Sponsored content

Austrade

Australia’s premium rock lobsters find new markets, despite trade and pandemic disruption

Australia’s rock lobster exports brought in $1.6 billion dollars annually, until COVID-19 and a trade spat slowed imports to China. Now fishing families are working to find new outlets.

Western rock lobster

A western rock lobster at GFC Credit: SBS / Rachel Cary

Matt Rutter is walking along rows of tubs filled with swirling seawater and brimming with Western Rock Lobsters, in a new holding facility close to Perth airport.

“These Australian lobsters are considered the pinnacle of lobsters worldwide,” Mr Rutter, the CEO of Geraldton Fishermen’s Co-operative (GFC), says.

“They are highly sought after worldwide for their colour, for the firmness of the flesh as well as taste. And as they don’t have claws, there’s a much higher meat component compared with the US lobster.”

GFC represents more than 300 fishing families, across 1,000 kilometres of coastline in Western Australia, South Australia and Victoria.
Matt Rutter standing at the lobster tanks
Matt Rutter at Geraldton Fishermens Co-operative in Perth Credit: SBS / Rachel Cary
Short flight times to Asia had led to rising demand for GFC’s live lobser exports – until recent events led to a downturn.

“The last couple of years have been extremely challenging for us,” Mr Rutter says.

“Obviously during COVID, we were one of the first industries to be affected when the hospitality sector closed its doors. And more recently, we've also had issues with trade disputes in our region.”

He is referring to China’s trade bans on Australian rock lobsters, which has severely cut the volume of exports.
lobsters.png
Until recently most Australian rock lobsters were exported to China Credit: SBS / Rachel Cary
“Before COVID roughly 95 per cent of our product was exported to China," he says.

“Since the start of the pandemic export revenues for the industry have dropped by 50 to 60 per cent which means a lot less money flowing into the region and into fishing family hands,” Mr Rutter says.

The average price of rock lobster has also fallen by one quarter since 2017, from a high of $81.67 per kilogram to $60.94 per kilogram in 2021.
The co-operative handles 70 per cent of Australia’s Western Rock Lobster exports, and processes around 10-million lobsters annually through its Geraldton, Perth and Fremantle facilities.

It was formed in 1950 by a group of fishermen who wanted to take control of their own supply chain.

“We're now over 70 years old and proudly, still fisherman-owned,” Mr Rutter says.

“And as a co-operative, not a company, we operate solely for the benefit of our fishers.”
GFC remains fishermen owned
GFC remains family owned Credit: SBS / Rachel Cary
Their catch is marketed under the Brolos brand, named for the Abrolhos Islands off Geraldton, in the north of their fishing regions.

GFC has also achieved Marine Stewardship Council certification, for its sustainable practises.

“The Western Rock Lobster industry is quota managed, which means that the annual catch has a fixed volume and is governed very tightly by the state government of Western Australia,” Mr Rutter says.

Like many exporters, Mr Rutter is working closely with Austrade, the Australian Trade and Investment Commission, to find a way forward.
Austrade's David Jamieson
Austrade's David Jamieson Credit: SBS / Scott Cardwell
“Thailand is where the federal government's been providing a lot of assistance for us,” Mr Rutter says.

David Jamieson, Austrade’s senior global engagement manager, says Thailand is one of the lobster industry’s main growth markets

“There is growing demand from the hospitality and tourist sectors driven by the large number of hotels and restaurants,” he says.

Thailand is the second largest economy in South East Asia.
Exports of Australian rock lobster to Thailand have increased from $42,000 in 2020 to $9.4 million in 2021.

Australia and Thailand recently finalised a new health certificate to allow live Australian western rock lobsters to be imported for human consumption.

The new certificate will allow Australia to export Western Rock Lobsters to Thailand for the first time.

Demand for premium food in Thailand is expected to grow as global travel resumes and the hospitality sector recovers from COVID-19 related restrictions.

And he thanks Austrade for assisting GFC to find new outlets there.

“Having the Austrade team on the ground, helping us with research, and talking to the customers to bridge a gap during the pandemic was really important,” Mr Rutter adds.
David Jamieson at his laptop
David Jamieson is optimistic about 2022 Credit: SBS / Scott Cardwell
Both Austrade and GFC are optimistic about 2022.

“It is looking a lot more positive for us. We are now exporting a more diversified number of products, into a greater number of countries," Mr Rutter says.

“I would say that we are future proofed. So no matter what the world throws at us, we can ebb and flow with it.

Austrade’s David Jamieson agrees.

“If there's a silver lining from these disruptions and from the pandemic, it may be this: we are reaching more consumers internationally with this seafood de delicacy

“And hopefully that will sort of stand us in, in better stead for the long term.”

Sponsored content

Austrade

The Australian Trade and Investment Commission (Austrade) promotes Australian trade, investment, tourism and education to the world. Our global network turns local market connections and insights into valuable export and investment support. Find out more at https://www.austrade.gov.au


Share
Follow Small Business Secrets
Sharing business secrets of inspiring entrepreneurs & tips on starting up in Australia's diverse small business sector. Read more about Small Business Secrets
Have a story or comment? Contact Us

Sharing business secrets of inspiring entrepreneurs & tips on starting up in Australia's diverse small business sector.
Watch nowOn Demand
Follow Small Business Secrets
5 min read
Published 28 March 2022 11:48am
Updated 29 March 2022 3:22pm
By Small Business Secrets, Austrade
Source: SBS

Share this with family and friends