Yumbah Aquaculture plans to build a cellar door-style tourism centre on Kangaroo Island

Yumbah Aquaculture is expanding its Kangaroo Island abalone operations, with plans for a tourism centre being developed.

Yumbah Aquaculture managing director David Wood. Picture: Supplied

Yumbah Aquaculture is aiming to increase abalone production significantly and eventually build a tourism experience centre on Kangaroo Island as it seeks to double the size of its business.

Now that the company’s battle against a proposed port development near its KI operation is behind it, chief executive David Wood said Yumbah was now focused on the future.

The Wingfield-based company, backed by Pro Medicus co-founder Anthony Hall, has recently expanded substantially through the acquisition of oyster producer Cameron of Tasmania and mussels producer Bay Sea Farms.

The company reportedly raised about $25.5m about this time last year to fund the $20.5m Cameron deal and paid $2m in scrip for the Victorian mussel grower, also last year.

Yumbah was vehemently opposed to the development of a timber export port on KI by Kangaroo Island Plantation Timber - now known as Kiland - saying the development had serious biosecurity and water quality implications for its onshore abalone production site at Smith Bay.

Yumbah Aquaculture's Kangaroo Island abalone operations. Picture: Supplied

The KIPT plans were last year blocked by former state planning minister Vickie Chapman, and with that project now permanently shelved, Yumbah is keen to expand.

Mr Wood told News Corp Australia that the company was in the fortunate position of having space to grow at all of its sites across the nation.

“Now that we’ve got certainty around KI, the first cab off the rank is to expand on KI,’’ he said.

“We’re going through two exercises at the moment which are complementary.

“We’re close to finalising the masterplan ... that’s looking at what is the long term vision here, on the tourism side and in other areas.

“That will guide how we develop that property over time.’’

In the shorter term the company is aiming to increase production on KI by about 30 per cent, or 50 tonnes of abalone per year.

This involves the rejuvenation of areas of the farm which were in an unproductive state, and bringing them up to modern farming standards, Mr Wood said.

Once approved that would provide a “quick win’’ he said.

On the oyster front the plan is to grow by almost 50 per cent to approximately 600,000 dozen per year in Tasmania over the next couple of years.

“And at the mussel farm in Victoria we’re producing about 320 tonne this year,’’ Mr Wood said. “We’re targeting to get to around 500 tonne next year.’’

Yumbah is looking to expand abalone production significantly. Picture: Supplied

Yumbah would also continue to contemplate further acquisitions across all species in its portfolio, Mr Wood said,

“The opportunity is there because it's a fairly fragmented industry,’’ Mr Wood said.

“We’ll look at things other companies do well which we can leverage into our business and things we do well which can leverage into their position to accelerate growth.’’

Currently the KI operation does not include a tourism offering, but the longer term goal was to create an “aquatourism centre”.

“If you look at the wine industry and the advantage of cellar door from a marketing perspective, people get to try your product, develop a loyalty to it,’’ Mr Wood said.

“Kangaroo Island is a fantastic tourism destination so we think this is a way where we can create a centre that showcases our product, but also we can showcase other produce from the island as well and hopefully provide a good return for the support we’ve received from the local community over the years.

“And this gives us a model. If we get it right there we can replicate it at our other sites as well.’’

Mr Wood did not put a timeline on the masterplan, saying it was a complex proposal.

He said the company was keen to grow Australian consumers’ knowledge of abalone, with the new centre a plank in this strategy.

Mr Wood said the company’s plans had been in hiatus while the port issue played out, and could now be executed.

Yumbah turned over $42m last financial year.