Priorities and Principles for Investment in Aquaculture Research by NSW Department of Primary Industries Trevor S Gibson Director, Production Research NSW Department of Primary Industries, EMAI, Menangle Geoff L Allan Research Leader, Aquaculture NSW Department of Primary Industries, Port Stephens Geoff File Director, Research Operations NSW Department of Primary Industries, Orange John D Mullen Research Leader, Economic Evaluation and Coordination NSW Department of Primary Industries, Orange, NSW Helen Scott-Orr Director, Health Sciences, Science Alliances and Evaluation NSW Department of Primary Industries, Orange Economic Research Report No. 36 April 2007 i © NSW Department of Primary Industries 2005 This publication is copyright. Except as permitted under the Copyright Act 1968, no part of the publication may be reproduced by any process, electronic or otherwise, without the specific written permission of the copyright owner. Neither may information be stored electronically in any way whatever without such permission. Abstract: This review examined the characteristics of the main aquaculture industries in NSW with respect to current impediments to growth, market development and future opportunities. Within this context, it examined the nature, funding and impacts of the NSW Department of Primary Industries’ current and proposed investments in aquaculture R&D and industry development, as well as its alignment with DPI and industry priorities. Keywords: aquaculture, research evaluation, public good JEL code: Q160 ISSN 1442-9764 ISBN 978 0 73347 1838 9 Author’s Contact Details: Trevor Gibson, NSW Department of Primary Industries, PMB 8, Camden, NSW 2570 Telephone: 02 4640 6308 Facsimile: 02 4640 6395 Email: [email protected] Citation: Gibson, T.S., Allan, G.L., File, G., Mullen, J.D., Scott-Orr, H., 2005, ‘Priorities and Principles for Investment in Aquaculture Research by NSW Department of Primary Industries’, Economic Research Report No. 36 NSW Department of Primary Industries, Orange. Available at: http://www.agric.nsw.gov.au/reader/10550 ii Acknowledgements The review team has appreciated the spirit of cooperation by NSW DPI scientists from the Aquaculture Unit in frank discussions and in the drafting of industry chapters for the review. In particular, thanks go to Drs Stuart Rowland, John Nell, Stewart Fielder, Mark Booth, Wayne O’Connor and Mike Heasman. Mr Ian Lyall, Manager, Aquaculture in DPI’s Agriculture & Fisheries Division also made valuable contributions to sections on aquaculture regulation in the review. Industry stakeholder are also thanked for their contributions through interviews and phone conversations to provide information on industry perceptions of DPI aquaculture R&D and industry issues. In particular, thanks goes to Mr Dan Hogan, Pisces Marine Farms; Mr Anthony O’Donohue, mulloway grower, Clearwater Mulloway, Millers Forest; Mr Nick Arena, barramundi grower, Tailor Made Fish Farms P/L, Bob’s Farm; Mr Richard Eldridge, Barclay Oysters Wallis Lake; Mr Tony Troup, SRO farmer and President, Oyster Grower’s Association; Mr Nick Lambert, silver perch grower, Australian Native Fish, Grafton; Mr Noel Penfold, silver perch grower, Wagga Wagga and Secretary, Silver Perch Grower’s Association; Mr Ian Charles, silver perch grower, Grong Grong and President, Silver Perch Grower’s Association; Mr Paul Trevethan, silver perch farmer, Howlong; Mr Frank Theodore, De Costi Seafoods; Mr Peter Dundas-Smith, Chair, Aquafin CRC and former Executive Director, FRDC; Dr Patrick Hone, Executive Director FRDC. iii Table of Contents Executive Summary and Recommendations............................................................................. vi 1. Introduction ........................................................................................................................ 1 1.1 Objectives of this Review ................................................................................................ 1 1.2 Context of the Review...................................................................................................... 2 1.3 Conduct of Review...........................................................................................................3 2. The Economic Framework Underpinning this Review...................................................... 5 3. Aquaculture Industries – An Overview.............................................................................. 8 3.1 Aquaculture in Australia .................................................................................................. 8 3.2 Aquaculture in NSW ........................................................................................................ 9 4. Research and Extension Activities in Aquaculture.......................................................... 16 4.1 R&D Funding in Australia ............................................................................................. 16 4.2 R&D Funding in NSW................................................................................................... 17 4.3 NSW DPI Investment in Aquaculture R&D .................................................................. 18 4.4 DPI Research and Extension Activities in Aquaculture................................................ 20 5. Aquatic Animal Health Issues – Opportunities for NSW DPI......................................... 23 6. Oysters.............................................................................................................................. 24 6.1 Edible Oysters ................................................................................................................ 24 6.1.1 Industry Background........................................................................................ 24 6.1.2 Past Research Achievements............................................................................ 29 6.1.3 Funding of Research......................................................................................... 31 6.1.4 Future Directions and Opportunities for Research and Extension................... 32 6.1.5 Potential Value of the SRO Breeding Program to NSW.................................. 34 6.1.6 Beneficiaries of Research................................................................................. 36 6.1.7 Rationale for Government Investment ............................................................. 36 6.2 Pearl Oysters .................................................................................................................. 37 6.2.1 Industry Background........................................................................................ 37 6.2.2 Past Research Achievements............................................................................ 38 6.2.3 Funding of Research......................................................................................... 39 6.2.4 Future Directions for Research ........................................................................ 39 6.2.5 Potential Value of the Pearl Oyster Breeding Program to NSW...................... 39 6.2.6 Beneficiaries of Research................................................................................. 40 6.2.7 Rationale for Government Involvement........................................................... 40 6.3 Recommendations .......................................................................................................... 40 6.4 Appendices..................................................................................................................... 42 7. Abalone ............................................................................................................................ 48 7.1 Industry Background...................................................................................................... 48 7.2 Past Research Achievements.......................................................................................... 52 7.3 Funding of Research....................................................................................................... 53 7.4 Future Directions and Opportunities for Research and Extension................................. 53 7.5 Beneficiaries of Research............................................................................................... 55 7.6 Rationale for Government Involvement......................................................................... 55 7.7 Recommendations .......................................................................................................... 56 8. Marine Finfish.................................................................................................................. 57 8.1 Industry Background...................................................................................................... 57 8.2 Past Research Achievements.......................................................................................... 65 8.3 Funding of Research....................................................................................................... 66 8.4 Future Directions for Research ...................................................................................... 66 iv 8.5 Beneficiaries of Research............................................................................................... 69 8.6 Rationale for Government Involvement......................................................................... 70 8.7 Recommendations .........................................................................................................