Red tape stalling growth, say NZ aquaculture leaders

Senior figures in New Zealand’s aquaculture industry are warning that red tape and lack of access to key areas of the coastline are seriously hindering growth.

Concerns over bureaucracy and other issues were expressed at the recent Aquaculture New Zealand conference in Nelson, at which the view was expressed that it is becoming increasingly difficult to get access to the sea.

NZ King Salmon Chief Executive Carl Carrington said that while opportunities to expand the aquaculture sector were huge, only 0.01% of the country’s large marine economic estate was currently being farmed.

According to Radio New Zealand (RNZ) he maintained: “As a nation, we have made it incredibly difficult to gain access to farm the sea.”

He said the company’s Blue Endeavour project to farm salmon in the Cook Strait was the poster child for this, having taken nine years and NZ $9m (£4.2m) to get through the consenting process.

Carrington reminded his audience that the industry generated $760m (£355m) revenue each year from the farming of mussel, salmon and oysters (three quarters of which was export earnings) which was “but a drop in the ocean of the potential”.

He went on: “Salmon generates a return 16,000 times greater than sheep and beef per surface hectare.

“Unfortunately the salmon sector’s production has moved diddly-squat in the last 10 years.”

Carl Carrington, Chief Executive, New Zealand King Salmon

RNZ said Blue Endeavour is expected to be a major contributor to the industry’s $3bn (£1.4bn) goal, where it is hoped 10,000 tonnes of salmon will be produced at the 12-hectare farm each year. It should be worth an estimated $350m (£163m) in export earnings, which would more than double the company’s current production.

Its pilot farm, made up of two 55 metre diameter pens, is expected to be operational from mid-next year, with salmon to be harvested from 2030.

Carrington said the government had taken steps to reduce regulatory hurdles and he presented Minister for Oceans and Fisheries Shane Jones with the NZ King Salmon “Commercial Thinking Belt” which is awarded to an individual showing “…outstanding grit, ingenuity in cutting costs or creating value for our company”.

He said the Minister’s work had already saved the company close to NZ $2m (£934,000) and avoided the diversion of significant resources and energy just to maintain its current rights to operate.