K&C FISHERIES COMPANY PROFILE

Keith & Cate Bell founded K&C Fisheries Pty Ltd in 1984, the processing factory is located at 76 Somerton Park Rd, Cobains, 3851, Victoria, Australia.

Keith has over 35 years experience in the fishing industry and has worked exclusively in the Carp Fishery industry for the past 20 years. This has led to him being recognized as an expert in his field and regularly sought to provide consultant services and present at conferences across the world.

Cate has been directly involved in the business since its inception, is an accredited Food Safety Auditor specializing in the Seafood industry.

K&C Fisheries is the largest Carp harvesting and processing company in the Southern Hemisphere, with processing targets in excess of 1000 tonnes of Carp per annum. Exporting 70% of its product to Europe and the Middle East and 30% of product sold to the domestic market. The Carp is processed as a quality raw material for other companies to value add to.

K&C Fisheries operate under a permit system in Victorian waters and under licence in New South Wales utilizing seine fishing, electro-fishing and specialist traps dependant on location and fishing conditions.

The processing factory has a freezer capacity in excess of 360t tonnes. K&C Fisheries hold Food Processing Accreditation with the Australian Quarantine and Inspection Service, licensed for Carp export processing, EU licensed for export and Kosher Accreditation.

The company currently employs 3 staff and has an infrastructure investment of $1,800,000.00, operating 8 vessels up to 10.5mtrs, 5 vehicles including a specialist tipping truck, a twin engine Cessna 337 utilised for fish spotting, survey, crew and equipment transport and specialist machinery (designed and manufactured by K&C Fisheries Research & Development Department).

In 2004 K&C Fisheries built an innovative state of the art Aquaculture Development Centre. The Centre has specialist breeding tanks and controlled atmospheres. The design and manufacture of the breeding tanks are a direct result of 30 years industry experience, strategic planning, research and development undertaken by Keith Bell of K&C Fisheries.

K&C Fisheries have obtained the following Awards Achievements:

• 1999 Gippsland Business Awards - Finalist Export Category
• 2003 Federation Health Gippsland Business Awards - Finalist & Winner Environment & Sustainable Business Practice Category
• 2003 Federation Health Gippsland Business Awards - Finalist & Winner Manufacture/Export Category
• 2004 Federation Health Gippsland Business Awards - Finalist & Winner Environment & Sustainable Business Practice Category
• 2004 Federation Health Gippsland Business Awards - Finalist Manufacture/Export Category
• 2004 Victoria State Government Science Awards, The Hugh McKay Innovators Award - Finalist
• 2005 10th Annual Rabobank Agribusiness Awards For Excellence - Finalist

Despite its reputation in Australia, internationally, Carp is the highest consumed fish, with consumption per annum in China of 1.23million tonnes, Poland 80,000 tonnes and Israel 40,000 tonnes.

Environmental Benefits:

Carp aggregations are normally produced by significant population being trapped behind impoundments or in lakes at times of declining water levels and if not removed can be deleterious to water quality and potential human health hazards.

K&C Fisheries are conscious of the environment in which they harvest its raw product from. There are significant environmental benefits achieved by the removal of this pest from our waterways, together with the benefit of the resource available to it's core business.

PRODUCTS, MARKETS & SERVICES

K&C Fisheries provide a range of high quality products tailored to meet the customer needs in both the domestic and export markets.

Domestic Market:

The domestic market includes the supply of Carp for human consumption to the Sydney and Melbourne Fresh Fish Markets, as bait to the Crayfish Industry in Victoria, King Island and South Australia.

The product is further value added by way of supply to the pet food industry and the fertilizer industry.

Export Market:

K&C Fisheries export products include Carp Trunks and Carp Roe.
Carp Trunks are exported to Poland, with a potential demand of 400 tonne per annum, the Middle East with a potential demand of 2000 tonne per annum and Europe with a potential demand of 700 tonnes per annum.

