1 00:00:00,080 --> 00:00:05,440 S1: Now, Australian seafood operators are warning the situation is becoming unsustainable, 2 00:00:05,440 --> 00:00:07,600 S1: with the cost of diesel doubling in just the last 3 00:00:07,600 --> 00:00:09,639 S1: few weeks. And I know there's been some relief today. 4 00:00:09,840 --> 00:00:12,719 S1: And with Easter rapidly approaching, which is one of the 5 00:00:12,720 --> 00:00:15,800 S1: busiest times of the year, and there's a push for 6 00:00:15,840 --> 00:00:18,759 S1: Australians to buy local, and I emphasise the word local 7 00:00:18,760 --> 00:00:21,960 S1: and support the industry. Paul Schenk is the general manager 8 00:00:21,960 --> 00:00:25,480 S1: of Mooloolaba Fisheries and he joins me on this Wednesday night. Paul, 9 00:00:25,480 --> 00:00:26,560 S1: welcome to Money News. 10 00:00:27,440 --> 00:00:29,160 S2: Very good evening from Mooloolaba. 11 00:00:29,560 --> 00:00:33,000 S1: Paul, give us an idea of how much operating costs 12 00:00:33,000 --> 00:00:35,320 S1: have gone up in the last few weeks. 13 00:00:36,479 --> 00:00:40,360 S2: Oh look, I think in general, the operating costs, especially 14 00:00:40,360 --> 00:00:44,040 S2: for us for seafood, have gone up significantly week by 15 00:00:44,040 --> 00:00:46,440 S2: week by week. And we're just seeing no end to 16 00:00:46,440 --> 00:00:49,600 S2: it at the moment. Um, you know, it's it's just 17 00:00:49,600 --> 00:00:53,080 S2: making it's making seafood extremely difficult. 18 00:00:53,920 --> 00:00:56,200 S1: And talk to me about, for example, like the cost 19 00:00:56,200 --> 00:00:58,720 S1: of catching a kilo of prawns, you know, what did 20 00:00:58,720 --> 00:01:01,000 S1: that cost prior to the war and what is it 21 00:01:01,040 --> 00:01:01,800 S1: costing now? 22 00:01:02,920 --> 00:01:06,100 S2: So the cost price, you know, I've done a couple 23 00:01:06,140 --> 00:01:11,380 S2: of calculations, but it's around $4, um, before the, before 24 00:01:11,380 --> 00:01:15,220 S2: the crisis. And today we're sitting at just under a 25 00:01:15,220 --> 00:01:17,940 S2: $4 increase. So it's just under $8. 26 00:01:17,980 --> 00:01:18,380 S1: Wow. 27 00:01:18,540 --> 00:01:22,539 S2: Um, and what that calculates to so basically the cost 28 00:01:22,540 --> 00:01:25,780 S2: of the price, the cost price of prawns over the wharf. 29 00:01:25,819 --> 00:01:27,340 S2: I mean, a fisherman stood there the other day and 30 00:01:27,340 --> 00:01:30,100 S2: he unloaded his catch and he said, Paul, am I 31 00:01:30,100 --> 00:01:32,580 S2: going to get $4 more for every kilo of prawns 32 00:01:32,620 --> 00:01:36,340 S2: now from you? And I said, absolutely not. Unfortunately, that's 33 00:01:36,340 --> 00:01:37,980 S2: not the way that it works. I would love to 34 00:01:37,980 --> 00:01:40,459 S2: give them more money and I'd love to help them, 35 00:01:40,459 --> 00:01:43,020 S2: but I can't sell them on the other end, um, 36 00:01:43,260 --> 00:01:46,419 S2: for that price. And that's purely because, well, not purely, 37 00:01:46,420 --> 00:01:49,100 S2: but one of the reasons for this too, is the 38 00:01:49,580 --> 00:01:54,980 S2: large importation of seafood in Australia and farmed seafood in Australia. 39 00:01:54,980 --> 00:01:58,940 S2: That's our competition now for beautiful Mooloolaba prawns. We're directly 40 00:01:58,940 --> 00:02:04,780 S2: competing with foreign prawns and farmed prawns. That's already difficult. 