The contribution of marine farming to the Thames-Coromandel District

Aquaculture in the Coromandel

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The economic contribution of marine farmingIn February 2017 the NZ Institute of Economic Research (NZIER) released a report on the economic

contribution of Thames-Coromandel aquaculture (marine farming and processing) to the District.

“Aquaculture is a key part of the social and economic fabric in the communities

of Coromandel Township, Manaia and Whitianga where the majority of sector

employees live and work. Iwi-owned aquaculture assists community wellbeing with

contributions from marine farming co-funding education and health services”

NZIER report 2017

As well as creating jobs and contributing to local and national GDP there are also a number of qualitative

social benefits that come from mussel farming and aquaculture in New Zealand. For specific details refer

to the table on P6 and the related case studies within this brochure. To read the full NZIER report on

Aquaculture go to www.tcdc.govt.nz/aquaculture

JOB CREATION

In the Thames-Coromandel and in neighbouring districts, aquaculture contributes over 800 direct

full time (FTE) jobs.

• About half or 350 of the roles are directly attributable to aquaculture within the TCDC District. These

jobs are specifically in aquaculture farming and processing. The industry provides wages ($13.4M)

and employment (350 FTE and 387 as full or part-time direct jobs) forming almost 4% of the Thames-

Coromandel District’s total employment. Of this 4%, approximately 1.5% (117 mussel and 26 oyster)

are in marine farming and a further 2.5% (201 mussel and 43 oyster) in processing of aquaculture

product. These jobs are available year-round rather than seasonally and the farming jobs in particular are

significantly better paid than other more scarce year-round local employment opportunities.

• The remaining 450 of the total 800 jobs are made up of aquaculture roles in other regions, notably

in Auckland and Bay of Plenty and Waikato. These roles range from producing equipment to local

market sales plus processing and exporting.

In February 2017 a report into the economic contribution of marine farming in the Thames-Coromandel District was published by the New Zealand Institute of Economic Research (NZIER). This fully independent expert report was prepared for the Coromandel Marine Farmers Association and Aquaculture New Zealand. A copy of the full report is available from www.tcdc.govt.nz/aquaculture or by emailing: tom@hrm.co.nz

The NZIER Report confirms that Coromandel marine farming creates;

• 350 jobs in the Distict. These are fulltime equivalent direct jobs. More jobs are created indirectly downstream eg engineering, retail, transport, plus in related industries eg charter and recreational fishing

• 7.2% of the District’s GDP at $69.6M

• 450 direct jobs in other regions

• $73M in exports and $30+M in NZ retail sales

• Nutritious, delicious, sustainable seafood

“Aquaculture, and Mussel Farming in particular, is of vital importance to our district.”

Many of us love our seafood and aquaculture contributes hugely to that love affair and our food-basket in the sea.

Aquaculture also enhances the recreational catch for fishing folk who hang out on the water by the mussel farms, in boats or kayaks, with a line or two over the side.

Tourism, employment and recreational pursuits are all boosted by our aquaculture industry.

Service industries within our local communities thrive on the additional spin-off from the provision of engineering and other necessities, such as ropes and buoys, for the industry.

The industry is constantly looking at how to improve what it does, to ensure that our environmental footprint is minimised.

Linkages with other countries, and forming relationships based on mutual interests, is one way of keeping informed of more innovative approaches to aquaculture activities.

This was evidenced at a recent sister-cities conference in Invercargill by the Palmerston North City Council Mayor outlining how they engage with a sister-city in the Netherlands, based on mutual interests in food production, research and technology.

Keeping engaged and informed, and developing relationships is an essential component for any council in support of industries within our region. For us that means taking advantage of opportunities that add value to aquaculture in our waters.

Mayor Sandra Goudie

Message from the Mayor and industry

Kindest regardsGilbert James, Chairman

Coromandel Marine Farmers Association

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ECONOMIC CONTRIBUTION

• Aquaculture contributes 7.2% ($69.6M) of the GDP of Thames-Coromandel District.

