Australian Prawn Farmers Association
Demonstration Farm Feasibility Study
Draft 4 May Final Report
FRDC Project 2011/238
May 2012
2
APFA Demonstration Farm – Feasibility Study
Copyright Fisheries Research and Development Corporation and Ridge Partners; 2010.
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otherwise, without the specific written permission of the copyright owners. Information may not be stored electronically in any form whatsoever without
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Disclaimer
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authors are the individual opinions expressed by those persons and are not necessarily those of the publisher, research provider or the FRDC.
The Fisheries Research and Development Corporation plans, invests in and manages fisheries research and development throughout Australia. It is a
statutory authority within the portfolio of the federal Minister for Agriculture, Fisheries and Forestry, jointly funded by the Australian Government and the
fishing industry.
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APFA Demonstration Farm – Feasibility Study
Farm Ownership Options
Table of Contents
1. Findings and Recommendations
Background
Findings
Recommendations
2. Non - Technical Summary
Task
Objectives
Other Matters
4
4
4
4
5
5
5
5
Study Team
Background and Need
Methods
Results/Discussion
Benefits
Further Development
Planned outcomes
5
5
5
5
6
6
6
Conclusion
3. Prawn Farming Outlook
Global Issues and Trends
Australian Domestic Trends
4. Australian Farm Trends and Outlook
5. Demonstration Farm Logic
Planning for Innovation
Human Capital Research
APFA Skills Networks
Demonstration Farms in Other Industries
Demonstration Farm Case Studies in Other Industries
Aquaculture Prawn Skills Formation
Farm Strategic Mission
Beneficiaries, Partners and Stakeholders
Governance
Funding
6. Candidate Farm Details
Candidate Farm Data
7. The Recommended Farm Site
Overview
APFA Powers and Risks
Farm Location and Design
Location
Design
6
7
7
7
8
9
9
9
9
10
16
Due Diligence
Acquisition Model
Business Model
Exit Pathway
16
17
17
17
Governance
Finance and Viability
18
18
Finance Options
Financial Viability
Scenario Sensitivity
Financing the Purchase
18
18
19
19
Study Finding
Bibliography
Appendix 1. Terms of Reference
Appendix 2. Extract from AustAsia Aquaculture 2011
Appendix 3. Australian Prawn Farm Data
20
21
22
23
24
Figures
Figure 1. Declining Global Growth Rate of Fish Production
7
Figure 2. Rising World Seafood Prices - faster for aquaculture
7
Figure 3. Australian Domestic Prawn Trends
7
Figure 4. Australian Trends and Outlook
8
Figure 5. APFA’s Qld Aquaculture Skills Network Partners
10
12
Figure 6. APFA Demonstration Farm Partnership
12
12
12
12
12
Figure 7. Candidate Farm Aerial Photos
13
Figure 8. Campwin Beach Prawn Farm
15
Figure 9. Demonstration Farm – Company Organisation Chart
18
11
13
14
15
15
16
16
16
16
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APFA Demonstration Farm – Feasibility Study
1. Findings and Recommendations

Capability to attract and train new farmers, enhance existing
industry networks and human capital, and speed adoption of best
practices and innovative processes,

Scale and resources available to attract substantial investment and
partners in single-site R&D investments and initiatives that both
challenge and showcase industry’s stewardship of public resources.
Background
This report documents and reports to the Australian Prawn Farmers
Association (APFA) and the Fisheries R&D Corporation (FRDC) regarding
the feasibility of establishing a proposed demonstration prawn farm.
The study team has consulted industry, APFA leaders, investment and
input partners, and R&D managers regarding the model concept,
objectives and expectations, and strategic risks and opportunities. Case
studies for comparable investments in other primary industries (dairy,
grain, and cotton) have also been developed.
Purchase of an existing prawn farm is the APFA’s preferred setup option,
to ensure a self-funded commercial enterprise.
The demonstration farm will be the primary site for industry research. The
APFA will seek FRDC and industry support to allocate existing R&D levy
funds appropriately. Surplus funds will be used to develop the farm and
implement research, training and community engagement programs.
The APFA has worked with the independent study team to establish a
detailed 10 year financial model to test the financial prefeasibility of the
preferred model design and related scenarios.
Findings
1. The feasibility study finds that the APFA constitution and articles
enable establishment of the proposed demonstration farm. Existing
and emerging organisational and strategic risks can be appropriately
resolved and managed by the APFA without impact on the proposed
development of the demonstration farm. (APFA to this finalize advice);
2. The study finds that APFA’s proposed investment in a demonstration
farm presents a strategically important and timely opportunity to
advance the maturing prawn aquaculture industry in Australia.
3. A review of shortlisted existing prawn farms currently for sale has
identified an active 13 ha farm at Sarina, Qld that will best meet the
three goals agreed by the APFA for this investment, as follows:
 Capacity to cost effectively evaluate, extend, deliver and
benchmark the performance of emerging technologies and
sustainable production processes, and commercialise best-cases,
4. The financial feasibility model developed jointly with the APFA for this
study finds that the $3 million (approximate) purchase price and
related commercial financing can be fully paid off by strong operating
(i.e. prawn sales) cash flow from the business over a 10 year period.
Over the first 15 years of the analysis the farm will achieve at least an
average after tax (@ 30% rate) net profit of $3.50/kg of prawns sold.
This is equivalent to the current Australian industry average.
5. An experienced prawn farm manager will be required onsite during the
1-2 year transition with the vendor.
6. Surplus cash will also be available from the prawn operating business
to also support RD&E projects, knowledge development and transfer,
and engagement programs. Sponsor and partner contributions will
also add to the available funds for this purpose.
7. A portion of R&D levy funds will likely be available to assist financing,
but based on the model, will not be required for this purpose.
8. The number of aquaculture licenses (including farms and hatcheries)
that include prawns, issued to date by all Australian jurisdictions is
approximately 96 (awaiting final data). The total approved area for
these licences is 1,973 ha, at an average size of 21ha. At April 2012, 25
of these licences were actively producing prawns across an aggregated
total area of 1,127 ha (average of 45 ha per active farm).
9. The latent effort in the prawn aquaculture sector is difficult to estimate
as many licenses are progressively switching to other species, and
some jurisdictional data is incomplete. It is estimated that latent effort
in the prawn aquaculture industry is in the order of 600-850 ha.
Recommendations
Based on this study, it is recommended the APFA proceed with purchase
negotiations for the preferred candidate farm, related due diligence and
organisational structuring.
The recommended farm entity structure is a Not-for-Profit (NFP)
company, wholly owned by APFA. The related governance arrangements
must be at arms-length from the existing APFA Executive and Members.
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APFA Demonstration Farm – Feasibility Study
2. Non - Technical Summary
6.
Task
7.
This study presents a business case prefeasibility study to establish and
commercially operate a model prawn farm by and for the industry. The
demonstration farm will enable a positive step change in the industry’s:
8.



Capacity to cost effectively evaluate, extend, deliver and
benchmark the performance of a range of emerging technologies
and sustainable production processes, and commercialise best-case
outcomes,
Capability to attract and train new farmers, enhance existing
industry networks and human capital, and speed adoption of best
practices and innovative processes,
Scale and resources available to attract substantial investment and
partners in single-site R&D investments and initiatives that both
challenge and showcase industry’s stewardship of public resources.
Objectives
The objectives for this study are to :
1.
2.
3.
4.
5.
Review relevant industry data, the Australian Prawn Farmers’
Association (APFA) constitution and articles, organisational risk
and strategic issues impacting industry over the next 5-10 years;
Consult industry and APFA leaders, investment and input
partners, and R&D managers regarding the preferred model
concept, performance objectives and expectations, and strategic
risks and opportunities:
Consider relevant model/demonstration farms in comparable
industries regarding their performance and the long term
quantitative and qualitative benefit streams accruing to host
industries;
Consider potential farm design, scale and site location options
proposed by industry, operational risks and suitability to achieve
the 3 main aims – technologies, human capital, and investment
capital;
Consider farm ownership and management, governance options
and performance reporting to owners;
Consider farm acquisition, set up and liquidation pathways; and
due diligence requirements;
Consider industry levy implications, and financing options over an
initial 10 year period; and sources and uses of surplus earnings
generated by the model farm venture;
Work with industry to establish a 10 year financial model to test
the financial prefeasibility of the preferred model design and
related scenarios.
Other Matters
Study Team
The report has been compiled by Ridge Partners, with input from the
APFA Executive and industry participants.
Background and Need
The APFA represents the interests and fosters the development of the
Australian prawn farming industry. With a farm gate turnover of more
than $70 million the sector provides more than 1000 direct jobs and 1800
indirect jobs in coastal Queensland and northern New South Wales. A
relatively small producer on a global shrimp scale, the industry leads the
world in productivity with an average yield of more than 8,000 kg per
hectare, while operating adjacent one of the world’s most pristine marine
environments. Supporting 35 member farms, the APFA leads an industry
whose primary competitive advantage rests on its ability to innovate,
deliver and adopt leading technologies and processes in a sensitive nearshore environment. The ongoing capacity to boost productivity, returns
and sustainability are central to investors, new farmers and firms wishing
to do business in the Australian prawn farming sector.
Methods
Desk research, industry and APFA consultation, and selective meetings
with third parties (e.g. financiers, technical experts) have been the primary
methods employed to complete this study.
Results/Discussion
The study finds that a demonstration prawn farm based on the APFA’s
preferred site at Sarina, Qld is technically and commercially feasible, and
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APFA Demonstration Farm – Feasibility Study
offers a financially attractive long term investment for the APFA and
Industry.
3.
Benefits
This study provides clarity and insight to both the APFA and the FRDC. If
the investment is pursued as recommended in this report, the primary
beneficiaries from the investment will be Australian prawn farming
enterprises, the APFA and its members, and the FRDC. Indirect benefits
will also accrue to regional communities through more secure prawn
aquaculture enterprises and related employment, aquaculture prawn
supply chain partners and seafood retailers, and prawn consumers.
Enhanced adoption of best technologies and practices by prawn farm
operators will also improve relations with fishery and aquaculture
regulators.
Further Development
The APFA is currently considering the report’s findings and
recommendations.
4.
5.
6.
7.
Planned outcomes
This study process and related engagement has resulted in 2 key outputs –
a sophisticated prawn farm model, and this final report to APFA and
FRDC. These outputs demonstrate and describe the feasibility of the
proposed demonstration prawn farm at the APFA’s preferred site. These
outputs provide a solid basis to plan for evaluate and implement the
demonstration farm.
8.
model concept, objectives and expectations, and strategic risks
and opportunities:
Three model/demonstration farms in the dairy, grain, and cotton
industries have been reviewed and quantitative and qualitative
benefit streams accruing to host industries;
Purchase of an existing prawn farm is the APFA’s preferred setup
option, and four potential candidate farms have been considered
against the three 4 main criteria – availability, technology, human
capacity and investment return;
A Not-for-Profit (NFP) farm ownership structure wholly APFA
owned, with separate management and governance, is
recommended;
The APFA Executive has reviewed the target farm and opened
discussion with the vendor regarding acquisition over the next 12
months.
The demonstration farm will be the primary site for industry
research. The APFA will seek industry support to allocate existing
R&D levy funds to the investment. Surplus funds will be used to
develop the farm and implement research, training and
community engagement programs.
The APFA has worked with the consultant to establish a detailed
10 year financial model to test the financial prefeasibility of the
preferred model design and related scenarios.
Conclusion
The report concludes that a demonstration prawn farm at the preferred
site at Sarina, Qld is technically feasible, commercially viable and can be
established under appropriate governance arrangements by the APFA.
Each of the project objectives has been addressed, as follows:
1.
2.
A strategic review of the APFA constitution and articles,
organisational risk and strategic issues impacting industry over
the next 5-10 years has been completed and all risks have been
resolved within limits acceptable to the APFA;
Consultation with industry, APFA leaders, investment and input
partners, and R&D managers has identified a preferred farm
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APFA Demonstration Farm – Feasibility Study
Figure 1. Declining Global Growth Rate of Fish Production
3. Prawn Farming Outlook
12
Global Issues and Trends





