesalers and retailers around Australia. Hobbyists were the primary end-users, although some fish were also sold to public aquaria and local breeders. A small number of mostly native ornamental finfish (less than 80,000 fish valued at $1.33 million) was also exported from Australia to countries including Japan, Singapore and the United Kingdom (ABS by request).

Estimates of sales in Australia in 1995/96 varied considerably between industry and government sources, ranging from between 12 and 18 million fish per annum, however, PSM (1999) suggested the total was likely to be around 14 million. Around 50-60% of the fish were bred locally. These fish were valued at $25 million annually (farm gate / wholesale). Industry estimates put the total retail value of the industry at around $50 to $60 million per annum.

In the mid to late 1990s the estimated annual worth of the industry, including sales of accessories such as food, medications and tanks, was $135-150 million (Jared Patrick, pers. comm. 1999). By 2004, the retail value of aquarium fish $65 million (PIJAC 2004). These fish were sold in around 1,500 shops employing around 9,000 staff (PIJAC 2004). Consumer expenditure on fish and the various goods and services relating to pet fish was estimated to be in the region of $400 million per annum (PIJAC 2004).

Licensed Importers and Wholesaler Sector

AQIS (1999) and PSM (1999) reported that in 1998 there were 32 registered importers, and up to 25 wholesalers operating in Australia, with approximately 30% being occasional operators (Rick Datodi, Aquarium Industries, pers. comm. 1999). Asia was the major source of their imports, goldfish around 15% of imports, also neon tetras, white cloud mountain minnows, guppies, platys and swordtails.

Imports had decreased substantially from their peak of 11.5 million fish in 1977/78 (Lee, 1991) to their 1997/98 level of approximately 6.0 to 7.5 million fish annually. The number of imports of ornamental fish into Australia has steadily decreased since 1980/81 (Appendix Figure 4.1). Willis (1995) attributed this gradual decline to: • The introduction of 14 day quarantine periods in 1984; • Decline in the number of species that can be imported due to international shortages and CITES-associated regulations; • Increases in domestic production of ornamental fish; and • Changes in spending patterns of disposable income.

Numbers and Value of Imports

The reported number and value of ornamental fish imports into Australia for the period 1980/81 to 1999/00 is provided in Appendix Table 4.1 and Appendix Figure 4.1. The average unit value of these imports is presented in Appendix Figure 4.2.

Appendix Table 4.1 Number and value of imports of freshwater ornamental fish imported to Australia, 1980/81 to 1999/00

Ornamental Fish Imports Year Quantity ('000) Value ($'000 fob) Unit Price ($/fish) 1980/81 9,718 1,426 0.15 1981/82 9,387 1,596 0.17 1982/83 8,909 1,777 0.20 1983/84 9,645 1,929 0.20 1984/85 8,735 1,988 0.23 1985/86 8,146 2,100 0.26 1986/87 7,419 2,067 0.28 1987/88 6,833 1,840 0.27 1988/89 6,362 1,690 0.27 1989/90 7,552 2,107 0.28 1990/91 7,622 2,294 0.30 1991/92 7,597 2,385 0.31 1992/93 7,269 2,438 0.34 1993/94 7,753 2,720 0.35 1994/95 6,978 2,152 0.31 1995/96 6,309 2,119 0.34 1996/97 a 6,002 2,208 0.37 1997/98 a 6,593 1,973 0.30 1998/99 a 7,483 2,107 0.28 a,b 4,968 1,548 0.31 1999/00 a In 1996/97 ABS changed its reporting method to include both freshwater and marine imports together. b Import data for 1999/00 include to January 2000 only. . Source: Lee (1991) and ABS (by request).

The Australian Bureau of Statistics (ABS) changed its reporting methods for the importation of ornamental fish in the late 1990s; before then they had only included freshwater fish imports in their figures. Consequently, ABS data combined freshwater and marine ornamentals from 1996/97 onwards. However, as marine fish generally average only 2% of the total number of fish imported (PSM, 1999) it did not affect the data significantly.

Appendix Figure 4.1 Number and value of imported ornamental fish, 1980/81 to 1999/00

12,000 3,000

10,000 2,500

8,000 2,000

6,000 1,500

4,000 1,000 Value ($'000) Quantity ('000) Quantity

2,000 500

0 0

6 6 a b /83 /84 8 /93 /94 9 , 5/ 5/ a 80/81 82 83 84/858 86/8787/88 89/9090/91 92 93 94/959 9 9 19 1981/8219 19 1 19 19 19 1988/8919 19 1991/9219 19 1 19 98/99 1996/971997/98 a19 a99/00 19

Quantity Value

Source: Lee (1991) and ABS (by request).

Appendix Figure 4.1 Average price of imported ornamental fish, 1980/81 to 1999/00

0.40

0.35

0.30

0.25

0.20

0.15

Average Price ($/fish) 0.10

0.05

0.00

9 0 0 /81 /82 /83 /85 /88 /8 /9 /91 /92 /93 /94 /95 /96 /99 /0 8 9 9 81 84 92 95 987 998 1980 19 1982 1983/8419 1985/861986/871 198 198 1990 1991 19 1993 1994 19 1996/971997/981 199

Source: Lee (1991), ABS (by request) and EconSearch analysis.

Willis (1995) and Lee (1991) suggest that the FOB values provided by ABS do not give a realistic value of imported fish. Costs such as freight, customs clearance fees, import tariffs, insurance and documentation costs, and the 21% wholesale tax, significantly increase the unit cost of fish imported into Australia. Furthermore, the requirement to maintain fish through a compulsory quarantine period adds significant costs to the import process. Lee (1991) indicates that the following additional costs are considerable: • 100 per cent for freight, customs and documentation; • 12 per cent for labour costs during the compulsory quarantine period; and • 18 per cent for mortalities during the compulsory quarantine period.

A realistic value for imported fish is, therefore, at least 130% greater than the quoted FOB figures. This real value of imported fish is often used by wholesalers to establish benchmark prices for domestic producers. Thus, if 130% was added to the reported value of imported fish, this would provide a more accurate indication of the potential market worth of Australian produced fish (Willis 1995).

Port of Entry

PSM (1999) suggested that the ports of entry for imported ornamental fish into Australia represent the major markets for these fish. Data indicated that the relative number of imports into Australian states rose between 1996/97 and 1999/2000, with Victoria being by far the largest importer of fish, taking over 53% of Australian imports. Melbourne is recognised as the major centre for importation and distribution of ornamental fish in Australia (Willis 1995, PSM 1999).

One point of note regarding state imports, is the increasing number of fish entering through Queensland. Queensland’s share of imports has increased from 18% in 1996/97 to 24% in 1999/2000.

Country of Origin

Australian wholesalers import fish from a large number of countries. ABS data (Appendix Table 4.3) indicate that over the late 1990s, 24 countries supplied Australian importers. The large number of exporting countries, compared with previous data is indicative of the fact that ABS data now combine freshwater and marine fish. The vast majority of imports from Pacific Island countries (such as Fiji, Micronesia, Christmas Island, Cocos Island, New Caledonia, Solomon Islands and Vanuatu) are of very small numbers of marine fish.

PSM (1999) indicated that the majority of imports originated from Asian countries, with their study indicating that 96% of Australian imports originated from Asia. ABS data in Appendix Table 4.3 also indicated that over 96% of Australian imports originated from Asia. The largest importer was Singapore (41.5%), followed by Hong Kong (16.7%), Malaysia (15.3%) and Indonesia (8.1%).

Appendix Table 4.3 Ornamental fish imports by country of origin,1997/98 to 1999/00

1997/98 1998/99 1999/00 a Country of Origin Quantity Value Quantity Value Quantity Value ('000) ($'000) ('000) ($'000) ('000) ($'000) Christmas Island 11 2 0 0 0 0 Germany 202 164 181 165 122 116 Hong Kong 1,650 294 1,758 341 828 189 Indonesia 505 234 1,013 319 402 178 Malaysia 1,200 315 775 219 760 243 Marshall Islands 16 4 0 0 16 3 New Zealand 11 1 5 1 1 1 Philippines 26 40 0 0 5 16 Singapore 2,393 671 2,918 761 2,062 541 Sri Lanka 287 69 367 96 276 75 Thailand 276 118 301 105 228 84 Others 16 63 159 91 269 99

Total 6,593 1,973 7,478 2,099 4,968 1,547 a Data for 1999/00 are to February 2000. Source: ABS (by request).

Germany was also a significant source of fish, accounting for 2.4% of imports in 1999/00, increasing from 1.34 per cent of imports in 1992/93 (PSM 1999). The species imported from Germany are generally high value species such as discus (Symphosodon discus) and other cichlid species that have been produced in Germany since World War II (Willis 1995). The fact that Germany is able to export fish profitably to countries such as Australia indicates that the export of high valued fish is a viable concern for western countries.

No Government data was available regarding the importation of specific species or species groups (Willis 1995). However, an industry survey undertaken by PSM (1999) provided a breakdown of numbers of species groups (Appendix Table 4.4). The survey indicated that Goldfish accounted for approximately 22% of total imports by numbers, with Tetras and livebearers also being major imported species groups.

Appendix Table 4.4 Industry estimates of the % of major fish groups imported in 1998 (adapted from PSM 1999).

Quantity Imported Proportion of Total Species Group (no.) (%) Cichlids 717,900 9.6% Livebearers 1,189,022 15.9% Gouramis 478,600 6.4% Tetras 1,398,410 18.7% Barbs 792,682 10.6% Catfish 605,728 8.1% Goldfish 1,675,101 22.4% Rainbows 0 0.0% Other Natives 0 0.0% Other Species 625,154 8.4%

Total 7,482,597 100.0% a Based on import total of 7,478,132 for 1998-99 and data presented by PSM (1999). These are calculated values only and may vary from actual values for these groups of fish. Source: PSM (1999)

Characteristics of Importers and Wholesalers

PSM (1999) reported that of the 30 wholesalers visited or surveyed, only one did not import fish; that wholesaler dealt exclusively with locally bred fish. The other wholesalers sourced their fish from imports, other wholesalers, local breeders (including commercial producers and hobbyists) and local divers (in the case of marine fish and invertebrates).

All but two wholesalers surveyed were located in urban areas and were distant from natural waterways and aquaculture operations. The two rural-based wholesalers were located within one kilometre of seasonal creeks. It is understood that one of these wholesalers had been required by Local and State Government Authorities to have 'spill channels' constructed to ensure that all run-off from the property was diverted to prevent water from entering the seasonal creek.

More than half of the wholesalers surveyed indicated that sales were increasing and that they were expanding the size of their operations. The majority of wholesalers surveyed indicated that the proportion of locally produced fish that they sourced had increased significantly over the past ten years. Approximately half of the ornamental fish sold in Australia (both by value and number) were derived from local sources (Jared Patrick, Bay Tropical Fish Farm and Rick Datodi, Aquarium Industries, pers. comm. 1999).

The number of years of operation ranged from two to 37 years (average 17.3, standard deviation 15 years), with the years of experience of the major operators being 10 to 37 years (average 28, standard deviation 12 years). Very few staff received any form of formal training in aquaculture/fisheries or related studies. However, one Melbourne wholesaler offered a structured job training program to staff, which consisted of weekly formal lessons and work experience. Staff commenced training at Level 1 and progressed to Level 4. The type of work they were permitted to undertake related to their level, with only Level 4 staff being permitted to work in the quarantine rooms.

