Sydney rock oysters will be more expensive and harder to get this Christmas as oyster farmers pass on price increases in a bid to recover from flooding and disease that have destroyed nearly a third of this year’s crop.
About 20 million, or 30 per cent, of Sydney rock oysters have been devastated by this year’s La Nina event and flooding from previous years, as well as the QX disease, which affects only Sydney rock and not Pacific oysters.
Sydney rock oyster farmer Brad Verdich, from ASX company East 33, is asking the public to understand why oysters are more expensive and harder to come by this summer.Credit:Shane Chalker
“We believe there’s going to be a shortage of oysters … they will be a rarer product,” said third-generation oyster farmer Brad Verdich, part of ASX-listed company East 33. “We’re going to have less oysters available this Christmas and this summertime than we had last year.”
Sydney rock oyster breeding takes three years and accounts for 1 per cent of global commercial production, while Pacific oysters take 12 months to grow and make up 95 per cent of production.
However, overall annual production of Sydney rock oysters has fallen from 200 million to about 50 million in the past four decades, putting oyster farmers under more pressure than ever before, said Verdich.
“Between 1985 and now, we’ve had downward pressure on prices at the farmgate. There’s been no ability for farmers to set a price; farmers have been price takers.”
Farmers from East 33, a company comprised of 10 multi-generation farming families, are lifting farmgate prices from 60 cents to $1 an oyster, and calling for others in the industry to do the same. Restaurants will typically buy the oyster from processors or distributors for $1-$1.20 and sell it at between $4 and $6, meaning the venue makes a 400-600 per cent margin.
The 40¢ farmgate price increase means venues will now be buying a Sydney rock oyster for about $1.40 to $1.60 each. Verdich is urging restaurants to pass on the increase in proportion and directly to the farmer, rather than multiplying the increase by four or more.
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