Aquaculture Zoning in the Southland Region - Phase 1 Satellite View - Report of What Aquaculture May Be Possible Where

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19 The Crescent, PO Box 1262,Invercargill 9840, NEW ZEALANDTelephone: 03 218 2546 Facsimile: 03 214 4285 Email: [email protected] Web: www.bonischenvironmental.co.nz

Bonisch Consultants Limited trading as Bonisch Environmental Freephone: 0800 802 546

Enabling sustainable use of natural resources

Aquaculture zoning in the Southland region

Phase 1: Satellite view of where and what

type of aquaculture may be possible

Report prepared by Bonisch Environmental for Environmental Southland

Report prepared by: John Engel,

Manager, Bonisch Environmental

Reviewed by: Kylie Galbraith,

Senior Resource Planner, Environment Southland

Date: 22 November 2013

mailto:[email protected]



http://www.bonischenvironmental.co.nz/







Contents

1.

Summary of information from interviews

1.1

Industry perspective

1.2

Cultural perspective

1.3 Regulatory perspective

1.4 Economic perspective

2. Satellite view summary

2.1 How the Southland coastal marine was broken into broad areas for reporting purposes

2.2 Marine farming possibilities in the sounds adjacent to Fiordland

2.3 Marine farming possibilities along the South Coast between Port Craig to Waiparau Head

inshore areas, generally described as the coastal marine area within 2 km of mean highwater springs

2.4 Marine farming possibilities in Stewart Island enclosed waters and embayments.

2.5 Marine farming possibilities in open coastal waters from Awarua Point to Waiparau, out

to 12 NM

3. Conclusions

3.1 Species

3.2

Locations

4.

Parties involved with scoping exercise

4.1

Parties interviewed

4.2

Parties not interviewed to date

4.3

Parties invited to be part of scoping exercise but no response received to date



3

1. Summary of Information from Interviews

These notes are to accompany the attached tables in Section 2 of this report. They

summarise the findings from the meetings and interviews with marine farmers,

regulators, Iwi and other stakeholders.

1.1 Industry Perspective

Only two areas of development for the immediate future were identified during the

interviews with marine farmers and Aquaculture New Zealand. These are:

1. making finfish farming, in particular, salmon more sustainable and being able

to better remedy or mitigate the adverse effects of that type of farming; and

2. establishing commercial production of Bluff Dredge Oysters.

Longer term, the industry as a whole would like to develop more space and increase

national production, but most of the operators currently farming in Big Glory Bay atStewart Island are unlikely to initiate that expansion. As a larger corporate, Sanford

Bluff have a wider, national perspective but locally are primarily focussing on salmon

and greenshell mussels, while trialling the Bluff Dredge Oyster. At least one operator

indicated that he would farm blue mussels, scallops and/or rock lobster if the market

was there at a suitable price, and the know-how was available to farm the species,

particularly the latter two.

Nationally, some work has been carried out on alternative species, but the current

focus has come back to the “big three”, i.e. mussels, salmon and pacific oysters.

Pacific oysters are not present in the Southland region, however, the Bluff DredgeOysters does occur naturally. There is a desire to keep the local variety of dredge

oysters pure and distinct from other species so all marine farmers want to ensure

Pacific oysters are not introduced to this region. Current focus therefore for the

Southland region are the “big three”, i.e. mussels, salmon and Bluff Dredge Oysters.

In regards to where to farm, in the short term (0 – 5 years), no operator appears to

be looking seriously at any area other than Big Glory Bay and Paterson Inlet at

Stewart Island, with Bluff Harbour as a support area for producing Bluff Dredge

Oyster spat. Other areas are, at best, a medium term (10 – 15 years) prospect.

While areas such as Lords River and Port Adventure at Stewart Island were identified

by some as potential areas for development, others who had fished in these areas

believed that there were few, if any, areas that would be sufficiently sheltered from

severe easterly or south easterly storms. While such storms were uncommon

(possibly 10-15 year return period), they had the capability to wipe out long line or

cage farming operations.

To a large extent, the industry is market driven, i.e. it will only turn to new species if

firstly, existing products are limited in terms of further development, and secondly,

there is a market for a new product at the right price. If necessary, the farmingtechniques for new species can be developed but it would depend on investment.



