NUMBER seven has come up lucky for Queensland fish farming company Seafood Online (ASX : SFO), with that percentage surviving from the November spawning of 2.5 million reef fish at its Good Fortune Bay fish farm in North Queensland.

Almost 175,000 20-day old reef fish are now progressing to the market, with Seafood Online Chairman, Mr Terry Byrne, elated with the first planned spawning since listing the company on the ASX in February 2000.

December larvae production is already expected to hit 20 million following a spawning of 3.5 million earlier this week (eds: week commencing Sunday 17th December 2000).

"A survival rate this high is a very strong start to production," Mr Byrne said. "With this batch now through its most delicate stages, and feeding vigorously, any further losses should only be measured in single digits per week.

"With the 7 per cent survival rate of the November production well in line with our Prospectus forecast, early indications are that the December spawning will be even more impressive.

"We are anticipating steady increases in spawning numbers and survival rates over the next few production runs as a result of continuous fine-tuning and the recent addition of 100 coral trout broodstock to our breeding tanks.

"The November production should grow to approximately 100 tonnes of market-sized fish and will represent our first live export of reef fish to Hong Kong in about five to six months time where they will sell in Hong Kong and mainland Chinese restaurants and supermarkets.

Growing demand for live reef fish in South East Asia has driven prices up to a point where wholesalers in Australia are currently paying $65 per kilogram (as at 20th December 2000) at the farm gate for live coral trout. This compares to Seafood Online's projections of $25 per kilogram, as outlined in the company's Prospectus in November 1999.

"Our original coral trout market price estimates were deliberately conservative, so with farm gate prices now more than double the Prospectus forecast, our current spawning achievements are particularly significant," Mr Byrne said.

"With the Good Fortune Bay facility functioning smoothly, one successful spawning on the road to maturity, and positive responses to adjustments made during the larvae stage of November's production, Seafood Online has now officially commenced continuous production."

First spawning survival rates

The Good Fortune Bay hatchery, arguably the most modern in the world, was completed two months ago and experienced an unexpected premature hatching in late October. Mr Byrne said it came as a trial run for staff who were fully-prepared for the November spawning, and are expecting the current spawning to reach 20 million larvae.

Earlier this week, three giant sea-water pumps, which provide the Good Fortune Bay facility with filtered sea-water at a rate of 2,000 litres per second, were given a successful test run in preparation for the completion of the 24 grow-out tanks which will house the fish once they are 60-70 days old.

"With the pumps now operational, the lining of the grow-out tanks early next year will signify the completion of the Good Fortune Bay fish farm, and the next step will be expansion of the facility to allow for increased production," Mr Byrne said.

Seafood Online's recently established Hong Kong subsidiary will allow for further development of the company's operations in the heart of its main export market in 2001 and beyond.

Seafood Online recently attracted significant interest from international industry professionals and distributors during the China Fisheries and Seafood Expo 2000 in Beijing. The company received over 2,000 inquiries as a result of attending the Expo, including several offers from Chinese companies interested in distributing Good Fortune Bay brand live reef fish.

For further information please contact
Terry Byrne at Seafood Online on 07 3221 5077, or
Dan Lape or Lachlan Schmidt at Lape & Partners on 07 3368 1650.