ABFA IPA: Consumer market research to underpin a brand strategy to grow category demand and support premium pricing
Setting strategic directions for the Australian Barramundi farming sector 2020-2025
The Australian Barramundi Industry is growing rapidly in terms of production. Collectively the key players in the industry have plans to heavily invest in production capacity, which is likely to result in more than doubling of production over the next five-ten years. A key lesson learned from other emerging agrifood industries is the critical importance of developing a sustainable market by building demand ahead of the expanding supply base in order to mitigate against price erosion. Too often, new industries are preoccupied with the production challenges of their category and ignore the marketing side. Building new markets usually requires a balanced multi-channel strategy covering supermarkets, specialist retailers, food service and export. Multi-channel marketing is critical to avoid any particular channel becoming flooded. Although Australian barramundi is an iconic fish, it faces strong competition from cheap imports.
Pivotal to the success of an emerging industry in its growth phase, is the need for industry discipline with the necessary governance and funding frameworks and processes in place. Most of all, the industry needs to be guided by a strong and focused strategic plan which has the full and enthusiastic support of the member companies.
Final report
The strategy was facilitated and written by McKINNA et al with close input from members of the Australian Barramundi Farmers Association and ABFA CEO Jo-Anne Ruscoe.
At the time of writing this strategy, it was difficult to assess the full extent of the pandemic shock and ABFA were in the process of preparing a number of response scenarios. How these scenarios play out will influence the priorities and timing of this strategy and ABFA will need to remain flexible in its implementation of the plan. Because of the pandemic, projects identified in the earlier drafts of this strategic plan that were deemed to be important to the long term development of the industry have had to be put on hold because of the significantly reduced resources. This final version of the strategic plan has been edited to reflect what industry consider is realistically achievable in the current funding environment. The programs that have been put on hold will be revisited when resources permit.
Notwithstanding the disruption of the COVID 19 event, this strategy remains sound in its intent and will be relevant for the five year strategy horizon and beyond.
Strengthening the ABFA Quality Framework
Development of sector-specific biosecurity plan templates and guidance documents for the Australian farmed barramundi industry
Enhanced biosecurity has been identified as a priority area in the ABFA 2015 – 2020 Strategic Plan.
Although the farmed barramundi industry and relevant jurisdictions have implemented a range of measures to mitigate the risks of major diseases of concern (i.e. individual on farm biosecurity procedures and engagement and sponsorship of a number of specific projects), this industry sector does not have a nationally consistent, agreed approach to biosecurity.
The development of a sector-specific national biosecurity plan for the farmed barramundi industry would ensure a common level of biosecurity risk management to support specific enterprise and whole-of industry productivity.
Furthermore, work is underway to develop industry-government emergency aquatic animal disease response arrangements. These arrangements should be underpinned by amongst other measures an industry biosecurity plan.
The industry feel that they are at a high risk to diseases introduction through the importation of fish that require processing from high risk regions that have very potent diseases such as pot belly and scale drop syndrome. As such enhanced Industry biosecurity measures are considered critical to the growth of barramundi farming in Australia.
Report
These guidelines have been developed to assist Australian Barramundi farms with the tools and templates to create basic through to comprehensive, and fully auditable, biosecurity plans.
Seafood CRC: stamping quality across the Australian farmed Barramundi industry.
For over a decade, the barramundi industry has recognised that in the face of price pressures from
low cost imports, and in order to effectively undertake generic promotion of Australian quality
barramundi, there must be consistent, minimum quality scheme across the industry to justify the price
premiums required. This is a key component of its industry security and development philosophy.
The Quality Scheme was identified as a key strategic priority for industry at its recent ½ yearly
planning Workshop.
The ABFA does not have resources within its reserves to carry out this project and as such it relies
solely on its residual CRC funds to undertake the project.
Final report
To improve viability, increase growth and maintain profitability, it was identified, through the CRC project “Barramundi branding and repositioning program”, that there needs to be a commitment to quality (along with sustainability) to justify the price differential between Australian farmed Barramundi and Lates calcarifer provided by other suppliers. The Australian Barramundi Farmers Association (ABFA) has committed to a quality scheme that will ensure that consumers can be confident that when they purchase ABFA farmed fish it is food safe, of a quality that presents well, and with no detectable odour or off flavour taint.
