Aquaculture focused Agribusiness in Australia

This report explores the largest aquaculture focused agribusiness in Australia, Seafarms Group Ltd, and analyzes its business units, products, and service lines. It also discusses the importance of its largest revenue unit and its impact on the company's financial performance.

Strategic Management
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Table of Contents
Introduction.................................................................................................................................................2
Aquaculture focused Agribusiness in Australia............................................................................................2
Business Units, Products, and Service Lines................................................................................................3
Business Revenue Units...............................................................................................................................4
Importance of its Largest Revenue Unit..................................................................................................4
Conclusion...................................................................................................................................................5
References...................................................................................................................................................6

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Introduction
The industry of aquaculture in Australia is the fastest growing industry in the nation, which
accounts for 34% of the total seafood production. Aquaculture production is spread throughout
Australia, from the tropical north to the temperate south. The industry of aquaculture is mainly
based in provincial Australia and makes a vital contribution to the development of the provinces
of Australia. The report will identify one corporation in aquaculture focused agribusiness sector
of Australia. It will also analyze the business units, products, and service lines of the chosen
corporation. It will assess the business revenue units and the importance of the largest revenue
units of the chosen corporation.
Aquaculture focused Agribusiness in Australia
Seafarms Group Ltd (SFG) is the largest aquaculture focused agribusiness that operates in Perth
in Western Australia and sells products under the brand name of Crystal Bay Prawns. It was
established almost 30 years ago in the year 1988 by Mr. Ervin Vidor AM (Alexander et al.,
2016). It is registered in Australian Securities Exchange (ASX) and the total market
capitalization of nearly AUD$77 million as calculated in the year 2018. The total number of
staffs in the company is 250 as estimated in 2018, and the company operates in Australia,
Vietnam, and New Zealand. The name of the company, “Seafarms” itself reflects the current
strategic intention and business that is to develop and to undertake the production of aquaculture
for producing the best quality seafood.
SFG has a highly experienced team of management for aquaculture operations, business and
finance development, and project management and development. SFG still works on the
principles of its founder with main focus on best farming practices of prawns, to make sure of the
success of the production of its products Crystal Bay Tiger Prawns and Crystal Bay Prawns in
Cardwell. The organization grow, process and distribute more than 1800 tons of prawns each
year, which is almost 43% of total growth rate from the last four years making SFG the largest
producer of prawns in Australia. SFG also has an international reputation as a manufacturer of
sustainable, safe, and best quality prawns and aims for highly valued local and foreign markets.
The growing demand of the local species of Australia, the proximity of foreign markets along
with the world best standards and quality of seafood has led the aquaculture of SFG to

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competitively position itself for taking on high-value products. SFG is involved in aquaculture
operations, aquaculture project development, the provisions of conservational services that
includes advisory in carbon farming projects and ecosystem off-sets, tradeoff environmental
acknowledgments and carbon project management. The farm of SFG in Queensland is utilized as
research and development (R & D) for preparing and building Project Sea Dragon (PSD), a
10,000-hectare land-based farm for prawn production. PSD is the largest land-based farm for
producing prawns in Australia.
Business Units, Products and Service Lines
Business Units - The business units of SFG are divided into three units, and they are as follows:
1. Farms - SFG have three farms, and they are situated in Ingham and Cardwell. It has grow-
out facilities along with 148 ponds, which cover 160 hectares across the farms of SFG
(Alleway et al., 2018). It also has a processing plant, farm administration, and maintenance
division.
2. Hatchery - SFG has hatchery which is situated at Flying Fish Point in Innisfail. It includes
ARC Research Hub and R & D Project for Advanced prawn breeding (Norman‐Lόpez. et al.,
2016)
3. Founder Stock Centre - SFG has a Founder Stock Centre, which is situated in Exmouth and
consist of a bio-secure brood stock breeding facility (Nugegoda and Kibria, 2017).
Products - SFG is the largest producer of farmed prawns in Australia, and the farms of the
company have been marketing, selling and operating the products from the year 1988 under the
brand name of Crystal Bay Prawns. SFG produces superior quality and reliable prawns all-round
the year for both consumers of Australia as well as the export marketplaces. The company farm
two different species of prawns: Penaeus merguiensis and Penaeus monodon and ensure its
consumers to have fresh prawns nearly 52 weeks in the year (Farrell et al., 2018).
Service Lines - SFG is involved in aquaculture operations, aquaculture project development, the
provisions of conservational services that includes advisory in carbon farming projects and
ecosystem off-sets, tradeoff environmental acknowledgments and carbon project management.
The organization is segmented in three groups, Aquaculture, Carbon Services, and Other
(Hobday et al., 2016). Aquaculture is involved in the growth of aquaculture operations of prawn