• Of the $69.6M of GDP $43M (4.5%) is from marine farming and $26.6M (2.7%) is from

aquaculture processing.

• Coromandel aquaculture also created export revenue of $73M in 2015.

• Coromandel aquaculture also creates local market sales of $30M+ annually.

• Further direct and indirect economic activity is related to industries that support aquaculture and

benefits the households that receive income, within Thames-Coromandel and in other districts, from

it. Aquaculture also stimulates growth in other industries such as construction, transport, retailing,

education and hospitality.

• Thames-Coromandel aquaculture delivers around 1/3 (30,000Tonne) of New Zealand’s GreenshellTM

mussel production and 1/4 (700Tonne) of New Zealand’s Pacific oyster production by weight.

SOCIAL CONTRIBUTION

Aquaculture is a key part of the social and economic fabric in the communities of Coromandel

(Town), Manaia and Whitianga where the majority of sector employees live and work. Iwi-owned

aquaculture is well represented in activities in the Hauraki Gulf/Tikapa Moana and regularly assists

with community well-being, with contributions from the marine farming sector going to co-funding

education and health services.

• The NZIER report highlights that the District’s current marine farming is equivalent to an economy of a

town the size of Coromandel. (2,817 as per the 2013 census.)

• Parallel industries have flourished on the existence of aquaculture in the region, notably including the

$2M+/year Coromandel recreational charter fishing business creating some 15+ FTE jobs. Culinary

tourism is another spin-off from the high quality mussel and oyster products produced in the region.

• Local Inputs. Most of the products and people that support the sector e.g. ropes, floats, seed-

stocking, transport, vessels, are produced locally and New Zealand owned and operated.

• Valuable, nutritious, delicious, health-giving seafood is created fully sustainably.

OUTLOOK AND NEXT STEPS

The outlook for the future contribution of aquaculture to the Thames-Coromandel District is very

good, provided there is further investment into this important industry.

• Current proposals for new consented areas could take shellfish production past 50,000T in the

following decade. Increased tonnage from existing areas could increase mussel and oyster production

by 50% by 2025.

• The NZIER report conservatively models the potential growth from an expansion of both mussel and

oyster production by 50% including the proposed introduction of fed-fish farming with potential to

produce 8,000 tonnes per year locally. The report finds that could add a further 5.0% ($48.1M) to the

GDP of Thames-Coromandel District.

• The report notes the growing international demand for high quality seafood protein and the growth trend

in high value nutraceuticals derived from mussels and other aquaculture products. Additionally, selective

breeding and commercial production programmes are underway for both mussels and oysters.

• Aquaculture’s contribution to the economy depends on continued access to the marine areas

allocated to marine farming production. In future there are likely to be opportunities to add

considerable value through higher return species.

• Waikato Regional Council are seeking interested investors to establish finfish farming within a 300 ha

zone west of Coromandel.

• The NZIER report states that to realise the benefits of continued aquaculture activity in the District,

and its potential to drive growth, infrastructure needs to be improved, or developed, to handle the

increased volumes of produce and inputs used. This will require improved wharf facilities to handle

additional barge movements, as well as landing area to handle additional truck loading.

OTHER STUDIES

This NZIER report updates previous Coromandel aquaculture economic impact assessments, including

‘Economic Impact of Aquaculture in the Waikato Region’, report prepared by Covec for Environment

Waikato. Available at – http://tinyurl.com/ya95fm8q and ‘Economic impact of Coromandel

Aquaculture’, by Sapere Research Group 2011. Available at – http://tinyurl.com/y9zrbgyd

The NZIER Report explains differences are based on more recent inter-industry transaction tables. The

NZIER report uses conservative methodology to assess the current and future value of aquaculture in

the Thames-Coromandel District.