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1.2 Cultural Perspective

Apart from traditional food gathering areas, particularly those designated a mataitai

reserve, Iwi had few concerns about marine farming as an activity. The matter of

Kaitiakitanga is an issue in any use of natural resources, and it is noted that statutory

acknowledgements include the Fiordland and the Foveaux Strait/Rakiura coastal

areas.

There are two mataitai reserves in the Southland coastal marine area, one in

Paterson Inlet, Stewart Island, and the other along the southern part of Oreti Beach

for a distance of approximately 20 km and out to 1 km offshore.

Iwi also have an interest as a potential investor in marine farming and are able to

take up an option on 20% of any new area authorised for marine farming. Because

there has not been any increase in marine farming space since this provision was

enacted, the situation has not arisen but it is possible that Iwi will invest in marine

farming in the future.

1.3 Regulatory Perspective

In the Regional Coastal Plan for Southland 2013 (RCP), marine farming is currently

prohibited in the internal waters of both Fiordland and most of Stewart Island

(except Big Glory Bay and the Salmon Farming Refuge Zone), Awarua Bay east of the

Tiwai causeway, and marine reserves. In all other areas, marine farming is a

discretionary activity, with the exception of the Bluff Port Zone where it is a non-

complying activity.

Changing the status of marine farming in the prohibited areas may raise significant

resource management and conservation issues, regardless of what is being farmed.

The staff from the Department of Conservation indicated that they have particular

concerns about marine farming in the internal waters of Fiordland and Paterson

Inlet, and general concerns about marine farming adjacent to national parks.

Within the RCP, there are a number of particularly sensitive ecological features,

referred to as “china shops”, that have been identified as worthy of stronger

protection. There are also 10 marine reserves, the location of which are generally

separate to the china shops, although there is some overlap.

In regard to the undue adverse effects (UAE) test carried out by the Ministry of

Primary Industry (MPI), MPI staff were not aware of any significant issues in this

region. In any particular case, its consideration would be in relation to the effect of

marine farming on commercial, recreational and customary fishing. There are a

limited number of areas that may need to be avoided, e.g. the Bluff Dredge Oyster

beds, but these were reasonably well known and not believed to be areas of interest

to marine farmers.

The Fiordland Marine Guardians have had very little discussion on marine farming in

the Fiordland Marine Area (as defined in the Fiordland (Te Moana o Atawhenua)Marine Management Act 2005), the area over which the group provides advice and



5

makes recommendations to management agencies and Ministers who exercise

functions in the area, and has no formal policy on the subject. However, individuals

are believed to have an open mind on marine farming in Fiordland, but believe that

if it ever were to occur in this area, it would have a very high threshold to cross in

terms of potential adverse effects. Although some suggestion was made about areas

that may be suitable, the Guardians, at this time, neither support nor oppose marinefarming in Fiordland.

1.4 Economic Perspective

There have been a number of reports about the economic benefits of marine

farming. The potential for aquaculture to outperform agriculture on a per hectare

basis has been well documented but the industry in New Zealand is severely limited

by a lack of space, primarily due to regulatory constraints. Most of the suitable areas

are sheltered waters or embayments on New Zealand’s coastline, and those

locations are often in areas adjacent to national parks and reserves, or in marinereserves.

Salmon, mussels and pacific oysters are all exported but the high value product is

salmon – on a dollars per hectare basis, it is over 35 times higher than its closest

rival, kiwifruit, which is followed by mussels then Pacific oysters. Salmon is over 200

times better performing than dairy farming. Because farming Bluff Dredge Oysters is

just beginning, there is no comparable data for this type of marine farming.

Developers wish to differentiate Bluff Dredge Oysters from other oyster species but

it is too soon to know if that difference will result in a premium price.

Other countries of similar or smaller size produce far more salmon than New Zealand

due to greater areas being farmed, but overseas, it is Atlantic salmon that is farmed,

as opposed to the King (Chinook) salmon that is farmed here. Some economic

analysis of the salmon industry here has pointed to significant risks in the New

Zealand context (see Investment opportunities in the New Zealand Salmon industry

– Coriolis, May 2012). The risks include the size of the New Zealand industry,

competition with the larger Atlantic salmon industry, the introduction of a disease

into the New Zealand species, and regulatory and environmental constraints.

