Sardines are an undervalued species in South Australia, with the majority of the catch going for tuna feed for an average price of $0.72/kg. The industry has recognised the need to increase the value of the fishery, and that more of the catch has to be turned into value-added products for human consumption. In order to achieve this aim, it has targeted to use at least 10% of the TACC for value-adding.

Three of the licence holders have invested in equipment and processes to produce value-added products. However, individually these businesses are having limited success, struggling to adopt the technical and operational practices that are required to deliver safe, profitable products for human consumption markets both domestically and abroad. This project will provide technical expertise and experimental support to assist them in optimising raw materials, labour and equipment and to develop new products specifically for these markets.

There has been limited success in value-adding sardine products for human consumption in sardine fisheries in Australia. As a result, research has focussed on increasing the value of sardines but has not resulted in products being successfully test marketed/commercialised and evaluated. This is perhaps due to a disconnect in the supply chain between consumers, markets, distribution and processing. We now have the consumer/market intelligence to understand the barriers to sardine acceptability. We can develop products that will overcome these barriers and with the businesses already supplying into the human consumption markets, we have an identified route to market to commercialise and evaluate the success of these new products.

The project offers the opportunity for the three businesses to work together to achieve more than could be individually. They will benefit from the economies of scale that business partnerships have to ultimately deliver safe, profitable products to market for human consumption.

The Strategic Plan Summary (FRDC 2002/313) reports as follows:
For all its economic promise the industry faces some challenges that constrain growth and profitability:
• Lack of appropriate peak body structure and supply chain fragmentation
• Limited enterprise commitment to joint industry development
• Complacency in dealing with market issues – predominant wild caught focus
• Limited sectoral or peak body strategic planning
• Policy dominated by resource managers and technologists rather than those with commercial and market experience.

The industry structure comprises around 700 small owner operator businesses with little or no capacity to coordinate investment in and manage industry development. Recovering lost industry value and delivering future growth is contingent upon coordinated investment in industry development at the whole of industry level.

SRL is now established and positioned to implement the strategic plan, and integration of R&D work across stakeholders, States, Australia and New Zealand, rock lobster subprograms, researchers and other related disciplines is now feasible under the leadership of SRL.

Two distinct needs are involved in any consideration of better national R&D co-ordination for the southern rock lobster sector:

1. The strategic issues of R&D prioritization, funding and the linkages to (and support for) both industry development plans and Government objectives of industry development.

2. The operational issues of facilitating effective communication and coordination at all levels (industry/researchers, among researchers, among industry, FRDC/researchers etc).

The industry structure comprises around 700 small owner operator businesses across three states with little or no capacity to coordinate investment in and manage industry RD&E. In 2008/09 the Gross Value of Production (GVP) for the Southern Rocklobster Fishery exceeded $200 million for the first time. A coordinated strategic approach to RD&E for the ASR is vital to continue maximizing profitability across the value chain within the sustainability limits of the resource and to facilitate market diversification.
Two distinct needs are involved in any consideration of better national RD&E co-ordination for the southern rock lobster sector:
1. The strategic issues of RD&E prioritization, 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 industry/researchers, among researchers, among industry, FRDC/researchers etc).
The new Partnership Agreement has been established to deal with these needs and under the Partnership Agreement resources are required for SRL to meet its obligations in the following areas:
1. Establishing and managing an RD&E committee
2. Engaging independent experts to both Chair and provide expert guidance to the process
3. Develop strategic and operational plans and projects to deliver these plans
4. Monitor and report progress and
5. Ensure effective governance, transparency, financial control and accountability.
Continuing to build industry value is contingent upon coordinated investment in industry development at the whole of industry level. SRL is now well established and has a track record of success in implementing the industry strategic plan and leading integration of RD&E work across stakeholders, States, Australia and New Zealand.
This project establishes the capacity to deal with Southern Rocklobster sector RD&E needs in a strategic and efficient way.