Key points
· South Australian Mussels booming in China and SEA
· Part of the National Aquaculture Strategy to achieve double the value of our aquaculture industry to $2 billion a year by 2027
· Partnership with Thomas Cappo proves a success in SEA and China
· New production facility almost doubling production
· New jobs for the region
· Highlighting the unique provenance of SA seafood
· Opportunities in other markets – US and Europe
With the development of a new production facility and key partnerships, South Australia-based Eyre Peninsula Seafoods is embarking on a ground-breaking initiative to significantly increase the export of South Australian mussels throughout South East Asia and China.
World-renowned for their exquisitely soft texture and sweet flavour, South Australia's blue mussel farmed by Eyre Peninsula Seafoods, benefit from the unique growing conditions found in the region.
Eyre Peninsula Seafoods (EPS) was created in 2016 and is represented by three premium mussel brands - Kinkawooka Shellfish, Boston Bay Mussels and Spencer Gulf Mussels. Over the last three years the company has experienced significant growth and the push into SEA and China, as part of the government's National Aquaculture Strategy, will drive further success.
"The growth of the EPS business could see a further 20 jobs in regional South Australia, along with an increase in the demand for local resources, including packaging, freight, and fuel," said Andrew Puglisi, Executive Director, Eyre Peninsula Seafoods.
"As the South Australian Mussel brand develops this will also create a growing awareness for the region and will have an influence on assisting to grow the international recognition for the region as a seafood capital.
"The aspiration, of course, is to create the awareness and recognition of South Australia as a premium mussel appellation, which can be used across all markets."
The new multi-million dollar production facility in Port Lincoln will allow the company to increase production of the South Australian blue mussels from 2000T per annum to 3500T, providing the volume required to push into the South East Asian region, and potentially the US and Europe too.
The government's National Aquaculture Strategy sets out to achieve the goal to double the current value of our aquaculture industry to $2 billion a year by 2027.
The National Aquaculture Strategy details the actions government and industry need to take to meet this target through eight priority areas - Regulatory framework, Research, development and extension, Market access, Biosecurity, Public perception, Environmental performance, Investment, and raining and education.
"The combined resources of Eyre Peninsula Seafoods not only makes it the largest mussel farming operation in Australia, but has provided the business scale and ability to create a best-in-class operation, not only in the on-water marine operations and in the land based processing but in sales and marketing," said Puglisi.
A crucial partner supporting the push into China is Thomas Cappo Seafoods. Based on the huge success of their animal protein division, primarily premium beef products turning more than $2.6 billion in revenue, Thomas Cappo is a leader in Australian food distribution into the valuable market hungry for premium Australian foods.
Partnering with Thomas Cappo allows Eyre Peninsula Seafoods to use the networks and relationships built up over many years, especially in China, where relationship marketing is the primary demand for market entry.
Damian Cappo, principal of Thomas Cappo Seafoods is a third generation fishmonger from Adelaide, with a deep and long history in trading seafood.
Cappo is excited about the opportunities in the region for one of Australia's premium seafood products with a provenance that is second to none.
"China, and in fact that whole region, is not only important in regards to volume of mussels they consume naturally in their food culture, but it's a great platform into other markets too off the back of any success you might experience," said Cappo.
"But anything into China is difficult because you're competing globally, but it's about getting on the ground and understanding the product, the requirements and matching with the correct customer channels and constantly massaging and educating so people understand the product and it's value," said Damian Cappo.
"The message of the provenance and quality of South Australian mussels is a huge selling point of difference," he said.
"On top of that, it creates an opportunity to move into Europe and the US who have their own blue mussel industries that are not in season while the South Australian Mussel is. This could allow year round supply of blue mussels to those markets," he says.
In an industry that is so fragile and so thin on margin, mergers like this one are crucial for a region's ability to meet growing international demand, meet the need to build and invest in technical innovations to improve efficiencies, as well as to increase the size of the team.
Eyre Peninsula Seafoods is also working closely with Fishtales Seafood Strategy to help market South Australian Mussels in the China and South East Asian markets. Over the past decade, Fishtales have been instrumental in the development of the domestic market for the Kinkawooka brand have proven success in building international markets for Australian seafood suppliers.
"Many of the learnings from the domestic Australian market can be transferred into the Asian markets," said John Susman, owner Fishtales.
"However, in Asian markets EPS competes with mussels from around the world. With a booming International Hotel and Western Restaurant sector, many of the chefs come from Western markets, with a majority from Europe.
"Thus, the approach needed is to provide chefs with confidence about the quality and consistency of supply from a region they may not be aware of, requires an approach not needed in domestic Australian marketing. In regards to Retail, the provenance of the Mussels is a major platform from which the mussels are sold.
"The cold unpolluted environment resonates with Asian consumers, possibly even more than with the European chefs.
Eyre Peninsula Seafood's mussel farms are fed by the cold, clean, nutrient-rich waters of the Great Southern Ocean, the dry, arid mainland and lack of any rivers flowing into Boston Bay, result in a truly pristine oceanic environment which is home to some of the finest shellfish and seafood in the world.
The level of recognition for the provenance of the farming region and the respect for other foods from Australia/South Australia being as high as it is provides a strong market opportunity.
Several new husbandry techniques employed by Eyre Peninsula Seafoods this year have resulted in the mussels gaining especially high glycogen levels; this is the sweet body fat that is inherent in giving South Australian mussels their unique flavour and texture profile.
"With the Kinkawooka brand now in both Woolworths and Coles; and with a lion share of the domestic Foodservice business, this market expansion is a logical progression for EPS," adds Puglisi.
The push into Asia will allow EPS to keep expanding the business, creating more jobs and opportunities in the emerging aquaculture sector. This is an exciting development for an exciting and forward looking business," said Puglisi.
