As oyster growers continue to battle natural disasters and unknown diseases, one region on the NSW Far South Coast has become the engine for the industry.
Hugh Wheeler, who began farming oysters 45 years ago, said production at Merimbula Lake had doubled over the past decade.
The region has now overtaken traditional oyster growing areas on the NSW Mid North Coast and Hunter region.
Mr Wheeler said the shallow coastal estuary saw a record $14 million worth of oysters sold last year, representing a quarter of the state’s Sydney rock oysters.
Merimbula Lake oyster farmer Hugh Wheeler with his son James. (Supplied: David Rogers Photography)
He said the combination of geography and modern farming methods had played a major role in the region’s success, while waterways further north continued to struggle with repeated natural disasters.
“Merimbula has fewer problems than most of the other estuaries up and down the South Coast,” he said.
“We were one of the early adopters of the method of growing oysters in floating bags, which can be an inappropriate method in areas that flood because they disappear out to sea.
“Almost all the other estuaries up the coast have that flooding issue.”
The region has also focused on high-value grades oysters, which can fetch a premium price from restaurants and markets.
In 2024–25, Merimbula alone produced 323,241 dozen large oysters, more than triple the second-placed NSW estuary.
Plan for production to reach $300m
Meanwhile the NSW government is setting lofty goals for the oyster industry.
Ian Lyall, the director of aquaculture at the NSW Department of Primary Industries and Regional Development, said the government was working alongside the industry to nearly triple its value to $300 million by 2030.
Ian Lyall says the government is working to boost the oyster industry. (ABC South East NSW: Alasdair McDonald)
He said the government had a long-term strategy focused on investment and technology, backed by a recent $20 million grant program to invest in automation, adopt technology and, in some cases, pursue electrification.
“That’s really going to boost the private sector and help reach some of these goals, including enhancing production, adopting technology to use by-products, and looking at climate change solutions,” he said.
He said historic production in key areas like Wallis Lake and Port Stephens had been hampered by flooding and disease pressure.
Wallis Lake, once a powerhouse, produced 1.5 million dozen in 2018–19, but produced just 557,000 dozen in 2024–25.
In Port Stephens production has dropped by 55 per cent since 2021.
Ewan McCash says major challenges include access to finance and attracting skilled workers. (Supplied: University of Wollongong)
Keys to growth: technology and capital
Natural disasters and disease aren’t the only obstacles in the way of oyster farmers.
Ewan McCash is a Batemans Bay oyster farmer and CEO and founder of Oceanfarmr, an aquaculture software company.
He has been living in North America for the past two years, where he says US oyster growers are looking to Australian farmers for innovation, technology and adoption of research.
Mr McCash is confident it can be done if the three challenges of finance, securing enough disease-free oyster seed and attracting skilled workers can be overcome.
Banks don’t recognise oyster leases as assets, and farmers can’t borrow against their leases to grow their business.
“Farmers who need to borrow money generally have to borrow against their own house, which is not great,” he said.
“The science is in place, the market is there, and people want our product, making the target absolutely achievable.”
Disease research continues
Francisca Samsing’s research is playing a crucial role in protecting future oyster stocks. (Supplied: Francisca Samsing)
Mass oyster mortality events continue to plague the industry, with some unexplained outbreaks killing up to 90 per cent of stock.
Matt Landos, an adjunct professor at the University of Queensland, said there had been a shift in the scientific community away from searching for a pathogen that was causing the unknown mortality to a holistic understanding of water quality and catchment management.
“There’s a striking correlation that the more imperilled estuaries tend to be those heavily colonised and those with lots of intensive agriculture; they seem to be struggling the most,”
Dr Landos said.
Francisca Samsing from the University of Sydney School of Veterinary Science said researchers had achieved a breakthrough by developing an experimental vaccine against the virus responsible for Pacific oyster mortality syndrome, with lab trials showing around 90 per cent survival in vaccinated oysters.
While still in early development, Dr Samsing said the vaccine could become a major new tool for the industry if it could be adapted for large-scale use.
