This project has been developed following the discovery of a number of issues in the direct supply of the product to the China market during the progress of current project 2009/723. These, if not addressed, pose a risk to the sustainable success of this market development initiative. However, the scope to fix these problems is outside the scope of the current project.

The specific issues that need addressing are:
1. The current wild caught abalone product being supplied to the trial restaurants of the program is not always presented to support the premium positioning. There appear to be issues with current processes and packaging that affect the product quality that have been seen by the project team during market reviews in China. Inconsistency in product quality heightens regulatory and customer scrutiny of quality and safety parameters.
- The project will provide technical expertise and experimental support to assist current suppliers in optimising raw materials, labour, equipment and packaging and to develop a quality criteria system to supply product that meets the premium positioning in the current project.

2. There is currently a low level of engagement between the importers and the end user and consumer (restaurants and their customers). As the current project builds customer relationships, we have the opportunity to work closely with them to:
- supply the technical requirements to ensure that authentic, safe quality products (current and new) are available through the direct supply channel to China.
- develop new products variants based on direct end user feedback on what are required for the market. Development of new products and a market for them will help remove the price volatility and supply issues associated with a mainly live market and overcome one of the barriers to having Australian wild caught abalone on premium restaurant menus.

The potential reduction of regulatory thresholds for marine biotoxins in the EU will have significant negative economic consequences for the Australian oyster, mussel, scallop and abalone industries (and pipi’s if domestic regulatory thresholds also changed).

The scallop, oyster and mussel industry currently export product to the EU. Total scallop exports to the EU in 2006/2007 were valued at around $4,551,000 AUD (187 t). Other mollusc (including oysters and mussels) exports to the EU in 2006/2007 were around $1,084,000 AUD (255 t). Due to the periodic occurrence of okadaic acid toxins and saxitoxins in Australian shellfish the implementation of reduced regulatory levels would reduce the amount of product eligible for export to the EU.

Exports of Australian abalone to the EU ceased in 2007, this was in part due to the enforcement of marine biotoxin regulatory limits by the EC. The wild caught abalone industry is attempting to regain market access to the EU through determining alternate risk management procedures for marine biotoxins in abalone. The reduction of regulatory levels for marine biotoxins may impinge on future EU access arrangements for Australian abalone.

Experience has repeatedly demonstrated that European decisions can impact on other more commercially significant markets, including Asia and the domestic market. Codex may also be prompted to change marine biotoxin guidance levels in response to EU changes. Wide spread adoption of reduced regulatory levels for marine biotoxins would result in increased growing area closures in Australia and less product eligible for sale. This proposal aims to assist in maintaining the current EU regulatory limits for marine biotoxins which will allow the current amount of shellfish to be exported to the EU and avoid other markets being influenced.