Q&A: Cleanseas forges ahead

SeafoodSource caught up with Clifford Ashby, managing director of Cleanseas, to talk about the Australian company’s future. This is part two of a two-part interview; part one ran on Friday.

Holland: What tactics will Cleanseas deploy to raise consumer awareness in its products, such as yellowtail kingfish, mulloway and bluefin tuna?
Ashby:
Chef education and inspiration, in-store consumer tastings and trade education will continue to be paramount in raising awareness. For example, we recently held a day of master classes for our suite of products in central Oslo with our Scandinavian distribution partners Flying Seafood to widespread acclaim by chefs, the trade and media. It was one of the best-attended events the culinary scene in Norway has seen for many years and we are regularly holding similar events in countries around the world.

We are also grateful that many NGOs appreciate the groundbreaking work Cleanseas is doing on turning around the decline of global bluefin stocks and to also assist considerably in raising public awareness.

Yellowtail kingfish appears to have been well received in many premium, fine-dining markets. Can you explain why production is being capped at 2,500 metric tons for the next five years?
The decision was based on the kingfish business’ need to be profitable, plus allowing capacity for our bluefin business. It is important to understand that the standards of our aquaculture — low intensity, remote sites in native waters, environmentally friendly — will produce a truly clean, green and sustainable product. But, as a result, the business has far different cost structures than much of the aquaculture in the rest of the world, for example, some of the farms in Chile or Southeast Asia or even in Greece and Spain.

Does the kingfish cap mean more focus will be placed on bluefin tuna production?
Absolutely, from a research-and-development perspective as well as from a resources perspective.

What are Cleanseas’ short-, medium- and long-term plans for bluefin aquaculture?
I cannot divulge these as they could be price sensitive. However, in the short term the aim is to continue with the extensive research that is being undertaken with the aim of becoming commercial.

Have you discovered the cause of the recent bluefin tuna fingerling deaths?
Yes, we have. However, this is confidential information, forming part of our intellectual property.

What are the barriers to producing these fish and getting them to market? Is it technology, husbandry, a problem applying desktop theories and software programming to actual physical production, or something else?
The most significant barrier is that the project is a world first. No one else has done it with [southern bluefin tuna], hence a steep learning curve and substantial research needs to be undertaken. Replicating on land what is done in nature by a species not a lot is known about certainly has its challenges.

In your opinion, what is the key element to developing a successful seafood company? Cost efficiency, yield, raw material utilization, or something else?
Successful brand building, quality product, cost-efficient production and sustainability. Without strong brand recognition, premium pricing cannot be achieved and this would impact pricing and ultimately profitability. Similarly, without a quality product it becomes a commodity and it is very difficult for Australian companies selling commodity products into highly cost-competitive markets. Ultimately, though, without sustainability one will not have a business in years to come.

How are environmental pressures, particularly on issues such as carbon footprints, changing the nature of the business?
The environmental pressures are mounting every day and are a key reason for the success of our brand and products, validating the overriding strategy of the Cleanseas business since the outset.

Some of the key issues seem to have periods of especially high public awareness following extensive press coverage. Fortunately, it seems the whole issue of sustainability of the global marine stocks is not being seen as a flash in the pan by the press or consumers, and the awareness in all corners continues to grow.

The carbon footprint of products is a very critical issue and fortunately our customers understand that it is a very complicated issue that will need to be addressed on a step-by-step basis over time. Looking at the big picture, the carbon footprint of the sensible transportation of well-grown products from one market to another market is far outweighed by the footprint of inefficient and unsustainable production or catching of fish or foods in nearer markets.

Finally, where do you expect Cleanseas to be in 10 years?
An extremely successful global producer and marketer of sustainable seafood, primarily southern bluefin tuna and kingfish.

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