41 00:02:04,820 --> 00:02:07,920 S2: Now that our price has Prices spiked. It's made it 42 00:02:07,920 --> 00:02:09,760 S2: near impossible to compete with them. 43 00:02:09,960 --> 00:02:12,880 S1: It's quite extraordinary, the change in this. Tell me, how 44 00:02:12,880 --> 00:02:16,040 S1: many kilos of seafood are you still catching in a week? 45 00:02:16,040 --> 00:02:17,560 S1: And have you had to cut back the number of 46 00:02:17,560 --> 00:02:20,440 S1: boats you're sending out purely because of this war? 47 00:02:21,280 --> 00:02:24,200 S2: We haven't yet, but we're about to. And, you know, 48 00:02:24,240 --> 00:02:27,560 S2: I spoke with different companies today. We're all looking at 49 00:02:27,560 --> 00:02:31,840 S2: the same right now. Um, yeah, been a heavy day 50 00:02:31,840 --> 00:02:34,680 S2: in the news, actually for seafood. Um, one of our 51 00:02:34,680 --> 00:02:41,160 S2: biggest seafood companies in Australia and sadly has folded overnight. Um, 52 00:02:41,200 --> 00:02:43,560 S2: they were in administration the last couple of weeks, but 53 00:02:43,560 --> 00:02:47,079 S2: they have now announced that they're folding. So that's hundreds 54 00:02:47,080 --> 00:02:51,560 S2: of jobs. 17 boats in the fleet for Queensland. It's 55 00:02:51,560 --> 00:02:53,480 S2: not because of the it's not because of the fuel. 56 00:02:53,480 --> 00:02:57,280 S2: It was already tough enough for fish and fishing and 57 00:02:57,280 --> 00:03:02,080 S2: wild caught seafood in Australia. It just feels like the greens, 58 00:03:02,120 --> 00:03:07,200 S2: the government, uh, the recreational fishermen are all against wild 59 00:03:07,200 --> 00:03:10,660 S2: caught seafood in Australia. And, um, you know, we're getting 60 00:03:10,700 --> 00:03:14,780 S2: to the point where everyone's going to be eating pasta. Um, 61 00:03:14,820 --> 00:03:17,740 S2: which is a, which is basically a bottom dwelling catfish 62 00:03:17,740 --> 00:03:22,220 S2: from the Mekong. And that's a very, very nice name, Basa, but, uh, 63 00:03:22,340 --> 00:03:25,780 S2: that's now the second most popular fish in Australia today 64 00:03:26,180 --> 00:03:26,899 S2: is Basa. 65 00:03:26,980 --> 00:03:29,620 S1: Yeah. And there's a few factors involved in that, including 66 00:03:29,620 --> 00:03:31,140 S1: the cost of living crisis. I want to go back 67 00:03:31,139 --> 00:03:34,940 S1: to the business that's gone into administration since the pandemic. Uh, 68 00:03:34,940 --> 00:03:37,940 S1: here at Money News, we've talked a lot about different fisheries. 69 00:03:37,940 --> 00:03:40,420 S1: And the main thing that was taking place back then 70 00:03:40,740 --> 00:03:43,780 S1: was dealing with the labor shortage. So you had not 71 00:03:43,780 --> 00:03:46,580 S1: enough younger people wanting to join the industry. But now 72 00:03:46,580 --> 00:03:49,340 S1: I assume that fuel is the biggest cost. But are 73 00:03:49,340 --> 00:03:52,460 S1: you seeing other pressures which may have resulted in another 74 00:03:52,460 --> 00:03:55,740 S1: business going into administration, like freight and cold storage? 75 00:03:56,580 --> 00:04:00,380 S2: Oh, well, everything was going up. Of course. I mean, power, 76 00:04:00,420 --> 00:04:02,780 S2: you know, we we pay the highest rates in the 77 00:04:02,780 --> 00:04:07,860 S2: world for power and we all use freezers, fridges, uh, machinery, 78 00:04:07,860 --> 00:04:12,860 S2: electronics for our business in seafood. Um, labor costs have 79 00:04:12,920 --> 00:04:16,320 S2: gone through the roof. I'll give you an example. Labor costs. 80 00:04:16,360 --> 00:04:19,600 S2: Three years ago, you could get a foreign deckhand on 81 00:04:19,600 --> 00:04:23,360 S2: your boat for $50,000. And today you've got to pay 82 00:04:23,360 --> 00:04:29,920 S2: them $78,000. That was Albanese governments pressure on US paying 83 00:04:29,960 --> 00:04:33,720 S2: migrant workers fair salaries. Look, when no one disagrees with 84 00:04:33,720 --> 00:04:35,240 S2: paying people fair salaries. 