Communications Program – Increasing community understanding, trust and acceptance for the Western Rock Lobster industry
Western Australian based Institute for Spiny Lobster Research Business Plan
WRL commissioned a concept study to examine the strategic case for the Institute. The study also provided a detailed assessment of the State Government’s current return on investment from the financial contributions made via the resource.
WRL has engaged with many stakeholders, ranging from its members, fishers and processors to other Australian Spiny Lobster associations as well as State and Federal Government. The institute concept study report has been well received by members and stakeholders who have been positive about the concept and interested in receiving further information. There is general consensus that the institute be a WA based institute for spiny lobster research and focussed only on western rock lobster. The institute can then consider and work towards submitting a SRC bid to join with UTAS and SARDI to formalise national research with other entities. The institute can by provide a mechanism to collaborate on a project by project basis with other organisations such as Southern Rock Lobster (SRL) which SRL are supportive of.
Overall, and based on extensive consultation, there is general support for WRL moving to the next stage of documentation including a comprehensive business plan.
In order to present a ‘bankable’ case for the proposed Wa based Institute for Spiny (Rock) Lobster Research (‘Proposed Institute’), a business plan including the following key studies are required:
• Research Priorities Plan
• Business Case
• Governance Framework
• Investment Proposal
All are necessary to underpin optimal likelihood of successful establishment of the Proposed Institute and its sustainable operation.
Final report
Understanding the Markets for Western Rock Lobster
Understanding the Markets for Western Rock Lobster (Phase 1 Market Intelligence)
The Western Rock Lobster Council's Strategic Plan 2017-2021 identifies the need to have a far greater understanding of markets in order to achieve at least one of its Objectives: VIZ: "The WRL industry is professionally managed to sustain its economic contribution to the WA economy." The stated Strategy to achieve the Objective is to:- "Collaborate and invest in targeted research for future resource security", of which one of the priority tactics is to:- "Invest in improving understanding and analysis of market, trade and industry data, broader trends and impacts for the WRL industry."
There is a clear understanding by the industry that it needs to have market intelligence if it is to remain economically sustainable, reduce its risk and improve overall income and profitability. Rock lobster export data from the FRDC trade database (from figures supplied by AQIS (Biosecurity Australia)) shows that over 90% of WRL exports are sent to Viet Nam, worth $396million to December 2016 with just $3million of exports to China and $15million of exports to Hong Kong. We know that the Vietnamese data figures almost entirely end up as Chinese consumption, but the exact final destination for the mass of lobster is largely unknown beyond the importer and some wholesalers. Data privately collected by exporters is generally unavailable to industry, or produced in a form that prevents in-depth analysis of the potential for expansion. This data will be sought in the project, but the project needs to make provision for independent collection and certainly of verification of such data.
The information gathered from this project will be for the WRLC. Through this project the WRLC will provide industry and members with market information including current trends in as close to real time as possible. The WRLC will take on responsibility and create a market dashboard to better inform its members. The WRLC can also provide information from this project to the TACC Subcommittee in order for the subcommittee to provide evidence-based advice on future TACC settings for the rock lobster commercial sectors.
Final report
The objective was to analyse available data on the production, export and markets for WRL and competitor products to ensure that the WRL industry has sufficient market intelligence to remain economically sustainable, reduce risk and improve overall income and profitability.
The deliverables of this project include a comprehensive collection of reliable datasets, which are available for interrogation, to support effective decision-making by the WRL Total Allowable Commercial Catch (TACC) Committee and Board. The intended outcome is a more informed industry, with a particular focus on those involved in making TACC recommendations.
Economic contribution of the Western Rocklobster industry to Western Australia and Australia
WRL IPA: review and analysis of the risks associated with the sustainable development of the WA Rock Lobster industry
The Board of the WRLC has identified the pressing need for both the Board itself and the general membership to have a better understanding the the non-ecological risks associated with managing their fishery. In this context risk is defined as the effect of uncertainty on the ability of the organisation to meet its objectives. The management of this risk is is via arrange of activities that the organisation intentionally undertakes to understand and reduce the effect of uncertainty. This has not been attempted before and in order to meet the objective it is necessary to create a risk management framework in accordance with AS/NZS ISO 3100/2009 Risk Management Principles and Guidelines. This is necessary because the Standard provides the starting point, a standard vocabulary and a baseline for comparisons and assessments of risk management processes. It is however also critical that judicious use of terminology and vocabulary is employed when engaging with industry and the WRLC Board recognises that if the wider industry is to be confident that its Board is acting to best practice then the industry fully understands what that means.
Establishing a low risk incremental approach for setting Total Allowable Commercial Quotas (TACCs) (changing quotas) in the Western Rock Lobster Fishery, taking into account maximum economic yield and other industry objectives
The WRLC needs generally-accepted methods for setting the annual quota that is robust to many of the differences that exist throughout industry but underpins within an acceptable harvest range, resource sustainability. The approach to be adopted needs to take into account MEY analyses, changing price relationships in the market, known risks facing the rock lobster industry, future catch and biomass projections and limits on harvest rates. Uncertainty towards moving to a larger quota can be accommodated by adopting an iterative approach to quota setting built around better industry understanding of the market and other relevant factors. Ideally an annual quota setting process needs to be underpinned by sustainable stock conditions and take into account information derived from ongoing monitoring of market conditions and industry trends. This would enable risk factors to be taken into account balancing the competing requirements of optimising price, preventing oversupply and excessive price investment instability.
The failure of Industry to reach consensus on an agreed methods for future quota setting could result in other parties setting the agenda.
Preferably, as most of the financial risks fall within industry, the industry has a primary role in annual setting of quotas with a transparent accountable decision framework within an appropriate governance, reporting and dispute resolution framework (if necessary) that is supported by government and industry.
Final report
Western Rock Lobster Council Inc. (WRLC) Research, Development and Extension Program, including resources and processes to consolidate and coordinate WRLC RD&E planning and funding so that overall RD&E outcomes are delivered in an efficient and cost-effective way
The industry structure comprises around 400 small owner operator businesses mainly in regional areas and spread over more than 1,000Km of coastline with little or no capacity to coordinate investment in and manage industry RD&E. In 2011-12 the Gross Value of Production (GVP) for the Western Rocklobster Fishery was $177million and production of under 5,000MT under half of the long-term average of 10,800MT. With predictions of a return to well above the long-term average (see http://www.fish.wa.gov.au/Species/Rock-Lobster/Lobster-Management/Pages/Puerulus-Settlement-Index.aspx) a coordinated strategic approach to RD&E for the industry is vital to continue maximising profitability across the value chain and to facilitate market diversification.
Two distinct needs are involved in any consideration of better RD&E co-ordination for the Western Rocklobster sector:
1. The strategic issues of RD&E prioritisation, funding and the linkages to (and support for) both industry development plans and Government objectives of industry development.; and
2. The operational issues of facilitating effective communication and coordination at all levels and particularly among researchers and industry,