The economic benefits of marine farming for Southland, including farming of the

lower value products like mussels, are significant but seriously limited by suitable

areas. While this satellite view has identified some areas that may be suitable for

development, there seem to be few, if any, that are free of any limitations – the

closest would be offshore farming. The most significant constraint is the location of

the areas adjacent to conservation areas, followed by exposure to heavy seas and

wave action. Even using technology and different types of farming that get below

the effects of water movement at offshore locations, the ability to service the sites

can be restricted.



6

2. Satellite view summary

2.1 How the Southland coastal marine was broken into broad areas for reporting purposes

The region has been broken into four broad areas for the satellite view, to provide a

satellite view summary for each area. The broad areas used for this satellite view are

as follows:

Fiordland fiords

South Coast between Port Craig to Waiparau Head inshore areas, generally

described as the coastal marine area within 2 km of mean high water springs

Stewart Island enclosed waters and embayments

Open coastal waters from Awarua Point to Waiparau, out to 12 NM

The satellite view summary tables for each of the broad areas (which follow in

Sections 2.2 - 2.5) accompany the notes in Section 1 of this report. The tables

summarise the findings from the meetings and interviews with marine farmers,regulators, Iwi and other stakeholders.



7

Figure 1: Broad areas used for satellite view of marine farming possibilities



8

Figure 2: Fiordland areas used for satellite view of marine farming possibilities (shaded

deep blue colour)



9

Figure 3: South Coast between Port Craig to Waiparau Head inshore areas used for

satellite view of marine farming possibilities (shaded green colour)



10

Figure 4: Stewart Island areas used for satellite view of marine farming possibilities

(shaded red colour)



11

Figure 5: Open coastal water areas used for satellite view of marine farming possibilities

(shaded deep blue colour)



12

2.2 Marine farming possibilities in the sounds adjacent to Fiordland

Indication of potential

locations

Industry perspective Cultural perspective Regulatory perspective Economic perspective

It seems that many of the

fiords are suited to most

forms of marine farming but

the sensitivity of the

environment and logistical

issues have meant that the

area has not been seriously

considered by any person.The locations identified have

open vistas, which may

reduce the visual impact and

have some scope for

consideration.

Potential areas identified for

investigation:

Preservation Inlet

(excluding Long Sound as

is a marine reserve)

Chalky Inlet

Little interest expressed. While

there are undoubtedly areas that

would be physically suited to

various types of marine farming,

the distance and the sensitivity of

the environment mean that more

certainty would be required before

industry members would considerinvesting in this area.

Customary/heritage sites, most of

which are on land or the foreshore,

and traditional food gathering

areas, are the matters of most

concern to Iwi. Matters of

Kaitiakitanga are relevant to the

use and development of resources

in all areas.

Because of its remoteness, there

seem to be few culturally sensitive

areas on the Fiordland shoreline.

Currently, under the Regional

Coastal Plan, marine farming is a

prohibited activity within the

fiords. Only DOC expressed total

opposition to marine farming in

the coastal environment adjacent

to Fiordland. Others did not

express opposition but noted thatthere would be a very high

threshold to cross to be even

considered in this area, which

includes 10 marine reserves.

The main regulatory issues in this

area are resource management

and conservation rather than

fisheries, although there are

commercial fisherman that utilise

these areas for shelter, berthage

and storage.

Preservation/Chalky Inlet were

suggested as the only areas

worthy of consideration because

of their wide expanses of water,unlike other parts of Fiordland

that are narrow and confined.

The seascape is such that the

visual impact of marine farming

may be less significant in these

areas.

Other conservation issues are the

Operating and managing a farm in

this location would be more

expensive than other areas.

Viability would therefore be

marginal or negative. Only a very

low impact, high value product

would be considered. It would also

only be considered if other areaswere not available.

Long Sound was suggested by

Venture Southland staff from a

desk top review of a topographical

map. Its designation as a marine

reserve was overlooked.

The fiords are used for other

commercial activities, in

particularly tourism activities such

as scenic day trips, charters, and

visits by cruise ships.



13


locations


presence of :

“china shops”, i.e. areas of

significant habitat and marine

ecology that are particularly

sensitive to development; and

marine mammals, particularly

bottlenose dolphins that are

known to be resident in and

around Milford Sound,

Doubtful Sound and Dusky

Sound.