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Coromandel aquaculture facts and figures

Measurement Mussels Oysters Combined total

Number of marine farms 100 15 115

Number of farmers/entities 35 3 38

Consented hectares 1,480 70 1,550

Tonnages produced by Thames-Coromandel 2015-16 financial year 24,832 466 25,298

Tonnages produced in other regions but transported to district for processing 2016 FY 4874 250 5,124

Estimated employees on farms 117 26 143

Estimated wages ($M) 5.2 1.3 6.5

Estimated employees working in processing 201 43 244

Estimated processing wages ($M) 5.4 1.5 6.9

Exports sales revenue, FOB ($M) 68.3 4.7 73.0

Gross output marine farming ($M) 55.1 2.5 57.6

Estimated GST, excise and levies ($M) 1.14 0.04 1.18

Marine farm contribution to Thames-Coromandel GDP ($M) 41.0 2.0 43.0

Marine farm contribution to Thames-Coromandel GDP (%) 4.3 0.2 4.5

Aquaculture processing contribution to Thames-Coromandel GDP ($M) 24.5 2.1 26.6

Aquaculture processing contribution to Thames-Coromandel GDP (%) 2.5 0.2 2.7

All aquaculture contribution to Thames-Coromandel GDP ($M) 65.5 4.1 69.6

All aquaculture contribution to Thames-Coromandel GDP (%) 6.8 0.4 7.2

Source: NZIER and Aquaculture New Zealand

Locations of mussel and oyster farms

Source: Waikato Regional Council

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PART TWO: REPLENISHING THE FOOD BASKET | WĀHANGA TUARUA: MAHINGA KAI – HE KOHINGA KI TE KETE KAI

Map 5.1 Existing aquaculture sites, indicative areas preferred for future aquaculture development, and areas unsuitable for aquaculture.

See Appendix 2 for detailed locations and explanations of the numbered aquaculture sites.

Source: Waikato Regional Council

Growth expansion options from the Hauraki Gulf/Tikapa Moana Spatial Plan

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GreenshellTM mussel farming in the CoromandelNearly 40 years ago, in 1978, a small trial mussel surface long-line was anchored in Coromandel

Harbour and with it, the Coromandel mussel farming industry was born. In the decades since, the

industry has evolved from a group of innovative pioneers, into specialised producers of premium

seafood, all while upholding environmentally sustainable methods.

Greenshell mussels are farmed sub-tidally, suspended from a surface long-line rope and buoy system.

Growing ropes are seeded with very small (1mm) mussels called ‘spat’ which are mostly harvested

attached to beach-cast seaweed, along Northland’s Ninety Mile Beach. Some spat, is at times, caught

either locally, or increasingly, it is bred in a commercial hatchery.

Once the baby mussels have attached themselves onto the growing rope, they remain until they

become a seed size of around 40-50mm when they are then stripped off and resettled at optimum

density onto the final grow-out rope. Harvest size is generally 90-100mm shell length, with total growth

taking some 18 months.

Harvest is timed for when the mussels are in optimum condition and also by an Industry programme

of water and shellfish quality monitoring to ensure absolutely safe food. For both mussel and oyster

farming, large amounts of work are done at a shore base. Work includes reconditioning used farm gear,

and preparing and assembling new equipment for on-farm deployment. An example of this on-shore

work includes the manufacturing and/or reconditioning of mussel floats and/or ropes. The majority of

mussel rope and stocking is made and supplied locally from Thames. Additionally there is work in light

engineering for farm and vessel equipment and maintenance, which is also provided locally.

The Coromandel Marine Farmers’ Association Incorporated (CoroMFA) has membership from

every mussel farm, and many of the oyster farms, within the Hauraki Gulf/Tikapa Moana. That is at;

Coromandel Town and surrounds, the Thames Coast, Waimangu Point, East Auckland, Waiheke Island.

There is also mussel farming at Great Barrier Island and oyster farming in Mahurangi Harbour that

constitutes the rest of the aquaculture industry within the Hauraki Gulf/Tikapa Moana.

Oyster farming history in the Coromandel Coromandel oyster farms were some of the first in NZ to move from seabed cultivation on rocks and

similar environments. In the early 1960s techniques were developed for farming the Native NZ Rock

Oyster inter-tidally on sticks and trays and baskets.

