An economic enterprise

Bruce Alford runs an oyster farm on the Hawkesbury River. Although his farm is located at Mooney Mooney, the oysters are grown on multiple leases in the Hawkesbury River.

The oyster industry in the Hawkesbury River has been devastated by successive disease outbreaks. New technologies and strong linkages between governments and industry groups are required to keep this economic enterprise financially viable.

The Nature of The Economic Enterprise

Sydney Rock Oysters and Pacific oysters are grown.

Oyster farming uses baskets and trays on leases on the river. Oyster sprat are purchased and the Pacific oyster sprat are required to be infertile triploids

Bruce Alford operates as a member of the Broken Bay Oyster brand. The group shares knowledge and resources, collectively purchases and retails and uses common branding.

Prior to the Qx outbreak in 2003, Alford's produced approximately 200, 000 oysters annually. However, in 2014/15 they produced 21 119 dozen oyster (worth approximately $144,199) which was an increase on 2013/14 production of 18 201 dozen (a value of $124 591). This is the largest production within the Broken Bay Oyster group.

Locational Factors

The Hawkesbury River catchment has positive and negative effects on the enterprise. The nutrient levels and salinity are ideal. However, the population growth within the catchment has been very large creating the threat of polluted run-off.

The enterprise is located approximately 1 hour from the Sydney market.

Ecological Dimensions

Around 95% of the coastal surrounding area is national park which is excellent for the water purity.

Oysters have an overwhelmingly positive effect on the estuarine environment due to their filter feeding nature. Oyster farming also places great pressure (and generates economic value) on maintaining a highly pristine ecosystem. Together this makes oyster faming a highly sustainable industry. Broken Bay oysters has done large amounts of work to improve the amenity of the river by switching to more ecological practices and removing old tar coated oyster infrastructure.

Disease outbreaks have begun to threaten the viability of the industry in this catchment.

As oyster farming takes place in situ, there are a number of pests that affect the enterprise. However, human theft has far greater impact than disease or parasites.

Sea level change from climate change does not have much affect on the operation. However, ocean acidification and the increased frequency of extreme heat days and storms do impact farming operations. Irrigation is used to address heat while oysters need to be relocated to maintain a viable salinity level.

Internal and External Linkages and Flows

There are relatively few people within the enterprise so most linkages and flows tend to be external.

External linkages are highly varied. Most product is sold to the Sydney market and generates great profit. Broken Bay Oysters is licensed to export their product to lucrative overseas markets, however the product has not been in sufficient quantity. Relatively few people are employed by the enterprise however, labour can still be difficult to secure due to the nature of the work and the non-metropolitan location.

There are significant outflows of capital for the purchase of good in the production chain. However there are some inflows from government grants.

Some of the most important linkages are between the industry, NSW DPI and those involved in environmental and species research such as tertiary research and NGOs like Ocean Watch.

Associate professor David Raftos from Macquarie university has produced several papers on the effects of Qx virus on the Sydney rock oyster. This research has partially been undertaken in Porto Bay, where Broken Bay Oyster leases are located.

Effects of Global Changes in the Economic Activity on the Enterprise

The opening up of export markets through trade deals and refrigerated transport (economic globalisation) is making aquaculture both more lucrative and competitive. Creates opportunities for export but also creates greater competition. However, Broken Bay Oysters focus on delivering a premium product and avoids export.

Within Sydney, increasing incomes and adventurous pallets supported by migration (cultural globalisation) is creating a demand for diverse aquaculture products with specific providence information. The change to triploid Pacific oysters was welcome by Chinese and vietnamese buyers who favoured the larger organism.

Internet retailing technology (deintermediation) and farm gate sales have become more viable options for retailing.

A demand for more sustainable farming practices benefits Bruce Alford. More environmentally sustainable practices tend to be less costly in the long term and encourage female participation in the industry as the most significantly manual aspects of labour are eliminated.

Climate change continues to change the practices of aquaculture producers.

Biodiversity and research is required to resist future disease outbreaks.