The FRDC HDR has identified the lack of information on markets and price formation in Australian fisheries as a major research gap. The need for such analyses has also been discussed within the AFMA Economics working group, as such information was seen as essential in supporting fisheries management.
This project is an attempt to reduce this research gap. In doing so, the information produced will be of benefit to fisheries managers, fishers and the broader community as we move our fisheries closer to maximising net economic returns.
The focus of this study is on the markets relevant to the Southern and Eastern Scalefish and Shark Fishery (SESSF), which is the main supplier of fresh fish to the Sydney and Melbourne markets. To date, only very limited empirical research has been conducted for these fisheries in Australia [4-6], most of which is now fairly old and is unlikely to be valid for current market conditions. Since the early 2000s the seafood market in Australia has changed, for example, due to increasing seafood imports and increasing domestic aquaculture production. Hence, market dynamics for products supplied by domestic fisheries may have also altered.
This case study was identified by the FRDC HDR as of high importance due to the current challenges facing the fisher in terms of unfilled quotas. One potential contributing reason that quotas are not being taken is that to do so would result in lower prices; of potential benefit to consumers but not to producers. Instead, the lower catches may be supporting higher prices. The outcomes of this project can provide insights into the extent of to which the marker is contributing to quota undercatch.
The study will focus on the impact of changes in supply on the price received on the markets. While the potential response of fishers to these changes in price (including avoiding large catches) is also of relevance to fishery managers, this will require further bioeconomic modelling work that is beyond the scope of this study, but may be seen as a high priority for future research.
There is increased awareness of the need for ecosystem-based fisheries management, with increased public expectations for sustainable management of fished stocks. However, reduced catch levels and increasing costs have stimulated industry calls for reductions in management costs, or for more effective use of the existing cost-recovered funds. Budget limitations have already led to annual fishery independent surveys (FIS) carried out less frequently, reduced observer monitoring (ISMP) to fund other projects, alternation of FIS and ISMP from year to year, use of Crew Member Observers (CMOs) to collect on-board length frequencies, retaining species at lower tier assessments instead of Tier 1 assessments, ad-hoc implementation of more multiyear TACs combined with adhoc implementation of break-out rules, reduction of the frequency of Tier1 stock assessments, and the postponement of critical Tier 1 stock assessments. Whilst all of these approaches are feasible and practical responses, their combined influence on the effectiveness of the monitoring and assessment at achieving desired management objectives has not been tested or demonstrated.
Current budget restrictions on AFMA have resulted in a departure from scheduled monitoring and assessment work, with increasing ad-hoc decisions about which components of that work undertaken each year. There is growing concern by stakeholders that the present monitoring and assessment program is incapable of addressing these developments. SETFIA and other industry associations are particularly concerned that fishing concession levies funding current arrangements will become unaffordable.
Given AFMA's legislative objectives to ensure ecologically sustainable development, to maximise net economic returns and to ensure cost-effective fisheries management, AFMA has proposed this project to develop proposals for a structured and cost-effective research, monitoring and assessment program to respond to requirements and emerging issues in the SESSF over the next 5 years. It may be possible to extend this horizon should a fully quantitative project follow this proposal.
There is little opportunity for fishers in the SESSF to increase profitability. All major species have been allocated quotas, and there is little scope to increasing quotas with all species fully exploited or overfished. While much research has focused on the collection of biological data, assessment of the status of fish stocks and the impact of fishing on the environment (Knuckey 2004) there is a need to investigate value adding to species currently captured by the fishery.
Silver warehou is one of the most promising low-value species to trial for value adding. At present there is little demand from the consumer public with its off white colour when filleted, large catches of it are landed during winter months depressing the price. Many hundreds of tonnes of this species is currently discarded at sea due to lack of markets.
The cost of establishing new markets for both the flathead and school whiting were considerable and borne solely by Consolfish, though all fishers benefited from the higher prices. The products were so successful that Consolfish can no longer afford to process small to medium flathead as the high price at the wharf makes it unviable.
Silver warehou is a relatively unfamilar fish to oversees processors. This project is needed to develop a consumer friendly product and then organise the processing techniques, further training and production planning. The Thai processors have indicated they are keen to process the fish and the Woolworth supermarket chain have indicated they will be willing to stock it on a trial basis. Promotion of the product will be required and will be undertaken at Consolfish expense.