In the 1970s, production shifted to NZ Pacific Oysters which have high growth rates, good taste and

appearance and reach larger sizes. By the 1970s Pacific Oysters had built up to high numbers after

being introduced into New Zealand in the 1960s, perhaps on a barge from Japan, with materials for

building the Auckland Harbour Bridge.

Coromandel farmed oysters are washed over by two tides a day and spend 1/3 of the time suspended

out of the water. This gives the oysters time to rest and ensure shells are clean, as most are sold fresh

or snap-frozen in their shells. They are harvested at 15-20 months.

Hauraki production of this briny aphrodisiac delicacy is around the Coromandel Harbour and surrounds,

Waiheke/Clevedon and in Mahurangi Harbour at Warkworth, north of Auckland.

The significant new areas of water now under development e.g. at Wilson Bay, off the Thames Coast,

will allow increased mussel production of up to 50%, to 40,000 tonne annual production of Greenshell

mussels, from 26,000 tonne already produced now from around Coromandel.

There are also opportunities being looked at for other forms of aquaculture development, such as

finfish farming.

Iwi businesses now own a significant proportion of the marine farms in Waikato and the Coromandel.

The Coromandel aquaculture industry invests $350,000 + annually to ensure shellfish harvests

from growing waters are always clean to meet stringent Ministry of Primary Industries (MPI) Shellfish

Standards, to prevent microbiological and biotoxin contamination. This data is also important to the

Ministry of Health for protecting the public interest in the harvesting and consuming of safe shellfish.

For further information on farming methods, please check out www.marinefarming.co.nz

or www.coromfa.co.nz

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Moana New ZealandMoana NZ is the largest Maori-owned seafood and fisheries company in

New Zealand that is heavily invested in NZ Oyster farming, particularly in

the Coromandel.

As shown on its website, Moana NZ commits to a deep sense of

responsibility and respect for kai moana, honouring the taonga they have

been entrusted with. Taking a long term view in everything they do, they

work in harmony with nature to ensure the sustainability of our fisheries

for future generations. Moana NZ owns the Coromandel oyster farming

and processing assets of the former Pacific Marine farms. The company

employs 43 people in processing oysters in Coromandel Town, as well as

additional people for farming.

www.moana.co.nz

O P ColumbiaOPC is a major participant in the aquaculture industry based out of

Whitianga, specialising in Greenshell™ Mussels. OPC processes and

exports mussels world-wide and employs approximately 11 people full-time

and has another 150 jobs for 42 to 45 weeks per year, depending on the

mussel harvest season.

www.opcolumbia.co.nz

Coromandel Mussel KitchenCoromandel Mussel Kitchen is unique in that it collects, cultivates,

harvests, cooks and serves it’s very own green-lipped mussels. This

is a demonstration of vertical integration at its best. They grow most of

their herbs and fresh salad items onsite, and now brew their own craft

beer under the MK Brewing Co brand. Coromandel Mussel Kitchen has

employed people in mussel processing but is now focused on producing

and selling through its restaurant a wide range of mussel and other foods.

www.musselkitchen.co.nz

Processing Coromandel’s seafoodThere are a number of companies involved in value-added processing of the products harvested

from Aquaculture in the region, some of which are briefly profiled below:

Recreational charter boat businessesAquaculture, and mussel farming in particular, is of great benefit to the recreational and charter

fishing businesses based out of the Thames-Coromandel District. They generate over $1M of annual

income for Coromandel (Town), from taking out some 20,000 fishers annually. The customers

experience high customer satisfaction with fish being caught (~90%) inside Coromandel mussel

farms for snapper and other fish species feeding within the vicinity. At May 2017 the District had

seven companies and 12 vessels (15+ FTE) all with skippers and some with deck hands, making for

many valuable jobs within the district.

