Profitability Fattening Baby Southern Bluefin Not So Sureff
6 January 2012
Australia Source: Port Lincoln Times
Tony’s Tuna International is trialing a new project that will see southern bluefin tuna grown out for 18 months instead of the traditional six.
The project, which began last year, will see fish caught in November weighing seven kilograms grown throughout the year to a marketable size.
Australian Southern Bluefin Tuna Industry Association chief executive officer Brian Jeffriess said the project followed trials undertaken by the industry from 2006 to 2008 that looked at research of northern bluefin tuna (NBT) grown out in Croatia.
The Croatian project saw NBT grown out over a three-year period from six kilograms to over 40 kilograms, but Mr. Jeffriess said the reality was the two different species of tuna were very different.
“Most important, the grow out and government regulation environment in the Mediterranean is different,†he said.
“There are no predators in Croatia, and government rules are much more flexible. The predator risks and the loss of cash flow mean that the current business model of holding for six months will remain the core business. This longer-term grow out will only ever be 10 to 15 percent of the tonnage caught each year.â€
Mr. Jeffriess said an all year round grow out period meant a fresh supply of tuna all year round would be available for new markets.
“These markets, for example Korea and China, are largely fresh fish markets at this stage, and require all year supply,†he said.
“All year grow out will also be more economic use of the large capital investment in Port Lincoln ranching, for example, boats and pontoons. Using these for six to seven months each year is under-utilisation of assets. Whether the longer grow out is better use of some of the quota will only be clear after experience.â€
Currently, the industry focuses on growing tuna to 20 kilograms, but Mr. Jeffriess said the longer grow out phase would have economical impacts to get fish to that size.
“Growing fish out from a smaller size is very expensive in terms of feed and other daily operating costs,†he said.
“To continue to grow and be more stable, the industry requires even more innovation, higher productivity and more value adding. It would be easy for the industry to sit back and rely on the weaknesses in competitive countries, and on a strengthening Japanese demand. This is never good enough. The commercial trial by Tony's Tuna is just another example of the risk-taking and innovation skills that continue to drive the tuna industry.â€
Mr. Jeffriess said a price increase in Japan in 2011 helped the industry finish off the season strongly after 2009 saw the lowest ever price for tuna.