The Scheme has now been adopted by industry and provides clear industry benchmarks for product quality. The scheme will be reviewed annually and adjusted if new information or methodologies become evident, or if there is supply chain or farmer feedback that necessitates a revision of the scheme.
ABFA IPA: RD&E project investment and management via ABFA strategic plan 2014-2020
Post CRC, ABFA required project development and management between ABFA members, service providers and funders.
There is a need to maintain cohesive and strategic direction of ABFA RD&E in line with the ABFA 2015 - 2020 Strategic Plan
Communication and extension across members, service providers, funders and other key stakeholder groups on RD&E needs and outcomes is required.
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Final report
Seafood CRC: setting directions for the Australian Barramundi Farmers Association (ABFA) - development of a strategic RD&E Plan for the Industry.
This project is critical for the future of the ABFA. As the industry moves to a self funded RD&E model based on industry contributions, the development of an agreed and strategic approach to investing industry funds must be undertaken to achieve the greatest return on investment to industry. This cannot be achieved unless there is an inclusive and wide ranging canvassing of ABFA RD&E needs across the diverse operations within the industry.
The ABFA does not have resources within its reserves to carry out this project and as such it relies solely on its residual CRC funds to undertake the project.
Final report
The Australian Barramundi farming industry has seen constant growth in production and price over the last 10 years, but the industry is facing threats from a number of sources. The Australian Barramundi Farmers Association (ABFA), which represents the vast majority of producers and over 85% of farm production, has taken a leading role in seeking to address these threats. To maintain viability, and increase growth and profitability, an industry developed, endorsed and resourced, program based, Strategic and RD&E Plan was required to provide the ABFA with clear direction on where to focus resources and investment.
An inclusive face to face interview process was undertaken, liaising with all ABFA members to gather key industry issues across the diverse industry membership (regional and production system). This process allowed all members to equally contribute to the plan’s development. These industry issues were workshopped through a series of Industry meetings, and distilled into priority industry needs. These were developed into seven industry Goals and associated Strategies, and the resourcing required to address those goals across the industry’s regional and production methodology diversity was identified.
As a result, the ABFA has already adopted the Australian Barramundi Farmers Association Strategic and Research, Development and Extension Plan - 2015–2020, which provides clear and formalised guidance on ABFA's activities. The focussed and strategic program based approach means the ABFA is much better positioned to optimise its financial and human resources through a structured RD&E program, complimented by a coordinated extension program.
Seafood CRC: Australian Barramundi Farmers Association - R&D planning, implementation, extension and utilisation
The Australian barramundi farming sector is a small and growing industry, with the opportunity to sell high quality product at premium prices.
Although many aquaculture ventures across Australia have licences to grow barramundi, the industry comprises only 25 ventures that produce barramundi on sufficient scale to regarded as full time enterprises. These businesses have little or no capacity to coordinate investment in, and manage industry development. There is great difficulty in providing a whole of industry perspective on R&D and hence difficulty in capturing the benefits of scale arising from investment in innovation. Collective action on R&D will help capture the benefits of R&D and will deliver future growth.
The ABFA is now established and well positioned with the CRC to implement its strategic plan and to integrate R&D work across all stakeholders under its leadership. CRC staff have participated in several planning meetings, the proposed projects have been decided.
There is now a need for the ABFA to appoint one of our members to act as a liasion point with the CRC, to ensure barramundi farmers are involved in the R&D and contribute their resources when required. This person will also faciltate effective communication and coordination with all stakeholders, particularly at the start of projects and coomunication of results.
Final report
This project allowed work with the Australian Barramundi Farmers Association (ABFA) to:
- Coordinate the planning, implementation, and reporting of R&D projects conducted by the Seafood CRC to achieve the outcomes specified in the ABFA Strategic Plan.
- Facilitate the barramundi farming industry participation in Seafood CRC projects and the extension and utilization of the project results, particularly in relation to the development of new products and new markets.
- Work towards establishing a mechanism by which the ABFA can fund its own R&D coordination and communication activities.
This project provided ABFA with the capacity to provide information and essential contacts and support to CRC participants and researchers involved in projects relating to this industry. This was especially important as the capacity of the industry was stretched as a result of floods and cyclones. The resources provided as part of this project enabled research and development to continue as a priority.