Aquaculture is growing strongly but only represents a small share of fish and seafood product output
Melbourne, Australia (PRWEB) October 11, 2012
The Seafood Processing industry has experienced turbulent conditions over the past five years. According to IBISWorld Industry analyst Naren Sivasailam, “revenue has been adversely affected by declining seafood production, lower prices and increasing imports”. The industry has also become increasingly dependent on the domestic market as export prices declined due to limited stocks, restrictive legislation and an ascendant dollar. However, domestic demand has been buoyed by growth in per capita seafood consumption, supported by continued increases in product innovation, and positive media attention on the benefits of seafood and increasing consumer health awareness. Wild catches have been affected by overfishing, climatic conditions, disease, increased fuel costs and reduced quotas and access due to management policies supporting sustainability. However, aquaculture growth has softened some of this decline. In the five years through 2012-13, industry revenue is expected to decline by 0.7% per annum to total $1.39 billion.
The future prospects of the industry remain tenuous, as declining production levels and rising imports continue to threaten the domestic industry. In 2012-13, industry revenue is expected to fall by 1.4%. Optimistically, global demand for high-value Australian seafood such as rock lobster and abalone is expected to pick-up over the next five years as the developed markets of North America and Europe begin their respective recoveries. Domestic demand for seafood is also expected to increase due to continued trends towards healthy eating, population growth and income growth. Domestic production of seafood will depend on domestic catches and aquaculture growth, which in turn will be affected by fisheries policy, costs of production, climate, disease and technological developments. The government is expected to continue to implement policies to increase the sustainability of Australian seafood stocks. The policies in the short term will reduce seafood catches, but in the long term improve stock levels and profitability of the fishing industry. “Aquaculture production is forecast to grow strongly over the next five years, but it is not expected to solve the supply problem as it represents a small share of total fish and seafood product output”, says Sivasailam.
The Seafood Processing industry has a medium level of market share concentration. The incumbent players, such as Tassal and Simplot are large vertically integrated organisations that have extensive farming and processing facilities and have increased industry concentration through a series of acquisitions such as Huon Aquaculture and Springfield Fisheries. There also exist smaller processors, particularly in the fresh, smoked or dried segment, where minimal capital and infrastructure requirements make it easier for them to participate. The top four industry players are Tassal Group, Simplot Australia, Geraldton Fishermen’s Co-operative, and A Raptis & Sons.
For more information, visit IBISWorld’s Seafood Processing report in Australia industry page.
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IBISWorld industry Report Key Topics
Businesses in this industry process and manufacture fish or other seafood. This industry also includes businesses that operate vessels that process, but do not catch, fish or other seafood. This industry does not include fishing vessels that both catch and process fish or other seafood. This industry also does not include firms that freeze whole finfish or shell, freeze, or bottle oysters in brine; these are included in the Fish Wholesaling industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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