The South Australian tuna industry is making a strong recovery with a $60 million lift in income expected following a price slump in the past two years. A reduced flow of tuna on to the market from other sources and strengthening demand in Japan due to its gathering economic recovery are behind the sharp improvement in prices.
The industry expects to market $200 million worth of tuna to Japan this year.
Tuna Boat Owners Association president Brian Jeffriess said less competition from wild caught tuna and reduced farming in the Mediterranean and Mexico had cut the amount of fish available.
â€The price this year is expected to average about $27/kg compared to $18-19/kg last year. Final prices are yet to be negotiated, but the price will increase significantly,†Mr. Jeffriess said.
The tuna farming industry collapsed from peak production worth $267 million in 2002-03 to just $140 million in 2004-05.
Mr. Jeffriess predicts substantial growth ahead for the tuna farming industry with a value of $400 million to $500 million in 10 years time. His optimism is based on much greater certainty about the minimum quota level and major improvements in productivity. Mr. Jeffriess said the industry was very young and only about 20 per cent along the learning curve with considerable productivity improvements expected.
â€We’re looking very closely at growing out the fish for much longer following a very successful trial where we farmed the fish for 14 months instead of the normal three to seven month range,†he said.
It would increase production by 50 to 60 per cent if the entire industry did it, but Mr. Jeffriess said holding that many fish in the water for so long would be too risky. Nevertheless it would play a part in helping to provide a continuous supply of fish to the market.
The industry is also benefiting from processing about five per cent of its production - worth an expected $10 million - in Port Lincoln this year, rather than airfreighting whole fish.
“The processing technology is available, but it will develop slowly because it involves changing the culture in Japan where they traditionally like to do it themselves,†he said.