Report calls for government to support Australian Aquaculture
ABARE has released a report, calling on government to get behind the aquaculture industry and in particular to simplify their approvals processes.
The Australian Bureau of Agricultural and Resource Economics (ABARE) has released a report, calling on government to get behind the aquaculture industry and in particular to simplify their approvals processes.
In releasing ABARE’s latest report, Australian aquaculture: information requirements for investors, ABARE’s Executive Director, Dr Brian Fisher, said: ‘Achieving sustainable industry growth in the aquaculture sector will require substantial investment’.
As an emerging industry, aquaculture has at times struggled to obtain development capital, and the costs of setting up an aquaculture operation can be substantial. Establishing a land based finfish, prawn or freshwater crayfish farm could cost up to A$80 000 per hectare of pond, while establishing a commercial size tank or intensive recirculation system for finfish or abalone could cost several million dollars.
‘Given the high capital cost of setting up an operation, aquaculture producers seeking finance for new or expanded operations need to demonstrate to potential lenders and investors that their business plans cover all relevant aspects of the operation, including management, site suitability, production risk and product marketing’, Dr Fisher said.
‘Although many potential lenders and investors perceive aquaculture as being a relatively risky business, there are some things that governments at all levels can do to reduce this level of perceived risk. These include streamlining approval processes for aquaculture projects to make the processes as efficient as possible, increasing the long term security of tenure, particularly over marine leases, and providing factual information about the current state and prospects for the aquaculture industries’, Dr Fisher said.
Read the report: Australian aquaculture: information requirements for investors