14

2.3 Marine farming possibilities along the South Coast between Port Craig to Waiparau Head inshore areas, generally described as the coastal

marine area within 2 km of mean high water springs


locations



investigation:

Te Wae Wae Bay in the

vicinity of Port Craig

Riverton, off shore from

Howells Point to

Taramea Bay

Bluff Harbour

Waikawa Harbour.

Apart from Bluff Harbour, only

some passing interest in these

areas. Any marine farming activity

would need to be the type that

would be able to cope with

exposure to heavy seas that would

inevitably occur from time to time.

Marine farmers are open to other

possibilities, such as enhancement

of some species in this area, e.g.

surf clams, gooey duck, paua,

crayfish.

Bluff Harbour is only marginally

suited to marine farming but it is

accessible, close to infrastructure,

and has value for harvesting and

growing spat for on-growing

elsewhere. Main limitation is

product quality due to water quality

(bacteria, sediment) and ability to

grow due to food supply but also

the strong currents in some parts.

As for the Fiordland area, the main

concern is around customary sites,

most of which are on land or the

foreshore, and traditional food

gathering areas are of most

concern to Iwi. The food gathering

areas are mostly on the foreshore

(e.g. toheroa on the southern half

of Oreti Beach) and in estuarine

areas (New River Estuary and

Jacobs River Estuary).

There is a mataitai reserve on Oreti

Beach that extends from The

Waimatuku River mouth to the

southern end of the beach, and 1

km out from the high tide level.

Matters of Kaitiakitanga are

relevant to the use and

development of resources in all

areas.



discretionary activity in most of

these areas except for Awarua

Bay (prohibited) and Bluff Port

Zone (non-complying).

Very little Conservation land is

located along the southern coast.

The most significant areas are

Awarua Bay and adjacent to

Waituna Lagoon, neither of which

are of significant interest for

marine farmers for known

species and farming

methodologies.

Marine mammals are common in

Foveaux Strait. Hectors Dolphins

are known to be resident in and

around Porpoise Bay.

There are two marine mammal

sanctuaries in this area, namely:

Te Wae Wae Bay (extending

from Sand Hill Point to Pahia

Point); and

Catlins (extending from Bushy

Point to Three Brothers Point,

and joined by an east-west

line starting 5 nautical miles

The area along the south coast is

generally accessible but limited by

sea conditions. There are few, if

any, areas that are suitable for the

types of marine farming that are

currently practiced but there may

be opportunities for different types

and methods.

However, areas that are sheltered

from most westerly conditions are

generally exposed to easterly

conditions, and the risk of damage,

or even total destruction of a farm

is high. The ability to work on site

regularly during the year would

also be limited.

Where expensive structures would

be required, and/or sophisticated

technology, only a high value

product would be viable. However,

simpler systems, for example,

cages resting on the sea bed, maybe viable for certain species.



15


locations


offshore from the latter).

The sanctuaries constrain

seismic/acoustic activities in

these areas.



16

2.4 Marine farming possibilities in Stewart Island enclosed waters and embayments


locations



investigation:

Port William

Big Glory Bay

Paterson Inlet

Port Adventure

Tikotatahi Bay

Lords River

Port Pegasus

The main interest is in optimising

production in Big Glory Bay and

extending into Paterson Inlet, of

which there were only certain areas

that might be suitable. Big Glory

Bay is suited to mussels and, from

recent experience, also suited to

Bluff Dredge Oysters. Growth rateswithin Big Glory Bay are variable –

some sites have product maturing

12-18 months later than the other

better performed sites.

The main issue in Big Glory Bay is

that farmed shellfish will not

release spat (reason unknown).

Bluff Dredge Oysters did release

spat when first introduced to the

Big Glory Bay but amount rapidly

declined in subsequent years. This

bay also has a finite feed supply,

evidenced by the decline in growth

rates as more marine farms became

established.

Salmon are farmed successfully but

the Big Glory Bay is not optimal in

regard to the ability to manage

adverse effects from deposition on

the seabed. While finfish and filter

feeders are believed to

complement each other, there is

little scientific information to

The main issue for Iwi is ensuring

the integrity of the mataitai reserve

in Paterson Inlet, which covers

most of it apart from Big Glory Bay.