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in North Queensland and land-based project of aquaculture in North Australia through Sea
Dragon Project (Richards et al., 2015). Carbon Services is involved in the formation and
supervision of projects of re-vegetation and carbon sinks all through Australia. It also includes
the provisions of diminution certificates created from recognized carbon sinks of the forest that is
maintained by SFG and its clients and dealing in environmental acknowledgments. Other is the
collection of the other segments of the organization (Vince and Haward, 2017). The organization
produces two kinds of prawns, black tiger prawns and banana prawns that are sold under the
brand name of Crystal Bay Prawns.
Business Revenue Units
Production - The main focus of SGH is on the best farming practices of prawns, to make sure of
the success of the production of its products Crystal black tiger prawns and Crystal Bay banana
prawns in Australia and also in the exports market. SFG produces superior quality and reliable
prawns all-round the year for both consumers of Australia as well as the export marketplaces. It
produces almost 1800 ton of prawns in the year 2018. The total revenue from the production of
the prawns in the year 2018 was AUD$14.15 million (Hook et al., 2018). The production helps
SFG to achieve all its targets and produces the products to meet the needs of the consumers of
Australia and also in exports marketplaces.
Sales - SFG sells Crystal Bay black tiger prawns and Crystal Bay banana prawns in Australia
and also in the exports market. The total revenue from sales of the prawns in the year 2018 was
AUD$34.96 million. Investors always want to know the sales of the company to understand the
position of the business as well as the cash flow of the company. Sales help SFG to generate
revenues and demonstrate the financial growth and performance of the company.
Importance of its Largest Revenue Unit
The largest revenue unit of SFG is the revenue unit of sales of the prawns of SFG, the total
revenue from sales of the prawns in the year 2018 was AUD$34.96 million (Johnson et al.,
2017). Seafarms Group Ltd (SFG) is the largest aquaculture focused agribusiness that operates in
Perth in Western Australia and sells products under the brand name of Crystal Bay Prawns due to
the revenue unit of sales. SFG lost almost AUD$ 13.2 million in the last quarter of the year 2018
but made progress in the first few months of 2019. The company saw revenue of AUD$17.9

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million that is nearly 9.1% more than the previous year and production of 872 tons in July in the
year 2018. The total sales increased by 16.4% after July and declined during Christmas.
The importance of revenue unit of sales for SFG is that generating revenue through sales is the
ultimate goal of the company (Lafferty et al., 2015). The growing demand of the local species of
Australia, the proximity of foreign markets along with the world best standards and quality of
seafood has led the aquaculture of SFG to position itself for taking on high-value products
competitively. Sales are equal to revenue, and the expenses are covered by the revenue. The
capacity of SFG to cover its costs leads to stable operations and opportunities for more
development. Without sales, SFG will struggle and face challenges to attract investors and
develop its business. Sales always remain at the top of the financial report of SFG and show the
revenue of the company (Lauer et al., 2015). Investors always want to know the sales of the
company to understand the position of the business as well as the cash flow of the company.
Conclusion
The report selected Seafarms Group Ltd as a corporation in aquaculture focused agribusiness
sector of Australia. It also evaluated the business units, products, and service lines of Seafarms
Group Ltd. It analyzed the business revenue units and the importance of the largest revenue units
of Seafarms Group Ltd. SFG is the largest aquaculture focused agribusiness that operates in
Perth in Western Australia and sells products under the brand name of Crystal Bay Prawns.
Farms, hatchery, and Founder Stock Centre are the business units of SFG and the company farms
black tiger prawns and banana prawns. Aquaculture, Carbon Services and Other are the service
lines of the company, and production and sales are business revenue units of SFG. The largest
revenue unit of SFG is the revenue unit of sales of the prawns of SFG, the total revenue from
sales of the prawns in the year 2018 was AUD$34.96 million.

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References
Alexander, K.A., Angel, D., Freeman, S., Israel, D., Johansen, J., Kletou, D., Meland, M.,
Pecorino, D., Rebours, C., Rousou, M. and Shorten, M., 2016. Improving the sustainability of
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Environmental science & policy, 55, pp.96-106.
Alleway, H.K., Gillies, C.L., Bishop, M.J., Gentry, R.R., Theuerkauf, S.J., and Jones, R., 2018.
The Ecosystem Services of Marine Aquaculture: Valuing Benefits to People and Nature.
BioScience, 69(1), pp.59-68.
Farrell, H., Baker, P., Webster, G., Jansson, E., Szabo, E., and Zammit, A., 2018. An Assessment
of Potential Heavy Metal Contaminants in Bivalve Shellfish from Aquaculture Zones along the
Coast of New South Wales, Australia. Food Protection Trends, 38(1), pp.18-26.
Hobday, A.J., Spillman, C.M., Paige Eveson, J. and Hartog, J.R., 2016. Seasonal forecasting for
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Norman‐Lόpez, A., Sellars, M.J., Pascoe, S., Coman, G.J., Murphy, B., Moore, N., and Preston,
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