The number of full-time staff varied at the wholesalers surveyed with up to 23 staff employed at the largest facility and only one staff member at the smallest facility. The number of part-time staff ranged from 0 to eight (average 1.5, standard deviation 1.6 years) and full-time staff numbers ranged from one to 33 (average 6.6, standard deviation 5.6 years).

PSM (1999) reported a significant variation in the design and operation of wholesaler facilities. Of the sites surveyed, all wholesalers used aquaria, with 15% also using large plastic or fibreglass tanks, and 8% also using ponds/dams. Tanks were generally operated as static (low water exchange), recirculating systems, or a combination of these; none of the wholesalers surveyed operated flow through systems. The cleanliness of facilities varied, with larger operations tending to be better organised and cleaner on superficial inspection. Public access to fish holding rooms was denied at all premises surveyed, although many do allow retail customers limited access for the selection of fish.

Stocking densities used by wholesalers were generally low (38%), or low to high (38%) with the remaining 24% of wholesalers using high stocking densities. It is generally accepted in the aquaculture industry that low stocking densities allow for easier management of tank systems in terms of water quality and disease control and thus better health management of fish (Muir, 1982; Losordo, 1998). Therefore, the use of low to medium stocking densities is likely to allow better control of water quality and management of fish health than higher densities.

High stocking densities are normally accompanied with the use of prophylactic treatments. Examples of prophylactic treatments used at the sites surveyed include formalin, malachite green, methylene blue, copper and other commercial preparations based on these chemicals. Prophylactic use of antibiotics included the use of sulphonamides, triple sulphur and oxytetracycline. Examples of chemical and pharmacological treatments used in the ornamental fish industry are given in Reddacliff (1984) and Gratzek and Matthews (1992).

Of the wholesalers surveyed, 54% did not mix species in tanks since it was considered easier to harvest, sort and pack fish for transport if they are kept separate. It was also noted that species were not mixed in any quarantine rooms inspected during the survey. Mixing of species only occurred in the non-quarantine sections of facilities.

Breeder Sector

Breeding of ornamentals is undertaken by licensed producers (aquaculture licence or permit) as well as by hobbyists (see below).

Opportunities for the production of ornamental fish to replace imports to Australia have been highlighted by several authors (O'Sullivan 1991, Lee 1991, Treadwell et al. 1992, Willis 1995). Lee (1991) and Willis (1995) suggested these opportunities to be: • rising freight and other associated importation costs (quarantine); • imposition of wholesale tax on imported fish; • increasing fears of disease importation; and • international shortages of some species.

In the 1970’s, a small pioneering industry developed in response to these opportunities. However, it was not until the late 1980’s that ornamental fish production became a significant sector in the Australian aquaculture industry (Treadwell et al. 1992, Willis 1995).

Information provided by State Government Fisheries Departments indicated that in late 1990s that there were between 80 and 110 commercial and/or licensed breeders throughout Australia. However, it was difficult to ascertain whether all the licensed operators were producing fish in commercial quantities. Industry sources indicated that a large percentage was not operating commercially. An estimate of 20 to 30 commercial/semi-commercial operations was suggested with some unlicensed, semi- commercial operations in existence (Rick Datodi, Aquarium Industries, pers. comm. 1999).

Characteristics of Producers

Willis (1995) conducted a survey of commercial producers and identified the following characteristics: • A variety of culture tanks were used, with combinations common; static culture systems were most common (62.5%), with recirculating systems also used (25%), and flow-through mainly used in pond culture (12.5%). • Facilities were often housed in insulated buildings, with outdoor ponds and tanks used where climate allows. • Operations varied in production from 2,700 to 3.3 million fish per annum. • 83 per cent of farms surveyed indicated that they were expanding production capacity.

Willis (1995) concluded that commercial production of ornamental fish was a relatively new industry to Australia. This was indicated by the range in years of operation from one to 14 years (average 4.9, standard deviation 4.6 years). However, the years of experience ranged from five to 30 years (average 12, standard deviation 7.6 years), with some operators having over 40 years experience. The majority of operations commenced since the imposition of quarantine periods in the mid 1980’s (Willis 1995). Many operators entered the industry as hobbyists, with their breeding facilities expanding over several years into commercial operations.

Commercial breeders were typically family-run operations with few outside employees (Willis 1995). They were exclusively involved in freshwater species, with no operations commercially producing marine ornamental fish in Australia in the 1990s. However, industry sources indicated that commercial production marine species would commence with pilot scale production of marine clownfish (Amphiprion sp.) being undertaken in a few states (Ric Fallu, Northern Territory Fisheries, pers. comm. 1999).

The design and operation of commercial production facilities was discussed in detail in Willis (1995), with much of the data gathered in the PSM (1999) study verifying that previous work. The commercial breeders surveyed in that study used combinations of aquaria (50%), tanks (35%), ponds and dams (41%), with some using a mix of systems, being largely dependent on the species of fish produced. Static (62.5%) and recirculating systems (25%) were most common. However, some outdoor operations utilised flow through (12.5%) reticulation to maintain water quality in ponds. Some tank systems were located inside insulated buildings, depending upon on the species being cultured and the location of the farm.

The size of operations surveyed by PSM (1999) varied considerably with between 2,700 and 3.3 million fish bred per year. This supports previous work by Willis (1995) who found large differences in the size and operation of commercial breeders. Of the commercial breeders surveyed, 83% indicated that they were looking to expand production capacity to meet the huge demand for quality, locally produced fish.

Since the study by Willis (1995), local production of ornamental fish has continued to increase, as has the number of participants in the commercial breeding sector. Willis (1995) indicated that there were 34 licensed ornamental fish farms in Australia in 1994. Results of the PSM (1999) survey indicated that in excess of 100 licensed and/or commercial breeders of ornamental fish currently exist in Australia. However, it should be noted that not all licensed farms currently produced fish.

A comparison of individual farm survey data between Willis (1995) and this study indicates that for five farms surveyed in both studies, production has increased by between 150% and 600% during the period between studies. Production of exotic tropical species and of Australian native species has dominated this growth. However, an industry survey (Willis 1995) reported approximately twice the production of that determined by O’Sullivan (1998) (as shown in Table 5.11). Willis (1995) provides the following reasons for these discrepancies: • in some states ornamental fish producers are not licensed; • in some states production data are not collected, rather estimates from an industry representative are used; and • some producers understate their production.

Species Being Cultured/Bred

PSM (2000) reported that since the early 1990s, the variety of species produced in Australia has increased from around 40 species (Willis 1995, Appendix Table 4.5) to over 100 species (various industry sources). Although a large range of species were being produced, the majority of production involved the culture of just two species, namely Koi carp and goldfish. Data from PSM (1999) indicate that up to 90% of Australian production involves these two species alone.

However, the variety of native species being produced or caught and offered for sale in the ornamental markets is expanding. Various sources within the industry predict that both total production and the number of species under production will continue to increase. The following table indicates the likely numbers of species being produced in Australia on either a commercial or semi-commercial basis. It should be noted that the number of species being bred by hobbyists could significantly increase these numbers.

Appendix Table 4.5 Introduced ornamental fish species bred in Australia

Number of Common Name - Scientific Name Species Gouramis and Bettas 9 + Family group – Anabantidae Example species: Lace Gouramis – Trichogaster sp Barbs, Carps and Minnows 15+ Family group – Cyprinidae Example species: Tiger Barb – Barbus tetrazona Catfish 12+ Family group – Callichthyidae and Loricariidae Example species: Bronze catfish – Corydoras aeneus Cichlids 30 – 70+ Family group – Cichlidae Example species Angelfish – Pterophyllum scalare Goldfish Carassius auratus (varieties including Shubunkins, Comets, Red 1 Caps, Orandas, Black Mohrs, Calico Fans) Koi carp - Cyprinus carpio 1 Livebearers Family group – Poeciliidae 4 Example species: Guppy – Poecilia reticulata Walking fish - Axolotl sp. 1 Tetras 15+ Family group – Characidae Example species: Serpae Tetra – Hyphessobrycon callistus

Source: (adapted from Willis 1995).

In addition to the native species listed, there are many other species kept by native fish enthusiasts. This part of the hobby is often focused on investigating the biology and breeding of species as a study for natural history and or conservation of the species.

Locations and Seasons of Production

The greatest level of production of ornamental fish occurred in Victoria, where approximately four million fish are produced annually, with six culture permits currently issued (the vast majority were goldfish). New South Wales had the second highest level of production with approximately 3.8 million fish being produced annually, and 17 culture permits currently issued (the majority were Koi carp). The other states and territories shared the remaining balance of production.

There appears to be little seasonal fluctuation in ornamental fish sales in Australia, with demand fairly constant throughout the year (Humphrey 1989, Willis 1995). Retailers therefore, require regular shipments of fish on a weekly or fortnightly basis. In turn, wholesalers require regular shipments of fish to maintain their stocks of fish for retailers (Willis 1995). This is an important issue for producers, who must ensure that the production and distribution of their fish provides for continuity of supply.

Appendix Table 4.6 Number and value of ornamental fish produced in Australia from 1989-90 to 1994-95

1989/90 1990/91 1991/92 1992/93 1993/94 1994/95

Species Number Value Number Value Number Value Number Value Number Value Number Value ('000) ($'000) ('000) ($'000) ('000) ($'000) ('000) ($'000) ('000) ($'000) ('000) ($'000) Angelfish 37 32 90 85 97 95 103 98.3 103 98.5 104 92.5 Anabantids - - 10 6 27 13 71 39 101 65.3 111 74.3 Catfish 10 6 30 18 86 34 102 40.3 159 65.8 146 61.8 Cichlids 30303231.43328.73727.169827982 Goldfish 2,525 1,021 2,719 1,072 2,919 1,141 3,268 1,265 3,604 1,307 3,704 1,392 Gouramis - - 10 6 27 13 51 25 56 27.3 87 56 Koi Carp a 1,010 1,010 2,012 2,012 2,023 2,023 2,024 2,024 3,060 3,060 3,260 3,260 Livebearers 258 72 110 35 110 35 100 27 106 29.9 141 43.3 Tetras - - - - 20 5.4 48 12.9 58 15.3 69 21.3 Other 32 23 13 11.1 17 14.4 11 8 62 54.5 65 57 Australian Native 17 43 16 62.8 20 92.2 22 105 25 116.2 31 128.6 Total 3,919 2,237 5,042 3,339 5,379 3,495 5,837 3,672 7,401 4,922 7,796 5,269 nda = no details available, a Based on average farm gate value for Koi of $1 per unit after O'Sullivan (1992) Source: Willis (1995)

Appendix Table 4.7 Australian aquaculture production of freshwater ornamental fish 1994/95 to 1999/2000

1994/95 1995/96 1996/97

Species Number Value Number Value Number Value ('000) ($'000) ('000) ($'000) ('000) ($'000) Native Species 24,400 62,800 85,400 132,500 103,200 416,700 Exotic Species 4,295,900 2,052,800 3,869,400 2,177,300 4,872,900 2,504,800 Total 4,320,300 2,115,600 3,954,800 2,309,800 4,976,100 2,921,500 n/a indicates data not available Source: O’Sullivan (2002).

