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Title:

Seafood CRC: funding options for the Australian wild-catch prawn industry

Project Number:

2011-749

Organisation:

Ridge Partners

Principal Investigator:

Ewan Colquhoun

Project Status:

Completed

FRDC Expenditure:

$50,552.00

Program(s):

Industry

Need

The Australian prawn industry has experienced no real increase in prawn prices for over a decade. In most domestic markets, prawn prices are now lower than they were 10 years ago. Prawn prices back to the wharf have fallen as a result. During this time, prawn imports have increased and prawn exports have decreased: fishers are facing increased costs, which are not being compensated by the price they receive for prawns. This is currently exacerbated by the high Australian dollar value and the competition within Australia between prawn sales (domestic and imports). The Australian Treasury forecasts that the $A will remain high for some years. The ACPF, with the APFA, is participating in the 'National Prawn Market Development Strategy' project, to put together a national prawn marketing and promotion campaign that builds on the work of other existing campaigns, plus using consumer research that builds upon marketing Australian prawns. The aim is to increase the consumption of Australian prawns domestically. Obviously funding is required for marketing and promotion and the ACPF is not in a position to provide those funds.

Objectives

1. Review and collate data related to funding mechanisms that have worked / haven't worked and the reasoning behind their success

2. Document external stakeholder views re arrangements and options for funding mechanisms (e.g. levy agencies; financiers, diesel hedge managers; prawn service agencies, etc).

3. Draft and release a Briefing Paper to Industry identifying funding options, collection mechanisms, impacts, cost effectiveness, pro's and con's of each, etc

4. Conduct regional industry meetings and document responses to Briefing Paper issues - funding options, collection mechanisms, strike rate, fishery and enterprise equity, funds disbursement andadmin, etc

5. Document the preferred funding option in detail, related mechanisms rates and impacts, proposed adoption pathway, implementation process and time frame

6. Conduct a workshop for industry leaders / stakeholders to discuss, refine and confirm the recommended funding option and implementation pathway

7. Draft and submit a final report of the project process and recommended outcomes to industry and the Seafood CRC.

Funding options for the Australian wild-catch prawn industry

Final Report
ISBN:978-0-9874281-4-1
ISSN:
Author(s):Ewan Colquhoun
Date Published:October 2013

This project provided input into the National Prawn Market Development Strategy. It has established a process to collect voluntary contributions on a national basis for the prawn industry across all license holders in the wild-catch and aquaculture sectors.

The value proposition for prawn license holders is compelling: an average investment of 2.6 c/kg of landed harvest volume will result in an 11 c/kg increase in average net beach/pond prices by the third year. This is an attractive 4.2:1 multiplier on fishers’ contribution investments.