Read this article on the Adelaide Now website today. Thought...

Read this article on the Adelaide Now website today. Thought people might like to read as it has some relevance.

http://www.adelaidenow.com.au/business/sa-tuna-boom-to-lure-big-investors/story-fni6uma6-1226799534118


THE state's tuna industry says a new export boom has begun as sales to China and South Korea soar, boosting flagging prices and attracting interest from Chinese investors.

Tuna sales to those countries have already grown from 10 tonnes in 2012 to 156 tonnes last year.

A big rise in tuna sales to the two Asian nations is expected to result in up to 500 tonnes being shipped there from Port Lincoln's tuna farms this year, before rising to 1000 tonnes in 2015.

Exports fell to just $127 million last year, after previously reaching a peak of close to $300 million.

Port Lincoln tuna baron Hagen Stehr said yesterday that the rising sale of tuna to China and South Korea would inevitably lead to a buy-up of Port Lincoln tuna companies by Chinese seafood operators to help secure their future seafood supplies.

"They have to, because they are eating a lot more tuna in China, but it is getting harder and harder to find supplies around the world,'' he said.

"Quite a few people are closely scrutinising the Port Lincoln tuna farms as they consider buying into the industry."

Chinese equity in the tuna farms is considered the best way to increase sales of the valuable seafood to China.

Mr Stehr said he wouldn't sell his stake because he was fortunate to have a son and two grandsons involved in the industry.

But he expected several companies would sell out for a variety of reasons including the draconian regulations - imposed by the Australian Fisheries Management Authority in Canberra - which he said were harming the industry.

The fragility of some tuna businesses, changing business needs and the regulations imposed by Canberra bureaucrats are expected to hasten the sell-off to foreign buyers.

It follows the sale in December of 50 per cent of Australia's largest fishing company, Austral Fisheries by the Kailis family to Japanese company Maruha Nichiro Holdings.

Chinese seafood investors have also bought a 25 per cent stake in Australia's largest seafood company, Tasmanian salmon producer the Tassal Group.

While Australian investors are reluctant to invest in rural resource industries, especially fisheries, the Chinese Government is providing large investment funds for its industries to buy seafood assets in other countries.

Mr Stehr said he had just visited China and would return soon because of the high level of interest in the South Australian seafood sector.

He said there were 3500 hotels in Shanghai and all seemed to have a Japanese restaurant selling sashimi.

"Consumption of tuna will increase rapidly in China and I know of Japanese companies pushing increasingly into China to sell tuna,'' he said.

"Whether it is wheat, seafood or wine, China will take an increasingly dominant position and now is the time to get ourselves organised.

"It is inevitable that more people will come to Australia to secure their food and one is China with its 1.3 billion people.''

Mr Stehr said Australia desperately needed to improve its strategy for the agribusiness sector and food industry.

"New Zealand is a small country with only four million people, but it is far ahead of Australia in marketing to China and Japan and they are a lot more switched on in selling their produce," he said.

A flood of foreign investment in the seafood sector is expected to be bolstered by the falling value of the Australian dollar making assets cheaper to overseas buyers.

Seafood's place as the favourite food in most Asian countries has also increased expectations that they will want to control the supply chain.