Characteristics of the Collector Sector

Marine fish were collected from all Australian states except ACT (AQIS 1999). Over 500 species of marine fish, belonging to 50 families, are targeted for the aquarium fish trade (Lyle Squire, pers. comm. 1999). According to Couchman and Beumer (1993) the main species include: • Angel fish (Family Pomacanthidae) • Bannerfish (Family Heniochus) • Basslets (Family Serranidae) • Butterfly fish (Family Chaetodontidae) • Clownfish and Damsel Fish (Family Pomacentridae) • Surgeonfishes Tangs (Family Acanthuridae) • Trigger fish (Family Balistidae) • Wrasses (Family Labridae)

Characteristics of the Retail Sector

Industry sources indicated that there in 1995/96 there were between 2,000 and 3,000 retail outlets for ornamental fish nationwide, approximately 1,000 of these operating part-time, periodically or temporarily (Rick Datodi, Aquarium Industries, pers. comm. 1999). PIJAC indicated that more than 2,269 were operating in 1997/98. There are approximately 300 specialist retailers nationwide and their numbers are declining (Rick Datodi, Aquarium Industries, pers. comm. 1999).

Retail sales of ornamental fish and associated accessories were valued at $200 and $300 million per annum (Willis 1995). Whilst a wide variety of fish species, aquatic plants and invertebrates, with 500 to 1,000 different species are offered for sale, however, approximately 20 species comprised 80% of sales of ornamental fish, based on numbers (Humphrey, 1989) (see Appendix Table 4.7). Cost was an important factor in hobbyist preferences; the popular species generally retailed for between $2.00 and $6.00 each (Willis, 1996). More expensive fish retailed for up to $1,000 each (marine species).

PSM (1999) reported that the retail sector contained three different groups: • General Retailers – those retailers which carry a range of pets and accessories including ornamental fish (32% of the 85 shops surveyed); • Specialist Retailers – those retailers that only stock ornamental fish and associated products (50% of the 85 shops surveyed); and • Importer Retailers – those retailers that specialise in ornamental fish and that import their own fish (18% of the 85 shops surveyed).

Of the 85 retail operations visited or surveyed, PSM (1999) reported all were located within urban areas and are likely to be distant from natural waterways and aquaculture operations. However, several exceptions were known to exist, with one general retailer being located within 200 metres of a creek. That operator disposed of effluent water into the stormwater, which in turn, flowed into the creek. Also, it must be remembered that some cities have Central Business Districts (CBD’s) close to natural waters (eg. Sydney, Perth, Hobart) and in other instances robust species such as carp and eels may inhabit degraded city waterways.

The PSM (1999) survey revealed that general retailers have been in operation for two to eleven years (average 5.69, standard deviation 2.3 years), specialist retailers for one to 23 years (average 10.5, standard deviation 5 years) and importer shops for one to 28 years (average 15.8, standard deviation 8.6 years).

In most states there were few if any Government licensing requirements for pet shops. Tasmanian operators required a permit for fish to be shipped from mainland States. The only requirements in other states of Australia were for local government/council operating permits which most operators indicated they had. Other retailers were not sure if they had council permission, as they had purchased the business as a 'going concern' and assumed that relevant licences were in place.

The majority of retailers surveyed (93%) used glass aquaria to house and display their fish. Approximately 7% of general retailers and 4% of specialist retailers used large fibreglass or plastic tanks, and 7% of general retailers and 4% of specialist retailers also had fish displayed in above ground ponds. Most retailers (100% for specialist retailers, 82% of general retailers) used glass aquaria as static, independent systems with each aquarium having some form of internal biofilter, either under-gravel or box filters. The remaining retailers combined several aquaria into recirculating systems that shared common plumbing and biofiltration systems. Of the sites using recirculating systems, many used some form of disinfection/sterilisation system in the form of ultraviolet filters or ozone treatment systems to prevent spread of disease.

The size of operations also varied considerably between retailers (PSM 1999). Small general retailers had as few as 12 tanks, with the larger specialist retailers having up to 300 tanks. As a result, the volume of water held by retailers varied from as little as 600 litres up to 80,000 litres. The average volume at specialist retailers was over 18,800 litres and for general retailers it was almost 6,900 litres.

Based on the PSM (1999) survey results, staff numbers appeared consistent across the retail sector, with one to four full-time staff and one to two part-time staff. The larger specialist retailers had up to 13 full time staff. Most retailers are managed by an owner/operator and in many cases are operated as a family business.

Of all the retailers surveyed, only 42% indicated that they were planning to expand or that their sales were increasing. The remaining retailers indicated that they had no plans to expand and that the market was either static or in a few cases was slightly decreasing.

PSM (1999) reported that most retailers displayed clean aquaria with the fish obviously well maintained. Water quality appeared adequate on visual inspection and only a few retailers (15%) had patently unhealthy or dead fish present in the tanks.

Virtually all retailers mixed different species of fish in the one tank. Mixing of species depended mainly on compatibility between the species, so-called community fish being generally kept mixed, with up to five different species common in one tank. Large specimens and aggressive species were generally kept separate from other fish.

The majority of sites surveyed kept fish at either low densities (47%) or medium densities (37%), with only 16% of sites maintaining fish at high densities.

Characteristics of the Hobbyist Sector

The number of hobbyists has been estimated to be in excess of one million throughout Australia (Humphrey 1989, Mangosi 1992, Willis 1995) and possibly up to 2.5 million (Jared Patrick, Bay Tropical Fish Farm, pers. comm. 1999).

The hobbyist sector includes ‘typical’ hobbyists who may keep only a few fish and ‘enthusiasts’ who may keep several hundred ornamental fish and participated in breeding and showing. Many have garden ponds which are usually stocked with goldfish.

Willis (1995) undertook a preliminary study of hobbyists in Australia and classified hobbyists into three groups: • Casual Hobbyists (38%) - These hobbyists are generally inexperienced, having kept fish for less than one year. They have little understanding of the principles of fish keeping and disease interactions and are most likely to experience problems in maintaining fish. Irresponsible disposal of sick/dead fish, water, packaging and other wastes is common due to ignorance of correct disposal techniques/procedures. • Long Term Hobbyists (54%) - These hobbyists have been keeping fish for more than one year (perhaps as long as 40 years) and are more experienced in maintaining fish than casual hobbyists. Members of this group are likely to read widely on the subject and can solve many of their disease problems themselves. They are more likely to be more responsible in disposal of sick/dead fish, water and packaging and are more likely to buy expensive (sometimes including smuggled) fish. • Serious Hobbyists (8%) - These hobbyists have been keeping fish for years and could best be described as enthusiasts. They are likely to have several aquaria and may have a dedicated fish room (which may house several hundred tanks). Many serious hobbyists breed fish and will sell or swap these with other hobbyists or retailers.

Willis (1995) reported that there could be a bias with regard to survey returns towards the serious and long term hobbyists as the casual hobbyists were less likely to have confidence or the inclination to participate in the survey. The average experience of hobbyists surveyed was 15 years, they had from one to several hundred tanks and

held up to 3,800 litres of water. When all hobbyists were considered, the average number of tanks was likely to be less than two with a total volume of around one to two hundred litres of water.

Characteristics of the Public Aquarium Sector

Whilst industry sources indicate that there are many hundreds of aquaria open to the general public the vast majority are small scale, holding less than 500 fish at any one time. There are probably less than 10 public or ‘giant’ aquaria and zoos found throughout Australia that stock a range of mainly native species of freshwater or marine finfish, invertebrates and other aquatic animals. Display specimens of local species are purchased through wholesalers, wild collectors and through the aquarium’s own collection license and divers.

Minimal numbers of fish originate from overseas, since public aquaria generally maintain Australian species only. Public aquaria do not directly import fish from overseas.

New specimens are kept in 'quarantine' for several weeks before introduction to the main display aquaria. During this time the fish are monitored for signs of disease, with affected fish either treated for the disease or destroyed in order to prevent introduction of diseases to display aquaria. Stocking densities are generally low, since displays typically aim to mimic a natural environment.

Public aquaria are mostly a dead end distribution route, with live fish entering them, never being moved to other sites. Specific breeding programs are not common, however, some species are kept in large display aquaria in the hope of establishing self-supporting breeding populations. At least three public aquarium are known to sell eggs or juveniles of marine specimens, usually to other aquaria.

State licensing requirements vary but in general, a specific aquaculture and or fisheries licence or permit is required, with often strict regulation of the species and numbers to be stocked, and collection procedures, particularly when the conservation status for a species is high.

PSM (2000) indicated that this sector was very small, limited to a few thousand fish being held at public aquaria at any one time in Australia – as suggested on Section 4.3 of this report, this is a misprint, the estimate was for ‘a few hundred thousand fish’; around 90% are marine species. Industry contacts suggest that public aquaria source their marine fish from collectors/divers (sometimes they will do their own collection under permit) and their freshwater fish from wholesalers. They include dolphins, seals, turtles and large sharks and rays in their displays.

Characteristics of the Export Sector

Only commercial breeders and divers are involved in this sector.

PSM (1999) reported that while there were no firm data to support it, the sale of Australian native fish appeared to have good export potential. Several operators had exported a number of Australia native species with mixed success (Rick Datodi, Aquarium Industries, pers. comm., 1999). The mixed success had been due to an inability of Australian exporters to meet demand for fish and a lack of experience/knowledge of live fish transportation techniques (Glenn Briggs, Aquarium Industries, pers. comm., 2000). PSM (1999) reported that there was some potential to develop markets for 'odd-ball' or new species. The problem would be getting enough fish to market size to make it worthwhile.

Annual export data collected by the Australian Bureau of Statistics suggested that typically around 200-300,000 freshwater fish were exported each year (Appendix Table 4.8). However, PSM (1999) suggested that the major increases in exports during 1992/93 and 1993/94 were considered to be due to the inclusion of native fish fingerlings (mostly silver perch, Bidyanus bidyanus) which were exported to China (through Hong Kong) and Taiwan for aquaculture purposes.

Appendix Table 4.8 Quantity of Australian exports of freshwater ornamental fish (no.)

Year Native Species Exotic Species Total 1990/91 48,000 3,800 51,800 1991/92 108,200 5,700 113,900 1992/93 707,600 272,400 980,000 1993/94 169,900 1,247,200 1,417,100 1994/95 237,100 3,400 240,500 1995/96 216,300 7,400 223,700 1996/97 n.a. n.a. 369,900 1997/98 n.a. n.a. 95,270 n/a = data not available, as no longer separated by ABS Source: ABS (by request).

Survey data summarised in PSM (1999) suggested that only one of the producers surveyed indicated that they export fish, exporting approximately 6,000 fish in 1998. This suggested that the majority of fish exported were in fact wild caught or included high value live fish for human consumption, however, there were no data to confirm this. This would explain the large increases in value in recent years, particularly in 1996/97 when large quantities were exported to Hong Kong (Appendix Table 4.9).

Appendix Table 4.9 Value of Australian exports of freshwater ornamental fish ($’fob)

Year Native Species Exotic Species Total 1990/91 600,000 50,000 650,000 1991/92 700,000 70,000 770,000 1992/93 1,200,000 100,000 1,300,000 1993/94 1,300,000 300,000 1,600,000 1994/95 1,300,000 50,000 1,350,000 1995/96 2,600,000 80,000 2,680,000 1996/97 n.a. n.a. 5,278,000 1997/98 n.a. n.a. 1,329,500 n/a = data not available, as no longer separated by ABS Source: ABS (by request).

Appendix Table 4.10 summarises the number and value of exports to the ten major countries of destination for Australia exports for the past three years.

Appendix Table 4.10 Australian exports of ornamental fish for 1997-98 to 1999 – Jan 2000

1997/98 1998/99 1999/00 a Country of Destination Quantity Value Quantity Value Quantity Value ('000) ($'000) ('000) ($'000) ('000) ($'000) China 0 32 5 14 0 0 Germany 4 32 5 34 1 15 Guam 0 0 19 102 0 0 Hong Kong 11 143 12 131 5 329 Japan 17 362 11 336 7 242 Netherlands 3 16 6 39 0 19 Singapore 7 59 3 33 0 3 Taiwan 2 24 3 36 2 39 United Kingdom 3 42 7 78 6 49 USA 27 374 23 433 17 309 Other 5 248 5 29 5 35

Total 79 1,329 100 1,268 43 1,041 a Data for 1999/00 are to February 2000. Source: ABS (by request).

