The feasibility of a financial safety-net: investigating financial mechanisms to protect growers from disease outbreaks
BUDGET EXPENDITURE: $100,000
PRINCIPLE INVESTIGATOR: Andy Myers
ORGANISATION: NSW Farmers Association
PROJECT CODE: 2023-070
PROJECT STATUS: Current
WHY IS THE RESEARCH BEING UNDERTAKEN?
The New South Wales (NSW) oyster industry is the state’s largest aquacultural sector, yet disease risks pose threats to the long-term sustainability and growth of the sector. Over the past two decades, oyster production has been particularly impacted by two biosecurity risks – the Queensland unknown (Qx) disease and Pacific Oyster Mortality Syndrome (POMS). Outbreaks of both diseases across various NSW estuaries has caused significant loss of stock, in addition to other financial consequences for oyster producers including restocking
and clean-up costs.
There are currently no formal financial support arrangements available to oyster producers impacted by disease incursions. During prior outbreaks, producers have primarily relied on their own financial buffers, although a small amount of ad-hoc funding has been made available on occasions. For many producers, the costs of disease response are borne amid a period of no income, unless they have diversified their oyster stock by species and/or location.
It is in this context that the NSW Farmers Association (NSWFA) secured funds to investigate financial support mechanisms to bolster the long-term viability of oyster production, particularly as a changing environment increases the risk of disease outbreaks and non-disease supply shocks in the future. Deloitte Access Economics was engaged to investigate the feasibility of various financial support mechanisms and develop a shortlist of options that could potentially support NSW oyster growers.
OBJECTIVES
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By October 2024, obtain insights into potential financial support mechanisms, and their suitability for implementation in the NSW oyster industry.
PROJECT RESOURCES GENERATED:
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COMING SOON - Final Report: The feasibility of a financial safety-net: Investigating financial mechanisms to protect NSW oyster growers from disease outbreaks
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COMING SOON - Two-page summary document
