Seafarm’s Project Sea Dragon is more than a shrimp farm. It is the building of an industry: broodstock facilities, hatcheries, grow-out ponds, processing, logistics and sales channels all established across 10,000 hectares of Australia’s remote northern coast.
But the ambitious project, the makings of which began in 2012, is starting to come together, with the first stocking now set for the end of 2021. During this first stage – with broodstock, hatchery and the first grow-out farms established – Project Sea Dragon will be producing 15,000 metric tons a year of premium-quality black tiger shrimp, with plans in place for an eventual churn of an incredible 150,000 metric tons per year, almost a quarter of the current annual production of China, the world’s largest vannamei producer. But of course, this is not vannamei, and Project Sea Dragon Managing Director Chris Mitchell is keen to differentiate. “This is a premium product – I liken it to chicken and turkey. It’s prawns, but with superior taste and presentation and greater value,” he told IntraFish. “It is where Australia has always been successful – whether it be wheat or dairy or horticulture – Australia has always remained successful because of its higher quality product.”</p>
The target markets for the product are Japan, China, Taiwan, Korea and Europe, and market access is key in the company’s current partnership discussions. It’s recent hook up with Nissui gives it a two track advantage – first in gaining access to the lucrative Japanese and other markets as well as brand development and other expertise, but also in being able to work with New Zealand seafood giant Sealord, in which Nissui holds a 50 percent stake, and gaining access to their sales and marketing channels and expertise. Talks are also ongoing with several other potential investors. “We are particularly interested in equity partners already involved in the industry,” said Mitchell.
Slow and steady wins the race Though substantial, investment is just one strand of this huge undertaking and one of the major challenges faced by Project Sea Dragon has been the pace of progression, particularly concerning licencing and regulatory and environmental approvals. “Everything takes longer than you imagine,” said Mitchell of a process that he has been involved with since 2015, but has now been in the works for seven years. “But this is quite unlike any other process. We are creating an entire supply chain.” And this, says Mitchell, is a unique part of the proposition, with a fully integrated upstream and downstream process, food safety and traceability is beyond what most existing shrimp producing operations can even dream of. Another attractive part of the proposition is the employment opportunities a project like this presents to a currently fairly remote part of Australia. “We have had wonderful support from local communities, including indigenous communities,” said Mitchell.
While it is hard to put a figure on the total number of jobs the overall project will create once fully operational, the first 15,000-metric-ton stage will need around 280 workers, calculates Mitchell. This is one way in which Seafarms, the founder and owner of Project Sea Dragon and East Coast banana prawn farmer, comes into play in its ability to help develop a labor force for the new farms. It has also obviously been the main investor, with its own finances taking a hit from the huge investments needed to take Project Sea Dragon forward. “But the market understands that Project Sea Dragon needs cash,” said Mitchell. “[The Seafarms capital] is all part of the strategic plan.” The eventual integration of Seafarms and Project Sea Dragon is also part of the long-term strategic plan.
There is limited opportunity for expansion on Australia's bustling east coast but Seafarm's current facilities will serve the company well as a potential research and development base as well as a continuing producer of banana prawns. "Project Sea Dragon will significantly reduce the cost of production," said Mitchell. Putting spade to earth With all licencing and approvals in place for construction, the company's founder stock and quarantine center in Exmouth, Western Australia is already up and running. This facility is where wild-caught shrimp is held, tested and bred to produce disease free stock for the production system.
To date, 14 families of specific pathogen free (SPF) shrimp have been produced at the center, Mitchell told IntraFish, giving fodder for the building of the company's core breeding center and broodstock maturation facility in Darwin and the neighboring hatchery at Gunn Point located just over an hour’s drive from Darwin.
From there will come the first of the company's grow-out ponds at Legune Station which will be processed at nearby Kununurra, where an accommodation center and factory is in the works as well as coldstorage and dispatch facilities to the nearby port. Shrimp a good choice in a world of climate change Embarking on a project of this size is a serious undertaking and means a substantial investment in the concept of a long-term sustainable aquaculture industry. And in this sense, Mitchell's role at the forefront of the project is no coincidence.
Coming from a background in natural resource management -- he was CEO of CO2 Australia, and before that held directorships and key roles at the Center for Australian Weather and Climate Research and CSIRO -- environmental sustainability is his core knowledge base. He understands the inherent climatic risks to the operations he is helping to establish, including potential rising sea levels and heavy rains, exemplified in the recent floods experienced by the region.
But he is confident that in terms of essential future food production, shrimp farming is a strong choice of investment. "In our view, prawn aquaculture is probably one of the best adaptive industries to deal with climate change," he said.