Appendix Table 4.11 provides data for the past three years exports for Australian states. These data indicate that Queensland is the major source of exports in Australia.

Appendix Table 4.11 Exports by state for 1997/98 to 1999/00

1997/98 1998/99 1999/00 a State of Origin Quantity Value Quantity Value Quantity Value ('000) ($'000) ('000) ($'000) ('000) ($'000) New South Wales 5 64 6 40 1 11 Queensland 60 954 91 965 39 880 South Australia n/a n/a 0 47 n/a n/a Victoria 3 154 2 107 0 38 Northern Territory n/a n/a n/a n/a 2 10

Western Australia 11 156 2 108 1 189 n/a = not available a Data for 1999/00 are to February 2000. Source: ABS (by request).

Appendix 5 Ornamental Fish Industry Imports

Appendix Table 5.1 Ornamental fish imports into Australia, quantity (no) by state of final destination, 2002/03 to 2006/07

Quantity (no) State 2002/03 2003/04 2004/05 2005/06 2006/07 Australian Capital Territory 0 0 262 0 0 New South Wales 2,014,736 2,696,628 3,068,994 2,277,383 2,181,908 Northern Territory00000 Queensland 3,263,365 3,550,232 5,024,416 5,715,238 7,342,659 South Australia 106,857 108,940 197,930 170,627 150,018 Tasmania 01234 Victoria 4,554,013 5,408,074 5,695,577 7,791,168 7,489,209 Western Australia 709,340 781,909 820,012 579,993 546,602

Total 10,648,311 12,545,784 14,807,193 16,534,412 17,710,400 Source: ABS (by request)

Appendix Table 5.2 Ornamental fish imports into Australia, value ($000) by state of final destination, 2002/03 to 2006/07

Value ($'000) State 2002/03 2003/04 2004/05 2005/06 2006/07 Australian Capital Territory00200 New South Wales 916 898 1,190 1,051 1,144 Northern Territory00000 Queensland 1,311 1,490 1,822 1,780 2,026 South Australia 39 31 48 44 41 Tasmania 01234 Victoria 1,352 1,414 1,412 1,904 1,819 Western Australia 252 252 276 262 278

Total 3,870 4,088 4,751 5,044 5,312 Source: ABS (by request)

Appendix Table 5.3 Coral imports into Australia, quantity (kg) by state of final destination, 2002/03 to 2006/07 a

Quantity (kg) State 2002/03 2003/04 2004/05 2005/06 2006/07 Australian Capital Territory00000 New South Wales 29,436 30,616 20,663 31,348 26,697 Northern Territory 165 0 105 428 50 Queensland 13,634 17,737 26,433 9,324 61,005 South Australia0000500 Tasmania 00000 Victoria 7,090 9,220 16,994 18,520 11,201 Western Australia 7,080 4,472 2,502 7,326 5,302

Total 57,405 62,045 66,697 66,946 104,755 a Coral imports are most likely used for non-ornamental fish related purposes such as jewellery and shop displays. Source: ABS (by request)

Appendix Table 5.4 Coral imports into Australia, value ($000) by state of final destination, 2002/03 to 2006/07 a

Value ($'000) State 2002/03 2003/04 2004/05 2005/06 2006/07 Australian Capital Territory00000 New South Wales 184 166 193 172 112 Northern Territory 2 0 1 10 2 Queensland 127 167 211 91 301 South Australia00005 Tasmania 00000 Victoria 44 86 90 137 104 Western Australia 23 16 15 27 36

Total 381 434 510 436 560 a Coral imports are most likely used for non-ornamental fish related purposes such as jewellery and shop displays. Source: ABS (by request)

Appendix Table 5.7 Ornamental fish imports into Australia, quantity (no) by country of origin, 2002/03 to 2006/07 Quantity (no) Country of Origin 2002/03 2003/04 2004/05 2005/06 2006/07 China 1,687,228 1,953,098 1,969,949 1,595,240 1,912,661 Country Unknown 0 0 5,474 0 0 Fiji 6,625 10,306 2,407 0 0 Germany 154,990 150,044 117,009 161,466 83,303 Hong Kong (SAR of China) 517,317 316,169 299,816 934,406 167,710 India 865 1,176 0 0 6,960 Indonesia 1,894,510 2,081,266 3,202,690 4,179,402 6,125,253 Kenya 0000782 Malaysia 1,323,842 1,669,285 1,940,306 2,317,595 1,640,440 Mali 0 0 0 65,462 369,083 Malta 0003,9730 Marshall Islands 0 0 0 12,611 0 Philippines 16,195 32,218 49,043 42,474 66,255 Saudi Arabia 0 0 1,341 602 388 Senegal 00005,810 Singapore 3,405,354 3,956,575 4,610,041 4,622,809 4,482,300 Solomon Islands 5,820 18,298 14,176 11,000 5,113 South Africa 0729000 Sri Lanka 830,499 944,886 1,167,274 1,161,493 1,517,771 Suriname 0 5,495 0 1,128 15,287 Switzerland 0 0 0 8,080 0 Thailand 788,806 1,387,296 1,401,755 1,365,876 1,276,827 Tonga 9020000 United States of America 2,847 4,596 4,440 28,237 7,306 Vanuatu 12,362 14,346 21,470 27,205 32,047 All Countries 10,648,311 12,545,783 14,807,191 16,539,059 17,715,296 Source: ABS (by request)

Appendix Table 5.8 Ornamental fish imports into Australia, value ($000) by country of origin, 2002/03 to 2006/07 Value ($'000) Country of Origin 2002/03 2003/04 2004/05 2005/06 2006/07 China 411 374 426 375 451 Country Unknown00200 Fiji 2940800 Germany 252 252 212 255 202 Hong Kong (SAR of China) 122 82 61 106 49 India 120010 Indonesia 676 702 1,014 1,039 1,221 Kenya 000010 Malaysia 549 555 624 669 563 Mali 00037163 Malta 00010 Marshall Islands00040 Philippines 36 50 81 73 80 Saudi Arabia 0 0 12 6 4 Senegal 00002 Singapore 1,095 1,173 1,449 1,514 1,494 Solomon Islands1730263222 South Africa 01000 Sri Lanka 283 311 292 269 343 Suriname 05089 Switzerland 00060 Thailand 273 377 365 437 438 Tonga 20000 United States of America 40 63 59 86 104 Vanuatu 83 71 117 127 146 All Countries 3,870 4,087 4,749 5,042 5,311 Source: ABS (by request)

Appendix Table 5.9 Coral imports into Australia, quantity (kg) by country of origin, 2002/03 to 2006/07 a Quantity (kg) Country of Origin 2002/03 2003/04 2004/05 2005/06 2006/07 China 800000 Country Unknown100000 Denmark 01000 France 7,605 7,921 4,395 10,388 15,173 India 150000 Indonesia 0 102 1 0 84 Ireland 0229000 Israel 001,65000 Italy 888 35 1 0 32 Japan 2,892 10,811 12,059 6,065 22,880 Kenya 902 4,507 8,430 514 9,127 Korea, Dem People's Rep 0 0 3,100 0 0 Malaysia 0 0 7 46 21 Malta 07000 Marshall Islands 11 55 113 18 346 Netherlands 00000 New Zealand 824 451 476 899 336 Peru 03,000000 Philippines 7 211 157 60 0 Solomon Islands 30,730 29,679 18,096 25,431 14,746 Switzerland 0 0 18 0 21,400 Taiwan 0012000 Vanuatu 589 1,679 2,399 890 6 Viet Nam 2,530 2,529 3,647 11,329 13,188 All Countries 47,083 61,217 54,669 55,640 97,339 a Coral imports are most likely used for non-ornamental fish related purposes such as jewellery and shop displays. Source: ABS (by request)

Appendix Table 5.10 Coral imports into Australia, value ($000) by country of origin, 2002/03 to 2006/07 a Value ($'000) Country of Origin 2002/03 2003/04 2004/05 2005/06 2006/07 China 00000 Country Unknown00000 Denmark 01000 France 19 22 19 66 23 India 10000 Indonesia 03102 Ireland 00000 Israel 00300 Italy 26002 Japan 930413088 Kenya 2250981087 Korea, Dem People's Rep00200 Malaysia 0 0 3 26 16 Malta 01000 Marshall Islands 2 21 45 8 51 Netherlands 00000 New Zealand 8 5 5 10 8 Peru 01000 Philippines 18410 Solomon Islands 242 235 164 197 103 Switzerland 0010104 Taiwan 00300 Vanuatu 7 16 21 12 4 Viet Nam 1311134649 All Countries 327 411 421 406 536 a Coral imports are most likely used for non-ornamental fish related purposes such as jewellery and shop displays. Source: ABS (by request)

Appendix 6 Ornamental Fish Industry Exports

Appendix Table 6.1 Live Syngnathid exports from Australia, quantity (no) by state of origin, 2002/03 to 2006/07

Quantity (no) State 2002/03 2003/04 2004/05 2005/06 2006/07 Australian Capital Territory00000 New South Wales00000 Northern Territory00000 Queensland 414000 South Australia1,978546000 Tasmania 0 283 160 420 0 Victoria 660 838 877 429 445 Western Australia000020

Total 2,642 1,681 1,037 849 465 Source: ABS (by request)

Appendix Table 6.2 Live Syngnathid exports from Australia, value ($000) by state of origin, 2002/03 to 2006/07

Value ($'000) State 2002/03 2003/04 2004/05 2005/06 2006/07 Australian Capital Territory00000 New South Wales00000 Northern Territory00000 Queensland 414000 South Australia4512000 Tasmania 0 3 3 32 0 Victoria 233 173 325 220 160 Western Australia00001

Total 282 202 328 252 161 Source: ABS (by request)

Appendix Table 6.3 Ornamental fish (native species) exports from Australia, quantity (no) by state of origin, 2002/03 to 2006/07

Quantity (no) State 2002/03 2003/04 2004/05 2005/06 2006/07 Australian Capital Territory00000 New South Wales0000641 Northern Territory 0 0 970 212 2,590 Queensland 41,928 16,107 18,761 16,644 33,325 South Australia 0 14,000 0 73 30,029 Tasmania 777 512 108 1,355 629 Victoria 131 144 562 10 0 Western Australia 810 2,332 743 2,496 2,376

Total 43,646 33,095 21,144 20,790 69,590 Source: ABS (by request)

Appendix Table 6.4 Ornamental fish (native species) exports from Australia, value ($000) by state of origin, 2002/03 to 2006/07

Value ($'000) State 2002/03 2003/04 2004/05 2005/06 2006/07 Australian Capital Territory00000 New South Wales000017 Northern Territory007723 Queensland 941 479 450 957 1,025 South Australia050615 Tasmania 15 43 4 27 17 Victoria 47 3 17 0 0 Western Australia35120582949

Total 1,038 649 537 1,026 1,147 Source: ABS (by request)

Appendix Table 6.5 Ornamental fish (non-native species) exports from Australia, quantity (no) by state of origin, 2002/03 to 2006/07

Quantity (no) State 2002/03 2003/04 2004/05 2005/06 2006/07 Australian Capital Territory00000 New South Wales 0 0 1,161 0 0 Northern Territory00000 Queensland 34,809 40,199 15,589 18,744 6,701 South Australia010000 Tasmania 00000 Victoria 3,156 590 25,103 55 304 Western Australia 267 0 41 210 95