Profile: Tom and Lorraine MeyersSome of the best places to go fishing on the Coromandel are around mussel farms, which is why there is a thriving charter boat industry. Take “Coromandel Fishing Charters,” run by Tom and Lorraine Myers out of Coromandel Town, one of the charter operators providing their service all year round (weather permitting).

Tom and Lorraine have 2 vessels with 2 skippers and 2 deckies, making for four full-time staff, plus more for servicing and supplies. Tom says that 90% of the charter fishing is done in and around the mussel farms, as that is where the good fishing is.

“We regularly get people on our charters catching snapper from 10 to 15lb, well up to 20lbers,” Tom says. Locally Tom spends about $6,000 a month on fuel, as well as about $450 per week on bait, not to mention the costs of gear and maintenance.

www.coromandelfishingcharter.co.nz

Profile: Salty TowersSalty Towers Limited is another $1M fishing business and much of its success is attributable to the presence of mussel farming in Coromandel.

A family business run by owners Jeremy and Hank Codlin, it’s located at 1965 Tiki Road Coromandel, near the Preeces Point Road turn-off.

Salty Towers has an annual turnover of $1M from;

• supplying the bait for much of the local recreational charter fleet and for fishers beyond

• selling ice, bait and berley to recreational fishers

• smoking and filleting fish for customers (500 good size fish done after 3 days over Anzac weekend 2017)

• selling 3T mussel berley per week, which also comes from rejected, broken and discarded product, as well as selling large volumes of edible fresh mussels daily

• employing 3 staff (likely more as FTE), with opening hours typically from 6am to 9pm every day.

Salty Towers Limited is rightly proud of the service it provides using local people and products to successfully support the community.

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Some tips for recreational anglers dropping a line around mussel farms:

• Don’t tie-up to the same line as the one being worked on – this endangers you and our crew.

• Keep a minimum of 30 meters from working mussel barges at all times.

• Never cast your line towards near mussel barges – crews get injured from flying hooks

and sinkers.

• Remember shellfish are being farmed for people to eat. Please don’t discharge sewage anywhere

near a marine farm. Discharge within 500m of a farm is illegal.

• Anchors are likely to get tangled in mussel farm lines. Please only tie onto a long-line buoy, or use

approved mooring hooks to secure to mussel long-lines

• Minimise vessel speed and minimise wake, when operating adjacent to other vessels at a marine

farm. Please beware that some horizontal long-lines are subsurface.

• Boat to boat, please call-up on Channel 17 but please do not use this channel to chat on.

Recreational fishingAquaculture helps to enhance the recreational fishing attraction in the Coromandel.

Recreational fishing contributes to the social, economic and cultural well-being of all Kiwis, whether

they actually go fishing or benefit from the significant economic activity it generates.

Recreational Fishing is a billion dollar industry for New Zealand according to a 2016 NZ Marine Research

Foundation report. Saltwater fishing is the fifth most popular leisure activity for hundreds of thousands

of New Zealanders. To add to this, NZ is the third largest trailer-boat-owning nation per capita and the

trend is moving from moored vessels to larger trailer boats.

Demand for adequate recreational facilities to cater for recreational fishing demand and growth is

increasing. Nationally, recreational fishing supports 8100 jobs stimulating $1.7 billion in total

economic activity.

The Thames coast and Coromandel area are extremely popular destinations for recreational fishing and

this is in part due to the presence of the mussel farms and the habitat they provide for many fish species

including snapper and kingfish. Many recreational fishers also visit the Coromandel independently for the

good fishing that is in and around the mussel farms. These people also buy fuel, bait, food, tackle and

accommodation locally for their adventures.

The recreational and charter fishing industry in NZ is

currently growing by 10% annually. Research also shows

that fishing and outdoor activities are major drawcards

for tourists and New Zealanders returning home to settle

down and raise a family.

Many businesses support recreational fishing, including

retailers, boat builders, tackle manufacturers, suppliers,

marinas, motels, restaurants and charters. Meanwhile

$89M is spent by 100,000+ international tourists on

marine fishing activities each year.