It is believed that marine farming

can be carried out in a mataitai but

it does require the management

committee's approval, which willdepend on the potential impact on

customary fishing activity.

In the Regional Coastal Plan, there

is a salmon farm refuge area

identified in Paterson Inlet, in an

area that is part of the Mataitai

reserve. No concern was raised

about the refuge area.

Iwi do have a commercial interest

in marine farming, and where it can

be of benefit, it may actually

support the activity.

At present, the potential areas

identified, apart from Big Glory

Bay, the salmon refuge area in

Paterson Inlet, and Tikotatahi

Bay, have marine farming as a

prohibited activity in the Regional

Coastal Plan.

DOC staff spoken to were very

opposed to marine farming in

Paterson Inlet due to potential

impacts on water quality and the

seabed. The inlet has a number

of special features that should be

protected from the effects of

development. There is a marine

reserve located near the head of

the inlet around Ulva Island.

The DOC staff view was that any

areas that are adjacent to Rakiura

National Park are considered to

be sensitive and inappropriate for

development. It was

acknowledged that there may besome form of marine farming

that has a low impact that could

occur but generally the view was

that these high value,

undeveloped areas should be

protected.

Marine farming in Big Glory Bay

already has economic benefit from

production of salmon and mussels.

Bluff Dredge oysters are being

grown and sold in a relatively small

way but production is expected to

increase, possibly at the expense of

mussels. Big Glory Bay has limitedpotential for additional growth and

any expansion in the industry is

likely to happen in other areas.

There is economic benefit from the

existing marine farming activity in

Big Glory Bay. If marine farming of

the Bluff Dredge Oyster is

successful, there is an expectation

that it will be a higher value

product. It is believed there may

also be some scope for an

additional site or sites within Big

Glory Bay.

The capital cost of marine farming

outside of Big Gory Bay willincrease the further marine farms

are situation away from areas that

service the industry.

The other primary source of

income from these areas is

tourism. Cruise ships visit Paterson

Inlet and other parts of Stewart



17


locations


document the extent of the benefit.

There are believed to be better

sites for finfish farming in Paterson

Inlet.

Other areas are generally further

away and, in some cases, more

exposed. Port Pegasus has the best

protection but it is furthest away

from areas that service the

industry.

Island, and charter trips operate

out of Oban.



18

2.5 Marine farming possibilities in open coastal waters from Awarua Point to Waiparau, out to 12 NM


locations


No specific potential areas

identified for investigation

but believed to only be

appropriate where not

directly exposed to weather

and seas from the south

western quadrant, or to

excessive current.

Recognised as an opportunity

mainly for long line shellfish

farming and finfish farming but

uncertain in the southern

environment. Regarded as

expensive and probably only open

to larger corporate entities.

Uncertain for the southern coastal

waters due to higher average wave

heights, currents through Foveaux

Strait and around Stewart Island,

and exposure to storms coming out

of the southern ocean. Even if the

marine farm structures and fish

stock could be established, servicing

it would be limited by sea

conditions.

No cultural issues were identified

in regard to offshore marine

farming.



discretionary activity in offshore

areas out to 12 nautical miles.

The biggest challenge for this

type of marine farming is

technical rather than regulatory

but there are issues such asnavigation and marine mammal

migration.

Because of the issues associated

with finfish farming in sheltered

waters (water quality, benthic

effects, visual impact, and

occupation of space), offshore

marine farming is believed to be a

better option for the future.

Technology is being developed andfarms have been established in the

northern hemisphere.

The capital cost of this type of

marine farming is high.

With finfish marine farming, the

marine farmer is not restricted to a

particular geographical setting and

is likely to choose a site that has

the best characteristics, which may

not be in the Southland region.

However, there are advantages

such as less vessel movements,

water quality, and possibly better

growing conditions for some

species.



19

3. Conclusions

3.1 Species

The following table summarises those species that are either currently being farmed,

or for which there is some degree of interest by marine farmers. There are anumber of other species that could be developed but they have not been researched

locally to any degree. Some species such as gooey duck and surf clams were

mentioned but more in the context of enhancement and/or harvesting rather than

actual farming.

Seaweeds are also seen as a possibility but any development is more likely to be in

response to a demand for certain products, either the seaweed itself or by-products

obtained from the seaweed.