Total 38,232 40,799 41,894 19,009 7,100 Source: ABS (by request)

Appendix Table 6.6 Ornamental fish (non-native species) exports from Australia, value ($000) by state of origin, 2002/03 to 2006/07

Value ($'000) State 2002/03 2003/04 2004/05 2005/06 2006/07 Australian Capital Territory00000 New South Wales 0 0 22 0 0 Northern Territory00000 Queensland 350 554 396 153 202 South Australia00000 Tasmania 00000 Victoria 4397324 Western Australia130343

Total 407 564 428 160 228 Source: ABS (by request)

Appendix Table 6.7 Coral exports from Australia, quantity (kg) by state of origin, 2002/03 to 2006/07 a

Quantity (kg) State 2002/03 2003/04 2004/05 2005/06 2006/07 Australian Capital Territory00000 New South Wales00000 Northern Territory00000 Queensland 0000892 South Australia00000 Tasmania 00000 Victoria 00000 Western Australia00000

Total 0000892 a Coral and similar materials, unworked or simply prepared but not otherwise worked. Source: ABS (by request)

Appendix Table 6.8 Coral exports from Australia, value ($000) by state of origin, 2002/03 to 2006/07 a

Value ($'000) State 2002/03 2003/04 2004/05 2005/06 2006/07 Australian Capital Territory00000 New South Wales00000 Northern Territory00000 Queensland 000018 South Australia00000 Tasmania 00000 Victoria 00000 Western Australia00000

Total 000018 a Coral and similar materials, unworked or simply prepared but not otherwise worked. Source: ABS (by request)

Appendix Table 6.9 Live Syngnathid exports from Australia, quantity (no) by country of destination, 2002/03 to 2006/07 Quantity (no) Country 2002/03 2003/04 2004/05 2005/06 2006/07 France 70000 Germany 16257000 Hong Kong (SAR of China) 0 0 43 39 67 Indonesia 00080 Ireland 2550000 Italy 0001560 Japan 405 570 278 311 339 Korea, Republic of 0 13 150 0 5 Malaysia 003500 Singapore 6 0 10 13 0 Spain 0 40 0 0 12 Switzerland 801000 Taiwan 20 0 12 0 0 Thailand 00045 United Kingdom820000 United States of America 2,076 1,381 499 318 37 Total 2,875 2,261 1,037 849 465 Source: ABS (by request)

Appendix Table 6.10 Live Syngnathid exports from Australia, value ($000) by country of destination, 2002/03 to 2006/07 Value ($000) Country 2002/03 2003/04 2004/05 2005/06 2006/07 France 60000 Germany 76000 Hong Kong (SAR of China) 003617 Indonesia 00060 Ireland 80000 Italy 0 0 0 42 0 Japan 78 63 75 118 71 Korea, Republic of 04303 Malaysia 00300 Singapore 15 0 13 34 0 Spain 05007 Switzerland 14 0 10 0 0 Taiwan 70300 Thailand 000212 United Kingdom 30000 United States of America 145 123 219 45 52 Total 282 202 328 252 161 Source: ABS (by request)

Appendix Table 6.11 Ornamental fish (native species) exports from Australia, quantity (no) by country of destination, 2002/03 to 2006/07 Quantity (no) Country 2002/03 2003/04 2004/05 2005/06 2006/07 Belgium-Luxembourg3000000 Brunei Darussalam014,000000 Canada 5000354 China 00003 Denmark 0 0 0 35 0 Fiji 2,187 2,790 1,450 0 0 France 16 0 24 447 0 Germany 1,405 2,070 963 290 869 Hong Kong (SAR of China) 753 1,096 1,326 2,518 1,699 Indonesia 0 0 911 218 202 Italy 1,2130000 Japan 2,239 2,018 2,087 2,994 3,101 Kiribati 000022 Korea, Republic of 17 10 0 126 0 Malaysia 2000050,128 Netherlands 0 0 937 720 1,453 Netherlands Antilles 0 0 0 127 0 Russian Federation 0 0 0 62 16 Ship & Aircraft Stores00000 Singapore 2,201 707 402 874 1,002 Slovenia 0 0 1,000 0 0 South Africa 540000 Spain 0 0 0 10 0 Switzerland 00050 Taiwan 260 92 231 454 674 Thailand 0 5 0 350 45 United Kingdom 7,134 643 0 0 168 United States of America 25,842 9,664 11,813 11,560 9,854 Total 43,646 33,095 21,144 20,790 69,590 Source: ABS (by request)

Appendix Table 6.12 Ornamental fish (native species) exports from Australia, value ($000) by country of destination, 2002/03 to 2006/07 Value ($000) Country 2002/03 2003/04 2004/05 2005/06 2006/07 Belgium-Luxembourg 80000 Brunei Darussalam 05000 Canada 1300022 China 000028 Denmark 00080 Fiji 810500 France 8 0 2 22 0 Germany 26 94 53 27 220 Hong Kong (SAR of China) 34 31 39 70 59 Indonesia 00255 Italy 350000 Japan 344 258 113 132 145 Kiribati 00004 Korea, Republic of 2 8 0 16 0 Malaysia 300037 Netherlands 0 0 18 27 38 Netherlands Antilles 00030 Russian Federation 00072 Ship & Aircraft Stores00000 Singapore 8 17 19 65 28 Slovenia 0 0 34 0 0 South Africa 80000 Spain 00050 Switzerland 00030 Taiwan 713251921 Thailand 030411 United Kingdom 5580061 United States of America 478 202 227 613 467 Total 1,038 649 537 1,026 1,147 Source: ABS (by request)

Appendix Table 6.13 Ornamental fish (non-native species) exports from Australia, quantity (no) by country of destination, 2002/03 to 2006/07 Quantity (no) Country 2002/03 2003/04 2004/05 2005/06 2006/07 Belgium-Luxembourg1940000 Canada 326 105 74 136 0 China 2,416 0 110 0 152 France 4330000 Germany 478 300 230 0 0 Hong Kong (SAR of China) 2,358 667 627 1,686 1,368 Italy 0 10 270 0 0 Japan 6,370 2,767 4,188 1,334 1,495 Malaysia 000030 Netherlands 0 4,736 0 5 28 Ship & Aircraft Stores 0 0 0 88 0 Singapore 7 0 25,050 59 188 Switzerland 0425000 Taiwan 291 1,474 339 0 0 United Kingdom 138 1,608 1,233 870 710 United States of America 25,221 30,443 10,219 15,539 3,189 Total 38,232 42,535 42,340 19,717 7,160 Source: ABS (by request)

Appendix Table 6.14 Ornamental fish (non-native species) exports from Australia, value ($000) by country of destination, 2002/03 to 2006/07 Value ($000) Country 2002/03 2003/04 2004/05 2005/06 2006/07 Belgium-Luxembourg 40000 Canada 52340 China 30 0 45 0 16 France 50000 Germany 752000 Hong Kong (SAR of China) 66 22 20 33 37 Italy 0 11 11 0 0 Japan 9065865441 Malaysia 00004 Netherlands 0 65056 Ship & Aircraft Stores00070 Singapore 10533 Switzerland 03000 Taiwan 6 413 141 0 0 United Kingdom 5 25 21 19 18 United States of America 189 365 255 48 105 Total 407 978 608 173 231 Source: ABS (by request)

Appendix Table 6.15 Coral exports from Australia, quantity (kg) by country of destination, 2002/03 to 2006/07 a Quantity (kg) Country 2002/03 2003/04 2004/05 2005/06 2006/07 Canada 0000652 Germany 0000160 Netherlands 000080 Total 0000892 a Coral and similar materials, unworked or simply prepared but not otherwise worked. Source: ABS (by request)

Appendix Table 6.16 Coral exports from Australia, value ($000) by country of destination, 2002/03 to 2006/07 a Value ($000) Country 2002/03 2003/04 2004/05 2005/06 2006/07 Canada 000011 Germany 00003 Netherlands 00003 Total 000018 a Coral and similar materials, unworked or simply prepared but not otherwise worked. Source: ABS (by request)

Appendix 7 Marine Species Collected in Australia

Appendix Table 7.1 Selected marine species collected in Australia

Family Group Common Name - Scientific Name Anemonefish Skunk Clownfish - Amphiprion perideraion Maroon Clowns - Premna biaculeatus Skunk Clownfish - Amphiprion perideraion Clown Anemonefish - Amphiprion percula Aust. Black Ocellaris - Amphiprion ocellaris - AUST. Brown Clownfish - Amphiprion akindynos Tomato Clown - Amphiprion melanopus Orange-fin Clownfish - Amphiprion chrysopterus Clarks Anemone fish - Amphiprion clarkia Red Tomato Clown - Amphiprion frenatus Flame Clown-Coral Sea - Amphiprion melanopus Angelfish Blackspot Angel - Geniacanthus melanospilos Blueface Angel - Pomacanthus xanthometapon Pearl Scale Angelfish - Paracentropyge multifasciata Black Spot Angel - Genicanthus mealanospilos Watanabes Angelfish - Genicanthus watanabei Emperor Angelfish - Pomacanthus imperator Semicircle Angel - Pomacanthus semicirculatus Regal Angelfish - Pygoliptes diacanthus Lamark's Angel - Geniacanthus lamarki Semicircle Angel - Pomacanthus semicirculatus Six-bar Angelfish. - Pomacanthus sextriatus White Tail Pygmy Angel - Centropyge flavicauda Flagfin Angel - Apolemichthys trimaculatus Personifer Angel - Chaetodontoplus meredithi Bicolor Angelfish - Centropyge bicolor Coral Beauty - Centropyge bispinosus Colin's Pygmy Angelfish - Centropyge colini Lemon Peel Angel - Centropyge flavissimus Herald's Angelfish - Centropyge heraldi Pearlscale/Lemonpeel Cross - Centropyge vroliki/flavissimus Scribled Angel - Chaetodontoplus duboulayi Midnight Angel - Centropyge nox Scribbled Angel - Chaetodontoplus doublayi Keyhole Angel - Centropyge tibicen Pearl Scale Angel - Centropyge vroliki Flame Angel - Centropyge loriculus Blackfin Herald's Angelfish - Centropyge woodheadi (Black Fin) Assorted Fish Rough Scale Soldierfish - Plectrypops lima Many Lined Sweetlip - Plectorhincus goldmanni Asst. sweetlip - Plectorhinchus sp. Teira Batfish - Platax teira Clown Sweetlip - Plectorhinchus chaetodonoides Striped Catfish - Plotosus lineatus Lori's Anthias - Pseudanthias lori Batfish - Platax specie Panda Sweetlip - Plectorhinchus picus Soap Fish - Pogonoperca punctata Bicolour Anthias - Pseudanthias bicolor Flame Basslet Anthias - Pseudanthias cooperi Twotone Anthias - Pseudanthias dispar Assorted Fish Threadfin Anthias - Pseudanthias huchtii