Fish is the world’s largest meat category - 81% of seafood tonnage is edible. Seafood
is also the most traded food - imports total US$110Bn/yr. Seafood consumption will
double by 2050 (FRDC, 2011). Growth is fastest Asia (from 11 kg to >30 kg).
Global wildcatch seafood supply has peaked – in 2015 aquaculture is expected to
become the dominate source of fish protein for human consumption. Aquaculture has
grown at an average 8.7% p.a. since 1970 (NACA, 2010). But slow adoption of technologies
(farming, supply chain, etc) creates bottlenecks. Viable new sites are increasingly hard
to find. Aquaculture’s prices (nominal) are forecast to increase by 50% by 2020.
World production of prawn (i.e. shrimp), both captured and farmed, is around 6 million
tonnes, 60 % of which enters world trade. Around 50 % of tonnage came from
farming in 2008 (FAO, 2008). Aquaculture’s share of prawn supply continues to increase.
Of the 300 species of prawn of economic interest worldwide; six species account for
83% of global catch. Farmed prawn is increasingly popular due to its more consistent
quality, more reliable supply; more predictable product sizes, and farming is better
suited to vertical integration and adaptation to consumer needs.
Shrimp is now the most important internationally traded fishery commodity in terms
of value. Annual global exports of shrimp are currently worth more than US$10 billion,
or 16 % of all fishery exports.
Global farmed shrimp expansion will be affected by availability of new technologies and
species (e.g. breeding, nutrition); use of innovative systems and products; price
competition (and chain margins) especially from chicken and meat; rising prices for
energy and inputs (e.g. fish feeds); risks to human health (e.g. nutrition, marine
biotoxins); consumer concerns re fish stocks and sustainability; supply chain standards
currently dominated by global retailers; supply chain certification/traceability
requirements and compliance; bilateral trade disputes and the need to manage carbon
emissions.
1981-1990
(%)
1991-2000
2001-2010
2011-2020
10
8
6
4
2
0
Aquaculture
Capture
Data Sources: FAO Year book 2008; OECD Agricultural Outlook 2011;, ABARES Fish Stats 2003-2009
Figure 2. Rising World Seafood Prices - faster for aquaculture
Fish, trade
4,000
USD/t
3,000
Aquaculture
Capture
2,000
1,000
0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Figure 3. Australian Domestic Prawn Trends
Tonnes
2003
2004
2005
2006
2007
2008
2009
Wildcatch
25,896
23,853
20,449
19,646
19,757
20,201
21,653
Farmed
3,403
3,723
3,258
3,541
3,088
3,985
5,381
Total
29,299
27,576
23,707
23,187
22,845
24,186
27,034
9,385
9,927
9,973
7,619
4,678
5,359
4,228
18,235
20,259
22,311
26,111
22,789
12,066
16,283
79
105
155
28
129
80
79
Prepared
5,175
6,545
7,376
7,448
8,529
14,637
14,998
Total
Production
Exports
Import
Frozen
Australian Domestic Trends
Non-frozen
Australians consume 2.47 kg/capita of prawns per year (18kg for all seafood), increasing at
around 2% annually. Although the data is quite volatile, import’s share of consumption
has increased from 54% to 58% in 6 years to 2009. Locally farmed prawns have increased
their share of domestic prawn demand from 7.8% to 9.9% in the same period. The
volatility of the A$ has a major impact upon the competitiveness of imported prawn
products in the domestic market. No locally farmed prawn products are exported.
23,489
26,909
29,842
33,587
31,447
26,783
31,360
Dom. Supply
43,403
44,558
43,576
49,155
49,614
45,610
54,166
Consump. kg
2.18
2.21
2.14
2.37
2.35
2.12
2.47
Import share
of Consump.
54%
60%
68%
68%
63%
59%
58%
Local Farm
share of
Consumption
7.8%
8.4%
7.5%
7.2%
6.2%
8.7%
9.9%
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APFA Demonstration Farm – Feasibility Study
Figure 4. Australian Trends and Outlook
4. Australian Farm Trends and Outlook



Prawn farming licences exist in Qld, NSW,
NT, WA and SA. In 2009-10, 97% of farmed
prawns were produced in Qld. The national
ponded area licensed for prawns was ~1025
ha. Farm licenses issued averaged ~21 ha.
Average farm gate prawn prices ($A/kg year
end June) received were: 2010-$14.27, 2009$14.28, 2008-$14.37, 2007-$13.79, 2006$14.14, 2005-$14.60, 2004-$14.65 (APFA, 2011).
Qld (DEEDI, 1995-2009) Productivity – avg. yield
(kg/ha/crop): 1996 – 3,715; 2003 - 3,400; 2008
– 4,054; 2010 - 6,181.

Qld Employment – FTE labour units: 1996 175; 2003 - 323; 2008 - 301; 2010 - 330kg.

Qld (DEEDI, 1995-2009) Farm Output per FTE: 1996 –
$84,640; 2003 - $137,660; 2008 – $138,110;
2010 – $221,410.

Compulsory R&D levy since 2001 0.034/kg.

Australian environmental standards are more
stringent than for competitors.

Energy prices are expected (AFGC, Nov. 2011) to
increase 8% in 2012, and ~40% in 2013.

$A strength will continue (AFGC, Nov. 2011). High
cost position of Australian prawn farms will
remain. Imports (Thailand, Vietnam, and
China) will continue to rise.

Outlook: Need to focus on domestic sales
and reducing unit costs through innovation,
and adoption of technology and best
practices. Australian farms must compete
with increased imports - drive efficiency and
productivity gains through existing systems,
and innovation in new systems. China may
become net seafood importer in next decade
– possible opportunity.
At April 2012
 99 prawn licences (farm or hatchery) had
been issued nationally for ?ha
 89 of these were for farms; 10 hatcheries
 25 farms were active in prawns – ?? ha
 The average active prawn farm is 45 ha
 Est. latent prawn farm effort is 600-840 ha
Farmgate GVP
2008 - $44 mill.
2009 - $57 mill.
2010 - $77 mill.
Brokers
Feed & nutrition supply
Genetic inputs
Technology inputs
Systems & compliance
Australian
Prawn
Farms /
Hatcheries
5% of volume to
City Fish Markets;
35% to
wholesalers, 30%
via brokers to
retail, and 30%
direct to retail and
consumers
4.5 kg of imported
farmed prawns are
consumed
domestically for
every 1kg of
Australian farmed
prawns
Route Trade & Food Service
Central
Fish
Markets
Wholesalers
&
Distributors
2.47 Kg of
prawns per
capita
domestic
consumption
Imports
Chain
Retailers,
Fishmongers
& Restaurants
Consumers
Human expertise
Demonstration Farm Focus
APFA Capacity
Direct Farm Sales to Retail and Consumers
Strategic Risks for Australian Prawn Farming next 5-10 yrs
Constitution & Articles: Development and operation of a
demonstration farm is within APFA’s scope (objects 1, 3, 4).
Powers: APFA has the power:
 to purchase, lease, invest in, acquire, construct,
maintain, deal with, operate and sell land and property,
 to hold shares in a company
 to borrow, lend or advance funds, and act as a guarantor
or mortgagor,
 to do all such other things as are incidental or conducive
to the attainment of its objects
Governance: The Management Committee may exercise all
the powers of the Association.
Members: must hold a current prawn farming permit, and
each have one vote.
APFA Organisational Risks for next 5-10 yrs
 Lack of new people to lead and support industry/APFA
 Reduced farmer support/membership and levy revenue
 Need for new organisational capacity creates APFA
governance problems
 ??










