2012/741 Southern Rocklobster market diversification study

By David McKinna

This report focuses on market diversification options for the Australian Southern Rock Lobster industry. The report was commissioned in response to industry concerns about an overreliance on the Mainland China market. With more than 60% of total production (and a higher percentage in value terms) going to one market via a volatile supply chain, the industry is highly exposed to any disruption or volatility.

The project has entailed desk research, together with a comprehensive program of industry engagement and supply chain interviews. SRL accounts for around 4% of total global lobster production and as such, is a niche player in the world market. This, plus the fact that Australian SRL is considered by the Chinese market to be a premium product because of its cold and clean water origin and its red colour, puts it in a very strong position.

The study found that the data and market intelligence systems to support identification of opportunities needs to be improved. There is a need to differentiate SRL product through whole of industry branding and market development activities. The report also examines opportunities to develop a stronger Australian domestic market.