Family Group Common Name - Scientific Name (continued) Pinate Batfish - Platax pinnatus Stocky Anthias - Pseudanthias hypselasoma Eeltail Catfish - Paraplotosus specie Amethyst Anthias - Pseudanthias pascalus Painted Anthias - Pseudanthias pictilis Sandperch - Parapercis sp. Yellow-spotted Scorpion - Sebastapistes cyanostigma Square-Block Anthias - Pseudanthias pleurotaenia Assorted Squirrelfish - Neoniphon specie Multicoloured Dottyback - Ogilbyina novaehollandiae Red Harlequin Fish - Othos dentex Longnose Hawkfish - Oxycirrhites typus White-line Hawkfish - Paracirrhites arcatus Blackside Hawkfish - Paracirrhites forsteri Bicolour Goatfish - Parupeneus bardaranoides Assorted Goatfish - Parapeneus sp. Orbicular Batfish - Platax orbicularis Blue Devil - Paraplesiops meleagris Bicolour Goatfish - Parupeneus barberinoides Gold Goatfish - Parupeneus cyclostomus Sea Moth - Pegasus sp. Blue Butterfish - Pentapodus sp. Flashlight Fish - Phoyoblepharon palpebratus Weedy Seadragon - Phyllopteryx taeniolatus Dot-dash Goatfish - Parapeneus barberinus Ocellated Dragonet - Synchiropus ocellatus Bridled Monicle Bream - Scolopsis bilineatus Monacle Bream - Scalopsis bilineatus Parrot Fish - Scarus specie Spotfin Squirrelfish - Neoniphon sammara Scorpionfish - Scorpaenid specie Pyjama Cardinal - Sphaeramia nematoptera Scats - red and black - Selenotoca specie Sunburst/Hawk Anthias - Serranocirrhites latus Squirrel fish assorted - Sargocentron species Reef Stonefish - Synanceia verrucosa Redcoat Squirrelfish - Sargocentron rubrum Dragonet - Synchiropus specie Leaf Scorpionfish - Taeniolatus triacanthus Blue-lined hulafish - Trachinops brauni Yellow-headed Hulafish - Trachinops noarlungae Blue Headed Hula Fish - Trachinops taeniatus Lyretail Trout - Variola albimarginata Coronation Cod - Variola louti Blue Lined Sea Bream - Symphorichthys spilurus Fusilier - Pterocaesio specie Fairy Basslet - Pseudanthias squamipinis Purple Queen Basslet - Pseudanthias tuka Long Fin Anthias(Australian Colour) - Pseudanthias ventralis Yellow Dottyback - Pseudochromis fuscus Royal Dottyback - Pseudochromis paccagnellae Red-Banded Wrasse - Pseudolabrus biserialis Sabre Squirrelfish - Sargocentron Spiniferum Marr's Fusilier - Pterocaesio marri Anthias/ Basseletts - Pseudanthias specie Ragged-finned Firefish - Pterois antennata Assorted Fish Butterfly Cod - Pterois specie (continued) Red Firefish/Butterfly Cod - Pterois volitans

Family Group Common Name - Scientific Name Deepwater Sailfin Anthias - Rabaulicthys suzukii Sargassum Fish - Histrio hstrio Tailspot Squirrel - Sargocentron caudimaculatum Crowned Squirrelfish - Sargocentron diadema Samuari Soldierfish - Sargocentron ittodai Cardinal - Pterapogon mirifica Crested Morwong - Cheilodactylus vestitus Swallowtail Hawkfish - Cyprinocirrhites polyactis Blue and Golde Fusilier - Ceasio teres Brown-Barred Rockcod - Cephalopholis boenak Blue-spotted Rock Cod - Cephalopholis cyanostigma Coral Cod - Cephalopholis miniata Strawberry Rockcod - Cephalopholis spiloparaea Flagtail Cod - Cephalopholis urodata Trevally - Carangoides specie Magpie Perch - Cheilodactylus nigripes Blue & Gold Fusilier - Caesio teres Five-lined Cardinalfish - Cheilodipterus quinquelineatus Dwarf Hawkfish - Cirrhitichthys falco Pixy Hawkfish - Cirrhitichthys oxycephalus Hawkfish - Cirrhitichthys specie Pineapple Fish - Cleidopus gloriamaris Pipefish - Corythoichthys species Polkadot Grouper/ Barramundi Cod - Cromiliptes altivelis Oblique-Lined Dottyback - Cypho purpurascens Bicolor Parrotfish - Cetoscarus bicolor Blue Assessor - Assessor macneilli Flame Hawkfish - Neocirrhites armatus Estuarine Stonefish - Synanceia horrida Razor Fish/Shrimp Fish - Aeliscus strigatus Anglerfish - Antennarius specie Yellow Striped Cardinals - Apogon cyanosoma Assorted Cardinalfish - Apogon specie Blue Fin Trevally - Caranx melampygus Yellow Assessor - Assessor flavissimus Tomato Cod - Cephalopholis sonnerati Hawkfish - Assorted Hawkfish Flutemouth/Trumpetfish - Aulostomus chinensis Bearded Brotula - Brotula multibarbata Black Eeltail Catfish - Brotula species Green Jobfish - Aprion virescens Red Bass - Lutjanus bohar Pot Bellied Seahorse - Hippocampus abdominalis Western Spiny Seahorse - Hippocampus angustus Coral Seahorse - Hippocampus barbouri Asian Tropical Seahorse - Hippocampus kuda Brazilian Seahorse - Hippocampus reidi Starks Tilefish - Hoplolatilus starki Barramundi (Natural Colour Morph) - Lates calcarifer Banded Frogfish - Halophryne diemensis Mangrove Jack - Lutjanus argentimaculatus Bluelined perch - Lutjanus kasmira Paddletail Snapper - Lutjanus gibbus Fumanchu - Dendrochirus biocellatus Red Emperor - Lutjanus sebae Assorted Fish Leopard Cod - Cephalopholis leopardis (continued) Panda Perch - Macolor niger Flagtail Blanquillo - Malacanthus brevirostris

Family Group Common Name - Scientific Name Stripey Fodotballer - Microcanthus strigatus Yellowfin Goatfish - Mulloidichthys vanicolensis Soldierfish - Mypristis sp. Long Nose Emperor - Lethrinus olivaceous Banded Pipefish - Doryrhamphus dactyliophorus Dwarf Lionfish - Dendrochirus brachypterus Tropical/Ribboned Seadragon - Haliichthys taeniophorus Painted Sweetlip - Diagramma pictum Bluestripe Pipefish - Doryhamphus excisus Zebra Lionfish - Dendrochirus zebra Slender Suckerfish - Echeneis naucrates Eel Pout (Orange) - Eel Pout(Orange) Red Seaperch - Ellerkeldia rubra Old Wife - Enoplosus armatus Coral Rockcod - Epinephelus corallicola Flowery Cod - Epinephelus fuscoguttatus Giant Grouper - Epinephelus lanceolatus Mozaic Leatherjacket - Eubalichthys mosaicus Barred Soapfish - Diploprion bifasciatum Potato Cod - Epinephelus tukula Blue Maori - Epinephelus cyanopodus Golden Trevally/Pilotfish - Gnathanodon speciosus Gold-lined Sea Bream - Gnathodentex aureolineatus Blennys and Gobies Lyretail Bicolor Blenny - Plagiotremus laudandus Flagtail Goby - Parapercis sp. Mud Skipper - Periopphthalmus species Highfin Dottyback - Ogilbyina velifera Girdled Goby - Priolepis cincta Firetail dottyback - Pseudochromis flammicauda Sandperch - parapercis specie Redspotted Goby - Parapercis schaminslandi Spinecheek Goby - Oplopomus oplopomus Queensland Dottyback - Ogilbyina queenslandiae Multicoloured Dottyback - Ogilbyina novoaehollandiae Fire Goby - Nemateleotris magnifica Yellow Dottyback - Pseudochromis fuscus Elegant Firefish - Nemateoleotris decora Spotted Sandpearch - Parapercis millepunctata Elegant Goby - Valenciennea decora Coral Sea Blenny - Meicanthus specie Zebra Goby - Pterleotris zebra Gold Head Goby - Valenciennea strigata Orange Dashed Goby - Valenciennea puellaris Dragonet - Synchiropus specie Twostripe Goby - Valenciennea helsdingenii Colourful Dottyback - Pseudochromis novaehollandiae Twinspot Goby - Signigobius biocellatus Two-tone Dartfish - Pterleotris evides Pale Dartfish - Ptereleotris microlepis Spot-tail Dart - Ptereleotris heteroptera Midnight Dottyback - Pseudochromis paranox Royal Dottyback - Pseudochromis paccagnellae Long-finned Goby - Valenciennea longipinnis Obliquelined Dottyback - Cypho purpurescense Blennys and Gobies Shrimp Goby - Ctenogobiops specie (continued) Lawnmower Blenny - Crossosalarias macroapilus Blenny - Cirripectes sp. Croucher - Caracanthus specie

Family Group Common Name - Scientific Name Goldspotted Rockskipper - Blenniella chrysosplilos Yellow Blenny - Ecsenius midas Old Glory - Amblygobius rainfordi Blue Assessor - Assessor mcneil Yellow Assessor - Assessor flavissimus Chocolate Goby - Amblygobius phaelaena Shrimp Gobies - Amblyeleotris sp. Ocellated Dragonet - Synchiropus ocellatus Coral Sea Lyretail Blenny - Meicanthus reticulatus Blue Blanquillo - Malacanthus latovittatus Orange-striped Goby - Amblygobius decussatus Fourline Blenny - Escenius aequalis Canary Blenny - Meicanthus atrodorsalis Lined Fangblenny - Meiacanthus grammistes Striped Fangblenny - Meicanthus grammistes Flagtail Blanquillo - Malacanthus brevirostris Rockskipper Blenny - Istinblennius sp. Orange-Spottend Goby - Istigobius Rigilius Tiger Blenny - Escenius tigris Bicolor Blenny - Escenius bicolor Blenny - Escenius specie Starks Tilefish - Hoplotatilus starcki Shortbodied Blenny - Exallias brevis Beautiful Goby - Exyrias bellissimus Coral Hopper - Gobiodon species Butterflyfish & Orange-banded coralfish - Coradion chrysozonus Bannerfish Teardrop Butterflyfish - Chaetodon unimaculatus Vagabonds Butterfly - Chaetodon vagabundas Redfin Butterflyfish - Chaetodon trifasciatus Double-Saddled Butterflyfish - Chaetodon ulietensis Margined Coralfish - Chelmon marginalis Muller's Butterfly - Chelmon muelleri Copperband Butterfly - Chelmon rostratus Cross: Beaked/Margined - Chelmon rostratus/marginalis Talma - Chelmonops truncatus Highfin Coralfish - Coradion altivelis Western Australian Butterfly - Cheatodon assarius Forceps Fish - Forcipiger flavissimus Longnoseed Coralfish - Forcypiger longirostris Pyramid Butterfly - Hemitaurichthys polylepis Bannerfish - Heniochus accuminatus Pennant Bannerfish - Heniochus chrysostomus Schooling Bannerfish - Heniochus diphreutes Singular Bannerfish - Heniochus singularius Humpheaded Bannerfish - Heniochus varius Moonlighter - Tilodon sexfaciatum Morish Idol - Zanclus cornutus Chevroned Butterflyfish - Chaetodon trifascialis Bannerfish - Heniochus specie Masked Bannerfish - Heniochus monoceros Golden-striped Butterfly - Chaetodon aureofaciatus Ovalspotted Butterflyfish - Chaetodon speculum Ocellated Coralfish - Parachaetodon ocellatus Butterflyfish & Highfin Coralfish - Caradion altivelis Bannerfish West Australian Butterfly - Chaetodon assarius (continued) Threadfin Butterfly - Chaetodon auriga Triangular Butterfly - Chaetodon baronessa Bennet's Butterfly - Chaetodon bennettae

