The Program is required to enable the economics research required over the next 3-4 years by retaining the WRL Economist and engaging a WRL Data Analyst to :

1. undertake research and demonstrate the effects of COVID-19 and international trade disruptions on the industry’s financial wellbeing and economic contribution, as a narrative incorporating the pre-, current and post-disruption era;

2. investigate and implement enhancements to the WRL MEY model based on verified stakeholder feedback;
• MEY modelling is based on (among other factors) expected longer-term beach prices for lobster achieved by fishers. Beach prices are themselves underpinned by prices achieved in domestic and export markets for live, frozen and other processed forms of western rock lobster, and supply chain costs — all of which have changed markedly over the past couple of years and have influenced the longer-term outlook considerably.
o Domestic markets have absorbed higher volumes of Australian product over the past two years than in the previous ten, encouraging a pivot by processors to include more cooked, frozen and other processed product in the product portfolio.
o Frozen and chilled product has also been demonstrated to have general acceptance in overseas markets, albeit at lower prices than achieved by similar live product.
o Air and sea freight costs and reliability have been adversely compromised in the face of the continuing COVID-19 pandemic, with the medium-term outlook for freight costs expected to be a multiple of pre-COVID rates – affecting the relative attractiveness of domestic versus export markets.
o Processors and marketers have explored alternative export markets and paths to market in the wake of political uncertainty and trade disruptions. There is a need to understand the implications of this market shift on the net beach prices achievable by fishers, which will be achieved through a better understanding of the changes in market access and supply chain costs (transport, live holding, handling, additional processing, freight forwarding by air and by sea).
o Taken together, this suite of change constitutes a significant, and potentially longer-term, challenge to the western rock lobster industry that has high potential to bring about changes in industry structure.

3. research and implement mechanisms by which individual fishers / business owners can benchmark their businesses against relevant industry economic standards.

• Benchmarking aims to improve the internal performance of fishers' private business operations by providing each business with an opportunity to compare itself to the industry's performance
• Benchmarking is not limited to economic metrics, including physical metrics such as fuel use that enable a more granular understanding of the carbon footprint of the fishing fleet.
• The aim is to generate an understanding of the range of cost structures in the fishing fleet, to better inform the cost elements of MEY modelling for economic sustainability of the fishery.

4. investigate and implement enhancements to the WRL Global Trade Report.

• The pandemic and its ongoing turmoil, combined with trade disruptions to Australia’s live exports, has brought about a change in global lobster trade flows into the highest volume, highest value market – at Australia’s expense.
o The resultant situation includes a loss of market share and value to alternative suppliers of live spiny lobster, other lobster species, and other high value crustaceans.
o Consumer preferences have shown signs of changing in response to COVID and associated health policies, regulations and restrictions. During the course of the pandemic, consumption of rock lobster pivoted to at-home consumption, with some preference-shifting to frozen product, particularly in countries with aggressive health policies that enacted operating restrictions on restaurants and larger gatherings.

5. research and implement mechanisms by which WRL's Global Trade Report, MEY Model and Markets Dashboard would work together with DPIRD's Harvest Strategy to underpin TACC setting into the future, adding considerable benefit to government as the resource manager by supplying timely, independent, industry-oriented information to the consideration set

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.