ase is said to be part of a $20m investment aimed at premium seafood markets in Asia and marks CMG’s first investment in aquaculture.CMG successfully outbid a number of Chinese investors for the abalone farm which now sells over 95 percent of its product live to Japan, Hong Kong and China.
CMG’s CEO David Lock said that a sophisticated selective breeding program developed in conjunction with the CSIRO has seen productivity increase by 30 percent, and that the company plans to double its current output of 200,000 tonnes of abalone per year to 400,000 tonnes annually by 2017 with increased exports to China, Singapore and Hong Kong, The West Australian reports.
"Based on what we have seen, the science behind this abalone farm is far and away the best of any in Australia," Lock told the West Australian.
"Effectively, the business was a high-tech start-up that recently became commercially viable. It was the perfect time for us to step in and bring our expertise in marketing into Asia.
"We believe aquaculture offers great growth potential in Australia, specifically in the production of high-quality and high-value seafood."
The purchase of Jade Tiger Abalone adds to the company’s expanding seafood portfolio. The company spent $5 million late last year acquiring Tasmanian lobster businesses operating in Bicheno and Dover - which also happen to handle abalone - providing CMG with an introduction into the abalone industry.
"We started exporting live wild-caught abalone and understanding that business," Mr Lock said. "I haven't always been a proponent of the Asia food story being the saviour of Australian primary production but I am a strong believer in the niche market for the high-quality, high-value products that Asia wants and abalone is absolutely one of those."
