December 27, 2024
Potential yearly value of Southland, New Zealand aquaculture sector at half of country's $3 billion target, agency says
The aquaculture industry in Southland, New Zealand, could be worth $1.5 billion a year — half of the country's $3 billion target — the region's development agency said.
Great South regional strategy general manager Bobbi Brown told the Otago Daily Times that, following a 12-month review of its Beyond 2025 Southland Long-Term Plan and despite some challenges, she believed the region was in a better position than expected.
Southland contributed a record $8.27 billion towards New Zealand's gross domestic product (GDP), making it the third-highest contributor per capita of any region in the country.
Brown said Great South's plan was to create a path for diversification of the region's economy in case New Zealand Aluminium Smelters decided to permanently close its Tiwai plant.
However, the company announced a 20-year power deal in June, which secured the operation of the plant for another two decades.
While this was great news, it did not mean the work towards diversification would stop.
One of the areas which was targeted for expansion was aquaculture.
In the original plan, it was estimated the region could expand its aquaculture industry into a $1billion-a-year industry, but Brown said this value was reviewed and was now estimated to be a $1.5 billion industry — half of the country's target of $3 billion.
"We are working with the government, because they are looking at doubling its exports and aquaculture is a big part of that and we are the best place in the country to do that — but probably not the most developed place," Brown added. "We need a significant amount of infrastructure."
Agriculture also continued to be the backbone of the region.
"It contributes over $4 billion to our economy — so over half of the whole GDP," Brown said. "There have been ups and downs, because it's a commodity-based sector and there was a very wet summer as well."
- Otago Daily Times