Macro economy risks to continue (AFGC, Nov. 2011) –
strong $A, labour scarcity, volatile global commodity
prices
Overregulation of aquaculture per Productivity
Commission 2004. Increased green tape- no new farm
approvals since 2002, compounded by latent effort
~600ha
Reduced competitiveness of farms against seafood
imports due to A$ and domestic carbon tax
Energy costs – electricity/gas comprise 8% of farm
costs (pre carbon tax). Remote farms face high costs.
Freight costs for remote farm inputs/outputs are high
Lack of industry self-reliance and slow adoption of new
innovation (e.g. genetics) disadvantages many farms
Redirection of domestic wild catch from export to
domestic markets will increase domestic competition and
reduce prices.
Lack of young farmers/professionals joining industry
Lack of private capital to ramp up investment in best
aquaculture sites
Lack of marketing by industry/chain for prawns and
seafood broadly
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APFA Demonstration Farm – Feasibility Study
5. Demonstration Farm Logic
Planning for Innovation
Australia prawn farms will continue to be small, high cost, niche producers
of quality fresh prawns. Import competition will continue in the near term.
Industry will only survive and prosper in two ways - by offering consumers
products that are better than the imports, and / or by running smarter
farming systems that create value through higher productivity.
At the consumer end of the chain industry is already differentiating its offer
- at ~$24.99/kg retail, local farmed prawns enjoy a $2.50/kg premium over
imported farmed prawns priced at ~$14.99/kg (ACPF, Edition 5 - April 2012). There is
no chance to increase premiums under the proposed ‘carbon tax’ regime.
At the farm end of the chain industry growth must be via new innovation
built around its unique strengths: -top genetics, low FCR’s, water quality,
best environmental systems, energy efficiency, etc. The APFA has been
investing with limited resources in key innovations for years (1995 closing
the lifecycle). Emerging results await uptake by all farmers. With more
funds now in hand, other innovations (e.g. energy efficiency, prawn feed
nutrition, pond lining, farm management) need to be given higher priority.
The Qld Aquaculture Industry’s 2011 Skills Formation Action Plan identified
“the huge disconnect” between the proven sustainability of farms and the
restrictions placed on industry growth by regulators. In response industry
plans to boost professional practices as part of aquaculture career paths.
Prawn farming needs few employees but competition for them is fierce.
The $80 million GVP industry employs around 350 FTE’s (DEEDI, 1995-2009)
including full time employees (250) and casuals. Their Qld location means
direct regional wage competition with high-wage resource companies, and
close oversight by Federal and State reef and marine regulators. Raising
the skills and productivity of employees is the best way to attract new
investors and partners, raise industry productivity, meet regulatory
standards, push high quality products into the supply chain, and therefore
ensure competitive wages for employees.
Human Capital Research
Recent reports on the seafood workforce (ABARES 12.1, 2012) and the rate of skills
formation in Qld aquaculture (Conn, 2010) identified issues, data gaps, and three
traditional areas of seafood training: Food Safety, Workplace Health and
Safety, and Processing techniques. The studies also found the main factors
which influenced the purchase of aquaculture training by firms and
individuals were the availability of 5 things: subsidies, in-house training,
expert trainers, manuals, and certification. Remoteness, high cost and lack
of time were found to be key barriers to further training.
The key trends highlighted regarding aquaculture training demand were:

Low incidence of post school qualifications, compounded by the high
degree of casualised workers and seasonality,

Industry is aware of, but not fully cognizant with, the education
sector, training content and modes of delivery.

Key factors in partaking in training are cost, mode of delivery and
credentials of the educator.

Industry’s training motivation is negative (i.e. driven by the need for
licence and legislative compliance) rather than positive (i.e. need to
enhance productivity and market competitiveness).
A national review of rural industry skills development (PIMC, 2009)
recommended that industries take a far more active leadership role in
building their own industry competitiveness.
The report’s first recommendation acknowledged ……”the crucial role
industry members play in providing leadership and direction on how to
improve labour and skill shortages. They are best-placed to identify labour,
skill and training requirements and should develop and drive the solutions
which suit their needs.”
APFA Skills Networks
The APFA has been pivotal in the management and success of an initiative
focused on advancing the workforce development needs of the broader
Queensland aquaculture industry – The Queensland Aquaculture Skills
Formation Strategy.
As Host Agency for this seafood industry wide initiative, the APFA has
demonstrated a commitment to advancing the capacity of the wider
industry as well as its own membership’s human capital, workforce
development and future management capacity.
Figure 5 lists the APFA’s current APFA’s workforce orientated network that
could be engaged to maximise outcomes from the model farm concept.
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APFA Demonstration Farm – Feasibility Study
Figure 5. APFA’s Qld Aquaculture Skills Network Partners
Management Course’, has met with unprecedented levels of success with
respect to industry endorsement and uptake of available training.
Queensland Rural Industry
Training Council
Australian Tropical Foods
TAFE Queensland.
Skills Queensland
Tropical North Queensland
TAFE
Australian Institute for
Commercialisation
Queensland Seafood Industry
Association
Djarragun College
Agrifoods Industry Skills Council
Queensland Fisheries Research
Advisory Board
Training Queensland
FRDC
Queensland Farmers Federation
Education Queensland
RIRDC
Seafood Standing Committee
Primary Industries Education
Foundation
Seafood CRC
Rural Skills, Training and
Labour Strategy – Industry
Advisory Group.
Northern Territory Seafood
Council
Sunshine Coast TAFE
Fisheries Queensland
Marine Ecological Services
Demonstration Farms in Other Industries
Uni. of the Sunshine Coast
LMC Training Ltd
Nambour State High School
Science, innovation and knowledge creation are at the heart of many
mature Australian primary industries.
Qld Workplace Health and
Safety Department
World Safety Organisation
Collaborating Centre (JCU)
Agribusiness Gateway Schools
Project
Electrical Safety Office
Robor Pty Ltd (Gateway
Schools Initiative)
Australian Centre for Agricultural
Health and Safety.
Qld Dept of Justice and
Attorney-General
Flagstone State Community
College
Centre for Public Health and
Tropical Medicine
Qld Dept of Education and
Training
Mossman State High School
Business Liaison Association
DEEDI Qld
The APFA maintains strong working relationships with vocational and
Higher Education training providers. In conjunction with the wider
Queensland aquaculture sector the APFA has been instrumental in the
design and implementation of an industry specific training delivery
framework. This initiative, rolled out as ‘The Advanced Aquaculture
The model farm concept would be a key driver of continued success for the
APFA and the prawn industry. The infrastructure and associated business
practices would enable the industry to continue to advance the workforce
and human capital development of its people whilst advancing the
productivity and viability of associated farming practices.
Opportunities may arise whereby the Executive could present the measured
benefits of this working model to other primary industries on a National
level. Should the operation be viewed as a National prawn farming centre of
excellence, there may well be the opportunity to enter into collaborative
agreements with global partners.
In summary, the APFA has significant capacity to ensure that the key pillar
of - ‘attract and train new farmers, enhance existing industry networks and
human capital, and speed adoption of best practices and innovative
processes’ and all associated milestones, can be met should the concept
turn into reality.
In at least three global industries (dairy, grains, and cotton) Australian
producers are relative modest producers but are world leaders because they
create and use the most advances
knowledge-rich production
Origin Energy Media Release Nov 2011:
systems.
One of Australia’s largest utilities Origin Energy hopes
The following table identifies the
key role of well-managed, wellfunded demonstration farms in
each of these industries.
to prove and demonstrate that mining and agriculture
can survive together in the same region.
Origin is planning a demonstration farm across the
Condamine River from its coal-seam gas facility in
western Queensland. The farm aims to show farmers
and communities that mining and agriculture can exist
together. When fully operational, the 1100ha
Monreagh property, will host 20 coal-seam gas wells.
The company plans to run what they call a ‘drought
free’ demonstration farm. They are guaranteeing
water supply to the farm so that it does not have a
drought problem.
Ridge Partners | Demonstration Farm Logic
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APFA Demonstration Farm – Feasibility Study
Demonstration Farm Case Studies in Other Industries
There are many “demonstration farm” initiatives across Australian industries. They include incorporated and not-for-profit (NFP) enterprises in industry (dairy
& cotton), regional collectives focusing on bioenergy, carbon farming, etc (Central Highlands AgriForum), and sectoral organisations (Birchip Cropping Group).
DAIRY
COTTON
DemoDAIRY Cooperative Ltd, Terang, Victoria
Established
Operations
1991
166 ha farm, dairy herd of 324,
10 employees - 5 on farm, 5 in support
The dairy industry operates multiple demonstration farms.
Role and Benefits
to Industry



