Fisheries

GVP $217 million est. Up 9% year-on-year.
Rising demand for seafood products and rising input costs have resulted in price rises.
China overtook Japan as NSW most valuable export market.

DPI analysis estimated the value of the NSW fisheries during 2021-22 at $217 million,^v up 9% year-on-year. Whilst the aquaculture sector suffered setbacks due to the floods and coastal inundation during early 2022 causing losses and damage to estuarine aquaculture production, seafood prices were higher to stable depending on the commodity due to strong demand for high-value seafood products.

Wild Harvest

Commercial fishers operate throughout NSW state waters including the ocean, beaches, bays and estuaries. The types of commercial marine fishery activities in NSW include the following:

Abalone Fishery - abalone are harvested from rocky reefs
Estuary General Fishery - this fishery operates in the estuarine systems in NSW
Estuary Prawn Trawl Fishery - the fishery mostly catches school prawns in the Clarence, Hawkesbury and Hunter rivers
Lobster Fishery - fishers use traps to catch the lobsters from rocky reefs
Ocean Hauling Fishery - this fishery targets finfish species including sardines, Sea Mullet, Australian Salmon, Blue Mackerel, Yellowtail Scad and Yellowfin Bream
Ocean Trawl Fishery - there are two sectors in this fishery: prawn and fish trawl where both use trawl nets in the open ocean

Ocean Trap and Line Fishery - this fishery uses a variety of traps or lines with hooks from rocky reefs
Sea Urchin and Turban Shell Restricted Fishery - sea urchins and turban shells are harvested from rocky reefs.

The wild harvest sector GVP value was $107 million in 2021-22, an increase of 7.3% year-on-year. Prices for salmonid and wild-caught prawn product increased, driven largely by rising food service demand and higher international prices.⁵⁹ In 2021-22, the wild harvest sectors contributed 50% to total fisheries GVP.

NSW fisheries are managed via limits on the allowable catch (maximum amount of a particular species that can be taken by commercial fishers) or effort (maximum amount of fishing effort (e.g. days) that can be used by commercial fishers). These controls ensure the long-term viability and sustainability of the NSW commercial fishing industry.

Commercial Wild Harvest Volume and Value¹⁷⁵

Estuary General
Estuary Prawn Trawl
Inland
Ocean Hauling
Ocean Trap & Line
Ocean Trawl
Southern Fish Trawl
Abalone
Sea Urchin & Turban Shell
Lobster
s37 Permit
Total GVP (RHS)

Download data (.XLSX)

Aquaculture

Total aquaculture production increased and strong growth in the prices of farmed Murray Cod and Silver Perch, edible oysters, and farmed yabbies⁵⁹ resulted in an increase in aquaculture GVP which grew to $106 million in 2020-21, up 7.8% year-on-year.⁶⁷ Aquaculture contributed 50% to total NSW fisheries GVP.

Despite a fall in average price, Crustaceans were the standout growth commodity, led by Black Tiger Prawns. A total of 724 thousand kilograms of Black Tiger Prawns were produced in 2020-21, up 46% by volume year-on-year.⁶⁷ For freshwater fish, Murray Cod also continued several years of strong growth, up by 17% year-on-year to reach 492 thousand kg. The average price per kilogram for Murray Cod also increased by 9% year-on-year contributing to a total product value of $9.6 million. Rainbow Trout production increased by 39% but average prices softened by 14%.⁶⁷

Mollusc (oyster) production, although still the largest aquaculture sector by far, was impacted in some areas by floods and production suffered under the less-than-ideal growing conditions. Total Sydney Rock Oyster production (dozens) for 2020-21 was down 4% year-on-year to $49 million.⁶⁷ The NSW oyster aquaculture industry is Australia’s largest producer of edible oysters and accounted for 59% of the total value of NSW aquaculture production in 2020-21.⁶⁷ It is the state’s most valuable fishery. The NSW oyster industry is based almost entirely on the cultivation of the Sydney Rock Oyster. The production of this species, which is native to the NSW and southern Queensland coast, is increasingly being supplemented by the expansion of production of the introduced Pacific Oyster and small numbers of the Native Oyster, which is produced in a small number of estuaries in southern NSW.⁵² Prolonged periods of rainfall, higher runoff and flooding across many key production areas during 2020-21 resulted in a decline in the total number of dozens produced in some estuaries however this was was partially offset by increases in the number of dozens produced in other areas.

Sydney Rock Oyster Production by estuary and year⁶⁷^ac

2018-19
2019-20
2020-21

Download data (.XLSX)

Trade

The value of NSW fisheries exports in 2021-22 grew by a notable 26% year-on-year to reach $36 million largely driven by dramatic gains in the value of select NSW seafood exports to China.³⁵ China overtook the Japan and the US as the largest export market for NSW fisheries in 2021-22, valued at $13.5 million,³⁵ up by an impressive 143% year-on-year and 287% above the 10-year average export value.³⁵ Fresh atlantic salmon effectively drove the boom in export value, up by 493% year-on-year and accounted for 49% of the value of all NSW fisheries exports in 2021-22.³⁵

Whilst this boom in exports is impressive, NSW does not produce farmed Atlantic Salmon and whilst some salmon is supplied by wild harvest, this is typically the Eastern Australian Salmon species which is unrelated to Atlantic Salmon. The vast majority of Atlantic Salmon supply in Australia is sourced from Tasmania, where it is farmed in large numbers in sea cages. Consequently, the significant increase in salmon exports from NSW was likely not NSW product but Tasmanian-produced product which was exported out of NSW ports due to COVID-related supply-chain challenges.