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Aquaculture and the peopleAquaculture is a key part of the social and economic fabric in the communities of Coromandel

(Town), Manaia and Whitianga where the majority of sector employees live and work. Iwi-owned

aquaculture assists community well-being, while the marine farming industry helps co-funding

education and health services.

Aquaculture and the environmentThe Coromandel aquaculture Industry fully recognises the Hauraki Gulf/Tikapa Moana has a

spectacular marine environment and is doing everything possible to ensure it’s kept that way.

This includes:

Working under the Resource Management Act. Industry’s production is fully

sustainable, operating under the Resource Management Act. Ecological effects are typically positive, or

if adverse, are no more than minor, small-scale and reversible. Other environmental effects (eg visual) of

the Gulf’s well-sited shellfish farms are minor.

In an ecological sense, marine farms replicate the extensive former Greenshell Mussel beds that used to

exist in the Gulf. Thus farms act as artificial reefs, to enhance marine productivity.

Supporting Seabed restoration. The Revive our Gulf project, run by the Mussel Reef

Restoration Trust, aims to restore Hauraki’s Greenshell mussel beds, to enhance fish stocks and other

marine life and improve Hauraki water quality. This project is supported by Coromandel Marine farmers

who have supplied mussels, equipment and knowledge to help the project’s efforts to rejuvenate these

once very extensive and important mussel beds. http://reviveourgulf.org.nz/

Working within the A+ Sustainable Aquaculture framework. A+ is a world-

class, sustainable management framework which enables the aquaculture industry to better engage

with communities and continuously improve its environmental practices as well as meeting demand for

quality seafood. It was launched by Aquaculture NZ in late 2015 and the majority of Coromandel marine

farmers are expected to have signed-up and be operating under A+ before 2018, with adoption soon

after by even the smallest operators.

A+ objectives align with those of world-leading accredited certification programmes – such as

Aquaculture Stewardship Council (ASC) and Best Aquaculture Practice (BAP). This association further

substantiates the importance we place on our role of being outstanding guardians of our place and

people. The A+ programme focuses on the following issues:

• Healthy ecology • Guarantee of food safety

• Clean clear water quality • Valuing Iwi participation

• Responsible waste management • Enhancing our communities

• Efficient use of resources

www.aplusaquaculture.nz

Organising float recovery and clean-ups. Coromandel Mussel farmers periodically lose

mussel long-line floats despite their best efforts. Farmers always regret losing these floats as it represents

a financial loss, and a loss to the farm, as floats are vital for floating and spacing the gear and crop.

If you find a float or floats, please hold them and contact Campbell Barr by email at CBarr@niml.co.nz or

phone 07 866 8853 and CoroMFA will collect it and make a $15/float donation on your behalf to your

charity of choice. (CoroMFA currently pays to; schools, fire brigades, and more).

Harry and Ruth Mikaere, community advocates,health service pioneers,marine farmers

Injecting $31.4 million into the local economy and providing jobs for over 400 locals… Aquaculture is a vital

part of the Coromandel community. www.coromfa.co.nz

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About the IndustryThe Coromandel Marine Farmers Association represents the mussel and oyster farmers (except those

in Mahurangi Harbour near Warkworth) in the Hauraki Gulf/Tikapa Moana. The farms are concentrated

around the western Coromandel Peninsula and south-east of Waiheke Island.

Their products are available at nearly all supermarkets in the upper North Island.

Useful Links

www.aquaculture.org.nz

www.marinefarming.co.nz

www.tcdc.govt.nz/aquaculture

www.waikatoregion.govt.nz/aquaculture

www.coromfa.co.nz

Contact us

Gilbert James, Chairman, Coromandel Marine Farmers Association

Tom Hollings, Executive Officer, ph 0274 953 957 email: tom@hrm.co.nz

By Post; c/ – Peninsula Business Services, PO Box 118, Whitianga 3542

TCDC Economic Development Manager

Colleen Litchfield

colleen.litchfield@tcdc.govt.nz