Age composition data provides the key information necessary to effectively manage fisheries. The proposal provides a mechanism where age composition data can be gained using length frequency data and age composition data from different years and sampling events, which has previously been impossible. The benefits will be a reduced need for production ageing, more timely age composition data and the ability to construct age composition data from historical length frequency data where no samples were collected for ageing.
Currently the Age-Length Key (ALK) is the most widely used numerical method for assessing the age composition in a large sample of length-frequency data. However, the application of ageing data in this approach is restricted to the original sample of length distribution (ageing data from the same year the length-frequency sample is taken). Due to this severe limitation, the ageing information must be regenerated for each new data sample. Using the Fredholm First Kind equations, previous years ageing data can be used to generate the underlying age composition from the current length-frequency data. Furthermore, the ageing data may be added to include many years, improving the robustness of the statistic which can then be used to decompose the underlying age distribution from the given length frequency.
As noted by a number of referees, the major problem with the current methods is variable recruitment. We have demonstrated that the technique is tolerant to the most extreme changes in age frequency (see accompanying text). These extreme changes in age frequency are greater than any changes that could occur naturally through recruitment. The issue of variable growth may affect the efficacy of the approach, but to our knowledge, has only been observed in two species. These are black bream and blue grenadier. It is proposed that the technique be demonstrated on blue grenadier in the first year.
The cost of collecting ageing data is high, with approximately $150,000 spent each year on ageing samples from commercially important species within the South East Fishery. Due to the cost, the number of species aged is not optimal and species are prioritised on a scientific and social-political basis. The cost-benefit of applying this approach is intuitively a large reduction in cost of ageing to industry and more timely information on the age structure of the population. A formal cost benefit analyses will need to be conducted on a species by species basis. This is a function of different cost structures for ageing different species, different numbers of samples that need to aged for each species. These different numbers of estimates that need to be made for each species is primarily due to longevity and stock structuring.
The age-structured data obtained from this project will benefit the South East Trawl Fishery, the Great Australian Bight Trawl Fishery and the Gillnet, Hook and Trap Fishery which are supported by The Integrated Scientific Monitoring Program (ISMP) and various other stock assessment programs that rely on age-structured data.
Further, age composition data will be able to be reconstructed historically from species where samples were not aged but length-frequency data were collected. This will enable age-structured population analysis where the lack of ageing data prevented these stock assessment techniques from being previously used. The net effect of this approach is to greatly improve the knowledge base from which species are managed. One of key advantages of this approach is, if successful, will at the very least compliment current methods and provide temporal and spatial coverage of age composition information which is currently cost prohibitive and only collected for a few, high value species.
The implication of a technique that can provide age-composition data free from the restriction of those associated with the ALK is more cost-effective resource management.
The proposal has been developed in two parts, the first component is a 'Proof of Concept Study' where the use of the Fredholm First Kind Equations to provide age compositions from length frequency data will be further examined. If this is not assessed as successful in a workshop environment, the project will be terminated at the end of the first year. The second and third year will examine a broad range of species.
There is an urgent need in the marketplace for adoption of a well recognised, well understood, practical, rapid and scientifically based quality index for fresh seafood. This need is critical as the industry moves inexorably towards adoption of electronic marketing (such as Sydney Fish Markets SFMlive system), trading, remote selling and increased exports to discriminating markets.
This index must be in a form that is readily understood and can gain wide acceptance both domestically and internationally giving advantages to industry in meeting consumer demands through:
- Grading;
- Shelf life prediction;
- Improving buyer certainty;
- Supply chain management;
- Conflict resolution; and
- Education and training.
This project is designed to meet these highly demanding ‘whole of chain’ needs by capitalising on previous research knowledge gained in projects funded by predecessors of FRDC. This knowledge has been taken up in Europe and refined into the Quality Index Method (QIM) (see www.QIM-Eurofish.com) now widely adopted by industry. It is not only used in electronic auctions and by buyers seeking top product but is also the preferred sensory assessment reference method in all the European fish research laboratories and is on the road to becoming the approved EC official reference method. European research has shown that for QI schemes to be accurate they need to be developed / refined for each specific species.
This project is designed to be a pilot programme to undertake the necessary research and development to tailor the QI for application under commercial circumstances to a number of Australian species. It will also define a strategy for the cost effective commercial role out to other species.
