Aquaculture set to make waves as industry value increases

Ms McCarthy said the market for Irish oysters in Hong Kong and China was actively targeted in a collective manner by Irish producers, with the assistance of BIM. Irish oysters have received a warm welcome, commanding a premium price in the Chinese and Hong Kong markets and are now the highest priced in this region.

Last year, oyster farming employed 775 people in coastal areas. Over 90% of Irish oysters are exported, the majority going to France. However, 2015 saw 10% of Irish oyster exports going to Hong Kong and China.

Last week’s shellfish conference followed a recent prediction by agri-food economist professor Alan Renwick that a further increase of €6m and an extra 77 jobs can be produced with every 10% increase in production.

The message from the conference itself, which discussed a wide range of issues affecting the industry, was that the marine sector needs government action to create jobs and exports.

A poll carried out last year found a significant increase in local residents being happy to see aquaculture in their own locality. The figure was up from 27% (2008) to 49% (2015).

The main reasons given for the increased support were employment (59%); ensuring fish stocks (27%); providing a healthy food (22%); creating wealth; and helping support local communities (18%).

Also, the Wild Atlantic Way initiative has seen a number of shellfish farmers set up retail outlets for their products on the route. The initiative has also encouraged a resurgence in foodfestivals like the Connemara Mussel Festival and the Carrigaholt Oyster Festival as well as others in Achill, Carlingford and Galway.

Prof Renwick’s report for the IFA recommended a more simplified regulatory framework, the introduction of contingency plans, a strengthening of the market identity for Irish oysters and a focus on adding value in Ireland. It also called for more effort in improving technical issues and developing greater collaboration between producers on common issues.

The study found that in growth terms producers individually and the industry collectively were facing the choice between focusing on higher value output or simply increasing production more along ‘bulk commodity’ lines.

Professor Renwick said the small scale and industry fragmentation presented a range of challenges.

“This is particularly the case in areas which incur relatively high fixed costs for producers such as investment in purification, water-quality assurance requirements, logistics and marketing efforts,” he said.

The report said that the issue of possible advantages of increased collaboration and co-operation was central. It said there are significant opportunities for the oyster sector and that these can bring about real economic benefits to Ireland nationally and at a local level.

However, it said a number of constraints need to be overcome to ensure the industry can thrive and continue to develop.

“Of these the dysfunctional licensing system was perceived by all as not only the greatest challenge facing the sector at the current time, but also a major barrier to growth.”

The report claimed the licensing problem has direct and indirect implications for oyster producers including difficulty for businesses to raise capital from banks or outside investors.

Meanwhile, the Irish Shellfish Association, a member of IFA, urged the Agriculture, Food and Marine Minister, Michael Creed at the Athlone conference to ensure swift and measurable action to review procedures, reduce red tape and encourage development of the indigenous sector.

The shellfish association’s chairman Jerry Gallagher said the industry needs to invest in sustainable growth, based on the clear commitments to better co-ordination between departments, a more responsive licensing system and measures to support producers in meeting environmental challenges.

He said the industry needs to see specific actions to back up the very broad aspirations on the seafood sector contained in the Programme for Government.

“Coastal communities have waited too long for affirmative action by the State to encourage investment in aquaculture and create long lasting jobs in remote areas,” he said.

Mr Gallagher said employment is steady and growing in the sector and interest is strong from a new generation of aquaculturists and entrepreneurs.

These people want to get involved in farming shellfish as a career, combining a natural production cycle with international marketing in peripheral coastal areas.

Mr Gallagher said the sector can only maintain and increase competitive advantage in Europe by various actions such as reducing the costs of red tape and improving infrastructure including broadband in coastal regions.

EU funds must be wisely used, he said, to innovate and protect producers from algal blooms originating in the deep Atlantic and improving presence and networking in new markets like Asia though agencies such as Bord Bia and BIM.

IFA president Joe Healy said his association’s remit extends to all Irish food producers. Aquaculture is not the ‘new kid on the block’ anymore. It has been producing food and jobs in counties like Galway, Donegal, Cork and others for 40 years and is the definition of a success story, he said.