Family Group Common Name - Scientific Name Speckled Butterflyfish - Chaetodon citrinellus Saddled Buterflyfish - Chaetodon ephippium Dusky Butterflyfish - Chaetodon flavirostris Guenthers butterfly - Chaetodon guentheri Klein's Butterflyfish - Chaetodon kleini Rainford's Butterfly - Chaetodon rainfordi Dotted Butterfly - Chaetodon semion Orangebanded Coralfish - Caradion chrysostomus Lined Butterflyfish - Chaetodon lineolatus Reticulated Butterflyfish - Chaetodon reticulatus Latticed Butterflyfish - Chaetodon rafflesi Bluespot Butterfly - Chaetodon plebius Dot-and-dash Butterfly - Chaetodon pelewensis Ornate Butterfly - Chaetodon ornatissimus Meyers Butterfly - Chaetodon meyerii Merten's Butterflyfish - Chaetodon mertensii Blackback Butterflyfish - Chaetodon melanotus Racoon Butterflyfish - Chaetodon lunula Damselfish Fijian Damsel - Chrysiptera taupou Yellow Damsel - Pomacentrus specie Honey Damsel - Neoglyphidodon nigroris Reticulated Damsel - Dascyllus reticulatus Honey-Head Damsel - Dischistodus prosopotaenia Bowtie damsels - Neoglyphidodon melas Humbugs - Dascyllus aruanus Yellowtail Damsel - Neopomacentrus azysron Regal Damsel - Neopomocentrus cyanomos McCulloch's Damsel - Parma mccullochi Yellow Ambon Damselfish - Pomacentrus amboinensis Neon Damsel - Pomacentrus coelestis Blue Chromis - Pomacentrus pavo Princess Damsel - Pomacentrus vaiuli Richardson's Reef-Damsel - Pomachromis richardsoni Talbots Damsel - Chrysiptera talboti Domino Damsel - Dascyllus trimaculatus Lemon Damsel - Pomacentrus moluccensis Darkfin Chromis - Chromis atripes Purple Fusilier Damsel - Lepidozygus tapeinosoma Spiny Chromis - Acanthochromis polyacanthus Golden Damsel - Amblyglyphidodon aureus Staghorn Damsel - Amblyglyphidodon curacao Starck's Damselfish - Chrysiptera starckii Ambon Chromis - Chromis amboinensis Sergeant Major - Abudeduf sp. Half & Half Damsel - Chromis iomelas Blackheaded Puller - Chromis klunzingeri Yellowfin Damsel - Chrysiptera flavipinnis Barrier Reef Chromis - Chromis nitida Chromis species - Chromis specie Ternate Chromis - Chromis ternatensis Vanderbilts Damsel - Chromis vanderbilti Green Chromis - Chromis viridis Damselfish Orange Tail Blue Damsel - Chrysiptera cyanea (continued) Bicolor Chromis - Chromis margaritifer Rolland's Demoiselle - Chrysiptera rollandi Sharks, Rays & Australian Lemon Shark - Negaprion acutidens Sawfish Shark Ray (Dinosaur) - Rhina ancylostoma Ornate Wobbegong Shark - Orectolobus ornatus

Family Group Common Name - Scientific Name Western Wobbegong - Orectolobus sp. Tawny Nurse Shark - Nebrius ferrugineus Freshwater Sawfish - Pristis microdon Mangrove Whiptail Ray - Himantura granulata Banded Wobbegong Shark - Orectolobus maculatus Zebra Shark - Stegastoma fasciatum Black Blotched Fantail Ray - Taeniura meyenii White Tip Reef Shark - Triaenodon obesus Banjo Shark - Trygonorrhina specie Thorny Ray - Urogymnus assperrimus Bamboo Shark - Chiloscyllium punctatum Pink Whiptail Ray - Himantura fai Blue Spotted Ray - Taeniura lymma Snowflake - Echidna nebulosa Port Jackson - Heterodontus portjacksoni - egg Grey Reef Shark - Carcharhinus amblyrynchos Black Tip Reef Shark - Carcharhinus melanopterus Tasseled Wobbegong - Eucrossohrinus dasypogon Port Jackson Shark - Heteradontus portusjacksoni Aust. Black Tip - Carcharhinus libatus/tilstoni Crested Port Jackson - Heterodontus galeatus Epaulette Shark - Hemiscyllium ocellatum Eels Whitemouth Moray - Gymnothorax meleagris Giant Moray - Gymnothorax javanicus Yellowmargin Moray - Gymnothorax flavimarginatus Honey-combed Eel - Gymnothorax favigineus/tasselata Butfaced Eel (Similar to Zebra) - Gymnomuraena specie Eel - Echidna specie Stubby-tailed Eel - Uropterygius specie Peppered Moray - Sidera picta Tangs, Surgeons & Coral Rabbitfish - Siganus corallinus Rabbitfish Humpnose Unicornfish - Naso tuberosus Bluespine Unicornfish - Naso unicornis Vlaming's Unicornfish - Naso vlamingi Blue Tangs - Paracanthurus hepatus Lipstick Tang - Naso literatus Barred Rabbitfish - Siganus doliatus Bluelined Rabbitfish - Siganus puellus Goldspot Rabbitfish - Siganus punctatus Foxface - Siganus vulpinus Brown Sailfin Tang - Zebrasoma scopaz Sailfin Tang - Zebrasoma veliferum Spotted Unicornfish - Naso brevirostris Brown Surgeonfish - Acanthurus nigrofuscus Teardrop Tang - Acanthurus nigricians Mimic Tang - Acanthurus pyroferus Dussumier's Surgeonfish - Acanthurus dussumieri Elongate Surgeonfish - Acanthurus matu Humpback Unicornfish - Naso brachycentron Orange-spot Tang - Acanthurus olivaceus Mimic Surgeonfish - Acanthurus chronix Tangs, Surgeons & Brown Surgeonfish - Ctenochaetus strigosus Rabbitfish Thompson's Surgeonfish - Acanthurus thompsoni (continued) Convict Tang - Acanthurus triostegus Twospot Brisstletooth - Ctenochaetus binotatus Bristletooth Tang - Ctenochaetus specie Lined Bristletooth - Ctenochaetus striatus Clown Tang - Acanthurus lineatus

Family Group Common Name - Scientific Name Trigger, Filefish, Striped Boxfish - Ostracion solorensis Boxfish & Puffers Spotted Boxfish - Ostracion meleagris Yellow Boxfish - Ostracion cubicus Redtooth Triggerfish - Odonus niger Clown Triggerfish - Ballistoides conspiculum Fan-bellied Leatherjacket - Monacanthus chinensis Long horn cowfish - Lactoria comuta Beaked Leatherjacket - Oxymonacanthus longirostris Globe Fish/ Porcupine Fish - Diodon nicthemerus Pinktail Triggerfish - Melichthys vidua Valentini Mimic Filefish - Paraluteres prionurus Orange Tailed Leather Jacket - Pervagor janthanisoma Pink Face Triggerfish - Pseudobalistes flavimarginatus Queen Triggerfish - Psuedobalistes fuscus Blackspot triggerfish - Rhincanthuis lunula Valentini Puffer - Canthigaster valentini Wedge-tail Triggerfish - Rhinecanthus rectangulus Blackpatch Triggerfish - Rhinecanthus verrucosus Bursa Triggerfish - Sufflamen bursa Gilded Trigger - Xanthichthys auromarginatus Hawaiin Triggerfish - Rhinecanthus aculeatus Stars and Stripes Pufferfish - Arothron hispidus Puffer - Canthigaster specie Flagtail Triggerfish - Sufflamen chrysopterus Starry Triggerfish – Juv - Abalistes stellatus Whitebar Boxfish (Red) - Anoplocapros lenticularis Shaw's Cowfish - Aracana aurita - female Map Puffer - Arothon mappa Striped Puffer - Arothron manilensis Spotted puffer - Arothron meleagris Dogface Pufferfish - Arothron nigropunctatus Leatherjacket - Cantherhines specie Shaw's Cowfish - Aracana aurita - male Three-barred Toby - Canthigaster coronata Bennet's Toby - Canthigaster bennetii Oceanic Triggerfish - Canthidermis maculatus Pygmy Leatherjacket - Brachaluteres jacksonianus False Eye Puffer Fish - Canthigaster papua Titan Triggerfish - Balistoides viridescens Clown Triggerfish - Balistoides conspicullatum Orange lined Triggerfish - Balistapus undulatus Wrasse Checklined Maori Wrasse - Oxycheilinus diagrammus Green Leopard - Macropharyngodon meleagris Red Leopard - Macropharyngodon choati Kuiters Wrasse - Macropharyngodon kuiteri Tubelip Wrasse - Labropsis australis Black Leopard - Macropharyngodon negrosensis Raindeer Wrasse - Novaculichthys taeniolatus Twospot Maori Wrasse - Oxycheilinus bimaculatus Golden Tuplip Wrasse - Labropsis australis Wrasse Maori Wrasse - Opthalmolepis lineolatus (continued) Gold Cleaner - Labroides pectoralis Cleaner Wrasse - Labroides dimidiatus Bicolour Cleaner - Labroides bicolor Blue Lined Tubelip Wrasse - Labrichthys unilineatus Assorted Cigar Wrasse - Hologymnosus sp. Sidespot Ringwrasse - Hologymnosus longipes Pastel Ring Wrasse - Hologymnosus doliatus

Family Group Common Name - Scientific Name Ring wrasse - Hologymnosus annulatus Half & half Wrasse - Hemigymnus melapterus Pink Maori Wrasse - Oxycheilinus species Threespot Wrasse - Halichoeres trimaculatus Small tail Wrasse - Pseudojuloides cerasinus Twotone Wrasse - Halichoeres prosopeion Ornate Wrasse - Halichoeres ornatissimus Barred Thicklip - Hemigymnus fasciatus Cryptic Wrasse - Pteragogus cryptus Red Breasted Maori Wrasse - Cheilinus fasciatus Sharpnose / Possum Wrasse - Wetmorella specie Lightning Wrasse - Thalassoma quinquivittatum Yellow lunar Wrasse - Thalassoma lutescense Lunare Wrasse (Green) - Thalassoma lunare Jansen's Wrasse - Thalassoma jansenii Sixbar Wrasse - Thalassoma hardwicke Blunt Headed Wrasse - Thalassoma amblycephalum Slender Wrasse - Suezichthys gracilis Blue Striped Belly Wrasse - Stethojulis strigiventer Bluelined Wrasse - Stethojulis bandanensis Chiseltooth Wrasse - Pseudodax moluccanus Redstriped Wrasse - Pteragogus enneacanthus Disappearing Wrasse - Pseudocheilinus evanidus Red-banded Wrasse - Pseudolabrus biserialis Smailltail Wrasse - Pseudojuloides cerasinus Orange Spot Wrasse - Pseudocoris yamashiroi - male Orange Spot Wrasse - Pseudocoris yamashiroi - female Bluetail Wrasse - Halichoeres melanurus- male Torpedo Wrasse - Pseudocoris heteroptera Razor Fish - Xyrichthys sp. Eightstripe Wrasse - Pseudocheilinus octotaenia Barred Ocellate Wrasse(Rare) - Pseudocheilinus ocellatus Sixstripe Wrasse - Pseudocheilinus hexataenia Three-spot Hogfish - Bodianus axillaris Blue Tuskfish - Choerodon cyanodus Jordans Tuskfish - Choeradon jordani Anchor Tuskfish - Choeradon anchorago Yellow Cigar Wrasse - Cheilio intermis Humpheaded Maori Wrasse - Cheilinus undulatus Snooty Maori Wrasse - Cheilinus oxycephelus Cheeklined Maori Wrasse - Cheilinus digrammas Floral Maori Wrasse - Cheilinus chlorourus Twospot Maori Wrasse - Cheilinus bimaculatus Splitlevel Hogfish - Bodianus mesothorax Harlequin Tuskfish - Choerodon fasciatus Diana's Hogfish - Bodianus diana Foxfish - Bodianus frenchi Lyre Tail Hogfish - Bodianus anthoides Yellowbreasted Wrasse - Anampses twistii Wrasse China Wrasse - Anampses neoguinaicus (continued) Guinea Fowl Wrasse - Anampses meleagrides Geographic Wrasse - Anampses geographicus Feminine Wrasse - Anampses feminus Blue Spotted Wrasse - Anampses caeruleopunctatus Tripletail Maori Wrasse - Cheilinus trilobatus Bluetail Wrasse - Halichoeres melanurus- female Blackfin Hogfish - Bodianus loxonzonus Gold Slingjaw - Epibulus insidiator

