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Northern Territory Seafood Council Export Strategy

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Northern Territory Seafood Council Export Strategy Northern Territory Seafood Council Export Strategy Executive Summary December 2020 Executive Summary 2 Background and context of the engagement Over 8 weeks KPMG assessed the export potential for Northern Territory seafood and in doing so identified the ambition, current challenges and risks, but most importantly opportunities. Key initiatives were defined and mapped over the next two years for Northern Territory Seafood Council (NTSC) to execute. WHY? HOW? There is an opportunity to crystallise NT seafood assets into a significant COVID-19 rebound opportunity. Darwin is the closest Australian capital city to growing Asian markets, connected through a 24/7 international airport and the only functional 8 weeks deep water port in Northern Australia. The Northern Territory Government has set a Q: What is the export potential for Northern Territory seafood, and if so 1 target to double economic growth by achieving at least 5% growth per annum . where? Currently there is no strategic process to enable opportunities to be identified and 1 Inception and Market Assessment capitalised upon within the NT seafood industry. Six of the key wild catch fisheries (Aquarium, Coastal Line, Mud Crab, Offshore Net and Line, Spanish Mackerel, and This phase included; desktop research and analysis on the current state Trepang Fishery) are export approved and Barramundi Fishery has expressed of NT fisheries, analysis of participation of NT seafood exporters in interest in export markets. international export markets, assessment of market opportunities and stakeholder engagement. 2 WHAT? Opportunity and Gap Analysis KPMG has been engaged by the NTSC to lead and manage the engagement This phase included; workshop with wide range of stakeholders to gain including in depth industry stakeholder consultation and desktop research to support and prioritise key markets, identify NT seafood industry gaps understand the current situation and advise future opportunities. and areas/opportunities for improvement and understand risks involved with exporting from the NT. We conducted workshops and focus interviews to gain a detailed understanding of the NT seafood industry (and NTSC members) current state of operations, 3 Strategy and Roadmap Development identifying the step changes needed to improve and invest in for change over a eight week period. This phase included; development of the strategy identifying export objectives and opportunities in priority export markets, case study ‘success stories’, fisheries dashboard snapshots and a roadmap of initiatives over the next 2 years. ©2020 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. 3 The opportunity to export seafood It is well known and appreciated that the NT is a unique and diverse part of Australia, with this uniqueness comes huge competitive advantage and opportunities that are yet to be tapped into for the seafood industry. The Territory has the space, capacity and resources to grow significantly with the right investment, and in doing so offers mutual benefits to many NT industries and contributes to ambitious economic growth targets. HOLISTIC OPPORTUNITY EXPORT OPPORTUNITY . Agribusiness is a culturally significant and valuable STRATEGIC LOCATION industry to the Territory. Ingrained in the culture of • many Territorians with an estimated value of $700 million The location of the Territory and its proximity to fast growing, and lucrative Asian markets offers promising opportunities to grow the presence of NT seafood and agricultural products. annually, it accounts for nearly 3% of Territory’s gross state product (GSP). Primary industry and fisheries also • The NT already has strong, historic trade relationships with its northern neighbours and within six hours air travel there are account for a significant proportion of the Territory’s non- 485 million people and strong demand for high quality seafood products. mineral export revenue. Primary industries and fisheries are vital to many GROWTH CAPACITY remote communities and have significant links to other supporting sectors of the local economy, such • With abundant and valuable natural resources, including its seafood species, the NT has exceptional investment and growth as manufacturing, transport, packaging and distribution, potential in many industries. retail and wholesale trade. These industries are • With significant land and water resources there is space and capacity to grow, with ambitious plans to do so. fundamental to regional areas, providing economic opportunities and employment for approximately 2,410 • The Territory is relatively young compared to the rest of Australia so it can learn from other regions to accelerate growth and capitalise on these incomparable opportunities. people representing 1.8% of the NT workforce. It has been identified as a significant investment and growth industry for the NT’s economic MUTUAL BENEFITS development. The NT Government is focusing on improving critical inputs for agribusiness namely water • With the opportunity to expand export brings additional benefits to the NT economy, development and many sectors. Some of which include: and infrastructure needs. There are also plans to improve agribusiness supply chains, increase resilience of the o Increase Indigenous communities participation in the seafood industry; workforce and enable producers to capitalise on emerging o Collective benefits of infrastructure and logistics networks; technologies. o Seafood is of local significance with an established tourism market including the “Support NT Caught” brand that can be derived into global markets. ©2020 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. 4 Understanding NT Seafood Industry The NT seafood industry is made up of wild caught fisheries (commercial fishing) and aquaculture (farmed). WILD CATCH AQUACULTURE Overview: Overview: FAST FACTS: • The gross value of production (GVP) of • The value of aquaculture production in the FAST FACTS: wild caught seafood in the Northern NT decreased by 26% in 2017–18 to Aboriginal Land Territory increased by 9% in 2017-18 $25.6 million following a higher than Rights across 85% reaching $47.8 million, outpacing average production value of $34.4m 2016- of the NT’s National GVP for wild-catch at 3% in 17. Over the longer term, the value of Farmed Barramundi is a key coastline the same period. Over the longer term, aquaculture in the NT grew by 2% from seafood product with a value NT wild catch fisheries have 2008-18. of $22.8m Mud Crabs are a high experienced a compound annual • Despite the low growth in this emerging value species with a growth rate of 5% over the ten year sector, confidence is strong and supported Home to Australia's Every $1m created in value of $9.8m period to 2018. output value from by investment in large scale projects. largest producer of NT is home to fishing creates • A number of niche species have also Barramundi and aquaculture • The major aquaculture activities for the programs of $400k in the rest of been identified as having growth 40% of Australia’s 2 Northern Territory include Pearl Oyster farmed Barramundi Giant Clams the NT economy potential and established demand in (Pinctada maxima) culture and Barramundi is produced from Black Jewfish swim- export markets. These include Trepang, farming (Lates calcarifer), in addition to a the NT bladders are worth Pearl Oyster meat, Black Jewfish between number of other species. Other Finfish are $500-$900/kg bladder and Shark fin. growing strongly and Total value of worth $15.5m FISHERIES: FISHERY AND SPECIES GROWN • AQUARIUM • PEARL OYSTER • PEARL OYSTERS • BLACK LIPPED $25.6m Emerging species for Aquaculture commercial production Total value of OYSTERS • BARRAMUNDI • OFFSHORE NET and • BARRAMUNDI programs of include Trepang, Pearl $47.8m LINE • TREPANG propagated corals w/ Oysters and Black • COASTAL NET • GIANT CLAMS heavy investment in Jewfish • SPANISH • ORNAMENTAL R&D to improve • COASTAL LINE MACKEREL PLANTS and FISH 14 wild production. Total volume of • DEMERSAL • TIMOR REEF catch Total volume of 2,342 tonnes fisheries 6,224 tonnes • MUD CRAB • TREPANG ©2020 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. 5 What we heard from industry – opportunities The industry has expressed positivity for the opportunities that export could provide to the Territory including upskilling, improved industry collaboration and marketing benefits. Create ‘brand NT’ leveraging Australia’s reputations
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