Yellowtail kingfish (YTK) farming is identified nationally as the greatest opportunity for new aquaculture development in the next few decades through substantial increases in farmed area and product, and use of aquafeeds, resulting in growth in regional economies and employment. Within 10 years, YTK production is expected to increase by 34,000 tonnes, worth $440 million, and using 68,000 tonnes of aquafeed worth $136 million. The key challenge to achieving this growth is for industry to diversify its focus from supplying only the relatively small volume, high price sashimi market to the larger volume, lower price Australian "white fish market", while enhancing farm productivity and reducing operating costs to maintain profitability. This project will enable industry to grow its position by developing more cost effective, sustainable feeds and feeding strategies to enhance YTK growth and health; the industry's highest common R&D priorities as feed and feeding strategies comprise 60% of operating costs. It will also network two key Australian YTK aquaculture companies and their aligned research institutions (SA and NSW). A third producer (WA) and aquafeed companies are likely to invest in subsequent years. As such, this project will meet the designated 'Rural Research & Development for Profit Programme' objectives:

1􀀑􀀃. Generating knowledge, technologies, products or processes that benefit primary producers,
2􀀑􀀃. Establishing and fostering industry and research collaborations that form the basis for ongoing innovation and growth of Australian agriculture.

The key Activities wil address the YTK industry's common R&D priorities through three components/themes:
1. Economically sustainable feeds and improved diet formulation (NUTRITION);
2. Improved FEEDING STRATEGIES to increase profit; and
3. Improving nutritional HEALTH to boost productivity.

Once the project is initiated the Steering Committee will develop an agreed approach to engage with aquafeed companies to maximise participation in and contribution to the project.

This application addresses the NSW FRAB and FRDC Subprogram Priority 2 INDUSTRY 25 – Developing Marine Finfish Aquaculture in NSW.

NSW imports approximately 85% of its seafood and needs a substantial increase in investment and production, most notably, new marine based aquaculture development is required. However, marine aquaculture development is fundamentally constrained by the lack of background biological and economic information. To develop marine finfish production, the NSW government has invested significantly in establishing a 20 ha Marine Aquaculture Research Lease (MARL) off Port Stephens with approval to produce up to 998 t fish/annum. Yellowtail Kingfish (YTK) is the primary species of interest. This interest in YTK is in part driven by a shortfall of Kingfish and Barramundi from aquaculture in local markets – of the order of 460 t at the Sydney Fish Market alone in 2013.

This project will complement the DoA project "Growing a profitable, innovative and collaborative Australian YTK aquaculture industry: bringing ‘white’ fish to the market - RnD4Profit-14-01-027". The end users are the Public, Regulators and Industry. Research will address short term needs to develop marine fish farming in eastern Australia and to provide a platform for ongoing research.

Industry need: YTK production within Australia has been challenging and further research is needed, particularly when entering new farming environments. It is essential to identify supply chains from broodstock to market. In particular, culture of the largest juveniles possible on land before transfer to seacages is essential to optimise survival and production. Land-based techniques need to be developed for viable production of advanced juvenile YTK.

Public need: Extensive public consultation identified key concerns with respect to the sustainable operation of the MARL. Keys concerns related to viable operation of marine fish farming and need to be investigated.

Regulatory need: There is a need for NSW DPI to develop a Marine Waters Sustainable Aquaculture Strategy for NSW (MWSAS) to streamline investment pathways and promote sustainable seafood production. Data from this project will be an essential component of the MWSAS.