Family Group Common Name - Scientific Name Checkerboard Wrasse - Halichoeres hortulans Twospot Hogfish - Bodianus bimaculatus Blackspot Tuskfish - Choerodon schoenleinii Margined Wrasse - Halichoeres marginatus Gold Striped Wrasse - Halichoeres hartzfeldii Banana Wrasse - Halichoeres chrysurus Pastel Green Wrasse - Halichoeres chloropterus Neon Wrasse - Halichoeres biocellatus Bird Wrasse - Gomphosus varius (female) Blackstripe Coris - Coris pictus Pixie Coris - Coris pictoides Clown Wrasse - Coris gaimard Pale Barred Coris - Coris dorsomacula Purple Lined Fairy Wrasse - Cirrhilabrus lineatus Coral Sea Cirrhilabrus - Cirrhilabrus bathephylis Exquisite Fairy Wrasse - Cirrhilabrus exquisitus Bird Wrasse - Gomphosus varius (male) Magenta-streaked Wrasse - Cirrhilabrus laboutei Dotted Fairy Wrasse - Cirrhilabrus punctatus Fighter wrasse - Cirrhilabrus rubriventralis Rainbow Fairy Wrasse - Cirrhilabrus scottorum Batu Coris - Cori batuensis Western King Wrasse - Coris auricularis Two Spot Wrasse - Coris aygula Batu Coris - Coris batuensis Magenta Fairy Wrasse - Cirrhilabrus tibicen Corals and sponges Encrusting/Maze Coral - Platygyra specie Grooved Brain Coral - Oulophyllia species Brain Coral - Oulophyllia/Montastrea/Favia spp. Purple carpet - star polyp - Pachyclavularia violacea Sea Mat - Palythoa specie Carnation Coral - Pectinia paeonia Hibiscus Coral - Pectinia species Maze Coral - Platygyra daedalea Small Polyp Bubble Coral - Physogyra lichtensteini Large Bubble Coral - Plerogyra sinuosa Orange Leather Coral - Phakellia flabellata Yellow Finger Coral - Madracis specie Zoanthid clusters - Zoanthid Bubble coral - Plerogyra/Physogyra specie Assorted Gorgonia Sea Fans - Gorgonia specie Yellow Sea Fan - Isis hippuris Lobed coral - Lobophyllia hemprichii Lobed coral – green - Lobophyllia hataii Snake Brain/Lobed - Lobophyllia/Symphyllia specie Christmas Tree Soft Coral - Nephtheid specie Brain Coral - Merulina ampliota Fluffy/Elephant Ear Corrallimorph - Metarhodactis specie Corals and sponges Brain Coral - Montastrea specie (continued) Corals - Montipora sp. Corrallimorph Coral - Moseleya latistellata Peacock Coral - Mycedium specie Lobed Coral - Lobophyllia specie Pulsating Soft Coral - Xenia specie Orange Sunflower Coral - Tubastrea faulkneri Red Organpipe Coral - Tubipora musica Little Tree Coral - Turbinaria heronensis Cabbage Coral - Large Polyp - Turbinaria peltata

Family Group Common Name - Scientific Name Nudibranch Coral - Trachyphyllia geoffroyi - red Cabbage Coral - Turbinaria specie Nudibranch Coral - Trachyphyllia geoffroyi Assorted Goniopora - Goniopora/Alveopora sp. Purple Matting Zoanthid - Zoanthid Small Mushroom - Cycloseris cyclolites Colonial green disc - Zoanthid specie Palm Tree Carpet - Zoanthid specie Green Disc Zooanthid - Zoanthus specie Yellow Cup Coral - Turbinaria reniformis Button Coral - Scolymia vitensis Bowl Mushroom Coral - Polyphylia species Finger Coral / Jewel Stone - Porites Coral Large disc zoanthid - Protopalython specie Purple Sponge - Purple Sponge Black Sunflower Coral - Tubastraea micracantha Toadstool Soft Coral - Sarcophyton species Brain Coral - Plesiastrea versipora Branching Soft Coral - Sinularia specie Lace Coral - Stylaster specie Red Trim Green Centre - Symphyllia specie Living Rock - Rockus assorterosterus Garden rock/Corallimorphs - Assort/combo./Corallimorphs Opaque Cushion Coral - Cynarina lacrymalis Daisy Star Polyps Mat - Clavullaris specie Candy-cane Coral - Caulastraea furcata Elegance Coral - Catalaphyllia jardinei Branching Soft Coral - Capnella/Cladiella specie Posie Coral - Blastomussa wellsi, Blastomussa merleti Green Branching Hard Coral - Australogyra zelli Large Polyp Zooanthid - Zooanthus sp Brain Coral - Acanthastrea lordhowensis Rough Orange Leather Coral - Acanthella klethra Staghorn/Plate/Fingers - Acropora species Deepwater Gorgonia - Ellisella sp. Brain Coral - Goniastrea specie Green-eyed Brain - Goniastrea palauensis Galaxic Coral - Galaxia fascicularis Galaxy coral - Galaxea astreata Slipper Mushrooms - Fungia/Herpolitha/Polyphyllia spp. Short-tentacled Mushroom - Fungia specie Flat disc Mushrooms - Fungia scutaria Mushrooms- long tentacles - Fungia actiniformis Honeycomb Brain Coral - Favia specie Fancy Frogspawn - Euphyllia paradivisa Tentacle Coral - Euphyllia glabrascense Frogspawn Coral - Euphyllia divisa Corals and sponges Corrallomorphs - Discosoma sp. - Blue/Aqua (continued) Cushion Coral - Cynarina deshayesiana Grape Coral - Euphyllia ancora/cristata Brain Coral - Diploastrea heliopora Hammerhead Coral - Euphyllia ancora Invertebrates Decorator Crab - Composica retusa Strawberry (Red) Land Hermit - Coenobita perlatus Kentia Starfish - Choriaster granulatis Purple Tipped Tube Anemone - Cerianthus specie Upside-down Jellyfish - Cassiopeia sp. Decorator Crab - Camposica retusa

Family Group Common Name - Scientific Name Assorted Sea Slugs - Bech-de-mer Box Crab - Calappa calappa Geographic Cone Shell - Conus geographus (Deadly) Textile Cone Shell – Poisonus - Conus textile Cushion Starfish - Culcita novaguineae Tiger Cowrie Shells - Cyprae tigris Arabica Cowrie - Cypraea arabica Orange Hermit Crab - Dardanus megistosis Sea Hare - Aplysia species Whitespotted Cowrie - Cypraea vitellus Sea Squirts - Ascidians Octopus Anemone - *will sting - Dofleina armata Crown-of-thorns Starfish - Acanthaster planci Red Warratah Anemone - Actinia tenebrosa Red Sunset Pistol Shrimp - Alpheus sp. One spot Pistol Shrimp - Alpheus sp. 1. (Spotted) Starfish - Assorted Starfish (small) Brittlestars - Assorted Brittlestars Feather Star - Assorted FeatherStar Red Sunset Pistol Shrimp - Alpheus sp. (Sunset) Short Horned Star - Protooreaster sp. Striped Crayfish - Panulirus versicolor Floral Horned Coral Shrimp - Saron sp. Marbled Shrimp - Saron marmoratus Bug Eyed Hingebeak Shrimp - Rhynchocinetes species Red Nippered Hinge-beak Shrimp - Rhynchocinetes sp. Cuttlefish - Sepia/Sepiella/Euprymna specie Sea Apple - Pseudocolourchirus Axiologus Yellow Headed Boxer Shrimp - Stenopus cyanoscelis Algae Grazer Snail - Planaxis sulcatus Squat Lobster/Porcelain Crab - Petrolisthes specie Emperor Shrimp - Periclimenes imperator Orange Pentagon Starfish - Pentagonaster dubeni Pink Sea Apple - Pentacta specie Catterpiller Sea Apple - Pentacta sp. Slipper Lobster - Parribacus species Short-spinned Urchin - Parasalenia gratiosa Red Lined Hingebeak Shrimp - Rhynchocinetes durbanensis Clams - asst. colours - T.derasa - Aquacultured Assorted Large Sea Urchin - Diadema sp. Assorted Snails - Turbo/Natica/Nassarius. Trochus - Trochus niloticus Decorator Urchins - Tripneustes gratilla Giant Clam - Tridacna squamosa Biscuit Starfish - Tosia specie Assorted Urchins - Sea Urchins Invertebrates Clams- assorted colours - T.maxima - Aquacultured (continued) Coral Shrimp - Stenopus specie Red-lip Stomb Shell - Strombus luhuanus Leathery Anemone - Stichodactylidae crispa Carpet Anenome - Stichodactyla sp White-nipper Banded Shrimp - Stenopus zanzibaricus. Coral Banded Shrimp - Stenopus hispidus Red Striped Banded Shrimp - Stenopus earlei. Tropical Abalone - Haliotis asinina Spider Shell - Lambis lambis Burnt Sausage Sea Slug - Holothuria edulis Assorted Seaslugs - Holothuria assorterostris

Family Group Common Name - Scientific Name Anemone Hermit Crab - Dardanus pedunculatus Spanish Dancer - Hexabranchus sanguineus Anemone - Heteractis specie Ocellaris Anemone - Heteractis magnifica Flame Scallop - Lima hians Leathery/Decorator Anemone - Heteractis crispa Yellow Base Anemones - Heteractus malu Bumblebee Squat Lobster - Galathea pilosa Red Star - Fromia indica Bubble Anemone - Entacmaea quadricolor Lobster - Enoplometopus species Flame Reef Lobster - Enoplometopus occidentalis Flame Lobster - Enoplometopus occidentalis Assorted Crayfish - Panulirus sp Sticky Anemone - Stichodactyla mertensii Carpet Anemone - Heteractis haddoni Rainbow mantis Shrimp - Odontodactylus scyllarus Painted Crayfish - Panulirs ornatus Ocellaris/ Magnificent Anemone - Heteractis magnifica Green Brittlestar - Ophinoarachna incrassata Blue Linkia Starfish - Linckia laevigata Fluro Yellow Nudibranch - Notodorris gardineri Algae Grazer Snail - Nerita species Squat Lobster - Neopetrolisthes/Petrolisthes specie Porcelain (Anemone) Crab - Neopetrolisthes ohshimai Cleaner shrimp - Lysmata multicissa Starfish - Linkia specie Brown Banded Brittlestar - Ophiolepis superba Orange Spotted Starfish - Nardoa novaecaledoniae Blood/Scarlet Cleaner Shrimp - Lysmata debelius Red Lined Cleaner Shrimp - Lysmata amboinensis Algae Grazer Snail - Monodouta lavio Source: Lyle Squire Jnr, Cairns Marine (pers. comm.).