85 00:04:35,279 --> 00:04:35,760 S1: Yes. 86 00:04:36,000 --> 00:04:39,520 S2: But as a full time employee earning $50,000 a year, 87 00:04:40,080 --> 00:04:43,640 S2: you know, back 2 or 3 years ago, that wasn't bad. Um, 88 00:04:43,640 --> 00:04:46,800 S2: but to increase that, you know, so most of the 89 00:04:46,800 --> 00:04:51,680 S2: boats today have Filipino or Indonesian crew because young Australians 90 00:04:51,680 --> 00:04:56,279 S2: don't trust entering fishing because it's closing down day by 91 00:04:56,279 --> 00:04:57,040 S2: day by day. 92 00:04:58,360 --> 00:05:01,040 S1: Yeah, that's the issue. I was saying getting younger Australians 93 00:05:01,040 --> 00:05:03,440 S1: and the skill shortage we have with younger Australians is 94 00:05:03,440 --> 00:05:06,640 S1: only growing. But a 50% increase in what you're paying 95 00:05:06,640 --> 00:05:09,480 S1: for labor on your boat seems excessive. Now let's get 96 00:05:09,480 --> 00:05:12,680 S1: to some more positive things because Easter weekend is a 97 00:05:12,680 --> 00:05:16,350 S1: huge one for your industry. Now. Have you have everything 98 00:05:16,350 --> 00:05:18,910 S1: you've just said? I'm interested to know is have you 99 00:05:18,910 --> 00:05:21,390 S1: put your prices up for this weekend? 100 00:05:21,910 --> 00:05:26,670 S2: Absolutely not. Not at all. Not $0.01, not $0.01 in 101 00:05:26,670 --> 00:05:29,349 S2: any of our three seafood markets and not to any 102 00:05:29,350 --> 00:05:30,910 S2: of our customers as of yet. 103 00:05:31,630 --> 00:05:34,029 S1: So, Paul, if you're keeping them steady for this weekend 104 00:05:34,029 --> 00:05:36,950 S1: and we've just heard about the cold storage, the labor 105 00:05:36,950 --> 00:05:40,550 S1: cost increases, the freight, the oil, what does this mean? 106 00:05:40,550 --> 00:05:41,950 S1: And I'm proud of you for doing this. And I 107 00:05:41,950 --> 00:05:44,190 S1: think everyone at four BC who's listening to my news 108 00:05:44,190 --> 00:05:46,110 S1: right now is starting to Google you. So let's get 109 00:05:46,110 --> 00:05:48,830 S1: down there for BC listeners and support. Paul. But what 110 00:05:48,830 --> 00:05:51,630 S1: does this mean for prices from next week onwards? 111 00:05:52,950 --> 00:05:55,910 S2: It means we've got to look really line by line and, 112 00:05:55,910 --> 00:05:59,110 S2: and make smart business decisions. You know, we're here to 113 00:05:59,150 --> 00:06:02,230 S2: to run a business and we want to stay afloat. Um, 114 00:06:02,510 --> 00:06:06,150 S2: you know, we support 100 jobs locally for the community 115 00:06:06,150 --> 00:06:09,870 S2: and we care greatly about our employees and their livelihoods. 116 00:06:10,230 --> 00:06:12,669 S2: And we want to make sure that they've all got jobs. 117 00:06:12,710 --> 00:06:15,830 S2: A week later, a month later, a year later, and 118 00:06:15,830 --> 00:06:19,250 S2: we're doing absolutely everything we can. We are moving so fast. 119 00:06:19,529 --> 00:06:22,410 S2: And I tell you what, our government is moving so slow. 120 00:06:23,089 --> 00:06:26,130 S2: That's maybe a maybe another discussion for another time. We 121 00:06:26,130 --> 00:06:29,490 S2: need we need to move faster. We need to. Communicate 122 00:06:29,490 --> 00:06:33,010 S2: with our people and we need to get everybody to 123 00:06:33,050 --> 00:06:35,290 S2: buy in and to support and to help. And we 124 00:06:35,290 --> 00:06:37,650 S2: need it fast because I'm telling you the price of 125 00:06:37,650 --> 00:06:41,050 S2: fuel right now, and I'm more worried about farmers than 126 00:06:41,050 --> 00:06:43,890 S2: what I am fishers. I'll be very honest with you. Um, 127 00:06:44,490 --> 00:06:48,409 S2: it's going to affect our pricing on absolutely everything within 128 00:06:48,410 --> 00:06:49,250 S2: the next month. 129 00:06:50,089 --> 00:06:51,930 S1: Well, you touched on months. Well, I'm going to go 130 00:06:51,930 --> 00:06:54,010 S1: a little bit shorter for you, Paul, if this continues 131 00:06:54,010 --> 00:06:56,130 S1: for weeks and as you said, months, what does that 132 00:06:56,130 --> 00:06:59,849 S1: mean for the future of local seafood operators. And could 133 00:06:59,850 --> 00:07:02,610 S1: we be looking at a potential industry collapse? 