In 2003 K&C Fisheries developed a process to enable the production of a high value Carp Roe product for human consumption. Packaged in environmentally considerate reusable plastic pales, a target of 80 tonnes of Carp Roe product is to be exported to Europe per annum.

Consultancy Services:

Keith Bell of K&C Fisheries provides consultancy services to a number of private companies, government departments and/or agencies, clients include:

• Victorian Fisheries
• NSW Department of Land
• Gundagai Council (Queensland)
• Perth City Council (Western Australia)
• Macquarie Generation - Newcastle (New South Wales)
• Tandou Pty Ltd (Cotton Farm - New South Wales)
• Glenelg/Hopkins Catchment Management Authority (Victoria)
• CSIRO - Canberra (ACT)
• Australian Paper - Maryvale Mill (Victoria)
• TXU - Morwell (Victoria)
• South Australian Fisheries
• Lower Murray River Development Board

Consultancy services include:

• Mitigation Of Carp Infestations
• Fish Processing & Harvesting Techniques
• Export Processing Facilities
• Aquaculture Development
• Research & Development

Professional Presentations & Public Forums:

• Pest CRC - Daughterless Carp Project
• National Carp Task Force
• Catchment Management Authorities
• FishCare Gippsland Incorporated
• Educational Institutions

STRATEGIC PLANNING & ALLIANCES

Over the past 20 years much of K&C Fisheries efforts have been directed at perfecting fishing equipment and techniques to ensure cost effective harvesting and the establishment of sufficient market outlets to ensure company viability.

Unprocessed Carp is a low value commodity therefore efficient harvesting of large tonnages combined with cost effective transport and processing are paramount. Fish quality must also be maintained to a very high standard.

K&C Fisheries in its operations in the Gippsland Lakes has achieved these goals, however in recent times high salinity levels in the Gippsland Lakes due to prolonged drought conditions have severely impacted on the companies ability to target sufficient supply of fish to meet current and potential demand. It has therefore investigated fishing potential in other parts of Victoria and New South Wales as the opportunities have presented themselves.

Fishing operations conducted in other parts of Victoria and New South Wales has highlighted difficulties in maintaining fish quality and cost effective operations when operating remotely from the companies processing factory. Environmentally and commercially there is a need to be able to target large aggregations of Carp that occur on a regular basis throughout Southeastern Australia and efficiently remove them from the waters concerned, at the same time effectively utilizing and value adding the product.

Spawning is seasonal, with 12 weeks of the year being peak operational time for hatchery work at K&C Fisheries. To maximize the use of infrastructure and reduce the downtime of personnel, K&C Fisheries are developing techniques to spawn fish all year round in its Aquaculture Development Centre.

Strategic Development, Joint Ventures & Alliances:

K&C Fisheries have a demonstrated long term commitment to Australian innovation through it's alliances, joint ventures and infrastructure investment in its Aquaculture Development Centre. Joint ventures and alliances include:

• 1994 to 2004 worked in partnership with Uncle Ben's to introduce Carp to its pet food line for export markets. This included research into harvesting, large scale aquaculture of the product and machinery development to utilize the product in their factory.
• 2002 Research Study Tour to China with Uncle Ben's to investigate Carp Aquaculture & feasibility of establishing an Export Processing Facility.
• As a stakeholder in the Pest Animal CRC - Daughterless Carp Project, which has a proposed 50 year term.
• Undertaking consultancy work for PIRVIC Queenscliff (Primary Industry Research Victoria) to develop large scale Carp Aquaculture in waste water (project title - Agricultural Harmony).
• Consulting with the Coorong Fishermen of South Australia to establish an export operation in the lower reaches of the Murray River.

Strategically, K&C Fisheries is working with the Invasive Animal CRC -Daughterless Carp project as a participator,

With a reputation for looking at the 'Bigger Picture', K&C Fisheries is leading the industry with its innovative processes and technology

Keith Bell - Mobile: +61 428 517 157      Cate Bell - Mobile: +61 428 331 933
Export Licence No 3435     ABN 73 080 059 294