Australian Tuna Fisheries
The Stehr Group (trading as Australian Tuna Fisheries) is a family-owned seafood business specialising in the sustainable farming of southern bluefin tuna for export.
Need
To manage the significant upfront annual costs of its operations while also managing a pivot in the payment terms for one of its major export markets, the business needed additional finance to support its cash flow.
Solution
We provided a loan to help Australian Tuna Fisheries close seasonal cash flow gaps and cover critical expenses, ensuring the quality of its operations wasn’t compromised.
With over 50 years of experience in the industry, Australian Tuna Fisheries has become a global leader in sustainably farmed southern bluefin tuna. As most of its product is exported, we were able to support the business with working capital to help manage cash flow during its long harvest cycle and navigate pricing and exchange rate risks.
Based in Port Lincoln, South Australia, the family-run business pioneered tuna propagation in the 1990s – a world-first recognised globally by scientists. For its farming operations, the business uses the selective ‘purse seine’ method to catch tuna before transferring them to offshore ranching pontoons, where they are farmed over six months.
During this period, the tuna are fed a carefully balanced diet including locally sourced sardines and other high-fat bait species. The fish are raised in low-stress conditions to ensure premium flesh quality and are harvested using the Japanese Ike Jime method to preserve taste and texture. All of this work takes place before any revenue is received, meaning the business carries significant upfront costs.
I don’t know how we would have continued without support from Export Finance Australia – it was pivotal to us continuing the business.
Kylie Petherick
CFO, Stehr Group
For many years, over 90% of Australian Tuna Fisheries’ product was sold into Japan, positioning the business in a mature but price-driven market. While long-standing relationships with buyers provided some stability, the business had limited control over pricing and was exposed to currency fluctuations. With increasing global demand, Australian Tuna Fisheries expanded into new export markets, broadening its customer base. This shift also introduced new cash flow challenges for the business, driven by the different buying habits of its new customers.
“We are beholden to what our Japanese buyers are going to pay and what the exchange rate is,” explained Kylie Petherick, CFO of Stehr Group. “You spend all your money catching, feeding and harvesting the fish, and you don't know what you're going to receive, as far as revenue, until the 11th hour.”
These dynamics make revenue forecasting difficult and cash flow management critical to the ongoing operation of the business.
Supporting seasonal cash flow requirements
Australian Tuna Fisheries’ incumbent bank encouraged the team to explore alternative finance options to support seasonal cash flow requirements, which is when we were introduced.
We worked closely with Australian Tuna Fisheries to understand the unique needs and challenges of the business. We provided an Export Contract Loan to help cover essential expenses, such as wages and feeding costs, during the critical pre-harvest period. This support eased the pressure of upfront costs and enabled Australian Tuna Fisheries to maintain operations and continue delivering high-quality tuna to its Japanese buyers.
“The funding from Export Finance Australia gives us the opportunity to cover our biggest business costs,” Kylie said. “Without bait, you can’t feed your fish. Without wages, you can’t have people looking after them. They’re key expenses, and we have to spend all that money before we even get any revenue.”
She added, “That partnership gives us that extra bit of confidence. I don’t know how we would have continued without support from Export Finance Australia – it was pivotal to us continuing the business.”
With our support, Australian Tuna Fisheries has maintained operations through a challenging environment and continues to supply high-quality southern bluefin tuna to its Japanese buyers.