Species Comment

Currently farmed

King (Chinook) salmon High value product but has the greatest

environmental impact. Can be farmed in Big Glory

Bay at Stewart Island but serious limitations. More

space in alternate areas required.

Greenshell mussel Common product, relatively easily farmed and, for

smaller operators, provides income for supporting

development of other species, and diversification.

Bluff Dredge Oyster Relatively new product but potentially high value,

particularly if it can be differentiated from other

oyster products on the international market. Still

at an early stage of development.

Other Species

Rock lobster At least one farmer has investigated farming rock

lobster and would like to develop it further. Could

be a cage type operation, either on or over the

seabed. Feeding required, but there are

techniques for “on demand” feeding that reduce, if

not eliminate, feed losses.

Scallops An option but currently no suitably priced market

for farmed scallops. Would still need development

on suitable farming techniques.

Paua An option for either farming or enhancement

work. Have been trialled but there does not

appear to have been any recent attempts to farm

paua.



20

Species Comment

Porphyra Columbina (nori) This product has been grown in the past on LI512

in Bluff Harbour, and the current owners of the site

expressed an interest in growing it again in the

future.

Undaria This seaweed is believed to have a market but it

appears that there would be more interest in

harvesting it from areas where it has become

established rather than growing it on farms in this

region.

3.2 Locations

The information gained about possible locations for marine farming was for generalareas rather than specific locations. The highest priority for marine farmers was

access to Paterson Inlet at Stewart Island, primarily for the expansion of existing

farming activities rather than for new species, although access would create options

and opportunities.

Conversely, this location is one that Department of Conservation places a high

priority on protecting. The Department’s concerns about protecting areas with high

natural values and sensitive ecosystems appears to cover all of the most suitable

areas for farming activity, i.e. Fiordland and Paterson Inlet, Port Pegasus and Port

Adventure at Stewart Island. There are other areas but these seem to be lessattractive to existing marine farmers and can still have conservations issues, e.g.

marine mammals in offshore areas.

No additional areas that are suitable for marine farming were identified that do not

seem to have medium to high constraints due to resource management,

conservation and/or site issues.

4. Parties involved with scoping exercise

4.1 Parties interviewed

The following parties were interviewed as part of the scoping exercise to collate the

satellite view of what aquaculture may be possible where in the Southland region:

Southern Marine Farms – John Cockroft

Sanford Ltd – Tommy Foggo, Warren Crighton and Philip Nicolson

Gorton’s Fisheries Ltd – Ivan Gorton

Jeffrey Walker

EEC Ltd – Alister Eade

Maass Mussels Ltd – Jim Barrett



21

Schofield Sea Farms Ltd – Peter Schofield

Rodney Clark

Te Ao Marama Inc. – Michael Skerrett

Ministry for Primary Industries – Michael Nielson (Aquaculture Growth and

Innovation) and Christine Bowden (Spatial Allocation Team) Department of Conservation – Greg Funnell and Anna Cameron

Fiordland Marine Guardians – Chairman Malcolm Lawson

Venture Southland – Alistair Adam and Steve Canny

Aquaculture New Zealand – Rebecca Clarkson

NIWA – Ken Grange

Cawthron – David Taylor and Nigel Keeley

4.2 Parties not interviewed to date

The following parties have confirmed they wish to be involved with the scopingexercise to collate the satellite view of what aquaculture may be possible where in

the Southland region, however, to date interviews have not occurred due. If

interviews completed in the near future this report will be updated accordingly:

David Bragg

Ricky Topi

Foveaux Oysters Ltd – Gordon Wardrop

Te Runanga o Ngai Tahu – Nigel Scott

4.3

Parties invited to be part of scoping exercise but no response received to date

The following parties were contacted as part of the scoping exercise to collate the

satellite view of what aquaculture may be possible where in the Southland region,

however, no response has been received to date from these parties. If contact is

made by these parties and interviews completed in the near future this report will be

updated accordingly:

Greg Fife

Campbelltown Seafoods Ltd – Sonny Johnson

Department of Marine Science at University of Otago – Mike Barker

Aquaculture Zoning in the Southland Region - Phase 1 Satellite View - Report of What Aquaculture May Be Possible Where

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