The oyster industry have long recognised their exposure to the unpredictable nature of the environment. Considerable time, effort and resources have been invested in risk mitigation activities. Examples such as Selective Breeding Programs, Quality Assurance Programs, Environmental Management Systems and innovations in growing techniques and animal husbandry are all designed to improve the attritubes of stock and to mitigate the likelihood & severity of a disturbance. It has been identified however, that there has been minimal investment in last resort options that support growers through worst-case scenarios.

While state & federal disaster arrangements are well established to support primary producers following declared natural disasters, the same mechanisms do not exist for disease outbreaks. Attempts to establish an aquatic deed (officially known as the aquatic EADRA - Emergency Aquatic Disease Response Arangement) have so far failed, and traditional stock insurance (such as that available to cattle producers, or ranched tuna) is not readily available to oyster farmers.

This situation has escalted following the Qx outbreak in Port Stephens, NSW. Despite suffering catastophic losses, oyster farmers in this estuary have received little support, beyond fee waivers and assistance associated with flooding events in the region. In 2019, the estuary hosted ~45 oyster farming businesses with an annual GVP of well-over $10m. Almost all of these businesses are now operating part-time, and even the most productive and profitable of growers have needed to find off-farm work to supplement their income. With considerable infrastructure in the water, farmers are unable to walk away from leases, as tipping fees alone are estimated to exceed $5m.

Understandably growers around the state have been rocked by the outbreak, the associated response and lack of financial support, and as a result have been reassessing their own exposure to risk. One thing that has also become clear, is that industry needs to take charge of their own future and look at measures to support their recovery, reestablishment or dignified exit following disease incursions.

This application seeks funding support for NSW Farmers to drive this process. This will involve the development and administration of a tender and contracting process to deliver an options document exploring the advantages and drawbacks of various financial support mechanisms current available and their appropraiteness for implementation in the oyster industry. This will include the investigation of solutions that are estbalished in other states, and other agricultural sectors. It is anticipated that recommedations put forward will be broadly split into 1) mechanisms that can be implemented at the farm/enterprise level, 2) mechanisms that may be implemented at the state/sector-wide level.

The options paper will provide valuable information which may inform the actions of fishing & aquaculture sectors around the country.

The Gunaikurnai Land and Waters Aboriginal Corporation (GLaWAC) is exploring aquaculture development opportunities on country and in partnership with the VFA have commenced a small pilot trial of Sydney Rock oyster aquaculture in the Gippsland Lakes in October 2022, the preliminary results from the first 12 months of the trial have been very positive, the partners would like to move the project to the next stage to prove commercialisation.

The Victorian Government and GLaWAC are looking for on-country opportunities that show positive commercial potential for the Gunaikurnai one of the main aims of the trial is for GLaWAC to be in a position to make an informed business decisions at its conclusion on the best business development model and how to move the project to full commercialisation, this is most likely with an existing aquaculture business as a business partner.

SRO were chosen for this project as they are native and endemic in the Gippsland Lakes and have an established market and growing systems. Other species that were considered were Native flat oyster (Ostrea angasi) and the introduced species Pacific oyster (Crassostrea gigas) which are both present in the Gippsland Lakes only Native flat oyster (Ostrea angasi) have been approved for aquaculture production in Victoria. While Native flat oysters (Ostrea angasi) would be an option in the Gippsland Lakes the lack of proven markets and established growing systems was considered high risk, However, Pacific oyster (Crassostrea gigas) have not been approved for aquaculture in Victoria as they are not native and they are considered a invasive species which ruled them out as an option as they would not meet the bush food ethics and direction of Gunaikurnai people, the recognised native title holders of the Gippsland Lakes area.
With the success of the first year of the pilot trial, GLaWAC and the VFA have agreed to move the project to stage 2, which will establish semi-commercial scale plots to investigate the full commercial potential of SRO aquaculture in Eastern Victoria. This stage 2 trial will also provide employment, training and skills development for the Gunaikurnai people.

The trial will involve the establishment of approximately 1 hectare of oyster aquaculture infrastructure across seven replicated trial sites in the Gippsland Lakes (in the general area of the existing pilot trial) and will investigate and compare production in different oyster culture systems.

The project has involved extensive consultation with the seafood industry and aquaculture sector and the pilot project has been strongly supported by the Oyster industry and seafood industry. The pilot project also involved cross sector and community consultation with key stakeholders and the broader community.

Successfully developing a SRO aquaculture industry in eastern Victoria will benefit GLaWAC and the Gunaikurnai people, the broader seafood and aquaculture sectors, and local businesses including transport, tourism, hospitality and other support industries.
The project is of regional and national importance as it meets four of the priority areas of the National Fisheries Plan
• First Nations employment in the sector Key initiatives: 4.2, 7.1
• Sustainable development of the aquaculture sector Key initiatives: 2.6
• Employment, participation and health in the fishing, aquaculture, and seafood sectors Key initiatives: 7.1, 7.2, 7.3, 7.4
• Climate change and adaptation - shifting and shared stocks Key initiatives: 6.2, 6.3, 6.4

There is significant interest across Australia from first nations people to become involved in viable aquaculture ventures. This project aims to develop a new aquaculture industry using an established and marketable product in an area of Australia that is on the current margins of commercial SRO production.
Climate change is already increasing east coast water temperatures and extending the southern range of a number of species. These changes are likely to increase the potential for SRO aquaculture production in Eastern Victoria.

This project also aims to investigate the potential of a viable new first nations aquaculture industry on the Gippsland Lakes. The initial pilot project on which this application is based has shown that the growth and survival of SRO is commercially viable and as the Gippsland Lakes is a large waterway with no aquaculture industry, there is significant potential for a large commercial development based on SRO production in the area to support a regional aquaculture industry and local employment.