Fresh, chilled seafood exports are time-critical products, with a large proportion airfreighted to the required market. Typically, Australian seafood exports are carried in the cargo hold of commercial aircraft. Between 2014-2019, 76% of the total value of exported Australian seafood was exported by air, accounting for 26% of total value of air-freighted product, much of which was live product.⁶⁹ With few international passenger flights under COVID-19 restrictions, the majority of outbound flights were cancelled, and key transport routes disappeared.

In response to this issue, the Australian Government introduced a temporary, targeted, emergency support program, the International Freight Assistance Mechanism (IFAM), to keep global air links open for industries, such as fisheries, which rely heavily on airfreight to get their fresh produce to international markets. During 2020 alone, the IFAM reconnected air freight supply chains for over 37,000 tonnes of Australian seafood with an approximate value of $730 million. Over 70% of these exports were of Tasmanian seafood. In addition, seafood has flown on IFAM charter flights from all states, including on the air bridge from Hobart to Sydney to reach international flight connections.⁶⁹

The US was the second largest market for NSW fisheries, growing 16% in value year-on-year to $6.7 million. Japan, previously NSW fisheries most valuable market, declined in value by 54%, driven by a 66% fall in fresh and chilled fish exports, predominantly tuna.³⁵

Australia is generally an exporter of higher value seafood products and an importer of lower value seafood. NSW is a net importer of seafood, with a massive net trade balance of $820 million of seafood imported in 2021-22, indicating the level of domestic demand for seafood. The major import origins were Vietnam, Thailand, China, and New Zealand although there were many other key import markets. Prawns, preserved Tunas, Mussels, Fish and Fish fillets are some of the key import commodities.³⁵

Macroeconomic conditions

The March 2021 and February 2022 NSW coastal floods had a significant impact on the NSW oyster industry. Oysters and other shellfish can accumulate pollution such as runoff because they are 'filter feeders' and excessive rain events and flooding can pollute estuaries and affect production. Flooding alters the salinity and pH levels of the water and oysters are particularly sensitive to changes in water chemistry. Changes in water temperature and pollutants from flood waters also increase susceptibility to disease and mortality resulting in reduced production.⁵² In addition to the changes in water quality, the volume of water and floating debris resulted in damage to infrastructure and equipment.⁵¹

In addition to the impacts on production, harvest areas can be temporarily closed for harvesting due to the impact of high rainfall and flooding. A closure means no sales, no income; but farmers still need to maintain their stock and infrastructure. During the 2 years spanning 2020-21 and 2021-22, there were multiple periods where 100% of the state was closed for harvesting due to rainfall and flooding. Both 2020-21 and 2021-22 had more closures than any other year on record with numerous estuaries experiencing very long closures. The combined number of closure days for NSW estuaries over the two years spanning 2020-21 and 2021-22 was 20,512, a dramatic increase when compared to the 9,273 closure days over the two years spanning 2018-19 and 2019-20.⁶⁶

Global seafood demand rebounded strongly post-COVID-19, driven by growing demand for high value seafood in the US, EU and China.⁴⁹ Seafood is the most traded animal protein and in 2021, the global seafood trade was roughly 3.6 times the size of the global beef trade and five times the size of the global pork trade.⁴⁹ 54% of the seafood consumed worldwide is produced through aquaculture, making it one of the fastest-growing industries in the world. Global aquaculture production was worth $USD260 billion in 2019.⁶⁰

Strong growth in 2021–22 was driven mainly by unanticipated prices for salmonids, prawns, and oysters which is attributed to demand growth for high-value seafood products after the steady reopening of economies, and rising input costs for fisheries and aquaculture operations as a result of continuing logistics and trade disruptions caused by the COVID-19 pandemic.⁵⁹ During 2021-22, NSW fisheries exports grew much faster in value than in volume (26% vs.23%). Much of this increase is attributable to growth in exports of luxury seafood products such as prawns, lobster, trout, and prepared and preserved fish products such as caviar.³⁵

Stronger Primary Industries Strategy

NSW Shark Management Program

The NSW Government committed $21.4 million in September 2021 to continue and expand its effective, evidence-based shark mitigation program for 2021/22 and beyond. Major milestones have seen the significant expansion of the deployment of SMART drumlines and tagged shark listening stations statewide.

Strategic Outcome

Response Capacity

SMART drumline coverage has increased from 35 in the Ballina and Richmond Valley local government areas (LGAs) to 305 drumlines in total from Tweed to Bega, with 15 SMART drumlines in most LGAs.

The deployment of an additional 16 new tagged shark listening stations (VR4Gs) to complement the current 21 is almost complete and will result in every coastal local government area having at least one listening station. Thirty-seven shark listening stations will detect and report via the Sharksmart App and Twitter feed the movements of tagged White, Tiger and Bull Sharks along the NSW coastline.

As of July 2022, DPI Fisheries is currently tracking over 1,250 target sharks (White, Tiger and Bull Sharks) as part of this program. DPI Fisheries will continue to tag and track target sharks to contribute to scientific knowledge of shark behaviours while using this real-time information to inform the public of shark movements as part of the larger shark mitigation program. With ongoing funding of more than $85 million to continue this program until 2026, the NSW Shark Management Program is the largest and most comprehensive in the world.