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MELBOURNE, Nov. 2 (Xinhua) -- A group of Australian aquatic farmers say that successful exports to China prompted them to list their company on the Australian Securities Exchange (ASX).
Ocean Grown Abalone (OGA), which farms the molluscs off the coast of Western Australia (WA) for human consumption, said an initial shipment of frozen abalone meat to Hong Kong in September proved so successful the company decided to become publicly listed.
OGA prides itself on farming the molluscs sustainably by building their own reefs on seabeds in areas best suited for abalone to thrive, making the farmed delicacy akin to wild-caught abalone without the issue of quota limits.
Brad Adams, the CEO of OGA, said the first shipment to Hong Kong was so popular that a 3.8 million U.S. dollar seed-funding round being offered by the company in November could be oversubscribed.
"The amount of inquiries we've had is just extraordinary," Adams told News Limited on Wednesday.
"I think it will be oversubscribed quite quickly."
OGA will use the capital to double the production out of Augusta in WA as well as trialling new farms in South Australia's Port Lincoln and WA's Esperance.
Adams said the company was largely pinning its hopes on China where the product has been "well received."
"The demand (there) is insatiable," he said.
Frozen abalone meat shipped to China by OGA sells for 125 to 130 U.S. dollars per kilogram, a price comparable to wild-caught meat, with plans to ship the meat fresh to China in the near future.
Adams said the sustainability of OGA's methods separated it from traditional abalone farmers as it ensured a steady supply of the meat.
"We've got a really unique product. (It's) essentially a wild-caught product, but with the advantages of aquaculture," Adams said.
"It avoids the peaks and troughs of the wild-catch industry."