134 00:07:04,089 --> 00:07:06,370 S2: I've been calling a collapse for the last two years, 135 00:07:06,370 --> 00:07:09,730 S2: and this is going to be the trigger that will 136 00:07:09,730 --> 00:07:14,010 S2: push it over the edge. You know, 75% of Australia's 137 00:07:14,050 --> 00:07:17,890 S2: seafood is imported, so we've only got 25% left. Australian 138 00:07:18,130 --> 00:07:21,990 S2: of that is farmed seafood, which is about half of 139 00:07:21,990 --> 00:07:25,070 S2: what we eat. So we're down to about 10% of 140 00:07:25,070 --> 00:07:29,470 S2: Australian wild caught seafood. Majority of it's prawns, but our 141 00:07:29,470 --> 00:07:35,150 S2: fishing industry fish is almost but gone wild caught Australian seafood. 142 00:07:35,150 --> 00:07:37,190 S2: You look at what's happened in Western Australia this year. 143 00:07:37,190 --> 00:07:41,910 S2: The ban. Fishing for two years from Kalbarri to Augusta. 144 00:07:42,430 --> 00:07:47,510 S2: Um you know our government is against wild caught seafood 145 00:07:47,510 --> 00:07:51,950 S2: and you having beautiful organic Australian seafood on your table. 146 00:07:53,430 --> 00:07:56,190 S1: Just finally, Paul, what's your message to people out there 147 00:07:56,230 --> 00:07:59,670 S1: ahead of the Easter weekend? How can they help support 148 00:07:59,670 --> 00:08:03,230 S1: right across Australia, their local seafood operators? 149 00:08:03,710 --> 00:08:05,990 S2: The best thing that they can do is get down 150 00:08:05,990 --> 00:08:11,430 S2: to your wild caught seafood operators, um, or anywhere and 151 00:08:11,430 --> 00:08:14,030 S2: ask where the seafood comes from. Is it from Australia? 152 00:08:14,030 --> 00:08:16,870 S2: Number one? Is it is it wild caught number two. 153 00:08:17,430 --> 00:08:21,270 S2: Then you're supporting our fishermen and fisher families, fishermen, Fisherwomen 154 00:08:21,270 --> 00:08:25,290 S2: fisher families. Um, you know, we're we're where, where the 155 00:08:25,290 --> 00:08:29,770 S2: real Diamond Cross juncture. We want Easter to be wonderful 156 00:08:29,770 --> 00:08:32,530 S2: for everybody. I hope you load up on, um, all 157 00:08:32,570 --> 00:08:36,290 S2: of your seafood and have your Easter, Easter Friday, your 158 00:08:36,290 --> 00:08:41,650 S2: Good Friday. Um, enjoy, enjoy Mooloolaba prawns if you can. 159 00:08:41,650 --> 00:08:43,929 S2: If you have the luxury to, to be near the 160 00:08:43,929 --> 00:08:48,570 S2: area or in south east Queensland. But um yeah, that's all, 161 00:08:48,770 --> 00:08:50,090 S2: that's all I've got to say. I just hope that 162 00:08:50,090 --> 00:08:53,530 S2: everybody keeps safe. Um I know it's very hard to 163 00:08:53,570 --> 00:08:55,809 S2: keep positive right now, but we've got to be realistic 164 00:08:55,809 --> 00:08:56,290 S2: as well. 165 00:08:57,290 --> 00:08:59,490 S1: Thanks Paul for your contribution this evening on Money News 166 00:08:59,490 --> 00:09:01,610 S1: Tonight and on behalf of our team, our listeners, particularly 167 00:09:01,610 --> 00:09:04,449 S1: our BBC listeners who are going to be coming Malabar's 168 00:09:04,490 --> 00:09:07,650 S1: way in coming days, we wish you a safe and 169 00:09:07,650 --> 00:09:08,410 S1: happy Easter. 170 00:09:09,050 --> 00:09:11,090 S2: Thank you very much, and have a wonderful evening. 171 00:09:11,770 --> 00:09:16,170 S1: That's Paul Schenk, the general manager of Mooloolaba Fisheries. And, 172 00:09:16,290 --> 00:09:18,689 S1: you know, you've heard some pretty grim forecasts from Paul. 173 00:09:18,690 --> 00:09:21,450 S1: So please, if you can get out there and help 174 00:09:21,450 --> 00:09:25,490 S1: out your local wild caught seafood fishery, that's the message 175 00:09:25,490 --> 00:09:28,290 S1: he put very much clear in our minds, then please 176 00:09:28,290 --> 00:09:28,730 S1: do so.