A planned full-scale aquaculture production facility in Northern Australia, Project Sea Dragon, will be the largest land-based prawn farming operation in the country. Sea Farms Group in Perth, Australia, is leading the project, which will produce black tiger shrimp for export.
SeafoodSource recently caught up with Chris Mitchell, the group’s executive director, to discuss the new project.
Blank: Please describe Project Sea Dragon and when production will begin.
Mitchell: The project is intended to be developed in stages. The first stage is to be 1,000 hectares of grow-out ponds, producing a nominal 10,000 metric tons (MT) of black tiger shrimp. Subsequent stages will be built and will ramp up over the next decade, with timing to be designed to meet the market. Initial production is scheduled for early 2019.
Blank: Why is there such a global demand for prawns? Why did Sea Farms want to export to China, Japan, Korea and the United States?
Mitchell: Globally, we are seeing increased demand for high quality food protein. This demand is being driven by population growth and demographic changes, such as increases in wealth and focus on food safety and security. On the supply side, biosecurity challenges and industrialization are limiting growth. Collectively, these countries imported more than 870,000 MT per year and recent Free Trade Agreements offer new opportunities for Australia as a supplier of premium product. In addition, Northern Australia’s geography means that this production occurs at the crossroads of these major markets.
Blank: How much money has been invested in the project? How much more funding is needed?
Mitchell: Seafarms Group has invested and committed in excess of AUD 30 million (USD 21.8 million, EUR 19.7 million) in pre-feasibility studies, land access, technical due diligence and in obtaining regulatory approvals. Part of the bankable feasibility work underway is to determine the Capex and phasing to a high level of confidence. The bankable feasibility study is estimated to cost AUD 21 million (USD 15.3 million, EUR 13.8 million) and is expected to be completed in the last quarter of 2016.
Blank: How is Project Sea Dragon different from other farming operations?
Mitchell: The project is more than a “farm.” It has been designed as a vertically-integrated production system that includes breeding, hatcheries and processing for export. This enables strict biosecurity and production protocols at a globally-relevant scale. The approach has been demonstrated in salmon and will be translated to shrimp.