Legal structure
Members
Governance
Principal Activities
and Programs
Project Partners
Set best practice standards for farmers through evidence
based trials and demo’s
Operate a good dairy farm
Undertake selected industry R&D to mitigate farmer risk,
promote better practices and model profitable
sustainability
An income tax exempt not-for-profit dairy Cooperative, at Office
of Fair Trading, Vic.
300 shareholders, 70% are farmers
Volunteer Board of 7- 4 famers, 3 non-farmers. 2 year terms
Monthly meetings open to members
 Operate a commercial dairy, and office facilities rental
 Host R&D projects and demonstrate to local industry
 School visits and Farm tours - local & overseas
 Research and demonstration
 Reports, data, media management – website
Dairy Aust.; RIRDC; Aust Pork Ltd; Lotic Water Matters; Aust.
Lot Feeders Assn; MLA; Warrnambool Cheese
Sponsorship
Commonwealth Bank (school education program), Genetics
Australia, Dasco Equipment, Stephen Pasture seeds, Hi Fert
P/L; Richardson & Dennis Insurance, Fonterra, Murray
Goulburn, WCB, Five Star Feeds, Warrnambool Toyota;
Heytesbury District Landcare Network; Glenelg Hopkins CMA;
Victorian Gov’t
Income/Budget
(2010-11)
The demonstration farm turns over around $400,000 p.a.
Dairy Farm net surplus $45,000; Project grants / fees $105,000;
Facilities rental $84,000; Sponsorship $63,000, Other $72,000
 How to successfully run a public relations program with
community and external stakeholders in industry business
 The wide range of commercial partners who are keen to
sponsor the demonstration farm facilities and projects
Key Learnings for
APFA
CROPPING
CSD - Cotton Seed Distributors P/L, Wee Waa, NSW
BCG – Birchip Cropping Group, Western Victoria
2000
CSD operates cotton seed production facilities across industry,
mostly with contract growers. CSD also uses 2 small
neighboring farms (total 410ha - “Little Mollee” 270ha, and
“Westella”140ha) for high security early technology seed
programs. Farms employ 2.5 FTEs; CSD total staff of ~100.
 Trial and demonstration of seed, water and crop rotation
technologies and best practices to growers and partners
 Early generation of seeds with high value textile traits
 Generation of data for OGTR biotechnology approvals
 Cost effective generation of surplus funds for RD&E
 Secure management of world’s leading cotton seed
genetics for premium staple irrigated and dry land cotton
CSD Ltd is a company limited by guarantee ($200), operating
with charity NFP status (tax exempt)
600 Members, 450 of which are cotton growers
Skills based board of 9-10 directors – 3 independent; minimum
of 5 Members; 3 year terms, monthly closed meetings
 Operating a small commercial cotton farm for surplus
 Trials and demonstration of seed and water technologies
in with (ground water, overland flood, and drip irrigation)
 Disseminate research & trial results to industry partners
 Use of Indigenous employment in farm operations
CSIRO as the cotton seed germplasm contract partner, and
related global commercial partners (Bayer and Monsanto),
particularly in low chemical - low water - high yield cottons.
 Nil. CSD pays all costs of the two farming operations
 CSD has consistently created the world’s best cotton seed
Germplasm for the last decade. IP and technology access
to the farms and seed is very carefully guarded
 Market value of demonstration farms (including water
rights) is around $5 million. Annual farm trading surplus is
approximately $150,000.
The demonstration farm turns over around $600,000 p.a. –
cotton production of around 1000 bales @$500 p. a. cotton, and
$100,000 from rotation crops (canola) and technology services.
1992
BCG initiates and manages agricultural research for
members’ on their demonstration farms; 17 employees



How a single site demonstration farm with a very high
innovation IP (Intellectual Property) and global security
threshold can be structured to manage industry strategic
advantage for its 1600 growers
How a demonstration farm can be commercially viable
based on sales of products, global IP and local services.

Improve the prosperity of rural and farming
communities,
 Bolster broader community vitality
 Provide practical solutions to farm production and
business constraints.
 Network for information, decision making tools, new
technologies and farming practices
An income tax exempt NFP incorporated body operating as a
charity under the Associations Incorporation Act.
417 farming families in the Wimmera Mallee region
Volunteer Board of 10- 6 famers, 4 skills based. 2 year terms
Monthly meetings open to members
 Conduct agricultural research and extension activities
 Disseminate research results across Australia
 Fortnightly technical bulletins, quarterly newsletters,
Members Only/other events, workshops, training days
 Members only access: News, website, forums, groups
Southern Farming Systems; GRDC; Grain and Graze
(MLA/GRDC); Mallee Catchment Authority;
Diamond: AWB/Landmark; Bayer Crop Science, Case IH,
Commonwealth Bank; Gason Tillage Equipment; Goldacre
Equipment; Incitec Pivot; Suncorp; Rural Finance Consulting,
Nufarm Crop Protection; Rural Finance Corp; SpecialOne
Insurance; Viterra; Westpac
Gold: Ridley, Stephens Pasture Seeds; Stock & Land; VFF
Bronze: AACL; Buloke Shire; Dow AgriSciences; 3SH/3WM
The demonstration farming group has a turnover of
around $3.3 million per year (details are not publicly
accessible)

How a disparate action learning model using multiple
privately owned demonstration sites can be a primary
source of knowledge transfer to producers and industry.
The wide range of commercial partners who are keen to
sponsor the demonstration farm facilities and projects
Ridge Partners | Demonstration Farm Logic
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APFA Demonstration Farm – Feasibility Study
Aquaculture Prawn Skills Formation
Figure 6. APFA Demonstration Farm Partnership
An APFA sponsored demonstration farm has the potential to incorporate all
beneficial elements and option identified in the industry’s strategic reviews
and plans, in the innovation and human capital literature, and the key
learnings drawn from the primary industry demonstration farm case
studies. There are no other suitable bodies that can progress this initiative.
Australian
Prawn
Farmers
Researchers
and
Universities
Farm Strategic Mission
The APFA has initiated the concept of a demonstration farm over the last 3
years. The Association intends the farm will fulfill existing and emerging
needs by integrating:



Sustainability & Compliance
Capacity to cost effectively evaluate, extend, deliver and benchmark
the performance of emerging technologies and sustainable
production processes, and commercialise best-cases,
Federal &
State
Government
Agencies
Capability to attract and train new farmers, enhance existing
industry networks and human capital, and speed adoption of best
practices and innovative processes,
Prawn
Farming
Knowledge
Discovery and
Transfer
Technology
and Farming
System
Partners
Governance & Viability
Input and
Service
Providers
Regional
Development
Programs
Scale and resources available to attract substantial investment and
partners in single-site R&D investments and initiatives that both
challenge and showcase industry’s stewardship of public resources.
Beneficiaries, Partners and Stakeholders
Governance
An industry managed, commercially operated demonstration farm is a
logical progression and a compelling pathway to bring all these skill and
innovation based opportunities together, cost-effectively. The APFA and
industry can “grab the action-learning reins” to plan and drive innovation to
every employee on every farm in Australia.
The APFA requires the proposed farm be controlled and owned (i.e. not
leased), and self-governed by a volunteer skills based board at arms-length
from its representational and advocacy activities. Based on the case study
reviews it is clear that a not-for-profit charitable entity wholly owned by the
APFA is the most advantages corporate structure for the demonstration
farm. The farm’s board will choose a manager to whom day-to-day
responsibility will be delegated, and report to the APFA.
The successful implementation of a demonstration farm will enable stepchange investment in innovation and knowledge transfer. For prawn
farmers, the key challenge is to increase average industry yield from 4t/ha
to 8t/ha (best in local class is >15t/ha). Farm employees, service providers
and inputters, chain and market partners, and regulators will also
contribute to and benefit from innovations developed and disseminated
from the demonstration farm.
The farm offers new options, networks and media channels for on-site
engagement with scientific and technical partners, Government regulators
and the local communities. The farm will enable industry to show case its
sustainability to communities and markets, and its intellectual property to
Asian and other investors looking to invest in the Australian prawn industry.
Funding
From the outset the APFA requires the new business be self-funding, and
commercially viable regarding both risk management and cash flow/profit.
To this end the APFA has tested the feasibility of the preferred Campwin
Beach prawn farm. The study and related financial model (see below) are
discussed in the next chapter.
Subject to FRDC approval, the option exists to use part of the APFA’s
existing R&D levy to fund the interest component of farm acquisition debt,
however the feasibility study suggests that may not be required. Levy
funds will be used directly to fund farm RD&E projects as necessary.
Ridge Partners | Demonstration Farm Logic
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APFA Demonstration Farm – Feasibility Study
6. Candidate Farm Details
Five existing prawn farms were considered by the prefeasibility study team as potential candidate demonstration farms.
Figure 7. Candidate Farm Aerial Photos
Farm A. Campwin Beach – 49 klms south of Mackay, Qld
Farm B. Monagold – 83 klms south of Mackay, Qld
Farm C. Prosperity Inc. - 34 klms north of Proserpine, Qld
Farm D. Hobson Invest’s. - 47 klms north of Townsville
Farm E. Coral Sea Farms – 20 klms north of Ingham
Ridge Partners | Candidate Farm Details
Draft: Commercial in Confidence
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APFA Demonstration Farm – Feasibility Study
Candidate Farm Data
Assessment Criteria
1
Aust. Business / Number
2
Principals
3
Manager
4
Farm location
5
Real property description
6
Farm license details
7
Ha approved
Farm A.
Symons Trust, Campwin B.
Farm B.
Monagold Pty, Ilbilbie
Farm C.
Prosperity Inc, Proserpine
Farm D.
Hobson Invest., Toomulla
Farm E.
Hinchinbrook Co, Halifax
Symons Family Trust
95 623 891 034
Mr David & Mrs Jean Symons
operating as DB & JH Symons
Family Trust
Mr David Symons
Chen and other Family Trusts
57 095 236 150
Mr David & Mrs Catherine Lin,
for David Lin and Catherine
Chen Family Trust, and others
Mr David Lin
Lease from family enterprise
34 142 007 476
Mr Geoff Tsai – lessee- 29 yrs to
run. Property owned by
Australian Taiwanese Family.
Mr Geoff Tsai
Private company
70 101 322 936
Mr Rick Hobson, principal,
trading as Prawns North
Private company
67 104 650 419
Mr Francoise Naude, principal,
trading as Coral Sea Prawn Farm
Mr Rick Hobson
Mr John Maloney
Campwin Beach, Sarina,
49klms south of Mackay
1 RP744613
Greenhill Rd, Ilbilbie, Qld,
83klms south of Mackay
50 SP208545
Proserpine, Qld
34klms north of Proserpine
1 HR1963
Toomulla, Queensland,
47klms north of Townsville
59 WG312
Macknade, Queensland,
19klms north of Ingham
10 SP118939
Qld 2005BC0281
Qld 2005BC0280
Qld 2005BC0288
Qld 2005TO0312
Qld 01NOCA1713
20 ha
10 ha
192.5 ha
18 ha
32 ha
9 ponds totaling 13 ha; some
expansion potential in license
9 growout ponds + settlement
ponds
Water and waste in/out
10 ponds totaling 9.5 ha; minimal
expansion potential
10 growout ponds + 3
settlement ponds
1 creek access
160 ponds totaling 217 ha; 140
ponds currently unused
20 growout ponds + settlement
ponds
2 creek access
18 ponds totaling 18ha;
development approval in hand
18 growout ponds + settlement
ponds
1 creek access
38 ponds totaling 42 ha; no
expansion potential
38 growout ponds + settlement
ponds
2 creek access
50% of ponds via settlement
system – 50% to mangroves
All ponds go through settlement
system
All ponds go through settlement
system
All ponds go through
settlement system
All ponds go through settlement
system
No onsite capacity
No onsite capacity
Extensive capacity on site
No onsite capacity
No onsite capacity
Limited capacity on site
Limited capacity on site
Limited capacity on site
Limited capacity on site
Limited capacity on site
Limited capacity on site
Extensive capacity on site, but
not to required specification
Adequate capacity on site
Limited capacity on site
Adequate capacity on site
Bitumen road to site. Rail
access at Sarina - 14klms
Bitumen road to site.
Rail access at Sarina 39klms
Bitumen road to site. Rail
access at Townsville 47klms
Bitumen road to site. Rail access
at Ingham 19klms
3 phase mains power to site
3 phase mains power to site
3 phase mains power to site
3 phase mains power to site
Limited on site accommodation.
Access to Sarina Beach motel.
Regional accommodation is
limited due to coal industry.
Limited on site accommodation.
Access to Sarina Beach motel.
Regional accommodation is
limited due to coal industry.
Bitumen road to site– internal dirt
road (5klms) in poor repair. Rail
access at Proserpine 34klms
3 phase mains power to site –
but not fully functional
Potential for custom built on site
accommodation. Access to
motel at Proserpine 34klms or
Cannonvale 41klms
Limited on accommodation on
site. Access to motel at
Toomulla (2klms) is limited,
better at Townsville 47klms
Limited on site accommodation.
Access to motel at Halifax 10klms
Site Visit. Owners want to sell
farm (~$3 million) before next
season due to owner’s health.
Currently for sale.
Site visit. Owners want to
sell/lease this farm to develop
another farm elsewhere. Sale at
$2.2 million or lease $220,000/yr.
Site visit. Property not for sale.
Holder wants to sublease ~20
ponds at “very low entry price”.
Operator wants to learn from colocated demonstration farm.
Owners want to sell farm ($3.54 million) as their business
focus has shifted from
aquaculture to property
development elsewhere.
Owner still assessing business
options and developing strategy for
this property.
Growout, and Settlement
8
Pondages available
9
Active ponds at Dec 2011
10
2 creek access
11
Settlement pondages
Hatchery
12
On site hatchery capacity
Processing and Marketing
13
14
On site grading, cooking,
processing capacity
On site freezer capacity
Infrastructure
15
Access to Road and Rail –
infrastructure
16
Electricity accessibility
17
Accommodation capacity on
site for industry,
researchers, etc to attend
courses
Acquisition Prospect
Ridge Partners | Candidate Farm Details
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APFA Demonstration Farm – Feasibility Study
7. The Recommended Farm Site
Overview
Several existing prawn farms in north Queensland are currently available for sale. In a
market with considerable latent effort the APFA would prefer to purchase an existing farm
rather than develop a green field farm site. Five existing candidate farms were considered in
detail for potential acquisition. Based on this analysis the Campwin Beach Prawn Farm is
recommended as preferred target farm to be purchased.
Settlement system:
Figure 8. Campwin Beach Prawn Farm
Hatchery access:
Processing capacity:
Freezer storage:
Marketing:
Accommodation:
Owner motivation:
Performance:
Assets:
Summary details of this farm are as follows:
Owner and Manager:
Farm Location:
Property Description:
Aquaculture license:
Farm site access:
Electricity supply:
Current area active:
Financial results:
Mr David & Mrs Jean Symons, as owners of the farming trustee entity
Located in a semi-rural position 3 klms behind Campwin Beach, near Sarina,
Qld and 49 klms by road south of Mackay. Vendors advise they have a good
working relationship with their local community, even though there is
mounting pressure from urban encroachment.
1 RP744613
Qld 2005BC0281 - approved farm area of 20 ha
Bitumen road to site - rail access at Sarina.
3 phase mains power to site
Nine growout ponds totaling 13 ha, with some expansion potential in license total of 11 ponds on site including settlement. The existing pond size and
configuration offer potential for dividing
some larger ponds for research purposes
without unduly limiting farming
efficiency or viability.
Farm has access to 2 estuarine water
courses – input water separate from
output water. Fifty percent of ponds are
serviced by the settlement system and
50% outflow to mangroves
No onsite capacity
Limited capacity on site – casual labour
Limited capacity on site
All product sent to Sydney Fish Market
based on owners’ private arrangements
Limited on site accommodation - access
to regional motel rooms is currently very
limited due to coal industry expansion.
Owners currently operate 2 prawn farms,
at Campwin Beach and Eimeo (5 ha farm)
just north of Mackay. Owners want to
sell the Campwin Beach farm for around
$3 million before next season (2012/13)
due to owners’ age and declining health.
Property is currently on the market.
The farm has been operating effectively
but viability is constrained by lack of
access to best genetics and nutrition.
Property, Plant & Equipment ($202,261)
includes 2 vehicles; and Goodwill on a
prior acquisition ($113,925),
The Campwin Beach Farm has been
operating profitably for many years,
producing 15 tonnes in 1995/96. Returns
for the last two years are:

Revenue: 2011 - $1,475,789; 2010
- $1,463,333

Pretax Operating Profit after
payment of external wages,
depreciation, finance charges
and rent: 2011 - $157,653; 2010 –
$342,167
Ridge Partners | The Recommended Farm Site
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APFA Demonstration Farm – Feasibility Study
APFA Powers and Risks
The APFA has the necessary constitutional capacity and powers to acquire
or establish a farm for industry demonstration purposes (see Figure 4).
Industry strategic risks have been discussed in Chapters 3 and 4 and
summarised in Figure 4.
The APFA’s organisational risks associated with the proposed acquisition
and operation of a demonstration prawn farm are:

Lack of new people to lead and support industry/APFA,

Reduced farmer support/membership and levy revenue,

Need for new organisational capacity creates APFA governance
problems,

?? more to come from APFA
Farm Location and Design
Location
The existing farm at Campwin Beach (Property Description 1 RP744613),
near Sarina Qld, is centrally located (Lat. -21.3850, Long. 149.3030) and
equally accessible for a majority of APFA members, industry participants
and stakeholders.
The property has access to all modern communication and logistics
services. An all-weather bitumen road runs past the property frontage. The
property is 14 klms by road from the regional centre of Sarina and the Bruce
Highway, and is an hour’s drive south of the regional airport at Mackay.
The property is close to commercial accommodation in Sarina, and less
than 5 minutes’ drive to the 3 star Sarina Beach Motel. The site is near
urban developments
but the vendor advises
that neither the local
community nor the
regional Council have
identified any urban
encroachment
concerns regarding
operation of the prawn
farm.
Plant and equipment on the site includes modest 2 bedroom
accommodation, a covered storage shed with concrete floor, a building
used for prawn processing (cooking, cooling and storage) and mobile plant
(a runabout vehicle and a fork lift).
The site is based on Cabbage Tree Creek tidal estuary in tropical
Queensland and is therefore exposed to risk from severe cyclones and
related weather events. However the site is largely protected from the sea
by headlands and does not suffer from storm surges or related tidal events.
While this is a risk faced by all other candidate farms, it is one that needs to
be addressed in the financing and operation of the proposed acquisition.
This site is better located for prawn farm demonstration than all other
candidate properties.
Design
The business is authorised under a current Qld Government aquaculture
license for up to 20ha for prawns and other species??. The existing farm has
9 growout ponds totaling 13ha and an additional 6ha of pond expansion
potential (total of 16ha of production ponds) within the current aquaculture
license.
At the current 13ha the scale of the farm is smaller than two of the other
candidate farms and will therefore require less capital to acquire. The forth
candidate farm has 8.4ha ponds active but configuration is not attractive.
The quality and layout of the current infrastructure (ponds, vehicle access
points, buildings, water intakes and outflows and pump systems,
settlement ponds, etc) and potential development options (pond
reconfiguration, operational buildings, research and training facilities, onsite accommodation, etc) are more attractive at this Campwin Beach site.
The current pond configuration and water intake/outflows do not present
any significant barriers to farm redesign to better suit the research needs of
a demonstration research facility.
Farm Ownership Options
Due Diligence
The property is currently owned by the DB & JH Symons Family Trust (ABN
95 623 891 034) on behalf of trustees, Mr D. and Mrs B. Symons. The
owners are in their 60’s and currently operate this farm and another smaller
3 pond prawn farm at Eimeo, a northern suburb of Mackay.
There are no outstanding or future legal or regulatory constraints on the
operation of the license. Check with EPA and DEEDI
Ridge Partners | The Recommended Farm Site
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APFA Demonstration Farm – Feasibility Study
Do external property valuation,

Enables optimum benefits and return of surplus funds (and
minimization of tax) to Australian based industry stakeholders,
consumers and communities through a not-for-profit structure,

Promotes commercially viable outcomes,

Precludes distribution of dividends to the ALFA, and ensures
reinvestment of financial surpluses exclusively into prawn farming
related research, development and extension outcomes,

Enables cost effective winding up of the business at the decision of
the farm board, and return of surplus assets to the APFA.
Get a copy of rates notice
Confirm site inspection completed on behalf of APFA prior to Heads of
Agreement negotiation
Accountants for the Campwin Beach farm entity are DGL Accountants,
CPAs in Mackay. Copies of financial statements for the last two years for
the Campwin Beach farm have been provided with the owners’ authority.
The farm has been operated as a single crop black tiger prawn farm for at
least 3 years. The APFA should seek independent advice on a farm
valuation to support the current balance sheet.
Acquisition Model
The APFA considered a range of candidate farm acquisition models:

Direct purchase by APFA or affiliate of one of 4 farm candidates
(Campwin Beach Farm, or sites A, B, D, E), or

Direct leasing by the APFA or affiliate of whole or part of a candidate
farm site, specifically part of candidate farm site B. This large site
has ~20 active ponds available at the farm north of Proserpine. This
underutilized site is the largest single-site licensed prawn farm in
Australia with substantial onsite capacity for accommodation,
hatchery operations, prawn processing and freezing.
The APFA has decided that leasing of part of Site B or any other farm
creates a loss of control of the engagement, knowledge creation and
transfer process and presents excessive risk. These barriers run counter to
the longer term strategic objectives of the APFA and the demonstration
farm concept it has developed and outlined. Outright purchase of a farm is
therefore the preferred option.
A wholly owned commercially operated farm with acceptable risks, offers
the most attractive option for the APFA to achieve its 3 main aims –
technology development and transfer, human capital and community
engagement and development, and a self-sustaining return on investment.
Business Model
The APFA requires a business approach be taken to the management and
operation of the demonstration farm. The most appropriate corporate and
business structure will therefore be one that:

Provides a cost effective incorporated legal entity framework,

Enables and mandates a governance processes that is commercial,
flexible, independent and skills based, with oversight by the APFA,
This study recommends APFA establish a wholly owned company limited
by guarantee, operating with charitable Not-for-Profit tax exempt status.
It is important that independent legal advice is sought on this
recommendation as soon as possible, as the vendor wishes to progress the
sale opportunity asap and the time taken to establish this entity may 6-12
months. Discussion with the vendor suggests that agreeable terms can be
reached to jointly operate the farm in the 2012-13 season until the purchase
transaction can be completed.
Exit Pathway
The dairy, cotton and cropping case studies considered in Chapter 5
illustrate the long term viability of demonstration farm entities – 21, 12, and
20 years, respectively. Each of the respective managers has advised that
their farm is more relevant today to the founding principles of industry
competitiveness and community engagement than it was when first
established. There is little logic in liquidating a vibrant investment that is
greatly contributing to industry returns and community outcomes.
However, the APFA may subsequently wish to sell, transfer or reduce its
interest in the farm. Possible reasons for this are many - liquidation of the
APFA, change in APFA direction, failure of the knowledge transfer model,
receipt of purchase offers, legal or regulatory proceedings, changes in state
or local government land use policies, etc. In this event the farm asset will
be available to offset any outstanding farm debt owing by the APFA.
The range of potential exit pathways available to the APFA is quite broad.
However all pathways need to ensure the APFA retains the right and
flexibility to undertake a full or partial exit transaction always at a time and
in a manner of its own choosing.
The best approach to achieve this outcome is to establish the
demonstration farm entity, related governance structures and assets
acquired or developed, as proposed, at arms-length from the APFA.
Ridge Partners | The Recommended Farm Site
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APFA Demonstration Farm – Feasibility Study
Governance
The recommended governance arrangements are as illustrated below.
Figure 9. Demonstration Farm – Company Organisation Chart
Demonstration Farm Company Board
Up to 5 volunteer (expenses only) directors appointed by APFA Members for 3 year terms.
Skills based - across prawn farming, key RD&E issues, finance/accounting, training and skills
development, and community relations.
Reports to the APFA Executive and Members.
Demonstration Farm Manager
manager and farm operations, and work with Program teams to deliver
specific outcomes in R&D, Training and Knowledge Transfer, and
Community and Stakeholder Engagement.
The governance arrangement must be directly linked to the FRDC, as
partial funding for the 3 RD&E Programs will continue to be sourced from a
statutory levy with funding matched by FRDC under the Commonwealth
PIERD Act.
Finance and Viability
Finance Options
Appointed by Board on incentivised market based salary package.
The APFA’s proposes to acquire (via a new entity) the preferred target farm
for approximately $3 million excluding transaction costs. There are 6
potential sources of finance:
Controls all financial expenditure and budgets.
Reports to the Board.
Admin/Accounts

APFA funds - as an industry association (20 yrs), the APFA has no
significant real assets to offer as collateral,

Member funds - the APFA has confirmed that members’ collective or
private funds are not a realistic funding source,

Vendor finance - this options has been raised with the vendor and is
in negotiation,

Partner funds - External private partners are interested in long term
(>5 yrs) co-investing in this project. However the APFA considers
this a project specific tactical opportunity, rather than a strategic
core asset co-investment. Public funds are no available to finance
this acquisition.

Research funds -industry members contribute significant annual
funding ($141, 574 in 2008-09) to RD&E projects via a compulsory
statutory R&D levy managed by the FRDC,

Bank Debt - commercial bank finance options have been assessed in
a feasibility model. This option will typically finance up to ~80% of
rural asset value ($2.4m), subject to the strength of net cash flows
from the asset.
Performed parttime by permanent APFA
staff under a fee for service agreement
Farming &
Marketing
Operations
Research &
Development
Program
A revenue and cost
centre managed
subject to annual
plans and budgets.
A cost centre.
2.5 parttime farm
employees + 3
parttime processing
employees
Controlled directly
by the Manager.
Training and
Knowledge
Transfer
Program
Community &
Stakeholder
Engagement
Program
A cost centre.
A revenue and cost
centre.
Portfolio of key RD&E
Projects, delivered by
an expert committee
of APFA, FRDC,
partners, researchers
and experts.
Courses and
initiatives delivered
jointly with the
APFA and advised
by an expert panel.
Initiatives that identify
and engage with
sponsors, community
stakeholders,
regulators, media and
third parties.
Program Chair
reports to the
Manager
Program Chair
reports to the
Manager
0.5 part time
employees
Reports to the
Manager
Fisheries R&D Corporation
RD&E Program Management Partner across all Programs
These arrangements are based on a business model housed in a separate
incorporated entity, wholly owned by the APFA, and lead by a dedicated
board that delegates operational day to day powers to a professional
manager. A small permanent (1-2 FTE’s) and casual staff will support the
Financial Viability
The feasibility base-case model (over 15 years) and related assumptions are
detailed in Appendix ??. Key acquisition and model assumptions are as
follows:
Ridge Partners | The Recommended Farm Site
Draft: Commercial in Confidence
19
APFA Demonstration Farm – Feasibility Study

$3,150,000 purchase price paid on acquisition, allowing for some
remedial capital expenditure and setup,

Annual expenditure of approx. $100,000 for new capital assets,

100% bank debt finance at commercial rates on principle + interest
(P+I) terms, repaid over a ten year term (i.e. by 2022)

Average debt interest rates (P+I) of 12% p.a. over the finance term,

Interest earned on bank balances has been assumed at nil,

Bank debt repaid over a 10 year term,

Cash generated (e.g. sponsorships) from or used in (e.g. to run
training courses) non-farming activities are not included.
Based on these key assumptions and many others agreed with experienced
prawn farming APFA practitioners, the model forecasts that:

The investment will generate a pretax Net Present Value (NPV) of
$1.5 million over 15 years at a 30% discount rate,

The net operating cash flow generated (pretax) from prawn sales
alone will be adequate to fund this bank finance facility.

The net operating cash flow (pretax) after payment of finance costs
is in the order of $900,000 per year. Securing NFP status for the new
entity will preserve this surplus.

Annual interest payment in the first year (2012-13) will be
approximately $354,000, falling to $311,000 in year 2.

After-tax (assuming 30% rate was applied) profit per kg of prawns
sold from the farm will average $3.50/kg, a figure that is equal to or
slightly better than the current APFA member average.
when prawn sale prices fall by more than 7.5% (approx.) from the
nominal 2012 prices.

Feed Prices - Changes in nominal feed prices have limited effect upon
investment NPV. Every 1% increase in feed prices reduces NPV by
approximately $50,000 over 15 yrs.

Pond Area - Increasing the active pond area has a large positive
impact on returns - in general terms, for every 1 ha added, the
investment NPV increases by approximately $600,000 over 15 yrs.
Taking ponds out of commercial production in order to undertake
R&D projects will decrease the investment return - the 15 year NPV
becomes negative when less than 11 ha are commercially operated.

Feed Conversion - Improvements (i.e. reductions) in the FCR have a
modest beneficial impact. Changing from 1.70 to 1.60 will add
$80,000 to the 15 year NPV for a farm with 13 ha of active ponds.
Financing the Purchase
Bank finance - this has been discussed above and is the recommended
option. The farm will be secured against the finance facility – need to clarify
how much a bank will lend against the assets and cash flow (discuss with
broker after discussion of model).
Vendor finance – this option offers potential supplementary funding in
addition to bank finance. It may be as simple as extended payment terms
over 3 years, for example. Initial discussions with the vendors indicate that
vendor finance may be available, as part of heads-of-agreement for joint
operation of the farm over at least the 2012-13 season. This joint operating
approach provides mutual benefits, including:

Assists the vendors overcome immediate health issues that limit
their physical input to farm operations. The APFA proposes to
immediately appoint an experienced farm manager to the project to
work with the vendor.

Retains the vendor’s considerable experience, skills and goodwill in
the business for at least 12 months,

Provides time for the APFA to incorporate and launch the new NFP
entity,

Immediately secures the sale transaction to the satisfaction of both
parties.
Scenario Sensitivity
Key scenario and sensitivity analyses were assessed using the model. (see
Appendix ??). In summary, these reveal that:


Interest Rates - Changes in P&I borrowing interest rates have a
modest effect upon investment NPV. Every 1% increase in interest
rates reduces NPV by approx. $50,000 over 15 yrs.
Sales Prices - Changes in prawn sale prices have a great effect upon
investment NPV. Every 1% decrease in prawn sale prices reduces
NPV by approximately $250,000 over 15 yrs. At a benchmark
borrowing interest rate of 12% p. a., the NPV becomes negative
These joint terms need to be formalised in the heads-of-agreement as soon
as possible.
Ridge Partners | The Recommended Farm Site
Draft: Commercial in Confidence
20
APFA Demonstration Farm – Feasibility Study
Levy funding - this also offers potential supplementary funding in addition
to bank finance.
The FRDC has advised that the unmatched industry component of the
compulsory annual RD&E levy would potentially be available to pay the
interest component of any debt finance secured for a demonstration farm
specifically for prawn farming RD&E purposes.
Based on the interest cover numbers discussed above (Yr 1 interest of
$354,000, compared to the levy contribution of ~$140,000), this industry
levy amount will be about 40% of the annual interest payment required in
the first year, and a higher percentage thereafter as interest expense falls.
In round terms, it will take 12 years (i.e. 2024) for accumulated member levy
contributions to exceed the total $1.8 million in required interest payments.
However the strong operating cash flow forecast by the model confirms it is
not necessary for levy contributions to be available to cover debt interest
payments.
As noted earlier commercial debt finance will potentially finance 80% of the
purchase value. It is recommended FRDC and APFA discuss with financiers
how the accumulated statutory levies can be quarantined for the first 4
years (say a total of $600,000) and used as a store of collateral to secure the
remaining 20% of debt finance. This would therefore enable a debt facility
for the full 100% of the purchase value. The free net cash flow from the
farm (around $400,000 per year) will be more than enough to replace
member levy contribution commitments to FRDC during that period, as
well as fund modest RD&E projects until the debt is reduced by Year 4.
Additional funds from sponsors and partners will further improve bottomline net cash flow.
Study Finding
This study finds that acquisition and professional management of the 1316ha target prawn farm (as proposed) is viable.
The venture will generate sufficient profits to at least better industry
averages, and cash flow to both repay initial purchase financing costs and
create a sustainable cash surplus for use in demonstration research, training
and engagement activities.
Ridge Partners | The Recommended Farm Site
Draft: Commercial in Confidence
21
APFA Demonstration Farm – Feasibility Study
Bibliography
ABARES 12.1. (2012). The Australian Seafood Industry: Workforce information and stakeholder responses. Canberra: Dept. of Agriculture, Fisheries and Forestry.
Aboriginal Fishing Strategy Working Group. (2003). Aboriginal Fishing Strategy - draft report. Report: WA Government.
ACPF. (Edition 5 - April 2012). Australian Council of Prawn Fisheries - Newsletter. The Prawn Star, 1.
AFGC. (Nov. 2011). 2020: Industry at a Crossroads. Canberra: Australian Food and Grocery Council.
APFA. (2011). Submission in Response to National Food Plan Issues PAper. Brisbane: APFA.
Conn, W. (2010). Aquaculture Skills Formation. Brisbane: Qld Department of Education and Training.
DAFF. (2002). The Principles and Strategies to underpin the development of Recreational Fishing Rights and Resource Allocation in Commonwealth Managed
Fisheries. Canberra: Department of Agriculture, Fisheries and Forestry.
DEEDI. (1995-2009). Report to Qld Aquaculture Farmers . Brisbane: Qld Government.
FAO. (2008). Global Study of Shrimp Fisheries. Rome: FAO.
FAO. (2010). FAO Yearbook 2008. FAO.
FAO. (2010). The State of World Fisheries and Aquaculture 2010. FAO.
FRDC. (2011). Response to the National Food Plan Issues Paper. Canberra: FRDC.
NACA. (2010). Success Stories in Asia Aquaculture. London: Network of Aquaculture Centres in Asia Pacific.
PIMC. (2009). Workforce, Training and Skills Issues in Agriculture . Canbrra: Australian Government - Primary Industries Ministerial Council.
Ridge Partners | Bibliography
Draft: Commercial in Confidence
22
APFA Demonstration Farm – Feasibility Study
Appendix 1. Terms of Reference
Background
The Australian Prawn Farmers’ Association represents the interests and
fosters the development of the Australian prawn farming industry. With a
farm gate turnover of more than $70 million the sector provides more than
1000 direct jobs and 1800 indirect jobs in coastal Queensland and northern
New South Wales. A relatively small producer on a global shrimp scale, the
industry leads the world in productivity with an average yield of more than
8,000 kg per hectare, while operating adjacent one of the world’s most
pristine marine environments. Supporting 35 member farms, the APFA
leads an industry whose primary competitive advantage rests on its ability to
innovate, deliver and adopt leading technologies and processes in a sensitive
near-shore environment. The ongoing capacity to boost productivity,
returns and sustainability are central to investors, new farmers and firms
wishing to do business in the Australian prawn farming sector.
Model Farm Concept and Aims
The APFA, supported by the Fisheries R&D Corporation, seeks to undertake
a business case prefeasibility study to establish and operate a model prawn
farm by and for the industry. Twenty years after its formation in Australia,
industry leaders believe ready access to a demonstration farm would enable
a positive step change in the industry’s:



capacity to cost effectively evaluate, extend, deliver and
benchmark the performance of a range of emerging technologies
and sustainable production processes, and commercialise bestcase outcomes,
capability to attract and train new farmers, enhance existing
industry networks and human capital, and speed adoption of best
practices and innovative processes,
scale and resources available to attract substantial investment and
partners in single-site R&D investments and initiatives that both
challenge and showcase industry’s stewardship of public resources.
Study Objectives
The APFA wishes to retain an independent consultant to review, analyse,
and document formal written report advice regarding the prefeasibility of a
preferred model prawn farm.
The consultant will implement a study to achieve the following objectives:
9. review relevant industry data, the APFA constitution and
articles, organisational risk and strategic issues impacting
industry over the next 5-10 years;
10. consult industry and APFA leaders, investment and input
partners, and R&D managers regarding the preferred model
concept, performance objectives and expectations, and
strategic risks and opportunities:
11. consider relevant model/demonstration farms in comparable
industries regarding their performance and the long term
quantitative and qualitative benefit streams accruing to host
industries;
12. consider potential farm design, scale and site location options
proposed by industry, operational risks and suitability to
achieve the 3 main aims – technologies, human capital, and
investment capital;
13. consider farm ownership and management, governance
options and performance reporting to owners;
14. consider farm acquisition, set up and liquidation pathways; and
due diligence requirements;
15. consider industry levy implications, and financing options over
an initial 10 year period; and sources and uses of surplus
earnings generated by the model farm venture;
16. work with industry to establish a 10 year financial model to test
the financial prefeasibility of the preferred model design and
related scenarios.
Deliverables
The study will deliver a written Final Report to APFA / FRDC within 8 weeks
of commissioning. The initial draft in MSWord will be a professional report
that addresses all objectives reviewed and considered, and draws summary
conclusions and recommendations regarding implementation of the prawn
farming model farm concept.
Ridge Partners | Appendix 1. Terms of Reference
Draft: Commercial in Confidence
23
APFA Demonstration Farm – Feasibility Study
Appendix 2. Extract from AustAsia Aquaculture 2011
Ridge Partners | Appendix 2. Extract from AustAsia Aquaculture 2011
Draft: Commercial in Confidence
24
APFA Demonstration Farm – Feasibility Study
Appendix 3. Australian Prawn Farm Data
Aerial photos referenced her by Photo No. are attached in a separate PDF file.
Proponent / Applicant
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
Aquatec Pty Ltd
Seafarm Pty Ltd
Cairns Fresh Seafood Pty Ltd
Mr D Eustace
Reefarm Pty Ltd
Tropical Mariculture Pty Ltd
WD & Y Aquaculture - Wah Day
Kiony Pty Ltd
The D'Arcy Group Pty Ltd
Seafarm Pty Ltd Hatchery
Mr R Mooney, Mrs M Mooney
Jungle Creek Aquaculture - Borgelt
Bluewater Barramundi
CHJ Investments Pty Ltd
King Reef Seafoods Pty. Ltd.
Seeter Lamason Ventures
Austar Aquaculture
Fakuba Pty Ltd
Melivan Pty Ltd
Fortune Pty Ltd / Enterprises
Chazlake Pty Ltd
R Plapp
Seafarm Pty Ltd
Truloff - Evelake Pty Ltd
Tycoon International Pty Ltd
Hinchinbrook Prawn Company Aust
Aquasea Enterprises Pty Ltd
Hobson Investments (NQ) Pty Ltd
Unknown Proponent
Saltwater Finfish NQ - Bolam
Pacific Ocean Fisheries Consult.
Rosefarm Hatchery Pty Ltd
Pacific Reef Fisheries (Aust) Pty Ltd
Pacific Aquaculture Investments Pty Ltd
Pacific Reef Fisheries (Aust) Pty Ltd
Pacific Reef Fisheries (Aust) Pty Ltd
GFB Fisheries Ltd
Seafarm Pty Ltd
Prosperity Inc.
Prawn King Australia Pty Ltd
Eimeo Aquaculture - Symons
Mr John Charles Galea
P&L Barr
Andev Holdings Pty Ltd
Location
Cooktown
Mossman
Yorkeys Knob
Machins Beach
Cairns
Cairns
Cairns
Gordonvale
Gordonvale
Flying Fish Pt
Kaban
Mourilyan
Mourilyan
Mourilyan
Cowley
Mourilyan
Mourilyan
Mourilyan
Kurramine Beach
Mission Beach
Mission Beach
Mission Beach
Cardwell
Cardwell
Cardwell
Ingham
Ingham
Toomulla
Toomulla
Saunders Beach
Townsville
Ayr
Ayr
Gumlu
Guthalungra
Guthalungra
Guthalungra
Bowen
Proserpine
Proserpine
Mackay
Mackay
Bakers Creek
McEwans Beach
Photo
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
35
36
37
38
39
40
41
42
43
Venture Status
inactive farm - license dormant
active farm - prawns
active farm - nonprawn species
inactive farm - license dormant
inactive hatchery - license dormant
inactive farm - license dormant
inactive farm - license dormant
inactive farm - license dormant
inactive farm - license dormant
active hatchery - prawns
inactive farm - license dormant
active hatchery - nonprawn species
inactive farm - license surrendered
inactive farm - for sale
active farm - nonprawn species
active farm - prawns
active farm - nonprawn species
active farm - nonprawn species - for sale
active farm - prawns
active farm - prawns
active farm - nonprawn species
inactive farm - license expired
active farm - prawns
active farm - prawns
inactive farm - license dormant
active farm - prawns
active farm - nonprawn species
active farm - nonprawn species
inactive farm - license expired
active farm - nonprawn species
active farm - nonprawn species
active hatchery - prawns
active farm - prawns
awaiting further approval - farm
awaiting further approval - farm
awaiting further approval - farm
active farm - nonprawn species
inactive farm - license cancelled
active farm - prawns
inactive farm - license not developed
active farm - prawns
active farm - nonprawn species
inactive farm - license surrendered
inactive farm - license dormant
Total
Approved
Ha
23.00
30.00
19.70
0.10
0.45
0.40
2.70
22.80
5.50
5.00
4.80
4.80
1.00
4.50
10.00
60.00
4.10
15.00
10.00
39.20
1.00
22.00
127.00
78.00
20.00
32.00
15.00
18.00
20.00
4.00
15.10
0.12
98.00
77.00
??
8.00
46.70
65.00
192.50
16.50
5.00
2.12
2.00
8.00
Total
Farm Ha
23.00
30.00
19.70
0.10
0.00
0.40
2.70
22.80
5.50
0.00
4.80
0.00
1.00
4.50
10.00
60.00
4.10
15.00
10.00
39.20
1.00
22.00
127.00
78.00
20.00
32.00
15.00
18.00
20.00
4.00
15.10
0.00
98.00
77.00
??
8.00
46.70
65.00
192.50
16.50
5.00
2.12
2.00
8.00
Ridge Partners | Appendix 3. Australian Prawn Farm Data
Active for
Prawns Ha
0.00
30.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
60.00
0.00
0.00
10.00
39.20
0.00
0.00
127.00
78.00
0.00
32.00
0.00
0.00
0.00
0.00
0.00
0.00
98.00
0.00
0.00
0.00
0.00
0.00
192.50
0.00
5.00
0.00
0.00
0.00
License #
License
Status
2005BC0276
2005BC0314
2005BC0279
2005CA0546
2005BC0256
2005CA0320
2005BC0066
2005CA0290
2005CA0318
2005BC0315
2005CA0509
2005CA0064
2005CA0543
2005BC0570
2005CA0295
DEEDI info
2005BC0592
2005CA0284
2005BC0293
2005BC0285
2005BC0287
2005BC0301
2005BC0316
2005BC0274
2005BC0321
01NOCA1713
2005BC0275
2005TO0312
not available
2005CA0584
2005BC0255
2005CA0258
2005BC0307
2005CA0305
2007CA0080
2005CA0306
2005BC0253
98NOCA0788
2005BC0288
2005BC0308
2005BC0296
2005CA0591
96BRBC0809
2005BC0273
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Surrendered
Active
Active
Active
Active
Active
Active
Active
Active
Expired
Active
Active
Active
Active
Active
Active
Expired
Active
Active
Active
Active
Active
Active
Active
Active
Cancelled
Active
Active
Active
Active
Surrendered
Active
Draft: Commercial in Confidence
25
APFA Demonstration Farm – Feasibility Study
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
86
87
88
89
90
91
92
93
94
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NT
NT
NT
NT
NT
NT
NT
WA
WA
Layerwell Pty Ltd
Janglade Pty Ltd
D & J Symons Family Trust
Goldiland Pty Ltd
Monagold Pty, D&C Lin
Australian Prawn Farms Pty Ltd
H & L Mcbow
Mr Vijay Ram
Sunrise Seafood Pty Ltd
Coral Coast Mariculture Pty Ltd
Portunus Pty Ltd
Qld Sea Scallops Pty Ltd
RockAqua Pty Ltd
Bundaberg Prawn Farm Pty Ltd
Qld Gov't - DERM (lease to Cairncrosse)
W&D Hellmuth
Surfie Pty Ltd
Mr Maxwell Cluff
Bullock Creek Prawn Farm Pty Ltd
G&J Mcpherson
A&I Janke
Luxe Enterprises (Aust) Pty Ltd
Clem Jones Qld Pty/Truloff Pty
Dai-Loi Enterprises Pty Ltd
Rossmann Pty Ltd
OceanXplorer Pty
Truloff Pty Ltd
P Grant
G.I. Rural Pty Ltd
Rockaqua Pty Ltd, Rocky Point Hatchery
Gold Coast Marine Aquaculture Pty Ltd
Tomei Aqua Pty Ltd (GCMA Lease)
Genesis Pty Ltd - Rocky Pt Prawn Farm
AquaGro Pty Ltd
NCQ Seafoods Pty (Ballina Fishing Park)
Tru Blu Prawn Farm Pty Ltd
Glen Searl
Palmers Is. Mullaway
Fortune Enterprise Yamba
Fortune Enterprise Yamba
Ausfarm Pty
Unknown Proponent
Channel Island Marine Farm
Humpty Doo Barramundi Farm
Aussie Prawns Pty Ltd - Paspaley Family
Wild River Seafood Pty Ltd
Ardatek Pty Ltd
Tamariki Holdings
Suntay Aquaculture Pty
Kimberly Prawn Co
Cape Seafarms Pty
Balbera
Sarina
Campwin Beach
Armstrong Beach
Ilbilbie
Ilbilbie
Rockhampton
Gladstone
Rosedale
Bundaberg
Burnett Heads
Burnett Heads
Elliott Heads
Calavos
Woodgate
Bauple
Theebine
Murgon
Donnybrook
Donnybrook
Donnybrook
Ningi
Thornlands
Carbrook
Alberton
Redland Bay
Alberton
Alberton
Alberton
Woongoolba
Woongoolba
Woongoolba
Woongoolba
Yatala
Ballina
Yamba
Yamba
Yamba
Yamba
Yamba
Yamba
Yamba
Channel Is.
Humpty Doo
Wickham
Weddell
Weddell
Weddell
Pt Ceylon, Bynoe Hbr
Derby
Exmouth
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
82
83
84
85
86
87
88
89
90
91
92
93
active farm - nonprawn species
inactive hatchery - license dormant
active farm - prawns
inactive farm - license dormant
active farm - prawns
active farm - prawns
inactive farm - license dormant
inactive farm - license expired
active farm - prawns
active farm - prawns, finfish and scallops
active farm - nonprawn species
active hatchery - nonprawn species
awaiting further approval - farm
active farm - prawns
inactive farm - license expired
active farm - nonprawn species
active farm - nonprawn species
active hatchery - nonprawn species
inactive farm - license dormant
inactive farm - license dormant
inactive farm - license not developed
inactive farm - license dormant
inactive farm - license cancelled
inactive farm - license dormant
active farm - prawns
inactive farm - license dormant
active farm - prawns
inactive farm - license dormant
active farm - prawns
active hatchery - prawns
active farm - prawns
active farm - prawns
active farm - prawns
inactive farm - license cancelled
active farm - nonprawn species
active farm - prawns
active farm - nonprawn species
active farm - nonprawn species
active farm - prawns
active hatchery - prawns
active farm - prawns
inactive farm - license cancelled
active farm - nonprawn species
active farm - nonprawn species
inactive farm - license dormant
active farm - nonprawn species
active farm - nonprawn species
inactive farm - license dormant
inactive farm - license not developed
inactive farm - license not developed
inactive farm - license not developed
8.00
0.09
20.00
50.00
10.00
114.27
4.00
2.00
65.00
25.00
20.00
2.00
4.50
20.00
12.00
3.00
4.90
25.00
5.00
2.75
0.50
10.00
7.00
7.00
15.00
1.50
24.00
0.20
30.00
1.00
4.85
23.00
28.11
0.01
6.00
22.00
10.00
10.00
46.50
1.00
??
??
??
20.00
??
32.00
12.00
3.00
65.00
20.00
20.00
8.00
0.00
20.00
50.00
10.00
114.27
4.00
2.00
65.00
25.00
20.00
0.00
4.50
20.00
12.00
3.00
4.90
0.00
5.00
2.75
0.50
10.00
7.00
7.00
15.00
1.50
24.00
0.00
30.00
0.00
4.85
23.00
28.11
0.01
6.00
22.00
10.00
10.00
46.50
0.00
??
??
??
20.00
??
32.00
12.00
3.00
50.00
20.00
20.00
Ridge Partners | Appendix 3. Australian Prawn Farm Data
0.00
0.00
20.00
0.00
10.00
114.27
0.00
0.00
65.00
25.00
0.00
0.00
0.00
20.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
15.00
0.00
24.00
0.00
30.00
0.00
4.85
23.00
28.11
0.00
0.00
10.00
0.00
0.00
46.50
0.00
20.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2005BC0291
2005BC0289
2005BC0281
2005CA0549
2005BC0280
2005BC0277
2005BC0298
2005BC0302
2005BC0317
2005BC0309
2005BU0162
2010BI0113
2005DB0326
2005BC0272
2005BC0304
2005BC0303
2005BC0536
2005BC0328
2005BC0278
2005BC0297
2005BC0294
2005BC0292
96SEBD0337
2005BC0283
2005BC0311
2007BI0023
2005BC0544
2005DB0300
2005BC0286
2005BC0310
2005BC0590
2005BC0319
2005BC0299
2005DB0050
??
AP4083
??
??
AP5305
AP5304
??
??
??
??
??
??
??
??
??
??
??
Active
Active
Active
Active
Active
Active
Active
Expired
Active
Active
Active
Active
Active
Active
Expired
Active
Active
Active
Active
Active
Active
Active
Cancelled
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Cancelled
Active
Active
Active
Active
Active
Active
Active
Cancelled??
??
??
??
??
??
Pending
??
??
Draft: Commercial in Confidence
26
APFA Demonstration Farm – Feasibility Study
95
96
97
98
99
100
SA
QLD
QLD
QLD
QLD
QLD
Unknown Proponent
Qld Prawn Nurseries
Wyegold Pty Ltd
Cumminscorp Ltd - in liquidation
Cumminscorp Ltd - in liquidation
M Rogers
Port Broughton
Wynnum
Macalister
Molindinar
Molindinar
Stanthorpe
94
n/a
n/a
n/a
n/a
n/a
inactive farm - license not developed
inactive farm - license expired
inactive farm - license surrendered
inactive farm - license surrendered
inactive farm - license surrendered
inactive hatchery - nonprawn species
10.00
0.02
5.00
0.03
0.03
5.00
10.00
0.02
5.00
0.03
0.03
5.00
Ridge Partners | Appendix 3. Australian Prawn Farm Data
0.00
0.00
0.00
0.00
0.00
0.00
??
01BRBC2006
2005BC0333
03SODB2719
2005DB0551
2008BI0095
??
Expired
Surrendered
Surrendered
Surrendered
Active
Draft: Commercial in Confidence